Lu Zhiqiang became an old Lai, and the 300 billion giant Oceanblast entered the "bankruptcy" camp

In the capital market, Lu Zhiqiang of Oceanwide Holdings and Xu Shoufu, who has been frequently mentioned recently, are also known as the "second old man" of the bond market.

Because the two of them have been playing gang-cash, never being defaulted, hanging on that red line, walking tightrope, playing with heartbeat.

Of course, "and name" is also because both people are well-known red-top businessmen in the industry. However, Lu Zhiqiang's once glorious title has now been extinguished by a label - Lao Lai.

On July 6, the enterprise investigation updated the information showing that China Oceanwide Holding Group Co., Ltd. and its chairman Lu Zhiqiang were listed as the executors, the subject of the execution was 4998840800 Yuan, case number (2021) Jing 02 Zhi 885, and the enforcement court was the Beijing No. 2 Intermediate People's Court.

This is the second time that Lu Zhiqiang has labeled it as "executed". On August 13, 2020, Lu Zhiqiang was listed as an executor by the Beijing No. 2 Intermediate People's Court, with an enforcement target of RMB1.3 billion.

According to the enterprise investigation information, there were 238 judicial cases related to Oceanwide Holdings, and 13 pieces of information on the person subject to enforcement.

The high proportion of pledge, freezing and execution means that the actual controller, Lu Zhiqiang, has a weaker and weaker control over the company.

As a "giant wheel enterprise" with total assets of more than 300 billion yuan, Oceanwide Holdings is really going to sink?

Say goodbye to real estate employees - "laid off"

At the beginning of this year, Oceanwide's Beijing headquarters was very restless.

The whistleblower said that Oceanwide began to lay off employees, starting from regional companies, and the Beijing headquarters was not spared, laying off 30% of the people, and some departments were ended by the entire sector.

Oceanwide's business has covered many fields such as real estate, finance, Internet, food, etc., and even if the employees of Oceanwide Holdings' parent company exceeded 600 people at the peak, they are now facing a major contraction.

Employees were laid off because the project and the company were gone, and there was nothing to do.

Since 2014, Oceanwide Holdings began to transform from real estate to finance, and it has been gradually de-real estate.

After 2018, the handling of real estate projects has accelerated significantly, and core real estate projects such as Shanghai Dongjiadu, Beijing Oceanwide International, and Wuhan Center in China, and projects outside the United States in New York, Los Angeles, San Francisco, And Hawaii have been put on the "shouting table".

The largest domestic fire sales are related to Sunac.

In January 2019, Oceanwide Holdings signed an agreement with Sunac to sell its entire stake in Beijing Oceanwide International Project Lot 1 and Shanghai Dongjiadu Project to Sunac for 12.553 billion yuan, and media reported that one of the reasons for Oceanwide Holdings' sale of these two core projects was due to cash flow pressure.

Among them, after Sunac took over the No. 1 plot of Beijing Oceanwide International Project, it was widely discussed for trying to change the plan, and there has been no public project promotion news so far. The Shanghai Dongjiadu project is strategically located, close to the Huangpu River and Yuyuan Garden, which was won by Oceanwide in 2002, but because of the slow demolition speed and the capital chain problem of Oceanwide Holdings, the plot was sleeping for 17 years, and then it was built into a high-end project Sunac Bund No. 1 Courtyard by Sunac.

On June 25 this year, Wuhan Central Business District Co., Ltd., a subsidiary of Oceanwide Holdings, signed a Letter of Agreement with Sunac on June 24, 2021, to transfer to Sunac Real Estate its 100% equity interest in Zhejiang Oceanwide Construction Investment Co., Ltd. after the divestiture of assets. The divested assets include a 10.7143% stake in China Minsheng Trust Co., Ltd. held by Zhejiang Oceanwide, and a 1,082.4 square meter commercial and 22 parking spaces in Building 1, Hangzhou Oceanwide International Center, with a total transaction price of about 2.2 billion yuan.

After the completion of the transaction, Hangzhou Diaoyutai Hotel and Hangzhou Minsheng Financial Center held by Zhejiang Oceanwide Construction Investment Co., Ltd. will be held and operated by Sunac Real Estate, and Zhejiang Oceanwide Construction will no longer be included in the consolidated statements of Oceanwide Holdings.

In addition to the transaction with Sunac, on June 15, 176 million shares of the company held by China Oceanwide Holdings Group Co., Ltd., the controlling shareholder of Oceanwide Holdings, were auctioned, and the cumulative number of shares auctioned accounted for 4.96% of the number of shares in the company held by it and 3.39% of the total number of shares in the company. Oceanwide Holdings received RMB398.1 million through this equity auction.

The most famous phase of the sale overseas was the sale of STAR investment institution IDG for $1.3 billion to Blackstone Group.

Most of the 7 real estate projects that Oceanwide can sell (normal construction) are handled by third-party investment companies, because such companies have complex capital structures, and the transactions of specific projects are low-key and secretive. Those that cannot be sold, rumors that involvement in local corruption cases are under investigation and may be suspended indefinitely.

The remaining domestic real estate assets of Oceanwide Holdings are basically only part of the equity of Wuhan World Trade Center.

However, these plots have been applied for auction by creditor institutions such as Sino-British Yili Asset Management on the grounds of disputes over financial loan contracts.

It is reported that Oceanwide Holdings will be auctioned before the end of July this year, reaching 330 million shares, with a starting price of 819 million yuan.

The former real estate giant Oceanwide Holdings may bid farewell to the real estate once and for all.

The transformation stride is too big - "pulled"

In the early stage, Lu Zhiqiang only wanted to transform finance, but did not want to give up real estate. In the end, the result of "losing the lady and folding the soldiers" was still because of the financial transformation, and the steps were too big.

In its heyday, Oceanwide Holdings once controlled 7 banks (Minsheng Bank, Dalian Bank, Guangxi Beibu Gulf Bank, Bank of Zhengzhou, Bank of China, Giotong Bank, China CITIC Bank), 5 insurance companies (Asia-Pacific Property & Casualty, Xingmin Insurance, Minsheng Insurance, Asia-Pacific Reinsurance < proposed >, Asia-Pacific Internet Life < proposed >), 4 securities (Minsheng Securities, BOCI Securities, Guotai Junan Securities, Haitong Securities), 3 funds (Minsheng Wealth, Oceanwide Fund< to be >, Minsheng Fund < proposed >), 1 Minsheng Trust, 1 Minsheng Futures, 1 Minsheng Pawnshop, 2 leasing (CMIG Leasing, CMIG International Financial Leasing), 3 guarantees (Chengdu SME Financing Guarantee, Minsheng Financing Guarantee, Oceanwide Financing Guarantee< proposed >), 2 factoring (Wenxi Commercial Factoring, Minxin Commercial Factoring), 8 Internet finance (Minsheng Financial Services, Beijing Yunjin Institute, Beijing Minjin Institute, Beijing Beijin Institute, Rong Home, Investment Home, Jinlian Financial Services, Minsheng Yi Loan) There are also 2 credit reporting agencies (Shanghai Ying bee credit reporting, large number credit reporting).

Since then, Oceanwide has successively invested in 45 listed companies and 9 new third board companies.

Among them, there are many legendary holdings, Alibaba, Tencent Holdings, Qihoo 360, Gome Electrical Appliances, China Merchants International, Kingsoft, Shenzhou Car Rental, Bank of China, Bank of Communications, China CITIC Bank, Guotai Junan, Haitong Securities, Red Star Macalline, Huiyuan Juice, Xifeng Wine, Huijishan and other star enterprises.

But these investments seem to have only produced the effect of merger expansion on scale, which has raised the valuation to a certain extent, but has not really transfused blood.

According to the financial report data, the net profit of Minsheng Securities in 2020 was 916 million yuan, the net profit of Minsheng Trust was 232 million yuan, and the net profit of Asia-Pacific Property & Casualty Insurance was 61.375 million yuan... There is a certain gap between the profitability of other similar companies in the industry.

Compared with the short-term liabilities of Oceanwide Holdings of up to 51.7 billion yuan, these profits are also a drop in the bucket.

Some institutions have counted the cumulative cash-out amount of Oceanwide Holdings' public sale projects in 2020, which is about 23.4 billion yuan. Even if you add the monetary funds of Oceanwide Holdings in that year, 18.8 billion yuan. These available funds are not sufficient to cover short-term liabilities.

Money Strings – "Crashed"

The "fuse" that triggered the pan-ocean crisis was the Minsheng Trust.

In 2020, Minsheng Trust was successively involved in major commercial issues such as the "Huiyuan Juice Case", "The Radish Chapter Incident of the Fifth Bureau of China Construction", "Golden Phoenix Jewelry Ten Billion Fake Gold", "Xinhualian Bond Overdue Incident" and other major commercial issues, and the disputes arising from the thunderstroke incident exceeded 15 billion yuan.

However, if you look closely, the amount of money borne by Minsheng Trust is not small, but for Oceanwide Holdings, which has assets of 500 billion yuan, there should be no redemption problem.

Because Oceanwide only auctioned the equity assets of Minsheng Securities, the funds returned have exceeded 30 billion yuan.

Why was Oceanwide hit by this "side line"?

Because the seemingly huge Giant "Oceanwide System" is only outside the golden jade, in fact, it is vulnerable.

According to the 2020 performance express report of Oceanwide Holdings, it achieved a total operating income of 14.057 billion yuan and a net profit attributable to the parent of -4.621 billion yuan in that year, which turned from profit to loss, and the loss margin exceeded the performance forecast expectation (-4 billion yuan to -3 billion yuan); the basic earnings per share was -0.8893 yuan; and the net assets per share attributable to the shareholders of the parent company were only 3.2 yuan.

With such a business quality, Oceanwide Holdings has been taking the "stilt strategy", vacating assets with high leverage to maintain capital flow and scale expansion.

This has resulted in Oceanwide Holdings' net cash flow from operating and investment activities remaining negative from 2014 to 2016.

At the same time, the subsidiaries of Oceanwide Holdings have been repeatedly pledged by the major shareholder China Oceanwide, and have been seamlessly pledged, which means that many of the subsidiary equity held by Oceanwide cannot actually be disposed of, because these large-scale equity is in a 100% pledge state.

Big Mac joins the "bankruptcy camp"

Collapsed in a tense "money reversal", the string will one day break.

In October 2020, a number of trust projects under Minsheng Trust, including Zhixin No. 516, Zhixin 681 and Zhixin 828, were deferred.

On May 24, 2021, Oceanwide Holdings announced that the remaining $134 million of the company's US dollar bonds issued in May 2019 were unable to complete the payment in July due to tight cash flow.

The substantial default of US dollar bonds and the default of trust product redemption have induced a "risk control chain reaction" in finance.

For example, large financial institutions no longer dare to have contacts with oceanwide, and rating agencies such as Standard & Poor's, Fitch, United Credit, and Oriental Jincheng have downgraded oceanwide's rating to "danger level".

At the same time, Oceanwide was sued by domestic and foreign suppliers from San Francisco and Shandong, which was also an important factor for Lu Zhiqiang to be included in the judgment debtor.

Due to the large number of suppliers on appeal, Oceanwide has been listed as an executor for six consecutive times in one week, with a cumulative execution target of 5.723 billion yuan. If these targets are not implemented on time, Lu Zhiqiang will be re-included in the ranks of the executors several times and labeled with countless "Lao Lai" labels.

Oceanwide Holdings, which is already difficult to raise funds and has few projects to sell, can only push its equity into the stage of public judicial auction.

In fact, this year's 3.39% stake and 6.37% stake in Oceanwide Holdings have been listed twice on Alibaba's judicial auction network platform.

The once big Mac has actually entered the "bankruptcy camp".