Scattered Long Rental Apartments "Ice And Fire" Industry To Accelerate The Survival Of The Fittest

Two days of ice and fire. On the other hand, in the eastern time of the United States in November 5th, the QK officially landed on the Nasdaq, and the share price continued to rise. The eggshell apartment also submitted the F-1 prospectus to the US Securities and Exchange Commission (SEC) in the near future. It intends to carry out the initial public offering (IPO). On the other hand, recently, the source of Shanghai's high-end high-end dispersive long rental apartment was plunged into operation disputes.

A fact is that in the past year, there have been problems in the operation of the long rental apartments, such as "see", "le gal" and so on. In November 7th, Hu Jinghui, chief economist of Jing Hui think tank, told reporters in an interview with twenty-first Century economic report that the long rental apartment industry has low access threshold, the use of funds to precipitate and expand, and the problem of excessive leverage. The industry's capital operation mode does not match the domestic capital market attributes. The industry urgently needs legislative supervision and a better industry operation criterion.

However, there is also a different view from Hu Jinghui in the industry. In November 8th, at the CEO annual meeting of the third brand apartment in East China 2019, Fang Dongdong founder Quan Lei pointed out that the long rental apartment industry began to change in 2018, first of all, the outbreak of light assets, followed by the divestiture of long rental apartment buildings from the real estate system, because there has been no good profit model so far. Once again, the state has introduced a lot of good policies to the industry, which has prompted the birth of the first apartment of the long rental apartment, which will lead to the optimization and upgrading of the whole industry's product line and structure, including the improvement of the whole industrial chain.

Operating worries of Yuan Lai

According to Yuan Lai's former employees, since August this year, Yuan Lai international has already been unable to pay part of its employees' wages, resulting in employees leaving their jobs one after another, and has applied for labor arbitration in succession.

The original employees of Yuan Lai international have received the award issued by relevant departments in October 29th, demanding that Yuan Lai international pay the arrears of wages within 7 days, but it has also been in arrears. According to some owners, Yuan Lai international customer service staff have appease the owners on the phone and promise that the rent will arrive, but so far no cash has been delivered. Sun Yuanyuan, the international legal representative of Yuan Lai, also does not shy away from home visits, but also reveals that the team is facing financial problems, but insists that it has been seeking solutions.

Qi Xinbao was informed by reporters that in 2013, Sun Yuanyuan registered Shanghai yuan Lai Industrial Co., Ltd. (referred to as "Yuan Lai Industrial") and registered as a legal representative, and also a major shareholder, with a personal shareholding ratio of 35.52%.

The comprehensive letter and other third party business information platform show that there are seven risks in Yuan Lai international, including enforcement by courts, pledge of shares and mortgage of real estate, because of failing to fulfill legal obligations in time. Beginning in October 2019, Yuan Lai industry was bursting with tax arrears, involving about 280 thousand yuan.

There is no lack of fund behind yuan Lai. From the shareholder structure of Shanghai Yuen Lai industry, we can see that the shareholding ratio of Shanghai Chuang Chuang Huai Yuan investment partnership (limited partnership) is 20.17%, and its Executive Hong Yi Shi is also a director of Yuen Lai industries. In addition, the shareholding ratio of Shanghai Rong Yin Investment Co., Ltd. is 14%, and the shareholding ratio of Shanghai Chao Han apartment management center (limited partnership) is 24.55%.

Industry accelerated shuffle

Based on the analysis of the company's employees and insiders, the main reasons for the operation dispute are many aspects. First of all, the slowdown in macroeconomic growth has led to a decrease in the number of tenants from middle and high-end long rental apartments. The issue of Yuan Lai international reflects the change of the high-end luxury market in Shanghai. Data from Shanghai Central Plains show that this year there have been a significant decline in the rent level of many high-end apartments, such as the golden Bella dimension of Gubei plate. In July this year, the rent level was 160 yuan / square meter / month, 171 yuan / square meter / month in the same period last year. Paris garden last July was 136 yuan / square meter / month, July this year, 110 yuan / square meter / month.

Secondly, Yuan Lai international's own operational capability needs to be improved. Once the market situation is bad and the rent is declining, the rent delivery contract signed with the owners is difficult to adjust quickly in the short term.

Thirdly, in the expansion process of Yuan Lai international, internal management problems continue to emerge. For example, from the contract signed between the international source and the owner from the reporter, the industry mainly gives the trustee company a 3 month rent free period, during which it is used for decoration. However, according to some owners, Yuan Lai international has not actually decorated its premises, but has moved some furniture and added some soft clothes.

Qing Ke apartment CEO Jin Guangjie pointed out that the development of long rental apartments in China is less than 10 years. In this process, the replacement of enterprises and "going in and out" is a normal phenomenon. He briefly summarized the development of scattered long rental apartments in the country: for example, most of the scattered long rental apartments are profitable, and losses are often non cash losses. For example, the first year rent of an apartment has a profit of 30%. According to the current market estimate, it should be profitable, but the losses caused by four aspects, such as R & D, interest, advertising expenses and accounting standards, can not be covered by scattered long rental apartments.

He believes that the long rental apartment investment funds must be "long", it is only appropriate to take their own funds to do, rent loans are no problem, but once the operator to expand the room for the purpose of usury and other funds will easily be a problem.

Jin Guangjie disclosed that in view of the current risk of the long rental apartment on the market, he also suggested a solution to the relevant departments: in the process of solving the fund problems, the tenant can continue to live. Finally, the landlord can choose the decoration provided by the previous operator.

His logic is that at present, some operators who are not professional enough have not agreed on the three party risk when signing the contract with the owners. When the market is down, the vacancy rate of long rental apartments will also increase. Most operators do not understand the risk commitments regulations in the terms, and the emergence of financial problems will be very passive.

As early as in 2018, the Qing Ke apartment said in a preplan on the disposal of business failures: "long rental apartment enterprises, though not directly related to bankruptcy and bankruptcy in all kinds of legal sense, may result in the closure and bankruptcy of long rental apartment enterprises due to the withdrawal of rent, the withdrawal of deposit exceeding a certain proportion, and the suspension of lending by various financial institutions." Therefore, it is necessary for the operator to agree with the owner and tenant in the process of signing the contract.