Salvation, buying Wanda City, these two transactions in 2017 to attract the attention of the capital market transactions, and the "White Knight" - Sunac China (01918.HK) Chairman Sun Hongbin are inseparable.
At the beginning of 2017, Sun Hongbin enrolled in LeTV with 15 billion. In July, he announced a total investment of 43.844 billion yuan to acquire 91% of the 13 travel deals under Wanda Commercial.
Whenever participating in mergers and acquisitions at the beginning, in the face of the public, Sun Hongbin mergers and acquisitions of the target companies and entrepreneurs are generous praise.
Sun Hongbin said, 'I have been optimistic about Lao Jia, Lao Jia is a good person, forward-looking, a very scarce entrepreneurial entrepreneur.' For Wang Jianlin, Sun Hongbin said, 'Wang Jianlin is my most respected outstanding enterprise Family. '
'What is a good life? Buy a house first, then go home and watch a TV, put our movie on TV and play in Wanda City.' Sun Hongbin summed up two transactions in his speech.
15 billion support Shanxi fellow Jiayue Pavilion
Jiayunting, a Shanxi native with Sun Hongbin, also founded LeTV in 2004. Since then, Jia Yueting has started to rapidly expand LeTV's business, portraying the capital market as a promising future for LeTV's ecosystem.
Jia Yunting in the layout of the formation of the formation of the Internet ecology, content ecology, big screen ecology, mobile phone ecology, car ecology, sports ecology, Internet finance ecology seven big ecology.Jia Yuet Ting once said that these seven ecological 'one can not less' .
However, under the background of agitation, high debts, unsustainable business models and a tightening of leverage, Jia Yueting's seven major eco ideas of relish in various speeches have collapsed.
From 2016 onwards, the bad news surrounding LeTV has not been broken, and easy to tear, music executives leave, default supplier payment, layoffs ... ... As the ecological 'empire' crumbling, the ecology has almost collapsed.
On November 6, 2016, Lotte Holdings CEO Jia Yueting sent an internal letter acknowledging funding problems and promised to resolve the issue in 3-4 months. A month later, on December 7, 2016, LeTV (300104) started Suspend.
Just as the music capital chain into crisis, as Shanxi Jiao Yue Ting Sun Hongbin appeared.
In January 2017, Sun Hongbin brought 15 billion yuan into the three companies of LeTV, LeTV and LeTV respectively and Rongchu won 8.61% of LeTV, 33.5% of LeTV and 15% equity of LeTV as the three The company's second-largest shareholder, and the presence of directors and financial staff.LeTV and music as the film industry, music as a new venture into a joint venture in China.
Jia Yunting and Sun Hongbin ancestral home with Shanxi, which was interpreted as a fellow between the rescue.
Sun Hongbin has always emphasized that real estate business is the absolute mainstay of Sunac. Investing in LeTV is a relatively small share of cash flow and has no substantial impact on the future development of Sunac.
On March 28, 2017, at Sunrong's performance in China, Sun Hongbin revealed that it has dispatched directors to three companies that have been invested by Sunac (LeTV, LeTV Zhixin and LeTV). For LeTV, Sun Hongbin sent Is the senior general manager of Sunac China Holdings Ltd. Risk Control Center Liu Shuqing, while for music as the film industry, Sun Hongbin personally sits May 21, LeTV released << Notice on the appointment of general manager of the company >> announcement that the Concentrate on the duties of chairman and concentrate on the work of corporate governance, strategic planning and core product innovation, and improve the efficiency of corporate decision-making. Mr. Jia Yueting specially applied for resigning from the post of general manager and assuming the post of chairman of the board of directors.
During this period of time, the challenge of Yue as surnamed Jia or surname Sun began to set off.
Although Sun Hongbin was publicly disclosed on various occasions for the site of Jiayue Pavilion and said, "I have been optimistic about Lao Jia, who is a good person and forward looking and is a very scarce entrepreneur with entrepreneurial spirit." But it is hard to avoid that, Sun Hongbin, whose shareholding ratio is only 8.56%, is showing step by step the influence of "Let's go to Jiayue Pavilion".
On May 22, 2017, at Sun Yat-sen's general meeting of shareholders, Sun Hongbin reiterated: 'Lao Jia is still the core of the company. Now there is a strategy that CEOs can manage the day-to-day operations of the company and can discuss with each other. This is a This is also a sign of the maturity of the music listing system, and as I said for the first time, the first one was to improve the corporate governance structure and we did not go beyond the slightest part of the contract. ?
Recognition of music as wrong to judge: willing to lose gambling clothing
However, Sun Hongbin firmly optimistic about the music, it seems that with music as the gradual burst out of a series of issues have shaken.
In Rongchuang 2017 mid-term performance site, Sun Hongbin talked about Jiayue Ting choked up.
Sun Hongbin said: 'Last year (December 2016) if I did not vote for him, then LeTV would die and I would have to help him and I must help him always. I have always said that people should be kind-hearted and why we are in the M & A market With such a cow, we do not want to harm the people, I am a rather straightforward person, and I have to be kind and I must make LeTV a good company.
In Sun Hongbin's vision, the music business model change is making money.
'This business model has done nothing wrong, we put this business model, including public companies, music, video and LeTV, I believe this new system will certainly be valuable in the future. Really is a good thing, Laja let us have a take-off to continue to do the new music as a completely different business model, the video platform competition BAT, because of their traffic, then we take a step back and do Internet TV, This piece of BAT who did not, do not do the platform to do the content, BAT have to grab the business model a little change is to make money. "Sun Hongbin said on the stage.
On January 19, 2018, the film and television industry, which was suspended for nine months, formally declared a two-year injection of restructuring failure. The termination of the film as the main cause of the injection of music is still dominated by music as the holding 21.81% Equity in the judicial freeze, which is contrary to the commitments promised by the music as the same time, as the music as the music industry is still holding 1.71 billion yuan of music accounts receivable has not been recovered, and the music as the short term solution to the debt can not be formed very well Of the program, eventually leading to the transaction can not advance or can not be approved.
On January 30, 2018, LeTV handed over the results for 2017. According to the earnings report, LeTV forecast a net loss of RMB11.6049534 trillion yuan -116.099534 billion in 2017. In 2016, LeTV net profit was 5.547592 trillion yuan yuan.
'Sometimes people dare to call the sun and the moon renewal, and sometimes also want to lose gamble.' This is Sun Hongbin January 23 in the Shenzhen Stock Exchange investor interactive platform to participate in investor exchange, said. 'Total business Is to make a profit, there is a risk to do anything, if there is no risk there is no return.If the risk control to zero, it can only save the money to the bank.LetTV really did not expect anyone to change, We can only encounter any problem to solve any problem.People actually can not predict the future, can only continue to deal with, adjust.Have the face of difficulties, frankly to the result, is our due attitude to life.
Financial Year 2017 semi-annual report of the data show that in terms of profit, financial investment as part of a loss of about 1.5 billion.
'Informed' Wang Jianlin: 43.8 billion yuan to buy Wanda 13 City of Brigade
In addition to taking over from the hands of Jiayeting as the precarious company, after Sun Hongbin also from Wanda business to 43.844 billion yuan bought Wanda 13 travel assets.
On July 10, 2017, Wanda Commercial and Sunac China both announced that 13 of their brigade travel items were priced at their registered capital. Together with 76 hotels, the package was sold to Sunac at a cost of 63.2 billion yuan.
At the same time, the two parties also agreed on the 'four immutable' terms - the brand remains unchanged and the project still holds the brand of 'Wanda Cultural Tourism City'. The plan remains unchanged and the project is still being developed in accordance with the government's approved plan and content Construction; the project construction remains unchanged; the design, construction and quality of the property held by the project are still under the control of Wanda; the operation and management remain unchanged; the operation and management of the project is still handled by Wanda Company.
Such a contract, so that Wanda has a brand business investment, asset management operations can tell the story, but those Wanda reached a local government that year, there will be no obvious rebound.
However, Sun Hongbin does not want this type of heavy assets of the hotel.
Nine days later, on July 19th, Wanda Commercial and Sunac China held a joint press conference in Beijing, while Guangdong developer R & F Properties (2777.HK) temporarily joined the deal.
According to the agreement, Rongchuang acquired 91% of the equity interest in thirteen travel projects with a total value of RMB 43.844 billion and the entire loan from the post-delivery project amounted to about RMB 45.4 billion while R & F Properties acquired 77 city hotels for RMB 19.906 billion Equity.
At the signing ceremony on the very day, Sun Hongbin said in his speech that Wang Jianlin's cooperation with Shen Jianlin as its partner is a trust to Rongchuang. The successful and beautiful transformation of Wanda Group is a model for Rongchuang and Chinese enterprises to learn. It is recognition of the team and recognition of high-end project operation ability.
Sun Hongbin said, 'Wang Jianlin is my most respected entrepreneur.'
On September 6, 2017, Sun Hongbin, in his circle of friends, forwarded an essay entitled "Please give more kindness to Wang Jianlin," adding that Wang Jianlin is one of my most respected outstanding entrepreneurs.Sun Hongbin said: "Wanda Commercial All platforms directly employ nearly 2 million people, indirectly employ over 10 million people, take up 2% of the country's total annual employment, and pay about 40 billion yuan of tax revenue each year. Wanda is a world-class outstanding enterprise and Wang Jianlin is one of my most respected outstanding entrepreneurs '
In Sunac China's interim results announcement conference in 2017, when talking about Jiayue Ting, Sun Hongbin mentioned Wang Jianlin as a successful entrepreneur compared to Jia Youting, who did not break through the arm, left the country drastic and made no effort to defeat LeTV.
In addition to taking over the 13 Wanda City Wanda project, Sun Hongbin also involved in the acquisition of Wanda Commercial H shares delisted shares of equity investment.
January 19, Dalian Wanda Group official announcement that Tencent Holdings as the main sponsor, the joint Suning cloud (002024.SZ), Sunac China and Beijing East 34 billion yuan stake in Wanda Commercial, the acquisition of Wanda Hong Kong Commercial H-share delisting When introduced about 14% stake in investors, which will be the world's Internet companies and the real business giant one of the largest single strategic investment among them, the financial investment 9.5 billion Rongchuang, shareholding ratio of 3.91%.
'Real estate is the absolute mainstay of financial innovation'
Although Sun Hongbin a large sum of money into music, take over the Wanda asset package, but Sun Hongbin has always stressed that the real estate business is the absolute main Rongrong.
In a previous conference on music, Sun Hongbin once said: 'I have said on many occasions that we do real estate without restructuring, but I also said that we must think about it earlier. The real estate industry was 80,000 in 2015 Billion sales in 2016 is 11.5 trillion in the future I estimate it will remain at 11 trillion, growth is quite hard.I still go back and cover my house, investment LeTV is optimistic about this person and his team Jiayue Ting, financial innovation May participate in the board of directors, participate in the study and discuss with everyone. I think we can bring nothing to LeTV and I have no energy. And he is not big in business.
'What is a good life? Buy a house first, then go home and watch a TV, put on our TV on the movie, to Wanda City play.' From Sun Hongbin's position we can see that he tried to deal with the two transactions and their real estate business Finally combined.
After Sun Hongbin made a large-scale stake in LeTV for half a year, Sunac China announced that Sunac will become the sole partner of LeTV in the real estate industry, including real estate industry (including but not limited to film and television industry, auto industry, sports industry, Internet Ecology and other aspects) in-depth cooperation, at the same time, Sunac, a subsidiary of Sunac, will have a preferential right to invest in the other shares of LeTV.
According to Sunac China disclosed, the company has taken over part of the music as part of the company's real estate projects.
On March 1, 2017, Chongqing Sunac and Chongqing Investment Management (Beijing) Co., Ltd., an indirect wholly-owned subsidiary of Sunac, entered into a cooperation agreement in which Chongqing Sunac acquired the 50% stake in Chongqing Leizhijian Property Development Co., Ltd. Of the shares, the price of 220 million yuan.
Chongqing LeTV Co., Ltd. is principally engaged in the development of Longxing project located in Liangjiang New District of Chongqing Municipality and is mainly developed for residential and commercial use. It covers an area of 254,400 square meters, with a capacity of 399,200 square meters of construction-based construction capacity and 356,100 square meters of salable area.
In addition, Sunac also from the hands of music for 300 million yuan to obtain a long-term operation of the Shanghai Longsheng Square, a 50% stake in Shanghai Longsheng project.The main development of Shanghai Longsheng Square project for office use, covers an area of 15,800 square feet Meters, Ciyung building area of 61,000 square meters.
For Wanda, the combination of the two is more closely.Hun Hongbin said, 'has been optimistic about the consumption upgrade industry, big culture, big health, big entertainment project if we invest behind education and hospital projects, we should not be surprised, under Step and Wang Jianlin large health city project .Wang Jianlin to build a hospital inside 7 hospitals, I believe we will be the largest cultural tourism industry property holders, holding hundreds of billions of assets. "Sun Hongbin said the future Wanda city and there will be new cooperation, 'I and the Pharaoh said at least 20 more, financial and cultural tourism culture and health education, with real estate have a relationship, 10 years later, I hope other businesses accounted for half of the real estate business, Transformation to upgrade.
January 5, 2018, Sunac China announced the results announcement that the company in 2017 full year contractual sales of about 365.26 billion yuan, contract sales area of about 22.298 million square meters, contract sales price of about 16,380 yuan / square meter.
With the substantial increase in sales, in 2017, Sunac's share prices also hit new highs, up 425% year-on-year, only 458% higher than the share price of China Evergrande (03333.HK) .