Specifically, in November, among the 19 transfer projects involving central enterprises, there were 4 projects under OCT Group and Sinochem Group, 2 under China Merchants Group, 2 under PowerChina and 2 under AVIC, and 1 under CITIC Group, Everbright Group, CMC, CCCC and Xinxing Jihua.
In terms of the proposed transfer proportion, only Tianjin ruisai Investment Development Co., Ltd., Qingdao Fangjing Real Estate Co., Ltd. and Shenzhen Taiziwan commercial reserve Real Estate Co., Ltd. are 100% transferred. The remaining 16 projects all choose to transfer part of the equity.
In terms of transfer amount, among the 19 transfer projects, Wuhan Tianchuang Real Estate Co., Ltd. has the highest minimum price of 30% equity, about 1.98 billion yuan; Hebei Jihua Runze Property Service Co., Ltd. has the lowest transfer price of 51% equity, only 10000 yuan.
Source: Beijing Equity Exchange
According to the financial report, in 2019, Hebei Jihua Runze Property Service Co., Ltd. has a revenue of 9.4741 million yuan, a net profit loss of 2.1 million yuan, and a negative owners equity of 90500 yuan. According to the financial report on October 31, 2020, although the target company made a profit of 436500 yuan, it was insolvent and the owners equity was 464000 yuan.
Why central enterprises transfer real estate projects intensively?
In an interview with Zhongxin Jingwei reporter, Wang Xiaojia, an analyst of Zhuge housing data research center, pointed out that the intensive transfer of equity by central enterprises mainly lies in the tightening of financing environment. The introduction of three red lines directly affects the financing scale of real estate enterprises, and debt reduction has become a more difficult problem for enterprises; asset selling can quickly recover funds and reduce liabilities; and equity transfer by central enterprises can not only be rapid Reducing debt also strengthens the companys cash flow.
Yan Yuejin, research director of the think tank center of E-House Research Institute, told reporters from China and Singapore Jingwei that there are actually many reasons for such property rights transactions. First, it is not ruled out that some central enterprises do not have much real estate business, but actually transfer some non core assets. Second, if the proportion of real estate business is relatively large, it is also in the relief of capital pressure, especially in the current financial policy tightening situation, real estate enterprises need to optimize financial data. The transfer is equivalent to the withdrawal of funds, which helps to improve the status of funds. Of course, from the actual process, if the frequency of similar transfer is relatively high, it is easy to attract investors attention, including its capital status and other contents.
In Zhang Daweis view, the intensive transfer of central enterprises real estate projects has nothing to do with the new financing rules, and has nothing to do with the market. First of all, the new financing regulations have not yet been implemented; in addition, most of the real estate projects transferred are cooperative projects when enterprises take over the land.
Xie Yifeng, President of China Urban Real Estate Research Institute, analyzes that the intensive transfer of equity in real estate projects by central enterprises is related to the house return order issued by SASAC before, which is a good thing for the development of central enterprises, so they should concentrate on their main business.
Figure: construction site of a real estate project in Beijing. Photo by Zhang Meng
Experts: future property transfer projects may continue to increase
Wang Xiaojia believes that under the new rules, the financing scale of real estate enterprises is obviously limited, the strength of capital support will be weakened, and the industry should pay more attention to its ability to create cash flow and refine its operation. The strategy of real estate enterprises needs to be adjusted, and the equity transfer of real estate projects in the initial stage of adjustment will inevitably increase. Under the tight financing environment, the diversified development strategy will be adjusted. We should abandon the insolvent projects, reduce the cost of the company, and achieve the long-term development of the company. Yan Yuejin believes that the subsequent transfer of real estate projects by central enterprises will increase, and cash is king, which is also to ease the pressure on funds. After the transfer, investment in new projects will not be too passive until next year. Xie Yifeng expected that in the check-out order environment, future property transfer projects or continue to increase. (Zhongxin Jingwei APP) source: Chen Hequn, editor in charge of China News Network_ NB12679
Yan Yuejin believes that the subsequent transfer of real estate projects by central enterprises will increase, and cash is king, which is also to ease the pressure on funds. After the transfer, investment in new projects will not be too passive until next year.
Xie Yifeng expected that in the check-out order environment, future property transfer projects or continue to increase. (Zhongxin Jingwei APP)