On September 6, Caixin reported that the equity auction of an old reform project in Panyu District, Guangzhou has attracted wide attention due to intense bidding.

According to the information from Alibaba's judicial auction website, the 45% equity of Guangzhou Qiyu Real Estate Development Co., Ltd. held by Yihedo Estate was recently auctioned, with a starting price of 4.5 million yuan and an assessed value of about 4.5 million yuan.

It is worth noting that the auction of this asset has sparked fierce competition. After 407 rounds of bidding in a fierce battle lasting 14 hours, it was finally won by Shenzhen Wanhai Qiyu Investment Co., Ltd., a subsidiary of Vanke Real Estate, at a price of 30.015 million yuan, with a premium rate of up to 567%.

It is reported that the main asset under Guangzhou Qiyu Real Estate Company is the "Nanwei" workshop renovation project in Yongkou Village, Dashijie Street, Panyu District, Guangzhou.

"This old reform project being auctioned is not a residence, but an office property. The reason for the intense bidding may be related to the low starting price, as some people may want to buy low and make a profit." an analyst told reporters.

Public information shows that the old reform project is located on Yingbin Road, Dashijie Street, Panyu District, with obvious location advantages. The planned land area of the project is about 0.017 million square meters, and it is one of the 40 old factory transformation projects planned to be completed in Panyu District before 2035.

Previously, Vanke held 55% of Guangzhou Qiyu, while Yihedo Estate held 45%. After this auction, Vanke will hold 100% equity of Guangzhou Qiyu.

During the interview, the journalist learned that the assets auctioned this time originally belonged to Yihai Real Estate. The company's equity was auctioned off mainly due to its tight cash flow and high debt pressure. It chose to withdraw due to funding issues, and Vanke Real Estate took over the project completely.

In fact, since the financial problems and the announcement of the "comprehensive plan," Vanke's land acquisition actions have been closely watched.

At the mid-year earnings conference of Vanke in 2024, the management of Vanke expressed that the company will continue to optimize the asset structure, focus on core business, enhance overall competitiveness and risk resistance through proper asset disposal and resource integration. At the same time, for projects with potential, they will also actively strive to obtain them.

It is reported that the "comprehensive plan" formulated and implemented by Vanke in the first half of 2024 is a comprehensive plan to address potential risks, actively adapt to the five-year plan of the industry's transition to new development models. The specific content of this plan includes: achieving a decrease in overall liability scale; clarifying the three core businesses of comprehensive residential area development, property services, and leased residences; completing the transformation of financing models, etc.

At the mid-term earnings conference, the management of Vanke stated that the above plan has made positive progress. As of the end of July this year, the net interest-bearing debt of the consolidated financial statements plus the supply chain financing has decreased by a net of 17.2 billion yuan from the beginning of the year, and the asset transactions have achieved 20.4 billion yuan (including the asset transactions and REITs issuance of Inli).

In response to investors' inquiries about the company's financial situation and debt arrangements in the second half of the year, the management of Vanke responded that there is only 2 billion yuan of domestic bonds left to be repaid in the second half of the year, and the company will focus on the established business goals, maintain stable sales and receivables, accelerate bulk transactions and equity disposals, and continue to balance income and expenditure rhythm in accordance with the principle of balancing income and expenditure.

Zhu Xu, the secretary of Vanke's board of directors, also stated that the company will continue to carry out asset transactions and REITs issuance to achieve healthy realization of operating assets and actively recover funds. At present, most non-core investments are in the process of negotiation.

Subsequently, on September 6, there was a significant change in the equity structure of Shanghai Songjiang Impressions City. Inli Group sold 48% of the shares of Shanghai Lishi Enterprise Management Co., Ltd. to Singapore's Government Investment Corporation (GIC), while retaining 2% of the shares.

After this transaction is completed, GIC's stake in Shanghai Songjiang Impression City is increased to 98%. This equity change is another deep cooperation between Indus and GIC in the area of high-quality commercial assets, following the MEGA project in Nanxiang Impression City.

'Evergrande will stabilize the scale of bank financing as much as possible and actively transform the financing model, while continuing to seek opportunities such as bank consortium loans and operation-oriented property loans to provide incremental liquidity to ensure the safe repayment of debts,' the management said.

According to the financial report, Vanke's sales amount in the first half of the year reached 127.33 billion yuan, ranking among the top three in 37 cities and maintaining the first camp in the industry. The company achieved sales receipts of nearly 130 billion yuan, with a repayment rate exceeding 100%. From 2023 to the present, the cumulative production capacity of activated and optimized resources is 45.5 billion yuan, achieving a turnover of 8.1 billion yuan. The cumulative sales of activated and optimized resources have reached 14 billion yuan.