According to a recent announcement by Hesheng group (00754. HK), it spent HK $6.422 billion to buy shares of sea, Ping An health, Ping An insurance, HSBC Holdings, China Mobile and Xiaomi in the open market.
In addition to its main business in real estate, synbiotic has already extended its commercial tentacles to many fields. From the perspective of the current return of equity investment, this is a successful case of Hesheng Chuangyus diversified track.
This is because, based on the closing price on November 19 (the closing price of sealimited on November 18), the total market value of the above shares held by Hesheng venture is HK $9.668 billion, the floating profit ratio is 50.55%, and the floating profit income is HK $3.246 billion.
According to public information, Hesheng is an equity investment business mainly focusing on private equity investment in the primary market and stock investment in the secondary market. It was established last year and incorporated into the system of listed companies this year. Hesheng mainly aims at equity investment in high-tech and medical technology.
During the period from December 12, 2019 to June 30, 2020, he Sheng Chuang Zhan purchased 2.5 million shares of sea with HK $882 million, with a shareholding ratio of 0.51%; He Sheng Chuang Zhan purchased 10.4272 million shares of Ping An Health with a shareholding ratio of 0.98%; He Sheng Chuang Zhan purchased 22.1565 million shares of Ping An insurance with HK $1.742 billion, with a shareholding ratio of 0.3%; He Sheng Chuang Zhan purchased 26.2368 million shares of HSBC holdings with a shareholding ratio of 0.13% and 949 million with a total of HK $1028 million Hong Kong dollar bought 16.125 million shares of China Mobile, with a shareholding ratio of 0.08%. Hong Kong dollar purchased 83.686 million shares of Xiaomi with HK $1.03 billion, representing a shareholding ratio of 0.48%.
Sealimited is a leading consumer Internet company headquartered in Singapore. Its core business includes e-commerce, digital entertainment and digital financial services. Its revenue in 2019 was $2.175 billion, and its net loss after tax was $1.454 billion.
Ping An health is a mobile platform for health mall and online medical and health services such as health management and health interaction. Its income in 2019 is 5.065 billion yuan, with a net loss of 746 million yuan after tax.
HSBC Holdings is one of the worlds largest banking and financial services institutions, with revenue of $71.024 billion in 2019 and a profit of $8.708 billion after tax.
China Mobile is Chinas leading supplier of mobile telecommunications and related services, with revenue of RMB 745.917 billion and profit after tax of RMB 10.679 billion in 2019.
Xiaomi is a company that sells smart phones, Internet of things (IOT) and consumer products, provides Internet services, and is engaged in investment holding business. In 2019, Xiaomis income is 205.838 billion yuan, with a net profit of 10.102 billion yuan after tax.
As of the close of November 19, except for the equity investment of Hesheng, except for the loss of China Mobile and HSBC Holdings, other stocks were profitable.
Many of them have contributed to the joint venture business system. According to the financial report, in the first half of this year, this business is the second largest income business after the main real estate industry.
In the first half of 2020, the real estate income of Heshengs main business reached HK $5.48 billion, and the equity investment reached HK $2.836 billion, which contributed to the increase of 48.7% in the overall income of Hesheng venture capital and the gross profit rate from 52% to 67% at the end of 2019.
To increase the cash reserves, maintain and increase the value of assets, and enjoy the cash dividends of high-quality blue chip stocks, which can be realized at any time - this is the reason why Hesheng Chuang Zhan gives the development of equity investment business. And this business investment direction is also in line with the current development strategy of science and technology transformation.
In this years semi annual report, Hesheng Chuang Zhan incorporated equity investment into the system and proposed to transform into a technology enabled and industry driven investment holding platform company.
In November this year, he Sheng Chuang Zhan bought another 20% equity of Yuanzhi Cayman with us $182 million, while Yuanzhi Kaiman invested 20% of Hesheng life and 30% of Hesheng commercial with the same amount of reverse.
According to the public information, Yuanzhi groups main operation platform is optimizing good life, which is known as building ecology with science and technology, taking financial services and brokers as the trading core, connecting the third party and the platform, and solving non-standard bulk commodities and family assets such as real estate, home furnishing, automobile, medical care, education, pension, finance, insurance, tourism, legal services, etc. for new middle-class families Configure the trading and service platform of the company.
It is speculated that he Sheng Chuang Zhan aims at technology, health care, insurance and other businesses through equity investment, and may also be paving the way for a better life and developing science and technology business. However, at present, Hesheng has not cooperated with other exhibitions such as Ping An Health and Ping An insurance that exclude equity investment. It is difficult to conclude whether there will be more linkage between the two sides in the future.
After all, judging from the current development, the optimization of good life has not broken the circle, and the commercial closed-loop is limited to the synbiotic system. The radiation scope of good living real estate business is mainly the real estate under Hesheng department, and there is no link with more third-party developers; Kangyang also only launched two health care institutions under Hesheng Department (Huiren Kangyang and Lerong watermark).
The same is true for the insurance business, which only sells a few types of insurance of Zhujiang life insurance. Zhujiang life insurance is a comprehensive life insurance company jointly invested by Zhujiang investment control and Guangzhou Financial Holding Group Co., Ltd.
This year can be said to be a year of high-profile investment of Hesheng. In addition to heavy money into the equity investment business, the company is also very high-profile in the land market.
In terms of land storage, Hesheng Innovation Exhibition has always focused on obtaining slow turnover projects such as old transformation. However, this year, it has spent more than 23 billion yuan to win seven projects in Langfang, Kunshan, Beijing, Hangzhou and other places, with an additional land reserve of 887000 square meters. In Beijing, where land and money are scarce, the company has won three homesteads at the minute temple in Fengtai, Beijing, with a hefty 18 billion yuan, making the market look sideways.
After smashing the real gold and silver for large-scale equity investment and land acquisition, Hesheng venture capital pressure increased significantly, the overall debt increased, and the debt ratio increased significantly.
According to the financial report, as of the first half of this year, its total assets and liabilities were HK $247.970 billion and HK $170 billion, respectively, up 21% and 32% compared with the end of 2019.
This year, the regulatory authorities put forward prudent real estate financial management policy three red lines, specifically: after excluding advance collection, the asset liability ratio is greater than 70%; the net debt ratio is greater than 100%; the cash short debt ratio is less than 1 times. According to the situation of the real estate enterprises, the regulatory authorities will divide them into four grades, namely red, orange, yellow and green, to implement differentiated debt scale management.
Facing the new financial regulatory policy, Hesheng Chuang has to balance the balance between the structure and scale of its assets and liabilities.