The Gelonghui App learned that on July 27, 2020,First Process Holdings (00697.HK)versusGreater Bay AreaCommon Homes Development Fund (“Greater Bay Area Fund”) entered into a convertible bond subscription agreement to issue HK$300 million of convertible bonds to Greater Bay Area funds with an initial conversion price of HK$1.93 per share for a period of 3 years.
What is the Greater Bay Area Common Home Development FundHuarunGroup, China Merchants Group, Hong Kong-China Travel Service,China Taiping Insurance, Bank of China Investment, Guangdong Group, Sino Group,Evergrande GroupMajor international industrial institutions, financial institutions, and new economy enterprises, such as Shangtang Technology, etc., were jointly founded to seize the historical opportunities for the development of the Guangdong-Hong Kong-Macao Greater Bay Area, focus on scientific and technological innovation, industrial upgrading, better living, smart cities and other related industry investments, and participate in the construction of the Greater Bay Area. I believe this strategic investment in the first round of holdings also hopes to use smart urban parking as an entry point to promote the upgrading of the parking industry in the Greater Bay Area through capital assistance and resource empowerment, effectively solve parking problems, and promote the construction of smart cities and quality living circles in the Greater Bay Area.
In the current environment of increasingly fierce global competition, the country issued the “Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area” in February 2019, which places deep expectations on the development of the Greater Bay Area. The Guangdong-Hong Kong-Macao Greater Bay Area, as a leader in economic growth and technological change, will usher in historic development opportunities. According to public information, in 2019, the total GDP of the nine cities in Guangdong, Hong Kong and Macao Bay Area in Guangdong Province reached 8.69 trillion yuan. The GDP growth rate reached 6.4%, which is 0.2 percentage points higher than the province's growth rate, and per capita disposable income maintained a rapid growth trend of 7-10%. However, along with economic development, the parking problems of few cars, difficult parking, and chaotic parking due to a large car ownership base, high travel frequency, and insufficient supply of parking spaces have also increasingly become major difficulties in urban management. Taking Shenzhen as an example, the number of cars owned in Shenzhen in 2019 was about 3.43 million, while the parking space gap in Shenzhen was close to 2 million. The penalty for random roadside parking has become number one on the list of illegal penalties by the Shenzhen traffic police, and the parking market in the Greater Bay Area is in urgent need of specialized integration and upgrading.
Since Shoucheng Holdings entered the parking industry, it has taken Guangshen as one of its important business development regions, drawing on housing giants in 2019VankeThe cooperation has expanded the business map to the Greater Bay Area. After this strategic investment by the Greater Bay Area Fund, the Greater Bay Area Fund's government and enterprise resources, the strong strength of the investors, and the strategic resources of the invested enterprises are expected to further open up space for Shoucheng Holdings's business expansion, obtain high-quality parking assets within the region, and accelerate the expansion of business development in the Greater Bay Area from a point-like layout to a grid and density layout.
Shoucheng Holdings has been there beforeBeijing-Tianjin-HebeiThe Yangtze River Delta, and Chengdu-Chongqing urban agglomerations have formed a relatively complete business layout, including many high-quality assets including airports, hospitals, commercial offices, and roadsides. If Shoucheng Holdings can take advantage of the strategic coordination of Greater Bay Area funds, it will be able to greatly optimize and consolidate its business layout in the Greater Bay Area, build industry barriers through a large-scale high-quality asset network and deepening asset quality, and establish a leading position in the Greater Bay Area market, thus forming a pattern of simultaneous development in the four core regions.
The Greater Bay Area is an important puzzle for China's economy and opening up to the outside world. After Shoucheng Holding's business layout in the Greater Bay Area enters the “fast track,” the network layout of parking assets will basically complete the full coverage of key cities in China, and the leading position in the parking industry will be further consolidated.