The Bukit urban renewal project, which has attracted the attention of China Baoan Group Co.Ltd(000009) (SZ) investors, seems to be in trouble. On February 25, the company announced that the applicant Shenzhen Huaying Industrial Co., Ltd. (hereinafter referred to as Shenzhen Huaying) applied to Shenzhen intermediate people’s Court (hereinafter referred to as Shenzhen intermediate court) for preservation measures for the property of the company and its subsidiaries worth 671 million yuan.
The reporter of the daily economic news noted that Shenzhen Huaying is a company under China Vanke Co.Ltd(000002) (00000 2, SZ), and its intersection with China Baoan Group Co.Ltd(000009) began with a cooperation around urban renewal projects in 2017.
sued by Vanke subsidiary
According to China Baoan Group Co.Ltd(000009) announcement, the case of the dispute over the contract between the applicant Shenzhen Huaying and the respondent Yuntong logistics industry, Heng’an real estate, Zhongbao holding joint venture and cooperative development of real estate applied to the Shenzhen Intermediate Court on January 25 to take security measures for the property worth 671 million yuan under the respondent’s name. In accordance with relevant regulations, the Shenzhen intermediate court sealed up and frozen the land use rights, bank deposits, equity and other enforceable properties under the name of the respondent Yuntong logistics industry, Heng’an real estate and Zhongbao holdings, and the preservation amount was limited to 671 million yuan.
According to qixinbao, Shenzhen Huaying was founded in September 2017 with a registered capital of 50 million yuan. Shenzhen Vanke Development Co., Ltd. (hereinafter referred to as Vanke Development) holds 55% of the shares and is its controlling shareholder. Vanke development is a China Vanke Co.Ltd(000002) holding subsidiary.
Earlier, China Baoan Group Co.Ltd(000009) announced in November 2017 that Yuntong logistics industry, Heng’an real estate, Zhongbao holdings and Shenzhen Huaying signed the cooperation agreement on urban renewal project of Yuntong area of Buji street, Longgang District to jointly promote the urban renewal project of Yuntong area of Buji street, Longgang District, Shenzhen (i.e. Buji urban renewal project).
The announcement revealed that the Buji urban renewal project is located at the intersection of Bulong road and Jinyun Road, Buji street, Longgang District, Shenzhen. It is located in the demolition and reconstruction area of the 13th five year plan for urban renewal of Longgang District. The temporarily designated demolition land area is 139700 square meters. The above ground buildings are mainly warehouses. According to relevant government plans, the project is planned as an independent dy01 unit in the central area of Buji, with the leading functions of emerging industries and housing.
According to the agreement, Shenzhen Huaying will be responsible for the leadership of the government application and approval procedures involved in the later stage of Buji urban renewal project; Shenzhen Huaying gives corresponding compensation to Yuntong logistics industry and Heng’an real estate; Shenzhen Huaying is also responsible for the demolition compensation of other equity parties of the project, the application for urban renewal and other government approval procedures, as well as the project investment, design, construction and sales.
Since then, listed companies have successively disclosed a number of project progress announcements, the most recent of which was disclosed at the end of December 2018. China Baoan Group Co.Ltd(000009) at that time, it was said that Yuntong logistics industry and Heng’an real estate had received the first and second contract deposits paid by Shenzhen Huaying, but had not received the third deposit. The parties were communicating on the promotion of cooperation and subsequent arrangements.
At first, Shenzhen Huaying was a subsidiary of CITIC Real Estate (Shenzhen), and CITIC Real Estate (Shenzhen) also participated in the signing of the agreement. In July 2018, Vanke Real estate became the controlling shareholder of Shenzhen Huaying. In response to the changes in the equity structure of Shenzhen Huaying, China Baoan Group Co.Ltd(000009) said in reply to investors’ inquiries in June 2019 that the main contents of the agreement have not changed significantly, and the parties are still communicating on the promotion of cooperation and subsequent arrangements. In the 2021 semi annual report, China Baoan Group Co.Ltd(000009) indicates that the Buji urban renewal project is still in progress.
However, the appearance of the above-mentioned civil ruling has made the outside world notice that the progress of Buji urban renewal project is not smooth.
\u3000\u3000 “Up to now, the company and its subsidiaries have not received other civil pleadings, evidence materials, notice of response and other documents related to this civil ruling, nor have they inquired about the judicial freezing and sealing up of land use rights, bank deposits and equity of its subsidiaries. The impact of this civil ruling on the operating performance of the company in this year and future fiscal years is still unknown Judgment. ” 00000 9 {means 00000 9}.
The performance of real estate business is mediocre
The cooperation dispute with China Vanke Co.Ltd(000002) subsidiary is undoubtedly an epitome of the development of China Baoan Group Co.Ltd(000009) real estate business. At present, China Baoan Group Co.Ltd(000009) mainly involves three fields: high-tech industry, biomedical industry and real estate industry. Among them, the pillar of high-tech industry is beiteri New Materials Group Co., Ltd., one of the leading enterprises of lithium battery cathode materials, and the pillar of biomedical industry is “Chinese time-honored brand” Mayinglong Pharmaceutical Group Co.Ltd(600993) (600993, SH). According to the company’s 2021 semi annual report, its business related to high-tech industry has a good growth momentum, but the performance of real estate business is flat.
In the first half of 2021, the sales revenue of China Baoan Group Co.Ltd(000009) real estate business was 1.051 billion yuan, a year-on-year increase of 138.41%, but the total profit was only 125 million yuan, a year-on-year decrease of 36.25%, resulting in the phenomenon of “increasing income without increasing profit”.
In the semi annual report, China Baoan Group Co.Ltd(000009) mentioned the policy and market risks of the real estate business. The company said that in recent years, in order to guide and promote the sustained and stable growth of the real estate industry, the government has significantly strengthened the macro-control of the real estate market, and the general tone of real estate policy regulation “no speculation in real estate” has been reiterated; The financing channels of the real estate industry have been continuously tightened, the “three red lines” have been set up for the financing loans of real estate development enterprises, the amount of housing loans has been reduced, and the real estate regulation policies have been continuously upgraded, which will have a certain impact on the operation of real estate enterprises.
