State Grid quit real estate business! Luneng Group is taken over by China Green Development

 State Grid quit real estate business! Luneng Group is taken over by China Green Development

Luneng said that the incorporation of Luneng Group (capital Weiye group) into Chinas green development is conducive to continue to play the advantages of management, talent and market accumulated by the companys development, promote the sustainable and healthy development of enterprises through reform on the basis of maintaining the stability of the staff team, so as to better play the role of state-owned capital, promote green development and promote the construction of ecological civilization At the same time, it is also conducive to amplifying the competitiveness and influence of state-owned capital, enhancing the vitality of the state-owned economy, helping to do a good job in the six stability work, implementing the six guarantees task, and contributing new and greater strength to building a moderately prosperous society in an all-round way and building a socialist modern country

Luneng Groups real estate listing platform Guangyu development, also released the news in the days announcement. After the transfer, Guangyu development will become a listed company subordinate to China green development, Luneng Group is still the controlling shareholder of the company, and SASAC of the State Council is still the actual controller of the company.

According to the announcement, State Grid holds 30% of China green development. Therefore, after the transfer, State Grid will still indirectly hold 30% of Luneng Groups shares, but in terms of Lunengs management and development, its voice will be transferred to China green development.

On March 22 this year, the website of the Central Commission for Discipline Inspection and the State Supervision Commission released the notice of the Party group of the State Grid Corporation of the Communist Party of China on the progress of the third round inspection and rectification of the 19th Central Committee. It said that with a higher political position, we should stick to the main business of the power grid, resolve to quit the traditional manufacturing and real estate business, and resolutely complete the task of deepening the reform of collective enterprises on schedule.

This news also makes State Grid quit real estate business once on the microblog hot search. As the main platform of State Grid real estate business, Lunengs destination has become the focus of attention.

As early as the 1990s, Luneng began to engage in real estate development, which is one of the earliest enterprises engaged in real estate development in China. At present, Lunengs real estate business is mainly distributed in Shandong, Hainan, Beijing, Chongqing and other places. Among them, most of these businesses are directly operated by the group, and a small part is injected into the listed platform Guangyu development. In 2019, Guangyu development achieved a revenue of 23 billion yuan, a year-on-year decrease of 15%.

According to the estimation of Tianfeng securities in 2017, the volume of real estate business of Luneng which has not been injected into the listed companies exceeds 20 million cubic meters, and the value of goods exceeds 400 billion yuan. In the view of the industry, Luneng has a huge scale and abundant resources. Although it does not belong to the head real estate enterprises, it has always been a potential giant.

Luneng is one of the 21 state-owned enterprises directly under the state owned assets supervision and Administration Commission, which holds real estate license. In 2010, in order to regulate the phenomenon that central enterprises enter the real estate industry on a large scale, the SASAC issued a house withdrawal order, requiring the central enterprises to withdraw from the real estate industry completely, and only retain the real estate main business qualification of 16 central enterprises. This year, five more central enterprises were allowed to retain this qualification, among which Luneng was listed.

In 2017, with the help of good market momentum, Lunengs real estate business sales scale exceeded 80 billion. Luneng ranked 21st in the sales list of real estate enterprises in 2017 released by e-ju Cray. But since then, the company has not released real estate sales data.

Source: Han Yibing, editor in charge of the 21st century economic report_ NT3945