It is generally believed in the industry that Shang Lu's development and restructuring of Qingdao Company may be related to its transformation.
From July 2065438 to July 2009, Shang Lu Real Estate, which used to be the carrier of Shang Lu Group's real estate business, was renamed as Shang Lu Development, and the health industry project investment and operation management, medicine, health food and other businesses were added. At the beginning of 2020, Shang Lu developed a two-wheel drive strategy of "biomedicine and ecological health" and proposed to strive to grow into a 100 billion-scale enterprise. Qingdao, 20 19, is included in the layout of the national regional medical center. Yan Yuejin, a well-known real estate analyst, pointed out in an interview with China Net Finance reporter that the restructuring of Shang Lu will definitely take into account the concept that Qingdao belongs to the national regional medical center city, which has a positive effect on the transformation.
Yan Yuejin also told reporters that many enterprises are actually transforming housing enterprises into health industries. However, there are not many successful cases of small and medium-sized enterprises. After all, Yang Kang itself needs more investment.
For the development of Shandong businessmen, it seems to be a realistic problem whether the company's funds can support the future investment in health industry. By the end of 20 19, Shang Lu's total development liabilities were 5132.4 billion yuan, of which short-term loans were 3.552 billion yuan, up 67.4% year-on-year. Short-term loans plus non-current liabilities due within one year reached 6.894 billion yuan, while the monetary funds in the company account were only 3.634 billion yuan.
At the end of 20 19, the asset-liability ratio of Shang Lu development was 9 1.6%. According to statistics of Wind, among 132 A-share listed real estate enterprises, only 5 have an asset-liability ratio exceeding 90% in the same period. However, China Net Finance noted that since 20 1 1, Shang Lu's asset-liability ratio has been above 90% for nine consecutive years.
The net operating cash flow of Shang Lu also changed from negative to positive in 20 19, reaching-3.307 billion yuan, compared with 2.095 billion yuan in the same period of last year. The explanation given by Shang Lu Development is that "the increase of land reserve is caused by the centralized payment of land funds", but the company's land purchase expenditure in 20 19 was not disclosed in the annual report.
In addition to financial problems, Shang Lu Development's companies are frequently punished, which also casts a shadow over its future development.
According to the administrative penalty decision issued by Jinan City Administration Bureau and Jinan City Administration Law Enforcement Bureau, in early July this year, Jinan Lumao Real Estate Co., Ltd. was fined 1.955 million yuan according to Article 49 of the Bidding Law of People's Republic of China (PRC). The annual report shows that the company is the holding company of Shang Lu Development. Last August and June, 10, the company was fined 28,000 yuan and 37,000 yuan respectively for the same reason.