The second generation is being kicked out by capital

Wind and financial news depth

2024-05-28 10:18Published on the financial account of Beijing Phoenix.com

Source: Fengcai News

It is easy to make money, but it is difficult to keep money, this sentence must be deeply understood for the "second generation" who grew up with a golden spoon. Otherwise, you may be the first to be eliminated in the capital game.

In the real estate thunderstorm in recent years, the replacement of the old and the new is actually a wave of capital game and wealth change. And the first batch of "second generations" who failed to compete with capital have been forced to leave the table.

Zhang Kangyang lost control of Inter

The rich second generation is hunted by capital?

Inter Milan, the "toy" that Zhang Kangyang was once most proud of, is also regarded as an important achievement in the development of internationalization, and now he must endure the pain.

Recently, Suning disclosed that it lost control of Inter Milan due to its failure to repay the principal loan of 275 million euros provided by Oaktree Capital on May 21. This also means that Zhang Kangyang will hand over the position of president of the Inter Milan club.

As the son of Zhang Jindong, the founder of Suning, Zhang Kangyang is regarded as the second generation of Suning, and after the Suning thunderstorm, he once took over important positions and work within the group. For Inter Milan, Zhang Kangyang also tried to refinance international capital at a high interest rate to repay the arrears of Oaktree Capital, but to no avail.

It all needs to go back to 2021. Inter, which was affected by the epidemic and the suspension of the European Super League, lost 246 million euros, the highest in the history of Serie A clubs.

At that time, Suning Group, the major shareholder, was also mired in liquidity problems, and the possibility of blood transfusion for the sports industry was almost zero. In the end, Zhang Kangyang brought in Oaktree Capital, the world's largest non-performing asset fund, to "renew the life" of Inter.

Oaktree Capital has provided Suning with a three-year, 12% annual interest rate of €275 million in financing, secured by Inter's stakes, with a series of restrictions.

The "threat" is hidden in the restrictive clause -

For one, if Inter are sold, Oaktree Capital will receive 20% of the difference between Inter's estimate and the sale price.

However, in April 2023, Zhang Kangyang was sued by CCB Asia, demanding that it repay the arrears of principal and interest totaling 320 million euros. According to foreign media, the overseas prosecution of domestic official financial institutions has made it difficult for Zhang Kangyang to gain the trust of foreign investment institutions, and no one in Inter dares to take over.

Second, if a third-party institution intervenes in the transaction between Suning and Oaktree Capital, Suning will need to pay a fine of 50 million euros in addition to the principal and interest of the loan. At the moment when Suning is struggling with liquidity, this almost blocks the possibility of Zhang Kangyang refinancing Inter.

The former "white knight" showed his bloodthirsty fangs three years later, and Zhang Kangyang's capital game with Wall Street vultures ended in defeat.

Xu Shitan's liquidation and delisting

The highlight of real estate enterprises was punctured by capital

In addition to Zhang Kangyang, Xu Shitan was sued by CCB Asia. The second generation, who took over the position of president of Shimao Group very early and participated in the actual helm, also fell into the dilemma of keeping money.

May 15 is the last trading day of Shimao shares in A-shares. This veteran listed real estate company, which entered the market in 2000 and has been on the market for nearly 25 years, finally ended with a closing price of 0.43 yuan per share. Xu Shitan, as the son of Xu Rongmao, was sent to the hot search, and his reputation was mixed for a while.

In fact, Xu Shitan is one of the more successful second-generation successors among real estate companies, and during his tenure, Shimao Group's sales exceeded 100 billion yuan, becoming one of the leading enterprises of domestic private real estate enterprises.

However, high leverage is also accompanied by debt. According to the financial report, by the end of 2023, Shimao Group's total liabilities will be about 492 billion yuan. With the "quick freezing" of the real estate industry, Shimao Group, which is carrying a heavy burden, thundered in July 2022.

In the adjustment cycle of the real estate industry, the scale of the increase through capital was finally punctured by capital. The "gold fathers" also instantly turned into fierce creditors.

For example, on April 5, 2024, Shimao Group was petitioned for winding-up by CCB Asia in Hong Kong, involving financial obligations amounting to approximately HK$1.58 billion. The reason for this is that CCB Asia is rumored to be dissatisfied with Shimao's debt restructuring plan.

Affected by this, Shimao Group, Shimao shares and other related stocks continued to plummet, until a week later, Shimao shares completely fell below the safety line of 1 yuan per share and entered the list of delisting.

Now Shimao Group, the "generation" has to personally appear to take responsibility, and self-help has not stopped. On May 27, the entire floor of the 63rd floor of Hong Kong's Central Center, which was privately held by Xu Rongmao, was purchased for HK$730 million, and the price per square foot was only HK$27,800, which was more than 4% lower than the peak.

He Jianfeng's money game

"Capital" is also afraid of being eaten back?

Some second generations are chosen by capital, and some second generations choose to become capital. But when it comes to risk, everyone is equal.

In 2004, He Jianfeng, the son of He Xiangjian, the founder of Midea Group, sold his two home appliance foundries of Jinke Electric Appliance and Hyundai Industry to Midea Group, cashed out 70 million yuan, and left to found Infore Group, officially opening the capital map.

In the following 20 years, He Jianfeng became the major shareholder of E Fund through mergers and acquisitions and other capital means, and held Infore Environment (000967. SZ), Baina Qiancheng (300291. SZ), Gujia Home Furnishing (603816. SH) three listed companies, and its business is involved in many fields such as consumption, environment, culture, asset management, and technology.

According to wind data, as of June 30, 2023, the total assets of Infore Group reached 57.6 billion yuan. However, in recent years, He Jianfeng's capital map has also been full of twists and turns.

On Labor Day in 2024, the movie "There Is No Thing That Can't Be Solved by a Hot Pot" produced by Baina Qiancheng (formerly Hualu Baina) and starring Yang Mi has become the only movie that has been withdrawn.

Another "Journey Through the Moon" also received a mediocre response, and the TV series "Gentlemen of the East Eighth District" was complained about being "greasy".

Since Infore Group became a shareholder in 2018, the net profit loss attributable to the parent company has not improved significantly. By the end of 2023, the loss reached 1.86%. The net profit attributable to Infore Environment, another key listed platform, also continued to decline.

It is an inevitable trend for the real estate generation to gradually fade out, and the "second generation" will also come to the front of the stage more and more. But when they inherit the wealth of their parents, they also have to bear the pressure of sitting at the table.

Of course, as long as you are still at the table, there will be a win if you lose. However, the world is changing, and the financier and the creditor may only be in a moment, and the most feared thing is that they will lose their qualifications to the table.

Produced by|Phoenix Net Wind Financial News Author|Chen Wenli Editor|Wang Tingting