Pengpai News reporter Ji Simin
htmlOn August 18, Southern Weekend published an article titled "The CEO of Eggshell Apartment is investigated, involving 600 million state-owned assets." The article pointed out that the investigation of Eggshell Apartment CEO Gao Jing is suspected to involve state-owned assets. At the same time, the operating procedures of the subsidiary jointly established by Eggshell Apartment and Kunshan Yinqiao Holding Group Co., Ltd., wholly owned by Kunshan State-owned Assets Supervision and Administration Commission are not in compliance with regulations, and the 600 million yuan of state-owned assets invested by Yinqiao Holdings are at risk of loss.In response to this, Eggshell Apartment responded, "The report is seriously untrue. All operating procedures of Eggshell Apartment and Yinqiao Company are legal and compliant, and relevant contracts have been signed. So far, Eggshell Apartment has not received any inquiries or questions from partners or local governments."
The cooperation between Eggshell and Kunshan Yinqiao Company mentioned on the Southern Weekend originated in March this year. On March 18 this year, Eggshell Apartment issued an announcement stating that it signed a strategic cooperation agreement with the Management Committee of Huaqiao Economic Development Zone, Kunshan City, Jiangsu Province. Eggshell Apartment will establish a wholly-owned subsidiary Shanwutong Co., Ltd. (referred to as "Shanwutong") in Kunshan City, Jiangsu Province. The company will jointly establish a joint venture with Kunshan Yinqiao Holding Group Co., Ltd. (hereinafter referred to as "Kunshan Yinqiao Company"), a subsidiary of the Management Committee of Kunshan Huaqiao Economic Development Zone, Jiangsu Province.
It is reported that the registered capital of the joint venture is RMB 1.225 billion, of which Shan Wutong invested RMB 625 million (holding 51.02% of the shares), and Kunshan Yinqiao Company invested RMB 600 million (holding 48.98% of the shares). The company's registered capital will be used for the in-depth cooperation between the two parties in the field of long-term rental apartments in the future.
According to the agreement, Shan Wutong and Kunshan Yinqiao Company shall not transfer their respective equity in the joint venture within eight years after completing the investment in the joint venture. After 8 years, Kunshan Yinqiao Company has the right to require Shan Wutong or its designated party to repurchase all equity in the qualified enterprise for 600 million yuan plus the corresponding interest. At the same time, Kunshan City will also provide Shanwutong with a series of preferential and support policies, including talent settlement and connection with local banks.
However, Southern Weekend report quoted people familiar with the matter as saying, "This investment does not comply with the normal investment decision-making process. State-owned equity investment management requires due diligence and feasibility study. Yinqiao Holdings did not do these two necessary procedures."
At the same time, the above-mentioned person familiar with the matter said that some terms of the investment agreement signed by Eggshell Apartment and Shan Wutong are not conducive to the protection of state-owned assets. For example, Eggshell promised to spend 600 million yuan on long-term rental apartments, the methods used include but are not limited to directly obtaining long-term rental apartment assets by joint ventures, and joint ventures obtaining long-term rental apartment assets through investment funds. But "including but not limited to" actually makes the agreed investment scope useless. In addition, 600 million uses monitoring is also difficult to achieve. After investing 600 million yuan in Shanwutong, Shanwutong will soon inject a newly established Eggshell fund and then invest in various project companies through the fund.
Industrial and commercial data show that on April 9, Kunshan Hongsenhuai Equity Investment Partnership was established. Among them, GP is two Eggshell affiliated companies, each investing 1 million yuan, and LP is Shanwutong, with an investment of 1.225 billion yuan. This fund will be responsible for the investment in Eggshell's specific projects. According to the plan, Eggshell hopes to establish a centralized long-term rental apartment equity investment fund with a total scale of 8 billion yuan in Huaqiao, with the initial fund size of no less than 3 billion yuan. This is considered that Huaqiao's state-owned assets have become the leverage of Eggshell to leverage greater social capital.
In addition, the article also mentioned that Jiang Chunming, chairman of Yinqiao Holdings, has been investigated by the Discipline Inspection Commission. In addition, the legal representative of Kunshan Yinqiao Venture Capital Co., Ltd., a wholly-owned subsidiary of Yinqiao Holdings, which truly took out 600 million yuan of investment funds, Wang Yingxiao and Wang Jingjing, the deputy general manager in charge of investment matters, were also investigated by the Discipline Inspection Commission. The three of them were investigated just a few days before and after Gao Jing was taken away.
In response to this, Eggshell Apartment responded, "In terms of cooperation with Yinqiao Company, Eggshell Apartment, as a New York Stock Exchange listed company, has disclosed relevant content publicly to US Securities and Exchange Commission (SEC) on March 18 in accordance with compliance. All operating procedures of Eggshell Apartment and Yinqiao Company are legal and compliant, and have signed relevant contracts. So far, Eggshell Apartment has not received any inquiries or questions from partners or local governments."
In addition, regarding Gao Jing's investigation, Eggshell Apartment issued an announcement on June 18, "Gao Jing's investigation was related to personal issues, related to the personal business investment he had participated in before, and had nothing to do with Eggshell Apartment. The company's current business and business activities are normal. "
According to the arrangement of the Eggshell Apartment Board, during the period when Gao Jing was not in the company, the board of directors reassigned all of Gao Jing's responsibilities within the company to Cui Yan. In addition to serving as the company's director and president, Cui Yan will also serve as the company's interim CEO.
From the article " Huaqiao International Business City Release" of the official WeChat account of the Management Committee of Kunshan Huaqiao Economic Development Zone (Jiangsu International Business Center) in Jiangsu Province, Eggshell Public Yu is a key project introduced by Huaqiao Economic Development Zone Management Committee.
Huaqiao Economic Development Zone Management Committee’s official Weibo account recently published an article about Eggshell Apartment in May this year. The article “Dare to venture and fight, and make precise efforts! Huaqiao strives to be the "pioneer" of investment promotion" mentioned, “With the huge response caused by the new capital investment promotion model in the industry and the pursuit of victory and continuous efforts, our district has successively gone to Beijing, Hangzhou, the United States, Japan and other places to carry out investment promotion activities, accurately breaking through a number of flagship leading projects. Krypton Space National Headquarters... Eggshell Apartment Investment Headquarters settled one after another..."
Earlier, the "Early Creation of "Shanghai Not Shanghai" released in March this year! Wu Xinming's Research in Huaqiao Economic Development Zone" mentioned that as of February 26, 164 key practical projects with a total investment of over 8.5 billion yuan have been fully launched. At the same time, through various methods such as "face-to-face" and "screen-to-screen" projects, a number of flagship projects such as Eggshell Apartment Investment Headquarters and Didi Chuxing Operation Headquarters are currently being steadily promoted.
Industrial and Commercial Data shows that Eggshell Apartment, established in 2015, provides rental housing Asset management and residence service platform for life. As of March 31, 2020, Eggshell Apartment entered 13 cities across the country, with the number of operating apartments being 419,000, an increase of 46.8% year-on-year. Among them, the number of apartments operated in Beijing, Shanghai and Shenzhen was 207,000, and the other cities were 212,000.
Eggshell Apartment was officially listed on the New York Stock Exchange on January 17 this year, with the stock code "DNK", which is the second domestic long-term rental apartment brand to be listed in the United States.
Editor: Liu Xiuhao
Proofreading: Ding Xiao
