Chen Jinsong, founder of the World Union Bank: We will not be trapped in love, and we will optimize the shareholder structure and organizational structure

The Surging News reporter Liu Chang

Shenzhen World Union Bank Group Co., Ltd

"Not to end 2020, we are restarting the future." On December 9, 2020, Chen Jinsong, founder and co-chairman of Shenzhen World Union Bank Group Co., Ltd. (World Union Bank, 002285.SZ), a comprehensive real estate service provider, wrote to his colleagues.

Due to the successive transfer of assets, the World Union Bank, controlled by the State-owned Assets Supervision and Administration Commission of Zhuhai, received a letter of concern from the management department of the small and medium-sized board of the Shenzhen Stock Exchange on December 9.

A day earlier, the World Union Bank had announced two asset transfers. First, the World Union Bank intends to transfer its 31.43% equity interest in Shanghai Gengying Information Technology Co., Ltd. for 255 million yuan to Tianjin Ruiting Real Estate Brokerage Co., Ltd., a subsidiary of 58 Co., Ltd. The Shenzhen Stock Exchange asked the World Union Bank to explain the specific reasons for the transfer and the pricing basis.

Second, Shenzhen Shilian Microfinance Co., Ltd., a wholly-owned subsidiary of the World Union Bank, intends to transfer the credit assets with a net book value of 799.68 million yuan to Urumqi Zhuoqun Chuangzhan Equity Investment Partnership (Limited Partnership) for 806.31 million yuan. The Shenzhen Stock Exchange asked the World Union Bank to explain the source of funds for Zhuo Qun Chuangzhan and pay attention to the payment of 30% of the total transfer price of the first installment on the date of the letter of reply (December 16), and the proposed collection protection measures.

According to the content of the announcement, the transfer of Shanghai More Win to withdraw from the new housing sales platform is a move by the World Union Bank to focus on its business; the transfer of Shenzhen small loans is to return funds and reduce the debt ratio.

After the failure of the merger with Tongce Real Estate Consulting Co., Ltd., the introduction of Zhuhai State-owned Assets Supervision and Administration Commission and the surrender of control, as Chen Jinsong said in the letter, 2020 for the World Union Bank is not only the end of an era, that is, the end of a comprehensive exploration period for the future; it is also the restart of a new era, that is, a clear and firm strategy towards the restart of focusing on "transaction agency + asset management services". Zhuhai Dahengqin (Zhuhai Dahengqin Group Co., Ltd., which is 100% owned by zhuhai STATE-OWNED ASSETSAC), strategically invested in and actually controlled the World Union Bank, which made the two-wheel drive strategy of the World Union Bank have a solid support and model.

"The new board of directors of the World Union Bank has approved McKinsey's strategic planning and basic implementation path for the Next Five Years for the World Union Bank, clarifying the Bank's new mission vision for the future: to 'improve the efficiency and experience of real estate transactions and empower the continuous improvement of asset value' as the mission, to become a leader in China's integrated real estate services." In order to implement this strategic plan, the Bank will optimize the shareholder structure, optimize the business model, optimize the asset structure, and optimize the organizational structure to meet China's urbanized and larger real estate integrated service market. ”

As the founder, Chen Jinsong has a deep affection for the World Union Bank, but he still has many expectations for the future, "not trapped in love, not afraid of the future". In the letter, Chen Jinsong explained his understanding of the future "real estate transactions and asset management": 1. The two main battlefields for large transactions: the market pattern of affordable housing and commercial housing is constantly balanced; 2. The geographical pattern of the commercial housing market is gradually dominated by central cities and urban agglomerations; 3. The demand pattern of the market for agency service providers to "reduce costs, improve efficiency, and help obtain land"; 4. The whole chain service requirements pattern from property management to "empowering the value of urban assets".

The Shenzhen Stock Exchange's letter of concern, the former awaits further clarification by the World Union Bank, while the latter raises more questions.

According to public information, Zhou Xiaohua, the managing partner of Zhuo Qunchuang Exhibition, and Liang Xing'an, the general partner, are both veterans of world union small loans, both of which withdrew from world union small loans in April 2019 and are still working in many companies under the world union bank.

According to the announcement, Zhuo Qun Chuangzhan was established in 2007 and engages in equity investment in unlisted enterprises, holding shares of listed companies by subscribing for non-public shares or transferring shares.

In 2019 and 2020, as of the end of September, Zhuo Chuangzhan had no operating income, but the total assets increased from 34.93 million yuan on December 31, 2019 to 72.588 million yuan, and the net profit increased from 23.32 million yuan to 63.89 million yuan.

According to the payment arrangement, Zhuo Chuangzhan paid 30% of the total price of the transfer of credit assets in the first phase, paid more than 100 million yuan within 2 working days from the effective date of the agreement, paid more than 100 million yuan within 7 working days from the effective date of the agreement, and paid 40.3154 million yuan by March 31, 2021; the remaining 70% of the price was paid in three installments within 3 years. Pay $240 million by September 30, 2021, $240 million by September 30, 2022, and $80,630,700 by September 30, 2023.

The World Union Bank said that it had examined the financial situation and credit status of Zhuo Qunchuang Exhibition, and the board of directors of the World Union Bank believed that the transferee had the corresponding payment ability and the transaction risk was controllable.

Editor-in-Charge: Liu Xiuhao

Proofreader: Ding Xiao