Layout Culture and Tourism，Rongsheng Real Estate Development Co., Ltd. (hereinafter referred to as "Rongsheng Development") continues its once radical play。 

Early April，Rongsheng Development signed an agreement with Wuhan Xinzhou District Government and others，Build a 1,500-acre tourist resort；Signed contract for a 6,000-acre town in Maju Town, Yuyao, Zhejiang、Fengqing Street Project；Signed a cooperation agreement with KYATT Austria，Will be in Traditional Chinese Medicine、Travel、Elderly Care、Winter Olympics、Cooperation in the hotel industry and other fields。

According to incomplete statistics，From the end of March 2017 to the beginning of April 2018，Except July 2017，Rongsheng Development has cultural tourism projects reaching cooperation or cooperation intentions every month。188bet Online Sports Betting and Casino

Rongsheng Development is headquartered in Langfang, Hebei，is the first real estate company listed through IPO in Hebei Province，Once radically acquired land to reserve a large amount of land，Once known as the "King of Hebei"。

In the trend of traditional real estate companies transforming into cultural tourism，Rongsheng Development is an active member，In high debt，In a situation where more reliance is placed on financing to “replenish blood”，Its intensive and generous investment layout，It is quite similar to Wanda’s former style of holding high and enclosing land。Wanda has learned a lesson from its failure，Size、Resources are obviously weaker than Wanda’s prosperous development，What kind of wind and rain will we encounter？

The important node for Rongsheng’s development and layout of cultural tourism is 2015.

November 22nd of the same year，Rongsheng Development announced that it plans to invest in the establishment of a wholly-owned subsidiary of Rongsheng Kanglv Investment Co., Ltd.。The business scope is the construction of tourist resort facilities、Retirement and health care、Rehabilitation Medical、Culture and Sports、Investment in Life and Bioengineering、R&D, etc.。

According to Rongsheng Kanglv’s explanation，“Kanglv” is a combination of comprehensive health and pan-cultural tourism，The business model is “wellness + travel”。Rongshengkanglv’s strategy is to lay out “Greater Beijing、Dahuang Mountain、Greater China、大海南、Greater Shanghai、Six major tourism areas in Southwest China，In the sea、Lake、Four natural business formats near mountains and forests to build four major industries of "travel medicine"，Covering travel、Vacation、Retirement and health care、Recovery、Medical、Biology and life engineering industry，The goal is to become the country’s leading new resort lifestyle operator。

188bet app Among them from 2016 to 2020，Rongsheng Kanglv mainly focuses on the three major sectors of "travel and medical care"。

Actually as early as 2014，Rongsheng Development has begun to deploy cultural tourism。May of that year，It announced that it will develop high-end cultural tourism projects in Huangshan, Anhui，Involving funds of about 1 billion yuan。July 2015，Rongsheng Future City, a large indoor theme park located in Tangshan, Hebei Province, is released to the public，Invest nearly 5 billion yuan。

By the second half of 2016，Rongsheng Kanglv International Resort is now in Qinhuangdao、Yesanpo、Chengde、Xingtai、Hengshui、Huangshan、Jiuhua Mountain、Shennongjia、Hainan、Chengdu、14 health and tourism projects have been deployed in Xi’an, Nanjing and other places，And acquired American Airlines in August of that year。

November 2016，Rongsheng Development releases “3+X” strategy，That is, big real estate、Great Health、Big Finance+X (Internet and other emerging industry strategies)，Building a comprehensive health sector through "travel medicine"，Increase eco-tourism、Investment in elderly care and health care。 

The cultural and tourism layout of Rongsheng Development has begun to accelerate significantly，Intensive investment。

As above，From the end of March 2017 to the beginning of April 2018，One year，Rongsheng Development has (planned to) layout 28 cultural tourism projects，Planned investment (including some interested parties，Projects that have not yet been finalized) have an estimated budget of nearly 200 billion yuan。

Overview of the layout of Rongsheng Development’s cultural tourism projects (the equivalent investment amount is based on the preferential budget，Non-final investment amount)

Can be found by combing project information,Rongsheng Development has no specific project layout as of July 2017，And May 2017、Invested in 5 projects in June，The estimated investment amount is more than 70 billion yuan。Including Hebei Province Sino-US Friendship Demonstration Farm Project、Longyan Yunding Kanglv International Resort Project、Wulinshan Boutique B&B Tourism Development Project in Xinglong County, Chengde, Hebei Province，The estimated budget amount exceeds 20 billion yuan。

A tens of billions of dollars worth of work like this，In October 2017、Also appears many times in November。In overall project，Planned investment of billions、Ten billion-level projects account for the majority。Hebei、Henan、Anhui and other places are the main layout areas。

At the same time，Rongsheng Development’s cultural tourism projects have also begun to extend overseas，May 2017，Rongsheng Development plans to invest in the Pasovsky Spa and Entertainment Project in the Czech Republic，The proposed investment amount is 5.6.8 billion yuan。April this year，Rongsheng Development and the Austrian company KYATT reached a strategic cooperation based on the “One Belt, One Road” initiative，Will be in Traditional Chinese Medicine、Travel、Elderly Care、Winter Olympics、Cooperation in the hotel industry and other fields。

Radical，Even crazy，It is the label that the outside world has given to prosperity and development。Take an example，its announcement once said，The company was in Hebei in December 2016、Nanjing、Chongqing and other places spent about 8 billion yuan to sweep 47 land parcels。And all of 2017，No new land except February，Rongsheng Development has acquired land in other Novembers，Won more than 100 cases in total，The cost of land acquisition alone exceeds 20 billion yuan。

Rongsheng Development’s cultural and tourism layout is also similar to its aggressive land acquisition。 The key behind this is，Get land、The layout of cultural tourism projects is so vigorous，Where does the money for Rongsheng Development come from？

Rongsheng Development mostly relies on banks for its funding sources、Stock and bond markets。

Rongsheng Development’s 2017 annual report shows,2017，The company developed a loan from the original bank、Trust Financing、Equity Financing、Based on asset securitization，Added medium-term notes、Directed Debt Financing Facility (PPN)、Ultra short financing bonds、Industrial supply chain financing and other methods。More than 47 billion yuan in financing in 2017，Among them, bank loans exceed 20 billion yuan，Annual average financing cost 6.5%。

Developing various financing techniques in Rongsheng，The frequent pledge of equity by its controlling shareholders is an important part。Starting from April 2017，Rongsheng Holdings, the largest shareholder of Rongsheng Development，Mortgage shares to First Venture Co., Ltd. on average every month。

Rongsheng Development’s 2017 annual report shows,As of December 31, 2017，Rongsheng Development shareholder Geng Jianming (Chairman)、Rongsheng Holdings、Rongsheng Construction pledged 0.1.6 billion shares、14.59.9 billion shares、5.9.6 billion shares。Among them Rongsheng Holdings、The pledge rate of Rongsheng Construction exceeds 94% respectively、99%。What’s more serious，The equity pledged by the three parties is about 20.7.2 billion shares，Accounting for 47 of the total share capital.66%，Approaching the 50% pledge red line。

There are two details before and after:

First, Rongsheng Holdings increased its holdings by 2.4 million shares from December 8 to December 11, 2017，8 per share.6 yuan，And plans to increase its holdings by no more than 1% in total within three months from December 8, 2017。

The second is，January 16, 2018，Liu Shan, President of Rongsheng Development, reduced his holdings by 252 through the bulk trading system.60,000 shares，Accounting for 0 of the company’s total share capital.058%，Average price 12.18 yuan/share，Reduced market value by about 30 million yuan。Also，Liu Shan said that he will no longer reduce his holdings of the company’s stocks in the next 6 months。

In other words，When Liu Shan’s share price of Rongsheng Development rose or reached a relatively high level，Reduced holdings。Correspondingly，In April 2017，Rongsheng Development stock price rises，His executive Zou Jiali reduced his holdings by 1.5 million shares，The amount is approximately 17 million yuan。

Controlling shareholders increase their holdings in a timely manner，Maybe to boost the stock price，Maybe to reduce the pressure 188bet online sports betting on equity pledge，Executives cash out at high positions，In fact, from some aspects, it is a realistic choice。And the same reality is，Rongsheng Development relies on financing to "replenish blood", and its net operating cash flow has been negative for many years，And the debt ratio that has continued to rise in recent years。

Annual reports (quarterly reports) combined with Rongsheng Development，It can be found that its asset-liability ratio increased from 76 in 2012.56% increased to 84 in 2017.68%。Total assets of Rongsheng Development in 2017 1917.3.3 billion yuan，Total liabilities 1623.5.3 billion yuan。

Overview of Rongsheng Development’s asset-liability ratio trends

Similar to high debt is the net cash flow generated from operating activities。

After sorting out the financial report of Rongsheng Development, we found thatThe net cash flow generated from its operating activities has been negative for several consecutive years，And the outflow has been expanding in recent years: from -16 in 2014.6.1 billion yuan expanded to -36 in 2016.9.5 billion yuan，In the first three quarters of 2017, the net outflow was 75.7.1 billion yuan。However，According to the latest 2017 financial report released by Rongsheng Development，The net cash flow generated from operating activities in 2017 was 22.7.4 billion yuan。

It is not easy to finally become a "positive" person.

Overview of operating cash flow trends of Rongsheng Development

The unique cyclical nature of real estate and other factors，Making real estate developers’ net operating cash flow negative in the short or longer term，This is normal，But Rongsheng’s development has been like this for several consecutive years，Really rare。

Rongsheng Development once said，The increase in operating cash outflow is due to the increase in land bidding deposit payment，The significant difference between operating net cash flow and net profit is due to the increase in inventory。As shown in its 2017 annual report，Inventory in 2017 is 1193.2.2 billion yuan，34 year-on-year increase.18%。

In other words, after Rongsheng Development acquired a large amount of land,There may be some problems with land development and house sales。　　

According to Rongsheng development plan，It will increase credit financing by 60 billion yuan in 2018，Will mainly be project development loan financing,To issue corporate bonds、Medium term notes、Trust、Supplemented by asset securitization and other new financing methods。

Looking at land acquisition combined with Rongsheng Development’s radical expansion，The logic is to use financing to hoard land，Use land as a stepping stone，Continue financing...land prices and house prices will rise during the betting period，To obtain higher returns。But it corresponds to the subjective and objective conditions for prosperity and development，The risks it faces are not small。

Subjectively speaking，Inventory scale continues to expand，The production and sales efficiency of Rongsheng Development needs to be improved；Objectively speaking，The land currently owned by Rongsheng Development，Either the surrounding Beijing area，Or distributed in second- and third-tier cities，The property market in the surrounding Beijing area emphasizes that control policies have not been relaxed，The demand for housing in second- and third-tier cities is relatively limited，Many uncertainties，188bet online sports betting all directly affect the rising space and realization cycle of land and house prices。

The greater risk is thatCultural tourism projects worth nearly 200 billion yuan，Whether we can get the benefits as scheduled，There are many challenges。

First，Does Rongsheng Development have sufficient operational capabilities for cultural tourism projects？

Rongsheng Development’s experience and capabilities are concentrated in real estate development、Development and operation of Industrial New City Park，However, the specific operation capabilities of cultural tourism projects are relatively lacking，At present, there is no very successful operation case。General remarks，Real estate development is nothing more than acquiring land and building houses、Selling a house，The test is more about the ability to obtain land，Industrial New City Parks mostly acquire land、Investment，More tests on the ability to attract investment and resource integration。

Cultural and tourism real estate is beyond these capabilities，It also tests the overall project management ability，Content or product development、Iterative update，Layout planning of the overall business format, etc.，Both are crucial，Can you dig deeper，Maintain continued stamina，Determines the life and death of a cultural tourism project。

Especially when many cultural tourism projects with different forms are deployed one after another，Stretched talent pool, especially the lack of project managers，The problem is even more huge。

Looking at it from the content side，There is a saying in the world, "Whoever gets the IP wins the world"，Although somewhat absolute，But never too much，Looking at the current cultural tourism projects that have achieved significant results，Mostly made in IP，Constitute continuous customer attraction、Key elements for retaining customers。Even if the IP attribute of the product is weak，But personalized、Differentiation is important。

Rongsheng Development had no cultural tourism IP reserves before，Coupled with the lack of sufficient product development and manufacturing capabilities，Content products that can be implemented on the cultural tourism market and are sufficiently competitive，Overall weak。

Take Tangshan’s Rongsheng Future City as an example。According to previous media reports，Rongsheng Future City Positioning Indoor Theme Park，Connect shopping and culture、Travel、Casual、Integration of entertainment，Form a combination of 40% experience format + 50% self-sustained format。Including "Star Fantasy Port Indoor Theme Park", "Magic Bean City Children's Professional Experience Center", "Outlet Famous Brand Street", "Star International Cinema", "Global Food Exchange", "Star Fantasy Station" and other businesses。

Specific to product，Star Fantasy Port Indoor Theme Park sets up the Star-Tearing Sky Coaster、Space shuttle pirate ship、Flying dome、Light and shadow interaction、Pirate Ship、Carousel、Jumping machine, etc.；Magic Beans City Children’s Experience Center includes vocational experience、Sports experience、Three major sections of technology experience。The professional experience section has 43 experience projects in 8 major social industries，Nearly a hundred experience occupations。188bet app Trampoline set up in the sports experience section、N climb、Three major sports series of extreme sports，The technology experience section has a voice、Light、Electricity、force、Magnetic、Water、Light and shadow interaction、VR virtual reality and other 8 series of exhibition items。

Rongsheng Future City Star Fantasy Harbor Indoor Theme Park

Frankly speaking, these products are essentially common in the market，Nothing special，Limited market potential。 

In terms of market environment，Take the Yesanpo Scenic Area in Laishui County, Baoding invested by Rongsheng Development in 2015 as an example，It will be built into a tourist attraction、Leisure and entertainment、Retirement and health care、A comprehensive scenic spot integrating sports, fitness, holiday accommodation and other functions，Invest 2 billion in three years。 

Laishui County 2014、Data display in 2015，Yesanpo Scenic Area received tourists throughout the year in two years、Total tourism revenue and ticket revenue both maintain growth，But affected by market competition，The growth rate has declined，The year-on-year growth in ticket revenue was 160% respectively、15.4%，Serious decline in growth rate。

Investment and development of Yesanpo by Rongsheng Development，The former China Securities Regulatory Commission once required it to explain the rationality and necessity in the "Notice of Feedback on Administrative Licensing Project Review" (No. 162130) issued on September 19, 2016。Rongsheng Development’s response is due to strategic transformation (“3+X” strategy)，The company is transforming into a lifestyle operator。 

Discoverable by combing,Cultural tourism project planned by Rongsheng Development，Mostly distributed in second- and third-tier cities，There are many overlaps with its traditional real estate land acquisition areas，The worries similar to Yesanpo Scenic Area are not isolated cases。

In Rongsheng Development 2017 Annual Report，2017 Kanglu Segment Operating Income 31.3.2 billion yuan，But this is still not enough for overall investment。

Continuously increasing financing amount，There are very high requirements for Rongsheng Development’s capital withdrawal，Especially now that the real estate market is still volatile，The potential risks are unpredictable。Coupled with the tightening of financial supervision，Accelerating deleveraging，The financing environment for Rongsheng Development is not as good as before。

Real estate companies are flocking to cultural tourism real estate，But it has not yet formed a very mature model，Even Wanda has suffered many setbacks，Not recovered。Prosperous development facing multiple risks，The journey is full of ups and downs，Within reason。Destiny Geometry，Still waiting。