In the winter of 2023, the ice and snow festival in Harbin is hot, and perhaps Yao Zhenhua, president of Baoneng Group, deeply understands the chill of the capital market.
As he himself said, "this liquidity difficulty has never been seen in Baoneng's 29 years."
OneHeaven and earth are all working together
In the 90s of the last century, Yao Zhenhua and his younger brother Yao Jianhui went to Shenzhen to start a business after graduating from university. There are inspirational stories about his early fried fritters and selling vegetables in the vegetable market. They really got on the right track when they ran a clean vegetable supermarket in Futian District, and then got the opportunity of the China Hong Kong City project, and officially stepped into the real estate industry.
Around 2012, Yao Zhenhua initiated the establishment of Qianhai Life Insurance, which became a strong backing for Baoneng to overcome obstacles later. Real estate enterprises are highly sensitive to funds, private enterprises have limited financing channels, and the cost of insurance funds is low and the cycle is long, which is an ideal one.
In 2015, Baoneng raised Vanke. In the end, although the success fell short, the battle of Baowan ended with Wang Shi**, and Baoneng cashed out 40 billion yuan, making Yao Zhenhua famous. After the battle of Baowan ended, Yao Zhenhua started the journey of building cars.
In 2017, Baoneng invested 66300 million yuan to acquire 51% equity of Qoros Automobile; In May 2020, to 16Acquired Changan PSA in Shenzhen for 300 million yuan. A large amount of funds have been deposited in the car building, which has also buried huge financial hidden dangers for Yao Zhenhua and Baoneng.
On the other hand, Yao Zhenhua led the "Baoneng Department" to participate in the high-tech fixed increase of Zhongju High-tech. And in March 2019, he became the actual controller of Longer Zhongju High-tech (with two major brands of "Chubang" and "Delicious Xian") in the soy sauce industry. Condiments are another carefully laid out field by Yao Zhenhua after making cars.
Later, due to the debt crisis, the "Baoneng Department" led to the passive nature of the Zhongju High-tech held by its member Zhongshan Runtian, and the state-owned shareholder Torch Group and its concerted actors took the opportunity to continuously increase their holdings through judicial auction and trading, and returned to the largest shareholder of Zhongju High-tech.
Second, the heroes are not free
At the beginning of 2021, Yao Jianhui announced that the brothers separated due to "disagreement with the business philosophy" of his eldest brother Yao Zhenhua.
Since the liquidity crisis of Baoneng appeared in June 2021, the lid on debt has been gradually lifted.
In the 2022 Bank of Guangzhou v. Yao Zhenhua and Baoneng Enterprises in a loan dispute over a loan of 700 million yuan, Mr. Yao was even said to be "missing", which scared the company to come out and clarify.
According to industrial and commercial information, Baoneng Investment, Jushenghua, Baoneng Automobile, Baoneng Real Estate and Shum Yip Logistics, which are subsidiaries of Baoneng, are involved in a total of more than 700 judicial risks, involving multiple risk categories such as litigation and enforcement, triggering a chain reaction one after another.
Yao Zhenhua has been restricted from high consumption, and is not allowed to take planes, train sleepers, and buy real estate.
In the face of difficulties, Yao Zhenhua has put a number of assets on the shelves, such as Shenzhen Baoneng Center, logistics park assets, and Qianhai high-quality projects, involving land, old reform, equity of financial enterprises and commercial complexes.
On July 19, 2023, Yao Zhenhua, a major shareholder, went to the headquarters of Zhongju High-tech to "investigate the production and operation situation", but was refused entry by the security personnel of his own company, which made Mr. Yao quite embarrassed.
On July 22, Baoneng Group dispatched a team to try to enter Zhongju High-tech to take over the security work, and the two sides confronted each other. In the end, Baoneng Group failed to enter Zhongju High-tech. The equity competition between Baoneng and Torch Group has officially entered a white heat.
After losing the position of the major shareholder of Shaoneng shares, Baoneng will most likely lose control of Zhongju High-tech, which is undoubtedly another heavy blow to Mr. Yao.
3. There is no era of strong people, only strong people of the times
Back then, Vanke was raised, Dong Mingzhu was singled out, CSG A was "bloodbathed", Nanning Department Store was swept away, Zhongju High-tech, OCT A, Shaoneng Co., Ltd., Star Power, China Jinyang, etc. were all hunted, turning clouds and rain, and they were in the limelight for a while. To this day, in the capital market, Yao Zhenhua's "barbarian legend" is still circulating.
Now that time has passed, huge debts are weighing, and heroes are short of breath. Using the shopping mall as a gambling table, Yao Zhenhua's 30-year entrepreneurial road may be the time to sink down and reflect on his radical expansion.