Hualian Holdings

And Bo in the apparel field in sharp contrast is, its old club Hualian Holdings has been on the road to the transformation of the struggle. 1994-listed Hualian Holdings, formerly known as the domestic textile industry listed companies, through the issuance of two additional funding, after several rounds, to 2010, to achieve a comprehensive real estate developers gorgeous transformation. In the continuous restructuring, Hualian holdings out of a state-owned enterprises and private enterprises complementary advantages of the "state-owned" road, however, after some groping, "State control of private" mode evaporated, Hualian holding eventually revelation, into the seemingly lucrative dividend rolling real estate industry. In the meantime, the transforms not only reflects the change of economic environment, but also vaguely flashes the figure entanglement between the enterprise's helm. "A room on the spirit" of the reorganization of the daughter can really work?　　After the transformation of the Hualian holding road is a long way to repair. Hualian Holdings (000036) formerly known as a Deep Hui, formerly Shenzhen Hui China Chemical Fiber Co., Ltd. October 1985 by Hualian Development Group Co., Ltd., Shenzhen Baoheng (Group) Co., Ltd., Wuxi textile industry company and China Chemical Fiber Corporation Joint investment was established, is the first Shenzhen engaged in chemical fiber professional production and operation of economic entities.　　Listed on Shenzhen Stock Exchange in 1994. The first issue of the reorganization, the marriage Wave Secretary of the listed year, Hualian holding performance, but the next 1995 and 1996 only recorded a meager profit, 1997 more recorded a huge loss, diluted net assets yield reached 21% (table 1).　　In 1998, Hualian Holdings held its first asset reorganization after listing. That June, as a pilot enterprise of "replacing the main business of the assets change" by the listed companies of the textile industry, Hualian holding shares with the controlling shareholder Hualian Development Group ("Hualian Group") to replace the assets of the chemical fiber business with serious losses, in exchange for the Hualian group's Shenzhen Hualian Real Estate Co., Ltd. Shenzhen Hualian Home ", as well as the main textile industry in Shenzhen Textile Dyeing Co., Ltd., the two sides to the respective replacement of the net assets price, the value of 109.2707 million yuan, in order to issue new shares in the way, to the Hualian group targeted placement.　　Among them, Shenzhen Hualian Home is to operate textile and apparel market-oriented, with a textile enterprise engineering construction, real estate development and management, special industry leasing management of integrated enterprise, and later gradually become the Hualian holding main real estate business flagship company. 1998 asset reorganization at the same time, Hualian Holdings in the IPO after the first issue, issued 80 million shares of social public shares, the actual fund-raising of about 390 million yuan. The funds raised are invested in the following projects: acquisition of Jiangsu Kang Bo Group Co., Ltd. ("Jiangsu Kang Bo", renamed in September 2002) 51% Equity, the acquisition of Zhejiang Ninghai Cotton Mill (after renamed as Ninghai Hualian) and Yuyao first cotton Mill (after renamed as Yuyao Hualian) two national cotton Textile enterprise assets, Acquisition of Hangzhou Hong Hua Computer Technology Co., Ltd. ("Acer Computer") 60% equity and investment in its technical changeConstruction projects, Acer computer mainly engaged in apparel design, nesting, tailoring computer automation software development and printing patterns, printing Seihan software development. The first additional investment acquisition of three projects are acquired in net assets value, in addition to Bo, the remaining two items are from the major shareholder Hualian Group, and Bo Secretary for the Hualian Holdings is not unfamiliar. According to media reports, since 1995, Gao Dekang's Jiangsu Kang Bo has been China's down jacket sales of the first business, excellent market results make Gao Dekang as the vice president of the Chinese Apparel Association, and then the President is later as the chairman of Hualian holding Dong Bingen. Dong Bingen in February 1997 as general manager of Hualian Group, April 1997 as the chairman of Hualian Holdings, in 1998 that led to the acquisition of the Bo secretary.　　According to the company's prospectus, Hua Lian Holdings became the largest shareholder, and did not participate in the day-to-day management of the Gao Dekang, but still the leading management of the couple, but Gao Dekang only as president, the position of the Chairman was given to the Dong Bingen. After a massive reorganization and new offerings in 1998, Hualian Holdings became a large holding company with several subsidiaries. Subsidiaries have engaged in the apparel industry Bo Secretary, engaged in the textile industry Ninghai Hualian, Yuyao Hualian, Xinlong linen and textile industry, engaged in High-tech digital jet printing system development of Acer computer, engaged in real estate development, owned property leasing management Shenzhen Hualian home and so on. Among them, Bo Secretary to become its main source of profits, each year for the listed companies contribute more than 60% of the net profit, 2001 year up to 80%.　　From 1998 to 2002, the Hualian holding operation performance with the rapid growth of the Bo Secretary, has been significantly improved, its net assets yield has been maintained above 10%, from 1999 10% to 2002 12%, higher than the average of textile listed companies more than one times (table 2). Two additional, two times in the wave of business success, the company is becoming the main pillar of profit, Hualian Holdings in 2001 proposed a "two pioneering", said in the period of 5 years to complete the adjustment of the industrial structure, and in June again proposed additional programs,　　Plan to use additional funds to invest in annual output of 330,000 tons pet, PBT project resin project, so that the company's industrial structure in the textile and apparel and real estate based on the expansion of new materials industry, the formation of a fresh profit growth point and industry pillar, to avoid the business too concentrated in the textile and apparel industry business risk However, for a variety of reasons, its 2001 issue of the issuance programme has not been approved by the SFC. Until July 2003, the issuance of more than 90 million shares of common stock (A shares), the actual fund-raising 523 million yuan. Additional prospectus originally planned to invest 525 million yuan to set up Ningbo Hualian new material Technology Co., Ltd., used to build 330,000 tons of PET, PBT project resin project. But at the end of August 2003, after the actual payment of funds to the account less than one months, Hualian Holdings announced that the use of fund-raising to adjust the use of 250 millionYuan used to repay some of the bank's borrowings, saying the move would save the company 6.64 million of dollars in financial costs. But then, the amount of money diverted was raised again. April 2004, Hualian Holdings also announced that the company is working on the construction, preparation of two large-scale projects: PTA Project and PET, PBT engineering resin project. Among them, the PTA project funding mainly relies on its own funds and bank loans, has entered the actual construction phase; Pet Project for two additional IPO funds key investment projects, is being prepared, the funds have not been put into bulk.　　Without affecting the normal investment progress of two additional IPO funds, the board of directors decided to use 363.4 million yuan to repay bank loans, claiming that the move would cost the company about 11.37 million yuan in interest savings. Additional funds have been used to repay the bank loans, it is evident that the new PTA project to the Hualian Holdings has brought huge financial pressure, and the additional funds raised by the fund than a huge amount of new project capital demand is still inadequate, at this time, Hualian Holdings chose to sell its holding subsidiary. In June 2004, Hualian Holdings announced a 20% stake in Yuyao Hualian, its holding subsidiary, with a 55% per cent premium on net assets. At the same time, as the company's main source of profits due to a warm winter in 2003, and other factors, the performance of a sharp decline, Hualian holding also budding retreat.　　July 2004, Hualian announced the sale of the net assets value of the 48% stake, the announcement declared that the proceeds will be mainly used to increase the capital of Zhejiang Hualian three Xin Petrochemical Co., Ltd. ("Hualian three Xin"), gradually bigger and stronger PTA industry. October 2004, due to the PTA project funds pressure, has been covering the misappropriation of two of additional funds to raise capital of the Hualian holding formally announced the 2003 issue of the use of additional funds to change. Announced that the pet industry has developed too fast, the market oversupply, and PTA raw material prices and serious supply shortage, PTA more than pet development prospects.　　Therefore, the new funds will be mainly used to invest in Hualian three Xin construction of the annual output of 450,000 tons PTA project. At this point, Bo and Yuyao Hualian and other projects have been sold, Hualian Holdings after the IPO of the first major investment projects completed its historical role, withdrew the history stage of Hualian holding. At the same time, two additional investment in PTA Project, officially become the pillar of Hualian Holdings, but also marked the transformation of Hualian Holdings, from the original clothing textile, real estate into petrochemical raw materials, real estate industry. and the market for Hualian holding the transition to make a fierce reaction, in the first half of 2004, with the introduction of the 2003 Annual report and the sale of such items as Bo, Hualian holding stock price greatly diarrhea, and with the PTA project surfaced, Hualian holding back to be placed in a greater expectation and imagination space, stock price hit bottom rebound, stronger than the same period market performance (Figure 1).　　So, PTA Project can replace the Bo Secretary to prop up Hualian holding a day? Break the PTA project, two secondary issuance dismal end of the factDevelopment has proved that since 2004, the transformation of private enterprises in the Bo Secretary of the smooth, soaring, the successful landing of the Hong Kong exchange. In the same period, its former major shareholder Hualian Holdings in the PTA project, but has been in the margin of loss or profit struggle (Figure 2). Since 2004, Hualian Holdings withdrew from the apparel industry, was placed high expectations of the Hualian three Xin PTA project in 2007, 2008, two consecutive years of huge losses, April 2009, Hualian Holdings St China control, exit alarm sounded. Later, kidnap state capital shot, the embattled Hualian holding to flee smoothly. By the end of 2008, through the reorganization of capital increase, Hualian holding holdings three Xin's equity ratio from the initial 51%, gradually reduced to 35%, 26.436%, until 16.4%, to use the Cost method accounting, exit its day-to-day management.　　So far, Hualian Holdings two of additional investment in petrochemical raw materials Project dismal curtain call. Compared with the two times since the listing of Hualian Holdings, it has been found that since 1994, after the IPO, through the issuance has been in restructuring, as of now, has not yet been able to reproduce its first investment projects brilliant. In 1998, the first issue raised 390 million yuan, of which 117.15 million yuan to buy a 51% stake in the company, Hualian Holdings brought a huge return: from 1998 to 2003, Hualian Holdings has reached 970 million yuan, of which Bo is the main source of profits. However, since 2003, two additional raises 523 million yuan to launch the PTA Project 6 years (2004 to 2009), Hualian holding total loss amounted to 550 million yuan. Before and after two secondary offerings, two 6 years of performance performance is a sky, a subterranean.　　Looking back, the net asset value of the sale of Bo secretary of the "cash cow", have to say is Hualian holding a great regret. According to the latest annual report, Dong Bingen still serves as an independent director of the company, Bo. In the media interview, Gao Dekang said: "Dong Bingen is my teacher, where I learned the management of enterprise methods and strategic development of ideas." "What's so extraordinary about Dong Bingen?" The study found that Dong Bingen since 1997 the helm of Hualian Holdings, in the ongoing restructuring and restructuring, out of a state-owned enterprises and private enterprises complementary advantages of the "state-controlled civilian" road. In the management of the Bo and Acer computers, Hualian Holding has embodied the mode of holding by state-owned enterprises and private management by local private entrepreneurs. Good shade under the tree, the state-owned background of Hualian Holding is the private enterprises in the project approval, market development and other aspects of access to the key, at the same time in the construction, personnel, management and other levels to fully use the flexible operating mechanism of private enterprises, so that investment projects can rapidly grow and develop, Bo Secretary is the Hualian holding "State control private" Patterns hatch out of a "giant". However, this model of Hualian holding investment project selection ability to put forward a very high demand, the first additional wave secretary of the project and two additional PTA projects, are with private enterprises, but various reasons, leading to HualianHolding "lost the watermelon Foolish".　　and "Apprentice" in "Gao Dekang" after 6 years, achievements, a higher level, become the industry giant, all this benefit from the Bo Secretary in the Hualian holding "State control private" 6 years completed the most critical growth stage. It is worth mentioning that 2005, Hangzhou Jinjiang Group through the acquisition, holding Hualian group shareholding reached 20.89%, more than Oct group, become the first major shareholder of Hualian Group, so far, Hualian group quietly become a private enterprise, accordingly, Hualian holding of the "Red Hat" also disappeared (Figure 3),　　Therefore, Bo has become the first and last one of Hualian holding "state-controlled private" model to cultivate the giant.　　Three times to start a business, change the real estate developers, the "last" transformation? After nearly 6 years in the petrochemical raw materials industry, by the 2009 "Shenzhen Urban Renewal Method" of the introduction, Hualian Holdings also proposed "three entrepreneurship." "Shenzhen Urban Renewal Method" to the old urban area of Shenzhen transformation, to make a clear specification for the change of the industrial land, and to break through the requirements of the complex procedures such as bidding and hanging, the property rights units in accordance with the premise of the Shenzhen city planning, can be independently reformed and upgraded after approval. The "method" of the introduction of the PTA dilemma in the struggle of Hualian holding provides a chance to change again. According to the 2009 Annual report, the total industrial land under the name of Hualian is more than 200,000 sq m, has reported to the competent authorities of the 27 districts of Baoan district "former Hui Zhong Plant", Nanshan "Hualian Industrial Park Zone B" and Huada new home and other three projects of the 2010 Demolition and redevelopment project, three land total area of about 140,000 square meters, After the change, the company is expected to bring a substantial profit return for Hualian Holdings.　　At present, Hualian Holding has a total area of 170,000 square meters of operating property in Shenzhen and Shanghai, and the total land reserve in Shenzhen, Hangzhou and other places is about 600,000 square meters. And this transformation, and the previous two through the transfer of additional acquisitions, the transformation of the main companies are affiliated to Hualian Holdings, on the basis of the original business, by activating the stock resources, to the comprehensive real estate business transformation. At present, Hualian holding subordinates in real estate development enterprises, including Shenzhen Hualian Home and Hangzhou Hualian Property Limited ("Hangzhou Hualian Home"). Among them, the Shenzhen Hualian property for Hualian Holdings in 1998 assets reorganization, from the large shareholder Hualian Group bought 100% stake, and then Hualian Group in April 2001 shares Shenzhen Hualian Home, of which, Hualian holding holding 68.7%, Hualian Group Holding 23.67%, Dongguan Huilong Plastic Co., Ltd. holds 7.63%; Hangzhou Hualian Property was established in November 2004 as a Sino-foreign joint venture, data show that, as of May 2010, Hualian Holding held its 71.98% stake, and other equity holdings are foreign owned, of which Shengyi Co., Ltd. (HARVEST FANCY LTD, "Shengyi") holds its 21.41% stake, and Shengyi is the same as Bo2009 The sale of Men's business.　　This transformation, the direct battle, wonderful worth looking forward to. At this point, by the city renewal, the opportunity to change the business, "Transformation King" Hualian holding again completed the industrial restructuring work, the main business into a comprehensive real estate development and operation, including residential real estate development, commercial real estate development and leasing management, including industrial real estate leasing management business. and "a room on the spirit" of the reorganization of the daughter side is true reputation. April 2010, St China-controlled disclosure of the annual report shows that 2009 total operating income of 1.92 billion yuan, up 1394.77% year-on-year, to achieve the ownership of the listed company's shareholders net profit of 281 million yuan, up 169.93%; Basic earnings per share is 0.2505 yuan. After the successful turnover, June 4, 2010 official tipped, the securities referred to as "Hualian holding." This has faced macro-control high-pressure real estate industry to add a member of the Forces nouvelles, the future of Hualian holding in the master-lined, fierce competition in the real estate industry to gain a foothold? Is the transformation the "transition King" Hualian holding "final" transformation? and wait and see.