Haiyin shares are facing delisting, and the once "most successful sub-landlord in Guangzhou" has left the market sadly
2024-08-10
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Recently, Haiyin Holdings, controlled by the three wealthy Shaw brothers in Guangzhou, finally faced the dilemma of delisting. Reporters noticed that the incident has fermented rapidly in recent days, not only attracting attention from the industry, but also being hotly discussed by Guangzhou citizens. What is the reason behind the sad departure of this "most successful sub-landlord in Guangzhou"? As of press time, Haiyin Holdings has not responded to this incident.
Event replay: Haiyin shares announced the Shenzhen Stock Exchange's "Preliminary Notice"
On the evening of August 6, Haiyin Holdings issued an announcement stating that it had received a "Preliminary Notice" from the Shenzhen Stock Exchange. Because the closing price of the company's stock was lower than 1 yuan for 20 consecutive trading days from June 25 to August 5, the Shenzhen Stock Exchange intends to decide to terminate the company's stock listing.
Announcement screenshot
Last night (August 9), Haiyin Holdings issued an announcement stating that the company had submitted a hearing application to the Shenzhen Stock Exchange within the application period for the hearing. If the company participates in the hearing but the Shenzhen Stock Exchange ultimately makes a decision to delist the company, the company's shares will be delisted. Investors are advised to pay attention to investment risks.
Announcement screenshot
Data shows that by the end of March 2024, the total number of shareholders of Haiyin Holdings reached 75,200. The history of Haiyin Holdings can be traced back to 1991, when it started with a single leasing operation business. In 1998, it was listed on the Shenzhen Stock Exchange as a whole, marking its official entry into the capital market.
Speculation on the cause: The "Haiyin model" that was once created is gradually becoming ineffective
As Guangzhou citizens are familiar with, Haiyin Electric Appliance Center is the first professional electric appliance market in Guangzhou and even in China. Shao Jianming, the manager of Haiyin Electric Appliance Center at that time, discovered the prospects of China's home appliance market with his keen business sense. By "only renting land, not buying land", he developed the company into "the strongest sub-landlord in Guangzhou" and successfully entered the A-share market through backdoor listing.
Since then, by repackaging existing shops and renting them out to earn the rental difference, Haiyin Group has grown step by step. It has developed dozens of professional markets and theme malls such as Fashion Front, Dongchuan Famous Shops Sports City, China Plaza, and Haiyin Colorful Plaza. The development model of Haiyin Group has also been summarized as the "Haiyin Model."
2003 was a turning point in the development of Haiyin Group. That year, by acquiring 26.33% of the shares of Maoming Yongye, an A-share listed company, Haiyin Group became its largest shareholder and successfully achieved a backdoor listing. Subsequently, the company was renamed Haiyin Shares. In 2008, Haiyin Shares acquired 11 companies from Haiyin Group, and the following year acquired President Cyberport and Haiyin Real Estate from Haiyin Group. As a result, Haiyin Group achieved an overall listing.
The operating performance data shows that in 2003, the company achieved operating income of 211 million yuan and net profit of 6.1572 million yuan. By 2009, the operating income and net profit reached 851 million yuan and 144 million yuan respectively. From 2010 to 2012, the company's operating performance continued to grow. By 2012, the operating income and net profit were 2.136 billion yuan and 428 million yuan respectively.
Since 2014, Haiyin Holdings has begun to attempt cross-border transformation, and the company's main business has changed to finance, cultural entertainment and commercial property operations.
The financial report shows that from 2014 to 2023, Haiyin shares achieved operating income of 1.919 billion yuan, 1.652 billion yuan, 1.994 billion yuan, 2.561 billion yuan, 2.507 billion yuan, 2.436 billion yuan, 1.302 billion yuan, 1.220 billion yuan, 1.160 billion yuan and 932 million yuan respectively. The company has been on a downward trend since 2017. From 2017 to 2023, Haiyin shares achieved net profits attributable to shareholders of 230 million yuan, 138 million yuan, 139 million yuan, 32 million yuan, -623 million yuan, -383 million yuan and -156 million yuan respectively.
Although Haiyin shares also tried to reverse the decline in performance, the 2024 semi-annual report forecast shows that the full-year net profit attributable to shareholders is expected to be 90.0651 million yuan to 135 million yuan, a year-on-year increase of 201.13% to 251.59%; the non-net profit attributable to shareholders is expected to be a loss of 38.6240 million yuan to 57.9360 million yuan, and the scale of losses has narrowed, but delisting is a foregone conclusion.
Collective memory: The once-glorious fashion destination is fading
It is worth mentioning that this incident evoked collective memories of Guangzhou people’s once glorious urban living circle.
When it comes to the "Haiyin Model", Guangzhou citizens may not respond, but when it comes to dozens of professional markets and theme malls such as Fashion Front, Dongchuan Famous Stores Sports City, China Plaza, and Haiyin Colorful Plaza, Guangzhou people are familiar with them. The reporter learned that these places not only piece together the consumption map of Guangzhou city life, but also accumulate the common memories of Guangzhou citizens of different ages and groups.
"When I was in school, I often visited Fashion Front and Diwang Plaza. At that time, it was a gathering place for handsome men and fashionable women, and celebrities would visit from time to time!" Xiaoting, a citizen born in the 1980s and an "old Guangzhou native", told reporters that her youthful memories are basically concentrated in the Zhonghua Plaza area, from small street shops to subway business districts to trendy stores in shopping malls. In recent years, she has watched the business districts and commercial buildings gradually wither, and she always feels reluctant and lost.
"Times are advancing, and exchanging old for new is not bad!" Mr. Li is a "post-85s" living in Haizhu District. He is also a senior tenant of Haiyin Colorful Plaza and runs a clothing-related business. Mr. Li told reporters that past experience will not be wasted, and the past can become a good foundation for future changes. Urban development is a major trend, so just embrace change. Mr. Li revealed that he is preparing to change his track to specialize in cross-border e-commerce, and his own brand will transform from domestic sales to overseas sales.
The former "Fashion Front" has now become the "Future City"
Text/Guangzhou Daily New Flower City reporter: Tan Weiting, Xu Xiaofang
Photo/provided by the interviewee
Guangzhou Daily New Flower City Editor: Li Guangman
