Early morning on July 10th，The circle of friends has been blocked。Learned that Sunac is 631.RMB 700 million took over 13 188bet sports betting app download projects and 76 hotel projects from Wanda Group，Combined with Wanda’s transfer of all its travel agencies to Tongcheng last year，Wanda Group has basically sold out all of its tourism sector。

The full text of the announcement is shown in the picture:

According to Wang Jianlin, Chairman of 188bet sports betting app download Group，After the completion of the transaction between Sunac and 188bet sports betting app download，188bet sports betting app download Business plans to pay off most of its bank loans within this year，188bet sports betting app download’s commercial debt ratio will drop significantly。After the announcement，188bet sports betting app download Hotel Development listed in Hong Kong (00169.HK) Sudden strength in today’s session，The stock price once rose by more than 155%

Other side，Sunac China (01918.HK) Chairman Sun Hongbin said，The funds involved in the transaction come entirely from Sunac’s own funds，As of June 30, 2017，The company still has more than 90 billion yuan in cash。Sunac China’s announcement on the Hong Kong Stock Exchange，The company’s stock trading will be suspended from 9 a.m.，All structured products related to it will also be suspended from trading。

That’s it for the news.

Speaking of June 30th，Wanda Group’s sixth major cultural tourism project, Harbin 188bet sports betting app download City (referred to as Harbin Wanda City), opens，Wang Jianlin also personally promoted on the platform。This project is also the only Wanda City in Northeast China，It is also the largest investment in Northeast China、The highest level cultural tourism project，Claimed to invest 20 billion。

Weren’t you still hyping “Danzhai 188bet sports betting app download Tourism Town” a few days ago?？Speaking of which, the beautiful mayor born in the 1990s seems to be in line with the prince’s aesthetic taste！The pace has become too fast！

In recent years，188bet sports betting app download accelerates the layout of cultural tourism real estate projects across the country，Wang Jianlin has publicly stated on many occasions that he is optimistic about the development of cultural tourism。

188bet sports betting app download Group’s official website published an article titled on September 8, 2016Article "Wang Jianlin gave a keynote speech in Xiamen: Tourism is the best investment"，Mentioned in this article，Wang Jianlin said in his keynote speech: Tourism investment is the country’s industrial direction，Travel is the longest-lasting investment，Travel is the most environmentally friendly investment，Travel is the most profitable investment，Travel is the most enriching investment。(Hahaha~You always have to listen to what the richest man says.)

In 188bet sports betting app download Group’s 2016 work report on January 14 this year，Wang Jianlin clearly pointed out the need to increase tourism investment，Plans to open 25 “188bet sports betting app download City” around the world by 2025，Among them, 5 “188bet sports betting app download City” opened overseas。

The richest man’s preface is in my ears，In the blink of an eye, he packed up all the cultural and tourism sectors that he was confident about and sold them off，The changes today are really hard to keep up with，Everyone in the industry says they “can’t understand”。

Here the author has sorted out some information,Mainly sourced from the compilation of public information from the Internet and media,For industry analysis and speculation:

1、Time returned to December 23, 2014，188bet sports betting app download Commercial (03699.HK) performed dismally in its debut in Hong Kong，The subscription amount of Hong Kong retail investors that day was only half of the target，Showing extreme distrust of 188bet sports betting app download: as early as when the prospectus was announced，A Hong Kong reporter visited a 188bet sports betting app download Plaza in the Mainland，It was revealed that the rental rate is far less than the 100% stated in the prospectus，And articles repeatedly badmouth 188bet sports betting app download Business，Stated that its main source of income is property appreciation，Once housing prices fall, it will be irreversible。The stock price fell below the issue price of HK，The lowest value is 43.HKD 80，Final closing 46.HKD 75，Decreased by 2 from the issue price.6%。

It has been declining since May 2016，Until the lowest point 31.10 yuan。In the months before delisting, the stock price had been hovering below 50 yuan for a long time。

2、March 30, 2016，188bet sports betting app download Commercial issued an announcement: Major shareholders will offer a price of no less than 48 yuan per share (i.e., the issue price)，Full acquisition of H shares listed in Hong Kong。This move will result in 188bet sports betting app download Commercial being delisted from the Stock Exchange。

September 20，188bet sports betting app download Commercial announced that it will sell 52 at a price that is 10% higher than the IPO price.Privatization and delisting at a price of HK per share，Cost 34.5 billion Hong Kong dollars。

Wang Jianlin in CCTV’s “Dialogue” column on May 22，First public response to the issue of 188bet sports betting app download’s privatization，Proposed two reasons for 188bet sports betting app download’s privatization and return to A-shares:

First, 188bet sports betting app download Commercial’s value is seriously underestimated.

Second, privatization creates a new global model.

But actually，188bet sports betting app download Commercial’s decision to return to A-shares may have been planned as early as early 2015。At that time, the Shanghai Stock Exchange Index ushered in a bull market，later touched 5178.19 o'clock。And applied for A-share listing in September 2015，Expected to raise 12 billion yuan。188bet sports betting app download Commercial’s Hong Kong stock market earnings ratio is only about 6，And the long-term stock price is depressed (see the picture above)。China’s A-shares are one of the world’s most highly valued markets，P/E ratios of listed companies similar to 188bet sports betting app download Commercial are generally around 30。

In other words, after 188bet sports betting app download returns to A shares，Market value can increase by 500%，Wang Jianlin will once again become the undisputed richest man！What’s more important，Due to the opacity of the Chinese market，188bet sports betting app download Business is worthless in Hong Kong，Theoretically, it is possible to raise 1 trillion through equity pledge from the domestic capital market！This is the true purpose of 188bet sports betting app download’s privatization and return to A-shares！

3、188bet sports betting app download creatively invented a “new global model”: Commitment，If 188bet sports betting app download is still unable to be listed in two years，It will guarantee shareholders an annual return of at least 12% from now on。

actually，This is an equity pledge，It is equivalent to using 188bet sports betting app download Commercial’s equity to borrow a loan with an annual interest rate of no less than 12% to repurchase its own shares。And Vanke, a real estate developer as famous as 188bet sports betting app download，The financing cost of its bond issuance is only about 3%。Interest rate is a manifestation of the financial market’s risk assessment，It is very difficult and costly for 188bet sports betting app download to raise funds in the market，The borrowing interest rate is even higher than that of many P2P companies。

In accordance with Hong Kong law，No shares may be sold or mortgaged within one year of listing，And the pledge rate shall not exceed 50%，Once the stock bet exceeds 5%，must be disclosed。If a listed company pledges a large amount of stock，The stock price is bound to collapse。

4、Preparing to return to A-shares since the beginning of 2015，Applying for A-share listing in September of that year。

In February 2016, Liu Shiyu became chairman of the China Securities Regulatory Commission.

April 2016，188bet sports betting app download Cinema Line (currently known as "188bet sports betting app download Movies" 002739.SZ) plans to issue shares to purchase 100% equity of 188bet sports betting app download Film and Television，The estimated value is about 37.5 billion yuan。The core asset of 188bet sports betting app download Film and Television is the nearly bankrupt American Legendary Pictures, which was acquired for 23 billion in January 2016，Legendary Pictures 14 years、Net profit in 15 years is -22.4.3 billion and-36.2.8 billion yuan。Wang Jianlin plans to use 23 billion to buy American junk assets and sell them to Chinese investors for 37.5 billion，Value-added rate nearly 170%。

May 2016，Shenzhen Stock Exchange issued a strict “Twelve Questions” inquiry letter to 188bet sports betting app download Cinemas，Require 188bet sports betting app download Cinema to “penetrate” disclosure，Requesting a full explanation of this reorganization。

June 2016，China Securities Regulatory Commission announced，Cancellation of supporting financing for restructuring and listing；Controlling shareholder lock-up for 36 months，Extension to 24 months for other shareholders。

In September 2016, 188bet sports betting app download Commercial officially withdrew from the Hong Kong stock market.

Same month，The China Securities Regulatory Commission issued amendments to severely crack down on backdoor listings and cross-border reorganizations，Basically blocking 188bet sports betting app download’s return to A-shares through backdoor schemes。So 188bet sports betting app download, which had been preparing for more than a year, could only wait in line，Based on the current approval speed of more than ten IPOs every month，188bet sports betting app download will need at least two years to be ranked。

Therefore，188bet sports betting app download’s return to A-shares can only happen after the 19th National Congress，For companies like 188bet sports betting app download, political risk is their biggest risk。The vacuum period during the delisting of Hong Kong stocks and the listing of A-shares，188bet sports betting app download will face an extremely tight financial situation。After the 19th National Congress，Policy changes are difficult to predict，The prospect of 188bet sports betting app download’s listing is also very unclear。

5. The three major international rating agencies in 2016:

Moody's adjusts 188bet sports betting app download Commercial's credit rating outlook from stable to negative。

S&P downgraded 188bet sports betting app download Commercial’s credit rating from “BBB+” to “BBB”，The rating outlook is negative and 188bet sports betting app download Commercial’s overseas bonds are rated “BB+” (junk grade)。

Fitch downgrades 188bet sports betting app download Commercial's credit rating to "BBB" from "BBB+"。

September 2016，188bet sports betting app download Commercial Hong Kong officially delisted and prepared to return to A shares。

Same month，Fitch lowers the outlook on 188bet sports betting app download Commercial's offshore bond rating to "negative"。

6、188bet sports betting app download Group’s 2017 semi-annual report shows，188bet sports betting app download Commercial currently holds a cumulative property area of ​​33.87 million square meters，4 more than the end of 2016.8%；Cumulative land reserve area 7332.60,000 square meters。1360 of which hold property area.30,000 square meters，Sale property area 5891.80,000 square meters，Goods value 792.4 billion yuan。

The project acquired by Sunac includes nearly 60 million square meters of construction land，This meansAfter the completion of Sun Hongbin’s acquisition，About 80% of 188bet sports betting app download’s land bank was sold in this transaction，188bet sports betting app download’s domestic assets have become much lighter！

As for some media saying: further "asset-light" will also help 188bet sports betting app download Commercial return to the A-share market as soon as possible。The author really can’t see the logic of this statement。

7、While 188bet sports betting app download is “asset-light” in China，Overseas investment continues to increase。According to incomplete statistics，Since 188bet sports betting app download’s first overseas acquisition in 2012 - the US.6 billion acquisition of AMC, the second largest theater chain in the United States，As of now，188bet sports betting app download’s total overseas investment has reached 245.1 billion yuan。

As shown below:

8、June 22, 2017，188bet sports betting app download staged a double kill of debt and stocks，Bonds and stocks plummeted。Among them，15 188bet sports betting app download 01 issued by 188bet sports betting app download、15 188bet sports betting app download 02、16 188bet sports betting app download 01 and other bonds all fell by more than 2%，188bet sports betting app download Film, its listed company, was close to hitting the limit at midday，Dropped by 9.91%，And emergency suspension in the afternoon。

The reason is said to be an article about "Shandong Pudong Development Bank、ICBC Asset Management、CCB Shanghai and other institutions collectively sold 188bet sports betting app download bonds，The news of requiring managers to liquidate 188bet sports betting app download Group-related bonds” has been widely circulated in the banking industry。

According to another email message obtained from a bank insider，“Receive notice from the Information Management Department of the Head Office，Please help investigate HNA Group、Anbang Group、188bet sports betting app download Group、Fosun Group、Zhejiang Rosenery Investment Company’s investment and borrowing status in our bank and risk analysis，Submit the required information as required，If there is no financing balance，Please reply None”。

In fact, this email message was sent to all banks in early June，The market reaction is slow。At the same time, HNA and Fosun were also greatly affected。As for Anbang，Everyone knows that Wu Xiaohui has entered。

9、It is said that each 188bet sports betting app download City requires 188bet sports betting app download’s cash flow investment of 5 billion yuan from land acquisition to final completion，And most of the 13 188bet sports betting app download cities are still under planning，188bet sports betting app download’s initial investment is not much，After completion, liabilities will account for the majority，188bet sports betting app download will only charge management fees for 188bet sports betting app download City and hotels from now on。

The 13 cultural tourism projects sold by Wang Jianlin this time are: Xishuangbanna 188bet sports betting app download Project、Nanchang 188bet sports betting app download Project、Hefei 188bet sports betting app download Project、Harbin 188bet sports betting app download Project、Wuxi 188bet sports betting app download Project、Qingdao 188bet sports betting app download Project、Guangzhou 188bet sports betting app download Project、Chengdu 188bet sports betting app download Project、Chongqing 188bet sports betting app download Project、Guilin 188bet sports betting app download Project、Jinan 188bet sports betting app download Project、Kunming 188bet sports betting app download Project、Haikou 188bet sports betting app download Project。

In the above projects，There are only 4 projects currently open。Therefore, the actual value of these assets cannot be estimated simply based on the total investment claimed by 188bet sports betting app download，That way the valuation will deviate greatly。

But this acquisition is a discount sale by 188bet sports betting app download, which I agree with。

10. Where does Sunac’s money come from?

Yesterday，Sun Hongbin, Chairman of the Board of Directors of Sunac China said，The funds involved in the transaction come entirely from Sunac’s own funds，As of June 30, 2017，The company still has more than 90 billion yuan in cash。But the author believes that although the money is Sunac’s own funds，But the actual source is mostly from Sunac’s loans。

According to Sunac’s half-year sales results announced on July 5，Sunac China achieved sales of 1118 in the first half of the year.400 million yuan，Ranked seventh in the real estate sales rankings。

Sunac 2016 annual report display，As of December 30, 2016，The company’s total borrowing principal and interest is approximately 112.8 billion yuan。Compared to 41.8 billion yuan at the end of 2015，Increase of about 170%，Net debt ratio is as high as 121.5%。And 2015，Its net debt ratio is 75.9%。The corporate bond trustee management affairs of Sunac Real Estate Group in 2016 are shown，As of the end of 2016，The company’s total liabilities are 2314.9.7 billion yuan，1666 growth in one year.400 million yuan。Same period，The total assets of Sunac Real Estate Group are 2669.600 million yuan，Asset-liability ratio 86.71%。Previous 2015，The data is 71.87%。

In addition, Sunac issued an announcement today (July 11)，The fourth payment method among the payment methods negotiated by both parties is: 188bet sports betting app download issues a three-year loan of 29.6 billion yuan to Sunac through a designated bank，Sunac then paid 188bet sports betting app download 295.7.5 billion final acquisition payment。

Well, yes, 188bet sports betting app download lent money to Sunac to buy itself.

Predictable，After this merger，Sunac’s asset-liability ratio will be astonishing。

Sunac’s highly leveraged expansion has been questioned in the industry，Many institutions have pointed out that Sunac’s high debt ratio may be risky。Since 2017，China Merchants International、BOCI、SWS and other securities firms have given Sunac a “sell” rating。

*This articleAuthor:Zhou Mingqi (WeChat:ZMQ_V_)，Dedicated contract commentator、Columnist，Founder of Jingjian Consulting、Chief Analyst，Long-term commitment to industry analysis and corporate strategy research，188bet sports betting app download planning and investment consultant、Financial Advisor，

The copyright of this article belongs to the author.More original research by the author，You can also follow the public account: Jingjian Cultural Tourism Think Tank (jjwlzk)。