On August 6, COFCO Real Estate confirmed that the reason for the suspension was to plan a major asset restructuring. This information once again made the news of COFCO's real estate business restructuring rampant. Under the overall strategy of "slimming and keeping fit", COFCO's real estate business will inevitably embark on the road of more optimized asset allocation. However, the increase in volume brought by integration does not mean the enhancement of strength. Only by finding a suitable business breakthrough can COFCO's real estate business catch up.

Confirm reorganization

August 24th will be an important day for COFCO Real Estate. On August 6, COFCO Real Estate announced that it confirmed that the major events being planned constituted a major asset restructuring, so it was transferred to the major asset restructuring procedure on August 7 and continued to suspend trading. Prior to this, COFCO Real Estate has also announced that it is expected to disclose the restructuring plan within 65,438+0 months, that is, to disclose major asset restructuring information as required before August 24.

Although COFCO Real Estate did not disclose the content of major asset restructuring, this restructuring was regarded by the industry as the beginning of COFCO's "moving knife" on the real estate business sector.

It is worth mentioning that on July 3 1 day, COFCO Real Estate announced that the company's 3 1 100 million yuan fixed increase plan was invalid. According to the original plan, the money will be used for two acquisition projects and three construction projects, but the plan expired due to the failure to obtain written approval documents from the CSRC. Some analysts believe that the internal restructuring of COFCO's real estate business segment may also interrupt the fixed increase plan.

In addition, before the suspension of COFCO Real Estate on July 24, two institutional seats bought 8 1.82 million yuan of COFCO Real Estate, accounting for 19%. From the suspension of trading to the failure of fixed increase, and then to the skyrocketing of stocks, there are indications that a drama of change is about to be staged on the platform of COFCO Real Estate, and the advantages outweigh the disadvantages.

Real estate integration

Some insiders told beijing business today today that the major asset restructuring of COFCO Real Estate must be related to the internal adjustment of COFCO, and the integration of real estate business sectors and the backdoor listing of COFCO Capital will be the main contents.

COFCO owns two listed real estate companies, among which COFCO listed on Shenzhen Stock Exchange mainly focuses on residential development, and Joy City real estate listed on Hong Kong Stock Exchange mainly focuses on commercial real estate development of Joy City. 20 16, replacing ning in charge of COFCO. Since Zhao Shuanglian took office, COFCO has launched the "Slimming and Fitness" program. According to the "Thirteenth Five-Year Plan" of COFCO, COFCO promoted the overall listing of grain, oil, food, finance and real estate in 20 19. "From the perspective of the grain, oil and food sector, COFCO's reform idea is to remove some chicken ribs business lines and carry out effective similar integration to optimize capital allocation, so the integration of the real estate business sector will be carried out sooner or later." An industry person who did not want to be named introduced.

In fact, as early as March of 20 1 1, Ning, the former chairman of COFCO, also suggested that after the merger of COFCO Real Estate and COFCO Real Estate (the predecessor of Joy City Real Estate), the two real estate business platforms were listed as a whole in the form of A+H, but they have been shelved until today for various reasons.

In the eyes of the above-mentioned insiders, the integration of COFCO's real estate business sector is the embodiment of COFCO's overall reform will. However, the integration that has not been substantially promoted since the Ning era also means that it is not easy to integrate. Among them, how to cooperate between the two platforms at the project level, how to balance funds, and how to integrate and match the team and management system all need top-level design.

However, fortunately, COFCO's real estate business has the conditions for successful integration in management team and management system, and Zhou Zheng, a key figure, has to be mentioned here. It is reported that the chairmen of COFCO Real Estate and Joy City Real Estate are Zhou Zheng, and Zhou Zheng is the chairman of COFCO Land. COFCO official website shows that COFCO Land is a specialized company engaged in real estate development under COFCO, and COFCO currently has 18 specialized companies similar to COFCO Land. In other words, COFCO Real Estate and Joy City Real Estate are two different listed companies, but both are managed by COFCO Land.

At this stage, the comprehensive management of personnel has been established. In some regional companies, COFCO Real Estate and Joy City Real Estate also have managers deeply involved in each other's projects. "On the one hand, it shows that the integration of the management team in the reorganization will not be too difficult. On the other hand, it also shows that the management teams of the two companies are not independent, which also affects work efficiency to some extent. " People close to COFCO Real Estate said.

Emergency breakthrough

In fact, the real estate business integration of COFCO has been going on for more than ten years. In 20 13, the substantial promotion was that COFCO injected commercial real estate into Hong Kong shell resources, and realized a clear division of real estate business on the capital platform. As a result, COFCO's real estate business has moved from a single capital platform to a dual capital platform. However, even so, the performance of COFCO Real Estate's dual platform is still not eye-catching.

The financial report of COFCO Real Estate in 20 16 shows that the contract amount is 65.438+09.962 billion yuan, the operating income is 65.438+08.025 billion yuan, the total profit is 2.234 billion yuan, and the net profit is 65.438+03.33 billion yuan. Joy City Real Estate's operating income in 20 16 is about 6.987 billion yuan, and its net profit is1275 million yuan. In the "TOP 100 of the sales amount of real estate enterprises in China in the first half of 20 17" issued by the Opinion Index Research Institute, COFCO Real Estate ranked 67th with the sales amount of 122 billion yuan, ranking lower. "The listing of COFCO Commercial Real Estate on the Hong Kong Stock Exchange is partly due to the tepid performance of COFCO Real Estate, and COFCO also wants to use COFCO Real Estate (the predecessor of Joy City Real Estate) to broaden financing channels, thus realizing the rapid development of commercial real estate." People close to COFCO said frankly, "From the stock price and market value of Joy City, it is not ideal. The overall market value exceeds HK$ 654.38+06 billion, and the recognition of the capital market is not high. "

When COFCO injects commercial real estate resources into the listing platform of the Hong Kong Stock Exchange, the focus of the market is whether COFCO, which operates on the dual capital platform, can catch up with others in real estate business. But judging from the current performance, the strength and speed of catching up are not strong. Then, after the integration and reorganization, can COFCO get more applause on the real estate business stage? In this regard, the above analysts believe that it is not difficult from the current point of view. "After the integration, in addition to the existing holding and selling properties, COFCO should also find a rationality for the real estate business, or more accurately, a breakthrough. After all, the current industry situation is that the stronger the stronger, only by finding the right export can the latecomers catch up. " It is understood that the combination with the main industry agriculture may be the breakthrough that COFCO is looking for for for real estate business.

In addition to carrying the integration content of real estate business, some institutions pointed out that the reorganization of COFCO Real Estate will also be related to the asset securitization of COFCO. It is reported that COFCO Real Estate may become a platform for listing COFCO Capital. It is reported that the specialized company of COFCO's financial business is COFCO Capital, and its business scope includes trust, futures, insurance, banks and funds. According to the internal setup of COFCO, COFCO Capital will choose different securitization schemes such as restructuring and IPO according to the market environment. For this restructuring, COFCO Real Estate did not give more explanation except for the announcement that it would continue to suspend trading.