Speaking of Fujian housing enterprises, Shimao,Sunshine City, Xuhui, Zhengrong, Taihe, Rongxin suddenly thought that when they one after another crossed the threshold of hundreds of billions of sales scale, Zhongjun Group, as a non-typical Fujian real estate enterprise, was still struggling to climb the slope.
Finally, Huang Chaoyang, the head of Zhongjun, who has always been a "Buddhist", decided to get rid of the shackles and keep up with the "little buddies" of Fujian. Unexpectedly, the industry suddenly changed, under the wave of deleveraging, Zhongjun Group was not the first to break through hundreds of billions of sales, but hundreds of billions of debt.
Huang Chaoyang must feel aggrieved. He persisted in "something to do and something not to do" for more than 20 years, but just unloaded his inner burden and lifted up his sleeves to give it a try, he was poured cold water on the trend of the turn.
The industry has become a trend, but Zhongjun is radical against the trend, so它Whether the market will turn over or the boat will turn over is a question.
The low-key "Land King" in the dust
"the biggest feature of Zhongjun is that it has no characteristics and has been silent all the time. If you look at its expansion in recent years, it looks a bit like a mini version of Xuhui."This is what a real estate person who has worked for many years said of Zhongjun.
Indeed, Zhongjun is hard to be labeled. As a Fujian real estate company, it is not radical; looking at the real estate industry as a whole, it is not conservative.
Perhaps this has something to do with the character of Huang Chaoyang, founder of Zhongjun. As a child of returned overseas Chinese in Indonesia, Huang Chaoyang returned to his hometown to start a business a long time ago. He has always had his own principles, and "to be a man should have something to do and not to do" is his entrepreneurial motto.
In business management, unlike Taihe, which allows professional managers to develop like unboiled water, nor as keen on poaching as Sunshine City, Huang Chaoyang obviously trusts his own family more.
Within Zhongjun Group, Huang Chaoyang and his sons Huang Lun and Huang Tao are the core of the management of the entire group, and many of the senior executives of Zhongjun are related to Huang.
In fact, in Fujian business enterprises, the core of enterprise power composed of patriarchal relations is not uncommon, and the form of family business is understandable. However, compared with most Fujian businessmen who believe in "love to fight to win", Zhongjun Real Estate controlled by the Huang family appears to be very "Buddhist".
Although it has been established for 33 years and has been on the Hong Kong Stock Exchange since 2010, Zhongjun Group has always lacked a sense of existence inside and outside the industry. In 2017, when a list of the sales targets of Fujian real estate companies came out, people found that there was still a place for Zhongjun in the latter part of the list.
Xuhui 88 billion yuan, Taihe 71.2 billion yuan, Zhengrong 61.8 billion yuan, Rongxin 59 billion yuan, Rongqiao 46.6 billion yuan. In that year, Jun's sales target was 28 billion yuan.
However, recently, this low-key to the dust of the real estate company has jumped into the public eye because of the Xiamen Land King project. In April this year, when the entire real estate market was still immersed in the regulatory atmosphere of the impact of the epidemic and deleveraging, Zhongjun opened the "Land King model".
On April 22, in the bidding of Rongchuang, China Shipping, Greentown and other real estate enterprises2020P01 block, Siming District, XiamenIn the end, the little-known Shanghai Taming Trading Co., Ltd. was acquired at a price of 10.355 billion yuan, with a floor price as high as 50599 yuan per square meter.
Shanghai Taming's controlling shareholder is Fujian Zhongjun Real Estate, that is, the secondary subsidiary of Zhongjun Group.Perhaps out of the consistent "no obvious mountains and no dew" style, Zhongjun Group once flatly denied that "borrow a vest to win the Land King."
A real estate practitioner said to a little bit of finance and economics.Along with Zhongjun, there are also a number of Fujian consortia who filmed the "Land King" in Xiamen.。
In fact, it is also a consensus in the industry for Fujian enterprises to form a group. Zhongjun was supported by many local capital predators when it went public, such as $10 million invested by Xiangyu Group, a state-owned enterprise in Fujian, and Ding Shizhong, president of Anta Group, who personally invested $15 million.
The hidden worry of counter-trend expansion
The filming of "Land King" in Xiamen is only a microcosm of Zhongjun's active expansion. In fact, since 2017, Zhongjun如Wake up from a big dreamUnder the influence of the spring tide of the industry, we will change our previous style and try our best to fight for the scale.
As at the beginning of 2019Jinke sharesChairman Jiang Sihai said, "small but beautiful is not good, it must be big and strong." Zhongjun, which used to attach great importance to profits, turned to "bigger and stronger".
As a result, Zhongjun's contract sales expanded from 23.524 billion yuan in 2016 to 80.501 billion yuan in 2019, and the cost of acquiring land also increased from 11.6 billion yuan in 2016 to 47.725 billion yuan in 2019.
However, the general environment of the real estate industry has suddenly reversed. In 2018, macro-policy regulation and control made the whole industry enter a freeze period. In 2019, real estate enterprises continued to tighten their belts. This year, the "three red lines" completely enabled housing enterprises to rush from scale to scale.Had to turn to the journey of deleveraging.
Zhongjun can not stop on the road of expansion.In 2019, Zhongjun budgeted for 25 billion yuan of land, but ended up nearly double the budget, with 46 new projects for the whole year.In the first half of 2020, even leading housing enterprises like Evergrande set land reduction targets, but Zhongjun added 10 new projects in the first half of the year, with a total land price of 19.431 billion yuan.
Radical land acquisition is bound to consume a lot of capital, and in the industry-wide deleveraging stage, the risk of going against the trend is self-evident.
According to public information disclosure, the current liabilities of Zhongjun Group Holdings (01966.HK) from 2017 to 2019 were 34.638 billion yuan, 54.226 billion yuan and 85.049 billion yuan respectively. By the end of the second quarter of this year, Zhongjun's current liabilities had climbed to 102.363 billion yuan.
That is to say,In the past three years, the compound growth of current liabilities held by Zhongjun Group has reached 43.5%.. According to the data reported in the middle of this yearIts current liabilities account for 77.8% of the total liabilities and in total assets.Proportion63.4%, short-term repayment pressure can be imagined.。
In April this year, S & P lowered Zhongjun's outlook from "stable" to "negative" because of "slowing income, weak profitability and high land investment". Along with Zhongjun, there are also R & F Real Estate and Jinmao Real Estate, which are in financial difficulties.
Having adhered to the "conservative" strategy for more than 20 years, Zhongjun, which once had perfect financial indicators, has a lot of hidden worries after nearly two or three years of expansion. The question is, now that it is difficult for the real estate industry to reproduce skyrocketing growth, does Zhongjun still have a chance?
Similar to other skyrocketing housing enterprise routinesZhongjun's expansion takes advantage of the joint venture, and its proportion of non-controlling interests is increasing, from 20.53% in 2017 to 41.96% in 2019.。
This "water injection" growth does not lead to a simultaneous increase in profit margins. From 2017 to 2019, Zhongjun's net sales interest rate continued to decline, inventory turnover and accounts receivable turnover also declined year by year.
More importantly, the seemingly declining net debt ratio is also "strange". The increase of minority shareholders' rights and interests has become a "major contributor" to stabilizing the debt ratio, while minority shareholders' profits and losses have stagnated in the same period.
In addition, it is worth noting the bizarre "disappearance" of minority shareholders in Zhongjun's financial report. For example, Langfang four Seasons Huadu project company Sanhe Hengmei Real Estate Co., Ltd., Shanghai Zhongjun Tianyue Project Company Shanghai Junwo Real Estate Development Co., Ltd. and other minority shareholders all joined during the construction period of the project, but withdrew when they were nearing completion and shared profits, which can be called "living Lei Feng".
The emptiness and reality of the Dream of Commercial Real Estate
If Zhongjun is like "Xiao Xuhui" in scale expansion, then it is more like a "small new town" in the vision of "housing + commerce".
Following the new town's proposal of "realizing the opening of 100Wuyue squares across the country", Zhongjun called out the goal of "laying out 100 shopping malls and 200000 long-rented apartments in 2015".
However, in the case of commercial real estate, there are many "seniors", such as Wanda, Xincheng, Hongyang, Baolong, R & F and so on, but more are "photographed on the beach" and few are successful.
After all, commercial real estate, which costs money, energy and time, is not easy to do. Paying too much attention to commercial real estate leads to the decline in the ranking of residential real estate, which is the common end of some transitional real estate companies, including R & F.
Already faced with high land acquisition costs and huge financial pressure, Zhongjun, which needs rapid turnover, is not a good move for commercial real estate with a long return cycle and high uncertainty.
Perhaps, Zhongjun entered the commercial real estate out of helplessness, the acquisition of residential land is its ultimate goal, and to digest a large number of commercial real estate, especially the suburban commercial real estate, long-rent apartment is a more ideal choice. after all, it is difficult to sell suburban commercial real estate at a good price except some of the bottom merchants.
Or maybe Huang Chaoyang's move is just to help the second Childe's "great cause." And the eldest son.Huang LunIt is different to join again after studying abroad, the second ChildeHuang TaoThere are more "actors" in Zhongjun.
"did sales, responsible for marketing, and finally started a joint office space brand FUNWORK", Zhongjun commercial real estate's "hot potato" is likely to be handed over to the second Childe.。
Interestingly, Zhongjun, who was silent after filming "the King of the Land", shouted with all his strength on the vision of "residence + commerce". But along the way, Zhongjun's share price has been difficult to boost, although Huang Chaoyang has increased his holdings all the way.
Conclusion
It's relatively conservative.20多年Zhongjun, finally in the "scale to survive" under the voice of a fight, unexpectedly, but hit the real estate industry of the ice age. Time is also, life is also.
"Housing + business", or the "prescription" it prescribes to itself at the moment of industry adjustment. However, in the "predecessors" frequently failed commercial real estate "battlefield", where is the strength of Zhongjun?