On the evening of 12 june, huanco enterprises inc. (000002. Sz) issued a communiquÉ stating that the company had completed the sale of all a stock on 10 to 12 june by way of a centralized competitive transaction, totalling 72,956,000 shares, or 0. 61 per cent of the total equity, for a total of approximately $479 million, at an average cost of $6. 57/equity. As a result of the transaction, the number of shares in vanko stock was zero and the total number of shares issued increased to 9,724 million。
For its part, vanco stated in the bulletin that the current sale of the a stock unit would facilitate the replenishment of corporate liquidity. In accordance with the relevant provisions of the enterprise accounting standards, the difference between the price of the shares in this sale and the price of the shares in the buy-back will be accounted for or offset by the accumulation of the company's capital, without prejudice to current profits of the company and without having a significant impact on its operations, finances and future development。
According to the bulletin, the vanco window was originally scheduled to run from 27 may to 2 july 2025, but it was completed on only three trading days. According to analysts, this is both an attempt to avoid the risk of further decline in stock prices and an urgent need to replenish liquidity as companies face over $10 billion in open debt over the year. According to accounting standards, the spread of the sale price will reduce capital accumulation and, while not affecting current profits, may weaken future equity financing capacity。
The inventory unit, which vanco sold at this time, originated from a buy-back plan initiated in march 2022. At that time, huanco was “maintenance of the company's values and shareholders' rights” and repurchased 72,956,000 shares at self-financing value of $1. 292 billion, at an average value of approximately $17. 64/equity, up to a value of $18. 27/equity. Three years later, however, the sale was sold at less than 40 per cent of the price, leaving a deficit of about $833 million。
The reaction of the capital market to the vanco sale was relatively calm. From 10 to 12 june, vanco a stock prices fell by 0. 91 per cent, with a turnover of $700 million, without sharp fluctuations。
In fact, since this year, huanco has returned $4. 09 billion in funds through substantial asset disposal, including the hangzhou project transfer. Meanwhile, the shenzhen metro group, the largest shareholder in huanco, continues to provide financial support. Since 2025, deep iron has loaned five times to vanco, totalling 14,852 million yuan, with interest rates as low as 2. 34 per cent and a pledge rate of up to 70 per cent, mainly for repayment of interest on open market bonds。
According to the latest financial data, during the first quarter of 2025, there was a net profit deficit of $6,415 million in 10,000 units, an asset-liability ratio of 73 per cent, a current ratio of 1. 3 per cent, a fast rate of 0. 57, and a debt-servicing capacity that was close to the threshold. Fitch ratings point out that while the manko replenishment of the core urban land reserves leaves room for medium- and long-term development, weak sales and high inventories remain the main risks in the short term。
