【Beijing News】Yuan Qihong invests 2.4 billion to participate in the shareholding of three companies in one hundred days

Yuan Qihong is the boss of Anhui real estate giant—Goocoo Group; since last October, he has held the shares of Sierte, participated in the shareholding of Ankai Coach and bought the stocks of Donlinks International; and the floating profit is more than 100 million.

Real estate capital distributed industry listed companies are quietly incoming.

Following the holding of Sierte with about 1.6 billion in October 2016, the steersman of the second largest private enterprise in Anhui and Hefei local real estate enterprise--Goocoo Group, Yuan Qihong acted twice recently, in January this year, Goocoo industry spent 350 million to obtain 6.64 % shares of Ankai Coach, in recently days, Donlinks International announced that as of January 26, 2017, the stake that Goocoo Industry enlarged had achieved 37.845 million shares through the centralized auction trading system of Shenzhen Stock Exchange, accounting for 5% of the company"s total share capital. The reporter of Beijing News calculated that Goocoo Group had spent about 500 million Yuan this time.

This also means that Yuan Qihong’s three times of action in one hundred days spent more than 2.4 billion Yuan totally.

Funds “bought the stocks” are self-financing, there is no leverage

Donlinks International announced on the evening of March 3 that, as of January 26, 2017, the stake that Goocoo Industry Holdings Co., Ltd. (hereinafter referred to as "Goocoo Industry") enlarged had achieved 37.845 million shares through the centralized auction trading system of Shenzhen Stock Exchange, accounting for 5% of the company"s total share capital.

When sorting out the report, the reporter found that, the enlargement of stake of Goocoo Industry was completed in consecutive 5 days’ buying: on January 20, bought about 5.498 million shares, after a weekend, bought about 9.656 million shares on January 23; bought 9.765 million shares on January 24, 8.47 million shares on January 25 and 4.45 million shares on January 26, totally 37.845 million shares.

Holding increase for consecutive five days showed the compact holding increase pace of Goocoo Industry. During the increase of holding, the average transaction price was 12.4 Yuan on January 20 and increased to 13.60 Yuan on January 26. According to the calculation of Beijing News reporter, Goocoo Industry spent about 500 million Yuan totally.

For the reasons of the stock buying, Goocoo Industry indicated in the simple equity report that the purpose is out of the future favorable development prospects of Donlinks International. Public information showed that the main business of Donlinks International includes sylvite exploitation, production and sales of potash fertilizer, cereal trade and international shipping etc. currently.

Transboundary transformation had been conducted for Donlinks International in 2015 and 2009. Last year, it also intended to intervene in the passenger car aluminum alloy hub manufacturing business. But from the performance point of view, although there were twice transboundary transformation, the net profit after deducting the non-recurring profit and loss was negative in four years in recent five years (2011 to 2015).

Beijing News reporter noted that on October 24, 2016, namely one hundred days ago, Sierte announced that the controlling shareholder of the company transferred unrestricted outstanding shares of 179.53 million shares to Goocoo Industry through negotiating transfer, accounting for 25%, Goocoo Industry spent 1.6 billion Yuan. While In January 2017, Goocoo Industry was intended to subscribe for 51.5464 million shares of additional shares increased by Ankai Coach, obtaining its 6.64% of shares with about 350 million Yuan.

   Beijing News reporter noted that the participation of holding of three listed companies was completed within one hundred days, and the total cost was up to 2.4 billion Yuan.

When buying the stock of Donlinks International, Goocoo Industry said that the funds was self-raised, there was no direct or indirect situation of coming from the listed companies and their related parties, they were not from the policy reserve and did not contain financing from financial institutions and other leverage financing structured design products.

On February 4, the reporter learned from the Shenzhen Stock Exchange that, there was four bond issue information under the name of Goocoo Investment Co., Ltd. which is one of the shareholders of Goocoo Industry, including non-public offering of corporation bonds in 2015, corporation bonds in 2015, public offering of corporation bonds in 2016 (the fourth period) and non-public offering of corporation bonds in 2017, the amount was 1 billion Yuan, 2 billion Yuan, 1.3 billion Yuan and 5 billion Yuan respectively, totally 9.3 billion Yuan.

In addition, when inquiring about the latest bonds collection book, it was found that Goocoo Group also issued three general corporation bonds-- 16 Goocoo 01, 16 Goocoo 02 and 16 Goocoo 03 and one privately raised company bonds --16 Goocoo bond in 2016, totally up to 3 billion Yuan.

The actual controller of Goocoo is Yuan Qihong who is the boss of Anhui real estate

The non-public offering plan of Ankai Coach showed that Goocoo Industry was established in April 2014, its main business is investment and management etc.. The reporter notes that Goocoo Industry has a big master behind it. Business information shows that the shareholders of Goocoo Industry are Goocoo Investment Co., Ltd. (Hereinafter referred to as Goocoo Investment) and Yuan Qihong, both holding 90% and 10% shares respectively, while Yuan Qihong holds 99.6% shares of Goocoo Investment, so Yuan Qihong is the actual controller of Goocoo Industry.

The volume of Goocoo Investment is relatively large. The 2016 public offering of corporation bonds (fourth period)of Goocoo Investment obtained by the reporter from Shenzhen Stock Exchange showed that its total assets in 2013-2015 were 25.07 billion Yuan, 32.6 billion Yuan and 34.7 billion Yuan respectively, and its operating income were 7.09 billion Yuan , 6.34 billion Yuan and 6.24 billion Yuan respectively.

    Thereby, with Goocoo Investment as the main body, the second largest private enterprise in Anhui, real estate giant-Goocoo Group surfaced.

The official website shows that the total assets of Goocoo Group was more than 37.8 billion Yuan in 2015 with the operating income of 18.5 billion, ranking China"s Top  50 Real Estate Development Enterprises.

As the controller of Goocoo, Yuan Qihong is the member of the Eleventh Anhui Provincial People"s Congress, executive vice president of Directly under the Chamber of Anhui Federation of Industry and Commerce and the vice chairman of the Chinese People"s Political Consultative Conference of Shushan District, Hefei City. According to public information, he served as the general manager of Hefei Huayuan Property Development Co., Ltd .from September 1998 to November 2005; since November 2005, he has been serving as the chairman of Anhui Goocoo Investment Group.

A Hefei real estate professional told the reporter that Goocoo is mainly engaged in commercial real estate, it built a very fashionable commercial body-Goocoo Plaza in a trading area with relatively frequent population mobility in the old town of Hefei in 2005, Goocoo bounds into fame since then. In 2015, Goocoo became the king of Hefei real estate once again.

The three companies it invested belong to small and medium-sized market value

It is noteworthy that the companies that Goocoo participated in the holding of shares belong to small and medium-sized market value, the data show that the current market value of Donlinks International is about 10 billion Yuan, Sierte is about 6.7 billion Yuan and Ankai Coach is about 4.7 billion Yuan. Relatively small market value means that the cost of buying stock and holding is relatively low.

However, its investment means were very different. When reviewing the previous announcements we can see that when investing in Sierte, Goocoo adopted negotiating transfer, but for investment in Ankai Coach, it subscribed the non-public offering of shares, and for Donlinks International, it bought shares through the centralized auction system of Shenzhen Stock Exchange.

If only from the perspective of financial investment, Goocoo has earned a lot of money. Take Sierte as an example, the net earnings on book of Goocoo were 113 million Yuan in 100 days.

And then take Ankai Coach for example, its non-public offering price was 6.79 Yuan/share, the latest closing price was 6.83 Yuan, rising of 0.04 Yuan, which means that the net earnings on book of Goocoo were 2.06 million Yuan.