Unsafe Christmas Eve，Christmas is not peaceful。On this day when you should receive gifts，188bet Live Casino (000620.SZ) received an inquiry letter。

Evening of December 25th，Xinhualian announced that it received an inquiry letter from the Shenzhen Stock Exchange。Four questions in a row，Focus on 188bet Live Casino capital and debt issues、Explanation of equity pledge matters and related risks。

The origin of the inquiry letter is a debt default。On December 24th，That is the second day after Su Bo was investigated，Zhongnan Media disclosed an announcement regarding a lawsuit involving a subsidiary。The cause is Xinhualian Finance Company，Borrowed an inter-bank loan from Hunan Publishing Finance Company，Originally scheduled to repay the first payment before December 201.500 million 188bet Live Casino，But only 20 million has been repaid so far。

Because there is another sum 1.500 million 188bet Live Casino needs to be repaid before April 30, 2020，So the current total amount to be repaid is 2.800 million。Qichacha Display，New Hualian Finance Company is a wholly-owned subsidiary of New Hualian Holdings，Hunan Publishing Finance Company is a subsidiary of Zhongnan Media。

In the past 48 hours，188bet Live Casino encountered a series of "black swans"。First, Chairman Su Bo was investigated，Following this, there was another debt “explosion”。188bet Live Casino is responsible for handling this series of bad things，Very busy，No time to repay，Still really don’t have the money to pay back？

Insufficient new borrowings to repay old debts, high debt repayment pressure

Mentioned in the inquiry letter，As of the end of the third quarter of 2019，Xinhualian’s current liabilities are 283.9.5 billion 188bet Live Casino，Short-term borrowing 15.4.4 billion，Non-current liabilities due within one year 58.5.6 billion，And the monetary capital at the end of the period is 52.89 188bet Live Casino，The debt repayment pressure is evident。

Is 188bet Live Casino “money tight”?？The answer may be found in financial data。

The cash flow statement also exposed Xinhualian’s financial dilemma。Since 2017，Xinhualian’s financing cash flow continues to be negative，Indicates that the company needs to repay a large amount of debt and make profit distribution。Financing cash flow in 2017 was negative 9.400 million 188bet Live Casino，Increased to -46 in 2018.1.6 billion 188bet Live Casino，As of the end of the third quarter，is negative 7.5.6 billion 188bet Live Casino。Cash obtained from borrowing in the current period is 116.1.7 billion 188bet Live Casino，After deducting dividends，The company’s amount to repay debt and interest is 117.7.9 billion 188bet Live Casino，Almost all the newly borrowed money was used to repay debts。

End of 2018，The cash received by Xinhualian from the loan is 86.8.4 billion 188bet Live Casino，Cash required to repay debt and "distribution of dividends、Cash paid for profit or interest repayment” is 128.8.7 billion 188bet Live Casino，3 minus dividends.7.9 billion 188bet Live Casino，Still need to repay 125.0.8 billion 188bet Live Casino，The newly borrowed money is obviously not enough to repay the old debt。In the current period，Xinhualian also increased its cash borrowings to barely pay off its debts，Financial pressure is still huge。

The controlling shareholder’s pledge ratio is as high as 97.70%

Meanwhile，The issue of high equity pledge mentioned in the inquiry letter，Perhaps it also confirms the fact that 188bet Live Casino is “tight on money”。

According to the pledge announcement disclosed by 188bet Live Casino on September 28，The company’s controlling shareholder 188bet Live Casino Holdings’ shareholding pledge ratio is as high as 97.70%。According to Qiqicha，New Hualian Holdings is the controlling shareholder of New Hualian，Holding 61.17%。The last two equity pledges were on September 26 this year，Accounting for 17% of its shareholding respectively.24%、1.29%，The reason for the pledge is for financing guarantee。

The guarantee issue is another key point of concern to the Shenzhen Stock Exchange.

It happens to be on the evening of December 23rd，Xinhualian disclosed the latest guaranteed financing matter of its subsidiary。Announcement display，Xinhualian is a wholly-owned subsidiary of Hunan Huajian to China Railway Trust 3.8.5 billion 188bet Live Casino 2-year loan，Provide joint liability guarantee。To this point，The total balance of external guarantees provided by Xinhualian and its holding subsidiaries is 205.0.8 billion 188bet Live Casino，Accounting for 263 of his net worth.68%。

December 188bet Live Casino year，Su Bo once said，“Five or six years ago people said real estate was not going well，But the real ‘winter’ is 188bet Live Casino year。”

One word becomes a prophecy。High debt repayment pressure、Many equity pledges、High guarantee ratio，Jingsu Bo’s investigation，Resurfaced one after another，188bet Live Casino is indeed ushering in "winter"。

Behind the cold wave，It’s the performance decline of 188bet Live Casino，Decreased profitability。

According to Xinhualian’s latest third quarter financial report，A total operating income of 56 was achieved at the end of the period.2.5 billion 188bet Live Casino，Decreased by 8 year-on-year.8%。Operating profit 2.7.4 billion 188bet Live Casino，48 year-on-year decrease.8%。Realized net profit attributable to parent company 1.6.3 billion 188bet Live Casino，Decreased by 46 year-on-year.64%。During the reporting period，Gross profit margin is 29.1%，Decreased by 3 year-on-year.2%，Net interest rate is 2.8%，Year-on-year decrease of 2.6%。

While profits are declining，Xinhualian’s various expenses are rising。Three quarterly reports show，The cost during the same period last year was 13.600 million 188bet Live Casino，Rising to 15 at the end of this period.2.5 billion 188bet Live Casino，Mainly reflected in the sharp increase in interest expenses，by 3.6.3 billion 188bet Live Casino increased to 6.6.4 billion 188bet Live Casino。On operating costs，Although by 41.7.2 billion 188bet Live Casino slightly dropped to 39.8.6 billion 188bet Live Casino，But the decline is not as severe as the decline in 188bet Live Casino’s income，leading to a downward trend in its overall profits。

Data source: 188bet Live Casino Cultural Tourism third quarter financial report

Gross profit margin、Excluding net interest rate，ROE is also an important indicator often used to reflect a company's profitability，The higher the value, the higher the return from investment。Judging from the data of 188bet Live Casino third quarterly report，ROE is only 2.08%，Decreased by 55 year-on-year.36%，188bet Live Casino is also the first decline since 2015。

The transformation of cultural 188bet Live Casino is bumpy

Since 2016, New Hualien Real Estate has changed its name to New Hualian Cultural 188bet Live Casino，Since promoting the company’s strategic transformation and upgrading，Real estate business remains the main source of income，In 2018, commercial housing accounted for more than 80% of the income，First half of 2019，Commercial housing sales revenue accounted for more than 60%。

Cultural 188bet Live Casino projects have high investment、Features of long return period，Cannot bring considerable profits in a short period of time，Building blood through the original real estate business is undoubtedly a relatively quick way to relieve financial pressure。

Xinhualian’s land reserve is not sufficient either。First half of 2019，The land bank has not been increased either，The explanation given for this is the influence of the national macro-control policy on the environment，Get land with caution。Resumption of work area 298 during the period.50,000 square meters，Complete delivery 80.40,000 square meters，Achieve contracted sales area 22.820,000 square meters，Sales amount 29.5 billion 188bet Live Casino。

Judging from the data of previous years，The contract size is basically maintained at around 10 billion 188bet Live Casino，As Xinhualian weakens its real estate business，The scale may continue to shrink in the future，It will also have an impact on the company’s overall performance。

Xinhualian’s income mainly consists of real estate、Three major items of construction and decoration industry and other businesses，Income from cultural tourism projects was not disclosed separately in the financial report。First half of this year，Xinhualian’s other business income is 12.9.5 billion 188bet Live Casino，We don’t know how much of the share comes from cultural tourism projects。

2019 was established as the "Cultural Tourism Operation Year" by 188bet Live Casino。Su Bo once mentioned，188bet Live Casino may get through the difficult period of real estate by participating in mixed-ownership reform and introducing strategic investment。However，All these plans may be temporarily put on hold as he is investigated。

*188bet Live CasinoTextComeSource: WeChat public account "Real Estate K Line" (ID: dichankx)，Author: Zhan Haobo Wei Wei，Original title: "The truth about 188bet Live Casino capital chain》.