As of November 26, the Hong Kong stock market value of Longhu real estate was over HK $300 billion. On the contrary, the market value of Caixin development, which also placed real estate business in listed companies, did not exceed $3.2 billion. From the high point in 2016, the market value of Caixin has evaporated by more than 80%.
Backward development will not hinder the increase of senior executives income
Its real estate and environmental protection business is mainly undertaken by the subordinate listed company Caixin development. However, in terms of volume, the income of Caixin from real estate is difficult to compare with that of local head real estate enterprises.
According to the data, from 2016 to 2019, the real estate business income of Caixin development increased from 1.711 billion yuan to 3.314 billion yuan.
In the past two years, under the background of accelerating the concentration of industry resources to the head enterprises, the profitability of small and medium-sized real estate enterprises without scale support is naturally difficult to have a bright performance. Since the net profit of Caixin development reached nearly 200 million yuan in 2017, the profit scale has been maintained at about 100 million yuan in recent years, without obvious growth. On the contrary, executive compensation has reached new highs year after year. The total executive compensation in 2019 was 22.8387 million yuan, and that in 2018 was 13.3471 million yuan, with a year-on-year increase of 71%.
It is also because of this that the above investors in the exchange activities forced to ask the companys share price fell for several years.
In this regard, Caixin development can only reluctantly respond, there are many factors affecting the companys share price. The company will actively do a good job in its main business, operation and management, and strive to create greater value for investors.
Looking back at the historical data, we can see that around the second quarter of 2015, fund institutions once held more than 20 million shares of Caixin development stock. Subsequently, the companys total equity continued to expand, the stock price continued to fall, institutions began to clear positions.
Taking 2020 as an example, there is no fund company holding shares in the first and third quarters of this year, and there are three funds such as China Southern Fund in the second quarter, but the total number is no more than 368200 shares. According to the estimation of the stock price at that time, the total market value of its shares has not exceeded 1 million yuan.
How can we give more imagination to the listed companies? Only performance.
On July 30 this year, Caixin development called out the development goal of 10 billion in three years of Chongqing company in a media communication activity.
However, compared with the market environment before and after 2017, with the continuous regulation of the real estate market and the continuous concentration of the industry to the top enterprises, the growth difficulty of small real estate enterprises is correspondingly increased.
The high interest rate financing capital chain of its trust is tight?
Compared with the head of enterprises, small and medium-sized real estate enterprises are now more difficult.
In the online reception activities on the 26th, the companys capital problem has also become one of the focuses of investors, the company guarantees so much, wont thunder. What are the net cash flows from investment activities? Can you explain them in detail?
Investors concerns are not without cause. First of all, from the perspective of the industry, the financing ability of small and medium-sized real estate enterprises is weaker, which is particularly prominent in the context of the current property market adjustment, and there have been a number of related cases before.
Secondly, Caixin development and the group have also shown some signs of tight funds, the most direct embodiment of which is the high proportion of equity pledge of major shareholders of the company.
As of the end of the third quarter of this year, Chongqing Caixin Real Estate Development Co., Ltd. held 678 million shares of Caixin development, accounting for 61.63% of the total equity of the company. However, as early as the end of 2019, it had pledged 668 million shares, accounting for 98.53% of its shares.
In contrast, Caixin groups business scope also involves infrastructure investment, finance, culture and tourism, especially in the financial sector, involving banking, insurance and trust fields.
However, taking 2019 as the turning point, the company has changed from the normal situation of massive expansion before and turned to the contraction of financial front.
In January 2019, Caixin group transferred 5% equity of Acer property insurance. In July of the same year, Huatai Insurance Group disclosed an equity change content, which showed that Caixin group and other four companies planned to transfer all the shares of Huatai Insurance Group held by them to Longjing Industrial Group Co., Ltd.
After entering 2020, the situation does not seem to improve significantly. First, in March this year, Chongqing rural commercial bank also announced that it agreed to grant the group comprehensive credit line of 9.979 billion yuan to Chongqing Caixin enterprise group and its related parties. On the other hand, Caixin group is still financing through trust channels. Huaao trust, formerly known as Kunming International Trust and investment company, is a subsidiary of Caixin group. It holds 50.01% of its shares through Beijing Rongda investment and directly holds 49.99% of its shares. Since July this year, Huaao trust has issued several debt financing plans of Chongqing Caixin Enterprise Group Co., Ltd. and the repayment source is the operating cash flow of Chongqing Caixin Enterprise Group Co., Ltd. Among them, the financing interest rate of 18 months is 9.5%, and that of 24 months is 10%. Under the background of the continuous decline in the yield of trust products, Caixin gives such a high interest rate level, which inevitably leads to the concern of all parties about the shortage of funds. Source: editor in charge of economic report in the 21st century: Zhong Qiming_ NF5619
After entering 2020, the situation does not seem to improve significantly. First, in March this year, Chongqing rural commercial bank also announced that it agreed to grant the group comprehensive credit line of 9.979 billion yuan to Chongqing Caixin enterprise group and its related parties.
Since July this year, Huaao trust has issued several debt financing plans of Chongqing Caixin Enterprise Group Co., Ltd. and the repayment source is the operating cash flow of Chongqing Caixin Enterprise Group Co., Ltd.