If Pan Shiyi clears SOHO, can China still take the land this year?

 If Pan Shiyi clears SOHO, can China still take the land this year?

The reason for this fluctuation is that foreign media reported that SOHO China is considering selling its office buildings for us $8 billion (about HK $62.7 billion). Daily economic news reporter to SOHO China to verify, its response is no comment.

But an important data is that according to the semi annual report, the total non current assets of SOHO China is HK $63.66 billion, which is almost the same as the total amount of equity sales reported by foreign media.

On June 28, this year, SOHO China property sales promotion conference scene picture source: Chen Mengyu (information picture)

Transformation has sold nearly 30 billion yuan so far

Pan Shiyis selling and selling is not a new thing, but the frequency of this half year seems to be a little high, involving property, office, parking and other formats.

On October 22, it was reported that 11 projects in Beijing and Shanghai of soho3q had been sold to dream building star, and now they have entered the contract approval process. According to several media reports, the internal staff of dream building star said it did, while SOHO China said it would not reply.

Soho3q was once a new business that Pan Shiyi had high hopes for, and his vision was to be the largest office building comprehensive service provider in China. At a city development conference in June 2018, Pan Shiyi vowed that soho3q would be split and listed in 2019. But now SOHO Chinas shared office business has become a rumored asset for sale, and listing has never been mentioned again.

Earlier on September 30, SOHO China announced the sale of a portfolio of 2583 underground parking spaces for nine commercial projects in Beijing for 761 million yuan. The reporter of the daily economic news noted that the book value of the 2583 parking spaces is about 508 million yuan, and the transaction consideration is 761 million yuan. The average transaction price of each parking space is nearly 300000 yuan, and the transaction premium rate is half.

On June 28, SOHO China announced the sale of 13 office property projects in Beijing and Shanghai, worth 7.8 billion yuan, the daily economic news previously reported. The reporter learned that the first transaction targets of SOHO China are Beijing Wangjing SOHO, Yinhe SOHO and Jianwai SOHO, as well as some properties of Shanghai SOHO Donghai Plaza and SOHO Zhongshan Plaza. The transaction methods are asset transaction and equity transaction.

For the reason of sales, Pan Shiyi said at the scene of the conference, the holding is too large and there is no reason for any funds.

Really rich?

At the press conference in June this year, Pan Shiyi sent a message to the outside world that SOHO China will start to take the land again when it has money. At that time, he told a number of media: the next step may be to consider land acquisition, or focus on the big cities, first tier cities, and the most prosperous areas of first tier cities. I do this real estate certification on a lot is the most important. If there is no good land, we will repay 17.8 billion yuan of bank loans. Its a little bit better. Its a little less stressful for the company.

In 2018, the turnover of SOHO China was 1.721 billion yuan, a year-on-year decrease of 12.32%; of which, the rental income was about 1.735 billion yuan, an increase of about 4%. The net profit attributable to shareholders of the listed company was 1.924 billion yuan, down 59.33% year on year, down nearly 60%.

In the first half of this year, the business volume of SOHO in China is about 889 million yuan, and in the same period of 2018, about 795 million yuan (excluding the impact of rental income of sold Lingkong SoHo), up about 11.8% year-on-year; the net profit is only RMB 565 million yuan, down 48.36% year-on-year, nearly cut back.

The former 10 billion real estate enterprises now have a revenue of less than 2 billion yuan, or even less than some single projects of real estate enterprises.

According to wind, SOHO China made nearly 10.6 billion yuan of net profit in 2012 before its transformation, but it has been on the decline since then. Total revenue is out of a downward curve. From 2013 to 2018, SOHO Chinas total revenue was 14.924 billion yuan, 6.360 billion yuan, 1.404 billion yuan, 1.962 billion yuan, 2.282 billion yuan and 2.089 billion yuan respectively, of which the year-on-year decrease in 2015 reached 77.93%, nearly 80%.

I dont know if Pan Shiyi, who relived I used to be a real estate developer confidently four months ago, can find a new development track in this wave of selling and selling.

Source: editor in charge of daily economic news: Chen Hequn, nb12679