Author丨Chen Shamo.
Editor丨Zhang Weixian.
Source丨Visual China.
After re-signing the agreement with the investors, the crisis of Wanda Commercial Management's listing VAM agreement was temporarily lifted. However, Lu Zhiqiang, who once rushed to Wanda's aid, and the "Oceanwide System" he built did not wait for good news.
ST Oceanwide (Oceanwide Holdings) recently announced that the interim administrator of the company's pre-reorganization period, Beijing Zhong Lun Law Firm, was found after investigationAs a listed company, Oceanwide Holdings no longer has the possibility of reorganization, and applied to Beijing No. 1 Intermediate People's Court to terminate the pre-reorganization procedure of Oceanwide Holdings.
The termination of the pre-reorganization procedure, coupled with the negative net assets attributable to shareholders of the parent company in the third quarter of this year, made the company face the risk of forced delisting in the financial categoryOr join the camp of delisted real estate companies.
But strictly speaking, Oceanwide Holdings is no longer a real estate company. In 2020, its industry classification was changed from "real estate" to "finance", and in that year, the proportion of revenue from the real estate industry fell to 1519%。The "Oceanwide system" often referred to by the outside world also mainly refers to the financial sector.
As early as the beginning of 2014, Oceanwide Holdings started the transformation from a single real estate enterprise to a comprehensive company covering finance, real estate and other businesses. Since then, Oceanwide has implemented a series of bold investments in the financial sector. At its peak, Oceanwide Holdings' total assets exceeded 200 billion yuan.
However, it was this transformation that laid the groundwork for Oceanwide's subsequent crisis.
Transformation
As the helmsman of the "Oceanwide Department", Lu Zhiqiang was born in Weihai, Shandong Province in 1952 and started his business in 1985. In 1998, Lu Zhiqiang's Guangcai Business Investment Group was listed on the backdoor. Since then, after the change of equity, the company's abbreviation has changed from Guangcai Construction to Oceanwide Construction.
Real estate was once Oceanwide's main business. By 2013, Oceanwide Construction's real estate sales revenue was RMB584.4 billion yuan, the company's projects are distributed in Beijing, Wuhan, Shanghai, Shenzhen, Hangzhou, Qingdao, Dalian and Los Angeles and other domestic and foreign cities.
At the beginning of 2014, the board of directors of Oceanwide Holdings made a decision on the strategic transformation and development of the company, transforming from a single listed real estate company to a comprehensive holding listed company covering finance, real estate, strategic investment and other businesses, and the company name was also changed to Oceanwide Holdings.
Since then, Oceanwide has continued to purchase financial assets.
In 2014 alone, Oceanwide acquired about 73% of the shares of Minsheng ** (later the shareholding ratio once reached 87.).65%), initiated the establishment of CMIG, a private investment platform company, and participated in the capital increase of Minsheng Trust, a trust platform under the major shareholder, indirectly holding 25% of the equity. In the Hong Kong market, Oceanwide Holdings acquired Li Ka-shing's Hutchison Ganglu 7136% equity, which was later known as China Oceanwide Holdings.
In 2015, Oceanwide Holdings acquired the Hong Kong-listed company CASH Financial Services Group***4071% equity and not more than 178.5 billion yuan to acquire part of the equity of Min'an Property Insurance and enter the insurance industry.
In 2016, Oceanwide invested 7.5 billion yuan to increase its holdings in Minsheng Bank, and invested in the establishment of Minsheng Financial Services Holdings, and increased the capital of Minsheng Bank.
In just three years, Oceanwide has been involved in banking, trust, insurance and other industries, and the financial sector has begun to take shape.
Lu Zhiqiang's return to the stage also shows the determination of Oceanwide Holdings to develop the financial field. In January 2014, Lu Zhiqiang's term of office as chairman of Oceanwide Construction expired, and Han Xiaosheng took over for a period of three years. But just over a year later, in May 2015, Lu Zhiqiang was re-elected as chairman. At the same time, a number of senior executives from banking, insurance and other financial backgrounds have joined the board of directors.
The new board of directors has adjusted the organizational setup of Oceanwide Holdings, and set up 11 functional management departments and 8 industrial group headquarters. Among them, the eight major industrial groups cover Internet finance, insurance, trust banking, capital investment, electric power, real estate development and real estate investment management. At that time, when Chinese enterprises were "going overseas", Oceanwide also increased its overseas assets, and successively acquired real estate projects in Los Angeles, Hawaii and other places in the United States, as well as power plant projects in Indonesia, Genworth, and IDG.
In the process, Oceanwide has reduced its new investment in the domestic real estate sector.
From the perspective of revenue scale and composition, Oceanwide's transformation has been successful. In 2014, the revenue of real estate business accounted for more than 75% of total revenue, and the proportion of financial business was 204%。In 2017, the revenue of the financial sector surpassed that of the real estate sector for the first time. By 2020, the proportion of real estate business revenue has dropped to 1519%。
From 2014 to 2020, Oceanwide Holdings' revenue scale increased from 80800 million yuan increased to 140600 million yuan.
Step into the air
"Luxury" acquisitions also come with high prices. Since its transformation in 2014, Oceanwide Holdings' total liabilities have risen rapidly and reached 1,836 at the end of 2018700 million yuan. Although Oceanwide's assets exceeded 200 billion that yearHowever, its asset-liability ratio remains above 80%.
In 2017, the real estate and financial industries with Oceanwide layout are facing changes in the policy environment. At the beginning of that year, real estate regulation deepened, and market transactions cooled subsequently. At the same time, with the crackdown on various financial chaos, strict regulation has become a theme in the financial sector and has continued until 2018.
At this time, the financial situation of Oceanwide Holdings also had problems.
Affected by the policy environment, the net cash flow generated by Oceanwide Holdings' fundraising activities decreased significantly by 74 in 20172%。By the end of that year, Oceanwide Holdings' short-term liabilities (due within one year) were about 33.5 billion yuan, and the company's cash flow was only 18 billion yuan.
Complete one's misery. Stepping on the 8 billion yuan fake ** case of Wuhan Jinhuang Jewelry has exacerbated the difficulties of Oceanwide and is also considered to be the fuse of the company's debt crisis.
In May 2020, Minsheng Trust received the test results of Wuhan Jinhuang Jewelry Pledge**An 83-ton fake ** case was uncovered. Jinhuang Jewelry has obtained a total of about 20 billion yuan of financing from financial institutions by virtue of these fake ** with gold plated on the surface and copper alloy inside, of which Minsheng Trust involves 407.4 billion yuan.
Under the pressure of many parties, Minsheng Trust and other trust institutions involved made advances to investors, which also led to the provision of about 25The credit impairment loss of 200 million yuan accounted for 56 percent of its total profit1%。
Combined with the provision for impairment of some overseas projects and goodwill, the income of Wuhan real estate projects affected by the epidemic did not meet expectations, and foreign exchange losses, Oceanwide Holdings turned from profit to loss in 2020.
In addition, Minsheng Trust has also "stepped on the pit" many times, and encountered a series of events such as the "Carrot Chapter Incident of China Construction Fifth Bureau", the overdue bonds of Xinhualian, and the default of Baoneng Trust.
In addition to the short-term factor, the profitability of Oceanwide's financial business is not ideal. For example, from 2019 to 2020, the insurance business was its largest revenue**, but the gross profit margin of this business was respectively. 82%, which is much lower than other business segments. In the following two years, the indicator was negative.
At the beginning of 2021, the livelihood wealth of Oceanwide Holdings could not be redeemed when it expired, and a thunderstorm was announced.
In order to alleviate the financial pressure, Oceanwide Holdings began to regain its assets very early.
At the beginning of 2019, Oceanwide Holdings gave Sunac the No. 1 plot of Beijing Oceanwide International Residential Area and the Shanghai Dongjiadu project, which had been "covered" for more than ten years. But a discerning person can see at a glance that the return of funds is its more urgent need.
At the beginning of 2021, a project in Wuhan was transferred for a total price of 306.6 billion yuan. In addition, Oceanwide Holdings will also invest in Zhejiang projects and a number of overseas projects**.
Financial assets are also **. Take Minsheng, which is regarded as "the best quality financial asset under Oceanwide", as an example, due to the 12600 million yuan of debt is overdue, and in March this year, Oceanwide Holdings held Minsheng **347.1 billion shares were listed on the foreclosure platform, with a starting price of about 586.5 billion yuan, and finally Guolian Group won 910.5 billion yuan. Superimposed on the previous active behavior, as of the end of June this year, the proportion of Minsheng's shares held by Oceanwide Holdings has dropped to 3123%。
In addition, the shares of financial assets such as Minsheng Trust and Minsheng Bank held by Oceanwide Holdings have also been actively or passively carried out.
Cost
Real estate has strong financial attributes. After the implementation of the transformation, Oceanwide's financial business has been existing as a capital pool for the real estate business. Since the second half of 2021, the real estate market has entered a period of deep adjustment. Although the scale of Oceanwide's real estate business is not large, it is still affected and leads to the default of financing of related parties.
A lawsuit disclosed in April 2022 made the bond transaction between Oceanwide Holdings and Minsheng Trust public.
As the trustee of Oceanwide Holdings Trust Plan, Minsheng Trust purchased the principal of the three bonds of "20 Oceanwide 01", "20 Oceanwide 01" and "20 Oceanwide 02" with a total principal of 1984.4 billion yuan. Among them, "20 Pan Control 01" is only issued to qualified institutional investors, and the other two are private placement bonds.
Due to "performance reasons", Minsheng Trust required Oceanwide Holdings to repay the principal and interest of the three bonds in advance and exercise the right to pledge the equity, and required China Oceanwide and Lu Zhiqiang to bear joint and several liabilities for repayment. At present, the litigation is progressing to "enforcement".
Minsheng Bank is also involved. On January 20 this year, the Beijing branch of Minsheng Bank announced that due to a dispute over a financial loan contract, it filed a lawsuit against Wuhan Center Building Development and Investment *** Wuhan ** Business District Co., Ltd. *** Oceanwide Holdings, and Lu Zhiqiang, vice chairman and non-executive director of Minsheng Bank.
According to Minsheng Bank's 2023 semi-annual report, as of the end of June, its loan balance from Oceanwide Group and its affiliates was 2119.4 billion yuan, which is the largest among all related party loans. Among them, the above two Wuhan companies totaled 701.8 billion yuan failed to fulfill the repayment obligation as agreed in the contract.
Oceanwide does have risks, and Minsheng Bank has adopted the strategy of consolidating creditor's rights and reducing exposure, and adding collateral and guarantees to the existing business. Yuan Guijun, vice president of Minsheng Bank, said at the performance meeting in March this year.
In October, the Beijing Financial Court ordered the Wuhan ** Business District Company to repay the loan principal of 304.6 billion yuan and the corresponding interest, overdue penalty interest, compound interest, etc.
The above are only some of the lawsuits filed by Oceanwide Holdings from related parties, and Oceanwide Holdings also has a large number of lawsuits from non-related parties. As of November 28 this year, in addition to the litigation and arbitration cases that have been disclosed, Oceanwide Holdings and its holding subsidiaries have accumulated a total of about 5 in litigation and arbitration in the past 12 months6.3 billion yuan, accounting for 1030%。
Oceanwide Holdings said that due to the impact of major lawsuits, part of the equity of holding subsidiaries Wuhan Company, Minsheng Trust, Asia-Pacific Property Insurance and other companies or part of the property under their names were frozen and seized by the court, and the company's asset security faced a great threat. The seizure and freezing of these assets further hindered Oceanwide Holdings' asset plan, and self-help was tied to a certain extent.
In April 2023, Oceanwide Holdings was applied for reorganization and pre-reorganization by the creditor Lion Assets, after which Beijing No. 1 Intermediate People's Court decided to initiate the pre-reorganization and appointed Beijing Zhong Lun Law Firm as the interim administrator of Oceanwide Holdings during the pre-reorganization period. At the beginning of December, the interim administrator believed that Oceanwide Holdings no longer had the possibility of reorganization. Accordingly, the Beijing No. 1 Intermediate People's Court decided to terminate the pre-reorganization of Oceanwide Holdings.
Analysts believe that this also basically declares the end of Oceanwide, that is, it may face the fate of bankruptcy.
At the same time, in the first three quarters of this year, Oceanwide Holdings' revenue was 65600 million yuan, down 26% year-on-year, and the net profit attributable to the parent company continued to be negative. This makes Oceanwide Holdings, which has already worn the "*ST" hat, face the risk of forced delisting in the financial category.
According to ** reports, the name "Oceanwide" comes from the seven-character quatrain "Oceanwide" made by the Ming Dynasty psychologist Wang Yangming; The danger is not in the chest, why not the clouds floating through space? The night is quiet and the sea is 30,000 miles, and the moon is bright and the wind is blowing down. The poem shows the author's composure in the face of hardships and dangers.
In the face of the huge waves at this time, can Lu Zhiqiang and Oceanwide remain calm?
sfc
Editor of this issue: Liu Xueying, Xi, Zhao Fengling.
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