On April 7, Hefu brilliant Group Holding Co., Ltd. (hereinafter referred to as "Hefu brilliant") announced that after the trading session on March 31, Hefu brilliant and Poly Developments And Holdings Group Co.Ltd(600048) entered into an agreement involving transformation, including proposed restructuring, Poly Developments And Holdings Group Co.Ltd(600048) no longer holding any equity in Hefu China and property agency transactions.
It is reported that Hefu China is an indirect non wholly-owned subsidiary of Hefu brilliant, mainly engaged in providing property agency services. As of April 7, 2022, Hefu China is owned by Hefu investment and Poly Developments And Holdings Group Co.Ltd(600048) with 56.1% and 43.9% equity respectively. Hefu brilliant is an investment holding company, and its subsidiaries are mainly engaged in providing first-hand and second-hand property agency services and financial services in China. Poly Consulting Group is mainly engaged in property agency and consulting services. At present, it is wholly owned by Hefu China.
After the reorganization, Hefu China will become a wholly-owned subsidiary of Hefu brilliant, and the member companies of poly Consulting Group will no longer be a subsidiary of Hefu brilliant.
The announcement pointed out that the business of poly Consulting Group will gradually stop operating by performing all outstanding contracts or transferring to a third party to undertake, sell assets, arrange manpower, liquidate the rights and liabilities of creditors and take all other necessary actions determined by the contracting party. After the transformation is completed, Hefu contracting party and poly contracting party will arrange that Poly Developments And Holdings Group Co.Ltd(600048) no longer hold 43.9% equity of Hefu China by transferring equity to Hefu investment (or other member companies of Hefu brilliant) or reducing equity of Hefu China.
It is worth mentioning that in terms of property agency transactions, Poly Developments And Holdings Group Co.Ltd(600048) has promised Hefu contracting parties that Poly Developments And Holdings Group Co.Ltd(600048) will sell Poly Developments And Holdings Group Co.Ltd(600048) real estate development projects with a property value of no less than 80 billion yuan every 12 months after the effective date, and enter into a primary agency business contract with Hefu contracting parties or their designated group member companies for a period of five years.
Hefu brilliant said that after the completion of the cooperative restructuring in 2018, the company and Poly Developments And Holdings Group Co.Ltd(600048) have made every effort to jointly promote the comprehensive integration of Hefu China and its subsidiaries (including poly Consulting Group). However, based on the differences between the company and Poly Developments And Holdings Group Co.Ltd(600048) in business culture, organizational structure and operation mode, the company and Poly Developments And Holdings Group Co.Ltd(600048) failed to reach a comprehensive consensus on all aspects of integration (including the business, employee compensation and management system of Hefu China group and poly Consulting Group).
At the same time, Hefu brilliant believes that the company has obtained most of the value of relevant cooperation, and further integration will not create additional value or assist the group's long-term strategy. However, by changing the cooperation mode in the form of proposed restructuring, Hefu China and poly consulting group can fully achieve growth value and explore synergy benefits of new businesses, such as property agency transactions.
In addition, according to the announcement, Hefu brilliant has applied to the stock exchange for shares to resume trading on the stock exchange from 9:00 on April 8. Previously, the trading of Hefu brilliant shares has been suspended on the stock exchange since April 1, 2022, pending the publication of this announcement.
