Why does kaisa solve the problem of "immortal bird"?

Zebra consumption Yang Garnet

How can not imagine that a hundred billion housing enterprises can not come up with 300 million yuan to pay for wealth management products in a timely manner, which unexpectedly lifted the lid on Kaisa Group's liquidity difficulties.

As early as 2014, Kaisa Group had the same crisis, and thus suspended trading for 3 years, and only returned to the capital market in 2017, so it was called "immortal bird".

Now that the crisis has reappeared, how can this "immortal bird" solve its problem?

Financial storm

After a series of thunderstorms in Xinli, Fantasia and Sunshine City, Kaisa Group unexpectedly joined the array.

Last week, the overdue redemption of wealth management products guaranteed by Kaisa Group and issued by Jinheng Wealth completely tore off the veil of lack of money of Kaisa Group.

According to the comprehensive public information, jinheng wealth management products are currently more than 300 million yuan due and unpaid, and the total amount of wealth management products, including interest, totals 12.788 billion yuan.

As the financial overdue incident worsened, Guo Yingcheng, who has lived in Hong Kong for a long time, did not appear, but only connected with the on-site investors by telephone, saying, "Give Kaisa time, have the ability and method to repay." ”

As a 100 billion housing enterprise, now a mere 300 million yuan of wealth management products can make the enterprise completely lie flat, and the cash flow of the housing enterprise has reached the extreme?

According to Mai Fan, vice chairman and president of Kaisa Group, as of late October, the company had 24.1 billion yuan in cash on its books, all of which were restricted funds, and more than 12 billion yuan of funds in transit, which was the balance of house sales. After the funds arrive in the account, they need to flow into the bank supervision account to ensure that the bank can repay the principal and interest and guarantee the delivery of the property. At present, the company has withdrawn all the funds available and has fallen into cash flow difficulties.

Zebra consumption combing found that the weak sales of real estate may be the beginning of this financial redemption crisis, and the situation of gold, nine and silver ten, which used to be hot in sales, is no longer there. From September to October, the company achieved contracted sales of 5.7 billion yuan and 8.195 billion yuan respectively, down 64.6% and 30.49% year-on-year, respectively.

In October, China Real Estate sold a total principal of US$255 million of Kaisa's US dollar bonds, coupled with the simultaneous downgrading of Kaisa's rating by a number of rating agencies, which caused panic in the market.

At present, Kaisa has put 18 projects in Shenzhen with a total value of 81.8 billion yuan on the shelves in order to tide over the difficulties.

Rotten tail building professional household

The reform and opening up in the 1990s gave birth to the development of The real estate industry in Shenzhen, and the three brothers Of Guo Yingcheng, who have been engaged in trade and industrial business for many years, turned to the real estate industry.

At that time, their Chaoshan compatriots had taken root in Shenzhen, from the early contractors, masons and even pig killers, through difficult primitive accumulation, they became local real estate developers of all sizes in Shenzhen.

In 1999, when Guo Yingcheng set up Kaisa Group (01638.hk) in Shenzhen, Lai Haimin, who was also from Chaoshan Province, had already built a well-known real estate Hongya Garden outside Shenzhen Guanwai, Huang Maoru of Maoye City and Huang Chulong of Galaxy Real Estate had already emerged in Shenzhen.

According to public reports, the first project of the Guo brothers to test the waters of the mainland real estate industry was a rotten project outside the Guanwai in Shenzhen.

This project was originally the land of Longquan Villa, and at that time, the project was located in remote Phuket and was not optimistic about its peers in the industry. The Guo brothers turned it into a theme park, and the project was named Guifang garden. Subsequently, 7 phases were added and developed into a well-known large community outside of Guanwai. The Guo brothers became famous in this world war, and the business was immediately moved from Guanwai to Kannai.

In 2003, Kaisa acquired the well-known ten-year-old rotten building "Ziyuetai" in the central urban area of Shenzhen for 400 million yuan, transforming it into Shenzhen Kaisa Center, becoming the company's first residential and commercial comprehensive real estate project.

The successful operation of the "Guifangyuan" and "Ziyuetai" projects has supported Guo Yingcheng's ambitions.

In 2005, Kaisa acquired the Guangzhou Zhongcheng Plaza project, which is known as China's first rotten building, and Zhongcheng Plaza was successfully sold three years later.

In the project of the rotten tail building, Kaisa has repeatedly "rejuvenated the magic hand", and Kaisa has gained the name of "professional household of the rotten tail building" in the industry.

The King of Old Reform

After 2004, Kaisa Group went out of Shenzhen to carry out large-scale mergers and acquisitions. From 2005 to 2009, the company successively acquired the control of 13 project companies such as Guangzhou Jinmao and Huizhou Kaisa Center, which not only supported large-scale in a short period of time, but also obtained a lot of low-cost land through the project, laying the foundation for the company to land on the Stock Exchange.

After years of real estate development, the supply of new land in Shenzhen has decreased year by year. In 2009, the shenzhen urban village and old community reconstruction incentive policy was introduced, opening a convenient channel for Kaisa Group to overtake in curves.

After that, the company acquired a number of super-large old renovation projects in Shenzhen Longgang, Yantian and Dapeng New Area, and Shenzhen became Guo Yingcheng's blessed land.

Guo Yingcheng passed from Hong Kong to Shenzhen every day, all year round, coupled with a strong management style, the company's development has grown by leaps and bounds. When the company was listed in Hong Kong in 2009, Kaisa Group was already the largest real estate enterprise in Shenzhen.

After going public, the company quickly integrated into the 10 billion club. Sales reached 10.1 billion yuan in 2010 and 23.9 billion yuan in 2013. If there had been no "lock-up" incident in 2014, the sales scale of 30 billion yuan that year would have been almost inconsistency.

Some people will ask, why is Guo Yingcheng so enthusiastic about the old reform? In addition to the old transformation project land does not need to be auctioned and hung, in accordance with the company's independent application, you can also enjoy the rich dividends brought by the medium and long term.

Guo Yingcheng's compatriot Zhu Mengyi once explained the mystery of the old reform business: it can earn money for the house and dividends after the land appreciates.

In the old reform business, Kaisa has almost done it to the extreme, and the company took the lead in establishing the first urban renewal company in China, from planning and design, commercial negotiations to actual operations, and is recognized as the strongest professional expert in the industry.

At the same time, the old business has become an important source of land for the company to obtain low-cost land. In the first half of 2021, the company transformed three urban renewal projects, transforming a saleable area of 1.125 million square meters, accounting for 41.3% of the company's new land, corresponding to a saleable value of 72.7 billion yuan.

As of June this year, the company had more than 213 urban renewal projects that were not included in the land bank, covering an area of 53.7 million square meters, and the vast majority of which were located in the Greater Bay Area.

"Lookout North Building" passers-by

Huge numbers of old renovation projects continue to send low-cost land to Kaisa Group, making all housing enterprises salivate. However, the fruit of the old business is delicious and not easy to pick.

At the end of 2014, Kaisa Group broke out into a lock-up storm, and Guo Yingcheng immediately resigned as an executive director and chairman of the board of directors of the company, avoiding Hong Kong. Suddenly, Kaisa Group entered another era.

Instead of returning to his mansion in Bel Sha Wan, Kwok lives at the Four Seasons Hotel in Central, Hong Kong, for two years.

In March 2015, the company was suspended from trading on the Stock Exchange, and the company was in a financial crisis, and even the $50 million loan from HSBC could not be repaid in time.

Looking back, the Zhongcheng Square project, which had an extremely complex trading background in the early years, may have been the initial beginning.

After the completion of the Zhongcheng Plaza project for many years, a number of senior officials fell, and Guangzhou Pengcheng, the earliest holder of Zhongcheng Plaza, reported Guo Yingcheng's bribery to the relevant departments and once again cooked oil.

The two years of suspension should be the most difficult period for Guo Yingcheng, if it were not for the help of Chaoshan compatriots, I am afraid that Guo Yingcheng's Kaisa industry would have long been wiped out.

In the second quarter of 2015, Shenzhen Fude borrowed 1.377 billion yuan from Kaisa. Shenzhen Fude is a wholly-owned subsidiary of Life Life, and the chairman is Zhang Jun.

After Zhang Jun helped to solve the urgent need, who else helped Guo Yingcheng is not known. Guo Yingcheng's painstaking management in the Hong Kong business community in his early years, as well as the habit of Chaoshan businessmen who are good at holding groups, it is not difficult to solve the problem.

Kaisa Group went public in Hong Kong in the early years, and Li Ka-shing, Lee Shau-kee, Cheng Yu-tong, Yeung Shou-shing and Liu Luan-hung all subscribed for shares.

In 2017, before Kaisa resumed trading, Hong Kong toy king Cai Zhiming transferred 217 million shares of the company, becoming a shareholder of more than 5% of the company's shares.

After crossing the wave of robbery, Guo Yingcheng told the outside world, "Our lives are really good, and our luck is good." ”

The second generation debuts

After the resumption of trading, the company gradually stabilized, and Guo Yingcheng has consciously promoted the second-generation succession.

In 2017, Guo Ying's eldest son, Guo Xiaoqun, made his debut at that year's interim results conference, and he and his sister Guo Xiaoting appeared under the rostrum to observe and learn. In August of that year, Guo Xiaoqun officially entered the Kaisa system, starting from the Regional Headquarters in Shenzhen and rotating in multiple departments.

In May 2018, Guo Xiaoqun was appointed Vice President of Kaisa Shanghai Wealth Management Group and Vice President of Kaisa Real Estate Group Shanghai. In December 2019, he served as the chairman of Jiayun Technology, and in March 2020, he was responsible for Kaisa's strategic layout and development in the Yangtze River Delta.

With many rotation experiences in a short period of time, Guo Yingcheng has worked hard to cultivate his son, so that the latter has reached the core sector and business of the company.

In 2020, Guo Xiaoqun entered the company's board of directors as an executive director and co-president. At the same time, his sister Guo Xiaoting became the vice chairman of the board of directors of Kaisa Meili.

In addition, in July this year, the little girl Guo Haoli has been appointed as the executive director of Kaisa Health. Another daughter of Guo Yingcheng, Guo Xiaoxin, appeared on the shareholder list after the acquisition of Pengcheng Asia (now Kaisa Capital) in 2019.

With the emergence of the second generation, the difference between the ideas of the parents and the fathers appeared. Guo Yingcheng believes that "in the field of diversified development, the younger generation is more suitable." ”

Unlike Guo Yingcheng, the children of the Guo family pay more attention to the fields of technology, finance and capital markets, such as Guo Xiaoqun spent HK$800 million to raise the 01019.hk in 2017, and then advocated the acquisition of Jiayun Technology and got involved in mobile Internet marketing business; Guo Xiaoting spent HK$300 million to invest in Sing Tao (01105.hk), which attracted attention from the outside world.

Up to now, in addition to Kaisa Group, the Guo family has listed enterprises such as Jiayun Technology, Kaisa Meimei, Kaisa Health and Kaisa Capital, and has been involved in many business fields such as technology, property and big health.