199 billion took over Wanda Hotel, and now it has a debt of more than 280 billion. How to choose R&F?

R&F Real Estate, once the head of the "Five Tigers of South China", has always played the role of the big brother in the real estate industry, but years of poor management and excessive debt have made this big brother miserable.

R&F Property was established in 1994 and headquartered in Guangzhou. At present, it has a number of national first-class and first-class related qualifications and is one of the most comprehensive enterprises in the real estate industry. Li Silian and Zhang Li, the founders of R&F, saw the rising trend of China's real estate industry at that time, so they raised 20 million yuan to set up the R&F real estate company, starting with the transformation of the old factory. R&F has won one project after another with the help of the old city reconstruction, with an amazing growth rate, and has become the real estate enterprise that has benefited the most from the old city reconstruction. In 2005, R&F Real Estate chose to go public in Hong Kong. On the first day, the trading volume reached 610.7 million shares, with a total turnover of over HK$ 68.6 million and a market value of HK$ 20 billion, making R&F Real Estate the private enterprise with the highest financing amount listed by H shares in China at that time.

Less than a year after listing, R&F Real Estate ranks among the top 200 listed companies in Hong Kong stock market, and ranks fourth among real estate enterprises in China in 2007. R&F Real Estate, which is in full swing, is ready to go all out to return to A shares, so it is committed to rapid expansion and has won many projects. Unexpectedly, it encountered an economic crisis in 2008. The economic crisis has hit R&F real estate hard, and there are serious problems in the capital chain. In 20 12, the cash flow of R&F real estate was-246 million yuan, and the liabilities in the third quarter of 20 18 reached 286.3 billion yuan, which was negative for seven consecutive years. Previously, R&F Real Estate focused on project construction in first-tier cities. After being hit by the economic crisis, R&F began to enter the second and third tier cities. However, on 20 13, R&F's plan failed again.

Another industry that R&F has to say is R&F hotels. Since 2003, R&F has invested in high-end hotels, such as Ritz-Carlton, Hyatt Regency and Intercontinental Hotel. However, R&F's hotel business has been losing money for a long time. From 20 13 to 20 17, the loss of R&F Hotel exceeded1400,000 yuan, with the highest loss of 250 million yuan. Even after years of losses, R&F continues to expand its hotel business. From 2065438 to July 2007, R&F took over 77 hotels owned by Wanda, with a purchase price of 65.438+0.99 billion yuan, equivalent to 258 million yuan for a hotel, far lower than the hotel cost price before R&F. These 77 hotels cover an area of more than 280,000 square meters and have more than 23,000 rooms, with an external valuation of not less than 3365438+0 billion yuan. However, in the financial report for the first half of 20 18, the revenue of R&F Hotel was 75 10/00000 yuan, with a loss of 89 million yuan.

In the first half of 20 18, the asset-liability ratio of R&F reached 80%, which was 2.8% higher than that of 20 17. Its total liabilities also increased from134.5 billion yuan in 20 17 years to 233.2 billion yuan in 20 18 years. With the accumulation of debt, the financing of R&F becomes more and more difficult. In the first half of 20 18, the medium-term bill issuance plan of 10 billion yuan was cancelled, the financing issuance plan of 10 billion yuan was also suspended, and the housing lease debt issuance plan of 6 billion yuan was also forced to be cancelled in August. On 20 17 10, R&F Real Estate voluntarily suspended the A-share audit, which is the fifth time that R&F has failed to return to A-shares. On February 20 19, R&F Real Estate issued a profit warning. Consolidated profit in 20 18 decreased by 60% year-on-year. The total annual sales amount is142.3 billion yuan, and the sales area is about10.93 million square meters.

Since "deleveraging" has become a new theme in the real estate industry, all real estate enterprises have chosen to take the initiative to deleverage. For example, Evergrande actively introduced investors to reduce the group's debt ratio, and Sunac effectively controlled the leverage ratio through joint equity investment. However, R&F Real Estate is independent, preferring independent operation and open market financing. In the first half of 20 18, the financing cost reached 2.7 billion yuan, up 184% year-on-year. In addition to the funding problem, the negative news of R&F real estate is also constant. Since 2005, R&F property has been frequently sued, and many people have defended their rights because of quality problems. There are also false propaganda school districts. The original 9-year-old prestigious school has become a 6-year-old primary school, which has triggered a large number of householders to defend their rights. R&F real estate has also been accused of real estate speculation. Where R&F is, house prices will rise.

Today, the total market value of R&F real estate is HK$ 53.7 billion. In contrast, the market value of Evergrande has exceeded HK$ 360 billion. With such high debts and years of losses, the former "Five Tigers of South China" R&F real estate has become no longer beautiful.