Every personnel farewell of Wu Xiangdong is very long.
On April 5, 2022, China Fortune Land Development Co.Ltd(600340) ( China Fortune Land Development Co.Ltd(600340) , SH; yesterday’s closing price of 4.63 yuan / share) announced that the board of directors received Wu Xiangdong’s resignation and “resigned from the joint chairman, director, member of the strategy committee, CEO and general dismissal of the seventh board of directors for personal reasons”.
Wu Xiangdong, who joined China Fortune Land Development Co.Ltd(600340) in February 2019, announced his departure in April 2021. It remains to be seen how the China Fortune Land Development Co.Ltd(600340) new business led by him will develop.
Wu Xiangdong resigns “the dust settles”
Wu Xiangdong, who has been employed in China Fortune Land Development Co.Ltd(600340) for three years, finally resigned from the above series of positions. Yu Jian, who joined China Fortune Land Development Co.Ltd(600340) before Wu Xiangdong, resigned. He was the former co president of the company and an old subordinate of Wu Xiangdong.
As early as April 2021, there was market news that Wu Xiangdong had joined pengrui real estate; In June of that year, Shenzhen Urban Renewal Management Co., Ltd. under China Fortune Land Development Co.Ltd(600340) was renamed pengrui (Shenzhen) Urban Development Co., Ltd., which was considered by some media as conclusive evidence that Wu Xiangdong had changed his job, but neither China Fortune Land Development Co.Ltd(600340) nor pengrui admitted the news.
Since then, the reporter of the daily economic news has repeatedly asked the person in charge of China Fortune Land Development Co.Ltd(600340) to verify the matter, and the reply is “Wu Xiangdong is still in China Fortune Land Development Co.Ltd(600340) “.
On the evening of February 12, 2019, China Resources Land announced that Wu Xiangdong resigned as the executive director, chairman of the nomination committee, member of the corporate governance committee and member of the Executive Committee of the company due to his personal career development plan. A week later, on February 19, Wu Xiangdong officially joined China Fortune Land Development Co.Ltd(600340) as the CEO and was fully responsible for China Fortune Land Development Co.Ltd(600340) related businesses.
According to public information, Wu Xiangdong joined China Resources Group after graduating from Tsinghua University in 1993 and officially entered China Resources Land in 2005. He was an executive director, chairman of the nomination committee, member of the corporate governance committee and member of the Executive Committee of China Resources Land. Wu Xiangdong has served in China Resources Group for 25 years.
The long-term development pattern of “wurun real estate + Dongxiang real estate” has been formed, and the real estate system of “wurun real estate + Dongxiang real estate” has also led the development of “Dongxiang real estate” in the long run. Wu Xiangdong is to China Resources as Wang Shi is to Vanke. His 25 year career has also deeply engraved the brand of “Wu Xiangdong” on China Resources Land.
Therefore, Wu Xiangdong has the confidence to face the theory of Wang Wen, chairman of China Fortune Land Development Co.Ltd(600340) board of directors. They have their own strengths.
In order to join Wu Xiangdong, China Fortune Land Development Co.Ltd(600340) specially built the South headquarters. The announcement said that “in order to improve the efficiency of the new team, get familiar with the business and put it into work as soon as possible, relying on business development in the future, China Fortune Land Development Co.Ltd(600340) will realize the coordinated Office of the north and South headquarters.”
And, China Fortune Land Development Co.Ltd(600340) offered Wu Xiangdong the highest salary record of A-share executives in that year – 386893 million yuan.
new business didn’t get “good return”
During the China Fortune Land Development Co.Ltd(600340) period, Wu Xiangdong was mainly responsible for new business. He should “explore and develop subdivided fields including commercial complex, public housing, health care and scientific community, implement the layout strategy and enrich the business pattern.”
Lin Chenghong, then director of China Fortune Land Development Co.Ltd(600340) said: “the new business is an absolute increment based on China Fortune Land Development Co.Ltd(600340) original business.”
Wu Xiangdong was also full of ambition.
On April 26, 2020, China Fortune Land Development Co.Ltd(600340) 2019 annual online performance conference, Wu Xiangdong and Chairman Wang Wenwen opened the same frame for the first time in the north and South venues, which is the only time they have opened the same frame so far.
Wu Xiangdong said at the performance meeting: “we should do a good job in the city, good location, good conditions, good products, good services and good returns. We should be the best commercial real estate project in China and eventually become one of the best commercial real estate developers or operators. This is our goal.”
Wu Xiangdong has indeed done a lot. The team with rich commercial development and operation experience brought by China Resources Land shows his determination to do a good job.
In September 2019, China Fortune Land Development Co.Ltd(600340) spent 11.6 billion yuan to win the plot of Binjiang business district in Wuchang, Wuhan, which is the first real trading of Wu Xiangdong after he joined China Fortune Land Development Co.Ltd(600340) the company. In October 2020, China Fortune Land Development Co.Ltd(600340) urban renewal business added shapuwei, Liyuan ZTE project and Zhongtang town Jiangnan project on the basis of the original 11 key projects. Now there are 14 key projects in total. At present, urban renewal business is distributed in Shenzhen, Dongguan and Guangzhou.
In Wu Xiangdong’s words, “I am still confident that the eight selected cities with the highest priority (Development) should be covered.”
At the beginning of 2021, China Fortune Land Development Co.Ltd(600340) “Thunderbolt”, the South headquarters has no new developments, and the new business has become a “gold eater”, and the “good return” Wu Xiangdong hopes is far from being achieved.
According to the semi annual report of China Fortune Land Development Co.Ltd(600340) 2021, the total operating income of its commercial real estate and related businesses is about 77 million yuan, while the operating profit is – 230 million yuan.
“will continue to work in the company”
According to the announcement of China Fortune Land Development Co.Ltd(600340) on April 1, China Fortune Land Development Co.Ltd(600340) existing financial debt totaled 219.2 billion yuan, and the accumulated amount of debt that has not been repaid on schedule so far totaled 40.739 billion yuan (excluding interest). The amount of newly added financial debt contracted to realize debt restructuring is 61.897 billion yuan. Up to now, the cumulative amount of financial debt realized debt restructuring is 104812 billion yuan.
We don’t know how the new business of China Fortune Land Development Co.Ltd(600340) will develop. However, when Wang Wenwen emphasized the need to maintain normal operation in his internal speech at the beginning of 2021, he said: “we have to do what we should do, attract investment, and build and sell peacock city.”
Only no new business was mentioned.
For debt, China Fortune Land Development Co.Ltd(600340) said: “for assets with strong liquidity, the company will actively look for potential investors with strong capital strength and good synergy to sell them, and the recovered funds are mainly used to pay off financial debts.”
Pengrui did take over China Fortune Land Development Co.Ltd(600340) (Shenzhen) urban renewal management Co., Ltd., but no announcement has been made. The introduction of commercial real estate and related business is still on China Fortune Land Development Co.Ltd(600340) ‘s official website.
It is worth noting that China Fortune Land Development Co.Ltd(600340) announced that they would continue to assist in debt restructuring: “after Wu Xiangdong and Yu Jian resigned from the above positions, they will continue to work in the company and continue to assist the company in undertaking the necessary debt restructuring.”
The relevant person in charge of China Fortune Land Development Co.Ltd(600340) told the daily economic news: “Wu Xiangdong will also be responsible for the asset revitalization of China Fortune Land Development Co.Ltd(600340) South headquarters in the future.”
the assets of China Fortune Land Development Co.Ltd(600340) commercial real estate and related businesses are 31.8 billion yuan, which may be the value of Wu Xiangdong’s “will continue to work in the company and continue to assist the company in undertaking the necessary debt restructuring”.
