Evening of June 12th，Jin Mao Hotels and China Jinmao United, which have been suspended for 5 trading days, suddenly issued an announcement，Proposal to arrange for privatization of Jin Mao 188bet Live Casino，Withdrawal from listing at the same time。Jin Mao 188bet Live Casino (formerly Jin Mao Investment) was listed in Hong Kong in the form of a business trust in 2014，Total financing is about 35.HK.1 billion，is the 188bet Live Casino business segment of China Jinmao that was spun off and listed。Why did Jin Mao 188bet Live Casino suddenly “abandon the market”？In 2020 when cash flow is so tight，For privatization，Jinmao may have to pay about HK.2 billion，What is the real business motivation behind it？

The 188bet Live Casino has been on the market for 6 years,The stock price fell by more than 60% at most

2014，Jinmao 188bet Live Casino (formerly Jinmao Investment) was listed in Hong Kong in the form of a business trust，Total financing is about 35.HK.1 billion，The issue price of listing is 5.HKD 35/share。During six years after listing，The overall stock price of Jinmao 188bet Live Casino fluctuated down to 3.HKD 68/share，5 compared to the listing price.HKD 35/share fell 31.2%。And in the past year (within 52 weeks)，Jinmao 188bet Live Casino shares dropped to a minimum of 2.11 HKD/share，Falled below the issue price by more than 60%。

Interesting thing，The share price of Jinmao 188bet Live Casino once maintained at 2.around 62 Hong Kong dollars/share，But the share price of Jinmao 188bet Live Casino rose continuously in the three trading days before the suspension，by 2.HKD 62/share rose to 3.HKD 68/share，Increased by 40.46%，Maybe related to this proposed privatization and delisting。

Announcement Statement，The privatization price of Jinmao 188bet Live Casino is 4.HKD 8/share，3 compared to the closing price before the suspension.HKD 68/share premium 30.4%。Therefore，6 of this privatization.6.4 billion shares correspond to a total cash of approximately 31.HK.5 billion，Including persons acting in concert with the offeror, China Jinmao、Amounts paid by independent holders of the Scheme Share Stapled Units。

Reasons for proposed privatization，Jinmao 188bet Live Casino gave three explanations in the announcement。First, the impact of the current COVID-19 epidemic and tourism restrictions in various countries around the world，Privatization is in line with long-term development；Second, the liquidity of Jinmao 188bet Live Casino Shares Stapled Units is low，This situation has lasted for a long time；Third, it is a good opportunity to realize investment。

For the second explanation in Jin Mao 188bet Live Casino’s announcement，Actually admitted the embarrassing fact after its listing。From a capital perspective，Since Jin Mao 188bet Live Casino was listed in Hong Kong in the form of a business trust in July 2014，Poor liquidity of the stock，The valuation is not high，The average daily trading volume is only 220,000 shares，Accounting for 0 of the total issued share capital.011%，Such low liquidity prevents the company’s controlling shareholders from raising funds from the capital market，Provide development funds for the company。

3437 deluxe rooms,Occupancy rate is only 25%

Jinmao 188bet Live Casino’s 2019 annual report data display，It currently holds a total of 8 domestic hotels and the Shanghai Jinmao Tower complex project，188bet Live Casino business is the company’s main source of income。where，5 hotels located in the four first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen，3 hotels in Sanya、Lijiang and other well-known tourist cities，Each location is the core area of ​​the city where it is located，All are luxury hotels。

Shanghai area includes Shanghai Jinmao Grand Hyatt 188bet Live Casino and Chongming Jinmao Hyatt 188bet Live Casino；Sanya area includes Jinmao Hilton Sanya Yalong Bay 188bet Live Casino and Jinmao Sanya Yalong Bay Ritz-Carlton 188bet Live Casino；In Beijing, there are the Westin Beijing Jinmao 188bet Live Casino and the Renaissance Beijing Jinmao 188bet Live Casino；Other areas include JW Marriott 188bet Live Casino Shenzhen、Lijiang Jinmao 188bet Live Casino·Hyatt Collection and Lijiang Jinmao Puxu Snow Mountain 188bet Live Casino (formerly known as Lijiang Jinmao Grand Hyatt 188bet Live Casino)。

Annual report display，2019，The group’s 188bet Live Casino operating income is approximately RMB 17.6.7 billion yuan，Down 5% compared with the same period last year；Property rental income is approximately RMB 4.800 million yuan，Decreased 4% compared with the same period last year；Other income mainly includes the 88th floor observation hall of Jin Mao Tower、Property management and light asset business，12% increase over the previous year，Mainly due to the increase in income from the 88th floor observation hall of Jin Mao Tower and light asset business。As understood，Jinmao 88th floor observation hall achieved annual operating income of RMB 74 million，Both revenue and number of visitors hit the highest record for the same period in the 20 years since the opening (excluding the year of the Expo)。At the same time, 3 new super-high-rise tourism consulting projects were signed for external consultation throughout the year。Innovative project Jinmao Cloud Walk achieves independent and safe operation，Full-year revenue of RMB 4.9 million。

But Jin Mao 188bet Live Casino’s revenue has been tepid，Entering 2020，Epidemic Impact，Even the stable income of Jinmao Tower has been greatly affected。Jin Mao Tower sightseeing business is subject to operational safety considerations and in response to the requirements of the Shanghai Municipal Bureau of Culture and Tourism，Closed on the afternoon of January 24th，It will not be reopened until May 8 this year。

During the epidemic，All hotels under Jinmao Hotels remain open，But the occupancy rate has further declined significantly。According to the latest first quarter financial report: the total number of rooms in Jinmao 188bet Live Casino is 3437，First Quarter，The cumulative occupancy rate of 188bet Live Casino rooms is 25.1%，75 in the same period last year.6%，Decreased by 66 year-on-year.9%；The cumulative average house price is 1,408 yuan，Decreased by 7 year-on-year.5%；The cumulative revenue per room is 353 yuan，990 yuan in the same period last year，Decreased by 64 year-on-year.4%。

In view of the impact of the epidemic on the company’s business，Jinmao 188bet Live Casino also admitted in the announcement，The epidemic has had a huge impact on China’s 188bet Live Casino industry and even tourism，The company’s 188bet Live Casino and tourism business has also been significantly affected。

Analysis: Why real estate developersIs the 188bet Live Casino dream so difficult?

Every real estate developer，Everyone seems to have a 188bet Live Casino dream。But from Wanda to R&F，From Country Garden to Jinmao，188bet Live Casino Empire Dream，It doesn’t seem that easy to achieve。

Old real estate developer Wanda opened 85 more hotels in 2019，More than 100 hotels under construction and to be opened，Covering more than 100 cities around the world。But according to the financial report released at the end of March this year，2019，Wanda 188bet Live Casino didn’t make a lot of money，Net loss for the whole year 1.HK0 million。R&F Properties, which took over from Wanda，19.9 billion to “take over” 77 Wanda hotels，Now it has a debt of 300 billion！

April 20 this year，Just like when they claimed to build 1 million long-term rental apartments in three years，The heroic Country Garden announcement，The core alliance enterprise Fengyue Hotels and Resorts officially announced its establishment，Organize and manage more than 50 billion yuan in 188bet Live Casino assets around the world。

Let’s ignore Country Garden’s 188bet Live Casino future，But Country Garden is not new to hotels，Have been "deeply engaged" in this industry for more than 10 years。188bet Live Casino development in the past 10 years，Country Garden’s performance is not good，On the contrary, excessive 188bet Live Casino assets bring some pressure。2017，The number of Country Garden hotels declined for the first time，The number of 188bet Live Casino reserve projects dropped sharply from 62 at the end of 2016 to 48，Meanwhile earnings fell 2% to 16.7.4 billion yuan。To this，Country Garden said it was due to the disposal of some hotels。

Starting in 2017，This is the time when Country Garden is expanding rapidly，From 100 billion to 300 billion to 550 billion，Until you sit on the pin crown。This period，Country Garden has chosen to slim down its 188bet Live Casino business。Then in 2018，188bet Live Casino business begins to fade out of Country Garden’s annual report，No longer obviously stand alone，Instead, it is included in “including property investment、Property management before spin-off and listing、Inside 188bet Live Casino Experience and Other Other Divisions，The details of hotels in operation and preparing to open have also been removed。

If you insist on finding a real estate developer that is relatively good at hotels，Probably it can only be Shimao。It is also a detour that has taken 10 years，2015，Shimao just started to establish its own 188bet Live Casino brand。2017，A joint venture company established by Shimao Group and Starwood Capital Group，Both parties invested US0 million to establish a joint venture 188bet Live Casino company，Used to expand asset-light 188bet Live Casino business focusing on the domestic first, second and third tier markets。Shimao holds 51% of the shares，Starwood Capital holds 49% shares。Shimao’s positioning in the 188bet Live Casino business has gradually become clear，Concurrent light and heavy assets，As a future strategic direction。

Despite the impact of the epidemic，But Shimao still plans to have 300 hotels in 2021。Vice Chairman of the Board of Directors of Shimao Group、President Xu Shitan once said，Hopefully in 2021, Shimao hotels and properties can be split and listed separately。However，That’s for sure，Shimao 188bet Live Casino will not always be smooth sailing，The "liquidity worries" in the capital chain are always there，Shimao has accumulated a large amount of funds in its property holdings，Increasing operational pressure。Data display，In the past few years，Shimao in Shenzhen、Shanghai and other places own many hotels、High-rise assets，The debt ratio of enterprises was once high。

Guess: 188bet Live Casino + business, or packaged and relisted!

Above cases，We can analyze，Real estate developer builds 188bet Live Casino，Coexistence of crises。On the one hand，To build a 188bet Live Casino, you must abandon the real estate mentality，Need professional hoteliers to operate；On the other hand，Real estate developers are accustomed to falling into the vortex of balancing "light and heavy assets"，Prone to capital chain worries。

In fact, Jin Mao 188bet Live Casino and Shimao 188bet Live Casino have always had capital chain concerns，The hotels they make are either city landmark hotels，Either super luxury 188bet Live Casino，No matter how bad it is, it is still a high-end 188bet Live Casino。This year’s global epidemic，The demand for foreign business travelers and domestic conferences has almost dropped off a cliff，Luxury hotels bear the brunt of the impact。

Then，Jin Mao 188bet Live Casino at this time，Why should we implement privatization and delisting？For delisting，Recover shares，More than 3 billion Hong Kong dollars still need to be spent，What are the considerations?？

According to Jinmao’s announcement，"Under the current circumstances，China Jinmao plans to make necessary adjustments to the asset portfolio of Jinmao 188bet Live Casino Investment Company，To get through this difficult period。”China Jinmao Name，If it can be implemented，Although it may have a negative impact on the group’s short- and medium-term financial performance，But China Jinmao can make necessary asset portfolio adjustments more flexibly，And make strategic decisions that are consistent with the group’s long-term goals。

China Jinmao is a real estate development platform under China’s Sinochem Group，The core business is divided into real estate development、188bet Live Casino、Three major business sectors。The total assets of the 188bet Live Casino sector where Jin Mao 188bet Live Casino is located are 201.0.7 billion yuan，Accounting for only 5% of China Jinmao’s total assets.5%。

——You read that right，The 188bet Live Casino sector is just a "little seedling" under the big tree of Jinmao，The seedlings have grown for 6 years，Still stunted，Spend a little money to correct and support，Purely a normal adjustment。

Data disclosed by China 188bet Live Casino，The cumulative contracted sales amount in the first five months of 2020 increased by 19% year-on-year.78% to 652.3.5 billion yuan，The cumulative contracted sales floor area is approximately 379.90,000 square meters。As of May 31st，A total sales amount of subscribed (not signed) properties has been recorded 112.9.1 billion yuan。Based on its sales target of 200 billion yuan in 2020，The current target completion rate is 32.62%。——For the commercial housing sales target of 200 billion，More than 3 billion is really just a small amount of money。

As for after privatization and delisting，What are China 188bet Live Casino’s plans，People in the industry including me agree，188bet Live Casino’s move is intended to restructure assets，The next step is very likely，United commercial sector to expand secondary listing。

According to announcement，Jinmao 188bet Live Casino plans to resume trading at 9 a.m. on June 15。The answer to the specific next move，will also be revealed step by step。

*Source of this article：WeChat public account "Space Detective”(ID:MESPACE007)，Author: Xiong Chumo，Original title: "The mystery of Jin Mao 188bet Live Casino’s “abandonment”》.