Continuing the hot streak of 18 property service companies going public last year, at the beginning of this year, even Century Jinyuan , which has disappeared from the industry for a long time, will apply for an IPO for its own property company in Hong Kong.
Real Estate Capital Theory found that on April 14th, Tianyancha showed that the parent company of Century Financial Services and Beijing Overseas Chinese Federation Building were involved in an equity transfer dispute as defendants and were sued by Qiaonuo Investment. The case was announced and heard by the Beijing Higher People’s Court. The number is (2021) Jingmin Final No. 243, and the court session will be held on the same day.
Century Jinyuan Service itself is still involved in litigation after applying for an IPO. On February 25, one of its main operating companies, Century Yihe Property Services Group, was listed as the person subject to execution by the Guiyang Guanshan Lake People’s Court. According to information from Tianyancha, Century Jinyuan has prosecuted and been prosecuted in more than 1,300 judicial cases.
In addition to the troubles of lawsuits, Real Estate Capital Theory found from the prospectus of Century Financial Services that in 2019 and the first three quarters of 2020, its revenue was 1.059 billion yuan and 861 million yuan respectively, with year-on-year growth rates of 14.8%. and 13.1%. The performance growth rate is not only far lower than the industry average (according to the latest annual report data, the average revenue growth of 39 Hong Kong-listed property service companies in 2020 will exceed 50%), but is also contrary to the overall development trend of the industry. This It also casts a shadow over its IPO.
In fact, Huang Rulun, the founder of Century Jinyuan, was involved in an official bribery case and gradually withdrew from the company, handing over the equity and management rights to his sons Huang Tao and Huang Shiying. Driven by Huang Tao, a second-generation speaker, Century Jinyuan is launching an impact on the capital market from multiple directions, including the IPO of property companies and investing in Wantong Technology . However, there are many obstacles and three major hidden dangers, and the results are unpredictable.
[1] Three major concerns about Century Gold Source Services
Century Gold Source Services is the first sector of the "Century Gold Source Series" to be launched into the capital market. Brothers Huang Tao and Huang Shiying hold a total of 92% of Century Financial Services through indirect shareholdings and family trusts.
Century Jinyuan Services’ revenue in the past three years has been around 1 billion yuan. As of the end of the third quarter of last year, the total contracted construction area reached 74.1 million square meters, and the total construction area under management reached 63.9 million square meters. It ranks among the currently listed property companies. Mid-range level.
Century Jinyuan Services has three major hidden worries that are worthy of attention:
Worry 1: Over-reliance on blood transfusions from the parent company
Like most property companies that were born out of real estate companies, the performance of Century Jinyuan Services mainly relies on the "blood transfusions" of the parent company. From 2018 to the first three quarters of 2020, the properties developed by Century Golden Resources accounted for 91%, 75.1% and 74.7% of the construction area under management of Century Golden Resources Services respectively. The revenue generated accounted for 97.6%, 89.3% and 82.9% of the total property management service revenue respectively.
The prospectus also shows that the largest customers and suppliers of Century Jinyuan services are Century Jinyuan Group.
Undoubtedly, over-reliance on the parent company is the biggest concern of Century Golden Resources Services. This will lead to two risks: On the one hand, even if a material company is independently listed, its business development will still be driven by the parent company to a large extent, and the operation of the unlisted parent company is not transparent, making it difficult for small and medium-sized investors to judge the direction of the company's performance. It is very unfavorable; on the other hand, the strong relationship with the parent company will inevitably affect the allocation of business resources, which will be detrimental to the expansion of the independent third-party market business and will cause insufficient future growth.
Hidden worry two: The large-cap model has high returns and high risks.
Century Golden Resources Service said that benefiting from the large-cap projects that Century Golden Resources is good at, the profitability of Century Golden Resources Services is at the forefront of the industry. From 2018 to the end of the third quarter of 2020, the gross profit margin of Century Financial Services was 32.1%, 31.8% and 37.6% respectively, which was higher than the average of the top 100 property companies.
html How big is the market size of Century Jinyuan? Some people in the industry jokingly said that the development of 10 projects by Century Jinyuan can equal Vanke ,200.
The prospectus shows that the 12 Century City projects developed and delivered for management by Century Jinyuan Group have a total construction area of approximately 44.4 million square meters, and the average construction area under management is approximately 3.7 million square meters, of which 5 projects are under management. The construction area exceeds 4 million square meters. So many large markets do produce economies of scale.
From the perspective of real estate capital theory, the market model that Century Financial Services is proud of is its second biggest concern. Because the market is ever-changing, there cannot be no market, let alone all market markets. Although the market is good, if one of them is missing, it will have a great impact on the business. This is a risk, especially for sensitive capital markets.
Century Jinyuan Services has established owners committees in 27 residential properties under its management, accounting for only 16.8% of the total 161 residential properties under management. Nowadays, various parts of the country are rapidly promoting the establishment of owners' committees. That is to say, at a time when the Civil Code gives owners' committees greater rights to dismiss property companies, the retention rate of projects served by Century Financial Resources will face many challenges. Once the retention rate of large-cap projects decreases, it may significantly affect the company's performance.
Concern 3: The growth of value-added services is showing signs of weakness
Century Jinyuan Services currently has two major segments: property management services and value-added services. Among them, property management services account for the majority, and value-added services account for a lower proportion. Revenue growth has begun to show signs of weakness. .
In 2018, 2019 and as of September 30, 2020, the revenue generated by value-added services was 230 million yuan, 240 million yuan and 168 million yuan respectively, accounting for 25.2%, 22.7% and 19.5% of the total revenue respectively. There was no significant growth, but a downward trend.
Property Market Capital Theory believes that over-reliance on the parent company, ineffective expansion of third-party markets, increasing risks in the market model, and continued growth in value-added services will all increase uncertainty about whether Century Financial Services can be successfully listed.
[2] The main business of the parent company was stagnant for a time
As can be seen from the above analysis, the scale expansion of Century Jinyuan's services depends on the business development of the parent company Century Jinyuan Group. So what is the current situation of Century Jinyuan?
Property Market Capitalism After opening the official website of Century Jinyuan, the first thing that caught our eyes was a special "false use statement". Someone was defrauded of 149,000 yuan for downloading the "Century Golden Source" APP. This had nothing to do with Century Golden Source.
Reminiscent of Tianyancha’s court opening announcement, it seems that Century Jinyuan has been in a lot of troubles recently. According to the official website of
, Century Jinyuan Group was established in 1991 and is a comprehensive cross-industry group. It has pillar industries such as real estate development, hotel culture and tourism, large shopping malls, property life services, medical care and health, and involves business formats such as children, education, consumer Internet and financial investment. It has invested 258 billion yuan in mainland China and paid Various taxes have reached 44.7 billion yuan, and donations to public welfare and charity have exceeded 6.3 billion yuan.
Most people know that Century Gold Resources mainly through real estate, hotels, especially charity news.
Huang Rulun
html Huang Rulun, the founder of 3rd Century Jinyuan, found a way to keep his wealth snowball rolling, which is to free up one hand to do charity. Wherever Century Jinyuan's real estate territory expands, Huang Rulun's charity money will be spread wherever it goes.
For example, in Beijing, in 2002, he donated 16.918 million yuan to Renmin University of China; in 2003, he donated 14 million yuan to the Beijing Municipal Government and the Haidian District Government to fight against SARS, and donated 10 million yuan to build Peking University School of Government , in 2004, donated another 13 million yuan to Renmin University to build Rulun Lecture Hall. In Yunnan, 181.6 million yuan was donated to public welfare and new rural construction, 10 million yuan was donated to the Education Department, 5 million yuan to the Public Security Department, and 10 million yuan to the Tengchong County Finance Bureau.
Beijing Century City
In this way, Huang Rulun has the iconic project "Century City" that is famous in Beijing, covering an area of 1.76 million square meters between the third and fourth rings in the west of Beijing, and also left 6 million square meters of Century City and Guiyang. Century City in Kunming covers an area of 4.8 million square meters, as well as landmark projects exceeding 4 million square meters in Changsha, Hangzhou, Hefei, etc.
At the same time that Century Jinyuan ranked among the top ten real estate companies in the country in 2009, Huang Rulun also ranked first in China's charity list for many years.
When all the money is used up, the friendship will be exhausted. This sentence can be said to be a true portrayal of Huang Rulun, the founder of Century Jinyuan. But all of this came to an abrupt end in 2017.
According to local media reports, Huang Rulun was dismissed from his post in June 2017 due to suspicion of bribery.
Huang Rulun’s work inspection
Huang Rulun became more and more low-key, and the development of Century Jinyuan’s main real estate business also seemed to have stagnated. As of the end of 2017, the total assets of Century Jinyuan Investment Group Co., Ltd. were 80.953 billion yuan, a year-on-year decrease of 10.81%. Century Jinyuan Investment Group's 2018 interim report showed that its total assets dropped again to 78.6 billion yuan. The official website of
shows that the latest project information for sale was in May 2018.
By January 2018, Huang Rulun signed an "Equity Transfer Agreement" with his sons Huang Tao and Huang Shiying respectively. Huang Rulun transferred his 50% and 30% equity interests in the company respectively. Transferred to Huang Tao and Huang Shiying. After the completion of this equity transfer, Huang Tao and Huang Shiying held 60% and 40% of the company's equity respectively, and the actual controller of the company was changed from Huang Rulun to Huang Tao.
As the saying goes, mountains will fall if you rely on them, but you will run if you rely on everyone. Real Estate Capital believes that the unexpected changes in Century Financial Resources will inevitably have an unforeseen impact on the service development of Century Financial Resources, which relies heavily on it, and is worthy of investors' attention.
[3] Huang Tao prefers capital operation
After Huang Rulun handed over power, his son Huang Tao became the new group speaker.
According to media reports, Huang Tao is Huang Rulun’s deliberately cultivated successor. He was born in 1976 and has permanent residency in the Philippines.
Huang Tao
Under the leadership of Huang Tao, the "Century Jinyuan Department" is showing a strong interest in the capital market. Even before Century Jinyuan Services applied for an IPO, it was fiercely competing for the actual results of A-share listed companies Wantong Technology Known for control.
On April 7, Wantong Technology received a letter of concern from the Shenzhen Stock Exchange again. This is the fourth time that Anhui Technology has received a letter of concern from the Shenzhen Stock Exchange since the equity dispute broke out. Previously, it also received three regulatory letters from the Anhui Securities Regulatory Bureau.
The actual controllers of Tibet Jingyuan are the two brothers Huang Tao and Huang Shiying. Since March 2020, the internal strife of Wantong Technology has intensified, and the actual controller of the original controlling shareholder Nanfang Yingu was removed from the position of chairman of the listed company. At almost the same moment, Tibet Jingyuan of the Huang family held up a sign for Wantong Technology . In the ensuing battle for the capital of Wantong Technology , Tibet Jingyuan continued to increase its holdings, until recently it was shown that it held 18.16% of the shares, and has become the largest shareholder of Wantong Technology .
Anhui Technology equity battle, and did not let the stock price out of a wave of magnificent market conditions. Instead, investors took a breath of cold air: the company's performance was in the red for the first time in 11 years since its listing, with an expected loss of 130-250 million yuan, a year-on-year decline of 177.12%-248.30%. At the same time, the company staged an "all-out campaign" and changed its chairman three times in two months. The major shareholder and the second shareholder are fiercely competing over who should be the chairman and who should join the board of directors.
Some self-media broke the news that on August 8, 2020, the High-tech Branch of the Hefei Municipal Public Security Bureau made a decision to file a criminal case on the grounds that Zhou Fafa was suspected of embezzling 200,000 yuan for his job. After a 22-day investigation, he was found guilty because of no criminal facts, the case was dismissed.
In fact, Huang Tao, who once claimed that he was not interested in the capital market, is now fiercely involved in the A-share Anhui Technology , and on the other hand, in addition to promoting the listing of Hong Kong stocks of Century Financial Services, at the end of 2020, Huang Tao and Huang Shiying controlled Tengyun Investment also participated in the private placement of CITIC Construction Investment.
Currently, Tengyun Investment holds 2% of CITIC Construction Investment, ranking among the top ten shareholders. Huang Tao also holds 9.11% of the shares of China International Capital Corporation and 11.88% of the shares of Xinming Life Technology, a company listed on the Hong Kong stock market, as well as 11.65% of the shares of ABC Life Insurance Co., Ltd.
From the perspective of real estate market capital theory, the development of the real estate market has already put higher requirements on product and service capabilities, which requires the full commitment of enterprises from top to bottom. Now the helmsman Huang Tao is facing a diversified development group. , and also particularly prefers to ride in the capital market, it has to make people wonder, can Century Financial Resources' services be deeply concerned by the boss?
Professional skills attract the attention of capital more.
Today, as one of the new financing channels of Century Jinyuan Group, Century Jinyuan Services, which has risks in its core performance indicators, cannot rely on the parent company to grow rapidly, nor is it a business segment that the new helmsman will obviously favor. In the future Whether it can successfully land on the Hong Kong stock market and achieve better development deserves continued attention.
