Topic: One word limit! Central and southern construction is on the verge of delisting for a turnaround
Stock speculation depends Jin Qilin analyst research report , authoritative, professional, timely and comprehensive, to help you tap potential theme opportunities!
On the verge of delisting Central South Construction (000961. SZ), is actively looking for strategic cooperation institutions.
According to market news, led by the government of Haimen District, Nantong City, Jiangsu Province, Zhongnan Urban Construction Investment Co., Ltd., the controlling shareholder of Zhongnan Construction, is negotiating debt resolution, equity transaction and other cooperation with Pacific Alliance Group (PAG), a well-known private equity investment company in Asia, Jiangsu Assets and other institutions. On the afternoon of April 20, the Daily Economic News reporter confirmed the news to Central South Construction.
On April 22, Zhongnan Construction, whose share price has been lower than 1 yuan/share for 11 consecutive trading days, ushered in a "one word board" ceiling. The latest share price was 0.84 yuan/share, with a market value of 3.21 billion yuan.
PAG, which is proposed to be rescued this time, has an asset management scale of more than 55 billion dollars, and is known as the "small black stone" in Asia in the industry. A few days ago, the Group officially signed an investment agreement in Dalian, jointly with Middle East Capital, to invest about 60 billion yuan in Dalian Xindameng Commercial Management Co., Ltd. to restructure the equity of Zhuhai Wanda Commercial Management Co., Ltd.
The former real estate giant sounded the delisting alarm
Zhongnan Construction was once a listed company controlled by Chen Jinshi, the richest man in Nantong, Jiangsu Province.
On April 21, Zhongnan Construction released the second risk warning announcement that the listing may be terminated because the closing price of the stock is continuously lower than 1 yuan. The announcement said that, as of April 19, 2024, the closing price of the company's shares had been lower than 1 yuan/share for 11 consecutive trading days, there was a risk that the listing might be terminated according to the regulations, so please pay attention to the risk.
It is understood that in the face of delisting crisis, Zhongnan Construction held research activities, and received the participation and support of leaders of Haimen District Government of Nantong City and well-known securities firms. Moreover, as the headquarters of the Central South Group, Haimen District reiterated the specific measures to help the Central South Construction to deal with capital market risks.
Photo source: Screenshot of Zhongnan Construction official website According to the information provided by Central South Construction, on February 19 this year, the Haimen District Government mentioned seven measures at the communication meeting to support the development of Central South China, including the establishment of a special government enterprise team in the capital market and the establishment of a rapid coordination mechanism; Further coordinate the consultation between the company and financial institutions, and support and help the corporate bonds; Promote the cooperation between local state-owned construction enterprises and the company's construction business at the project level, and further support the company to participate in the construction of local major projects; Support social capital to set up investment funds through the market-oriented mechanism, introduce strategic investors, and increase the company's shares; Under the premise of marketization and legalization, further explore the company's asset revitalization and provide necessary liquidity assistance; Help the company's shareholders communicate with financial institutions, coordinate with local courts, and gradually resolve the risk of share pledge; Accelerate the implementation of the company's white list projects, and support the company to further ensure the delivery of buildings and people's livelihood.
At the beginning of this month, Nantong Construction and Transportation Group Co., Ltd., a subsidiary of Nantong Municipal Government, and Jiangsu Zhongnan Construction Industry Group Co., Ltd., a wholly-owned subsidiary of Zhongnan Construction, formally reached a strategic cooperation agreement. The two sides will cooperate in three fields of technology, general contracting and professional subcontracting to jointly promote the market and business.
More than 30 years ago, the parent company of Zhongnan Construction, Zhongnan Group, was formerly a construction contractor team, led by Chen Jinshi, who started his business with a total of 5000 yuan.
In 2020, with the scale of the real estate industry reaching the peak, Central South Construction and its controller Chen Jinshi reached the peak. In that year, the contract sales amount of Zhongnan Construction exceeded 200 billion yuan, and the cumulative contract sales amount reached 223.8 billion yuan. Chen Jinshi, with his wealth of 14 billion yuan, ranked 388 in the Hurun Rich List of the year and the first in Nantong, Jiangsu Province. Nantong is Chinese architecture Chen Jinshi became the leader of Nantong's "Iron Army of Architecture".
Photo source: Screenshot of Zhongnan Construction official website In recent years, with the overall downturn of the real estate industry, the performance of Zhongnan Construction, which had a sales scale of more than 200 billion yuan at its peak, also declined precipitously.
According to the performance forecast of Zhongnan Construction in 2023, its net profit attributable to the parent company in 2023 will be between 5 billion yuan and 3 billion yuan, while its net profit attributable to the parent company in 2022 will be -9.17 billion yuan. This has been the answer sheet for Central South Construction to make losses for three consecutive years.
According to the sales data released by Zhongnan Construction, in the first quarter of 2024, the cumulative contract sales of Zhongnan Construction was only 4.73 billion yuan, a year-on-year decrease of 38%.
According to its third quarter report in 2023, the total assets of Zhongnan Construction is about 280 billion yuan, and the total liabilities reach 256 billion yuan, with the asset liability ratio exceeding 90%.
Who is Taimeng planning to help?
Last year, 12 real estate enterprises in Shanghai and Hong Kong were delisted. In the current crisis, an equity transaction negotiation was launched between Central South China and Pacific Alliance Investment Group (PAG).
According to market news, led by the government of Haimen District, Nantong City, Zhongnan Urban Construction Investment Co., Ltd., the controlling shareholder of Zhongnan Construction, is negotiating with Asia's famous private equity investment company Pacific Alliance Investment Group (PAG), Jiangsu Assets and other institutions for debt resolution, equity transactions and other cooperation. On the afternoon of April 20, the reporter of the Daily Economic News confirmed the news to Central South Construction.
According to the official website of Taimeng Investment Group, the company is a private equity investment company focusing on the Asia Pacific region. Its business segments include private equity, real estate, credit and market investment. The company was founded in 2010. Its co founders Shan Weijian, Chris Gradel and Jon Paul Toppino merged the three businesses to form Taimeng Investment Group.
As of December 31, 2022, Taimeng Investment Group has managed more than 50 billion dollars of assets for nearly 300 institutional fund investors around the world, and is known as the "little black stone" in Asia in the industry.
As a key figure of Taimeng, Shan Weijian graduated from Beijing University of International Business and Economics (formerly Beijing University of International Business and Economics) with an English major in 1979, and received a master's degree in business administration from the University of San Francisco in December 1981, followed by a master's degree in economics and a doctor's degree in business administration from the University of California, Berkeley, in December 1984 and May 1987, respectively.
Shan Weijian has more than 28 years of investment management experience and founded Taimeng's private equity business in 2010. Before joining Pacific Alliance Investment Group, Shan Weijian served as the executive partner of TPG Capital, Ltd. (formerly Newbridge Capital Ltd.) from February 1998 to June 2010, and served as the general manager of JPMorgan Chase Group from 1993 to 1998.
The proposed Taimeng Investment Group is exactly the person who brought Wang Jianlin to the end of 2023.
The Daily Economic News once reported that on December 12, 2023, Taimeng Investment Group and Dalian Wanda Commercial Management Group jointly announced to sign an investment framework agreement to restructure the equity of Zhuhai Wanda Commercial Management. According to the agreement, Dalian Wanda Commercial Management Co., Ltd. holds 40% of the shares, and Taimeng Investment Group and other investors hold 60% of the shares. On this basis, on March 30 this year, Taimeng Investment Group, CITIC Capital, Ares, a fund under Ares Management, Platinum Peony, a wholly-owned subsidiary of ADIA, and Mubadala Investment Company officially signed an investment agreement in Dalian, jointly investing about 60 billion yuan in Dalian Xindamong Commercial Management Co., Ltd.
Image source: provided by enterprises 60 billion yuan, which is Wang Jianlin's second "Century Signing". The last one was seven years ago, involving an amount of 63.75 billion yuan. The traders were Sun Hongbin and Li Silian.
Before Wanda Business Management, the investment portfolio of Taimeng also includes many well-known Chinese enterprises, such as iQiyi, Naixue Tea, Sinopharm Group, Bray Biology and Zhenai.
When the stock market recovers, open an account first! Intelligent fixed investment, condition sheet, individual stock radar... for you>>
Massive information, accurate interpretation, all in Sina Finance APP
Editor in charge: Yang Hongbo
