Recently, Gree Real Estate, a local listed company in Zhuhai, announced that it intends to make major adjustments to the original restructuring plan, and will sell the assets and liabilities corresponding to the real estate development business in Shanghai, Chongqing, Sanya and other places, and place no less than 51% of the equity of Zhuhai Duty Free Group.
▲Gree Real Estate announcement
It is reported that the first restructuring plan was submitted in May 2020, and after several adjustments, the original restructuring plan was: Gree Real Estate purchased 100% of the equity of Zhuhai Duty-free Enterprise Group Co., Ltd. (Zhuhai Duty-free Group) by issuing shares and paying cash, and planned to raise matching funds through non-public issuance of shares to no more than 35 specific targets.
The latest plan is: Gree Real Estate intends to place the assets and liabilities corresponding to the relevant real estate development business in Shanghai, Chongqing, Sanya and other places and the relevant external debts of listed companies, and place no less than 51% of the equity of Zhuhai Duty Free Group, if there is a valuation difference, it will be made up in cash.
As a new outlet for consumption, the duty-free industry is also a franchise industry, with only 8 duty-free licenses in the country, of which Zhuhai Duty Free has one of them.
Zhuhai Duty Free is one of the first wholly state-owned companies approved by the State Council to carry out duty-free sales, mainly engaged in duty-free sales and taxable commercial operations.
It is reported that Zhuhai Duty Free Group occupies the core window of the entry and exit ports of Zhuhai, Hong Kong and Macao, and the port duty-free shops basically cover more than 80% of mainland tourists entering Macao.
This means that Gree Real Estate is gradually withdrawing from real estate development and focusing on the development of duty-free industries.
▲Location map of the port plot
It is understood that as early as 2021, Zhuhai Tailian Real Estate Co., Ltd. won the land for the construction of the Hong Kong-Zhuhai-Macao Bridge Zhuhai Port - Business Supporting Zone project with a total transaction price of about 880 million yuan, and Zhuhai Tailian Real Estate Co., Ltd. is a wholly-owned subsidiary of Zhuhai Gree Real Estate Co., Ltd.
The site is used as an office space for self-use duty-free business and cross-border logistics and cross-border e-commerce, and the duty-free industry of Zhuhai Port of the Hong Kong-Zhuhai-Macao Bridge is developed.
At present, the real estate developed by Gree Real Estate in Zhuhai includes Gree Coast, Gree Plaza, Pingsha No. 9, Pingsha No. 9 Plaza, Gree Camphor, Yufeng Meizhu, Haiyunju and Gemini.
According to the annual report, Gree Real Estate has suffered a cumulative loss of 2.8 billion yuan for two consecutive years, following Huayuan Real Estate and Midea Real Estate, Gree Real Estate also announced its withdrawal from the real estate development business. Gree Real Estate abandons housing to engage in business, focusing on duty-free business, whether it can turn around, it is worth paying attention to.