After experiencing huge pre-loss in performance、188bet sports betting (600239.SH) began to rely on selling assets to recover blood。

Evening of February 24th，188bet sports betting Announcement，The subsidiary company plans to sell the equity of two subsidiaries through public listing，The base price for listing and transfer shall not be lower than the assessed net asset value of the target company，The transfer price is the final transaction price。

Preliminary loss in 2019 is 2.45 billion-2.95 billion 188bet sports betting

Announcement display，Yunnan Ansheng Chuangxiang Tourism Industry Investment Partnership, a subsidiary of 188bet sports betting Holdings, plans to publicly transfer its 51% stake in Xi'an Yuncheng Real Estate Co., Ltd.。As of September 30, 2019，The total audited assets of Xi’an Yuncheng is 3.9.5 billion yuan，Net asset value 1.2.2 billion yuan，Operating income 1.0.2 billion yuan，Net profit 19.8 million yuan。

Currently，The office building project developed by Xi'an Yuncheng is located in Xi'an High-tech Zone，The project consists of three office buildings and ground floor commercial buildings，Currently on sale in late trading。

Also，Xishuangbanna Aviation 188bet sports betting Co., Ltd., another holding subsidiary of Yunnan City 188bet sports betting, plans to publicly transfer its 80% stake in Xishuangbanna Aviation 188bet sports betting Real Estate Co., Ltd.。

As of December 31, 2019，The total assets of Aviation 188bet sports betting Real Estate are 71.27 million yuan，Net assets are 7.96 million yuan，Operating income 0 yuan，Net profit loss 37631 yuan。

Currently，Hangtou Real Estate has acquired 42 located in Jinghong City, Xishuangbanna Prefecture.55 acres of mixed commercial and residential land，This land is currently under development，Preliminary work of project planning in progress。

Yunnan City 188bet sports betting stated in both announcements，The company can obtain 188bet sports betting income through this transfer，Realizing fund recovery，Increase the company’s cash flow。

Behind the frequent sales of projects by 188bet sports betting，It is the high debt and huge liquidity crisis faced by the company today。

2019 third quarter report data display，Yunnan City Investment’s net cash flow from operating activities in the first three quarters was -9.500 million yuan，Down 47% year-on-year.66%，Net profit loss 1.6.3 billion yuan。And in 2019 to 2021，The principal and interest of the interest-bearing debt that the company needs to repay are 475.8.6 billion yuan、287.2.8 billion yuan and 303.7.7 billion yuan。As of the end of the third quarter of 2019，188bet sports betting’s short-term debt gap reaches 17 billion yuan，Net debt ratio is as high as 546%。At the same time，188bet sports betting expects to realize a loss in net profit attributable to shareholders of listed companies in 2019，Net profit loss at 24.500 million to 29.Between 500 million yuan。

It is worth mentioning，Because the difference between net profit loss and the company’s third quarter report is large，188bet sports betting also received an inquiry from the Shanghai Stock Exchange。

Reasons for the company’s sharp decline in operating profit in the fourth quarter，Statement from Yunnan City 188bet sports betting，On the one hand, the company was affected by operating losses in the fourth quarter，On the other hand, it is due to the project company’s provision for inventory decline due to reduced price sales、Affected by factors such as the bankruptcy application of the Art Garden and the provision of impairment provisions for the Shanghai Oriental Sports Park project。

Blending process or delay

Also，Yunnan City 188bet sports betting Name，Affected by the tightening of financial regulatory policies and the incident involving the company’s former chairman，The company’s financing amount dropped significantly，Only 11.1 billion yuan was achieved in 2019，Down 41% year-on-year；Average financing costs increased from 7 in 2018.23% up to 8 in 2019.63%。

February 24，News released by the People’s Procuratorate of Yunnan Province，Former Party Secretary of Yunnan Urban Construction 188bet sports betting Group Co., Ltd.、Chairman Xu Lei is suspected of accepting bribes、Bribery、A case of abuse of power by personnel of a state-owned company，Designated by the Yunnan Provincial People’s Procuratorate，The Dali Prefecture People’s Procuratorate filed a public prosecution with the Dali Prefecture Intermediate People’s Court。

Also，Yunnan City Investment also said，Since the new financing amount and sales proceeds are mainly used to protect the repayment of financial institutions，Serious lack of funds for subsequent development，Leading the project development cycle、Completion carryover postponed。188bet sports betting’s newly completed area in 2019 is 26.180,000 square meters，A significant decrease of 65% compared with the same period in 2018。In 2019, the company’s real estate development business sales revenue was approximately 4 billion yuan，A decrease of approximately 47% compared with the same period in 2018，Not enough to cover the annual operating costs。Average gross sales profit margin 26.75%，Decreased by 3 compared with the same period in 2018.9 percentage points。

188bet sports betting itself is also undergoing strategic transformation。2015，Yunnan City Investment announced to increase investment in health and leisure real estate，The company has formulated the “Thirteenth Five-Year Plan” strategic plan，Coordinate with the Group for Great Health、Big leisure resources，Transforming into the health care cultural tourism industry。

Currently，188bet sports betting is undergoing mixed ownership reform with the central enterprise Poly Group。

July 2019，Yunnan Provincial People’s Government and Poly Group signed a strategic cooperation agreement，Poly Group plans to participate in the mixed ownership reform of 188bet sports betting Group；January 2020，188bet sports betting and 188bet sports betting Group signed an agreement，Planned to sell part of the equity of 17 subsidiaries including Yintai series projects。The total assets involved in the transaction are approximately 32 billion yuan，Interest-bearing liabilities of about 22.6 billion yuan，The price recovered from the transaction is intended to be used to repay debts and supplement working capital。After transaction is completed，It is expected that the company’s assets will decrease significantly。

But currently affected by the epidemic，The mixed-ownership reform process between 188bet sports betting Group and Poly Group may be delayed。At the same time，The major asset transaction case between 188bet sports betting and 188bet sports betting Group still needs to be demonstrated and relevant procedures must be performed，There is still uncertainty about the specific implementation plan and completion time。

*Source of this 188bet sports betting: The PaperWen, author: Li Xiaoqing, original title: "188bet sports betting Chengtou, which has made huge losses in advance, sells its projects to make money，The hybrid process may be delayed》.