From 2014, the overseas Chinese town, which transformed from "Wen Lu + real estate" to "culture + tourism + urbanization", "tourism + Internet + finance", has gradually fallen into the dilemma of "returning blood" in the recent years.
Under the pinch of "internal and external troubles" such as mode failure, rising debt ratio, shrinking real estate sales scale, changing market demand, and competitors catching up with and surpassing, OCT is losing its leading position and starting to move forward in the fog. Before transferring the shares of Kunming Overseas Chinese City Investment Co., Ltd., the Overseas Chinese City announced in September that it would transfer more than 90% of the shares of Xiangyang's subsidiary companies and 51% of the shares of Yunnan Yunnan Yunnan Yunnan Chinese Investment Company, an indirect subsidiary.
Yunnan is called "the second headquarters and main battlefield" by Duan Xiannian, chairman of Oct. From the high-profile announcement in 2017 to the launch of the "Yunnan General War" in 2018 and then to the first anniversary of the "Yunnan General War" in 2019, the Overseas Chinese Town has signed nearly 100 projects in Yunnan with various parties, with a total investment of more than 190 billion yuan, and the commitment to invest 200 billion yuan during the 135-year plan is about to be completed.
In response to the media, OCT said that due to the large investment and long cycle of cultural tourism projects, enterprises need local governments to match certain other resources to compensate for the balance of input and output, but the local governments often only want enterprises to invest, and the matching of resources is inadequate.
On the one hand, the demand for land for cultural and tourism projects is large and there are many types of land, and all kinds of project land need to be planned uniformly before the purpose of project development and operation can be achieved. However, due to the limitation of construction land indicators, some local governments are unable to provide project land according to project investment and construction progress. After supplying part of the land by stages, the land for follow-up projects can not be guaranteed to be provided smoothly.
On the other hand, due to financial difficulties, some local governments in Yunnan have insufficient investment in supporting infrastructure. Enterprises have the problem of undertaking too much investment in infrastructure when they invest in projects, which results in too much pressure on their operation.
After the model transformation, two major changes have gradually taken place in OCT: first, the scale of real estate business has been in place, and the ranking of the industry has been declining. Second, the investment in cultural tourism industry continues to increase. A senior official inside the OCT disclosed that the annual investment of OCT in the cultural tourism sector is about 100 billion yuan. But in reality, the actual investment is much higher than that.
In recent years, domestic theme parks have the trend that the latter is in the first place, while overseas Chinese theme parks are difficult to make innovative breakthroughs, resulting in their proud integrated tourism business gradually showing fatigue. Since 2015, nearly half of the theme parks in OCT have experienced a continuous decline in the number of visitors and ticket revenue. This is undoubtedly worse for OCT.
After the strategic transformation is not as expected, it is not difficult to understand that OCT began to implement a series of self-rescue measures. On the one hand, strengthening repayment and improving turnover efficiency, frequent disposal of assets is one of the means. On the other hand, the scale of investment should be controlled to avoid the continuous increase of interest-bearing liabilities due to the excessive growth of investment.
At the same time, from 2019 to now, OCT has successively seized such cultural tourism projects as Dongguan Daojiao, Tianjin Xinmao Hangzhou Town, Xiaomo Wenlu Town in Shenshan Cooperation Zone, Baishuizhai in Zengcheng, Guangzhou, etc. The layout area shows a trend of returning to the first and second lines.