The clearing of risky housing companies by exchanges is accelerating.Less than 10 days after *ST China Real Estate was forcibly delisted, another established Guangzhou real estate company has reached the end of the capital market.
On May 26, an announcement from *ST Greenview (Greenview Holdings, 000502. SZ) disclosed the news.It received the "Decision on the Termination of Listing of LVGEM Holdings Co., Ltd.'s shares" issued by the Shenzhen Stock Exchange, and the company's shares were terminated from the Shenzhen Stock Exchange.
LVGEM Holdings was first listed on the Shenzhen Stock Exchange in November 1992, and it is one of the earliest listed real estate companies in China.However, like *ST China Real Estate, the company's real estate business has been stagnant for a long time, and its continuing operations are facing uncertainty. In recent years, it has fallen into continuous losses.
It was once blessed by Evergrande, and then transferred to Yu Bin's "Tianyu Department". For more than ten years, LVGEM has tried to get rid of risks through restructuring and transformation many times. Hotel management, mining investment, biomass energy, medical industry, Education has become the direction of transformation.
But good luck makes people, none of these transformations have been successful, and the decline in performance has not changed.
On May 6, 2021, due to the fact that the audited net profit in 2020 was negative and the operating income was less than 100 million yuan, the shares of LVGEM Holdings began to be issued a delisting risk warning.
On April 30 this year, the company disclosed the annual report data, the audited net profit in 2021 was -20.4184 million yuan and the deducted operating income was 43.2832 million yuan, and its 2021 annual financial and accounting report was issued an audit report with no opinion. .
The Shenzhen Stock Exchange finally decided to terminate the listing of *ST Greenview shares.LVGEM Holdings has also become the third A-share real estate company to be forcibly delisted after China Real Estate and Zhonghong.
multiple transformation failures
After many years of poor management, to the implementation of risk warnings, and then to today's forced delisting, *ST LVGEM's fate is turbulent, first of all, it is also reflected in the frequent changes of its major shareholders.
LVGEM Holdings, formerly known as Haikou New Energy Co., Ltd., was established in May 1988 and initially only engaged in the business of new fuels and stoves.In 2002, due to poor management, LVGEM's original controlling shareholder, Hainan Runda Industrial Co., Ltd., transferred the shares of the listed company it held to Guangzhou Evergrande.
At the same time, LVGEM Holdings was purchased by Evergrande into Jinbi Yushui Villa and other related equity assets, and its main business began to become the development and operation of real estate projects, and the stock abbreviation was also renamed "Evergrande Real Estate".However, there is no hope of returning to A through the backdoor, and the business is difficult to improve. In 2006, Evergrande once again transferred the shares of the listed company to Yu Bin's Guangzhou Tianyu Real Estate Development Company, and changed its name to "LVGEM Real Estate".
LVGEM Holdings, which has become an A-share listing platform under the "Tianyu Department", has seen an improvement in its performance in a short period of time.
In addition to the original Jinbi Yushui Villa and LVGEM Dongshan Huating, it has successively developed Tianyu Jiangnan Garden and LVGEM Yuhui Garden, and won first-class land development projects in Guangdong and Guangxi.In 2008, LVGEM's operating income was 467 million yuan, and its net profit was 56.6368 million yuan, both reaching the peak of its performance at that time.
In 2009, the "Tianyu Department" faced high pressure from overseas debt and fell into trouble. The H-share listed company Tianyu Real Estate was busy transferring its assets to cash out.As one of the self-rescue methods, LVGEM Holdings was once considered by Yu Bin to sell it to HNA Real Estate.However, due to the real estate control policy at that time, this reorganization failed to take place.
Yu Bin, who was in a daze for Tianyu Real Estate, had no time to take care of LVGEM Holdings. After that, the company began to fall into a quagmire and was unable to recover.
In 2010, the real estate suffered heavy losses and the development business encountered bottlenecks.LVGEM Holdings came up with the idea of transformation.It first decided to divest the real estate development business, put in hotel management assets, and transform hotel management.
In June 2011, LVGEM Holdings announced the transformation of investment in the mining industry, and added two new business contents of "project investment and mineral resources investment" to its business scope, and invested 10 million yuan to quickly set up a subsidiary, Guangdong LVGEM Mining Resources Investment Co., Ltd. .
However, these two hastily initiated transformations came to an end.
Subsequently, in 2014 and 2015, LVGEM also planned to invest in cassava planting and processing industrialization projects in Cambodia, and cooperated with Beijing Children's Hospital affiliated to Capital Medical University to plan to enter the biomass energy and medical industries.
In early 2020, the company also planned to acquire Jiangsu Jiayi Education for 1.217 billion yuan, adding K-12 extracurricular education and training services.You must know that the cash in hand of LVGEM Holdings at that time was only 73.01 million yuan, and the purchase price of more than one billion yuan was tantamount to a snake swallowing an elephant.
These series of transformations ended in failure in the end.
Yu Bin's "Abandoned Son"
According to the 2021 annual report, the industry classification of LVGEM Holdings is still the real estate industry, but currently there is no land reserve, and there are no real estate projects under development or to be developed.
During the period, the main work of the real estate business was to clear inventory.
In 2021, LVGEM's operating income is 173 million yuan, of which IDC business accounts for 87.96% and real estate business accounts for 12.04%.In the real estate category, property management, parking space sales, and rental income accounted for 7.64%, 4.14%, and 0.27% of revenue, respectively.
The contribution and impact of the IDC business to its revenue is huge. In the past year, LVGEM Holdings achieved a revenue growth of 1071.14% with this business.However, this is also one of the transformation directions that the company is promoting for "protecting the shell".It has only just entered the field in 2021, and its contribution to future performance remains to be seen.
One fact is that the gross profit margin of its IDC business is only 6.55%, which is much lower than the average gross profit margin in the real estate industry.
In April last year, LVGEM Holdings purchased a 51% stake in Sanhe Yali held by Pangu Data in cash at a transaction price of 76.5 million yuan.Subsequently, it also acquired a 100% stake in Shenzhen Hongyi to carry out the electromechanical installation business of Internet data centers.The two companies are responsible for the engineering and operation of the data center business, respectively.
Through these two acquisitions, LVGEM Holdings stated that the company has officially transformed into an Internet data center service provider, and the Internet data center service business has become the main source of the company's operating income.
In fact, in addition to the reasons for the overall industry environment, LVGEM Holdings has always been in a slightly embarrassing situation, which is directly related to the attitude of the actual controller to it.During the years when LVGEM Holdings did not add new projects, most of its performance was supported by property management.
In 2020, before the transformation of Internet data centers, 97.08% of its revenue came from property management.
However, even though the company has been seeking transformation for many years, Yu Bin has no intention of positioning LVGEM Holdings, an A-share listed platform whose property management accounts for the bulk of its revenue, as a property service stock at a time when real estate companies are spun off and listed independently.
In March last year, Yu Bin spun off the property service from Tianyu Real Estate, and submitted a prospectus to the Hong Kong Stock Exchange under the company name of Tianyu Qingchuang Zhilian Service (hereinafter referred to as "Tianyu Service").Through the prospectus, the outside world learned that LVGEM Holdings has contributed stable income to Tianyu services over the years.
The data shows that from 2018 to 2020, the property management service income of Tianyu Service from LVGEM Holdings was 252,000 yuan for three consecutive years; the value-added service income was 351,000 yuan, 362,000 yuan, and 362,000 yuan respectively.
Not only that, but in 2021, Tianyu Service will also enter into a master service agreement with LVGEM Holdings.Tianyu Services continued to provide property management services to LVGEM Holdings, including but not limited to property management services for unsold properties and properties owned by LVGEM Holdings and Qingchuang community operation services.
That is to say, even in the face of delisting, the future LVGEM Holdings will still "abandon myself" and continue to contribute revenue to Tianyu services.
Today, the transformation of Internet data center services has become a new path that Yu Bin found for LVGEM, but he seems to be a step too late.Although the new business has brought a huge increase in revenue to LVGEM, it has been suspended by the Shenzhen Stock Exchange to terminate its listing.
Forced delisting has become the destination of LVGEM Holdings.
Delisting tide of housing enterprises intensifies
The delisting of enterprises continues, and the stock exchange's clearance of risky real estate companies is accelerating.Just past May 17, *ST China Real Estate (China Real Estate Co., Ltd., 600890. SH) announced that its stock listing was terminated by the Shanghai Stock Exchange.
Both China Real Estate and LVGEM were issued delisting risk warnings after disclosing their annual reports last year because their audited net profits in 2020 were negative and their operating income was less than RMB 100 million.
Before the two, in November 2018, Zhonghong shares listed on the Shenzhen Stock Exchange were forcibly delisted due to the debt crisis that caused the stock price to be lower than the par value (1 yuan) for 20 consecutive trading days.This also means that LVGEM Holdings has become the third A-share real estate company to be forcibly delisted after Zhongfang and Zhonghong.
In fact, since the Shanghai and Shenzhen Stock Exchanges released the "strictest in history" new delisting regulations for the A-share market in December 2020, the policy level has gradually suppressed the risks and irregularities of listed companies, and the exit of venture companies and shell companies has become increasingly strict. Clear acceleration.For example, companies that “have lost net profits for two consecutive years (before and after deductions) and their revenue is less than 100 million yuan”, and they are issued a delisting risk warning if they hit the financial delisting indicators within one year, etc., are all raised in the new regulations.
In March of this year, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued the "Opinions on Promoting the Construction of a Social Credit System with High-Quality Development and Promoting the Formation of a New Development Pattern".It is clearly pointed out that it is necessary to strengthen the integrity of the capital market.Strictly implement the compulsory delisting system, and establish a virtuous cycle mechanism for the survival of the fittest among listed companies.Strengthen the protection of investors' rights and interests, and create an honest and trustworthy financial ecological environment.
Due to the impact of the epidemic and the continuous high-pressure implementation of regulatory policies such as "three red lines", the real estate industry has been exposed to constant risks, and has become a hardest hit area in recent times.One fact is that since the introduction of the new delisting regulations, the number of real estate companies that have been issued risk warnings has increased significantly.
On May 6 this year, Tahoe was issued a negative internal control audit report in the last year, and the net profit before and after deducting non-recurring gains and losses in the last three fiscal years, whichever is lower, is negative, and the audit report for the last year shows that There is uncertainty in the company's ability to continue as a going concern, and the company's stock is subject to other risk warnings.
According to incomplete statistics from Leju Finance, there are currently 8 real estate companies that have been issued delisting risk warnings or other risk warnings in the A-share market, including China Real Estate, Yinyi, HNA Foundation, Yunnan Urban Investment, and LVGEM Holdings. , Shenzhen New Good, Yuetai Co., Ltd., Taihe.
Among these companies, except for Yinyi Shares, which was issued a risk warning in May 2019, the rest of the housing companies will be "stars and hats" after 2021.Uncertainty in operating capabilities is a major reason why these real estate companies have been issued risk warnings.For example, *st Zhongfang, *st Yinyi, *ST Brand New, *st Lujing, and st Taihe all had negative annual audited net profits.
In addition, the controlling shareholders and their related parties have capital occupation, internal control audit reports with negative opinions, and the audited net assets at the end of the fiscal year are negative.
It is worth mentioning that the risks in the industry are still to be clarified, the management of real estate companies is not very satisfactory, and the list of new thunderstorms continues to increase.Under such an industry background, who will follow in the footsteps of *ST Lujing and become the next unfortunate person to be forced to delist from the market?
