At Sunac's half-year results conference on August 30, Chairman Sun Hongbin was absent for the first time. He said he had other important matters to attend. Half a month later, important matters surfaced. Sun Hongbin once again made a large-scale acquisition, and the target was Legend Holdings, which had been entangled with him for more than 20 years.

On September 18, Sunac China and Legend Holdings jointly announced that Sunac China and Legend Holdings’ subsidiary Raycom Intelligent Land signed two framework agreements on September 16. Sunac intends to acquire the relevant equity and debt rights of 41 target companies of Legend Holdings. These target companies mainly own The interests in 42 property projects, with a total consideration of approximately 13.78 billion yuan, are located in 16 cities including Beijing, Tianjin, Chongqing, and Hangzhou, with a total area of approximately 6.93 million square meters, a total construction area of approximately 18.02 million square meters, and an unsold area of approximately 7.3 million square meters.

After the transaction is completed, Legend Holdings' Beijing Ronggan, Beijing Rongguan, Raycom New Landmark and First Pacific Raycom will become associate companies of Sunac China, and the other target companies will also become subsidiaries of Sunac China.

The acquisition of 41 companies for 13.7 billion yuan has also become Sunac’s largest acquisition to date.

For Sunac, most of the property projects it acquires are located in second-tier cities with greater strength and potential, which is consistent with its strategy of deeply exploring first- and second-tier cities. Sunac said in its announcement: "This transaction will further consolidate Sunac Group's regional layout and expand Sunac Group's land reserve and market share in first- and second-tier core cities."

At this year's semi-annual results meeting, Sunac's executive director and CEO Wang Mengde raised the full-year sales target to 110 billion yuan. This large-scale acquisition will undoubtedly add ammunition to Sunac's future expansion.

As the main platform for Lenovo's real estate business, Raycom Intelligent Land used to be positioned as "small but beautiful" and developed in a low-key but rapid manner in the real estate industry. From the beginning, it only tried to develop office buildings. In 2003, it began to enter the residential development field in Beijing, Tianjin and other areas. In 2004, it announced the end of its three-year trial in the office market. In 2005, Raycom Intelligent Land first proposed a listing plan, and in 2008 it announced that it would enter the listing process.

However, as Legend Holdings finalized its overall listing plan, Raycom Intelligent Land was included in the listing asset package as a core asset, and the listing plan of Raycom Intelligent Land was forced to be interrupted. In order to boost the listing valuation of Legend Holdings, Raycom Intelligent began to adjust its business pace in 2010, changing its previous "small but beautiful" policy and seeking large-scale expansion.

However, since 2012, the company has been unable to achieve a breakthrough in sales scale, with sales revenue fluctuating around 10 billion yuan, unable to play the role of a "first-level rocket" as Liu Chuanzhi calls it. And as the project sales period ended, profits fell sharply, and its land bank could not support its expansion. As of September 30, 2015, Raycom Intelligent Land's remaining land bank covered an area of only 4.4414 million square meters.

The real estate business was not improving, so Liu Chuanzhi tried to seek a breakthrough through personnel adjustments and bond issuance.

In November 2015, Liu Chuanzhi dismissed the entire president office of Raycom Intelligent Land, including Chen Guodong, the president who led the growth of Raycom Intelligent Land and was known as the "Lenovo Real Estate Marshal". He was replaced by Zheng Zhigang, the former executive vice president of Raycom Intelligent Land.

Liu Chuanzhi once pointed out at the meeting on personnel changes: "Rongke Intelligent Land could have developed freely and become a leader in China's real estate industry, creating huge returns for shareholders, but there was a considerable gap between the requirements of holding a controlling stake." ”

On February 17 this year, Legend Holdings announced that its subsidiary Raycom Real Estate plans to apply to the China Securities Regulatory Commission for the issuance of Raycom Real Estate's 2016 corporate bonds with a cumulative face value of no more than 2.5 billion yuan, and Raycom Real Estate's 2016 private placement bonds with a cumulative face value of no more than 5 billion yuan.

However, judging from the current situation, the 7.5 billion yuan in financing and the "appointment of new officials" have not given Liu Chuanzhi confidence.

Its announcement shows that Lenovo hopes to withdraw from the real estate business, so as to realize the assets invested in the real estate development business at once and strengthen the overall liquidity and financial position. After exiting the real estate development business, Legend Holdings will focus on investment and development in domestic and foreign financial services, medical services, agriculture and food innovative consumption and other fields, thereby increasing Legend Holdings' overall returns and creating greater value opportunities for Legend Holdings shareholders.

For Sun Hongbin and Liu Chuanzhi, the two focal points in the business world, this merger is not just a business transaction. Behind it lies the grudges and entanglements between the two people for more than 20 years.

In 1989, Lenovo established an enterprise department, and 25-year-old Sun Hongbin was appointed as the enterprise department manager. Liu Chuanzhi's high regard for Sun Hongbin was obvious. Because he had a serious conflict with the business department veteran in charge of supply, Liu Chuanzhi removed him without mercy and merged the two departments under Sun Hongbin's management.

However, the once powerful Sun Hongbin gradually began to escape Liu Chuanzhi's control. Not only that, Sun Hongbin even set up a financial system outside Lenovo. Liu Chuanzhi had no choice but to use judicial means to send Sun Hongbin to prison. In 1992, Sun Hongbin was sentenced to five years in prison by a Beijing court after refusing to plead guilty. At this time, Sun's first child was just two months old.

After being released from prison, Sun Hongbin approached Liu Chuanzhi in 1994 and expressed his intention to enter the real estate industry. At that time, he told his friends: "If you can't get over it, I will kill Liu Chuanzhi with a knife when I get out. But if you carry a knife, no one will dare to deal with you, and you will never have any chance in this life." But if you can separate this matter, what else can't be separated? So you have to be able to paddle. ”

Liu Chuanzhi directly gave him the first capital to start his business. Not only that, he also joined forces with Zhou Xiaoning, chairman of Zhongke Company, to support Sun Hongbin and establish Tianjin Zhongke Lenovo Real Estate Development Co., Ltd. Even in October 2002, Sunchi and Raycom Intelligent Land jointly established a company.

22 years after being released from prison, Sun Hongbin finally completed his revenge on his former mentor and "enemy" Liu Chuanzhi by swallowing Lenovo Real Estate Company in one breath.