Shirong ZhaoyeLeung Ka-wing, the founder and chairman of, has resigned.
On December 16, 2019, Shirong Zhaoye issued an announcement stating that Mr. Leung Ka-wing applied to resign as director and chairman due to personal reasons, and also resigned as chairman of the Board Strategy Committee. After his resignation, Mr. Leung Ka-wing will not hold any position in the company.
Shirong Zhaoye, surnamed Liang, is an uncompromising family business.
Liang Jiarong, Liang Shezeng (father of Liang Jiarong), and Shigatse Shirong Investment Management Co., Ltd. (Liang Shezeng Company) hold a total of 74.09% of Shirong Zhaoye's shares.
It is certainly surprising that the actual controller of a family business resigns.
But in fact, the actual controller of the listed company has been gone for quite three years.
If you read Shirong Zhaoye's annual financial statements from 2016 to 2018, there will always be a prominent table at the beginning.
This means that the chairman, Leung Ka-wing, has not attended the board meeting of Shirong Zhaoye for three consecutive years.
Let's start with 2016.
On July 20, 2016, Shirong Zhaoye just experienced a wave of personnel turmoil, and several executives left their jobs. Leung Ka-wing of the company that has been under the control of the company behind the scenes for a long time was forced to take office, but within a month, Leung Sai-wing was under surveillance at the designated residence by the public security authorities due to suspicion of money laundering.
There have been no public developments in the case to date. However, when the chairman of a listed company started this kind of business, it also showed that there was a problem with Shirong Zhaoye's main business.
Shirong Zhaoye, formerly known as Zhuhai Well Medical Devices Co., Ltd., was listed in 2004. Its main business is the production and sale of medical devices.
On February 25, 2008, Shirong Zhaoye completed a major asset restructuring and changed its main business to real estate development and management.
The person leading this restructuring was Leung Ka-wing. He was 46 years old at the time. Everyone called him Mr. Leung.
However, 20 years ago, Mr. Leung also had the nickname “Boy of the World,” meaning “young man who broke into the world.”
After winning the first pot of gold in Macau, Leung Ka-wing successfully purchased a large amount of land reserves from the Zhuhai government at low prices during the real estate regulation period in 1995.
According to Shirong Zhaoye's announcement, the land use rights for the plot where the Riviera property is located were sold through an agreement in 1996. At that time, the land concession fee was 70-90 yuan/square meter, and the residential floor price had already risen to 1,100 yuan/square meter in 2008. In November 2013, the average price of 120-140 square meters of three or four rooms on the Riviera was 7,500 yuan/square meter.
According to an executive of Shirong Zhaoye, Shirong Zhaoye obtained land reserves of about 2.5 million square meters in the Doumen area of Zhuhai in 2000. Currently, it has about 2.8 million square meters of equity construction area that can be settled.
Looking back now, in those days, Leung Ka-wing was the bearer of Doumen in Zhuhai.
But if the good news continues until now, this article won't exist.
The vast land reserves of Zhuhai, the core city of the Guangdong-Hong Kong-Macao Greater Bay Area, the earliest batch of listed real estate companies, excellent financing conditions in Guangdong Province, and a hot real estate market...
Various advantages have been maintained, but more than 10 years have passed, and Leung Ka-wing and his fortune have had ups and downs, making it difficult to break through.
Looking through Shirong Zhaoye's financial reports for the past ten years, almost no new land has been added, and all of the projects are just being developed and built around the Riviera.
From 2008 to 2012, during Liu Jingdong's time. The first phase of the Zhuhai Riviera project has been completed. Other than that, no new land plots have been added.
From 2012 to 2016, during the Yan Jun period. Shirong Zhaoye thought about expanding abroad during this period, taking over land in Beijing through share acquisitions and planning to develop a “business resort for multinational company CEOs.” But seven years have passed, and there has been no movement. Brother Fang saw from his annual report that Shirong Zhaoye's main energy during this period was still continuing to develop other properties in the Riviera market.
From 2008 to 2016, the deducted non-net profit of Shirong Zhaoye never exceeded 0.1 billion yuan, and the pace of development was too slow.
The turning point came in 2017.
With the late settlement of the Riviera project and the introduction of the Greater Bay Area, housing prices in Zhuhai skyrocketed, and the gross margin and net margin of the project increased markedly. As the company's transformation plan progresses, real estate projects will be eliminated at an accelerated pace, and the Riviera market will provide rich profit guarantees for the next 2-3 years.
A good harvest is imminent. The main character appeared. Leung Ka-wing took her 26-year-old son Leung Wai-ho from behind the scenes to the front stage. At the same time, a large number of executives left their jobs one after another, including Yan Jun, the previous president. There is no way to verify whether it is active or passive, but for the Leung family's father and son, the timing was just right.
As soon as he took office, Shirong Zhaoye handed over impressive financial results.
In 2017, Shirong Zhaoye's net profit exceeded the 100 million yuan mark. Net profit was 0.913 billion yuan, up 823.4 percent year on year, and operating income was 3.105 billion yuan, up 116.7% year on year. The first three quarters of 2019 achieved operating income of 2.165 billion yuan, an increase of 53.43% year on year; net profit attributable to shareholders of listed companies was 0.749 billion yuan, an increase of 30.60% year on year.
Amidst all the joy, what was surprising was that Leung Ka-wing had an accident.
What is even more surprising is that Shirong Zhaoye went up and down on the same day. Under the drama, there are too many details to think about.
In three years, all I could see on the news was her son Leung Wai-ho and Vice President Yu Jin, but Leung Ka-wing had disappeared from sight.
Having just embarked on the right track of development, Shirong Zhaoye experienced its second personnel crisis this year.
Leung Wai Ho resigned as a non-independent director, vice chairman and president.
Zhou Haoxin resigned as shareholder representative supervisor and chairman of the board of supervisors.
Yu Jin resigned as a director, vice president and financial director of the company.
Leung Ka-wing resigned as the company's chairman.
The new chairman was replaced by Leung Ka-wing's old boss, Zexin next week. On the second trading day after the news broke, Shirong Zhaoye dropped 3.28%, and its trading volume also reached its highest value in nearly half a year.
It is not unreasonable for the capital market to look down on Shirong Zhaoye.
Shirong Zhaoye, which is deeply involved in the Riviera, hasn't added a new plot of land for several years; while the “Big Health” business in Hengqin, which was highly anticipated in 2016, quietly stopped in 2017; shares in the Weihai and Beijing projects have already been sold; looking at the plot of land that was only 2000 years old from beginning to end.
The old ones will eventually run out. Meanwhile, the loss on the financing side also restricted Shirong Zhaoye's acquisition of land.
By observing Shirong Zhaoye's 2015-2018 mid-year financial report, the funding cash flow was basically negative or slightly corrected.
However, after the increase failed due to missed time in 2015, Shirong Zhaoye never tried additional financing.
To acquire land in the Greater Bay Area where floor prices are constantly rising, Shirong Zhaoye will have to make great efforts. But if you're not in Guangdong, where can you go?
As a family business, Shirong Zhaoye is facing one of the biggest personnel crises in the company's history. The largest shareholder, Liang Shezeng, is over 80 years old and has never managed the company. Chairman Leung Ka-wing is unknown, and Leung Wai-ho, a young boy from the 90s, also resigned this year.
It is true that de-familization is popular in the industry, but the current de-familization of Shirong Zhaoye came too suddenly. How will Shirong Zhaoye get through this cold winter with the sudden evacuation of the Leung family?
No room · Matrix