Looking back at the situation in Chongqing’s property market, where are the once-famous heads of real estate companies going now?

On July 11, the real estate trust business made waves again. Some information said: "Everbright Trust urgently notifies that all real estate project fundraising (including direct sales and consignment sales) will be stopped as of 12 o'clock today, and all refunds will be made after 12 o'clock." It is worth mentioning that real estate trusts have always been the first choice for real estate companies. One of the important channels for financing. According to Yongyi Trust data, as of July 10, 3,313 trust products invested in the real estate field had been issued in 2019, with a total capital scale of 535.927 billion yuan, making it the field with the largest flow of trust funds.

(Pictures from the Internet)

Trust, one of the most important financing channels for real estate, was suddenly pressed on the pause button. This has caused many small and medium-sized real estate companies that are already strapped for funds to sweat. In fact. Funding problems have always been a survival dilemma faced by small and medium-sized real estate companies. Some real estate companies "sell themselves to save themselves", some apply for bankruptcy protection, and some choose to reorganize and find another way out. In the Chongqing property market for more than 20 years, how many real estate companies have gradually disappeared from people's sight? And where are these leaders of real estate companies who were once famous in Chongqing now?

He is heavily in debt, and a criminal case involving luxury goods smuggling landed him in jail

In 2018-2019, the debt repayment peak for real estate developers is coming, and both leading companies and small and medium-sized developers are facing huge challenges. financial pressure, and once the capital chain is broken, bankruptcy will occur. Last year, four local real estate companies declared bankruptcy, namely Chongqing Hongxing Kewang Real Estate Co., Ltd., Chongqing Dongke Industrial Co., Ltd., Chongqing Guowei Dingyi Investment Co., Ltd., and Chongqing Xidishan Group.

Among them, the most influential one is undoubtedly Chongqing Xidishan Group. Xidishan Group was established in 1999 with total assets of 6.5 billion. On November 29, 2010, Xidishan Group purchased Lot 08 in Jiangbeizui for 1.44 billion yuan and began to build a 280,000-square-meter global luxury center city complex - Oriental in Jiangbeizui, the core area of ??the financial CBD. International Plaza. At this time, Zhang Yuxi and his Xidishan Group were at their peak, having just been selected into the top 500 national real estate companies and the top 50 real estate companies in Chongqing last year. At that time, Oriental International Plaza even signed a contract with the world's top luxury hotel - Mandarin Oriental Hotel to settle in, which was unparalleled for a while. However, to complete the development of such a top-level project, the funds required are also huge.

(Statistical analysis of Xidishan Group’s judgment documents)

Sohu Focus Chongqing station reporter learned from the public information of Qichacha that Xidishan Group’s dispute over the right of recourse*** 8 cases, 32 cases of financial loan contract disputes, and 5 cases of loan contract disputes. According to incomplete statistics, the foreign debt owed by Zhang Yuxi related to Oriental International Plaza may be as high as 6 billion yuan. It can be seen that Zhang Yuxi spared no effort to develop the high-end project of Oriental International Plaza, almost losing all his money.

(Oriental International Plaza)

But at the critical moment when Zhang Yuxi was needed to revitalize Oriental International Plaza, a luxury goods smuggling case became the straw that broke the camel's back. Sohu Focus Chongqing station reporter learned from the People's Procuratorate's case information disclosure website that the case was investigated and concluded by the Lianglu Cuntan Customs Anti-smuggling Branch. After legal review, the defendant Zhang Yuxi, the person in charge of the defendant's unit, arranged for employees to import luxury goods through He evaded taxes totaling RMB 12,048,852.14 by declaring tariffs lower than the actual purchase price of imported goods, lying about trade methods and other means. He is the person in charge directly responsible for the unit. His behavior has violated the third paragraph of the "Criminal Law of the People's Republic of China and the People's Republic of China". Article 10, Article 153, Paragraph 1, Paragraph 3, Paragraph 2, and Paragraph 3, if the criminal facts are clear and the evidence is conclusive and sufficient, the criminal liability shall be investigated for the crime of smuggling general goods. The defendant Zhang Yuxi is currently detained at the Nan'an District Detention Center in Chongqing.

The largest real estate bankruptcy case in Chongqing was concocted, and 14 banks and 4 trust companies "stepped on thunder"

Entering 2019, the pace of bankruptcy of Chongqing real estate companies continues.

In March, Elegant Real Estate had a debt of 6.5 billion and entered bankruptcy and reorganization procedures, becoming the largest real estate bankruptcy case in Chongqing. It is understood that Elegant Real Estate was established in 1995 and is a well-established local real estate company. It was rated as a major taxpayer in Banan District, Chongqing for 11 consecutive years. With the collapse of Elegant Real Estate, 14 banks, 10 small loan companies, 5 trust companies, 13 investment (commerce) companies, multiple natural persons, and hundreds of materials (engineering) companies behind it received Implicated and fell into a situation of "difficulty collecting debts". It is understood that the debt of Elegant Real Estate is as high as 6.5 billion. Even China Chengxin Trust, the trust company ranked 17th in the overall ranking in 2018, unfortunately fell into the trap.

(The information in the picture comes from the official website of Tianyancha)

A reporter from Sohu Focus Chongqing station found on the official website of Tianyancha that Zhang Yisheng and Zhang Xin are the largest shareholders and second largest shareholders of Elegant Real Estate. Major shareholder. Tianyancha shows that Zhang Yisheng is the legal representative and largest shareholder of the company, with a paid-in capital contribution of 132 million yuan. Zhang Xin is the second largest shareholder of Elegant Real Estate, with a paid-in capital contribution of 40 million yuan. At the same time, China's judgment documents online show that China Chengxin Trust Company and Elegant Real Estate Company signed (2014) Mortgage No. 02111100364 "Chongqing Real Estate Mortgage Contract" on February 11, 2014, stipulating that Elegant Real Estate Company shall be located in Chongqing under its name 282 residential units and garages 1-21 at No. 2 Yunjin Road, Banan District, Banan District (the building area of ??the parking space is 37,922.8 square meters), and the mortgage right is set as a guarantee for the performance of debts to China Credit Trust Company. The loan amount is 300 million yuan. Both parties The mortgage registration was carried out on the same day.

Later, because Elegant Real Estate failed to repay the due loan to China Chengxin Trust Company as agreed, China Chengxin Trust applied to the court of first instance to sue Elegant Real Estate and the largest shareholder of Elegant Real Estate, the guarantor. The second largest shareholders Zhang Yisheng and Zhang Xin compulsorily enforced it. However, in fact, the house 5-2 in Unit 3 of No. 9 Building, Yishan County, which Zhang Yisheng mortgaged to Zhongxin Trust Company, and the parking space No. 359 in the negative 1-21 garage have already been replaced and compensated. After hearing the case, the court determined that the civil rights and interests of the natural person in relation to the house and parking space involved in the case could not be established to exclude China Trust Trust from enforcement.

How will this dispute be handled next? "The Chongqing Ya project is currently held by a single institutional trustee. Our company has been fulfilling the trustee's obligations in accordance with the relevant contracts; we will actively resolve the project through various methods in the future. "Risk." China Chengxin Trust said. In other words, China Chengxin Trust's long "debt collection journey" against Zhang Yisheng and Zhang Xin has not yet ended.

The battle for equity has escalated, and the largest shareholder has been eliminated

In April this year, Chongqing Silver Star Intelligent Industry (Group) Co., Ltd., once one of the top 50 companies in Chongqing, applied for bankruptcy reorganization in the court, which attracted widespread attention in the industry. According to public information, Silver Star Group was established in 1998. On December 8, 2018, the registered capital was 75 million yuan. The shareholders were Li Daming (65 shares held), Wang Zhenqun (15 shares held), Ye Qingzuo (5 shares held), and Wang Zhenmei (15 shares held). The registration place was Zhengyang, Chongqing City. Industrial Park Road, Baijiahe. Since 2000, it has been continuously rated as one of the top 50 private enterprises and top 50 real estate development projects in Chongqing. In 2012, it was awarded the title of Outstanding Private Enterprise in Chongqing and became one of the well-known enterprises in China. The projects developed have been awarded honorary titles such as "Top Ten Residential Areas" for many times. At its peak, the total assets exceeded 3 billion yuan.

However, since 2012, Oriental Silver Star's real estate business suddenly came to a standstill. There are no new projects or projects under construction, and no related sales revenue. Instead, it relies on building materials trade to obtain meager profits, barely maintaining a revenue of more than 10 million yuan, and ensuring that it will not be delisted. According to relevant media reports, although the performance is not very good, However, with a total share capital of 128 million shares, Oriental Silver Star transformed into a shell company that was popular in the market. In 2013, Oriental Silver Star became a "star" due to the protracted battle for equity.

From May to July 2013, Yushang Group won 15% of Oriental Silver Star's equity three times. After becoming the second largest shareholder, it began to negotiate with Chongqing Silver Star, the original controlling shareholder of the listed company. The battle for control of Zhiye (Group) Co., Ltd. According to the Securities Times, on October 22, 2014, Yushang Group submitted a request to the Senior People’s Court of Henan Province regarding a dispute over damage liability for related transactions between Chongqing Yinxing Intelligent Industry (Group) Co., Ltd., Li Daming, and Chongqing Tianxian Lake Real Estate Co., Ltd. A civil lawsuit was filed in court. On November 13, the Henan Higher People's Court ruled that the bank deposits of Chongqing Yinxing Intelligent Industry (Group) Co., Ltd., Li Daming, and Chongqing Tianxian Lake Real Estate Co., Ltd. worth 130 million yuan should be frozen or seized after Yushang Group filed an application for property preservation. , seize property of the same value.

Afterwards, after inquiries, Yushang Group believed that these 16 land parcels did not meet the land transfer conditions stipulated in the "Real Estate Management Law of the People's Republic of China" and had not been able to go through the transfer procedures so far, so they withdrew it. The civil lawsuit in this case was turned to the public security organs for reporting Chairman Li Daming on suspicion of breach of trust and harming the interests of listed companies. In this regard, the relevant person in charge of Chongqing Silver Star Group stated that the other party filed the lawsuit maliciously and the freezing measures will affect the company's normal operations. From civil disputes to criminal cases, it is rare for Oriental Silver Star's internal shareholder disputes to be so tragic.

In August 2015, Oriental Silver Star announced that the company's shareholders, Chongqing Silver Star Intelligent Industry (Group) Co., Ltd. (hereinafter referred to as "Silver Star Group") and Shanxi Dongxin Building Materials Trading Co., Ltd. (hereinafter referred to as "Silver Star Group") "Dongxin Company") signed the "Share Transfer Agreement". Silver Star Group transferred all 26.785 million shares of the company it held to Dongxin Company through the transfer agreement, and the share transfer price was 800 million yuan. At this point, Silver Star Group will no longer hold the company's shares. Li Daming, the actual controller of Silver Star Group, will no longer be the actual controller of the company. The former largest shareholder has been eliminated.

In March 2017, Jin Dongxin sold its equity to Zhonggeng Group. Although the equity continues to flow, in the face of the increasingly competitive real estate market, Oriental Silver Star does not have enough effective measures to reverse its business failure. As of August 31, 2018, the total assets of Silver Star Group Company were 1,047.7709 million yuan, and the total liabilities were 1,186.1476 million yuan. Finally, it went bankrupt due to insolvency and a broken capital chain.