On the afternoon of December 27, Shanghai Shimao Co.Ltd(600823) (600823. SH) held an investor online briefing on the company’s business adjustment. Wu Linghua, the director and President of Shanghai Shimao Co.Ltd(600823) , and Yu Feng, the company’s secretary, exchanged with investors on the recent related party transactions with Shimao service (00873. HK) and the company’s capital.
Previously, on December 13, Shanghai Shimao Co.Ltd(600823) and Shimao Service announced that Shanghai Shimao Co.Ltd(600823) sold property management business and related assets and liabilities to Shimao service for about RMB 1.65 billion. On December 24, Shimao service issued a voluntary announcement that it would continue and further carefully consider the connected transactions previously planned with Shanghai Shanghai Shimao Co.Ltd(600823) and would publish further announcements in due course.
At the investor meeting on December 27, Shanghai Shimao Co.Ltd(600823) management said that This transaction can only take effect after being deliberated and approved by the general meeting of shareholders of the company and Shimao services, so there is uncertainty.
It is revealed that both parties to the transaction agree that after the transaction agreement takes effect, Shimao service shall pay the price for the sale of the underlying equity and the underlying business to the bank account designated by the company in RMB cash by stages:
(1) Shimao service shall pay 95% of the sale consideration, i.e. RMB 1570825000, within 20 working days after the effectiveness of this Agreement;
(2) Shimao service shall pay 5% of the sale consideration, i.e. 82.675 million yuan, within 5 working days after the delivery date.
In just one hour of communication, Shanghai Shimao Co.Ltd(600823) released some positive information to investors. For example, the company’s open market financing has been cashed normally; For the repayment funds of domestic public bonds in January and March 2022, the company will use its own funds and sales proceeds to cash mature bonds. The company will continue to strengthen the management of project sales collection and adjust the liability structure for the repayment of due debts with its own funds.
In terms of company operation, Shanghai Shimao Co.Ltd(600823) has pressure on investors to be honest. From January to November 2021, Shanghai Shimao Co.Ltd(600823) achieved a sales contract amount of about 28.2 billion yuan, and the sales and payment collection work are progressing normally.
Shanghai Shimao Co.Ltd(600823) the management disclosed that they are successively negotiating the sale with investors. As long as there are appropriate business opportunities, the company will strive to seize them.
At the same time, Shanghai Shimao Co.Ltd(600823) the management also disclosed that the 1.65 billion yuan obtained from the sale of assets was not used to repay the debts due in January, but for the development and operation of the commercial complex. Shanghai Shimao Co.Ltd(600823) also disclosed that it is exploring a new business direction: “we found that in the process of asset light business development, there are a large number of opportunities for transformation of in-service projects in the market. This cooperation model requires us to invest some funds in the early stage or cooperate with the owner in the form of whole lease”.
Shanghai Shimao Co.Ltd(600823) pointed out that the first mock exam can build a more stable partnership with the owners, and on the other hand, it can maximize the company’s team’s ideas and capabilities in business transformation and business operation, and at the same time, it has the opportunity to get more substantial returns. Therefore, the transaction funds raised this time will also be invested in the exploration of this cooperative development model in the future.
(21st Century Business Herald)
