textLeju Finance Xu Jiumian
A few days ago, Jiangsu Province held two sessions, Zeng Junkai, as a member of the Provincial Committee of the Chinese People's Political Consultative Conference, proposed to follow the basic principle of consistent quality and price on the healthy development of the property management industry, and formulate a dynamic adjustment mechanism for property service fee standards.
Born in 1994, Zeng Junkai only ushered in his own year this year. But as early as three years ago, he had already held important positions in the family's two listed companies, and in February 2021, he was appointed as Hongyang Real Estate (01996HK) executive director and vice president, etc., in December of that year, he took over Hongyang Service (01971.).HK) Chairman of the Board and Non-executive Director, etc.
At the helm of Hongyang for more than two years, Zeng Junkai is facing a lot of tests. One of them, perhaps as he said in the proposal, found through full investigation that under the current policy, the regular new property service ** guide price can not be applied to the actual implementation of the charging standard in a timely manner. This means that service standards have improved, but the cost burden on businesses has increased.
But at the moment, there is something more than the cost burden of Hongyang service.
On January 23, during Zeng Junkai's participation in the two sessions with property-related proposals, Hongyang Services issued an announcement on legal proceedings against its intermediate holding company.
In short, its controlling shareholder, Hongyang Group, was unable to repay 2US$88.6 billion in a winding-up petition filed by SericaAgency Limited in the High Court of the Hong Kong Special Administrative Region against Hongyang Group dated 19 January 2024.
The creditors' claims have not yet been heard and no winding-up order has been issued.
In the announcement, Hongyang Services emphasized that "the Petition will not have a material impact on the financial performance and operations of the Group." However, some industry insiders have analyzed that if this debt cannot be properly disposed of, Hongyang Services may also be affected. In addition to the impact of the large amount of related receivables on performance, equity may also be used as a bargaining chip for the controlling shareholder to pay off debts at the negotiation table.
When the real estate industry is infinitely good, property spin-offs and listings have become a tide, and many real estate "second generations" have surfaced through this, they are either in important positions, or holding equity, or both, like Zeng Junkai, who climbed to many peaks that ordinary people cannot reach in a lifetime.
However, as the real estate industry enters a cyclical adjustment, the light fades, and listed property companies are affected by related real estate, and their performance stalls and equity changes hands ......The "second generation" of real estate, who were once shaded in the family business created by their fathers, must also advance and retreat with their fathers and share the burden in this cruel battle for survival.
As far as Hongyang's services are concerned, in addition to Zeng Junkai, his sister Zeng Zixi is also among them.
In fact, before Zeng Junkai entered Hongyang Service, the outside world always thought that Zeng Huansha intended to give the real estate business to his son Zeng Junkai, and the property sector was handed over to his daughter Zeng Zixi.
In March 2020, Hongyang Services hit the capital market, and in the prospectus disclosed at that time, Zeng Zixi served as executive director and vice president, responsible for the operation and management of the group.
Zeng Zixi is not "airborne" management. As early as September 2016, Zeng Zixi joined Hongyang Service as the deputy general manager of the operation management department; In March 2017, she was promoted to Assistant President; In October 2018, he was promoted again and appointed as Vice President.
It can be said that before Zeng Junkai entered this time, the outside world always believed that the power of Hongyang's service in the future would be handed over to Zeng Zixi.
Zeng Junkai's training ground has always been in Hongyang's real estate sector, and one of the few ** before was also at the press conference after the IPO of Hongyang Real Estate Hong Kong Stock Exchange passed the hearing.
Unlike his sister Zeng Zixi, who graduated from Chinese People's University, Zeng Junkai studied finance overseas and graduated from the Wharton School of the University of Pennsylvania in May 2016 with a bachelor's degree in economics. According to public information, Zeng Junkai has excellent grades and is an out-and-out scholar.
After returning from overseas, Zeng Junkai also sought independent development in Beijing, but soon returned to Hongyang, and the road to the first place began. Zeng Junkai was first placed in various departments of Hongyang Group, and was familiar with the business in the group's operation department, strategic investment department, and finance department, and successively participated in the company's listing, financing and bond issuance, strategic research, etc.
In October 2018, Zeng Junkai was sent to Chengdu as the general manager. The base camp of Hongyang Real Estate is in Nanjing, and Chengdu is only a new area, with only two or three projects, but because of this, Zeng Junkai can play freely and exercise his ability to be independent.
At the beginning of 2021, Zeng Junkai returned to the Nanjing company to replace Ge Chunhua, a veteran of Hongyang Real Estate, as general manager, and was soon promoted to vice president.
At the end of 2021, Hongyang veteran He Jie resigned as chairman of the board of directors and non-executive director of Hongyang Service due to work transfer, and Zeng Junkai "parachuted" to take over.
At the helm of Hongyang service for more than two years, how is Zeng Junkai's report card?
In terms of scale, as of June 30, 2023, Hongyang Services provided property management and value-added services in 55 cities, with an area under management of approximately 44.9 million square meters, a slight increase of approximately 2% over the same period of the previous year. However, in the same period, the contracted area decreased by 5.5 million square meters from 56.9 million square meters8% to 53.6 million square meters.
It is worth noting that in the first half of last year, Hongyang Services withdrew from many third-party projects, and the number of projects shrank from 211 in the same period of the previous year to 179, and the proportion of third-party projects in the area under management also increased from 5126% down to 4413%, and the proportion of revenue fell to 3909%。
In terms of performance, the operating income for the same period increased by 54.4 billion yuan and net profit of 93.9 million yuan, respectively, a year-on-year decline. 2%。
In the first half of last year, the gross profit margin of the three business lines of Hongyang Service, including basic property management services, community value-added services, and value-added services for non-owners, all recorded a significant decline, with the corresponding range of about 51 percentage point, 66 percentage points, 45 percentage points.
Related company: Hongyang Service HK01971