Property Service Week Review|Xinyuan Service: Internal control is deficient in system and monitoring

Attention: Sentiment Index

Abstract: Xinyuan Services acknowledges that the survey results revealed deficiencies in internal control systems and monitoring, especially in terms of internal reporting and payment approval processes, as well as seal/basket management.

Xinyuan Services' Independent Findings: There was no evidence that Daniel Zhang was involved in or approved the mortgage of any deposits

On May 10, Xinyuan Property Services Group Co., Ltd. issued a series of announcements, the main contents of which included supplementing the main results of the company's expanded investigation and continuing to suspend trading.

According to the announcement, Xinyuan Services has engaged Deloitte Consulting (Hong Kong) Limited as an independent consultant to conduct an independent forensic investigation into the mortgage matter. The investigation found that from September 2019 to the discovery of the mortgages, Xinyuan Technology and Henan Xinyuan Property opened a total of 32 fixed deposits, of which 24 were used as collateral for the loan financing of eight third-party borrowers outside the group. The investigation found that there was no evidence that the company's founder, Mr. Daniel Zhang, was involved in or approved the mortgage of any deposits.

The Company acknowledged that the results of the investigation revealed deficiencies in the internal control system and control, particularly in the internal reporting and payment approval processes, as well as the management of seals/seals. In response to these issues, the Company has taken a number of enhancement and remedial measures to ensure that internal controls are appropriately strengthened.

Notwithstanding the suspension of trading in the Shares since 16 November 2022, the Company continues to operate its business as usual in all material respects. With regard to the enforcement of arbitral awards, the announcement shows that as of the date of this announcement, the arbitral award has been fully enforced.

Xinyuan Services emphasised that, apart from the disclosures, the other matters identified in the independent investigation did not have a material impact on the company's business operations and development. The Company will actively seek solutions to rectify the situation and safeguard the best interests of the Company and its shareholders.

Qiaoyin shares: The actual controller Liu Shaoyun's retention has been lifted

On May 10, Qiaoyin Co., Ltd. announced that the retention measures of Mr. Liu Shaoyun, the actual controller of the company, had been lifted.

Qiaoyin disclosed that Mr. Liu Shaoyun's family had received the Notice of Lifting of Retention in Custody issued by the Guangdong Provincial Supervision Commission on 10 May 2024. According to the notice, the Guangdong Provincial Supervision Commission lifted Mr. Liu Shaoyun's retention in custody on May 9, 2024.

Nandu Property has three daily limits in four days, and the company has no major undisclosed matters in its self-inspection

On May 10, Nandu Property announced that the deviation of the closing price increase of the company's stock trading from May 8, 2024 to May 10, 2024 for three consecutive trading days has reached 20%, which is an abnormal fluctuation in stock trading according to the relevant provisions of the "Shanghai Stock Exchange Trading Rules". After the company's verification, the company's current production and operation activities are normal, after the company's self-examination and verification with the company's controlling shareholders and actual controllers, as of the disclosure date of this announcement, the company, the company's controlling shareholders and their actual controllers do not involve the company should disclose but did not disclose major asset restructuring, share issuance, acquisition, debt restructuring and other major information. The announcement also pointed out that the company's stock had three daily limits in four days, which attracted the attention of the market. To this end, Nandu Property conducted a self-inspection and communicated with the controlling shareholder and actual controller. The results of the announcement show that the company's current production and business activities are normal, and there are no major matters that should be disclosed but have not been disclosed.

Hongyang Service has entered the tea Baidao intelligent production and processing base and supply chain headquarters

According to the news on May 10, the WeChat public account of Hongyang Service, recently, the Hongyang service team officially entered the tea Baidao intelligent production and processing base and supply chain headquarters to provide customized property services. It is understood that the headquarters of Chabaidao intelligent production and processing base and supply chain is located in Qingbaijiang District, Chengdu, covering an area of about 66 acres, and is a comprehensive service center integrating intelligent manufacturing, deep processing of green products, import and export trade, distribution, research and development, supply chain management and information processing. This time, Hongyang Service will fully take over many aspects such as safety and security, environmental sanitation, and greening maintenance.

Poly Property was granted the right to operate and manage 4 Guangzhou office buildings by Poly Development and other related parties

On May 10, Poly Property disclosed related party transactions and leased four office buildings in Guangzhou to Poly Development and other related parties, namely Poly Tianmu Plaza, Poly Tianmu Plaza West Tower, Poly International Plaza and Guangzhou Poly Center Office Building. Among them, the office building of Poly Tianmu Plaza (Poly Development Plaza) is located on the first basement floor of No. 832 Yuejiang Middle Road, Haizhu District, Guangzhou and No. 33 Chenyue Road, Haizhu District, with a property area of 111,396.34 square meters, and the West Tower office building of Poly Tianmu Plaza is located at No. 826, Yuejiang Middle Road, Haizhu District, Guangzhou, with a property area of 19,752.14 square meters. Poly International Plaza is located at No. 688, Yuejiang Middle Road, Haizhu District, Guangzhou, with a property area of 57,061.26 square meters, and Guangzhou Poly Center is located at No. 5, Linjiang Avenue, Tianhe District, Guangzhou, with a property area of 63,730.88 square meters.

CCCC Services: Fully undertake the property services of the headquarters building of CCCC Second Harbor Engineering Survey and Design Institute

On May 10, it was reported that CCCC Service has recently made new progress in the expansion of the regional market in Central China, and successfully signed a contract to undertake the property service of the headquarters building of CCCC Second Harbor Engineering Survey and Design Institute. It is understood that this cooperation not only promotes the integration of CCCG's internal property resources, but also consolidates the influence of CCCG services in the Central China market. As of April 2024, CCCC Services has signed 147 property service projects, covering multiple regions across the country, demonstrating its rapid progress in the integration of property resources. In the future, CCCC Services will continue to speed up and increase efficiency, work closely with units at all levels of CCCG, and actively explore external markets to increase the density of regional projects and lay a solid foundation for the company's sustainable development.

Wanwuyun: It is expected that it will be re-included as a constituent stock of the Hang Seng Composite Index after the review in the second quarter

On May 10, Wanwuyun held the 2023 annual general meeting of shareholders. Company Secretary Huang Min revealed at the meeting that the company has made positive progress in terms of liquidity. In the past 12 months, the company has failed to meet the liquidity target no more than twice, in line with regulatory requirements. Huang Min also mentioned that the company's turnover rate this year has reached the inclusion standard of the Hang Seng Index, and the average monthly market value of stocks has exceeded the threshold of Hong Kong Stock Connect. According to Huang Min's disclosure, combined with the forecasts of many institutions and the company's self-evaluation, it is expected that Wanwuyun is expected to become a constituent stock of the Hang Seng Composite Index again after the review in the second quarter.

Wanwuyun Zhu Baoquan proposed to transform asset management and commercial enterprise property to build a "butterfly city" model

On May 10, Wanwuyun announced at its 2023 online general meeting of shareholders that Zhu Baoquan, chairman of the company, proposed the transformation of a property service company into an asset management company. Zhu Baoquan pointed out at the meeting that although the company's current focus is on expanding its scale, it is expected to realize the construction of the "Butterfly City" model in the future. When discussing the decline in the gross profit margin of the commercial sector, Zhu Baoquan mentioned that the adjustment of the real estate industry and the frequent change of asset ownership have brought new opportunities for the commercial business of property companies. In addition, Zhu shared his experience of visiting Daiwa Housing in Japan, where the company successfully transformed its business model from property management (PM) to asset management (AM) and facility management (FM) by providing customized development services to landowners, starting from condominium operations.

The 5.6% stake held by Zhou Xuhui, a shareholder of Zhongtian Services, will be subject to judicial auction

On May 9, Zhongtian Service Co., Ltd. issued a suggestive announcement that the shares held by shareholders holding more than 5% of the shares will be auctioned by the judiciary. According to the announcement, shareholder Zhou Xuhui holds 16,390,777 shares of the company, accounting for 5.60% of the company's total share capital, and all the shares will be auctioned. The auction process is currently in the public announcement stage, and the auction will be held on the JD.com judicial auction platform, with a starting date of May 27, 2024 and an expiration date of May 28, 2024. The background of the auction stemmed from a pledged securities repurchase dispute between Caida Securities Co., Ltd. and Zhou Xuhui. The civil judgment of the Hebei Provincial High People's Court has taken effect, and Zhou Xuhui failed to perform the relevant obligations, so the Shijiazhuang Intermediate People's Court ruled to conduct a judicial auction of his shares. Zhongtian Service stated that Zhou Xuhui was not the controlling shareholder or actual controller of Zhongtian Service, and the auction of his shares would not have an impact on the company's control, operation and governance structure.

Ruijing City Services announced the H-share listing intermediary team and pre-selected ABC International as the sponsor

On May 9, Wuxi Ruijing City Service Co., Ltd. announced the pre-winning bidders of the main intermediary teams related to the H-share listing, including sponsors, domestic and overseas lawyers of the company, etc. Among them, ABCI Capital Co., Ltd. was selected as the sponsor and lead underwriter of the H-share IPO of Ruijing City Services. According to Tianyancha data, Ruijing City Service was established in June 2012 and is a company with a registered capital of 460 million yuan, and the legal representative is Mao Yi. The Company's business scope covers municipal solid waste management services, urban construction waste disposal, construction engineering design, etc. Its shareholding structure shows that Wuxi Taihu New Town Development Group Co., Ltd. holds 95% of the shares, and Wuxi Xinshang Investment Co., Ltd. holds the remaining 5%. The actual controller of Ruijing City Service is the State-owned Assets Supervision and Administration Commission of Wuxi Municipal People's Government, and there are 11 foreign investment enterprises.

Hehong Service Shanghai Tongjin Property settled in Kunshan Bacheng "Haijia Mansion" project

On May 9th, Shanghai Tongjin Property of Hehong Service Group officially entered the Haijia Mansion project in Bacheng Town, Kunshan. According to the data, the Haijia Mingdi project is located at No. 406 Tongcheng Road, Bacheng Town, and has been an important local residential community since it was delivered in 2008. The project covers an area of 65,696.36 square meters, with about 700 residents, including about 500 residential and 200 commercial, with a total of six residential buildings, five of which are apartments, and the plot ratio of the community is 42%. The entry of Shanghai Tongjin Property of Hehong Service Group aims to improve the community environment and create a clean, pleasant and safe living space for the owners through the management of a professional team. The project management team established by the company will be committed to on-site coordination and supervision.

Qiaoyin Co., Ltd. won the bid for two major environmental sanitation and greening projects in Chongqing and Guangdong, with a total amount of nearly 90 million yuan

On May 8, Qiaoyin announced that the company had successfully won the bid for two projects related to environmental sanitation and greening and garbage collection and transportation, with a total amount of about 90 million yuan. Specifically, the two projects won by Qiaoyin Co., Ltd. are: the sanitation operation and greening management project located in the built-up area of Fengjie County (Sanmashan Area) in Chongqing City, and the kitchen waste collection and transportation project located in Duanzhou District, Zhaoqing City, Guangdong Province. Among them, the pre-winning bid amount of the sanitation operation and greening management and protection project was 60.98 million yuan, and the pre-winning bid amount of the kitchen waste collection and transportation project was 33.7 million yuan. Both projects will be in service from 2024 to 2027. Qiaoyin has received the Notice of Winning the Bid for the above two projects. This marks the company's new progress in business expansion in the field of environmental sanitation and greening and garbage collection and transportation.

The surplus of investment promotion won the bid for a number of projects in the non-residential sector, covering parks, offices, finance and transportation

On May 8, China Merchants Accumulation announced the good news that it has recently won bids for a series of projects in the non-residential sector, covering parks, offices, finance, transportation and other fields. These include Sunshine Zhiyuan Industrial Park, Sunshine Zero Carbon Center, Beijing Baiwan Center, Dalian Branch of Liaoshen Bank, Yunnan Branch of China Mobile Online, and Shenzhen Metro Line 9 Station Security Service Project. The winning project shows that the comprehensive service capabilities of China Merchants Accumulation in the non-residential field have been recognized by the market. The Sunshine Zhiyuan Industrial Park and Sunshine Zero Carbon Center projects, which will have a gross floor area of 408,000 square meters and 236,000 square meters, respectively, will be provided by China Merchants Jiyu. The Beijing Baiwan Center project is located in the core area of Guangqu New CBD, Beijing, and will provide a number of services including comprehensive property services. China Mobile Online Yunnan Branch Project and Liaoshen Bank Dalian Branch Project, China Merchants Accumulation will also provide a full range of property management and related services respectively. In addition, in the Shenzhen Metro Line 9 station security service project, China Merchants Security Company, a subsidiary of China Merchants Jiyu, will be responsible for maintaining the order and safety of the station.

COPL renewed its contract with Kai Tak Cruise Terminal for another 3 years to seamlessly connect with the existing management period

On May 8, it was reported that China Overseas Property Management Co., Ltd. renewed the contract with Hong Kong's Kai Tak Cruise Terminal to continue to provide comprehensive facility management services including security, cleaning and garden maintenance to the infrastructure. It is reported that this cooperation will be from June 1, 2024 to May 31, 2027, a total of 36 months, seamlessly connecting the existing management period. As a representative project under the long-term management of COPL, the Kai Tak Cruise Terminal has been under the management of the KTC for 11 consecutive years since its opening in June 2013, demonstrating the full recognition and trust of the HKSAR Government in COPL's service of public facilities and management of waterway ports. Once the world's most difficult airport runway to land, the Kai Tak Cruise Terminal is now an important cruise facility in the Asia-Pacific region and is known as the "Cruise Center of Asia". From the former airport to today's water transportation hub, the development of Kai Tak Cruise Terminal is closely linked to the city, and COPL has witnessed every step of its development, insisting on deepening the value of property services and injecting fresh and strong impetus into the city.

Hongying City Services is expected to be listed in Hong Kong on May 17 with an IPO price of HK$3.2-3.6

On May 8, Hongying City Services announced the launch of the IPO process, which is expected to be officially listed on the Hong Kong Stock Exchange on May 17. The company plans to offer 40 million H shares globally, with the Hong Kong public offering accounting for 10% of the total offering and the international placement accounting for 90%. According to the announcement, the offer price for each H share was set at between HK$3.2 and HK$3.6, with a board lot of 1,000 H shares.

Poly Property plans to pay a final dividend of $0.998 per share on July 12

On May 6, Poly Property announced that the company plans to pay a final dividend of 0.998 yuan per share on July 12, 2024.

Nie Liming, chairman of China Merchants Jiyu, resigned due to work transfer, and Lu Bin took over

On May 6, China Merchants Accumulation Industry Operation Service Co., Ltd. issued an announcement announcing that Mr. Nie Liming, chairman of the board of directors of the company, resigned as chairman, director and chairman of the strategy and sustainable development committee under the board of directors due to work transfer, and will no longer hold any position in the company after resignation, and will serve in China Merchants Group Co., Ltd., the actual controller of the company. His resignation shall be effective from the date of delivery to the Board of Directors. According to the announcement, Mr. Nie Liming has made important contributions to the company's strategic implementation, steady operation and improvement of standardized governance during his tenure. As of the disclosure date of this announcement, Mr. Nie Liming did not hold shares of the company. At the same time, on May 6, 2024, the 19th meeting of the 10th board of directors of China Merchants Jiyu deliberated and passed the "Proposal on the Election of the Chairman of the 10th Board of Directors of the Company" (10 votes agreed, 0 votes against, 0 abstentions). According to the needs of work, Mr. Lv Bin was elected as the chairman of the 10th board of directors of the company, and the term of office is from the date of election to the expiration of the 10th board of directors. According to reports, Mr. Lu Bin, Chinese nationality, born in March 1982, has a bachelor's degree. He is currently the chairman of the company, the deputy general manager and chief digital officer of China Merchants Shekou Industrial Zone Holding Co., Ltd., and the general manager of China Merchants Shekou Digital City Technology Co., Ltd. He used to be the executive deputy general manager of Jiangnan region and the general manager of Nanjing office, the general manager of East China and the general manager of Shanghai company, the general manager of East China Asset Management Company, the general manager of Central China and the general manager of Wuhan branch of China Merchants Shekou Industrial Zone Holding Co., Ltd.

Wanwuliang Bank provides property and integrated facility management services to Suzhou Modern Media Plaza

Wanwu Liang announced on May 6 that the Modern Media Plaza in Suzhou Industrial Park, a new urban landmark invested and built by Suzhou Radio and Television Group and shaped like a "big boot", is providing property and comprehensive facility management services by Wanwu Liangxing. According to the data, the modern media square is not only a new carrier of Suzhou's cultural industry, but also a new platform for the development of radio and television and a new space in the business field, with a total construction area of 328,000 square meters, designed by the world's top designer Hiroshi Miyagawa, which has become an important milestone in the development of Suzhou's cultural industry. With rich experience in operation and management and intelligent building management system, Wanwu Liangxing ensures the efficient operation of facilities and equipment around the clock, and at the same time pays attention to every demand contact point of the settled enterprises to provide international standard services. So far, Wanwu Liangxing has provided professional services for many cultural media headquarters such as Beijing Phoenix Center and Shanghai International Media Port, and will continue to work with Modern Media Plaza in the future to help the high-quality development of Suzhou's cultural industry. The Suzhou area of Wanwulianghang is developed in four core cities in Jiangsu Province, with 60 projects under management and a total area of 5.63 million square meters.

COPL won the bid for the pre-property management service project of Xincheng Yaju

On May 6, according to the Qichacha APP, China Overseas Property Management Co., Ltd. won the bid for the pre-property management service project of Xincheng Yaju, with a winning bid amount of 3.2 yuan/㎡/month. The project number is QJ2024ZB-0419001, the agency is Shenzhen Qijun Construction Engineering Consultants Co., Ltd., and other candidate suppliers include Shenzhen Dexinxing Property Environmental Engineering Co., Ltd., Shenzhen Taiyuan Property Management Co., Ltd. and Shenzhen Hezheng Property Services Co., Ltd.