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Wanda
Author | Tian Weifeng
Edit | Wan Jiali
Source | Quest Finance (ID:teccj6)
Wang Jianlin has ushered in another fierce general. Li Hongpeng, vice president of business of Hyundai Motor Group (China), left his post at the end of last year and has officially joined Wanda Motors.
In recent years, it has not been easy for Wang Jianlin, who was born in 1954. Wanda started "selling and selling" in 2017, and overseas and non-main businesses have become fire-selling products. This rhythm is four or five years earlier than the current self-help operation of real estate developers.
However, with countless small goals in mind, will the leading big brother of real estate crazy diversification easily lie flat? Time has finally given the answer. After nearly 5 years of fire sales, Wanda, which has regained its strength, has also entered the automobile industry. On November 22, 2021, Wanda Automotive Technology Service Co., Ltd. was registered and established in Zhuhai Hengqin New District.
Real estate developers' involvement in the auto industry is nothing new. Baoneng and China Evergrande have paid a terrible price in the automotive industry. In 2017, yao Zhenhua's Baoneng stepped into the automotive industry and fell into an endless abyss.
On the car race track, there is never a shortage of pit fillers. Will Wang Jianlin follow in Yao Zhenhua's footsteps?
01 Playing with cars?
From Maybach to Audi A8, Wang Jianlin's car is not lacking. But after he changed his car to a red flag, Wang Jianlin's careful thinking about intervening in the automobile industry made people think.
Wang Jianlin is interested in cars, not just luxury cars. At the end of 2016, the richest man who was still getting by at the time made an easy investment.
On December 15, 2016, at the China Manufacturing Summit Forum held on the same day, Dong Mingzhu of Gree Electric Appliances, together with Wanda and other 5 units, signed a capital increase agreement, with a total increase of 3 billion yuan and 22.388% of the equity of Zhuhai Yinlong. Dong Mingzhu was very interested in building cars at that time, but the money was still not enough.
Money is a matter of several small goals for Wang Jianlin. He modestly said that he had only made a small investment. The investment is based on the fact that Wanda and Gree are close strategic partners, and wang Jianlin's trust in Dong Mingzhu. How much did you vote for? Wang Jianlin said with some humor: "Not big, not big, not big, 500 million, not big." ”
Only this time Wang Jianlin looked away. Zhuhai Yinlong then had a series of dog blood dramas, and Dong Mingzhu and Wei Yincang, the founder of Zhuhai Yinlong, were incompatible. It's just that the big brother does have the temperament of the big brother, and for the investment of 500 million yuan, Wang Jianlin did not pour bitter water afterwards.
Of course, after the beginning of 2017, Wang Jianlin's challenges and troubles can make him ignore the 5 small goals.
After several years of hard work, Wang Jianlin wanted to re-enter the car track. This time, he's going to dominate.
On October 11, 2021, China FAW and Wanda Group announced the official launch of their strategic cooperation. This is the first time that Wanda has carried out strategic cooperation with a vehicle company. This cooperation is the launch of Wanda and Hongqi and Hongqi dealer partners, in addition to the construction of the "new Hongqi supermarket experience store" for automobile sales, the two sides in terms of service, energy and membership services. A few months ago, FAW Hongqi, Wanda Group and Taiyue Group held their first talks in Beijing.
More than a month later, Wanda Automotive Technology Service Co., Ltd. was registered in Zhuhai Hengqin New District with a registered capital of 100 million yuan, which happened to be a small goal of Wang Jianlin. Wanda holds 65% of the shares, and Taiqing (Beijing) Technology Co., Ltd. holds 35%.
At the shareholder level, Taiqing looks very strange. After the penetration, the actual controller of this company is Yue Yue'an, the actual controller of Shandong Taiyue Group. Shandong Taiyue is not very famous, claiming to have assets of 10 billion yuan, spanning three major sectors of automobiles, environmental protection engineering and culture.
Shandong Taiyue's automobile sector is mainly automobile sales. Since its first 4S store in Dongying City in 2004, it has developed into a car dealer group with more than 30 4S stores, involving four car brands: Mercedes-Benz, Ford, Beijing Hyundai and Hongqi. It is precisely because of the experience of selling red flags that the company outside the top 100 auto dealerships has joined hands with Wang Jianlin.
The business scope of Wanda Automotive Technology Service Co., Ltd. includes automobile new car sales, auto parts wholesale, motor vehicle charging sales, household appliances sales, professional design services and so on. From this business scope, Wang Jianlin is currently involved in the automotive field is still only at the distribution level, and has not yet been involved in automobile design and manufacturing.
From this point of view, Wang Jianlin, who once liked to take strong drugs on the road of diversification, has some convergence, continuing the idea of asset-light transformation in recent years. Because he once paid a terrible price for diversity.
02 The Death of Wanda
Wang Jianlin was once in tears. Sometimes, inadvertently, a single sentence may be doomed to the end.
Wanda before 2017 was exceptionally beautiful. Wanda is full of ambition, the world is expanding wildly, and the goal of China's richest man is particularly ambitious. Wang Jianlin once said: "Either don't do it, do it best." ”
Looking back at Wanda's years, is it somewhat similar to a professor who is in a dilemma today? It doesn't matter who is handsome, at least the temperament is very similar.
In early 2012, Wanda set a ten-year strategic goal. At this point, Wanda began the road of mergers and acquisitions. Wang Jianlin regards Wanda's diversification as a related diversification, never jumping to the fields of energy or aviation, and it is really good to develop well.
At that time, Wang Jianlin was very determined, he said: "Wanda will firmly take the relevant diversification path to ensure that Wanda achieves the goal of 'centennial enterprise'." ”
The effect of diversification is immediate. On October 15, 2015, the Hurun Research Institute released the "Hurun Rich List", and 61-year-old Wang Jianlin and his family surpassed Jack Ma with a wealth of 220 billion yuan and became the richest man in China for the second time. The wealth of the Wang Jianlin family has achieved an amazing leap, and the wealth on the list has increased by 52% over the previous year. At this time, Baoneng Yao Zhenhua also ranked 231st in the Hurun rich list, with assets of 12.5 billion yuan. Yao Zhenhua and Wang Jianlin are still more than 2,000 small targets away. However, in 2016, Yao Zhenhua will perform miracles.
China's richest man, Wang Jianlin, has attracted attention around the world. Entering 2015, Wanda's momentum is even stronger.
On January 22, 2015, a major event occurred in Wanda's film and television group - Wanda Cinema Line (002739. SZ) was officially listed on the Shenzhen Stock Exchange. After the opening of the market, the stock price of Wanda Cinema Line was sealed on the up-and-down board with a rise of 43.98% higher than the issue price. Listed, Wang Jianlin is more confident. Whether at home or abroad, Wanda is expanding its layout in the film and television industry.
Wanda development history chart
In addition to the film and television industry, Wanda also has to try its hand in the field of Internet technology and Internet finance.
On March 31, 2015, Wanda e-commerce "Feifan O2O Open Platform" was officially launched, and "Feifan One Card" and "Feifan Integral Alliance" were launched and operated simultaneously. Getting involved in e-commerce is not a whim. As early as the end of 2013, Wanda rolled out this game of chess. At the end of December 2015, Wanhui network and mobile client "Wanhui" were launched for trial operation. However, compared with the well-known Wanda movies, the chess game of e-commerce Wanda is a bit lonely. Feifan.com has also gradually disappeared in many changes since then. Nothing is okay without money, and having money is not everything.
Also in 2015, Wanda's Internet financial products officially entered the public eye. On June 12, "Steady Earning No. 1" was officially launched, and it was sold short on the 3rd day of listing and completed the issuance plan of 5 billion yuan, which also created a new record in the global crowdfunding industry.
In addition to "Steady Earning No. 1", Wanda's layout in the financial field also includes insurance. In the past few years, the three industries of real estate, insurance capital and banking have always been closely linked. Investing in real estate enterprises to be invisible landlords is also an important track for most insurance funds, and it is precisely as such that Ping An of China is known as The Largest "Invisible Land King" in China by virtue of its "two shareholders" status as the "second shareholder" of many housing enterprises. Similarly, in addition to accepting insurance funds and bank shares, there are also real estate companies that choose to be investors in insurance funds and banks. At this time, Wanda, who is rich and powerful, is naturally ambitious of the latter.
On February 18, 2015, Times Wanheng announced that Wanda had acquired 100 million shares of Centennial Life owned by Time Wanheng for 122.5 million yuan. This is not the first time that Wanda has acquired a stake in Centennial Life, as early as June 2014, Wanda Group acquired 100 million shares of Centennial Life listed and transferred by Guodian Power on the Beijing Stock Exchange for 122.5 million yuan. After the completion of the acquisition, Wanda's shareholding in Centennial Life exceeded 5%.
Wanda's financial ambitions don't stop there. In the summary of work in the first half of 2015, Wanda set up a FLAG: "In the second half of the year, we will complete the merger and acquisition of three companies: banking, securities and insurance." "Wanda has taken the finger at the financial group. Wang Jianlin also has great expectations for the "financial group", believing that this sector is the most valuable in the future of Wanda.
On November 17, 2016, Dalian Wanda (Shanghai) Financial Group Co., Ltd. was formally established with a registered capital of 5 billion yuan and is wholly controlled by Dalian Wanda Group Co., Ltd.
Looking at the summary of Wanda Group's work in 2016, in addition to the basic real estate expansion, Wanda's other fields include culture, film, tourism, sports, networking, and finance. However, the things it carries are getting heavier and heavier, and the turning of the heel comes quickly. This is a bit like a professor, running fast, although the appearance is good-looking, but the belt is easy to expose.
The next goal of the three steps of mergers and acquisitions in Wanda's financial map has not yet been clear, but the crisis has arrived one step ahead.
In June 2017, Wanda suffered a double siege of stocks and debts, and its life was difficult. With high debt and tight cash flow, diversification is cumbersome. Wanda chose to "slim down", selling assets not only including real estate project resources, but also overseas assets and cultural tourism projects, and of course, the financial sector that had been given high hopes.
Wanda has entered a more difficult adjustment period, and Wang Jianlin's former status as the richest man is undergoing strategic adjustment. The performances in the next few years were left to a professor and Yao Zhenhua, who were bolder entrepreneurs.
03 Car Traps
Yao Zhenhua is a very distinctive dark horse.
While Wang Jianlin was shrinking, Yao Zhenhua began to diversify quite fiercely. Its confidence lies in the fact that after entering Vanke in 2015, it became the largest shareholder of Vanke (000002.SZ). Even in the 2016 Hurun Rich List, he miraculously went from 231st to 4th, with assets of 115 billion yuan. However, it is still a small target of 1,000 yuan for Wang Jianlin (Wang Jianlin's family assets are 215 billion yuan).
In 2017, when Wang Jianlin began to shrink, it was a time when other real estate companies were crazy to increase leverage. That year, a professor still had more than 300 billion yuan in cash in his hand, and "buying, buying, buying" and "adding leverage" were quite happy.
Yao Zhenhua also made the most regrettable choice in his life this year. In 2017, the "Baowan Dispute" has been settled. Yao Zhenhua, a "barbarian" who smashed the door with money, was punished by the Insurance Regulatory Commission with the punishment of revoking his qualifications and banning him from the insurance industry for 10 years. Qianhai Chinese Shou, the biggest cash cow of the Baoneng department, was also punished. But this did not extinguish Baoneng's enthusiasm for continuing to expand outwards, and while Wanda was struggling to do subtraction, Baoneng was still adding new additions to itself.
On March 20, 2017, Baoneng established Baoneng Automobile Co., Ltd. This is only the first step. On November 17, 2017, Qoros Automobile was "listed" on the Yangtze River Equity Exchange for the second time, selling 25% of its shares, and the reserve price of the listing was 1.625 billion yuan. The transfer was eventually successful, and the buyer was Baoneng.
Baoneng's purchase of Qoros shares can be said to be a "mess", and Qoros' financial situation is not good. In 2016, Qoros had revenue of 2.647 billion yuan and a loss of 1.328 billion yuan. But this may not be a problem for Baoneng, who has a bulging wallet at this time, but may regard Qoros as an important pawn in its entry into the automotive industry.
Baoneng does have very high expectations for car building. In October 2017, Baoneng signed a project cooperation framework agreement with the Government of Fuyang District of Hangzhou, and reached the intention of settling down in the project with an annual output of 300,000 new energy vehicles. In November, the Kunming Municipal Government, the Management Committee of the Central Yunnan New Area and Baoneng Group signed a strategic cooperation framework agreement in Shenzhen, one of which is to build 500,000 new energy vehicles and parts projects in the Kunming Economic Development Zone and the Airport Economic Zone. In December, Baoneng Group invested 30 billion yuan in Guangzhou to start construction of a new energy automobile industrial park. On January 9, 2018, Kenon Holdings (QUANTUM parent company), the foreign parent company of Qoros Automobile, announced that Baoneng once again completed the acquisition of 51% of Qoros' shares for 6.63 billion yuan.
In addition to the huge investment in the automobile field, Baoneng also spends a lot of money elsewhere. Whether it is investing in the construction of nursing homes and international hospitals, Baoneng is still expanding and improving its own industrial layout, and the load of the wallet is becoming heavier and heavier.
Since 2017, the liabilities of Shenzhen Jushenghua Co., Ltd., an important financial platform of Baoneng, have increased year by year. From 2017 to 2019, its debt scale increased by 1.57%, 3.71% and 23.04% respectively year-on-year. At the end of 2020, the balance of interest-bearing liabilities of Jushenghua was 89.463 billion yuan, an increase of 14.12% year-on-year. The trust financing reached 29.294 billion yuan, all of which was guaranteed financing. In September 2020, Jushenghua issued two more corporate bonds "20 Shen Ju 01" and "20 Shen Ju 02", with a total issuance scale of 3.19 billion yuan and interest rates of 6% and 7.5% respectively.
At the same time, the news that Baoneng wants to enter the mobile phone industry and begin to make mobile phones has attracted attention. It's just that time didn't give it a chance, otherwise Baoneng mobile phone might make Lei Jun break out in a cold sweat.
On June 15, 2021, Jushenghua overdue interest payment of 89.6857 million yuan, for which China Huarong filed a lawsuit, proposing that Jushenghua accelerate the repayment of the remaining loan principal of 4.2 billion yuan. On July 26, China Minsheng Trust issued an announcement saying that the principal and interest paid by Baoneng to it on July 25 totaled about 2.116 billion yuan had not been paid in time. On August 2, the principal and interest of the 2 billion yuan trust loan issued by Aijian Trust to Shenzhen Logistics was defaulted, and on August 23, the 2.4 billion yuan trust loan issued by Chongqing Trust to Baoneng Automobile was in default.
In addition to the successive occurrences of default events, the total interest-bearing liabilities of Baoneng Investment Group Co., Ltd. as of the end of September last year were 192.7 billion yuan. Huge debts are at the top, and treasure is crumbling. Yao Zhenhua can only choose to sell assets to fill the hole.
Yao Zhenhua launched the sale of 8 major projects in Shanghai, Shenzhen and Guangzhou, such as Shenzhen Baoneng Center, Old Renovation Project, Qianhai Quality Project, and Logistics Park Asset Package Project.
Shares of listed companies, which Yao Zhenhua valued so much, were also sold. On October 13, 2021, Qianhai Life and its co-actor Ju Shenghua issued the Notification Letter of Share Reduction. Qianhai Life plans to reduce its holdings of no more than 164 million OCT shares, plus 80.474 million OCT A shares of Jushenghua from April 14 to July 12, and Baoneng is expected to cash out 2 billion yuan.
On December 18, 2021, Baoneng issued a redemption plan for designated wealth management products, saying that "from now on, the acquisition of the underlying assets of designated wealth management products will be organized, and all the purchase proceeds will be used for the redemption of designated wealth management products." This is also Baoneng's latest public move to deal with the debt crisis.
In September 2021, Yao Zhenhua also stated at an internal meeting: "We have the ability and strength to completely get out of the predicament in two to three months." "It's just that now, the New Year has arrived, and Baoneng has not yet delivered good news."
Baoneng's automobile sector is also naturally in the list of sales, but it is not easy to sell a good price and sell in time. Wanda's adjustment after 2017 has also taken pains to sell assets, but now it seems that Wanda is indeed very lucky. If Wanda had been in trouble last year, perhaps God would have been in trouble, and there would have been no Wanda involved in the auto industry now.
Looking at the diversified development of real estate enterprises in recent years, it can be described as constant twists and turns.
Everyone thinks that their diversification and expansion is centered around the main business. Whether it is Wang Jianlin's related diversification or Yao Zhenhua's risky rush into the car race track, there are huge risks. After all, in the process, the uncertainty of the market and policies will often bring the big Mac into the pit.
The era of high leverage is over, and companies that have experienced pain will better understand the principle of doing what they can. Just as a person has obtained the "three highs", he still has to be cultivated.
In January 2017, the Wanda Annual Meeting was held in Hefei, and Wang Jianlin sang several songs, one of which was "Nothing". Now, if Yao Zhenhua hears this song, it may also ripple.