2023 will be a turbulent year for my country’s real estate industry. Factors such as policy regulation, market changes, and debt crises have caused many real estate companies to find themselves in trouble. In the changing background, real estate characters also have completely different destinies.
This year, some people have been arrested for nearly 90 days and are in many crises; some people broke off their arms at the last moment to survive and win a glimmer of life; some people retreated behind the scenes to realize the handover between the old and the new; some people died suddenly without fulfilling their ambitions; and some people died suddenly. Take the initiative to cut salaries and "sell the pot" to support the company...
The Real Estate News Department of the Beijing News takes stock of ten people who will have a major impact on the real estate industry in 2023. Through the lives of these people, we can not only see the changes in the industry, but also perhaps Get a glimpse of future trends.
1, Xu Jiayin was arrested
Xu Jiayin, chairman of the board of directors of China Evergrande, has been subject to compulsory measures in accordance with the law on suspicion of illegal crimes. File picture
Since 2023, Xu Jiayin’s popularity has remained high. From assets of hundreds of billions to corporate debts as high as trillions, it has staged a business drama of ups and downs.
Since the outbreak of Evergrande’s debt crisis, Xu Jiayin has experienced the coldest “winter” since starting his business. On September 28, 2023, China Evergrande issued an announcement stating that Xu Jiayin, the company’s executive director and chairman of the board of directors, has been subject to compulsory measures in accordance with the law due to suspicion of illegal crimes. The news shocked society and caused Evergrande's stock price and bonds to collapse.
In the eyes of industry insiders, Xu Jiayin’s downfall is inevitable. He acquired land, built houses, and sold houses through large-scale leverage, large-scale debt borrowing, and large-scale expansion, pushing Evergrande's scale and market value to the peak. However, this approach also brought huge risks to Evergrande, especially the "three After the introduction of the "red line" policy, Evergrande's capital chain was severely strained. Evergrande not only faces a default of hundreds of billions of debts, but is also suspected of illegal fund-raising, investor fraud, tax evasion and other criminal activities, triggering investigations and regulatory intervention.
It is worth mentioning that in order to avoid bankruptcy and liquidation, Evergrande initiated overseas debt restructuring very early and issued a proposed overseas debt restructuring announcement in March 2023. However, coercive measures were taken against Xu Jiayin, which brought variables to the ongoing debt restructuring of Evergrande. To this day, Evergrande has still not seen a turnaround. However, the hearing of Evergrande’s liquidation petition was postponed to January 29, 2024, which gave Evergrande a temporary breather.
comments: The reason why Evergrande fell, a lot of the key to success or failure lies with Xu Jiayin. The Evergrande lightning incident is by no means just a matter for one company. It is a huge lesson for the entire real estate industry and even the Chinese economy.
2, Wang Jianlin's breakthrough
listing, debt, and gambling agreement are the three big mountains that Wang Jianlin is weighing on this year. 2023 is the third year that Zhuhai Wanda Commercial Management has impacted Hong Kong stock IPOs. On June 28, Zhuhai Wanda Commercial Management submitted a prospectus for the fourth time, which also expired on December 28.
Under financial pressure, since 2023, Wang Jianlin has even sold out Wanda Film’s controlling shareholder, Beijing Wanda Investment Co., Ltd., and transferred it to Shanghai Ruyi Investment Management Co., Ltd.
In addition, in May 2023, Wanda sold Shanghai Songjiang Wanda Plaza, Xining Haihu Wanda Plaza, and Jiangmen Taishan Wanda Plaza to Everyone Insurance. In October, Dajia Insurance once again acquired Shanghai Zhoupu Wanda Plaza. At the critical moment from
to the end of 2023, Wang Jianlin won a glimmer of hope with the help of his friends in his "circle of friends". On December 12, PAG Investment Group and Dalian Wanda Commercial Management Group jointly announced the signing of a new investment agreement. PAG Investment Group will join other investors to reinvest in Zhuhai Wanda Commercial Management after its investment redemption period expires in 2021, which Wanda Commercial Management has redeemed. This gives Wanda a temporary sigh of relief.
Comment: Wanda’s series of actions show Wang Jianlin’s attitude of doing everything he can to protect operations and avoid thunderstorms in the face of external pressure and business difficulties.
3, Yu Liang speaks out
Vanke Chairman Yu Liang’s words are often interpreted as a benchmark for industry development. Data picture
Vanke has been the industry leader for many years, and its helmsman has naturally become a recognized "big brother" in the industry. The words of Vanke Chairman Yu Liang are often interpreted as a benchmark for industry development.From setting the tone for the "Silver Age" and focusing on "management dividends" to "surviving", Vanke continues to adopt a forward-looking attitude in times of crisis.
Since the second half of 2023, Yu Liang’s thinking has been very clear in the face of the complex industry situation. On the afternoon of October 20, Vanke held a media exchange meeting. Regarding the current real estate policy and market, Yu Liang still adheres to his previous point of view: "There is pressure in the short term, but confidence in the long term."
Yu Liang said that real estate itself will generate upward repair power. The more severe the compression, the greater the rebound. Although policies are not omnipotent, they are certainly useful. The market has improved, which is a result of the synergy between market repair and policy adjustments.
Regarding the current stage of the property market, Yu Liang gave his own judgment: "The pain of the industry is longer and more painful than I expected. It is not over yet. The current state is a bit like hitting the wall in a marathon. Once you get through it, run away." It's gone."
When talking about how companies can go through cycles, Yu Liang also said, borrowing a sentence from Haier, there is no successful company, only the company of the times can be more successful by adapting to the changes of the times and doing what the times need. We must develop simultaneously with customers and the city.
comments: Yu Liang’s words about how companies go through cycles are not only applicable to Vanke, but also to other companies in the industry.
4, Sun Hongbin returns from the bloody journey
Since Sunac was out of danger in 2022, Sun Hongbin, who used to be lively, humorous and frequently famous, has rarely appeared in public. In 2023, as the real estate market is expected to improve and a number of favorable policies are implemented, some insurance real estate companies, including Sunac, will speed up the introduction of debt reduction plans. At the end of March, Sun Hongbin once again spoke in front of the public: on the one hand, he summarized and reflected and apologized to investors again, on the other hand, he also conveyed to the outside world the confidence that the company can resume normal operations.
On November 20, Sunac China announced that all conditions for its overseas debt restructuring had been met and it officially came into effect on that day. This means that the 18-month overseas debt restructuring of Sunac was officially declared successful, and Sunac became the first large real estate company to complete all processes of domestic and overseas debt restructuring.
Prior to this, Sun Hongbin traveled among institutions and partners to mediate, trying to get Sunac out of the predicament. At the same time, in order to solve the cash flow problem, Sun Hongbin did not hesitate to sell projects in first-tier cities such as Shanghai and Shenzhen at discounts in exchange for working capital. Judging from the results, his efforts were not in vain. He solved the debt problem hanging over Sunac and won three years of breathing space.
With the completion of the restructuring of all domestic and overseas public market debts, Sunac China has fully resolved approximately 90 billion yuan of debt risk, and its operating fundamentals have also ushered in an opportunity for a comprehensive improvement. Next, Sun Hongbin can go into battle lightly and focus more on operations, because the core of improving corporate operations lies on the sales side. The key is to repair the basic market and rely on sales returns to restore the company's own "blood-making ability."
comments: has been in trouble for 18 months. Sun Hongbin finally led Sunac to complete the debt restructuring, providing a sample of "bloody rebirth" for the real estate industry.
5, Ling Ke resigns
The sudden resignation of Ling Ke, the first-generation real estate tycoon and founder of Gemdale Group, has added waves to the already restless real estate industry.
On October 16, 2023, Gemdale Group issued an announcement stating that Ling Ke applied to resign as the company's director, chairman and member of the board's strategy committee due to physical reasons, and that the company's director and president Huang Juncan would assume the role of chairman of the company on his behalf.
The reason why Gemdale Group has always maintained rationality and stability is closely related to the experience and character of its leader, Ling Ke. Ling Ke, who was born in 1959, joined Gemdale Group from Gemdale Trading in 1992 and successively served as deputy general manager and general manager of the group. In 1998, he became the chairman of Gemdale Group. Ling Ke has been in charge of Gemdale Group for 25 years, leading the company from Futian, Shenzhen to the whole country, and experiencing many important milestones such as Gemdale's listing, the golden era of "recruitment and insurance", and sales exceeding 100 billion. He is one of the main founders of Gemdale and its most important iconic figure.
At the 2022 Annual Shareholders Meeting held by Gemdale Group, Ling Ke once said that in the face of the shrinkage in transactions and investments caused by the national real estate industry entering a period of deep adjustment, Gemdale had noticed it as early as the second half of 2021 and made timely decisions. Change. "We have taken the initiative to increase revenue and reduce expenditure, and have done two things. One is to increase sales; the other is to control expenditures, including controlling land investment and construction expenditures."
Now, Ling Ke has ushered in the final chapter of his story in Gemdale, and Whether Huang Juncan, like Ling Ke, can lead Jindi through the cycle again, the answer needs to be given to time.
comments: As the soul figure of Gemdale since its founding, Ling Ke has profoundly influenced Gemdale’s style and temperament. As the industry entered a period of downward transformation, Ling Ke and other "creative generations" got tired and retired.
6. Yang Huiyan "sold the pot"
In December 2023, Yang Huiyan and other four directors of Country Garden took the initiative to cut their salaries to overcome the difficulties together with the company. File picture
Country Garden has been in the spotlight since it fell into debt trouble. On December 8, 2023, at the monthly management meeting held by Country Garden Group, Yang Huiyan said: "The family will definitely sell everything to support the company." After this voice came out, it immediately aroused great concern inside and outside the industry.
It is reported that at the monthly management meeting held that day, Yang Huiyan also said that the company will have three main tasks in the next 12 months: ensuring delivery, ensuring operation and ensuring credit. In terms of ensuring delivery, delivery challenges will enter the deep water area in the next 12 months. Country Garden's delivery volume in 2024 is expected to exceed 400,000 units, which is still a huge number. In terms of maintaining operations, on the one hand we need to protect the team and on the other hand we need to protect sales. In terms of maintaining credit, "The repair of the balance sheet is very important. The path is very clear and achievable. Everyone must have the confidence to work together to seek development."
4 days later, the salary reduction for Country Garden executives was implemented. On December 12, Country Garden issued an announcement stating that based on the actual operating needs of the industry and the company, the company’s executive directors Yang Huiyan, Mo Bin, Yang Ziying and non-executive director Chen Chong took the initiative to request a salary reduction. Among them, Yang Huiyan’s annual salary was adjusted from 370,000 yuan to 120,000 yuan.
Country Garden’s high salaries for its talents have repeatedly set industry records. However, at the current moment, the executive salary reduction represents a gesture: the management and the company share the joys and sorrows, and the Yang family is willing to actively solve the problem.
comments: relies on salary cuts and reductions in administrative expenses. After all, it is still a drop in the bucket and cannot stabilize Country Garden's business situation. However, the saying of "selling the iron at the expense of others" at least illustrates Country Garden's determination to a certain extent.
7, Chen Guoxiang passed away
Chen Guoxiang, the founder of Xiangsheng Group, a "dark horse" real estate company in Zhejiang, passed away due to illness. On April 16, 2023, the official website of Xiangsheng Group published an obituary. Chen Guoxiang, the founder of Xiangsheng Industrial Group Co., Ltd., died at 00:26 on April 16 at the age of 73 due to ineffective treatment for illness.
data shows that in the 1990s, Chen Guoxiang founded Xiangsheng Group in Zhuji, Zhejiang. It is also the largest real estate developer in Zhuji. Its real estate projects are spread all over the city, so there is a saying that "one Zhuji city, half the history of Xiangsheng".
In 2014, Chen Guoxiang moved the group's headquarters to Hangzhou and established the strategic plan of "based on Hangzhou, bringing glory to Shanghai, deeply cultivating Jiangsu, Zhejiang and Anhui, and radiating across the country". In 2018, Xiangsheng Holdings achieved sales revenue of 102.9 billion yuan, breaking through the 100 billion mark for the first time and ranking among the top 30 in the country. In 2020, Xiangsheng Holdings ushered in a bright moment and was successfully listed on the Hong Kong Stock Exchange, becoming the fastest and largest real estate company to pass the hearing this year.
In March 2022, Xiangsheng Holdings failed to pay an interest payment of US$200 million as scheduled and officially declared a breach of contract. Since then, Xiangsheng Holdings has been working hard to save itself, including selling off its projects, shrinking strategies, etc., and also selling high-quality properties and health industries. However, these self-rescue actions have not yet enabled Xiangsheng Holdings to turn the corner.
While the company was still in crisis, Chen Guoxiang's death added more uncertainty to the company's future development. Currently, Xiangsheng Holdings’ 2022 annual report has not been released as scheduled, and the company’s shares are suspended.Next, whether Xiangsheng can get out of the crisis and resume normal operations under the leadership of "second generation" Chen Hongni still faces many challenges.
comments: Chen Guoxiang’s death is the sound of an era fading away. It remains to be seen where the "second generation" will take Xiangsheng after taking over, and whether it can continue the legend of the past.
8, Yao Zhenhua’s glory is no longer
No one could have imagined that a capital tycoon who had dominated the business world for decades would be surrounded by others. On July 31, 2023, the video of Yao Zhenhua being surrounded went viral on social platforms. In the video, Yao Zhenhua was chased and intercepted by a group of people, and his glasses were "knocked off."
At its peak, Baoneng was the largest shareholder of A-share companies such as CSG A, Shaoneng Group, and Nanning Department Store. In recent years, Baoneng has continued to "cut off" its shares under the debt crisis, and its shareholding ratio in the above-mentioned companies has gradually decreased. In the early days of
, Yao Zhenhua was very low-key and rarely appeared in public, until he focused on Vanke's equity, triggering the famous "Bao-Wan Controversy" in 2015. From this, Yao Zhenhua entered the public eye. In the end, this "baowanbao dispute" ended with Evergrande transferring its equity to Shenzhen Railway, and Yao Zhenhua gave up his status as Vanke's largest shareholder. Not only Vanke, at the end of 2016, Yao Zhenhua also reached out to Gree. As a result, Yao Zhenhua became the most famous capital "barbarian" at that time.
Since Baoneng Group has fallen into a deep debt crisis, many of Baoneng’s property assets have also been put on the shelves. As of December 28, 2023, according to Tianyancha, Shenzhen Baoneng Investment Group Co., Ltd. has 63 pieces of information on persons subject to execution, with a total amount of 36.209 billion yuan in execution. In addition, the company also has multiple consumption restriction orders and breach of trust. Information about the person subject to execution and the final case.
comments: Baoneng, which started out as a real estate company and is famous for its capital operation and leverage, is in its darkest moment. Can Yao Zhenhua, who is "a trapped beast still fighting", turn the situation around?
9, Zhu Rongbin returns as "Party B"
Zhu Rongbin has a new identity. On May 24, 2023, Hefu Huihuang issued a personnel change announcement stating that Zhu Rongbin was appointed as the company’s executive director and chairman of the board of directors, responsible for formulating the group’s overall development strategy and business planning. Zhu Rongbin will serve a three-year term with an annual salary of 2.16 million yuan and the right to receive discretionary bonuses of no more than 1.84 million yuan per year.
As soon as the announcement came out, it immediately caused a sensation in the industry. Zhu Rongbin is known as the "employee emperor". One of the reasons is that he has worked for many brand real estate companies, including China Overseas Real Estate, R&F Real Estate, Country Garden, Sunshine City, etc., and has held important positions. He was one of the heroes who led Country Garden to jump from RMB 100 billion to RMB 300 billion, and later took Sunshine City to a scale of RMB 200 billion in two years. He is a veritable star professional manager.
At the beginning of 2022, he chose to leave Sunshine City and start over as an "entrepreneur". His first project, "Xinhai", was launched in the Qingshui Bay plot of Agile, Hainan, and received a lot of capital support. In August of the same year, when he stood on the podium for the first time as "Chairman of Hainan Yacheng Real Estate Development Co., Ltd." he said: "We must be mentally prepared to live a hard life, lower our expectations, re-evaluate and improve our personal work capabilities, and Always maintain your passion for work."
When the outside world thought that Zhu Rongbin had embarked on a new entrepreneurial journey that was completely different from the past, he returned to his identity as a professional manager. The difference is that he moved from traditional development to an "agency platform", from a professional manager to an entrepreneur, and back to a professional manager again.
comments: ’s former “working emperor” has returned to the workplace, changing from Party A to Party B. What changes will Zhu Rongbin’s arrival bring to Hefu Brilliance? The market is full of expectations.
10, "Second Generation" Succession
Today, many of the high-spirited real estate "first generation" have been stained with frost and snow. Then, the curtain of inheritance slowly opened.
In December 2023, Sun Zheyi, the eldest son of Sunac China Chairman Sun Hongbin, took over as the president of Sunac Beijing region, and Jing Hong served as the chairman of Sunac Beijing region. Information shows that Sun Zheyi joined Sunac China in 2014 and has held different positions related to capital markets, land acquisition and project operations at Sunac China headquarters and different regional companies.In May 2017, Sun Zheyi served as executive director of the board of directors of Sunac China and entered Sunac's core senior management. Currently, Sun Zheyi serves as the company's executive director, vice president, Beijing regional president and cultural group president. He is mainly responsible for the overall operation and management of the cultural group.
Coincidentally, on September 12, Ronshine Services announced that Ou Zonghong had resigned as chairman of the board of directors in order to focus on other business work. At the same time, Ou Guofei was appointed as the new chairman of the board of directors, with an annual salary of HK$500,000. Information shows that Ou Guofei is the son of Ou Zonghong. He has been managing business in Ronshine since 2015. He was responsible for Ronshine’s financing work and also took charge of the Shanghai-Suzhou regional company where Ronshine made heavy bets. The fact that Ou Guofei has taken over as chairman of the board of directors of Ronshine Services this time means that he is gradually approaching the peak of Ronshine’s power.
However, during the deep adjustment of the real estate cycle, the "second generation of real estate" may be the group of people who are under the greatest pressure. They urgently need to find a new growth curve and lead the company through transformation, which is undoubtedly more challenging than what their fathers did.
comments: How the "second generation" of real estate can take up the baton from their parents and open up a new path in the ever-changing market will be one of the most noteworthy topics in the industry in the future.
Beijing News reporter Zhang Xiaolan
editor Wu Xin proofreader Zhao Lin
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