Is Lining Turning To Real Estate?

The stock price performance after resumption is not the result that Lining himself wishes to see.

Although analysts have many interpretations of Lining's granting of shares to the extraordinary China, pessimistic reading is the most common form of market voting.

In October 17th, Lining resumed his trading and opened up to HK $0.05, up to HK $4.91 / share.

Since then, the stock price fell to HK $4.65 / share, or more than 3.73%, as of noon.

The resumption of cards suffered from market abandonment, which seems to be related to Lining's holdings of shares.

Lining denied pformation to real estate

And Lining's resumption notice also released the Li Ning Co's equity change notice.

The announcement shows that the shares of 266 million 374 thousand Li Ning Co held by Victory Mind and Dragon City are outstanding to China, accounting for 25.23% of the total issued share capital of the company, with a total price of HK $1 billion 400 million. After the completion of the paction, Victory Mind and Dragon City no longer hold Li Ning Co shares.

In 2012, the Li Ning Co interim report showed that the Victory Mind and Dragon City owned by Li Ning Co were actually owned by Lining himself and his family members.

At the same time, Lining is also the chairman and executive director of the pferee's extraordinary China.

Public information shows that the origins of Li Ning Co and the extraordinary China can be traced back to 2010.

In April 2010, the Lining brothers obtained a 80% stake in quick energy saving with a price of about 700 million yuan through the way of ultra low price subscription of energy saving (after renamed the extraordinary China) preferred stock and convertible bonds, and pleased energy saving to become another operation platform for Lining in the capital market.

In August of the same year, Lining announced that it had injected about 31% of its Li Ning Co shares into China, while acquiring Shenyang Industrial Park and eco city project. It plans to enter the real estate industry and integrate sports and real estate.

It is reported that at that time, the performance of Li Ning Co was gradually declining, and Lining's personal investment behavior was criticized by the market as being out of business.

Subsequently, the HKEx ruled that the acquisition of Lining by the extraordinary China was "anti takeover". At that time, although the company indicated that it wanted to appeal, the acquisition ended in the end.

According to today's announcement by Li Ning Co and extraordinary China, the main purpose of the two sides' cooperation is to expand the sports industry chain.

The concept includes the development of sports theme communities, and the government's research and development of sports and surrounding property facilities, and Lining himself is very optimistic about the concept of "sports comprehensive community".

Some analysts believe that this means that Lining will further enter the real estate industry through this cooperation.

In October 17th, Li Ning Co commissioned a public relations firm to tell reporters that Lining focused on sports, and that the paction did not affect this strategy.

But the public relations company does not deny that Lining will be involved in the real estate industry.

However, Guo Xinlin, a well-known US stock commentator, told reporters that the market has not accepted the concept of Lining's "sports comprehensive community", and the performance of both Lining and extraordinary China in the market is obvious.

Lining's reduction in disguise?

Guo Xinlin believes that although the sports industry is hard to see new developments at present, the timing of Lining's choice is not very good.

The poor timing may be the main reason for Lining's capital operation.

Some analysts said that Lining is preparing for the future exit from Li Ning Co, reducing the extraordinary China, which is less direct than the direct reduction of Li Ning Co shares.

However, Guo Xinlin believes that such an analysis is far fetched, and it is hard for the market to imagine Lining leaving the company, which is also a loss to Lining himself.

He analyzed that Lining injected equity into the extraordinary China, possibly to enhance the value of the extraordinary China and boost its stock price, which is also helpful to the financing of the extraordinary China in the future.

Haitong Securities (Hongkong), vice president of China business department.

Analysts pointed out that the paction did allow market doubts, Lining himself intends to reduce Li Ning Co's stake in the future.

He pointed out that if Lining wants to enter the development of real estate business, it is really not necessary to hold too many Li Ning Co shares, so Lining's actions are not too sensational for the market.

However, after the fact that China has been injected with real assets, the future arrangement is still unclear and needs time to be verified.

Public information shows that 2012 Lining introduced TPG, a private equity investor, as a strategic investor.

Guo Xinlin analysis, Lining's disguised reduction, the shareholding ratio of the two major shareholders has been cut down, and TPG has increased the impact on the company.

He analyzed that TPG had a good case, which is not a bad thing for Lining to be acquired in the future.