Evergrande RV Investment Of HK $16.35 Billion: Whose Capital Feast?

China Evergrande can be called "invincible" in the capital market.

After China Evergrande, Evergrande property and Evergrande automobile, another listing platform of Evergrande is about to emerge. In Evergrande's vision, fangchebao, which mainly deals in the online and offline Omni channel comprehensive trading service platform for real estate and automobile, will land on NASDAQ soon, and its valuation before issuing and financing will not be less than 150 billion yuan.

In the morning of March 29, 2021, fangchebao announced that strategic investors would become shareholders. In this round of financing, fangchebao raised a total of HK $16.35 billion and introduced 17 strategic investors. Most of them came from the circle of friends of Xu Jiayin, chairman of the board of directors of Evergrande, or business partners who had close business ties with Evergrande.

If you look at RV from the perspective of investors, it can be seen as the "developer version" of shell. According to the shell business model, RV treasure should also be able to harvest the favor of many star capital just like shell did in those years. As a matter of fact, RV Bao is no different from other Evergrande companies in the way of introducing war investment. It has not completely gone out of Xu Jiayin's "business circle".

"Circle of friends" business

"I marvel at Evergrande's financial technology." On March 29, after Evergrande RV Bao was introduced into the war, an analyst who has been observing Evergrande for a long time told the reporter of the 21st century economic report.

Similar to the way in which Evergrande property and Evergrande automobile introduced war investment, there are many "old faces" of strategic investors involved in this round of financing, including Zheng Jiachun, Xu Jiayin's "iron friend", Xia Haijun, vice chairman and chief executive officer of Hengda, as well as enterprises with close ties with Evergrande.

A total of 17 investors were introduced into the project, of which the largest investment was made by Zhao Linghuan's united strength harmony limited, with a total investment of HK $2 billion. Zhao Linghuan is the chairman of Hony investment.

Xu Jiayin's "circle of friends" also continued to "value" RV treasure this time, among which top assembly holdings, which was ultimately controlled by the Zheng Jiachun family of Chow Tai Fook Ye Delin, the controller of Foshan xinmingzhu Group Co., Ltd., which invested HK $1.8 billion, is also the chairman of the board of xinmingzhu ceramics. In 2018, he attended the "2018 high level summit of strategic partners" of Evergrande group with Zhang Jindong of Suning. Guangdong Weimei Mingzhu Investment Co., Ltd., which he participated in, also appeared in the second round of Evergrande real estate investment In the list of.

Advance Power International Limited, a subsidiary of Xia Haijun, invested HK $500 million this time. This is not the first time that Xia Haijun has participated in the battle investment of Evergrande company. In the investment of HK $23.5 billion introduced by Evergrande property, Xia Haijun also subscribed for HK $550 million.

In addition to the introduction of the "circle of friends", the 21st century economic report reporters have found that among other digital strategic investors, some of them had business intersection with Evergrande.

For example, Mingsheng Turin, which has invested HK $1.8 billion, was one of the purchasers of Evergrande dairy assets. Wang Weimin, who has 90% of the shares, has also served as the chairman of Evergrande Dairy Co., Ltd.

According to the data of qixinbao, the current controlling shareholder of Evergrande Dairy Co., Ltd. is Shenzhen Mingcui Haotian Investment Co., Ltd., a subsidiary of Cuilin investment.

The 21st century economic report previously reported that in 2016, China Evergrande transferred its mineral water business, dairy business and grain and oil business to three-dimensional Turin and Lipu (Hong Kong) Limited, Mingsheng Turin and sunlight property management respectively Limited and Shenzhen lailailailai Industrial Co., Ltd., the above three companies have intersection with Cuilin investment. At that time, the largest shareholder of Cuilin investment was Evergrande. However, Cuilin investment is no longer related to Evergrande's equity.

Evergrande has not treated the strategic investors who have joined the RV treasure this time. It is a business of "steady profit and no loss".

It is pointed out in the announcement that if the target company fails to complete the qualified listing within 12 months after the delivery date (or a later period agreed by all parties), each investor has the right to require relevant obligors to repurchase the shares of the target company held by the investor jointly and individually with the original consideration paid by the investor plus a 15% premium.

Trillion "RV treasure"

Evergrande is the company's way of introducing strategic investors. All the confidence votes are from Xu Jiayin's circle of friends or business partners. As a "technology enterprise", RV treasure has the possibility of breaking through this inherent cognition.

In the announcement of China Evergrande, RV treasure is described as a service platform for online and offline comprehensive transaction of real estate and automobile, taking "digital technology and RV integration" as the vision, innovating and applying big data, artificial intelligence, cloud computing, virtual reality and other digital technologies, realizing resource information sharing and precise matching between buyers and sellers, and building a service platform for online and offline Omni channel comprehensive transaction of real estate and automobile.

Fangchebao is expected to be listed on NASDAQ or other appropriate stock exchanges in the United States, and its valuation should be no less than 150 billion yuan (or its equivalent currency) before financing. According to the previous data of Fangche Bao, it aims to achieve a valuation of 2 trillion yuan in 2021, 4 trillion yuan in 2022 and 6 trillion yuan in 2023.

This is an ambitious manifesto. If it can be realized, it is inevitable that RV treasure will be warmly welcomed by capital.

According to the data released by Evergrande, Fangche Bao has more than 21 million brokers, about 400000 professional brokers, and more than 40000 offline stores. It is estimated that the transaction scale will exceed 2 trillion yuan this year.

RV Bao seems to be working towards the direction of the shell, if calculated according to such data, it really becomes a force that can not be ignored in the shell alliance.

However, the business model of RV still has its limitations.

In the business logic of shell, it can provide certain traffic support for the franchisee. "If you have a strong ability, you can still sell the houses in the hands of chain brokers in the same city. For the store owners, there will be more goods in their hands, and more new houses and second-hand houses. Take apart fangchebao. For the store owner, I joined the car shop. Apart from the cash reward, there was no income, no online flow support, and there was no more goods in my hand. ". An intermediary store in Central China pointed out to reporters.

Open the app of fangchebao, among the first-hand real estate, Evergrande's real estate still occupies the majority, while the transaction of automobiles and second-hand houses has not seen any further trend for the time being.

This seems to be where RV needs to prove and explain to its potential investors. It must be a platform with the function of facilitating transactions before it can be sought after in the capital market. It is 12 months away from the launch time point set by RV Bao. In this year, can RV Bao attract more strategic investors who are optimistic about it?

?