Author | Wang Zehong
Produced by | Focus on Finance
Since the double killing of shares and debts on February 11, the stock price of Zhengrong Real Estate has not recovered significantly, and as of the close of trading on February 25, it is still a huge gap of HK$0.72 per share, which is still a huge gap from HK$3.6 on February 10.
The day the stock price plummeted, it was like a watershed, showing two different situations.
Prior to that, Zhengrong repurchased frequently, repeatedly took the initiative to redeem debts, disclosed that contract sales in 2021 increased by about 2.64% year-on-year to 145.643 billion yuan, obtained a credit line of 9.14 billion yuan from the Bank of China, the debts of domestic and foreign companies rose together, and the improvement of the credit side was recognized by professional institutions.
Fitch even highly affirmed the continuous improvement of Zhengrong Real Estate's financial situation, believing that Zhengrong Real Estate's liquidity risk is controllable, the funds are sufficient to cover its debts due or sold back in 2022, and its financial flexibility is superior to other B-rated peers.
All kinds of movements and signs exude a sense of safety. The stock price plummeted, like a wall that collapsed, presenting another world, with insufficient funds to settle the debts due in March, and the ratings were downgraded again by Fitch and Moody's to roll over and exchange offers for 5 debts due in 2022.
Such a comparison of the situation, just like Xiangsheng's stock price suffered a waist cut at that time, and then Xiangsheng Life Service suspended its listing to seek a better time to obtain a better valuation, Zhejiang state-owned enterprises took over, the temporary US dollar bonds were exchanged for offers, and the organizational structure was adjusted.
Zheng Rong's opening was also torn open from the stock price incident. Cash flow deteriorated rapidly, the gap in the debt that was about to mature was difficult to make up, and after some pushing by management and investors, some information was officially released to the outside world and self-help actions.
The news was sent on the evening of February 24, and Zheng Rong said that it has been discussing the sale of assets to improve the current predicament, and is looking for suitable buyers for a number of property development projects and investment properties, including joint venture partners and state-owned enterprises.
At the previous investor conference call, Vice Chairman Liu Weiliang had this statement, but it was more specific: a number of cooperative projects and investment properties have been sorted out, and the cooperation projects are mainly to negotiate equity transfer with partners and state-owned enterprises; it is expected that about 3 billion to 4 billion yuan of asset revitalization and disposal can be completed in the first half of the year.
Apparently, Zhengrong was ready, and the day before the conference call, it had found a buyer who transferred the equity of Rongfu (Tianjin) Real Estate Development Co., Ltd. to its partner Midea Real Estate. It is understood that Rongfu Tianjin Real Estate is a project company of "he zhu meijiang", the project will be sold in 2021 with a pre-sale certificate, and the Self-owned property of the United States with intelligent hardcover is expected to be delivered in 2024.
Next, who will take over Zhengrong's project is the focus of the outside world. But before that, there have been several, on January 30, Zhengrong Xiamen Real Estate, a subsidiary of Zhengrong Real Estate, successively transferred the equity of two subsidiaries, and Ping An Trust took over 49% of the equity of Xiamen Ronglu Real Estate Co., Ltd.
Another wholly-owned subsidiary, Xiamen Zhenglang Real Estate Co., Ltd., is fully owned by "Jinjiang Baihong Real Estate Development Co., Ltd."
Ping An Trust has long been well known to the outside world, behind which is the big financier of the real estate industry, Ping An, and "Jinjiang Baihong Real Estate Development Co., Ltd." is very little known. According to Focus Finance, the company is wholly owned by "Fujian Baihong Real Estate Development Co., Ltd." (hereinafter referred to as "Baihong Real Estate").
Baihong Real Estate is a regional housing enterprise, the main layout in Quanzhou, in the Kerry 2020 Daquanzhou housing commodity housing sales list, Baihong Real Estate ranked 11th with a full caliber sales of 2.383 billion yuan, followed by Zhengrong Group. In December 2021, Baihong Real Estate also bid for a commercial and residential land in Yongchun, Quanzhou, with a total price of 130 million.
This time, Byhong Real Estate took over from Zhengrong Xiamen Zhenglang Real Estate, and there is a foreign investment enterprise with the name of "Quanzhou Qitai Real Estate Co., Ltd.", which was previously mainly held by 4 enterprises, namely Jinhui Group, Xiamen Zhenglang Real Estate (i.e. Zhengrong Real Estate), Fujian Baihong Real Estate and Baojia. After Fujian Baihong Real Estate takes over Xiamen Zhenglang Real Estate, it will hold 50% of the equity of Quanzhou Qitai Real Estate.
According to the focus of finance and economics, Quanzhou Qitai Real Estate is the developer of the "Hanlin Co-authorship" project, the total investment of the project is 1.864 billion yuan, covering an area of 97 acres, it is planned to build 16 ordinary residences, commercial stores, greening and other supporting facilities, residential rough price limit of 8500 yuan / ㎡, the project planning and construction of 1602 households, is still on sale.
That is to say, after Midea Real Estate and Ping An Trust, Fujian Baihong Real Estate has also become one of the takeovers of Zhengrong Real Estate.