news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

china aoyuan (03883.hk) is a long-established guangdong-based real estate developer. it was founded in guangzhou in 1996 and listed on the hong kong stock exchange in 2007.

in 2019, china aoyuan's sales exceeded 100 billion yuan for the first time, reaching 118 billion yuan, ranking among the top 30 sales companies in the country. in 2020, its sales further increased to 133 billion yuan, ranking firmly in the top 30 of the industry.

however, in january 2022, facing the repayment of the upcoming due us dollar bonds, china aoyuan revealed that it was "unable to repay" and revealed its intention to introduce strategic investors to alleviate the current debt crisis.

now, an investment institution has extended a helping hand.

introducing strategic investors

guo ziwen no longer serves as chairman of the board

on september 20, china aoyuan officially announced that the company learned from its major shareholder ace rise profits limited (hereinafter referred to as "ace rise") that on september 20, 2024 (after the trading hours), ace rise and multi gold group limited (hereinafter referred to as "multi gold") entered into an agreement, pursuant to which ace rise agreed to transfer approximately 622 million common shares of the company to multi gold.

ace rise and multi gold will own interests in approximately 502 million and approximately 622 million shares of the company, respectively, representing approximately 13.31% and 16.48% of the company's total issued share capital as of the date of this announcement.

therefore, guo ziwen will then hold approximately 618 million shares of the company, accounting for approximately 16.38% of the company's total issued share capital as of the date of the announcement.upon completion of the transfer, multi gold will become the company's single largest shareholder, and guo ziwen will no longer serve as the company's controlling shareholder.the board believes that multi gold is likely to establish an important strategic partnership with the company for existing or future business, and multi gold has been confirmed as a strategic investor.

after introducing multi gold as a strategic investor, starting from september 20, 2024,the 60-year-old founder of the group, guo ziwen, was transferred from executive director of china aoyuan to non-executive director and no longer served as chairman of the board., nomination committee and other positions. the relevant term is one year and is automatically renewed, with a remuneration of approximately hk$400,000 per year. alobeidli, the sole director and ultimate beneficial owner of multi gold, was appointed as a non-executive director and chairman of the board of directors of china aoyuan.

screenshot of china aoyuan's official website

according to the announcement, alobeidli is 45 years old and has a rich learning experience. he received a bachelor's degree in management information systems from the united arab emirates university in 2001, a master's degree in project management and a master's degree in computer science from george washington university in 2008 and 2010 respectively, a master's degree in international business law from the university of paris ii in 2020, and a master's degree in data management and artificial intelligence from escp europe in 2022. at the same time, he also completed the "influential leaders program" of the mohammed bin rashid center for leadership development (mbrcld) in 2020.

currently, alobeidli is continuing his studies at georgetown university.

at the same time, alobeidli has more than 20 years of experience in various fields, including technology, real estate and strategic consulting. according to aoyuan, since 2023, alobeidli has served as the general manager of magnuvest investment, which has been involved in many real estate projects in the uae; he has also served as the ceo of several companies before. the announcement stated that looking forward to the future, alobeidli is expected to introduce potential investors to the company and bring more development opportunities to the company.

profits in the first half of the year may exceed 21 billion yuan

if restructuring gains are excluded, the loss is still

on the evening of august 14 this year, china aoyuan released an announcement showing that the company expects to achieve a net profit of approximately 21 billion to 23 billion yuan in the first half of the year, turning a profit compared to a net loss of 2.9 billion yuan in the same period last year.

china aoyuan said that the net profit in the first half of 2024 was mainly due to the restructuring gains realized by the company after completing the overseas debt restructuring. excluding the impact of the aforementioned restructuring gains, china aoyuan expects to still suffer losses in the first half of the year, mainly due to the impact of the continued downward trend in the industry's operating environment, the reduction in delivery volume during the reporting period, the reduction in sales property revenue recognition, and the increase in financing costs due to the reduction in capitalized interest on properties under construction.

two years after announcing its inability to repay maturing u.s. dollar bonds and interest in january 2022, china aoyuan's overseas debt restructuring plan was approved by the relevant court in mid-january this year. subsequently, china aoyuan announced that the overseas debt restructuring plan would take effect on march 20, and the restructuring income became the main reason for china aoyuan's substantial turnaround this time.

on june 28 this year, guo ziwen stated that after the completion of the restructuring, the company's overall net assets will increase by approximately rmb 31.35 billion, and its interest-bearing liabilities in june 2024 will decrease by approximately rmb 28.4 billion compared with december 2023 (the above amounts are subject to the audit results), and the balance sheet condition will be greatly improved.

in recent years, it is not uncommon for real estate companies to gain "breathing space" by significantly thickening their balance sheets through debt restructuring. in november 2023, sunac completed its overseas debt restructuring; in the 2023 fiscal year, sunac's losses were significantly reduced, from 27.669 billion yuan in 2022 to 7.97 billion yuan at the end of 2023. it was disclosed that in 2023, sunac recognized other income and gains of approximately 38.53 billion yuan, including approximately 31.51 billion yuan in overseas debt restructuring gains.

however, after successfully completing its overseas debt restructuring, china aoyuan still has to face a continuously declining market. according to cric data, in the first seven months of this year, china aoyuan achieved a total sales of approximately rmb 5.8 billion; in the same period of 2023, the company's sales were approximately rmb 8.3 billion. in terms of guaranteed delivery, china aoyuan delivered a total of approximately 8,787 units in the first half of the year.