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Original title: 2.3 billion lawsuit involving Shandong state-owned assets Yunnan Urban Investment continues to “seek for help” the major shareholder丨Company
Source: China Real Estate News
Liu Wei/From Beijing
Yunnan Urban Investment is facing multiple lawsuits.
On June 6, Yunnan Chengtou Real Estate Co., Ltd. (hereinafter referred to as “Yunnan Chengtou”, 600239.SH) announced the new lawsuit and disclosed the progress of the lawsuit. As of the date of the announcement, the company (including its subsidiaries) had a total of 5 cases in which the company (including its subsidiaries) met the conditions for temporary disclosure and involved litigation progress, with an amount involved of about 2.331 billion yuan.
Among them, one new lawsuit was filed by Yantai Mountain Gao Lingxi No. 1 Investment Center (Limited Partnership) (hereinafter referred to as “Lingxi No. 1”) to the People’s Court of Guandu District, Kunming City for a dispute over a loan contract. The amount involved was about 76.076 million yuan , the People’s Court of Guandu District, Kunming City has accepted the case, and the first instance has not yet opened.
As one of the defendants in this lawsuit, Yunnan Chengtou Longrui Real Estate Development Co., Ltd. (hereinafter referred to as “Longrui Company”), which is also a subsidiary of Yunnan Chengtou, does not have to wait for the court to deal with the lawsuit. Instead, it will be directly stripped of the listing platform.
On June 8, Yunnan Urban Investment announced that it would sell 100% of Longrui Company, and the buyer was Yunnan City, a wholly-owned subsidiary of the company’s controlling shareholder Yunnan Kanglv Holding Group Co., Ltd. (hereinafter referred to as “Kanglv Group”). Investment Kangyuan Investment Co., Ltd. (hereinafter referred to as “Kangyuan Company”).
However, this method of internal movement can only cure the symptoms but not the root cause.Chengtou HoldingsThe capital chain of the shareholder Kanglv Group has been under severe pressure. According to the 2021 annual bond report of Kanglv Group, as of December 31, 2021, the group had overdue non-standard debt of 1.42 billion yuan.
Yunnan Chengtou has been relying on the controlling shareholder blood transfusion to reduce its burden for a long time, but how long can this internal crisis-digesting move last when Kanglv Group is already unable to protect itself? Regarding related issues, the reporter called the office of the secretary of the board of directors of Yunnan Urban Investment, but no one answered the phone.
“The city investment company was originally established to cut with the local government and break the rigid payment of debts. In the market-oriented operation, its own operation and anti-risk ability are very tested. Although there are inherent capital advantages, some city investment companies The operating ability is not excellent.” A financial institution person familiar with the operation of local government debt told reporters.
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The subsidiary involved in the lawsuit divested the listing platform
On June 6, among the many lawsuits involving companies disclosed by Yunnan Urban Investment, most of the lawsuits were loan disputes, and the plaintiffs involved multiple companies. Among them, Lingxi No. 1 in the new lawsuit is a state-owned subsidiary of Shandong Province.
In addition, Yunnan Lancangjiang Industrial Co., Ltd. filed a lawsuit with the Kunming Intermediate People’s Court for a dispute over a real estate development and operation contract, involving an amount of about 518.5101 million yuan; Bank of Communications Financial Leasing Co., Ltd. filed a lawsuit with the Shanghai Financial Court for a dispute over a financial lease contract, involving the case The amount is about 1,388,145,900 yuan; Jiangxi Ruijing Financial Asset Management Co., Ltd. applied to Kunming Intermediate People’s Court for compulsory execution due to a loan contract dispute, and the amount involved was about 218,302,500 yuan; China Huarong Asset Management Co., Ltd. Yunnan Branch The loan contract dispute applied to Kunming Intermediate People’s Court for compulsory execution, and the amount involved was about 130.0154 million yuan.
The company said that it is currently actively communicating with relevant parties to negotiate a settlement plan. Given that the above-mentioned lawsuit is in progress, it is currently impossible to estimate the final impact of the above-mentioned lawsuit on the company. However, if the court subsequently takes measures such as asset disposal of the project involved in the case, it will have a greater impact on the company.
Despite numerous lawsuits, Yunnan Chengtou’s sale of assets to controlling shareholders has continued.
On June 8, Yunnan Chengtou sold three subsidiaries through non-public agreement transfer, namely Yunnan Chengtou Longjiang Real Estate Development Co., Ltd. (hereinafter referred to as “Longjiang Company”) and Mianning Kanglv Investment and Development Co., Ltd. Company (hereinafter referred to as “Mianning Kanglv”), Longrui Company. The receivers are Kangyuan Company, a wholly-owned subsidiary of Kanglv Group, the controlling shareholder of the company.
As a provincial-level urban investment platform, Yunnan Urban Investment, which has been established for more than 20 years, actually holds a large amount of developable land, but many interviewees told reporters that its management and operation level needs to be improved.
Yunnan Urban Investment stated in its annual report that it has a national first-class real estate development qualification. After years of development, the company’s “Rongcheng” is an urban real estate, “Mengxiang” is a cultural tourism and health care real estate, and “Yintai” is a commercial real estate series. It has covered Yunnan, Sichuan, Shaanxi, Zhejiang, Hainan and other provinces. As of the end of 2021, there are 23 existing real estate projects.
A person who has had project cooperation with Yunnan Urban Investment told reporters that in the past cooperation, the company’s investment report on the project’s prospects was too optimistic compared to reality, and many cultural and tourism projects have a long investment return period. Coupled with the role of the epidemic economy, the problems have been exposed one by one.
Relying on blood transfusions from major shareholders is also a routine operation of Yunnan Chengtou. As of June 8, 2022, the balance of the loan principal of Kanglv Group and its subsidiaries to the company was about 13.613 billion yuan; the balance of guarantee provided by Kanglv Group for the company was about 12.159 billion yuan, and the balance of guarantee provided by the company for Kanglv Group 6.195 billion yuan.
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Controlling shareholders “difficult to protect themselves”
Since the reform of the tax-sharing system in 1994, in order to help the construction and development of local cities, urban investment companies have blossomed all over my country and have become products with Chinese characteristics.
According to public information, Yunnan Kanglu is affiliated to the State-owned Assets Supervision and Administration Commission of Yunnan Province and is the first provincial-level state-owned cultural tourism and health care enterprise in the country.
At present, urban investment companies generally have problems such as the lack of separation of government and enterprises, unclear main business, lack of incentive mechanism, lack of market-based selection and employment system, and the loss of technical talents required for core positions. Chen Yurong, deputy general manager of R&D Center of Renda Strategy Consulting Wrote that.
Going back eight years ago, around 2014, Yunnan Urban Investment started its nationalization strategy; since 2016, Yunnan Urban Investment has successively acquired 8 projects of Yintai Group located in Wenzhou, Hangzhou, Ningbo, Chengdu and other places, and invested 24 billion yuan. The total price of “Snake Elephant” acquired Chengdu Metropolis Exhibition. At that time, the company said that it would further build a “leading enterprise” in commercial and residential real estate development in the southwest region and the whole country.
In 2018, Yunnan Urban Investment plans to realize the transformation to “developer + operator”; after the termination of the Jingtong Chengdu exhibition transaction in 2019, Yunnan Urban Investment launched a continuous “downsizing” plan, and its business strategy was also adjusted to “towards industrial real estate.” “Comprehensive transformation of commercial enterprises”, and the model has shifted from planned growth to quality and benefit-oriented growth, striving to become “China’s leader in healthy leisure real estate”.
However, in 2020, Yunnan Urban Investment proposed the establishment of two platforms of “comprehensive urban services” and “tourism services” to transform into a “comprehensive service operator with differentiated competitiveness”.
In round after round of changes in strategic development goals, it is Yunnan Chengtou’s high-level personnel changes.
According to the website of the Central Commission for Discipline Inspection, Xu Lei, the former secretary of the party committee and chairman of Yunnan Urban Construction Investment Group Co., Ltd., was sacked in May 2019 and was double-opened in November of the same year. The total value of the property he received was as high as more than 65.29 million yuan, resulting in a loss of more than 160 million yuan of state-owned assets.
The above-mentioned people believe that Yunnan Urban Investment is mainly a matter of management, operation and decision-making. Project approval is too aggressive. The more projects there are, the greater the room for manoeuvre. The corruption case of Xu Lei, the former chairman of Yunnan Urban Investment Group, was exposed. Bring the problem to the tip of the iceberg.
As of the end of 2021, Yunnan Urban Investment had short-term loans of 256 million yuan, non-current liabilities due within one year of 3.357 billion yuan, and book monetary funds of 552 million yuan during the same period.
And its controlling shareholders are themselves in debt trouble. According to the 2021 annual bond report, Kanglv Group disclosed that the group had overdue debts of 1.42 billion yuan as of December 31, 2021.
On May 10, Yunnan Urban Investment also announced that about 640 million shares of the company (accounting for 39.87% of the company’s total share capital) held by its controlling shareholder Kanglv Group were all waiting to be frozen.
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Responsible editor: Feng Tiwei