How much money can Yang Huiyan, who smashes the pot and sells iron to support Country Garden, come u

Mondo Education Updated on 2024-01-30

Yang Huiyan promised at Country Garden's monthly management meeting that she would fully support Country Garden even if she smashed the pot and sold iron. So, how much "pot" and "iron" can the Yang family come up with to support the company? According to the data of Hurun's 2023 100 rich list, the total wealth of the Yang family is 48 billion yuan. However, due to the decline in the share price of Country Garden and its affiliates, the Yang family's fortune has shrunk. The stock prices of the two listed companies, Country Garden and Country Garden Services, have increased by 0HK$14 and HK$248 Hong Kong dollars, resulting in a loss of more than 5 billion Hong Kong dollars in the wealth of the Yang family. Therefore, at present, the Yang family can support Country Garden at most, which is more than 30 billion yuan.

As one of the heads of Country Garden, Yang Huiyan's support for the company is very important. However, although smashing the pot and selling iron is a figurative statement, in fact, the wealth of the Yang family cannot be fully converted into cash to support the company. According to the wealth data, we can see the proportion of the Yang family's shareholding in the equity of Country Garden's listed companies, as well as the decline of ***, and we can speculate the possible amount of support. The reason for *** can be the company's poor performance, poor market environment and other reasons, in this case it is difficult to put it at the market price. Therefore, although Yang Huiyan expressed her willingness to fully support Country Garden, the amount of money she can come up with is actually limited.

Country Garden has faced huge financial challenges in recent years, with a loss of nearly 50 billion yuan in the first half of the year and an annual loss of more than 55 billion yuan. According to the 2023 interim report, Country Garden's debts and accounts payable need to be repaid totaling 551.1 billion yuan, while its cash and receivables totaling only 453.2 billion yuan, a difference of nearly 100 billion yuan between the two. Even considering that this is not all cash outflow, but includes factors such as asset impairment losses, it still cannot avoid the financial difficulties faced by Country Garden.

Financial status is crucial for a business, especially for an industry like the real estate industry, which requires a lot of capital flow and support. Country Garden's financial pressure is mainly due to its huge losses and the huge amount of debt and accounts payable that needs to be repaid. The disparity between cash and receivables has further exacerbated the company's woes. Under such circumstances, Country Garden needs to alleviate the financial pressure through various means, including finding new financing channels and disposing of assets. However, these methods are not the fundamental solution to the problem, and the key is to restore the "hematopoietic capacity" of the enterprise, that is, to increase cash inflows by restoring sales, improving product quality, etc.

Not only Country Garden, but the entire real estate industry is facing huge challenges. The price of housing and land has led to asset impairment losses, which has aggravated the financial difficulties of enterprises. And the recovery of housing prices is crucial for real estate companies such as Country Garden, which determines the growth of sales and the profitability of enterprises. Recently, the Suzhou Housing and Urban-Rural Development Bureau expressed its support for real estate companies to reduce prices**, which may become a lifesaver for Country Garden. However, there is still uncertainty about whether it will be replicated by other cities.

The real estate industry is an industry closely related to the national economy, and Country Garden, as one of the leading enterprises in the real estate industry, is closely related to the entire industry in its future development. However, in recent years, the regulation and control policies of the property market have had a great impact on real estate enterprises, which in turn has also affected the development of Country Garden. The ** of housing prices and land prices leads to the risk of impairment losses of corporate assets, which makes enterprises face financial pressure. The recovery of housing prices is the key to whether companies can achieve sales growth and profitability improvement. As a result, real estate companies such as Country Garden need to find new ways to boost sales and increase cash inflows. Lowering prices by real estate companies** is considered a possible solution, but it is uncertain whether it will be supported and emulated by other cities.

By analyzing the possible amount of support for Country Garden that Yang Huiyan said she would "smash the pot and sell iron", and combined with the financial difficulties faced by Country Garden and the challenges of the real estate industry, we can draw the following conclusions:

First of all, although the "pot" and "iron" held by the Yang family have reached more than 40 billion yuan, because the main wealth of the Yang family is the equity of listed companies, not cash, the actual amount that can be taken out to support Country Garden is limited, only about 30 billion yuan.

Secondly, Country Garden is facing huge financial pressure, with a loss of more than 50 billion yuan in the first half of last year, and a total of more than 55 billion yuan in addition to the loss for the whole of this year. At the same time, Country Garden also had to repay huge debts and accounts payable, making its financial situation very difficult. Yang Huiyan's support, while important, does not solve the critical problem of the company's financial woes.

Finally, the real estate industry, as an industry closely related to the national economy, is facing challenges from the external environment and policies. The recovery in house prices is crucial for companies such as Country Garden, which need to increase sales and cash inflows through price cuts** and other means. However, there is still uncertainty about whether it will be able to gain support and emulate from other cities.

To sum up, Yang Huiyan's support is significant, but in the face of Country Garden's financial difficulties and the challenges of the real estate industry, more efforts and innovation are needed to solve the problem. The key to surviving the crisis is to restore the "hematopoietic capacity" of the enterprise, that is, to increase cash inflow by resuming sales and improving product quality. The above is a personal opinion and is for reference only.

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