Apollo News reported that Grandland, the leading group in the decoration industry in China, is in a serious crisis.
The group has lost all of its profits since listing shares, and hundreds of its bank accounts have been frozen because of past due debts.
One of the biggest reasons Grandland fell into crisis was because its biggest customer, Evergrande Corporation, couldn’t pay its debts on time.
As of June 30, 2022, Grandland’s total frozen funds are 337 million yuan (more than 50 million dollars). This sum amounts to 64.31% of Grandland’s net worth as of the end of 2021.
As of June 30, 2022, Grandland Group had a total of 126 frozen bank accounts, accounting for 30.73% of its total 410 accounts.
Grandland was ranked second in the top 100 large corporations in China’s construction decoration industry for 5 consecutive years. But since 2017 they started to decline, with the group’s net profit value decreasing year by year.
In 2019, the company achieved a net profit of 144 million yuan, down more than 77% from the 647 million yuan in 2017.
As of the close of trading on July 8, Grandland’s share price was at 2.22 yuan, down nearly 90% from the “golden age” of this group.
In addition to the cause of Evergrande Corporation’s inability to pay its debts, the Chinese government’s extreme anti-Covid-19 policy and the country’s declining economic situation recently have caused Grandland to fall rapidly.