Mom, love me again

Mondo Entertainment Updated on 2024-01-31

Since several state-owned real estate companies began to reduce staff and increase efficiency, the relationship between them and their parent companies has become very delicate. In Beijing's land market, a real estate company under a central enterprise was about to engage in several vest companies to acquire land, but the parent company accidentally found out about it and was immediately stopped. The reason given by the group is simple and crude: the group's business of hundreds of billions of dollars a year, your real estate business volume, don't cause trouble for the group. The mother of the central enterprise group has always been the backbone of this kind of real estate enterprise. But now, it's good if the mother doesn't make up for her son. In the past two years, the cash flow of a real estate business company under a central enterprise was a little tight, and it wanted to raise funds, but did not want to make the debt ratio on the financial statements appear too high, so the company's senior executives held several meetings and came up with a solution. The company has a well-located office property in their hands, and they plan to use it to make a fuss. Specifically, the office building is sold to the parent company and then a repurchase agreement is signed. In this way, both the money received from the parent company and the liabilities are not reflected in the statements, and the repurchase is carried out when the cash flow pressure is reduced, and the repurchase** plus interest is added. This is the best of both worlds, a win-win situation. The group agreed to this plan, but the proposed acquisition should not be too high, and the real estate company certainly had no opinion, and the transaction was immediately closed. After all, they are all a family, and they have been safe and quiet for the past two years. The buyback agreement was signed for two years and is now expiring. The real estate company found a sum of money and asked the group to fulfill the repurchase agreement and buy the assets back as agreed. Something unexpected happened, the group did not admit it, and gave two paths:Either the assets belong to the group, or they are re-evaluated, and the real estate company buys them back at the market price. That's embarrassing. Originally, it was an internal transaction, both parties were fine, free and tacit, I sold at a low price, you bought at a low price, and then I added some money to buy it back, which is equivalent to a low-interest loan. But now if you want me to buy it back at the appraisal price, it must be much higher than the *** at that time, which is equivalent to borrowing a loan sharkIf so, it would be better to borrow money directly from the market at that time. The real estate company was very embarrassed and in a dilemma, although there was a repurchase agreement at that time, but it was its parent company, and I had never seen any son dare to sue his mother for performance. What's more,If you tear your face with your mother because of this incident, will the future of the executives of the real estate company be ruined?I can't think of a way, so I can only endure it first. When you can't figure it out, you can only comfort yourself:The meat is all in one pot anyway. In fact, this attitude of the group is not without reason. In the last two years,The compliance management of the central enterprise system has been tightened, and the accountability has become more and more intense. Within the central enterprises, matters related to assets are sensitive matters, and what to sell is the core issue, to make collective decisions, team members to sign, sign to be responsible, in this situation, I am afraid that any team member, will carefully weigh the risksThe mentality that more is better than less is normal, and this cannot be blamedEveryone has to learn to empathize.

It's also difficult to be a mother, so the son should find more reasons from himself. If the performance of the real estate company is good, especially if it contributes a lot to the group's profits, it is logical to get the support of the groupIn the past few years, most of the good days of the real estate business platform of central enterprises came about like this. Here's an example. The most important parent company of China Jinmao is Sinochem Group, a leading enterprise managed by the State-owned Assets Supervision and Administration Commission. Sinochem has a subsidiary, Sinochem Factoring, one of which is mainly engaged in accounts receivable financing. Chinese real estate has a pre-sale model, so there are a large number of accounts receivable. China Jinmao cooperated with Sinochem Factoring to package and sell its accounts receivable to Sinochem Factoring in installments, and then in exchange for financing, China Jinmao redeemed and paid interest at maturity. This cooperation began in 2018, and in 2022, China Jinmao renewed its cooperation agreement with Sinochem Factoring. According to the newly signed agreement, the maximum daily balance of financing factoring services provided by Sinochem Factoring to Jinmao is 1.4 billion yuan, and the non-financing service fee is 0.0 per year2.8 billion "capped". This kind of business requires a high level of creditIn this kind of operation within the central enterprise system, there is no problem with compliance. A friend who used to work in a central enterprise said that generally large central enterprises have their own financial companies, and they will require companies in their system to deposit money in financial companies to support the development of financial companies. In return, the finance company will first lend to the companies in these systems an amount that is basically equal to the amount deposited, and the companies will take out the assets as collateral. In this way,Whether it is funds or assets, they are still in their own pots, but the money has turned around, and all links can make profits in accordance with regulations. He said that the real estate business platforms of central enterprises such as Joy City and China Jinmao will "save money" in the financial company of the parent company, which is "customary", fully compliant, and not uncommon. This is just the first step. The reason why companies in these systems are willing to deposit money in the finance company is partly because they want to support the group's deployment arrangements, and on the other hand, they want to get support from the group. The most typical is that when you issue bonds to raise money, either the finance company buys the bonds, or the group can coordinate with other brother companies to buy these bonds. All the time,The financial companies of central enterprises have a tradition of buying bonds issued by companies in their own system. Sinochem's finance company bought the bonds issued by China Jinmao. There's another way that's a little more complicated. Many parent companies of central enterprises have platform companies in Hong Kong, and real estate companies under the same central enterprises can participate in this kind of capital pool business initiated by Hong Kong platform companies. The basic mode of operation is similar to that of a finance companyThe money is deposited, and the pool then lends basically the same amount of money to the real estate company, which uses its own assets as collateral. In this model, in addition to the participation of real estate companies and Hong Kong platforms in the system, there are usually one or more third-party institutions outside the system that enter the capital pool, generally international financial institutions, whose investment directions are diversified and the return on investment is higher. As a company in the system, the deposit can earn slightly higher interest than the market for the same period, and when borrowing from this pool, its composite interest rate can be lower than the market. Real estate companies generally use this low-interest financing to replace existing debts with higher interest rates, thereby reducing the overall cost of capital.

When singing and dancing, the mother is kind and filial to the son, but the problem is that once the situation is reversed, it is difficult for the mother to love. In January and December last year, CCCC Real Estate asked its controlling shareholder, CCCC Real Estate Group, to borrow money, and the upper limit of the loan amount was 10 billion, and my mother really agreed. However, this does not show how selfless a mother's love is, just look at the interest rate on the loan, 10%, this interest rate level is not low at all. Love is love, but talking about feelings at this time really hurts money. The performance of his own son is indeed not too good. In April, July, and December 2021, CCCC Real Estate borrowed money from its own mother, but some of them were not repaid and had to be extended. In this case, the 10% interest rate is also reasonable, after all, the mother has to manage a big family, and the money in the mother's pocket is not scraped from the sky. Now, under the strict assessment system, the parent company of the central enterprise must also act in accordance with the laws of the market, and if the investment or business behavior causes major losses, it must also be strictly held accountableIn the face of potential or actual market fluctuations that may harm its own interests, or when its own business behavior requires, the Group will often act decisively. In June 2022, Sinochem Finance Co., Ltd. ** China Jinmao's bond "Jinmao 2204". Of course, even if it was **, Sinochem's financial company still held this bond at that time, and after **, Sinochem's financial company held the scale of "Jinmao 2204" bonds, which was still 2400 million RMB. The situation in the real estate market has reversed, and the group's support for the real estate companies in the system is no longer as "unconditional" as before. From profit contributors, to troublesome kids,Within large central enterprises, the role of real estate has changed rapidly, making it difficult for many people to adapt at once. A friend complained to me that when I reported to the group a few years ago, the real estate business was either ranked first, second or thirdTowards the end of this year, the company's reporting order in the group has not yet been decided, he asked in the past, and the answer he got from the group is, do you want to be the first to report in the risk business section?A friend who has just resigned from the real estate platform under a central enterprise said that on the one hand, reducing staff and increasing efficiency is the need of the company's own operation, reducing costs and traveling lightly;On the other hand, it is also for the group to seeLet the group see its determination in exchange for support from the group level, so that my mother can love herself again. This is important. Recently, Jinmao Services won a project through competitive bidding, Zhonghao Homes in Haidian District, Beijing. There are more than 80 suites in this community, and Jin Mao Service will lease these **, and then rent them out after unified maintenance and decoration. Although this is an inconspicuous business, the owner of Zhonghao Homes is an important player - Sinochem Group. One of the important tenant groups in the future is the employees of Sinochem Holdings. My mother gave me a chance, which shows that my mother still loves you.

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