Taihua Land is the only real estate company under Taihua Holdings. It was originally a merger of many companies, including the property management company of Taihua Supermarket Group, the real estate company of Bingcheng Pharmaceutical Group, and the real estate company of Bingcheng Machinery Manufacturing Group. It is now a wholly-owned subsidiary of Taihua Holding Group.
At the beginning, many state-owned enterprises in China had real estate development companies, which would relocate old factories, develop them and sell them to make money. At that time, many state-owned enterprises were not doing well in their main business, so they had to find something to make money. Can factory workers weather the storm
Later, Feng Yu saw that they were working independently, without scale, and their strength was slowly improving. When the Taihua Supermarket Group expanded, it needed a real estate company, so he integrated them and formed a large-scale real estate company.
Later, the Taihua Supermarket Group expanded to a certain scale. It has basically occupied the first and second tier cities. Third-tier cities and below are not suitable for opening Taihua super hypermarkets. It is no problem to open a Taihua Supermarket, so this business was sorted out separately. , became Taihua Land.
In this way, Taihua Supermarket Group will have more sufficient funds, and Taihua Holdings Group can also use Taihua Land to build new factories, office buildings, etc.
But to be honest, Feng Yu has never paid much attention to this aspect. In this generation, China did not regard real estate as a pillar industry. Instead, it regarded urban infrastructure and transportation as pillar industries. Real estate was only an auxiliary project.
Therefore, the rise in housing prices in China in this life is not as fierce as in the previous life, and many bubbles have been avoided. However, because China's overall economic level has improved, people's demand for houses is still increasing, and urban shanty town renovations are also being vigorously promoted. As a result, housing prices in good locations are still rising rapidly.
This also gives Wanda room for development, allowing Wang Jianlin to become the leader of China's private real estate industry, even much better than many centrally-owned enterprises.
Now, the development of Taihua Land is average, ranking tenth in the country. For many people, it is already very satisfactory. But in Feng Yu’s view, the development is still not good. The main reason is that the managers in this area are average and courageous. Also relatively small.
Other real estate companies have good profits, and their annual turnover is growing rapidly. However, Taihua Land's development is getting slower and slower, and its main profit has become the rent of office buildings and shopping malls. They have never been in the residential sector, and of course they have lost a large part of the market.
However, Taihua Land has many professional technical and management talents, sufficient machinery and equipment, and no liabilities, so its assets are still of very high quality.
What Wanda lacked was this aspect, so it had many cooperations with Taihua Land during its development.
Wang Jianlin took a look and realized that Taihua Land was not the main business of Taihua Holdings anyway, and its annual revenue was not high. Maybe Taihua Holdings really didn't care about this business, so it would be just right for him to buy it.
If Wanda annexes Taihua Land and adds the reserve land owned by Taihua Land, after development, Wanda may become the world's number one urban complex developer, and its property assets can also rise to the number one in the world!
Being No. 1 in China and No. 1 in the world sound very different. This will also play a vital role in promoting the future IPO of Wanda.
In fact, despite its large scale, Wanda has a very high debt ratio. Although there is no risk of bankruptcy for the time being, the debt ratio is high and there are many constraints on the development of the group. Most of the money earned is used to pay off debts.
The interest on the debt rolls up every year, and they are also under great pressure. By raising capital through IPO and listing, the debt ratio can be reduced, the risk of business operations can be reduced, and the profits of the company can also be increased.
The more high-quality assets there are, the higher the stock price will be during the IPO, and by issuing the same number of shares, more funds can be raised, which is more cost-effective.
Anyway, Wanda Group still has shares in Taihua Consulting. Isn't Taihua Consulting also a subsidiary of Taihua Holdings Group? It is not Feng Yu's industry.
Feng Yu would not suffer any loss if he turned left or right. Wang Jianlin felt that his suggestion was not offensive.
Originally, he planned to talk to Liu Chuanzhi. Since he met Feng Yu today, it would be better to talk to Feng Yu. After all, Feng Yu is the real decision-maker of Taihua Holdings today.
He became even more excited when he saw Feng Yu's thinking expression. If there is no objection, then there is a chance!
Feng Yu Niutou asked Wu Zhigang: "Gangzi, how much assets does our Taihua Land have?"
"Including our reserve land, as well as the office buildings and other property assets under our name, the value calculated a year ago was about 49 billion yuan, and now it is absolutely no problem to calculate it to 50 billion yuan."
Fengyu Building and Taihua Building are also listed under Taihua Land. Feng Yu does not intend to sell these. Fengyu Building was sold to Wanda Group, so what's going on
"Office buildings and other properties are spun off, and a property asset management company is established. The remaining assets can be sold to Wanda Group for how much money. Director Wang, even if those properties are spun off, the remaining land, machinery, personnel , brands and other assets must be worth more than 30 billion RMB. Even if I sell takeout for RMB 40 billion, people are rushing to buy it. How much do you plan to pay? Do you have enough funds?"
Even though Wanda has a big plate, its debt ratio is too high. They will never be able to come up with 40 billion in cash. Feng Yu's intention was to exchange this part of the assets for Wanda's shares.
When Wang Jianlin heard Feng Yu's question, he immediately replied: "We, Wanda, are planning to raise shares and go public. Judging from our Wanda brand at this time, the raising of shares will be very simple. There is absolutely no problem in raising US$20 billion."
"Oh? Are you already planning to go public? In New York? The market there doesn't seem to be very good."
Wanda's report at this time must be non-profit, so it will not be listed in China, and it will be difficult in Hong Kong. It can only be listed on a market like Nasdaq.
Why many Chinese companies choose to list on Nasdaq is because the barriers there are low. Of course, Nasdaq has always had the largest number of companies bankrupt and delisted.
But at this time, the impact of the economic crisis caused by the financial crisis in the United States has not yet passed. The stock market in the United States is still at a low point and has no intention of rising. Listing there at this time is not a good choice.
If the market is not good, there will be fewer investors. At this time, it is difficult to set a high issue price for the IPO. The amount of funds that can be raised with the same number of shares will definitely be much less. At this time, the IPO will suffer a loss.
Of course, if some companies have to go public, they will also choose to go public at this time. Feng Yu feels that Wanda has not reached this time yet.
"Does Director Feng want to use these assets to buy shares in Wanda?"
Wang Jianlin frowned. Wanda has gone through a round of non-public financing, in which Taihua Consulting is also one of Wanda's shareholders. If Taihua Land is allowed to price the shares this time, then Wanda's absolute controlling interest may not be in In his hand.
At this time, he had to consider the pros and cons.
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