On the evening of December 27, Taikang system, which became the second shareholder of Yango Group Co.Ltd(000671) as a strategic investor last year, announced the withdrawal of meat cutting and the helpless end of the “century gamble” of nearly 100 billion net profits of both sides over the past decade.
According to Yango Group Co.Ltd(000671) announcement, the company’s shareholders Taikang Life Insurance and Taikang pension plan to reduce the total shares of the company by 7.41% through agreement transfer. On the same day, Taikang pension has reduced 82.8077 million shares through block transactions, accounting for 2% of the company’s total share capital. The total reduction proportion will reach 9.41%, and it will no longer be an important shareholder holding more than 5%. Prior to this, Taikang was a director and had withdrawn from the board of directors.
Recently, Zhu Rongbin, former co president of country garden, who was hired by Yango Group Co.Ltd(000671) with high salary, has shed tears. On December 24, Zhu Rongbin, the executive chairman of Yango Group Co.Ltd(000671) , reduced his 4.5461 million Yango Group Co.Ltd(000671) shares at a “half cut” price, and the loss was close to his three-year annual salary in Yango Group Co.Ltd(000671) .
At present, the Yango Group Co.Ltd(000671) major shareholder Fujian Sunshine Group has materially defaulted on US dollar bonds and announced to withdraw from the rating of Fitch, an international rating giant.
Taikang is a strategic shareholder of nearly 3.4 billion
16 months “waist cut” began to cut meat
On the evening of December 27, Yango Group Co.Ltd(000671) announced that on that day, the company received the notice from the shareholders Taikang Life Insurance and Taikang pension. Taikang Life Insurance and Taikang pension signed a share transfer agreement with Taihe building materials, which agreed that Taihe building materials would transfer Yango Group Co.Ltd(000671) 7.41% of the shares from Taikang Life Insurance and Taikang pension through agreement transfer, with a total of 307 million shares.
The share transfer price is 936 million yuan (including tax). Among them, Taikang Life transferred 185 million Yango Group Co.Ltd(000671) shares, accounting for 4.46% of the total share capital of Yango Group Co.Ltd(000671) ; Taikang pension transferred 122 million Yango Group Co.Ltd(000671) shares, accounting for 2.95% of the total share capital of Yango Group Co.Ltd(000671) .
On the same day, Taikang pension reduced its holdings of Yango Group Co.Ltd(000671) 82807700 non tradable shares through block trading, accounting for 2.00% of the total share capital of Yango Group Co.Ltd(000671) .
In the above two transactions, 9.41% of Yango Group Co.Ltd(000671) shares were transferred, and the price was 3.05 yuan / share. Taikang obtained Yango Group Co.Ltd(000671) shares in September last year at a price of about 6.09 yuan / share, with a total price of nearly 3.4 billion yuan. The transfer price was just “halved”, with a floating loss of nearly 1.7 billion yuan.
After the share reduction, Taikang Life Insurance and its persons acting in concert hold Yango Group Co.Ltd(000671) about 165 million shares, accounting for 3.997% of the total share capital of Yango Group Co.Ltd(000671) . Taikang pension no longer holds Yango Group Co.Ltd(000671) shares. As a result, Taikang has changed from Yango Group Co.Ltd(000671) two shareholders to non important shareholders holding less than 5%.
In fact, the deal was signaled a week ago.
On December 20, Yango Group Co.Ltd(000671) announced that Chen Yilun, a resident director of Taikang, resigned as a director of the 10th board of directors of the company for work reasons and did not hold any other positions in the company after his resignation. It was Chen Yilun and Taikang, another director, Jiang Jiali, who voted against this year’s third quarterly report at the board of directors to make the contradictions between the two sides public.
Statistics show that Chen Yilun is one of the two directors stationed after Taikang strategic investment Yango Group Co.Ltd(000671) . His positions in Taikang include chairman of Beijing Taikang, member of Taikang asset operation and Management Committee and general manager of Investment Management Department of Taikang group. But Chen Yilun’s more important identity is the son of Chen Dongsheng, chairman of Taikang. Taikang, the actual controller, sent his son to be the director of Yango Group Co.Ltd(000671) in person, which shows that he attaches great importance to the investment, but he has no choice but to come out of a double lose outcome.
At the opening of trading on December 28, Yango Group Co.Ltd(000671) shares fell sharply, and once hit the limit in early trading.
end of ten-year 100 billion net profit gambling
Taikang’s entry into Yango Group Co.Ltd(000671) began with a “century gamble” with a net profit of nearly 100 billion in 10 years.
In September 2020, Taikang Life Insurance and Taikang pension signed the share transfer agreement with Shanghai Jiawen investment, the second largest shareholder of Yango Group Co.Ltd(000671) .
In this equity transfer, Shanghai Jiawen cashed out 3.378 billion yuan, while Taikang Life Insurance and Taikang pension obtained Yango Group Co.Ltd(000671) 554.7 million shares and 13.46% equity, becoming the second largest shareholder.
In the share purchase agreement, Yango Group Co.Ltd(000671) holding stock Guangdonghectechnologyholdingco.Ltd(600673) group made many commitments to Taikang Life Insurance and Taikang pension: Based on the net profit attributable to parent company of Yango Group Co.Ltd(000671) 4.02 billion in 2019, the annual compound growth rate of net profit attributable to parent company shall not be less than 15% and the accumulated amount shall not be less than 34.059 billion yuan from 2020 to 2024; From 2025 to 2029, the net profit attributable to the parent company will reach 10.172 billion yuan, 11.190 billion yuan, 12.308 billion yuan, 12.924 billion yuan and 13.57 billion yuan respectively.
That is to say, the total 10-year net profit committed to the parent company in the two stages reaches 94.223 billion yuan. If the performance fails to meet the standard, Yango Group Co.Ltd(000671) must make corresponding cash compensation to Taikang. The length of time and huge amount of this gambling agreement are rare in the industry. When the agreement came out, it was questioned by the market, and there is great uncertainty.
In addition to the performance commitment, sunshine group and its subsidiaries and persons acting in concert shall not reduce their shares of Yango Group Co.Ltd(000671) directly or indirectly in any way; Under the same conditions, Taikang Life and Taikang pension enjoy the preemptive right to reduce their shares. At the same time, both parties also agreed that after Taikang Insurance and Taikang Life Insurance take shares, Yango Group Co.Ltd(000671) will pay cash dividends at least once a year, and the distribution proportion shall not be less than 30%.
The Taikang system, which seems to have taken a big advantage, is now in a huge pit. In addition to the floating loss of shares, from the public data, Taikang system also provides convenience for Yango Group Co.Ltd(000671) in terms of financing, but it is unknown how much capital and risk exposure are involved.
According to Feng Caixun, Taikang lowered the interest rates of several bonds Yango Group Co.Ltd(000671) after taking shares. The interest rate of “18 Yangcheng 02” was lowered from 7.5% to 5.2%; One year after the duration of “19 Yangcheng 01” bonds, the coupon rate was reduced from 7.5% to 5.8%; The coupon rate of “19 Yangcheng 02” decreased from 7.5% to 5.8%; 17 Yango Group Co.Ltd(000671) mtn004 the coupon rate was adjusted from 7% to 6.9%.
star professional managers were also cut leeks
Just three days before Taikang announced its withdrawal this time, Yango Group Co.Ltd(000671) Zhu Rongbin, a star professional manager hired by his family with high salary, also cut meat and reduced his holdings of Yango Group Co.Ltd(000671) shares.
On December 24, Zhu Rongbin, executive chairman of Yango Group Co.Ltd(000671) , reduced his 4.5461 million shares of Yango Group Co.Ltd(000671) through the block trading system of Shenzhen Stock Exchange, cashing out about 15 million yuan.
In order to achieve the scale target of 100 billion yuan, Yango Group Co.Ltd(000671) founder Lin Tengjiao spent a high price to recruit Zhu Rongbin, the former co president of country garden, and Wu Jianbin, the former executive director and chief financial officer of country garden in 2017. After the arrival of “Shuangbin”, it also brought the characteristics of country garden’s high turnover and wide land acquisition to Yango Group Co.Ltd(000671) .
From 2017 to 2018, Zhu Rongbin, who had just assumed his new Yango Group Co.Ltd(000671) , increased his holdings four times, spent about 100 million, and held Yango Group Co.Ltd(000671) 1443 shares, accounting for 0.3564% of the total share capital of Yango Group Co.Ltd(000671) . At that time, the average transaction price was 7.02 yuan / share. Now, Zhu Rongbin has reduced his holdings of 4.5461 million shares, and the average reduction price is only 3.3 yuan / share, less than half of the purchase price.
According to the data of the company’s annual report, Zhu Rongbin’s total salary in 2020 was 6 million yuan, and the floating loss of reducing 4.54 million shares alone reached nearly 17 million yuan, almost Zhu Rongbin’s salary in three years.
To make matters worse, it has been reported in the market recently that from December 2021, Yango Group Co.Ltd(000671) executives collectively voluntarily reduce their salaries and postpone their salaries. It is understood that the adjustment includes Group executives and regional company president level executives. Yango Group Co.Ltd(000671) in response to this, this is a collective voluntary salary reduction for senior executives, and is willing to overcome difficulties with the enterprise.
It is worth mentioning that in order to stimulate the stock price, Yango Group Co.Ltd(000671) after Zhu Rongbin increased his holdings, he also encouraged the company to hold all shares, saying that “only make no loss and major shareholders reveal the bottom”. In September last year, Yango Group Co.Ltd(000671) considered and approved the third phase of the employee stock ownership plan. Through the legal remuneration of employees, self raised funds and advance funds provided by controlling shareholders, it holds a total of 80 million shares, accounting for 1.95% of the total share capital of the company. The transaction price is 6.27 yuan / share. Now it is also in a state of floating loss of more than half.
US dollar debt default
exit from the international rating system
Recently, Yango Group Co.Ltd(000671) major shareholder Fujian Sunshine Group has defaulted on a payment of interest on US dollar bonds due on May 10, 2023. The scale of the US dollar bond is US $300 million, the coupon is 11.875%, and the last interest payment date is November 10, 2021. At present, the 30 day grace period has passed, and the issuer has not paid the due and payable interest.
Prior to this, on December 2, Fitch revoked Yango Group Co.Ltd(000671) “C” long-term foreign currency issuer default rating (IDR), “C” senior unsecured rating and “RR5” recovery rating. The reason is that Yango Group Co.Ltd(000671) has chosen to stop participating in the rating process, Fitch will no longer have enough information to maintain the rating, and will no longer provide rating or analysis reports for Yango Group Co.Ltd(000671) .
Generally speaking, the real estate enterprises that withdraw from the rating mechanism are those that have defaulted on US dollar bonds or delayed payment of interest, and those that do not plan to issue us dollar bonds in the short term. For these two types of real estate enterprises, early withdrawal from the rating mechanism may reduce the negative effects such as bank loan suspension.
Analysts said that after exiting Fitch’s rating, Yango Group Co.Ltd(000671) can temporarily avoid the risk of triggering more defaults due to the rating downgrade, but it is only an expedient measure.
(China Fund News)
