On January 21, the chairman and president of Greenland Holdings Zhang Yuliang revealed in an interview with a reporter from China Securities News that Greenland Holdings twice The mixed reform is being further promoted, and one of the main goals is to introduce financial central enterprises. Currently, Greenland Holdings has conducted in-depth contacts with two central enterprises. At the same time, Greenland Holdings will gradually promote its subsidiary Greenland Digital to achieve capitalization through spun-listed and other means.
Zhang Yuliang said that Greenland Holdings is confident of maintaining steady growth in its main indicators, while reducing debt on the premise of high-quality development.”We will do a lot in 2020 (debt reduction), and we will continue this year. We will strive to achieve the short-term debt ratio in the first quarter of this year. The time point for debt reduction will be advanced.” Zhang Yuliang said.
Secondary mixed reform in progress
Zhang Yuliang said, “The first time I heard that Greenland Holdings will be acquired.” He introduced that Greenland Holdings is proceeding The second mixed reform has already had in-depth contact with two financial central enterprises, but this is the specific advancement of the second mixed reform disclosed in July 2020, and it is not”acquired.”
According to previous news, the state-owned enterprise reform fund formed by Vanke + Chengtong, China Shipping and other investors The investor will complete the acquisition of no more than 17.5%of Greenland Holdings.
Zhang Yuliang clearly denied this news.
In July 2020, Greenland Holdings announced that in order to further deepen the reform of state-owned and state-owned enterprises, optimize the adjustment of state-owned assets, and improve the company’s shareholding structure, Shanghai Real Estate Group and Shanghai Urban Investment Group intend to accept transfers through public solicitation The parties agree to transfer part of the shares held by Greenland Holdings, and the total proportion of shares to be transferred shall not exceed 17.50%of the company’s total share capital.
At the same time, Greenland Digital, a subsidiary of Greenland Holdings, is advancing its listing.
Introduced by Zhang Yuliang, Greenland Digital was reorganized from the previous Greenland Financial Control, with a registered capital of 19.9 billion yuan. In 2020, Greenland Digital Services has achieved remarkable results in service entities; the targeted capital increase of 6 billion yuan has been completed, and funds will be available in the near future. In 2020, Greenland Digital has also obtained Singapore’s digital banking license; the agreement to acquire a medium-sized domestic property insurance company has been signed and is being submitted for approval by the China Banking and Insurance Regulatory Commission.
“The above measures are all to strengthen our financial sector. From the perspective of licenses, Greenland Digital already has banking, insurance, and original securities, trust, financial exchange licenses. If it can be coordinated The advantages of development are quite obvious.” Zhang Yuliang said.
However, Zhang Yuliang said that the listing location of Greenland Digital has not yet been finalized.
It is worth noting that the Shanghai State-owned Assets Supervision and Administration Commission stated on January 7 that Shanghai has recently formulated a three-year action plan for the reform of state-owned enterprises. According to the implementation plan, Shanghai will focus on strengthening and improving state-owned capital and state-owned enterprises to achieve high-quality development of the state-owned economy. The implementation plan is clear. By 2022, Shanghai State-owned Assets System will add about 10 new companies to the Science Innovation Board.
Wu Zhengkui, deputy general manager of the finance department of Greenland Holdings, admitted that Greenland Digital may eventually choose to list on the Science and Technology Innovation Board.
Zhang Yuliang introduced that the listing of Greenland Infrastructure has not yet been put on the agenda.
Since the establishment of the Greenland Major Infrastructure Group in early 2020, the major infrastructure has been upgraded to become one of the two core businesses with equal emphasis on the Greenland real estate sector. After the development in the second half of 2020, the focus of the dual main business has clearly shifted to the large infrastructure industry. In 2020, the carry-over income of the greenfield real estate industry was 217.1 billion yuan, and the revenue of major infrastructure member companies was 280.1 billion yuan, a year-on-year increase of 12%and 19%respectively.
Reduce the debt ratio
Currently, the regulatory authorities’ management of real estate financing is mainly based on the”three red lines” as the standard, that is, The asset-liability ratio is greater than 70%; the net debt ratio is greater than 100%; the cash short-term debt ratio is less than 1 time.
Zhang Yuliang said that the first thing Greenland has to do is to increase its cash short-term debt ratio. He introduced that the cash short-term debt ratio target originally planned to be completed by the end of June this year, judging from the content of the announcement on January 20, strives to be completed in the first quarter of this year.
On December 8, 2020, Greenland Holdings disclosed that with its own funds of approximately 8.9 billion yuan, the 2015 corporate bond (first tranche) 2020 principal and interest payment was completed in full and on schedule. For the approximately 8.1 billion yuan of bonds that will mature in January 2021, Greenland will also use its own funds to redeem principal and interest on schedule. At that time, Zhang Yuliang, Chairman and President of Greenland Holdings, stated that from the second half of 2020 until now, Greenland has taken the initiative to reduce debt and deleverage in a planned, step-by-step, multi-pronged manner based on the requirements of the prudential management system for real estate finance formulated by the central and relevant ministries and commissions. , Optimizing the structure, steadily lowering the cost of credit, focusing on strengthening fund management, and continuously improving risk resistance and operating resilience.
It is understood that Greenland’s internal”three-year three-step” deleveraging plan takes June 30th each year for the next three years as the time node, mainly focusing on the short-term cash debt ratio, net debt ratio, and pre-excluded The three major indicators of the asset-liability ratio after the sale have set phased targets, which will be fully “achieved” after three years.
The relevant person in charge of Greenland Holdings introduced that Greenland will actively reduce debt and deleverage around the six core measures. One is to actively reduce the scale of interest-bearing liabilities and optimize the structure of assets and liabilities. Including reducing the proportion of short-term loans and increasing the proportion of medium- and long-term loans; in a variety of ways, speeding up the disposal of large stock assets such as commerce, offices, hotels, etc., and promoting the return of funds. The second is to focus on growth areas, optimize the structure of land reserves, and improve the quality of land investment. Focus on the core growth poles of China’s economy such as the Yangtze River Delta and the Greater Bay Area, and focus on urban agglomerations, metropolitan areas and Its overflow area comes up. The third is to flexibly adjust the pace of production and supply according to market conditions.”Adopt policies in accordance with the city, implement policies in accordance with the inventory”, strengthen the concept of”determine production by sales and supply in batches”, and control the rhythm of production and supply. The fourth is to accelerate the return of sales funds and implement prudent and steady cash flow management. Continuously improve the efficiency and quality of payment collection, and further strengthen the collection and settlement of accounts receivable. The fifth is to accelerate the construction and delivery of sold projects. Sixth, actively enrich corporate capital and enhance capital strength. (Gao Gaifang)