Vanke has been classified as a state-owned housing enterprise in Shenzhen.

[Observer Network Synthesis] According to the interface news reported on March 28, the dust finally settled after a year and a half of Vanke’s equity war, and Vanke has now been classified as a state-owned real estate enterprise in Shenzhen.

Vanke President Yu Liang

Recently, the State-owned Assets Supervision and Administration Commission of Shenzhen held a working meeting for the principals of enterprises directly under its control and listed companies under its control. Members of the leadership team of Shenzhen State-owned Assets Supervision and Administration Commission (SASAC), principals of directly-managed enterprises and their subordinate listed companies, Vanke, Cinda Property Insurance and Tianyin Holdings attended the meeting.

The principals of Vanke, Cinda Property Insurance and Tianyin Holdings, three newly-joined state-owned enterprises in Shenzhen, shared their experiences in the process of enterprise growth. The convening of this meeting means that Vanke has been classified as a state-owned housing enterprise in Shenzhen.

According to the Securities Times, in January this year, Shenzhen Metro Group, a subsidiary of Shenzhen State-owned Assets Supervision and Administration Commission, took over 15.31% of Vanke’s shares from China Resources Group, a central enterprise. Since then, on March 16th, he took over the voting rights of 14.07% shares of Vanke held by Evergrande, and became the shareholder with the most voting rights of Vanke.

Shenzhen Metro has previously indicated that it will not rule out continuing to increase its shareholding in Vanke in the next year. From Shenzhen Metro Group’s strong entry into Vanke, it strives to lead the solution to the "dispute between Bao and Wan". At the moment when the board of directors of Vanke is about to change, Shenzhen Metro is considered to lead the Vanke equity event to be finally resolved reasonably.

According to Phoenix Finance, after Shenzhen Railway became the largest shareholder of Vanke, the election of the new board of directors of Vanke became a new focus. On March 27th, at Vanke’s performance briefing, the media raced to ask when the board of directors would be elected. Zhu Xu, the secretary-general of Vanke, replied: "We are actively planning the change plan, and we will start the change as soon as it is mature."

According to Article 45 of the Company Law, if a director fails to be re-elected in time upon the expiration of his term of office, or if a director resigns during his term of office, the number of members of the board of directors is less than the quorum, the original director shall still perform his duties as a director in accordance with laws, administrative regulations and the articles of association before the re-elected director takes office. This means that Vanke will continue to perform its duties after the expiration of the current board of directors.

The media almost unanimously believe that the delay in the change of Vanke’s board of directors lies in the fact that the new shareholder Shenzhen Metro has no right to nominate board members for the time being.

But in any case, Shenzhen Metro already owns 29.38% of Vanke’s shares, including voting rights, proposal rights and the right to attend the shareholders’ meeting. Even without nomination qualification, Shenzhen Metro can still influence the composition of the board of directors to a great extent.

The dispute over Vanke’s equity has a long history, and the ownership of the company’s control right is far more eye-catching than its operating performance. At present, the change of the board of directors is the biggest uncertainty of Vanke, because among the board of directors, the seats finally determined by the shareholders of all parties and the will of the shareholders they represent will undoubtedly affect the future development of Vanke.

Site map of Vanke annual performance promotion meeting

In addition, the Securities Times also said that at the performance briefing on the 27th, Yu Liang smiled and replied: "This question is too anxious. It is unhealthy to ask health before the child is born. I don’t think it is necessary to respond to many gossip rumors on the Internet."

Regarding the reporter’s questioning about the reasons for the "overdue service" of the current board of directors, Zhu Xu explained that the postponement of the board of directors of listed companies is not a case. From 2016 to now, more than 150 listed companies have postponed the re-election, and the postponement of the re-election is not an accurate time point.

When talking about Shenzhen Metro and China Resources, Vanke’s management said that China Resources, as a shareholder, has provided important support to Vanke over the past decade, and Shenzhen Metro will also support Vanke to continue its stable and healthy development.

"Shenzhen Metro has become the cornerstone shareholder of Vanke, which is something we are very happy to see." Yu Liang believes that the so-called cornerstone shareholders refer to shareholders who have played an important and fundamental role in the stable development of the company. In the past ten years, China Resources Group has played a very good role as the cornerstone shareholder of Vanke. For example, in Vanke’s early financing activities, China Resources Group provided practical support; At the time of Vanke’s share-trading reform, China Resources Group, as a state-owned shareholder, also fulfilled the responsibility of share-trading reform.

Yu Liang said: "Although China Resources Group sold its shares to Shenzhen Metro this year, we still want to thank China Resources Group for its support to Vanke in the past ten years, which enabled Vanke to achieve rapid development in the golden age of real estate."

"For Shenzhen Metro, it is now the cornerstone shareholder of Vanke. We have also seen that Shenzhen Metro Group supports Vanke’s urban supporting service provider strategy and business partner mechanism, supports Vanke’s mixed ownership structure, and supports Vanke’s stable and healthy development." Yu Liang said that the "four supports" have fully demonstrated the role of cornerstone shareholders.

Yu Liang said that there was no consensus on the previous plan of issuing shares to purchase assets, but he was glad to see that Shenzhen Metro and China Resources had completed the equity conversion through the principle of marketization, making Shenzhen Metro the cornerstone shareholder of Vanke. Vanke has cooperated with Shenzhen Metro before. The "track+property" model is a very optimistic model for Vanke. In the future, we will continue to explore this plan and solve the business cooperation between the two parties in a market-oriented way.