The old state-owned real estate enterprises couldn't bear it anymore and officially announced their "change of life".
On the evening of April 26, Huayuan Real Estate, a listed company, announced that it planned to sell all its real estate assets and liabilities to its controlling shareholder, Huayuan Group.
This sale, Huayuan Real Estate mainly only has two pieces of business and hotel, and it may be inappropriate to use the name "Huayuan Real Estate" again, and it should be a matter of time before the name is changed.
As for how to change, in fact, there are ready-made examples, just "copy homework" directly.
If you focus on commercial operation, you can learn from Wanda, which is called "Huayuan Commercial Management", and if you focus on hotels, you can learn from Huatian, Jinjiang, BTG, etc., it is called "Huayuan Hotel".
In fact, Huayuan Real Estate lagged behind in the last wave of real estate companies changing their names.
Since 2018, a number of leading real estate companies have changed their names, Poly Real Estate has been renamed "Poly Development", Vanke Real Estate has been renamed "Vanke Development", Longfor Real Estate has been renamed "Longfor Group Holdings", and Evergrande Real Estate has been renamed "China Evergrande".
According to statistics made by the media, most of the top large real estate companies have removed the word "real estate" from their company names, and only a few factions such as R&F Real Estate have not caught up with the trend.
Of course, although there is no "real estate" in the name, in fact, it is mainly about selling houses, and the so-called new profit points such as business, hotels, properties, and long-term rentals are just a small supplement.
And now Huayuan Real Estate is really going to "change its life" against the trend, which is related to life and death.
Of course, the first step before changing the name is to get rid of the real estate bunch first.
According to the announcement of Huayuan Real Estate, a general meeting of shareholders will be held on May 20, and it is estimated that the proposal to divest the real estate business will be on the meeting.
Huayuan Real Estate's divestment of real estate is not only the need for transformation, but also the need for shell protection, the stock price has fallen to 1 yuan 1, and if it is not raised, it will step on the red line.
In the past three years (2021-2023), Huayuan Real Estate has lost a total of 6 billion, almost losing all the money it has earned over the past 10 years since its listing, and there is no sign of a rise in the real estate industry in the short term.
The book is also quite ugly, 2.6 billion monetary cash, to pay 3.8 billion short-term borrowings, 8.4 billion non-current liabilities due within one year, and 3.6 billion long-term borrowings.
Therefore, it is not so much about stripping assets as it is about digesting debts and throwing the burden on the parent company Huayuan Group, Huayuan Real Estate can travel lightly.
As for the settlement of the transaction, the announcement said that it was cash rather than the usual issue of shares, and it was clear that this was to bail out the listed company and thus make the book a little fuller.
The fuller the book, the more confidence of shareholders will be, and the higher the chance of winning the shell.
However, the shell can only be guaranteed for a while, and the key is that Huayuan Real Estate must have continuous hematopoietic ability.
Judging from the 2023 annual report, Huayuan Real Estate's business and hotels are profitable, although not much, but at least it can temporarily change the decline of consecutive years of losses.
However, whether the future of commercial and hotel can support Huayuan Real Estate is also full of uncertainty.
Look at Wanda Commercial Management, Wang Jianlin is now in a hurry, and then look at the hotel, Huatian Hotel will have a revenue of more than 600 million yuan in 2023, with a loss of 126 million.
Of course, there are those who make money, such as Jin Jiang Hotel, which will earn 1 billion in 2023.
In other words, although business and hotels can make money, it does not mean that anyone can make money, and divesting assets is only the first step, and Huayuan Real Estate's next means is the key.
As for whether it can be completely "changed", we can only wait for time to prove.