Modern Avenue For Sale Of Headquarters Building Valuation Reduced By 545 Million

In October of last year, modern Avenue (002656, SZ) issued a reorganization plan to sell assets such as the headquarters building that had not been relocated for a long time. At that time, the company was the controlling shareholder of Ruifeng group. However, the restructuring was aborted in the short term.

According to the announcement of the evening of morden Avenue in the evening of August 7th, it once again played an abacus for the sale of the headquarters building, which is the Guangzhou Jian Kang Sports Culture Development Co., Ltd. under the Guangzhou economic and Technological Development Zone Administrative Committee.

Re sale of headquarters building

According to the announcement of the modern Avenue, the company signed the purchase agreement with the Guangzhou Jian Kang Sports Culture Development Co., Ltd. (hereinafter referred to as "Jian Kang sports") on the headquarters of the modern Avenue. The listed company intends to sell the assets such as the relevant land use rights and the buildings on the ground above the No. 23 spectrum Road, Whampoa Science District, Guangzhou City, that is, the headquarters building, and sell them to Jian Kang sports.

It is reported that the land use right area of the block of the modern Avenue headquarters is 19 thousand and 300 square meters, which has obtained the warrant for the use of state-owned land. The aboveground building predicts a total construction area of 49 thousand and 400 square meters, and the underground building has an estimated area of 21 thousand and 600 square meters (including the area of civil air defense works).

The reporter noted that there were many differences in valuation between the two sale plans. In October 2018, morden Avenue announced the sale of its headquarters to its controlling shareholder, Ruifeng group. At that time, the estimated value of related assets and liabilities of the headquarters building was about 1 billion 520 million yuan, and the estimated value of this transaction was 975 million yuan (including VAT), and the appreciation rate was 25.33%, which was 545 million yuan less than before. After consultation, the transaction price is 975 million yuan (including VAT).

It is worth mentioning that the previous 1 billion 520 million yuan was "the asset based law" was estimated, and the 975 million yuan (including VAT) was hired by professional assessment institutions and issued an evaluation report.

In the last sale plan, the listed company announced that the core delivery condition was temporarily unable to meet due to the fact that the real estate ownership certificate of the headquarters building had not yet been completed. In view of this, the two sides agreed to terminate the transaction of related assets in the headquarters building through negotiation. According to the announcement of the evening of morden Avenue in August 7th, the real estate warrants of its headquarters building are still being processed.

The fitness of Hong Kong's headquarters is not bad. Jian Kang sports was established in 2005 with a registered capital of 500 thousand yuan. The company mainly engaged in chess and card services, fitness services, sports organizations and other businesses. Jian Kang sports is wholly owned by the Science City (Guangzhou) investment group and is actually controlled by the Guangzhou economic and Technological Development Zone Administrative Committee.

Or lose the qualification of hi-tech enterprises.

For the modern Avenue, the headquarters building has invested a lot of manpower and material resources, but has become a company's heart.

When last year announced the sale of the headquarters building, the modern Avenue had said that the building was completed in November 2017, and the company moved to the office in the same year. However, due to the large scale of the building assets and the completion of the assets, the new office space and the depreciation cost of the office space were relatively high, which was not conducive to enhancing the company's continued profitability.

At that time, in an interview with reporters, modern manager Li Fei also said: "at present, many office areas of the company headquarters building are temporarily idle, and the company is trying to rent, but because of the slow development in the Guangzhou Development Zone, the property fees and other expenses will be generated, which will form a certain burden on the company."

The listed company said that after the completion of the transaction, it will help further revitalize the existing assets of the company, improve the efficiency of the company's assets, and ensure that the company's funds are actively used for production and operation activities. The company expects to achieve a profit of about 10 million yuan ~3000 million.

Statistics show that in 2018, the net profit of modern Avenue was only 27 million 854 thousand and 700 yuan; in the first quarter of this year, the net profit of the company was 37 million 559 thousand and 300 yuan. If the transaction can be successfully completed, the performance of the company will be improved to a certain extent. However, due to the approval of the shareholders' meeting, it is still uncertain whether the profits will be included in the 2019 profit.

The bad news is that the modern Avenue indicates that the transaction may cause the income of the company's high-tech products to be less than 60%, resulting in the company losing the qualification of high-tech enterprises.