Tai Hua Land was the only real estate company under Taihua Holdings. It was formed from the merger of Tai Hua Supermarket Group's property management company, Bing City Pharmaceutical Group's property company, Bing City Machinery Manufacturing Group's property company, etc. Now, it was a subsidiary of Taihua Holdings.
In the past, many state-owned enterprises in China have real estate development companies under them. These companies will relocate their old factories and sell them for money. At that time, many state-owned enterprises are not doing well in their main businesses, and they need to find ways to make money to help their workers survive.
In the end, Feng Yu felt that these companies were fighting on their own and did not have a large scale. Their growth was slow. Tai Hua Supermarket Corporation was expanding and needed a real estate company. So, Feng Yu merged the companies and formed a big real estate company.
After that, Tai Hua Supermarket Group expanded to a certain scale and had taken over the first and second tier cities. Third-tier cities and below were not suitable for Tai Hua Hypermarkets, but it was not a problem to set up Tai Hua Supermarkets. That's why Tai Hua Supermarket Group was separated into Tai Hua Land.
This way, Tai Hua Supermarket Group had more funds, and Taihua Holdings could use Tai Hua Land to build new factories, office buildings, etc.
But to be honest, Feng Yu did not focus on real estate. In this life, Hua Xia did not focus on real estate. Instead, it focused on infrastructure, transportation, etc. Real estate was only a subsidiary project.
That's why Hua Xia's property prices did not increase as fast as Feng Yu's previous life, and there were no bubbles. But as Hua Xia's economy was getting better, people's demand for housing was still increasing. The city's shanty towns were also being renovated, and the property prices in the better areas were still increasing.
This gave Wanda more room to grow, and Wang Jianlin became the leader of Hua Xia's private real estate industry. He was doing better than many central enterprises.
Now, Tai Hua Land's development was average. It was ranked tenth in China, and many people were satisfied. But to Feng Yu, Tai Hua Land's development was not good. It was mainly because the managers in this area were not good, and they were timid.
Other real estate companies were doing well, and their sales were increasing. But Tai Hua Land's development was getting slower, and most of their profits were from the office buildings and shopping malls. Tai Hua Land did not build residential properties, and they had lost a large market share.
But Tai Hua Land had lots of professionals and managers, and they had sufficient machinery and equipment. They were not in debt, and their assets were still good.
What Wanda Holdings lacked was this area. That's why they had cooperated with Tai Hua Land many times.
Wang Jianlin knew that Tai Hua Land was not one of Taihua Holdings's main businesses. Maybe Taihua Holdings does not care about Tai Hua Land. This was the right time for Tai Hua Land. Tai Hua Land.
If Wanda Group can acquire Tai Hua Land and develop the land reserves, Wanda Group might become the world's number one developer of urban complexes. Their property assets will also be the world's number one!
If Hua Land was Tai land, Da would be the world. Tai, Hua Land, Tai Hua Land would be the world 'biggest. This Hua Land will would be the World.
World. World Hua Land. Wan Land. Tai. is. Tai Tai was Wan Land was, Hua Land. Hua. Wan Land., and was. Wang... Tai Tai Wan Land..
Every year, the interest on their debts would increase, and they were under a lot of pressure. Getting listed will lower the debt and risk of the company. It will also increase the company's profits.
The higher the quality of the company's assets, the higher the share prices will be. Issuing the same number of shares will raise more funds.
Anyway, Taihua Consulting still owns shares in Wan Da Group. Taihua Consulting is also a subsidiary of Taihua Holdings. It is also one of Feng Yu's assets.
Feng Yu will not suffer any losses. Wang Jianlin felt that his suggestion was not out of line.
Wang Jianlin had wanted to speak to Liu Chuanzhi. But since he met Feng Yu today, it was better to speak to Feng Yu. After all, Feng Yu was the real decision-maker of Taihua Holdings.
Wang Jianlin saw Feng Yu was deep in thought and got excited. Feng Yu did not object. That means there is a chance!
Feng Yu asked Wu Chih-gang. "Zhigang, how many assets does Tai Hua Land have?"
"Including our land reserves and the office buildings under our name, it is worth about 49 billion RMB last year. Now, it should be worth 50 billion."
The Wind and Rain Building, Tai Hua Building, etc. are also under Tai Hua Land. Feng Yu does not want to sell them. What's the use of selling the Wind and Rain Building to Wan Da Group?
"Split off the office buildings and other properties and set up a property management company. Calculate the value of the remaining assets and sell them to Wan Da Group. Chairman Wang, even if we split off those properties, the remaining land, machinery, staff, brands, etc. should be worth more than 30 billion RMB. Even if I sell them for 40 billion RMB, people will still want to buy them. How much are you going to pay? Do you all have enough funds? "
Wan Da Group might have a lot of assets, but their debt is too high. They cannot afford 40 billion RMB. Feng Yu wants to use these assets to exchange for Wan Da Group's shares.
Wang Jianlin heard Feng Yu's question and immediately replied. "Wan Da Group is planning to get listed. With our current brand, it should be easy to raise 20 billion USD."
"Oh? You are planning to get your company listed? New York? The market there is not doing well. "
Wan Da Group's financial statements are not profitable, and it will be impossible for them to get listed in China. It will also be difficult for them to get listed in Hong Kong. They can only get listed on Nasdaq.
Many Hua Xia companies choose to get listed on Nasdaq is because the entry barriers there are lower. Of course, the number of companies that went bankrupt and were delisted from Nasdaq had always been the highest.
But the US financial crisis had not passed yet, and the US stock market is still at its lowest point. It is not a good idea to get listed there now.
If the market is not doing well, there will be fewer investors. It will be hard to set a high price for the shares to be listed now, and the funds raised will be lesser. It will be a loss to get listed now.
Of course, if some companies are desperate to get listed, they will also choose to get listed now. But Feng Yu felt Wan Da Group has not reached this stage yet.
"Chairman Feng, you want to use these assets to invest in Wan Da Group?"
Wang Jianlin frowned. Wan Da Group had gone through a round of private financing, and Taihua Consulting is one of Wan Da Group's shareholders. If Tai Hua Holdings invests in Wan Da Group, then he might not have the absolute controlling stake in Wan Da Group.
Wang Jianlin had to consider the pros and cons.
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