Wen Leju Finance and Economics Yan Ming Association
The chill Lin Rongbin felt this winter may be unprecedented.
As a Fujian businessman, Lin Rongbin's business used to be very good. In the 90s of the last century, he started with rubber and plastic foam manufacturing, and the products made by Sansheng Industrial at the helm of him have a high reputation throughout Asia. After the millennium, Lin Rongbin entered the real estate market, and once made the development business one of the top 100 in the industry and landed in the capital market.
The glory is in the past, and now Lin Rongbin's Sansheng system is gradually disintegrating.
In October last year, Lin Rongbin's rubber and plastic foam manufacturing main body Sansheng Industrial was dissolved, and in December this year, Sansheng Holdings, which is responsible for the real estate business, is also about to be delisted.
On December 21, according to the announcement of the Hong Kong Stock Exchange, the listing status of Sansheng Holdings in Hong Kong stocks will be cancelled on December 27, 2023.
Sansheng Holdings has suspended trading since May 16, 2022, and the deadline to meet the resumption guidance is November 15 this year.
Obviously, Sansheng Holdings finally failed to meet the resumption guidelines, becoming the fourth mainland real estate company to be delisted from the Hong Kong Stock Exchange after Xinli Holdings, Nanhai Holdings, and Carnival International.
The scenery of the past
After relying on rubber and plastic foam, Lin Rongbin and his brother Lin Rongdong set their sights on real estate and founded Sansheng Real Estate in 2001.
After entering the real estate market, the two brothers led the team to invest in the construction of four real estate projects in Fujian, namely Quanzhou Huijin Plaza, Fuzhou Guoling, Fuzhou Bali, and ** Park, all of which were successful.
Among them, Quanzhou Huijin Plaza made Sansheng's name an instant hit, and Fuzhou Guoling and Fuzhou Bali made Sansheng's real estate brand a household name in Fujian. Until 2013, Lin Rongbin and Lin Rongdong established Sansheng Group, at this time, the company has more than 120 projects, covering more than 40 cities across the country.
The heyday of Sansheng's development was after the listing. In August 2017, Sansheng Group was successfully listed on the backdoor "Lifestyle Real Estate", and the listed company was renamed Sansheng Holdings.
After the completion of the backdoor, Lin Rongbin frequently injected assets into the listed platform, which made the platform's performance improve rapidly. In 2018, Sansheng Holdings entered the top 50 domestic real estate enterprises, ranking 45th.
In 2019, the headquarters of Sansheng Group settled in Shanghai, and Lin Rongbin proposed the goal of double 100 billion yuan, that is, "to achieve double 100 billion yuan in 2022, that is, 100 billion yuan in total assets and 100 billion yuan in sales". At the same time, the business will gradually expand from the base camp in Fujian to the Yangtze River Delta, Shandong, Beijing and South China.
In 2020, Sansheng Holdings' sales were 48.4 billion yuan, and the operating income was 87800 million yuan, net profit attributable to the parent company of 80.9 billion yuan, a year-on-year increase of %, and the performance reached its peak.
The glory of Sansheng Holdings is stuck in 2020. After that, the company's operation turned from prosperity to decline, and in 2021, Sansheng Holdings' sales were 3138.8 billion yuan, a decrease of 3515%, the company's total assets are 6026.7 billion yuan.
Since then, Sansheng Holdings has never announced its financial results, but one thing that can be confirmed is that Lin Rongbin's goal of double 100 billion yuan has not been achieved so far.
From prosperity to decline
There is a saying in the industry that the reason why Sansheng Holdings was mired in the debt swamp had a lot to do with the backdoor listing at that time.
The predecessor of Sansheng Holdings, Lifestyle Properties, was originally controlled by Liu Luanhong, the younger brother of Liu Luanxiong, and the company originally had a piece of land in Shenyang and planned to develop a commercial complex project of Yifu with a planned total construction area of more than 180,000 square meters.
Liu Luanhong did not successfully develop this project, and after Sansheng Holdings took over, it was still progressing slowly, and the company paid 6$1.9 billion at a cost. There are ** reports that Liu Luanhong unloaded his burden and left the mess to Lin Rongbin.
After 2018, Sansheng Holdings' liabilities have been rising, with an increase of 515 in three years24%。From 2019 to 2021, the company's asset-liability ratio was11% and 8823%, which is at a high level for three consecutive years.
In the first half of 2022, Sansheng Holdings was exposed by a large number of employees that employee wealth management products were overdue and not paid, and there were many people and amounts involved. Soon after, the company officially exploded and was unable to pay a $100 million offshore debt.
As of August this year, Sansheng Holdings had not repaid any amounts due on the July 2022 Notes, November 2022 Notes, and January 2023 Notes.
When Sansheng Holdings was in crisis, Lin Rongdong and Lin Rongbin brothers should have been in the same boat, but in fact, on the contrary, the two brothers went to court because of the company's operation.
In March last year, Lin Rongdong took Sansheng Holdings and his younger brother Lin Rongbin to court, because without Lin Rongdong's consent, Sansheng Holdings sold the equity of Qingdao and Chengdu projects without authorization. The two lawsuits involved a total of 14 damages0.5 billion yuan.
Lin Rongbin's troubles don't stop there.
In addition to Sansheng Holdings, Sansheng also has a listed company, Sansheng Education. In April this year, Sansheng Education was issued a risk warning, because the listed company has "the financial and accounting report of the most recent fiscal year was issued with an audit report that cannot express an opinion or a negative opinion", and its ** transaction will be subject to a delisting risk warning.
Then in October, Dai Debin, chairman of Sansheng Education, and Lin Rongbin, former chairman of the board, were filed on suspicion of illegal information disclosure.
It is worth noting that when Lin Rongbin's main body of rubber and plastic foaming business, Sansheng Industrial, was dissolved, the announcement stated that the company's shareholders found that Zheng Sunxing, the former general manager of the company, and Lin Xiuqin, the former deputy general manager, had collaborated with Lin Rongbin, an outsider, to carry out a number of suspected illegal and criminal acts, including forging the company's board of directors resolution to make illegal loans in the bank, providing nearly 2 billion yuan of guarantees for the real estate company controlled by Lin Rongbin, and transferring the company's assets worth more than 1 billion yuan to the shell company controlled by Lin Rongbin.