Wen/Leju Financial Yanming Meeting

Two days ago, Wang Hongquan Star, a millionaire online celebrity who showed off his wealth, was banned by multiple platforms. He once claimed that there were no eight figures in his life and said that he had seven luxury houses in Beijing Xinghewan Community, all of which were over 300 square meters, and the largest one was 991 square meters. However, he hated the location of the house and left it empty.

Star Community in Beijing Xinghewan, known as "half of the entertainment circle lives", where many stars and celebrities live. According to the trading platform, in April 2024, the average price of second-hand houses in Star River is 99980 yuan/m2. Wang Hongquanxing himself said that he had considered carefully when purchasing real estate, and the places where he spent money could appreciate again.

The house in Star River has its own label of "luxury house".

In 2001, Huang Wenzai launched the Star River, a luxury community, on the bank of the Pearl River in Panyu, Guangzhou, with the slogan of "Rolls Royce in Real Estate". At that time, the overall price of commercial housing in Guangzhou was about 3000 yuan per square meter, while the average price of Star River was as high as 14000 yuan. The house was sold out in just over a month, creating a record of "highest price and fastest sales" in Guangzhou.

Since then, Star River has become a synonym for high-end luxury residential projects. Huang Wenzai has thus established the corporate strategy of "building houses only for the rich", and also has the title of "Godfather of luxury houses".

In the middle of April, the second batch of houses in Xinghewan, Qujiang, Xi'an began to register. In the case of tens of millions of flats, the one-day registration volume of Xinghewan in Qujiang exceeds twice the number of houses.

Star River Group The power and capital of are always transferred within the family.

One month ago, Huang Jianhui, Huang Wenzai's eldest daughter, resigned from the position of legal person and general manager of Star River Real Estate, and remained as president. Her successor was Wu Huizhen, Huang Wenzai's second wife.

At present, Huang Jianhui indirectly holds 3.13% of the equity of Star River Real Estate, Wu Huizhen holds 3.75% of the equity, and Huang Wenzai holds the remaining 94.72%. The fading out of Huang Jianhui means that Wu Huizhen has further power.

Huang Wenzai once said that Star River Real Estate "has no dollar bonds, no commercial bills, no fund-raising, and low liabilities."

In mid April, Star River Real Estate announced that it planned to prepay all outstanding principal and interest of "21 Haiyi 01" bonds in advance. This is the only remaining bond of Xinghewan Real Estate, issued on June 30, 2021, with an amount of 1.1 billion yuan, the current existing scale of 235 million yuan, the coupon rate of 8.50%, and the maturity date of June 30, 2026.

According to the consolidated balance sheet of Star River Real Estate, by the end of 2023, the balance of its short-term borrowings is 5 million yuan; Among the non current liabilities due within one year, the long-term borrowings due within one year are 928 million yuan, plus the long-term loan interest and bond interest payable due within one year are about 40 million yuan, the short-term interest bearing liabilities are about 973 million yuan, and the balance of cash and cash equivalents at the end of the period is 5.148 billion yuan; The cash to debt ratio reached 5.29.

At the end of 2023, the balance of bonds payable of Star River Real Estate is 234 million yuan; By the end of 2022, Star River Real Estate still holds 1.095 billion yuan of bonds payable. In June 2023, Guangzhou Panyu Haiyi Real Estate, a subsidiary of Xinghewan Real Estate, sold back and cancelled 865 million yuan of "21 Haiyi 01" bonds.

On the one hand, it has reduced public debt, and on the other hand, it has established its own financing path by means of mortgage, pledge and guaranteed loan. At the end of 2023, its long-term borrowings increased by 38.98% to 14.184 billion yuan compared with 2022.

Compared with 2022, the asset liability ratio of Star River Real Estate will increase in 2023. Its total assets at the end of the period were 71.737 billion yuan, total liabilities were 54.297 billion yuan, and the asset liability ratio was 75.69%. This is also the year with the highest asset liability ratio of Star River Real Estate in recent five years. From 2019 to 2022, its asset liability ratio will be 74.13%, 74.53%, 72.57% and 73.77% respectively.

As of the end of the period, the proportion of unrecovered non operating current accounts and capital lending of the issuer of Star River Real Estate in the consolidated net assets was 25.83%. The reason is: current accounts generated by internal fund transfer.

Most of the loans between Star River Real Estate and related parties do not generate interest. In 2023, Star River Real Estate borrowed 4.619 billion yuan from related parties, and repaid 2.576 billion yuan. To close MediaTek Lending funds totaled 3.964 billion yuan, and the amount recovered from lending was 2.681 billion yuan, of which only one related party of Qingdao Xinghewan Real Estate was charged with interest. The major shareholder of the company is Beijing Xinghewan Real Estate, which holds 51% of the shares.

Among the receivables of related parties, the top five are Beijing Xinghewan Real Estate, Guangzhou Hongfu Real Estate, Guangzhou Development Zone Urban Renewal Bureau, Guangdong Yufeng Construction, and Guangdong Lihong Enterprise Management. The five companies generated a total of 4.692 billion yuan of receivables, including 774 million yuan of bad debt provision.

In 2023, the net profit of Star River will be 175 million yuan. The accrued bad debts have far exceeded the profits.

In addition, Star River will increase its income but not its profit in 2023. In 2022, the net profit of Star River Real Estate will be 957 million yuan. In 2023, Star River will achieve an operating revenue of 9.829 billion yuan, up 23% year on year.

In addition to the Guangzhou Development Zone Urban Renewal Bureau, whose funds are deposits and deposits, the other four companies are closely related to Star River Real Estate.

Beijing Star River Real Estate was established in September 2008, and its legal representative changed from Wu Huizhen to Liao Zhaogang in December 2023. The initial shareholder is Guangzhou Hongxing Investment Co., Ltd., with Huang Wenzai, Wu Huizhen and Mai Zhiqiang holding 87%, 5% and 5% respectively. In June 2010, Hongxing Investment transferred 100% equity of Beijing Xinghewan Real Estate to Wu Huizhen. Now, Beijing Star River Real Estate is 100% owned by Wu Huizhen.

Guangzhou Hongfu Real Estate was established in January 2000, and its legal representative was Liu Chuang Star River Industry Development Co., Ltd. and Xinghewan Real Estate hold 50.99% and 49.01% respectively, the former is controlled by Hongyu Enterprise group (Hong Kong) holds 98.31% shares. Huang Wenzai is the beneficial owner.

Guangdong Yufeng Construction was founded in April 2019, with Xu Haijing as the legal representative, 100% owned by Guangdong Yufeng Industry, which is wholly owned by Hong Kong Yufeng Construction Group, and Wu Huizhen as the head of the company.

Guangdong Lihong Enterprise Management was established in February 2021, with Wu Huizhen as the legal representative, holding 99% of the shares, and Xie Liyan holding the other 1%.

Beijing Xinghewan Real Estate Co., Ltd. is the largest lender of funds in Xinghewan and also has the largest number of bad debts. In Beijing Xinghewan Real Estate and Galaxy Real Estate Of the 1.34 billion yuan related transactions, about 488 million yuan of bad debts were generated, more than half of the total bad debt provision.

Guangzhou Hongfu Real Estate was followed by Xinghewan Real Estate, with which it had a related party transaction of about 1.3 billion yuan and a bad debt provision of about 200 million yuan.