Sunac is no longer what it used to be.

Mingwei Longjun is one of the most famous uncompleted residential building projects in Nanchang, Jiangxi Province. Meanwhile, it has also been left unfinished for the longest time.

On January 8, 2010, a company whose actual controllers were the couple Wan Baojin and Deng Dongmei acquired a 32-mu residential land plot in Xihu District, Nanchang at a price of 7.01 million yuan per mu. With the momentum of being the first land king of the year from the first land auction at the start of the year, it kicked off the vigorous price surge era of Nanchang's property market.

However, for various reasons, Mingwei Longjun itself turned into an uncompleted building project, and has been left unfinished for 10 straight years.

Mingwei Longjun Source: Internet

In 2018, the project equity of Mingwei Longjun was transferred to China Great Wall Asset Management — at least five years earlier than the centralized entry of AMC into the real estate sector to take over uncompleted properties.

After Great Wall Asset took over, the project still failed to start smoothly. Until May 2025, the project that had been renamed Mingwei Longjun International launched a tendering for entrusted construction and consignment sales services.

Three enterprises participated in this tendering: Greentown Management, Cifi Management, and Erjin Management. After the bid opening, the three parties submitted the same quotation, and Erjin Management finally won the project.

On the same day of the bid opening, an industrial and commercial registration change took place for Erjin Management: the enterprise name was changed from "Rongzhe Gongchuang Construction Management Group Co., Ltd." to "Erjin Construction Management Group Co., Ltd."

"Rongzhe Gongchuang" is a name that has been in use for a long time. It has two more characters than "Sunac", and it is a brand dedicated to the entrusted construction business established by Sunac around the time when it formally encountered debt risks.

Sunac's entrusted construction business was originally planned to be launched within the listed system, but due to some special considerations, this business was eventually led by Wang Peng, the former head of Sunac's Southeast Region, separated from the listed system for independent development, and became the current Erjin Management.

Over the past few years, Erjin Management and the entrusted construction businesses led by various regional teams within Sunac have been developing independently of each other without substantial business overlap. However, there are inevitably countless subtle connections behind the scenes: the core team of Erjin Management comes from Sunac, and behind the Mingwei Longjun International project won in Nanchang, Jiangxi, the project shareholder Great Wall Asset is also an "old friend" of Sunac.

In terms of equity relationship, Sun Hongbin is also one of the shareholders of Erjin Management. After equity penetration, the equity structure of Erjin Management is as follows: Wang Peng holds 65%, Sun Hongbin indirectly controls 25%, and other natural persons hold 10%.

Therefore, many people in the industry believe that Erjin Management is another backdoor reserved by Sun Hongbin, just like Sunac was actually the backdoor left by Sunco back in the days.

But this time, Sunac is in a different situation.

On the evening of August 24, Sunac released an announcement: it will acquire 100% equity of Erjin Management.

The author learned that after the transaction is completed, Erjin Management will become a segment under Sunac's real estate development business, reporting directly to Zhang Qiang, the executive president in charge of the group's real estate business. Erjin Management will still maintain an independent team and enjoy relatively large autonomy.

The total consideration for this transaction is 123 million yuan. After the acquisition is completed, Erjin Management will become a wholly-owned subsidiary of Sunac. However, Sunac will not pay in cash, but complete the transaction by issuing 260.26 million new shares.

Recently, Sunac has been using equity as a bargaining chip to carry out major adjustments. Earlier, Sunac also announced a super-large-scale equity incentive plan: zero-price additional issuance of new shares to 439 core backbones, with the total upper limit not exceeding 7% of the diluted share capital. The total number of granted shares is expected to reach about 1.85 billion shares.

After the completion of debt restructuring, Sunac, which is still short of funds, is mobilizing all resources to stabilize its situation.

Sunac's official statement said that the acquisition of Erjin Management is a strategic transformation, which establishes a new strategic blueprint of "asset management + asset operation". "Sunac will further clarify the promotion of the transformation of its real estate business in the future, upgrading from the traditional integrated model of investment and development to two independent business segments of asset management and project construction & operation management, which will expand market-oriented businesses independently while supporting and coordinating development with each other."

The "return" of Erjin Management is regarded as good news. According to Sunac's announcement, as of now, Erjin Management's projects are distributed in regions including Zhejiang, Anhui, Fujian, Shanghai, Jiangsu, etc, with a total of 73 projects obtained and a total contractual floor area of about 8.34 million square meters. In the increasingly competitive entrusted construction sector, Erjin Management is not developing very fast, but is taking steady steps.

In addition, Erjin Management is profitable. Its after-tax profit in 2025 is about 25 million yuan. Although the figure is not large, its significance to Sunac goes far beyond the capital aspect.

Data Information

However, after a series of moves, the equity of Sunac's shareholders has been continuously diluted. Including Sun Hongbin himself, after three rounds of dilution from overseas debt-to-equity swap, equity incentive additional issuance, and the additional issuance for acquiring Erjin Management, his shareholding has dropped from nearly 50% before the crisis to around 27%. According to the bottom constraint set in the debt restructuring agreement that the shareholding ratio shall not be lower than 23%, there is little room left for operation on the equity level in the future.

This article is from the WeChat Official Account "Future Can Dwell", the author is Xiaowu Jiandawu, and it is published with authorization from 36Kr.