In 2020, the enthusiasm of small and medium-sized real estate companies to go public in Hong Kong remains. According to the IPO report on May 28, a real estate company from Chengdu, Heneng Group, is currently in close contact with investment banks to prepare for listing in Hong Kong. This is already the third real estate company to report listing news since May. Prior to this, there were Field Real Estate and Fangzhi Group. However, when a media called Heneng Group for verification, a staff member refused to respond on the grounds that “there is no department dedicated to the media”. Huang Lichong, president of
Huisheng International Capital and founder of Xiezong Strategic Management Group, believes that it is not strange for small real estate companies to go public at this stage. The listing can raise capital or issue overseas bonds. Of course, they all want to go public. However, the overseas capital market has been relatively turbulent recently, and this is not a good time to go public. It depends on where the bell is officially struck.
Top 100 real estate real estate companies
On March 17th before going public in Hong Kong, "Heneng Investment Co., Ltd." had just been selected as the "Top 100 Real Estate Companies in China in 2020" by the China Real Estate TOP10 Research Group. In addition, on March 31 this year, Heneng Real Estate bid for about 113 acres of high-quality land in the Caijia Group in Beibei District, Chongqing with a transaction price of 795 million. When Heneng first entered Hangzhou at the end of April this year, it bid for a home in Hangzhou Taoyuan with a cap price of 2.127 billion, a self-holding ratio of 7% and a premium rate of 30%.
But in different lists, Heneng's performance is very different. Crane data shows that in 2019, Heneng Group's traffic sales amount was only 6.98 billion yuan, ranking 194. The scale of the famous city ranked 100 in the same year reached 20.19 billion yuan. From January to April 2020, Heneng Group did not appear on the Crane Top 100 list.
's listing news came out this time, and this "top 100 real estate companies" is a high profile. Heneng Group was founded in Hong Kong in 1992, and the actual controllers are Hou Jinqiao and Hou Yongqiao, who act as legal representatives and shareholders in many subsidiaries of Heneng Group. But the two brothers are both mysterious and low-key, and there is almost no introduction in public channels. Although
Heneng Group has been established for 28 years, and its history is even longer than that of the leading real estate companies such as Evergrande and , it is obviously not as well-known in the industry as the latter, and its scale is also far behind.
was born in Hong Kong, but the development of Heneng Group is concentrated in the Mainland. In 1995, Heneng Group developed the first real estate project-Yuhua Garden in Longhua District, Shenzhen. At present, the second-hand housing price of the project has reached 47,000 yuan per square meter. In 2001, it developed a second project-Central garden.
However, Heneng Group does not seem to be willing to mention this history too much. The development history of its official website is introduced in 2002 when it entered Chengdu and moved its headquarters to Chengdu. After moving to Chengdu, the development speed of Heneng Group is still slow. So far, it has developed 18 projects in Chengdu.
Liu Lu, a professor at the School of Economics at Southwestern University of Finance and Economics, revealed that Heneng Group belongs to an established real estate company in Chengdu, but with the arrival of more and more foreign real estate companies, Heneng Group has rarely acquired land in Chengdu in recent years.
Herneng Group's expansion outside Chengdu began in 2005, when it acquired the first phase of Xi'an Qujiang City Garden. Five years later, through the acquisition of Hunan Lixinyuan Company, the land of Yuhua Mansion was acquired and entered Changsha. In 2016, the He Neng Ningyue Mansion Project entered Ningbo for the first time.
2017 was the most "radical" year for Heneng Group. At the opening banquet for the Chinese New Year in February 2017, Heineng Group disclosed its ten billion goal for the first time, and Heineng Group’s performance in the land market was also extremely positive. Zhang Qian, the marketing general manager of Heneng Real Estate Group at the time of
, revealed in an interview with the media that Heneng’s goal of just looking at the land this year (2017) is 800. So far, he has seen more than 200 land parcels and is currently in Changsha. , Xi'an and Chengdu participated in more than 20 land auctions. In 2017, Heneng’s sales mission is 10 billion yuan, which can support tens of billions of sales. He will have to make big moves in the land market. Only with land reserves can we talk about sales missions. "Multi-city expansion and expansion is a theme of Heineng this year (2017)."
However, public information shows that Heineng Group, which intends to expand nationwide, has not won much in 2017. First entered Chongqing, and then 2019, 2020. They entered Zhengzhou and Hangzhou in the same year.
and whether the tens of billions goal is achieved is also a mystery. Crane's 2017 Real Estate Top 200 list did not show that He Neng Group, the most on the list at that timeThe low threshold is 4.58 billion yuan.
multi-projects have been delivered and delayed.
Small and medium-sized real estate companies listed in Hong Kong often have one thing in common-high debt ratio. For example, Dragon Real Estate, which updated its listing application on May 12, has a debt-to-asset ratio of 172.6% in 2019.
Heneng Group did not disclose specific debt data, but judging from the outbreak of delayed delivery problems in various places, the capital chain of this small real estate enterprise seems to be relatively tight.
It is understood that on March 13 this year, some owners complained on the black cat complaint platform that the delivery of Xi'an Heneng Mansion was far away. According to the contract, Xi’an Heneng Mansion was originally scheduled to hand over the house on July 30, 2019, but it was postponed, and it was re-arranged to January 23, 2020 under the coordination of the Housing and Urban-rural Development Bureau, but on February 28, 2020, the owners Once again received a letter of notice of postponing the delivery of the house, plus the impact of the epidemic, the owner had not received the house until March 13.
is also in Xi'an. On March 30, some owners complained in the message board of government leaders that the construction of He Neng Boyue Mansion was slow. The building 1 that was originally scheduled to be handed over at the end of September 2019 was not handed over, and the building 13 is far away.
In addition, the second phase of He Neng Shili Jinxiu, which had been delivered in December 2016, broke out in February that it could not apply for the real estate certificate because it failed the planning and acceptance; Chengdu He Neng Fengdan Xiyue was also complained about the delivery standard and Propaganda is very different and involves a series of issues such as false propaganda.
The “life-saving straw” for small and medium-sized real estate companies
In fact, the cities that Heneng entered have experienced a wave of rapid growth in the real estate market after 2016. Unfortunately, Heneng did not take the opportunity to expand its scale.
The company's frequent management personnel changes and the boss's views on real estate are the main reasons why He can fall behind. An industry insider in Chengdu said, “Heneng’s personnel are often shuffled round by round. The current professional managers include Country Garden , Zhonghai and other factions. Marketing management is unscientific, and the assessment standards are set randomly, even if the marketing performance is completed. Last year, there was a wave of marketing people leaving.” The boss of
himself also has certain limitations. A person close to Heneng introduced, “The boss himself thinks that the project is profitable only to get it, and he rarely expands funds outside. Channel, Heneng is a "conservative boss + mediocre professional manager" in the management, so Heneng missed many opportunities."
In the past two years, the listing in Hong Kong is a small real estate company that wants to seize in the scale reshuffle. The last chance, this can solve the financing problem and make the brand famous, which seems to kill two birds with one stone. According to people familiar with the matter, the main purpose of the company's listing in Hong Kong is to solve the funding problem. "No matter the Chengdu market or the national real estate market, small companies are becoming less and less competitive. If Heneng does not have other funding channels to develop and grow itself, it will sooner or later be eliminated by the market."
IPO raising funds and opening up financing channels have become important ways for these small and medium real estate companies to help themselves. Judging from the current situation, Heneng has been paid attention to by the industry again because of the listing plan, and the goal has been half achieved. However, Huang Lichong believes that the current overseas capital market is not a good time for real estate companies to go public.
Information source: Times Finance, Jiemian News, Zhongwei Finance
