No Question about West East: Shen Fu, the King of Southwest Real Estate

Chengdu YunnanUrbanInvestment

wangyicaijing· 2019-12-03 04:22:07


The once overwhelming southwest real estate overwhelmed the eyes, and all went west and west.

Author | Wang Wenhua (Beijing)

Column | Editor-in-chief of NetEase | Dai Lu

"I started my third business with Sun Hongbin!" Deng Hong told the media after announcing that the two companies he founded had changed hands again.

On November 27, Sunac China announced the acquisition of Chengdu Global Century Exhibition and Tourism Group Co., Ltd. (hereinafter referred to as Chengdu Metropolis Exhibition) and Chengdu Times Global Industry Co., Ltd. (hereinafter referred to as Times Global) for 51.269 billion yuan each. % Equity, As the founder of the acquisition target company, Deng Hong has since acquired a new identity.

Five months and 20 days, a large order of 15.3 billion yuan was finalized, which is a side dish for Sunac, which has made a lot of money in the M & A market. But for Deng Hong, it is doomed to be extraordinary. In the past, The Chengdu Metropolitan Exhibition and Yunnan Urban Investment, the two real estate giants in the southwest, have gone through many twists and turns in the past three years, and eventually went west.

History of Deng Hong's track record

Deng Hong, known as the "Meeting King", is quite famous in Sichuan. According to public reports, Deng Hong was born in a military family in Chengdu in 1963. He has served in the army, fought and fought, and has done a lot of business since he changed jobs. Deng Hong gradually showed his business acumen from painting street advertisements, setting up stalls, collecting rent as a landlord, and opening a clothing store.

In 1993, Deng Hong met Chinese Americans who were engaged in aircraft parts business in the United States, and then went abroad. This is also considered by the outside world as a real turning point in his life.

In 1995, Deng Hong returned to China, 1.4 billion yuan to build an international convention and exhibition center in Shawan, Jinniu District, Chengdu. Started to enter the convention and tourism industry, and established the Chengdu Global Century Convention and Exhibition Tourism Group. Subsequently, successively invested to build Jiuzhai Paradise International Conference and Resort Center, Chengdu Century City New International Convention and Exhibition Center, Asia's largest single building global center.

In 1997, Chengdu International Convention and Exhibition Center opened. As the largest exhibition venue in western China, it has become a landmark building in Chengdu. Deng Hong has built five-star hotels and shopping malls in the surrounding area, making this area one of Chengdu's well-known business districts.

In 1999, Deng Hong invested 150 million yuan to build one of the largest art venues in Asia, Chengdu Modern Art Museum; in 2001, he invested in the Jiuzhai Paradise International Conference and Resort Center. In December 2003, Chengdu New International Convention and Exhibition Center, Century City, with a total area of ​​1.8 million square meters, was invested and constructed in the high-tech zone.

Deng Hong's "Chengdu model of the convention and exhibition industry" created by Deng Hong promoted the regional economy with MICE tourism. Since then, he monopolized the Sichuan province's convention and exhibition business and was titled "Meeting and Exhibition King". , Become the top ten real estate developers in Sichuan.

In 2004, Deng Hong was awarded the "Outstanding Contribution to Building Chengdu" by the Chengdu Municipal Government. The reason for the award was "From 1997 to 2004, it brought RMB 24 billion to Chengdu. Direct economic income. "

Crisis and Turnaround

Deng Hong, who has made a fortune and fame, has not stopped expanding. In December 2008, the Chengdu Metropolitan Exhibition and Tourism Group invested in the construction of the "Asia's largest single building" New Century Global Center. According to public information, this project is a major project of the modern and idyllic city in the world determined by the governments of Sichuan Province and Chengdu City. It is positioned as an entertainment, leisure and shopping paradise in Chengdu. It covers a total area of ​​about 1,300 acres and a total construction area of ​​about 1.76 million square meters.

lasted nearly 5 years, April 28, 2013 The Global Center officially opened. As a promoter of the project, Deng Hong did not show up. According to Southern People Weekly, In late February 2013, Deng Hong was taken away by police on a private plane scheduled to fly to Yapu Island in the South Pacific at Chengdu Shuangliu Airport.

Since then, Deng Hong has no information. Until early November of the same year, the media disclosed that he had been confirmed and arrested and was detained in Xianning Detention Center, Hubei. The above report stated that Deng Hong was arrested because of suspected land resale, false invoices, tax evasion, and fraudulent loans.

On September 28, 2014, Dang Hong, who had disappeared for nearly 20 months, appeared in his company. According to the report of the Economic Observation Network at the time, Deng Hong appeared in the Global International Center and visited some enterprises. The news of the appearance was interpreted by the media as a smooth landing. Since then, there has been no more news about Deng Hong.

In August 2018, Deng Hong responded positively to the incident of taking away, saying that after the accident in 2013, relevant departments pulled 10 truck data from the company, and the financial and operating data spanned nearly 20 years since the 1990s. After investigation, there was no violation of laws or disciplines. During this period, Chengdu Metropolitan Exhibition Group did not have a senior executive leave.

Southwest real estate leader floats

Two years later, Deng Hong, who was silent for a long time, once again became the focus of media attention. In May 2016, Yunnan Urban Investment Group acquired 51% of Chengdu Metropolis for 11.8 billion yuan. Xu Lei, chairman of Yunnan Urban Investment Group, became chairman.

Although the Chengdu Exhibition Land Reserve is amazing, hindsight, Sunac's transaction involved 18 projects in cities such as Chengdu, Wuhan, Changsha, Kunming and other cities, with a total construction area of ​​approximately 30.716 million square meters. The construction area is about 27.716 million square meters, accounting for about 90% of the total construction area. As of the announcement date, the unsold building area was approximately 23.910 million square meters. However, the realization and profitability of the Chengdu Metropolitan Exhibition is far from clearly matching its huge land reserve.

In 2015, 2016, and January-August 2017, the revenue of Chengdu Exhibition was 1.681 billion yuan, 1.645 billion yuan, and 1.094 billion yuan, and the net profit was 88.87 million yuan. , 261 million yuan and 185 million yuan. This level of profit is only equivalent to the level of the third and fourth lines in domestic housing enterprises. Not to mention the top 50 and top 100.

On the other hand, Yunnan City Investment, which once acquired Chengdu Metropolis, is the deserved king of Southwest real estate. According to the official website of Yunnan Urban Investment Group, the company is a large provincial enterprise supervised by the Yunnan State-owned Assets Supervision and Administration Commission. It owns two listed companies of Yunnan Urban Investment and Yunnan Water (06839.HK), a new third board company Shares), wholly-owned and holding more than 40 second-tier subsidiaries, is the largest shareholder of Qujing City Commercial Bank, the largest shareholder of Laimeng International Circulation Shares and the second largest shareholder of Wingtech. As of December 31, 2018, the total assets of Yunnan Urban Investment Group had reached 29.247 billion yuan.

As a predator, Xun Lei's Yunnan City Investment once made acquisitions in the real estate field like Sun Hongbin, Yunnan from 2016 to 2018 Urban Investment has invested a total of about 4.5 billion to acquire a large number of projects under the Intime Department of Shen Guojun. In 2016, it invested RMB 10 billion to acquire 51% equity of Chengdu Metropolis Exhibition. In addition, in recent years, Yunnan Chengtou has also acquired the equity of several companies such as Hainan Convention and Exhibition, Guangdong Yunjing Tourism, Kunming Chenghai, and Colorful Yunnan, etc. The cumulative investment has been about 30 billion yuan.

Yunnan Urban Investment Group intends to load the acquired equity into the listed company Yunnan Urban Investment. In June 2017, Yunnan Chengtou, a listed company of Yunnan Urban Investment Group, suspended trading and reorganized, and plans to load it into the Chengdu Metropolitan Exhibition. In November 2017, Yunnan Urban Investment announced the acquisition of 100% equity of Chengdu Metropolitan Exhibition. The main objects are Chengdu Century Convention and Exhibition Center and its supporting hotels, businesses, Global Center, Chengdu Heilongtan and other development projects. The estimated value of assets is 240. 100 million yuan.

Yunnan Chengtou has a listed company platform and financing channels, and Chengdu Metropolis has a land reserve project. Once the asset placement is completed, Yunnan Chengtou Group is equal to the second pulse of Rendu, Will be a real estate leader in the Southwest. Deng Hong can also achieve a perfect turn and get a good cash opportunity.

However, this transaction ended with the fall of Xu Lei, the king of Southwest Real Estate. On May 24, 2019, the Yunnan Provincial Commission for Discipline Inspection and Supervision released news that Xu Lei, party secretary and chairman of the Yunnan Urban Investment Group, was suspected of serious disciplinary violations and took the initiative to invest. On June 20, 2019, the acquisition plan for the past two years was confirmed to be final. Yunnan City Investment announced the termination of the acquisition of 100% equity interest in Chengdu Metropolis, because "the domestic market environment, the economic environment and other objective circumstances have changed, and the parties to the transaction could not reach agreement on some important terms."

Not only the acquisition could not be completed, Yunnan Urban Investment also became the object of rectification, Poly Group began to participate in the mixed reform of Yunnan Urban Investment Group. On October 14, 2019, the Yunnan Urban Investment Announcement revealed that in order to accelerate the cooperation between the Yunnan Provincial People's Government and Poly Group on the reform of mixed ownership of the Provincial Urban Investment Group, as recommended by Poly Group, the Yunnan Provincial Party Committee decided, strong> Appointed Wei Wei, Poly Group, as Party Secretary and Chairman of the Provincial Urban Investment Group.

Huge amount of financing bonus

Behind the mixed reform of Yunnan Urban Investment is closely related to its capital chain and profitability. Yunnan Urban Investment has not completed the integration of its subsidiaries for a long time after the huge acquisition, resulting in extremely low profitability, high debt ratio and negative net profit for many years.

Without money, financing has become the most important thing for Chengdu. In order to raise funds, Chengdu Exhibition has given high performance bonuses.

In November 2019, Yunnan Urban Investment Group "exposed family ugliness" for several days in a row, and announced a number of violations by some leading cadres and subsidiaries. It is worth noting that Chengdu Exhibition is also implicated.

The information released by the Yunnan Provincial Commission for Discipline Inspection shows that Chengdu Global Century Convention and Exhibition Tourism Group Company has issued bonuses in violation of regulations. In January 2019, Peng Xi, the personnel and salary commissioner of the Real Estate Division of Chengdu Metropolitan Exhibition Group, reported to Li Bu, the director of personnel of the real estate division, Han Jiangwen, the financial manager, Yu Zhida, the chief financial officer, Li Ping, Sun Hong, the general manager of the real estate division The deputy leader Wang Yunfeng approved it, and Deng Hong, the vice chairman of the group, agreed to issue 11.411 million yuan in financing awards to 11 people in violation of regulations, including taxes and fees of 3.543 million yuan, which was actually paid to individuals 4.867 million yuan.

In September 2019, the Yunnan Equity Exchange listed two trading targets. The listing price of 51% equity of Chengdu Global Century Exhibition and Tourism Co., Ltd. was 13.562 billion yuan, and 51% equity of Chengdu Times Global Industry Co., Ltd. The listed price was RMB 1.707 billion, totaling RMB 15.269 billion. The 51% equity of Global Century and the 51% equity project of Time Global are bundled and transferred. When the transferee transfers one of the equity, it must also transfer the other equity.

The transferors of these two shares are Yunnan Urban Investment Group. Before that, Yunnan Urban Investment Group had pledged 51% equity of Times Global Industry Co., Ltd. to Sunac Southwest Real Estate Development (Group) Co., Ltd.

Public information shows that excluding the listed shares, the remaining shares of Chengdu Exhibition and Times Global are held by Deng Hong and others, and the shareholding ratio is the same.

Deng Hong came to the stage again in order to seek a new bidder for the Chengdu Metropolitan Exhibition. On June 7, 2019, Deng Hongjing introduced to meet with Sun Hongbin by a friend. It is said that the two had talked for more than an hour and basically reached an acquisition. After more than 5 months, on November 27, Sunac China announced that it would acquire 51% of the equity of Global Century and Times Global held by Yunnan Urban Investment Group for 15.269 billion yuan. The latter became indirect of Sunac Subsidiary company, renamed as "Global Sunac Exhibition, Exhibition, Culture and Tourism Group", and Deng Hong became chairman.

Second entrepreneurship

"My third entrepreneurship was with Sun Hongbin!" In fact, Deng Hong's second venture Entrepreneurship has been ongoing.

During the past three years, Deng Hong has already started his second venture from Yunnan Capital's investment in the Chengdu Metropolitan Exhibition to the sale of shares and then to Sunac's takeover.

In April 2017, Deng Hong made his public appearance as the chairman of Global Good Wine. Global Wine was established in May 2017 and is 100% controlled by Deng Hong. His son Zhang Jiahao has served as the company's legal representative, executive director and general manager.

Due to why he got involved in the wine industry, Deng Hong once revealed that he started hosting the National Sugar and Liquor Fair in 1998. In the process of participation, he found that "the famous wine only has a share of more than 30%, and the remaining 60% is other Good wine, but because of brand and business problems, Universal Wine can step in. "

When the new company was founded, it began to show its strength. In April 2017, Global Fine Brewery and the Shengzhou Municipal Government signed an investment cooperation agreement of 8 billion yuan to build a Chinese sauce culture theme park and a strong aroma brewing base in Longmatan District. In July, Universal Wine announced the acquisition of a 70% stake in Quzhou Guocui Wine Industry. In August, Global Best Brewery Co., Ltd. and Lintong Liquor signed a strategic cooperation agreement at the Intercontinental Hotel in Global Center. Global Fine Wines will invest 120 million in Lintong Liquor, with a stake of 70%. Subsequently, Global Fine Wines invested 1915 wine companies in Maotai Town, Guizhou, and established Hengchang Shaofang Brewery Co., Ltd. in Maotai Town.

In 2018, Deng Hong brought 17 brands and more than 100 products under the Global Wine Group to the Chengdu Spring Sugar & Liquor Party, and made a bold statement, hoping to integrate many outstanding small wine companies. A total of 7 billion yuan was invested annually to create "small and beautiful" brands for many different alcoholic beverages.

Talking about how to allocate energy in the future, Deng Hong said, In addition to the wine industry, 99% of energy should be devoted to Global Sunac, "I take this as the third time Start a business, "said Deng Hong.

Netease number outside | Producer: Yao Changsheng Qi Dongliang

Author | Wang Wenhua (Beijing) >

Editor | Dai Lu

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