"Waterproof Leader" Beijing Oriental Yuhong Waterproof Technology (002271.SZ) has crossed into another industry, taking over a landmark hotel in Chengdu from Sun Hongbin.

The landmark hotel in Chengdu, which failed to sell twice, has successfully changed hands. On November 12th, it was reported that the Chengdu Paradise InterContinental Hotel, owned by Sunac Group, had been transferred to Beijing Oriental Yuhong Waterproof Technology in the form of debt-to-equity swap. An insider confirmed to reporters that the news was true, and the Chengdu Paradise InterContinental Hotel is now owned by Beijing Oriental Yuhong Waterproof Technology. Public information shows that the Chengdu Paradise InterContinental Hotel is an asset under Global Sunac Exhibition, Culture, and Tourism Group. The Global Sunac Exhibition, Culture, and Tourism Group is a subsidiary of Sunac, with Sunac Southwest Holding 51.65% of the shares and Deng Hong, Chairman of Global Sunac Exhibition, Culture, and Tourism Group holding 23.03% personally. The Chengdu Paradise InterContinental Hotel was purchased by Sunac from Yunnan Metropolitan Real Estate Development in 2019. According to a public announcement by Sunac on November 27, 2019, it acquired 51% of the equity of Global Century and Times Global (the target company) held by Yunnan Metropolitan Real Estate Development Group for 15.269 billion yuan. After the transaction was completed, Global Century and Times Global became an indirect subsidiary of Sunac and was reorganized and renamed as Global Sunac Exhibition, Culture, and Tourism Group. The transaction involved 18 projects in cities such as Chengdu, Wuhan, Changsha, Kunming, including the Chengdu Paradise InterContinental Hotel. As Sunac faced financial difficulties, the Chengdu Paradise InterContinental Hotel was put up for auction and failed to sell twice. The first auction took place on January 25th to 26th, 2024. Beijing Second Intermediate People's Court auctioned a part of the property at 1700 North Tianfu Avenue, Chengdu High-tech Zone on the JD Judicial Auction Platform. The building area of the property was approximately 115,000 square meters, with a starting price of 1.15 billion yuan, which is 71.5% of the assessed value of 1.609 billion yuan. As there were no bidders, the property failed to sell at the first auction. It was put up for auction again on February 26th, with a reduced starting price of 1 billion yuan. However, despite the lower starting price, there were still no buyers, and it failed to sell again. Subsequently, according to a ruling of debt-to-equity swap issued by Beijing Second Intermediate People's Court on March 26, 2024, the "above-mentioned land use rights and corresponding rights of the superstructure shall be transferred to Beijing Oriental Yuhong Waterproof Technology when this ruling is delivered." After two failed auctions, the Chengdu Paradise InterContinental Hotel eventually transferred ownership to Beijing Oriental Yuhong Waterproof Technology in the form of debt-to-equity swap. Public information shows that the total building area of the Chengdu Paradise InterContinental Hotel is 105,000 square meters, making it the largest five-star luxury hotel in Chengdu. Its operating income in the past five years was approximately 190 million yuan, with an owner assessment profit of 50 million yuan. Currently, the hotel is operating normally with a lease term until 2041. It is worth noting that on November 4th, the Chengdu Paradise InterContinental Hotel was still soliciting parties interested in taking over, and the bidding process was being handled by the Shenzhen United Property Exchange. Industry insiders believe that Beijing Oriental Yuhong Waterproof Technology may continue to transfer the asset in the future. Beijing Oriental Yuhong Waterproof Technology, the new owner of the project mentioned above, is known as the "king of waterproofing" in the market and had already entered the real estate market in 2020. The company made appearances in the land market. According to incomplete statistics, in August 2020, Beijing Oriental Yuhong Waterproof Technology, together with Aoyuan Group, won a residential land parcel in Zhongxin Town, Zengcheng District, Guangzhou, for about 800 million yuan, with Beijing Oriental Yuhong Waterproof Technology holding about 20%. In April 2021, Beijing Oriental Yuhong Waterproof Technology acquired a commercial and residential land parcel in Huadu District, Guangzhou, for about 112 million yuan through its wholly-owned subsidiary Guangzhou Beijing Oriental Yuhong Waterproof Technology Property. In October 2023, the company won a residential land project in Nanyuan, Fengtai District, Beijing, for 4.0135 billion yuan, but sold it for 475,000 yuan less than a month later, attracting public attention. Financial reports show that Beijing Oriental Yuhong Waterproof Technology achieved operating income of 21.699 billion yuan in the first three quarters of this year, a decrease of 14.44% year-on-year; and a net profit attributable to shareholders of the listed company of 1.277 billion yuan, a decrease of 45.73% year-on-year. This article is reprinted from Cailianshe, edited by Chen Wenfang.