[Editor's Note] They are low-key, mysterious, and well-off. They are tenacious and special in cultivating their fields and do not seek to go public. Leju Finance launches a series of bottom-up analysis of "hidden real estate companies" to explore their underwater iceberg stories. This issue focuses on Sansheng Hongye.
Planner: Chen Haibao
Coordinator: Wang Jingbin Wang Caixia
Writer: Fang Hui
Editor: Yu Wei
When it comes to Chinese gardens, many people will think of Greentown China at the first time. In fact, Sansheng Hongye was earlier famous for its garden real estate business.
As early as 1998, Sansheng Hongye began to build the garden real estate brand " Yijingyuan ". Currently, there are more than 50 "Yijingyuan" brand properties across the country, with a brand value of 7.823 billion.
Coincidentally, not only did the two companies start from garden real estate, but the experiences of the founders of the two companies also have many similarities. The founders of Sansheng, Chen Jianming and Song Weiping, were both born in Zhejiang in the 1950s, and both had taught in party schools. The difference was that the former was in the Zhejiang Provincial Party Committee, and the latter was in Hangzhou and Zhoushan .
has a similar starting point, but the gap between the companies created by the two is obvious in terms of popularity and industry rankings.
Turn around "slowly"
In recent years, more and more real estate companies have explored diversified approaches. In addition to its main business of real estate, Sansheng Hongye's tentacles also involve science and technology innovation, big data, financial investment, ocean investment, urban construction and other fields. Zhongchang Data, a subsidiary of Sansheng Hongye, is an A-share listed company, Zhenke Group (renamed: Zhongchang International Holdings) is an H-share listed company in Hong Kong, and Yujing Garden is a New Third Board listed company.
Among many industries, real estate is still the pillar business of Sansheng Hongye. For a long time, the main signature of Sansheng Hongye has been the Yi Jingyuan, which "integrates the essence of Chinese and Western architecture and pioneers home gardens". Judging from past industry development, garden real estate has a long development cycle and relatively high costs, which is not suitable for the high turnover strategy of most real estate companies. Such an environment has both advantages and disadvantages for Sansheng Hongye’s persistence. On the one hand, Sansheng Hongye has a unique approach. Shenghongye persisted for more than 20 years and built a distinctive brand. On the other hand, it missed the golden period of scale expansion.
"There are many forms of gardens in China, but they are not found in thousands of households. Chinese people actually have a special liking for yards and have a deep interest in gardens." Chen Jianming, chairman of Sansheng Hongye, said this These words tell the reason for the birth of the Summer Palace.
But the industry is changing. Sansheng Hongye, which has persisted for 20 years, launched its second product line "Yisheng" series in 2018, corresponding to smart real estate, in order to achieve product innovation under the Internet thinking.
In addition, in recent years, Sansheng Hongye has also made full use of relevant resources such as the Chinese Academy of Sciences and Cybernaut to implement innovative transformation. By getting involved in the construction of science and technology innovation industrial parks, it has implemented the integration of real estate, science and technology innovation parks, high-tech incubation and other industries, and Carry out operations with financial thinking; with the purpose of cultural guidance of industrial improvement, combined with the "Thousands of Enterprises and Thousands of Towns Project", build a new logistics, finance, Internet, innovation and creative platform to create a new urbanization version 3.0; through cooperation, create Intelligent, cultural and health-preserving community. Its three different industrial + real estate + financial ecological chain products are becoming more and more mature, and its development models such as Zhongchang Digital Innovation Smart Valley and Big Data Life Health Care Town are also becoming more and more mature.
Transformation is the general trend, but judging from the node of Sansheng Hongye, it is already half a beat slower than many real estate companies. This may be related to too much focus on the diversified development of enterprises.
The ocean transportation industry, which started almost simultaneously with real estate, is another pillar industry of Sansheng Hongye. Its ocean transportation industry ranks seventh among national bulk shipping companies and second among private enterprises. In addition, the financial industry, construction industry, and big data are all important business sectors of Sanshenghongye. These sectors also form certain synergies with real estate. Sanshenghongye also has layouts in cultural tourism, health, education, culture, medical care, etc.
The unfinished backdoor road
In 2018, Sansheng Hongye achieved a total revenue of 28 billion yuan, a year-on-year increase of 88%. Among them, the real estate sector achieved contracted sales revenue of 16.6 billion yuan, a year-on-year increase of 63%; the non-real estate sector achieved revenue of 11.4 billion yuan, a year-on-year increase of 247%.
As early as October 2017, Chen Jianming, chairman of Sansheng Hongye Investment Group, proposed a strategic development goal of reaching 100 billion in three-year revenue at the group's internal 2017 fourth quarter work meeting and development strategy work meeting.
Previously, Qu Guoming, general manager of Sansheng Hongye Shanghai Regional Company, revealed that in 2019, focusing on the group's strategic goal of "100 billion in three years", we will continue to deepen the real estate sector, ensure sales of 60 billion, and strive for sales of 80 billion.
Judging from the results in 2018, this goal is still very difficult. At that time, Chen Jianming was planning to list his real estate business through a backdoor listing. This goal may have high hopes for the capital market.
On December 22, 2017, Shanghai Sansheng Hongye Investment Group completed the acquisition of Zhenke Group (now Zhongchang International Holdings) for a total consideration of approximately HK$2.017 billion. With this acquisition, Sansheng Hongye also completed the capital market layout for its real estate business. After
completes the acquisition, the listed company is wholly owned by Shanghai Sansheng. According to Qichacha data, the current equity structure of Shanghai Sansheng is: Chen Jianming directly holds 41.45% of the shares, Shanghai Sansheng Real Estate (Group) Co., Ltd. (Sansheng Real Estate) holds 19.96%, Chen Lijun directly holds 18.42%, Shanghai Yan Hong holds 14.17% of the shares and Qingdao Guohai Huihang holds 6%.
Sansheng Real Estate is a structure in which Chen Jianming holds 90% of the shares and Chen Lijun holds 10%. In fact, Chen Jianming’s final shareholding in the listed platform was 63.73%. It is worth mentioning that Chen Jianming is actually Chen Lijun’s brother-in-law.
According to the annual report of Zhongchang International Holdings, as of December 31, 2018, the company achieved revenue of HK$32.787 million, compared with HK$47.241 million in the previous fiscal year; profit attributable to the company’s owners was HK$17.341 million, compared with HK$47.341 million in the previous fiscal year. The profit attributable to owners of the company for the financial year was HK$20.702 million. The announcement stated that the decrease in revenue was mainly due to the adverse impact of the sale of two investment properties and the shortening of the reporting period to nine months. The decrease in net profit was mainly due to the fact that the reporting period was only nine months, which was shorter than the full year of the previous fiscal year.
As of the close of trading on July 5, the closing price of Zhongchang International Holdings was HK$0.97 per share, with a total market value of HK$1.091 billion. It has shrunk by nearly half from the original purchase price.
According to public reports, Sansheng Hongye has more than 3,000 acres of land reserves in first- and second-tier cities such as Shanghai and Guangdong. In addition, there are also many third- and fourth-tier cities such as
Zhoushan, Foshan, Shenyang, Ningbo , Zibo , and Chuzhou. In 2018, Sansheng Hongye signed agreements with Tianjin, Wuhan, Shenyang, Qingdao, Chongqing, Zhoushan and other places to reach cooperation intentions in building big data science and technology innovation parks. In addition, there are plans to build a film and television cultural tourism town, a cultural tourism and wellness town in Wuhu , and a Wubaoshanshui cultural tourism town in Chongqing.
"Yangming Fan" Chen Jianming
Why is it called "Three Shenghong Industry"? Chen Jianming once said, "We firmly believe that the personal interests of employees are closely related to the development of the company, and the fate of the company is closely related to the development of the country. Only with the strength of the country can the company prosper and individuals have a bright future."
Before 1992, Chen Jianming's job was teaching in the Economic Teaching and Research Section of the Party School of the Zhejiang Provincial Committee and working in government agencies. This experience also laid a good political and business foundation for his entrepreneurship. After entering business in 1992, Chen Jianming successively established Zhoushan Zhongchang Shipping Co., Ltd., Hangzhou Sansheng Real Estate Co., Ltd., Shanghai Sansheng Real Estate Co., Ltd., and Shanghai Xingming Real Estate. Co., Ltd. and more than ten companies. Chen Jianming, who came out of the
system, knows how to deal with the government. Since starting his business, it can be seen from many reports that Sansheng Hongye has a harmonious political and business relationship.
The previous coaching experience has also given Sansheng Hongye a deep-rooted cultural atmosphere in its corporate genes. Under the leadership of Chen Jianming, everyone in Sansheng Hongye Group is a "Yangming fan", and many employees have books related to Yangming's philosophy on their desks.
Wang Yangming was a famous philosopher, thinker, politician and military strategist in the Ming Dynasty. How to better manage enterprises, Chen Jianming drew nutrients from "Yangming Studies". On the surface, an enterprise is a business entity that pursues profits, but in essence it is a place of spiritual practice.Managers and employees must practice conscience. The beautiful result of this practice is the Confucian "inner sage" and "outer king", which achieve a harmonious and organic unity in excellent managers and employees. Within the company, the employees who gain the most must be those with excellent conduct, consistent appearance and appearance, and the courage to take on responsibilities. In the market, the companies with the most profits must be those that satisfy customers, have excellent management, and dare to assume social responsibilities.
In the current market environment, most real estate companies are actively transforming and upgrading. How to transform? "Things determine the way out", this is a saying that Chen Jianming often says. Facing the development wave of the "Internet +" era, in Chen Jianming's view, it is not only necessary to use Internet thinking to transform enterprises, but also to expand real estate crowdfunding, real estate customization, Internet finance and other businesses.
Facing the new "wind outlet", Chen Jianming revealed that Sansheng Hongye is actively brewing to create a 3.0 version model of new urbanization construction with "four platforms" (full industry chain platform, Internet platform, financial services platform, innovation and entrepreneurship platform) A new industrial model as a means.
"We don't want to be pigs in the wind, but eagles in the wind!" Chen Jianming set a goal for himself.
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