Listed companies, central enterprises divestiture real estate: refinancing and check-out order cause

Listed companies, central enterprises divestiture real estate: refinancing and “check-out order” cause
Since this year, a large number of non-real estate listed companies or centrally-owned enterprises, and part of the separate real estate business, basically include the refinancing barriers set by the China Securities Regulatory Commission for suspected real estate listed companies, and 78 non-real estate main businesses of the State Council of the State CouncilA “check-out order” issued by a central enterprise.  Simply, affected by the new coronary pneumonia epidemic, the resumption of production and production was challenged, and the GDP fell in the first quarter.8%, real estate development investment, sales and funds in place have also improved.  According to statistics from the Bureau of Statistics, from January to March this year, national real estate development investment was 2,196.3 billion, which fell by 7 in the future.7%; the area of commercial housing sold was 219.78 million square meters, a year-on-year decrease of 26.3%; the funds in place for real estate development companies were 33.5566 billion yuan, a year-on-year decrease of 13.8%.However, the decline in the above three indicators has narrowed from January to February.  A real estate expert said to Sauna, Yewang that although the sales side, especially the store, was affected by the interference, the financing was looser than before. “We have had difficulty in financing in recent years”; someone from a real estate fund said:”Some housing companies have a relatively high demand for second-line storage and storage projects this year, but each land acquisition and acquisition project will fully consider the financing plan, and generally use a relatively feasible financing plan to go to the internal meeting.In this context, following the mention of “Room, Housing, and Housing” on July 30 last year, on April 17, this year, the Politburo meeting again focused on insisting that the house is used for living, not for speculation;On April 19th, Northeast Securities published a research report, which believed that “no housing and no speculation” means that the hard constraint to restrain the excessive growth of housing prices cannot be broken.  Divestment of real estate business for refinancing of multinational listed companies At present, real estate business has become a “stumbling block” for listed companies to refinance.  In October 2018, the China Securities Regulatory Commission launched the “Refinancing Review of Non-financial Knowledge Questions and Answers”, in which Article 8 clearly stated that the main business is real estate (including residential real estate, commercial real estate) listed companies, or the main business is not not real estateHowever, the listed companies that currently have real estate business apply for refinancing. In order to prevent the raised funds from being disguised as real estate business, the review will not be promoted yet.  Earlier, the Securities Regulatory Commission clearly stated in 2015 that according to the State Council ‘s “Notice on Resolutely Preventing the Excessive Growth of House Prices in Certain Cities” (Guo Fa[2010]Circular 10) and the 2013 “On Continued Real Estate Market ReplacementThe “Notice of Work” stipulates that real estate development companies that have idle land, speculate on land, sell houses for sale, drive up houses and other illegal activities will be suspended from listing, refinancing and major asset restructuring.  Since the beginning of this year, some listed companies have chosen to replace the real estate business first, precisely to remove obstacles to refinancing.  On March 14 this year, Jiangsu Hagong Intelligent Robot Co., Ltd. (stock abbreviation: Hagong Intelligent 000584) submitted a feedback on the application documents for non-public issuance of stock documents in response, in which the CSRC required it to explain the specifics of the actual business development., And whether the company complies with the relevant requirements of the “Regulation Policy for the Securities Regulatory Commission to Adjust the Refinancing of Listed Companies and M & A and Reorganization Involving Real Estate Business”.  Harbin Intelligent stated that at the beginning of the reporting period, the company had nine wholly-owned and holding subsidiaries involved in the real estate business, which had been gradually transitioned or transferred since October 2018.As of March this year, the company has completed the transfer of the held Shudu Real Estate to Chengdu Juren Real Estate Co., Ltd.19.For the industrial and commercial procedures of 00% equity, the company no longer holds any equity in real estate companies and has completely completed the divestiture of real estate business.  At the same time, Hagong Intelligent promised that the company and its subsidiaries will no longer engage in actual real estate business.The data shows that the main business of Harbin Intelligent includes high-end intelligent equipment manufacturing and one-stop platform for robots. The funds raised in this non-public offering are mainly the expansion of the existing high-end intelligent equipment manufacturing business. The actual controller is Qiao HuiheEddie.  There are also pig-raising companies that have decided to abandon the real estate business in consideration of local real estate policies and the impact of actual business on subsequent capital operations.  The listed company Luo Niu Shan Co., Ltd. (stock abbreviation: Luo Niu Shan 000735) is mainly engaged in pig breeding, and the actual controller is Xu Zili. On March 25 this year, the company disclosed the announcement of the divestiture of actual business and related party transactions.  Luo Niushan intends to increase the capital of the holder ‘s Luo Niushan Square and the Luo Niushan 118C project to the wholly-owned subsidiary Hainan Jindi Real Estate Co., Ltd. (hereinafter referred to as “Jindi Real Estate”), and to the company ‘s controlling shareholder Luo Niushan Group Co., Ltd.The company transferred 100% equity of Jindi Real Estate, and Jindi Real Estate applied for temporary real estate development qualification to complete the subsequent development of the above project.  In addition, there are 5 pieces of land in Luo Niu Mountain that have not yet reached the legal transferable conditions and cannot be transferred at present.It stated that it would transfer the above-mentioned plots to legally transferable status through self-development or entrusted construction and other cooperative development methods, and reallocate real estate development qualifications upon completion of the transfer to complete the transfer of the listed company’s real estate business.  Luo Niushan said that due to the negative impact of the macro policy on the real estate industry and the negative expectations of the capital market for the real estate industry, the real estate business has limited space for subsequent development and has caused obstacles to the company’s subsequent capital operation.Therefore, after careful consideration of the company’s management, the company decided to transfer the relevant assets of the company’s real estate business, and cancel the real estate development qualification in time according to the transfer progress, so as to achieve the company’s business goal of focusing on the main animal husbandry industry and returning to the first echelon of the animal husbandry industry.  There are also listed companies that are substituting for real estate business in order to refinance in the future.  On April 6 this year, the listed company Zhejiang Dongri Co., Ltd. (stock abbreviation: Zhejiang Dongri 600113) disclosed the 100% distribution of the company’s wholly-owned subsidiary Wenzhou Dongri Real Estate Development Co., Ltd. (hereinafter referred to as “Wenzhou Dongri”).The progress of the listed transfer.At the end of the listing period, a total of 4 intended transferees that meet the conditions for the transfer of equity were generated. Then, through the electronic bidding on-site bidding, the assigned transferee was finally determined to be Wenzhou Wisdom Real Estate Marketing Planning Co., Ltd., and the transaction price was1.05 billion.  The data shows that Zhejiang Dongri is mainly engaged in the operation of the lamp market and the agricultural products wholesale trading market, and the actual controller is Wenzhou SASAC.It said that the transfer of Wenzhou Dongri’s equity is the company’s need to further focus on the construction and operation of the agricultural products wholesale market, and it is a practicable commitment to change the actual business when the company allots shares in 2018.  Under the “Check-out Order”, the central enterprises promised to “extract” the real estate business ‘s “Check-out Order” back to 10 years ago.On March 18, 2010, the State-owned Assets Supervision and Administration Commission of the State Council issued the title of a press conference. Real estate companies under the adjustment stage of a central enterprise group holding or holding shares should speed up the adjustment process and exit in an orderly manner after completing the phased tasks.  According to the content of the press conference at that time, in addition to 16 central enterprises with real estate as the main industry, 78 central enterprises with no real estate as the main business carried out real estate business.There are a total of 227 households, accounting for about 60% of the total number of real estate enterprises above the third level of central enterprises, but sales revenue only accounts for 15%, and profits only account for 7%.  The State-owned Assets Supervision and Administration Commission of the State Council said that these enterprises are undergoing rapid adjustment and reorganization, and they will withdraw from the real estate business after completing phased work such as the development of their own land and projects already implemented.However, to this day, some other central enterprises are doing exit work from the real estate business.  In January of this year, the State-owned Assets Supervision and Administration Commission of the State Council once again proposed that commercial real estate should be a prohibited business for non-real estate central enterprises.  It issued a “Notice on Matters Relevant to Central Enterprises Strengthening the Management of Participation in Shares”, stating that central enterprises must strictly control the direction of investment in their main businesses, strictly implement relevant regulations on the supervision and management of statutory asset investment, insist on focusing on main businesses, and strictly control non-main business investments.In order to circumvent the main business supervision requirements, commercial real estate and other prohibited businesses specified in the list of investment projects of central enterprises shall not be carried out by way of equity participation.  On March 22 of this year, the website of the Central Commission for Discipline Inspection of the Central Commission for Discipline Inspection disclosed the overall improvement of the State Grid Corporation of China (hereinafter referred to as the “State Grid”) for the third round of inspections of the 19th Central Committee.  State Grid stated in the report that it will stick to the main responsibility of the power grid with a higher political position, decided to withdraw from traditional manufacturing and real estate business, resolutely complete the task of deepening the reform of collective enterprises on schedule, and actively communicate with the SASAC to report the main ideas and urgeThe State-owned Assets Supervision and Administration Commission clarified the direction of the rectification work, further improved the exit and transformation plan in accordance with the SASAC’s comments, and accelerated the rectification and reform work.  At present, the main real estate platform of State Grid is Luneng Group Co., Ltd. (hereinafter “Luneng Group”).Luneng Group’s official website shows that the company was established in December 2002 and is a wholly-owned subsidiary of State Grid. Its core business focuses on real estate and energy.  In a separate report on the third round of inspection and rectification of the 19th Central Committee of China, China National Aviation Corporation stated that it will focus on solving the problems existing in the disposal of historical issues of the enterprise, one of which is to clean up inefficient properties and exit the real estate business.  It stated that it would formulate and implement an internal land ownership disposal plan, actively promote property leasing and sales, and increase the revitalization of inefficient properties. Among them, Chengdu Southwest Airlines Real Estate Development Co., Ltd. has withdrawn from the real estate business through conversion.  Sauna, Ye Wang Xiao Wei Li Yunqi Editor Sun Yong proofreading Wang Xin Reporter Contact: xiaowei @ xjbnews.com