According to the financial associated press on the 12th, country garden service has acquired all shares of Zhongliang property. At present, the two sides have signed relevant acquisition agreements. According to informed sources, both sides are relatively satisfied with the price.
In fact, Zhongliang property has been “associated” with country garden for a long time. After the news of this acquisition, some people in the industry joked that “country garden service has acquired its own imitator”.
Specifically, Zhongliang real estate can be described as “deep love” for country garden, including but not limited to the appointment of senior executives of country garden department; Imitate country garden, take a piece of land every three days and enter a new city every month; Comprehensively learn the “456” high turnover mode of country garden, that is, the opening in 4 months, the cash flow back in 5 months, the secondary investment of funds in 6 months, and the de conversion rate of sales area within one month after the initial promotion.
Thanks to this, the sinking business of Zhongliang real estate in 2016 impacted 100 billion real estate enterprises and was listed after eating a wave of policy dividends of third, fourth and fifth tier cities, and left a legend of “five times the sales in three years” in the Jianghu. However, unlike country garden, Zhongliang real estate is facing rising total liabilities after running wild.
According to the data, in 2020, the contractual liabilities of Zhongliang real estate reached 120.909 billion yuan, up 4.35% from 115.873 billion yuan in 2019. Insiders have said that the listing of the property company under Yang Jian, the actual controller of Zhongliang real estate, in Hong Kong also means to solve the difficulties of the real estate sector at a certain level.
This time, Zhongliang took the initiative to pull the “Idol” into his camp. On April 29, 2021, Zhongliang Baiyue Zhijia Service Co., Ltd. submitted a prospectus at the Hong Kong stock exchange. In order to improve the operation efficiency and management ability of enterprise value-added service business, Zhongliang Baiyue Zhijia specially introduces Country Garden Property Hong Kong as the enterprise strategic investor.
In terms of its cooperation mode, on March 30, 2021, Country Garden Property Hong Kong acquired 679 shares of Zhongliang Baiyue Zhijia service for HK $240 million, accounting for about 6.24% of the issued share capital of the company. On April 20, the registered capital of Shanghai Zhongliang increased to 130 million yuan.
On the basis of incomplete clarity of the company’s share capital, even if only the issued share capital of the company is calculated, the valuation of Zhongliang Baiyue Zhijia service has reached HK $3.839 billion. So far, in less than three years, Zhongliang Baiyue Zhijia service has not only achieved high business growth, but also soared its valuation by more than 700 times.
On May 6, 2021, the two sides jointly established Shanghai Liangbi Technology Service Co., Ltd. Tianyancha information shows that the registered capital of Shanghai Liangbi technology service is 10 million yuan, and the legal representative is Liu Tiantian. Its business scope includes property management, planning and design management, professional design services, etc. Among them, Zhongliang property holds 51% and country garden service holds 49%.
On December 23, 2021, after about eight months, the Hong Kong Stock Exchange passed the listing hearing of Zhongliang Baiyue Zhijia, a property management company of Zhongliang holdings. According to the latest information of the Hong Kong stock exchange, as of June 30, 2021, Zhongliang Baiyue Zhijia has 291 projects under management and 508 projects under contract management. The total construction area under management is about 33.2 million square meters, the total construction area under contract is about 71.2 million square meters, and 56.1% of the construction area under management is located in changsanjiao. In the first half of 2021, its revenue was 663 million yuan, a year-on-year increase of 207.3%; The net profit was 106 million yuan, a year-on-year increase of 307.7%.
From this point of view, if the transaction goes smoothly, the area under management of country garden services will increase by 33.2 million square meters. According to Sinolink Securities Co.Ltd(600109) statistics, Country Garden Service successively acquired property companies such as Blu ray Garbo service, R & F property and neighborhood music Holdings (core assets of color life) in 2021, becoming the largest buyer in the property acquisition and M & a market that year. These three mergers and acquisitions alone will bring at least 280 million square meters of under management area for country garden services, equivalent to 75% of its under management scale by the end of 2020.
According to the performance report of country garden service, as of the half year of 2021, the total area of charge management is about 644 million square meters, and the total area of contract management is about 1.205 billion square meters. In the first half of the year, 182 million square meters of toll management area and 300 million square meters of contract area were added.
As for why Zhongliang transferred the property management enterprise after the listing hearing, some insiders believe that it may be related to the recent reconstruction of the pattern of the real estate industry, its capital situation is not optimistic and eager to realize, so as to solve the difficulties of the real estate sector.
It is understood that the centralized repayment pressure of Zhongliang is not small. In the first month of 2022, Zhongliang holdings also staged a plot of “layoffs at the front and debt repayment at the back”. On January 16, Zhongliang Holdings said that due to the adjustment of the company’s structure, the relevant functions of the holding group headquarters will be integrated with the real estate group headquarters. It is reported that the number of layoffs involved in this round of layoffs of Zhongliang holdings is about 300. Subsequently, Zhongliang announced on the 17th that it had repaid the US dollar bonds due on January 31 in advance, so as to inject confidence into the market.
However, according to the data, as of the end of June 2021, the asset liability ratio of Zhongliang holdings after excluding advance receipts was 79.3%; Net debt ratio 56.1%; The ratio of unrestricted cash to spot lending is about 1.2. Stepping on a red line is a “yellow” real estate enterprise. In terms of total debt, at the end of June 2021, Zhongliang holdings had interest bearing liabilities of 54.6 billion yuan, of which the debt due within one year was 23.2 billion yuan, accounting for 42%, which shows that the company has great pressure on centralized repayment before June 2022.
In addition to the debt mentioned above, the “implicit debt” of Zhongliang holdings can not be ignored. Since 2017, the net debt ratio of Zhongliang Holdings has declined rapidly and fell below the “red line” in 2018. The company once explained that “the rapid decline of debt ratio is due to the stripping of some assets by the group, the increase of total equity and profit, and the retention of high-quality assets.”
On January 28, S & P also lowered the long-term issuer credit rating of Zhongliang holdings from “B +” to “B”. It believes that Zhongliang holdings will face increasing liquidity pressure in the next six months due to the tightening of financing channels and the slowdown of sales.
