【Editor's Note】 Ten thousand horses galloping, the tide surging in Foshan. In the past five years, more than 70 foreign housing enterprises have run into the market, and there are many brand housing enterprises, both through foshan to lay out the Greater Bay Area, and there is no shortage of newly promoted Jianglong to attack the city. Whether it is the local Cantonese, Fujian, Beijing, Zhejiang, or Chongqing, here we have to speak with strength and products. The series of "Crossing the River and Entering the Buddha" will try its best to restore the vivid survival history of Foshan by foreign factions of housing enterprises. In this issue, we will bring the "Fujian head real estate enterprise" - the story of Foshan floating and sinking in Sunshine City.
The protagonist of the second issue: Sunshine City
Faction: Min
Base: Fuzhou
Founded: 1995
Joined Buddhism: 2016
"This is not a Project of Sunshine City?" "It became a sole proprietorship of Poly." In 2021, Sunshine City quietly withdrew from the Zhenyue project of Chen Village in Shunde, which is only one year away from last year's high-profile land acquisition.
Frequent joint venture development, good at high turnover of Fujian Sunshine City, stationed in Foshan for 5 years, has developed and participated in as many as 8 projects, in the market cold market, sunshine city in Foshan and what is the story?
Sunshine City profile picture
In 2016, the low-key first entered the big lily
In 2016, China's property market policy warm wind frequently blowing, popular cities riding on the east wind to destock, Foshan property market also ushered in a super outbreak, and then in October of that year, it restarted the regional purchase restriction, but with the advantages of the development of Guangzhou-Foshan city, as well as the good economic foundation of the manufacturing industry, Foshan property market is still infinitely optimistic.
Among the brand housing enterprises that rushed to be stationed in Foshan that year, a number of housing enterprises in the Yangtze River Delta led the way, and many of them chose foshan for the first stop in the Pearl River Delta. According to leju's incomplete statistics, in addition to Sunshine City's first entry into Foshan that year, there were also brand housing enterprises such as Sunac, Greentown, Xuhui, Xincheng Holdings and Taihe, which openly took land to enter Foshan.
First of all, in March, Taihe broke into Foshan with a total price of 3.725 billion yuan, and won the huge Mac plot of 120,000 yuan in Foshan New Town, equivalent to a floor land price of 7741 yuan / ㎡, refreshing the previous "5-character head" record, the premium rate was as high as 72%, and the subsequent development was developed into Taihe Foshan Yard, which once broke out of the siege with a luxury housing circle.
Near the end of the year, that is, in November, Greentown and Wharf won the second "limited land price, competitive construction" plot in Foshan, when the transaction price was 1.736 billion + 69,300 square meters of construction area, and finally set a record high with a floor price of 16632 yuan / ㎡, as the first son of Greentown into South China is not high-profile, the follow-up development for Greentown Guiyu Lanting, leading a wave of Qicha International Community "high-rise + stacked villas" high and low trend.
Compared with the above two, the same as the Fujian enterprise Sunshine City is obviously much more low-key, in June of that year the first into the Pearl River Delta region, although the same choice in Foshan, but only spent 108 million to seize the South China Sea Dali a case of less than 5,000 square meters of mini land, followed by the development of Sunshine City Wenlan Pavilion, the next year into the market coincided with the "limited sale, limited contract" and other policies, only more than 130 sets of goods, the market did not set off too much waves.
List of developments in Recent Years in Sunshine City Foshan
Twice into the top ten sales of Foshan real estate enterprises
Sunshine City's large-scale expansion in Foshan began in 2017, and three major projects were successfully added in one year, such as in March, Sunshine City increased its capital and expanded its shares to bid for 51% of the equity of Shunde Lihe Zhide Science and Technology Park, that is, lihe Sunshine Cloud Valley Project; and in December, Sunshine City was developed into Sunshine City Lijing Mansion in Gaoming Yanghe.
The most important thing is that Sunshine City acquired Shanghai Xinye for 3.984 billion yuan, received a total of 6 commercial land in Foshan Shanghai, and won 336,800 square meters of commercial and residential land in Chancheng Green Island Lake in one fell swoop, with an inventory valuation of at least 5.4 billion yuan at that time, and successively contributed five projects such as Phase I/Phase II of Green Island Lake, Green Island Lake One Mansion, Sunshine City Tanyue, Foshan Peninsula, etc., covering high-rise bungalows, apartments, large flats, villas and other products, with an overall volume of more than one million square meters.
With this project, Sunshine City has also quickly gained a foothold in Foshan, and its performance has also ushered in a big explosion. According to the data of Kerui Guangfo Region, 2019-2020 ranked among the top ten in the sales amount of Foshan real estate enterprises for two consecutive years, and reached its peak in 2019, ranking eighth among Foshan real estate enterprises with an equity amount of more than 6.2 billion.
After this, the expansion of Sunshine City has slowed down significantly, and if it is included in the Longguang Jiulongfu (Gaoming) project, only four new projects have been added in four years, with an average annual increase of one project, in addition to the sole-proprietorship development of Sunshine City Feili Binjiang in Jiujiang, or in conjunction with KWG Taifu or poly, all of which are joint venture development.
However, as the development of the Green Island Lake plot is coming to an end, coupled with the withdrawal of the Chen Cun project, sunshine city currently for sale in Foshan only two real estate projects remaining in Foshan Peninsula and Sunshine City Feili Binjiang, the impact on performance is also "immediate", in the first half of 2021, the sales amount of equity in the Foshan area of Sunshine City is only 1.494 billion, falling to the 18th place in the sales list of Foshan real estate enterprises.
"High turnover" sequelae? Find new growth points
Sunshine City, a Fujian-related real estate enterprise that came out of Fujian, once fully enjoyed the dividends brought by the high turnover model.
According to the official website, Sunshine City was born from the world's top 500 Sunshine Holdings, and its main business covers real estate development, commercial operation, property services, urban renewal, etc. In 2020, Sunshine City achieved sales of 218 billion yuan, ranking 15th in China's real estate in terms of comprehensive strength.
However, many of the "sequelae" brought about by the extremely high turnover in the past few years are also evident in Sunshine City: there are many product quality problems and safety accidents.
In April this year, Foshan TV revealed that the Green Island Lake Yingyue Villa (i.e. Green Island Lake No. 1) purchased by viewers for more than 8.4 million yuan had serious quality problems, and it was not an isolated phenomenon.
XiaoQiang hotline reported
As early as two years ago, Sunshine City successfully crossed the threshold of 200 billion yuan and is currently slowing down its development pace. In the stock era, the scale of real estate development business has peaked, and Sunshine City, which has introduced Taikang's war investment and signed a VAM agreement, needs to find new profit growth points.
At the performance meeting at the beginning of this year, Zhu Rongbin, executive chairman and president of Sunshine City, said that Sunshine City formulated the company's development plan for the next ten years, and in the first five years, it adhered to the main track of real estate and continued to make the main business bigger and stronger.
In the second five years to expand the second track of Sunshine City, a new track may be born in terms of residential consumption upgrades, new urbanization, new infrastructure, home technology and other aspects. He also said that he would enter the second track before the speed of the first track to achieve a scale leap.
Refuse to "lie flat"! Sunshine City is actively self-help
Under the severe real estate industry situation, Sunshine City fell into a short-term liquidity crisis, and the recent "anti-eye" was earlier than the second shareholder Taikang, and institutions such as Dagong International and Oriental Jincheng have downgraded the company's rating, and the subsequent bonds and notes are about to mature and will face the most direct test.
Looking back at the evening of October 28, Sunshine City released three quarterly report data showing that sunshine city achieved operating income of 41.332 billion yuan in the first three quarters, an increase of 8.59% year-on-year; net profit attributable to the parent company was 2.912 billion yuan, an increase of 6.23% year-on-year.
From the performance point of view, the first three quarters of the overall positive growth. However, two key performance indicators showed significant contractions: net profit of only 86.7 million yuan, down about 97% from the same period last year; in the third quarter, Sunshine City's net loss attributable to shareholders of listed companies after deducting non-recurring gains and losses was 1.752 billion yuan.
This also directly led to two directors, Chen Yilun and Jiang Jiali, representing Taikang Insurance, voting against the third quarter report of 2021 and asking the management of Sunshine City to make a reasonable explanation for the deterioration of the company's operation.
Statement of objections by some directors to the Company's Third Quarter 2021 Report
In this regard, Sunshine City said that the company's operation is normal, in the face of short-term difficulties, the company will take all measures to ensure sales, promote payment, and tide over the difficulties.
It is worth mentioning that the recent changes in bonds in the real estate industry, Sunshine City has also repurchased overseas dollar bonds many times to convey confidence to investors. As of now, although the pressure of concentrated redemption of short-term bonds is relatively large, there has been no substantial default event in the Sunshine City open market.
Compared with the performance of other housing enterprises that have already suffered substantial defaults, Sunshine City has recently announced a debt extension plan, which intends to exchange offers for its 3 US dollar bonds, and is still actively seeking the consent votes of investors, and Lin Tengjiao, the actual controller of Sunshine City, has promised to fully guarantee the 3 US dollar bonds of Sunshine City.
As of now, Sunshine City still has 8 US dollar bonds, with a total outstanding amount of 2.262 billion US dollars, about 11.47 billion yuan. Even if the revision is successful, within November, Sunshine City still needs to pay more than 2.5 billion yuan of domestic debt.
Sunshine City has a list of 8 US dollar bonds
Author: Wu Bisheng Editor/Reviewer: Leju Seven Cousins
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Source: Leju Finance
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