What do you think of the changes in the real estate industry when two former 100 billion housing enterprises withdrew from the market？
BEIJING, Beijing, August 10 (Zhongxin Finance reporter Zuo Yukun) In the recent real estate market, the delisting of several well-known housing companies in the past is embarrassing.
On August 4th, ST Sunshine City announced that the company received the "Decision on the Termination of the Listing of Sunshine City Group Co., Ltd." issued by Shenzhen Stock Exchange, and the company was decided to terminate the listing; On August 3, ST Taihe announced that the company’s stock has been decided by Shenzhen Stock Exchange to terminate its listing and will be delisted on August 4, 2023.
A-shares have been ups and downs for several years, and the journey of real estate giants who once dominated the country in the capital market has temporarily come to an end, but the road ahead is far from the end.
Two Fujian-based housing enterprises were forced to withdraw from the market.
"Taihe’s products have won high recognition from customers, but Taihe’s stock has not been recognized by the capital market." In May, Huang Qisen, chairman of Taihe Group, said this when he visited Xiamen Yard and Tingxi Yard in Xiamen.
It is reported that from May 8, 2023 to June 2, 2023, the daily closing price of Taihe Group’s share price was lower than that of 1 yuan for 20 consecutive trading days, which touched the relevant provisions of the Stock Listing Rules (Revised in 2023) of Shenzhen Stock Exchange. According to the relevant regulations, the stock of Taihe Group was directly terminated from listing and did not enter the delisting period.
In 2010, Taihe became the only listed real estate enterprise in China by "backdoor" Fujian Agriculture, Countryside and Farmers. From the region to the whole country, Taihe has many high-light moments with sales exceeding 100 billion. At the peak of 2018, Taihe’s share price once surpassed 21 yuan/share, but this year, the delisting price of 0.43 yuan/share has dropped by 98% compared with the historical high.
2018年对于阳光城来说，同样也是值得纪念的一年。身为闽系房企曾经的“领头羊”，自2002年在深交所上市后，阳光城的销售额在2018年突破千亿并愈战愈勇，在2020年冲破2000亿元的门槛，先后布局全国逾100座城市，综合实力曾位列中国地产20强。
但它也在今年转动了和泰禾相似的命运齿轮。阳光城集团股份有限公司股票在2023年5月15日至2023年6月9日期间，连续二十个交易日的每日收盘价均低于1元，被终止上市。
阳光城创始人林腾蛟一向看重人才，将人力资源视为第一战略，更是舍得在人才上花钱。这也让阳光城一度以高薪酬著称，有报道称其曾以人均40万元的年薪居地产圈之最。
在2021年公司出现流动性问题后，林腾蛟积极奔走自救，阳光城更是上至高管、下至一线员工全部降薪。但同舟共济并未能带领企业走出困境，退市锤音落下，阳光城的斜晖引来不少股民感慨“世界500强，恍如昨日”。
"Defence War" under the Crisis
In 2020, the introduction of the "three red lines" forced real estate to deleverage, completely rewritten the industry rules, officially declared the end of the industry’s mode of relying on high leverage, high debt and high turnover to achieve high growth, and also changed the fate of many blindly expanding housing enterprises.
"At present, judging from the reasons for the delisting of real estate enterprises, most of them have negative net profit and revenue of less than 100 million yuan, and the closing price for 20 consecutive trading days is lower than the face value of the stock. In other words, most of the delisting of housing enterprises can be attributed to the continuous large losses caused by poor management. Therefore, many housing enterprises will face ‘ Unable to issue or issue a negative audit opinion ’ 。” Zhang Bo, dean of 58 Anjuke Research Institute, said.
In the competition of the capital market, although the par value is lower than that of 1 yuan, it almost means that one foot has entered the rhythm of delisting, but there are still many people who are struggling to save themselves.
For example, the share price of Jinke Co., Ltd. hit a record low of 0.77 yuan/share in May this year, and its face value is lower than that of 1 yuan, so the delisting situation is in jeopardy. It then used "delaying tactics" such as increasing its holdings, capital injection and acquisition plan to operate, and its share price was restored to above 1 yuan/share.
At the same time, it has caught up with the timely introduction of various real estate adjustment policies, and Jinke Co., Ltd. "turned over" has become the rising leader of real estate stocks in the secondary market. At present, the share price has risen above 2 yuan/share, and the crisis of delisting at par value has basically been lifted.
A number of Hong Kong-listed housing enterprises also ushered in a turning point. In the first half of the year, Kaisa Group, Jing Rui Holdings and Sunac China, listed real estate companies in Hong Kong stocks, successfully resumed trading. Although the stock price has not stabilized after the resumption of trading, the financing channels in the capital market are temporarily saved.
However, there are only a few listed companies that can get rid of the crisis from the edge of delisting. According to the statistics of the Central Finger Research Institute, two housing enterprises have been delisted in the first half of the year, eight housing enterprises have been delisted, and many housing enterprises are facing the risk of delisting. In the second half of the year, there is a greater probability that listed housing enterprises will delist.
How to treat the industry change
Liu Shui, director of enterprise research at the China Central Finger Research Institute, believes that on the one hand, the delisting of stocks will reduce the valuation of the company’s value, damage the interests of shareholders, affect investors’ confidence, limit financing channels, damage the brand, affect project sales, and have an adverse impact on debt restructuring and risk clearing; On the other hand, the delisting of many real estate enterprises has a great impact on debt restructuring, building security and boosting industry confidence.
But what needs to be clear is that delisting itself also belongs to the normal operation of the capital market. Bank of China Securities said that enterprises facing delisting risk are still individual phenomena, and the market value accounts for only 2% of the total market value of 115 real estate A-share companies, which has relatively limited impact on the sector and should be treated rationally. Strengthening the delisting system will help to ensure the reasonable supply of the stock market, enhance investors’ risk awareness and accelerate the clearing of the industry.
The delisting mechanism is not cruel, but it is also one of the manifestations of the survival of the fittest in the competition for the real estate industry. Even if the resumption of trading is successful, the industry only regards it as the first step out of the risk, and returning the company to normal operation is the good medicine to restore investor confidence. Soochow securities Research Report pointed out that a new era of the industry has arrived, and all the housing enterprises that can pass through this round of industry contraction will usher in a new pattern of obviously optimized competitive environment.
Since the end of 2022, bank credit support, bond financing assistance and equity financing of financial policies have been loosened, and high-quality housing enterprises have enjoyed more support. At the same time, the distance between high-quality housing enterprises and dangerous housing enterprises has further widened. "In the past two years, the pattern of the real estate industry has been changing constantly, and the differentiation between housing enterprises has become more and more obvious." Soochow securities said.
According to the monitoring of the Central Finger Research Institute, under the period of deep market adjustment, the differentiation of different types of enterprises has intensified, the market share of central state-owned enterprises has increased compared with last year, and new power housing enterprises are also rising. One is diversified industrial enterprises focusing on developing existing real estate business, and the other is local small and medium-sized real estate enterprises, which focus on the market where the enterprises are located and cooperate with large housing enterprises to develop projects.
The new pattern has begun, and where the new development model is, it still needs to be explored by all housing enterprises. (End)