Core Viewpoint - *ST Jinke has undergone a significant restructuring process, resulting in a change of control from Jinke Holdings to new investors, marking a pivotal moment in the company's history and the broader real estate industry [1][5][6]. Group 1: Restructuring Details - On September 22, *ST Jinke announced the transfer of 3 billion shares to restructuring investors, changing its controlling shareholder to Jingyu Xingzhu and Jingyu Xingcan, with no actual controller [1]. - The restructuring plan, approved in May, involves a debt scale of 147 billion yuan, making it the largest restructuring case in the real estate sector to date [1][7]. - The restructuring investors include Shanghai Pinqi Consortium, China Great Wall Asset, and Sichuan Development Securities Fund, who will become the new controlling shareholders and implement comprehensive adjustments to the company [6][8]. Group 2: Historical Context - Founded in 1998, Jinke quickly grew to become the largest real estate company in Southwest China, achieving sales of 184 billion yuan in 2021 [3]. - The company faced a debt crisis at the end of 2022, leading to its decision to enter restructuring as a solution to its financial problems [5][9]. - Jinke became the first large-scale national listed real estate company in A-shares to enter restructuring, highlighting its significance in the industry [5][7]. Group 3: Management Changes - The upcoming board of directors' election will allow the Shanghai Pinqi Consortium to nominate seven board members, indicating a shift in governance [1][10]. - Founder Huang Hongyun, who has led the company for 27 years, is likely to lose control, marking a significant transition in leadership [1][9]. - The existing management team, appointed by Huang, has maintained stability during the crisis, which may influence the restructuring's success [9][10].

Core Viewpoint - *ST Jinke (formerly Jinke Co., Ltd.) has made substantial progress in its bankruptcy restructuring, becoming the first large-scale listed real estate company in China to successfully shed its historical burdens through judicial reorganization, supported by a combination of quality capital, central enterprise AMC, and local state-owned enterprises [2][6][9]* Restructuring Plan Execution - The company announced a capital reserve increase to equity, converting every 10 shares into 10 shares, resulting in an expected increase of 5.294 billion shares, aimed at attracting restructuring investors and repaying debts [2][3] - The restructuring plan includes two main uses for the new shares: 30 billion shares for introducing restructuring investors, with 12 billion shares allocated to industrial investors and 18 billion shares to financial investors, and 22.94 billion shares for debt repayment to ordinary creditors [3][4] Innovative Restructuring Framework - The restructuring framework, termed "1+1+N," involves the main company and a core subsidiary entering restructuring, with additional subsidiaries potentially undergoing restructuring as needed, providing a clear path for Jinke's reorganization [6][9] - The restructuring process has been characterized by a collaborative effort among various stakeholders, including the local government and financial institutions, to address the complex debt and equity relationships [6][10] Debt Repayment and Investor Protection - The restructuring plan has significantly improved the repayment rate for ordinary creditors, increasing the recovery rate by approximately 20 percentage points compared to a bankruptcy liquidation scenario, thereby protecting the interests of small creditors [8][9] - The plan aims to balance the interests of various stakeholders while preserving the operational value of the company [8] Future Outlook for Jinke - Post-restructuring, Jinke aims to transition from risk mitigation to industry revitalization, focusing on enhancing its operational capabilities and integrating existing resources [11] - The company is expected to maintain a balance between short-term debt resolution and long-term value creation, with an emphasis on revitalizing its existing land and resources [11]

Core Viewpoint - *ST Jinke (000656) is undergoing a significant restructuring process, marking the largest scale of corporate restructuring in the real estate industry, involving a debt of 147 billion and over 8,400 creditors [1][3]. Group 1: Restructuring Plan - Jinke plans to adjust equity through a capital reserve increase, distributing 5.294 billion shares to introduce restructuring investors and repay debts [1][2]. - The share distribution includes 3 billion shares for attracting restructuring investors and 2.294 billion shares for direct debt repayment [2]. - The restructuring investors are categorized into industrial and financial investors, with specific allocations and lock-up periods for each [2][4]. Group 2: Financial Performance and Future Plans - Jinke's half-year report indicated a significant decline in revenue and costs, with a year-on-year decrease of 85.28% and 84.33% respectively [5]. - The company aims to complete all project deliveries by 2025 and restore normal operations by 2026, while also pursuing new development strategies [5][6]. Group 3: Role of Longcheng Asset Management - Longcheng Asset Management has played a crucial role in the restructuring process, providing both industrial and financial support, and facilitating complex risk resolution [3][4][5]. - The company has successfully acquired 1.4 billion in non-performing debts from banks, aiding in the financial risk resolution [5]. - Longcheng's innovative restructuring approach has been recognized as a model for addressing risks in large-scale real estate companies [6][7]. Group 4: Industry Implications - The restructuring of Jinke is seen as a pioneering case in the real estate sector, potentially offering a replicable model for other companies facing similar challenges [6][8]. - The involvement of asset management companies (AMCs) has become increasingly significant in resolving financial risks within the real estate market, with a focus on optimizing resource allocation and enhancing asset quality [8][9].