Author | Xie Mei bath
Edit| Fu Ying
Source | Unicorn Finance
At the end of March this year, Wang Jianlin and others came to 60 billion yuan to "replenish blood".
Dalian Wanda Commercial Management Group Co., Ltd. (hereinafter referred to as "Dalian Wanda Commercial Management") formally signed an investment agreement with PAG Investment Group and CITIC Capital, under which the five investors jointly invested about 60 billion yuan in Dalian Xindameng Commercial Management Co., Ltd. (hereinafter referred to as "Xindameng"), holding a total of 60% of the shares, and Dalian Wanda Commercial Management held 40% of the shares.
On the other hand, Dalian Wanda Group Co., Ltd. (hereinafter referred to as "Dalian Wanda") passively lost its position as the major shareholder of Centennial Life Insurance Co., Ltd. (hereinafter referred to as "Centennial Life").
On May 8, Centennial Life successfully increased its capital by 110 million yuan, and at the same time, Dalian Rongda Investment Co., Ltd. (hereinafter referred to as "Dalian Rongda") transferred its 800 million shares of Centennial Life to Dalian State-owned Financial Capital Operation Co., Ltd. (hereinafter referred to as "Dalian Jinyun").
As a result, the shareholding structure of Centennial Life was reshuffled. Dalian Jinyun holds 11.51% of the shares of Centennial Life Insurance and has become the largest shareholder; Dalian Wanda, the former largest shareholder, retreated to second place.
The vicissitudes of the world are like white clouds and dogs, and Centennial Life, which once made many real estate capitals love, became insolvent at the end of the first quarter of 2023, with net assets of -420 million yuan. In addition, Centennial Life has been rated C in its last two composite risk ratings.
The financial assets that were once carefully laid out are now in trouble, but Wang Jianlin can only watch from the sidelines. The entry of Dalian state-owned assets into the house at this time has become the "hope" of Centennial Life to get out of the predicament.
1
Wanda Group's capital chain is under pressure,
There is no time to take care of Centennial Life
In 2009, Centennial Life was approved to be established, headquartered in Dalian, is the first Chinese-funded life insurance legal entity in Northeast China, at that time its founding shareholders lineup luxurious, including state-owned enterprises, private enterprises, Hong Kong-funded enterprises, Liaoning billionaire Sun Xishuang, Zhejiang richest woman Zhou Xiaoguang are the private enterprise bosses behind Centennial Life.
After the establishment of Centennial Life, although it faced continuous losses, it still could not prevent many real estate companies from joining it by increasing capital and shares, and Wang Jianlin was the most famous.
In June 2014, Dalian Wanda acquired 100 million shares of Centennial Life in the hands of Guodian Power (600795.SH) at a price of 122.5 million yuan, accounting for 4.2% of the total share capital at that time, becoming one of the major shareholders of Centennial Life. In January 2015, it took over the era of Wanheng (600241. SH) 100 million shares of Centennial Life, representing 2.8% of the total share capital at that time.
In September 2015, the registered capital of Centennial Life increased from 3.53 billion yuan to 7.795 billion yuan. By the end of 2015, Dalian Wanda had become the largest shareholder of Centennial Life.
Source: Canned Gallery
In fact, Wanda was once regarded as the "lucky star" of Centennial Life, and after its ownership, Centennial Life turned losses into profits and maintained profitability for 7 years.
Specifically, from 2015 to 2021, the net profit of Centennial Life was 32 million yuan, 207 million yuan, 351 million yuan, 697 million yuan, 223 million yuan, 802 million yuan, and 588 million yuan respectively.
But in 2022, Centennial Life lost 2.71 billion yuan, and in the first quarter of 2023, the company continued to lose 1.05 billion yuan. At the same time, Centennial Life's net assets in 2022 plummeted by 7.8 billion to 323 million yuan, and by the end of the first quarter of 2023, it was insolvent, with net assets of -420 million yuan.
In terms of investment income, the return on investment of Centennial Life in 2022 will be 4.13%, down 1.55 percentage points year-on-year, and the comprehensive return on investment will be 2.15%, down 2.87 percentage points year-on-year. At the end of the first quarter of 2023, the investment return and comprehensive investment return of Centennial Life were 0.87% and 1.05%, respectively.
In the first quarter of 2023, Centennial Life's core solvency adequacy ratio was 64.43%, a decrease of 12.73% from the fourth quarter of 2022. According to Centennial Life's forecast, its core solvency adequacy ratio will fall again to 55.48% in the second quarter of 2023.
So far, Centennial Life has not disclosed its solvency report for the second, third and fourth quarters of 2023, and its last two comprehensive risk ratings have been rated C. As a result, China Bond Credit and United Credit terminated the credit ratings of Centennial Life and "19 Centennial Life" in December 2023.
It is worth mentioning that the solvency report for the first quarter of 2023 shows that among the 17 shareholders of Centennial Life, 10 of the shares held by Centennial Life have been pledged and frozen, with a total of 5.069 billion shares pledged, accounting for 65.03% of all shares, including 900 million shares held by Dalian Wanda.
Source: Centennial Life Solvency Report
In the past year, Wanda Group has also been under a lot of financial pressure.
In 2023, Dalian Wanda Commercial Management will increase revenue without increasing profits, with operating income of 52.325 billion yuan, compared with 49.314 billion yuan in the same period of 2022, and net profit of 8.511 billion yuan, compared with 12.499 billion yuan in the same period of 2022.
In 2023, the cash flow generated by the company's operating activities will increase significantly, from 9.686 billion yuan in 2022 to 26.065 billion yuan.
Source: Dalian Wanda Commercial Management's 2023 annual report
However, the bond report shows that as of the end of 2023, Dalian Wanda Commercial Management's consolidated interest-bearing liabilities are 131.606 billion yuan, of which 23.727 billion yuan are interest-bearing liabilities due within one year, and there is a certain debt pressure. In addition, due to the impact of the lack of recovery of refinancing channels in the open market and the slower than expected progress in the listing of its subsidiary Zhuhai Wanda, bond prices have further fluctuated, making it more difficult to refinance in the open market.
2
Selling assets to "quench your thirst",
Wang Jianlin may still be busy with "second entrepreneurship"?
As a financial asset, Centennial Life was also pinned on by Wang Jianlin.
"I have great expectations for the financial group, and I think the biggest value of Wanda in the future is this sector." Back in 2015, Wanda, which was actively transforming at that time, had great ambitions for the financial industry, and Wang Jianlin once boasted that the total market value and revenue of Wanda Finance would surpass Wanda Culture and Wanda Commerce.
However, as the peak of debt repayment approaches, since the second half of 2017, the "Wanda series" has started the mode of "selling, selling, selling", and Centennial Life is also included in the sale plan.
At the end of 2018, real estate giant Greentown China (3900. HK) announced that its company intends to acquire 900 million shares of Centennial Life Insurance from Dalian Wanda for 2.718 billion yuan, accounting for 11.55% of the latter's shares, becoming the largest shareholder, but the transaction was eventually abandoned.
It is worth mentioning that in August 2021, in order to seek listing, Zhuhai Wanda, a subsidiary of Dalian Wanda Commercial Management, introduced 22 institutional investors, including PAG Investment Group, Tencent, Ant and Zheng Yutong families, and signed a VAM agreement with the investors.
By the end of 2023, Zhuhai Wanda, which had submitted its prospectus for the fourth time, failed to go public, which meant that the VAM agreement it signed with investors in 2021 ended in failure, deepening Wanda's financial pressure.
According to the statistics of the self-media "Red Star Capital Bureau" under the "Chengdu Business Daily", as of March 27 this year, Wanda has sold 15 Wanda Plazas, including Shanghai Songjiang, Shanghai Jinshan, Suzhou Taicang, Guangzhou Luogang, Xiamen Dianqian Wanda Plaza and other high-quality assets located in the core area.
Source: Canned Gallery
At the end of March this year, Wanda and others came to 60 billion yuan to "replenish blood", Dalian Wanda Commercial Management and PAG Investment Group, CITIC Capital and other formal investment agreements, five investors jointly invested about 60 billion yuan in Dalian Xindameng Commercial Management Co., Ltd., a total of 60% of the shares, Dalian Wanda Commercial Management held 40% of the shares.
However, as of May 12, the list of shareholders of Sundar Alliance on the industrial and commercial information has not changed.
This fund did not reassure Wang Jianlin, and the "Wanda system" continued to sell assets.
According to industrial and commercial data, the current shareholders of Beijing Wanda Plaza Industrial Co., Ltd. (hereinafter referred to as "Beijing Wanda Plaza Industrial") are Kunhua (Tianjin) Equity Investment Partnership (Limited Partnership) and Kunyuan Chenxing (Xiamen) Investment Management Consulting Co., Ltd.
After the equity penetration, New China Life Insurance Co., Ltd. and CICC Capital Operation Co., Ltd. hold 99.99% and 0.01% of the shares of Kunhua (Tianjin) Equity Investment Partnership (Limited Partnership) respectively.
Previously, the wholly-owned shareholder of Beijing Wanda Plaza Industrial Co., Ltd. was Dalian Wanda Commercial Management Group.
It is understood that Beijing Wanda Plaza Industry used to be known as Beijing Wanda Plaza Real Estate Development Co., Ltd., which developed Wanda's first CBD project, Beijing Wanda Plaza.
In addition, an affiliated entity of Dalian Wanda Group has reached an agreement to sell yacht maker Sunseeker International Ltd. to Miami-based Lionheart Capital and Milan-based Orienta Capital Partners, according to people familiar with the matter, which is expected to close in the second quarter of this year.
Source: Canned Gallery
In addition to selling assets, Wang Jianlin seems to have signs of "second entrepreneurship".
In November last year, Beijing Huanju Commercial Management Co., Ltd. (hereinafter referred to as "Beijing Huanju Commercial Management") signed a cooperation agreement with Tai'an Urban Development and Investment Co., Ltd. on the cultural tourism and fitness center project, and Wang Sicong attended as the chairman of Beijing Huanju Commercial Management.
At that time, Li Xin, President of Beijing Huanju Commercial Management, said that Beijing Huanju Commercial Management has become the only trendy entertainment and scene operation company in China that focuses on immersive experience.
According to Sohu's self-media "Focus Finance Focus", the news that Wang Jianlin and his son want to create a "new Wanda" spread.
On April 18 this year, Wang Jianlin replaced Dalian Wanda Commercial Management and became the sole shareholder of Zhuhai Wanda Ruichi Enterprise Management Co., Ltd. (hereinafter referred to as "Zhuhai Wanda Ruichi").
According to industrial and commercial data, Zhuhai Wanda Ruichi's business scope includes enterprise management consulting, enterprise management, social and economic consulting services, as well as information consulting services, property management and non-residential real estate leasing.
3
The original shareholders "huddled" to retreat,
Dalian state-owned assets become a "handle"
Outside of being hung aside by Wang Jianlin, many shareholders who favored Centennial Life in the past also have the intention of retreating.
In July 2019, China Aoyuan (3883. HK) announced that it will acquire a 13.86% stake in Centennial Life Insurance for 3.261 billion yuan in cash, and the sellers are Dalian Urban Construction Group, Dalian Qianhao Kunshi Real Estate and Dalian Guotai Real Estate. In January 2020, the acquisition was terminated.
On October 31 last year, 400 million shares of Centennial Life Insurance were put on the shelf, with a starting price of 692 million yuan, and no one finally took over, and the 400 million shares are still pledged by Shin Kong Holding Group Co., Ltd. in Xiamen International Bank Co., Ltd. Shanghai Branch.
At present, it is Dalian state-owned assets that extend a helping hand to Centennial Life. On May 8, Dalian Jinyun increased its capital by 110 million yuan to Centennial Life, with an additional share ratio of 1.39%; At the same time, Dalian Rongda, a wholly-owned subsidiary of Dalian Jinyun, the second largest shareholder of Centennial Life, transferred 10.12% of the shares of Centennial Life to Dalian Jinyun free of charge, and after the completion of the transfer, Dalian Jinyun will hold a total of 11.51% of the shares of Centennial Life.
As the original largest shareholder of Centennial Life, Dalian Wanda's shareholding ratio dropped to 11.39%, retreating to second place.
According to public information, Dalian Jinyun is a professional platform for the investment, operation and management of municipal state-owned financial capital, which was officially unveiled on August 18, 2022.
It is understood that on the day of the unveiling, Dalian Jinyun signed a strategic cooperation agreement with China Development Bank, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, Postal Savings Bank, Dalian Branch of Shanghai Pudong Development Bank and Bank of Dalian and Dalian Rural Commercial Bank, and 10 banking institutions provided about 14 billion yuan of credit support.
In fact, before the Dalian state-owned assets with a strong background made a move, Centennial Life also played a set of self-help "combination punches".
The first is the personnel change. In February 2021, He Yongsheng, the former chairman of Centennial Life, announced his resignation, and at that time, it was rumored that Liu Zhaohui, the "old general" of Dalian Wanda, would serve as the chairman, but his qualifications have not been approved. In the 2022 annual report of Centennial Life, Liu Zhaohui is an executive director.
Source: Canned Gallery
On November 1, 2023, the Dalian Supervision Bureau of the State Administration of Financial Supervision disclosed an announcement approving the qualifications of Wang Xinhao as chairman and director of Centennial Life.
Wang Xinhao came from the banking industry and served as the general manager of the asset management department, the general manager of the customer manager department and the general manager of the corporate banking department of the Dalian branch of Everbright Bank. At the age of 33, Wang Xinhao joined Shanghai Pudong Development Bank until January 2023, when Wang Xinhao, as vice president and chief financial officer of Shanghai Pudong Development Bank, resigned due to organizational transfer.
One month after Wang Xinhao became the chairman, Centennial Life reviewed and approved the "Proposal on the Company's Capital Increase and Share Expansion and Change of Registered Capital Plan" at the fourth extraordinary general meeting of shareholders in 2023.
In addition, in July 2021, Shan Yong, the former president of Centennial Life, resigned, and Sun Xiaohong served as the interim head of the company from July 6, 2021; A few months later, Yu Weihong was adjusted again, and Yu Weihong was appointed as the interim head of Centennial Life from December 16, 2021.
In June 2023, it was reported that Dai Wenhao, deputy general manager of CPIC Life Insurance, joined Centennial Life and proposed to be the president, and Dai Wenhao has now served as the deputy secretary of the Party Committee of Centennial Life.
On the other hand, Centennial Life has reduced its holdings in a number of listed companies to withdraw funds.
According to Wanfeng Aowei (002085. SZ) announced that from April 24 to April 29, Centennial Life reduced its holdings of 9 million shares of Wanfeng Aowei at an average price of 14.88 yuan per share, with a reduction ratio of 0.42% and a cash amount of about 134 million yuan.
In addition, as of the first quarter of 2023, Centennial Life's long-term equity investment shares, including Jiaze New Energy (601619. SZ) and Macalline (601828.SH, 1528.HK).
Source: Centennial Life Solvency Report
On November 2, 2018, according to the announcement issued by Jiaze New Energy, due to the completion of the liquidation and cancellation of Ningxia Kexinyuan Mining Investment Co., Ltd., Centennial Life allocated 98,305,900 shares of Jiaze New Energy, with a shareholding ratio of 5.0857%. As of the third quarter of 2023, the number of shares held by Centennial Life in Jiaze New Energy has not changed, but the shareholding ratio has decreased to 4.04%.
According to Macalline's 2023 annual report, Centennial Life's products have withdrawn from the top ten shareholders of Macalline, and at the end of the period, its ordinary account, credit account holdings and refinancing loans have not yet returned 12,544,600 shares.
On January 8 this year, as a holding of Victory Precision (002426. SZ) 272 million shares, Centennial Life plans to reduce its holdings of the company's shares by centralized bidding no more than 34,415,100 shares. The shares to be reduced were acquired through a non-public offering in 2016, and the reason for the proposed reduction was based on the asset allocation needs of Centennial Life and related investment decisions.
In his New Year's speech, Wang Xinhao said that in 2023, Centennial Life successfully achieved the business goals of the annual original premium and value standard protection plan, and continuously optimized the business structure, successfully achieved the correction of capital contribution in the first year, and effectively improved the company's operation and management capabilities on the liability side and asset side.
Wanda "let go", but Centennial Life is trying to turn the situation around, do you think state-owned aid can make Centennial Life "out of trouble"? Welcome to leave a message in the comment area to discuss.