On November 23, Chinese Real Estate (00127. HK) announced that the relevant shareholders have made written approval to grant a sale authorization to the Directors to authorize the sale of all or part of the authorized shares (of China Evergrande) held by the Group on 23 September 2021 (before the trading session), representing approximately 5.67% of the issued share capital of China Evergrande Group as at 31 October 2021.
Liu Luanxiong, the owner of Chinese real estate, is a famous rich man in Hong Kong, the ex-boyfriend of stars such as Kwan Chi Lin and Li Jiaxin, and a long-time friend of Xu Jiayin. Mr. and Mrs. Liu Luanxiong can be described as "loyal fans" of Evergrande, and were once important shareholders of China Evergrande, holding 9% of the shares of China Evergrande. At the peak of China Evergrande's market capitalization, its highest book profit was nearly HK$10 billion. At the end of 2019, Liu Luanxiong and his wife also received a dividend of 1.7 billion yuan from China Evergrande.
Liu Luanxiong and his wife Image source: Visual China
Now Liu Luanxiong cut meat clearance Evergrande, is expected to lose more than HK$11 billion in total.
Huaren Real Estate authorized the liquidation of 751 million shares of China Evergrande
On 23 November, Huaren Land announced that "the Group will sell up to 751 million Authorized Shares in the market or through block transactions in one or more transactions from time to time during the Authorisation Period, subject to the prevailing market conditions." "The sale authorization will be valid for a period of 12 months from September 23, 2021 to September 22, 2022.
As early as August this year, Huaren Real Estate had begun to sell its stake in China Evergrande. According to its disclosure, between 30 August 2021 and 21 September 2021, Huaren Real Estate sold a total of approximately 108.9 million previously sold shares on the open market of the Stock Exchange (representing approximately 0.82% of the issued share capital of China Evergrande Group as at 31 October 2021) for a total consideration of approximately HK$246.5 million (excluding transaction costs). The average selling price per previously sold share is approximately HK$2.26 (excluding transaction costs).
Since the commencement of the Authorisation Period and as of the last practicable date, China Land has sold a total of approximately 438 million Authorized Shares under the Licence to Sell, with an average selling price of approximately HK$2.61 per Authorized Share and a total proceeds from the sale (excluding transaction costs) of approximately HK$1,141 million.
As at the last practicable date, Huaren Land continued to hold the remaining authorized shares, representing approximately 2.36% of the issued share capital of China Evergrande Group as at 31 October 2021.
Assuming that all the remaining Authorized Shares held by the Group on the last practicable date will be sold at the closing price of China Evergrande Group's shares at the closing price of the shares at the last practicable date of HK$2.78 per Authorized Shares, the estimated proceeds from the sale of the Authorized Shares under the Sale Authorization will be approximately HK$2,011.7 million.
As of the close of trading on the 23rd, the share price of Huaren Real Estate was reported at HK$3.7 per share, down 0.27%, and the latest market value was HK$7.058 billion; China Evergrande's stock price was HK$2.93 per share, up 6.55%, and the latest market value was HK$38.824 billion.
Image source: Oriental Fortune
The investment in China Evergrande lost more than HK$11 billion
In the future, "it is difficult", and Chinese real estate plans to delist
According to brokerage China, Huaren Real Estate disclosed that in terms of rent collection, the rental income in the first half of this year was about HK$161 million, a significant decrease of HK$0.51 billion from HK$212 million in the same period of 2020.
In addition to the decline in rental income, the return on capital of Chinese Real Estate in stock speculation also decreased year-on-year. According to the data, in the first half of the year, China Real Estate's dividend income, interest income from bonds and structured products and investment income from stock holdings was about HK$530 million, compared with about HK$1.715 billion in the same period of 2020.
It is reported that The investment of Chinese Real Estate in securities has invested heavily in 2 Chinese mainland real estate enterprises - China Evergrande and Kaisa, and this year, especially China Evergrande, is facing liquidity problems, and the stock has fallen sharply this year.
"The Group is already in a challenging and uncertain business environment, and the above problems have added to the Group's weight." Huaren Real Estate said that in view of the material adverse changes in the group's financial position since June 30 this year, the future prospects may be difficult.
According to the announcement of China Real Estate, the cost of buying 860 million shares of China Evergrande from 2017 to 2018 was about HK$13.596 billion, and now it is expected to cash out only HK$2.26 billion after liquidation, with a loss of more than HK$11 billion.
According to the China Securities News, the previous announcement of Chinese Real Estate disclosed that on September 28, the offeror Solar Bright Ltd asked the board of directors to submit a proposal to the planned shareholders to privatize Chinese Property. Upon completion of the above proposal, the Offeror, Century Frontier and JLLH Investments will hold all of the issued share capital of China Land and the listing status of the Shares on the Stock Exchange will be withdrawn.
Under the proposed scheme, the Planned Shareholders would receive a write-off price of HK$4 in cash from the Offeror for each Cancelled Planned Share, representing a premium of approximately 83.5% over the closing price of hk$2.18 per Share reported on the Stock Exchange on the last full trading day of the Shares, as consideration for the cancellation of the Planned Shares.
It is understood that the Offeror, Solar Bright Ltd, is directly wholly owned by Sino Omen Holdings Limited, while Sino Omen Holdings Limited is held by Mrs. Liu Luanxiong, Chen Kaiyun (as a trustee of her minor children), the offeror's main asset is the shares held by it, and the offeror's directors are Chen Kaiyun and Chen Shiyun.
After the privatization of HWA Real Estate, approximately 62.92% of the shares will be owned by the Offeror and approximately 24.97% and approximately 12.11% by Century Frontier and JLLH Investments (each acting in concert with the Offeror).
The announcement disclosed that the total issued share capital of Huaren Real Estate included 1.907 billion shares. The Planned Shares currently issued are 477 million shares, representing approximately 25.01% of the Company's issued share capital. Based on the write-off price of HK$4 per share, the proposed valuation of the entire issued share capital of Huaren Property is HK$7.63 billion, while the maximum cash consideration required to implement the proposal will be HK$1,907 million.
Two years ago, it received a dividend of 1.7 billion yuan
The highest book profit is nearly HK$10 billion
According to public information, Liu Luanxiong, a 70-year-old Chinese property owner, is a well-known rich man in Hong Kong, who ranked 155th in the "2021 Forbes Global Rich List" with a net worth of US$13.6 billion (about 86.9 billion yuan), and is the ex-boyfriend of stars such as Guan Zhilin and Li Jiaxin.
As important shareholders of China Evergrande, Liu Luanxiong and Chen Kaiyun can be described as "loyal fans" of China Evergrande. As early as 2017, Huaren Real Estate announced that it had bought about 820 million shares of China Heng in the open market for HK$12 billion. Chen Kaiyun is the executive director of China Real Estate.
In December 2019, China Evergrande announced the payment of a dividend of RMB1.419 per share for the financial year ended December 31, 2018. According to the total share capital of China Evergrande, the total dividend of China Evergrande will reach about RMB18.7 billion. According to the disclosure of rights and interests of the Hong Kong Stock Exchange, Liu Luanxiong And His wife Chen Kaiyun held 9% of the shares of China Evergrande, so in the 18.7 billion yuan "luxury" dividend of China Evergrande that year, Liu Luanxiong and Chen Kaiyun and his wife received about 1.7 billion yuan of "big red envelopes".
In addition, from the perspective of Liu Luanxiong and his wife buying shares of China Evergrande in 2017, combined with the stock price trend in the following years, it can be said that they have made a lot of money, with a book profit of nearly 10 billion Hong Kong dollars. In 2017, China Evergrande's stock price sprung up, with an annual cumulative increase of 624.33%, and the market value exceeded HK$300 billion, which is an uncompromising bull stock.
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