Author丨Wu Shuying.
Editor丨Luo Yifan.
Figure source丨Figure worm.
As 2024 approaches, Zhang Li, co-chairman of R&F Properties, suddenly announced his resignation.
On the evening of December 29, 2023, R&F Properties announced that due to the need to invest more time and energy in other matters, Zhang Zhang has resigned as the company's director and chief executive officer since December 29, 2023.
R&F said in the announcement that as the co-founder of the company, Zhang Li has played an important role in managing the company for nearly 30 years and has laid an important foundation for the group. The Board would like to express its sincere gratitude to Zhang Zhang for his valuable contributions to the Company during his tenure as an Executive Director and Chief Executive Officer of the Company.
This is considered by the market to be the aftermath of the tension bribery incident. Despite resigning from his main position, Zhang Li's move is more like retreating into the background - a person familiar with the matter told the 21st Century Business Herald reporter that Zhang Zhang will still participate in the specific daily affairs of R&F as a major shareholder.
R&F is a rare "dual-boss system" in China's business community, the founders Zhang Zhang and Li Silian respectively hold about % of R&F Real Estate. In 2022, when Zhang Li was caught up in disputes over bribery, Li Silian has been active in front of the stage, and R&F Properties' debt restructuring has also been led by him.
With Zhang Zhang stepping down as president, the identity and power structure of the two founders of R&F Properties may be reshaped.
Divide and conquer
Due to the backgrounds of Zhang Zhang and Li Silian, in the early days of R&F's founding, the two founders had a relatively clear arrangement for the division of labor. Zhang Li and Li Silian have a clear division of labor. Zhang Li was a civil servant in Guangzhou before founding R&F, and Li Silian used to be a first-class financial practitioner.
Zhang Li's background gives him a certain advantage in land acquisition, so within R&F, Zhang Li is mainly responsible for investment, development, engineering, cost control, etcLi Silian, who graduated from the Department of Mathematics of the Chinese University of Hong Kong, is mainly responsible for corporate finance and marketing.
For a long time, due to the accelerated development of China's real estate industry, R&F Real Estate has also taken advantage of the east wind to continue to expand, and Zhang Zhang and Li Silian have maintained a good pace of cooperation. Zhang Zhang once said in public, "My partner (referring to Li Silian) and I have not blushed for ten years, and we are unique in the business world." We haven't signed a single written word between us, and we're all talking about credit. ”
Although the partnership between Zhang Zhang and Li Silian has not changed, the management styles of the two are completely different. A regional head of a real estate company who has had business cooperation with R&F told the 21st Century Business Herald reporter that Li Silian is a very regular person, and he will pay attention to details in the negotiation terms of cooperation, "But once the cooperation is finalized, Li Silian is a person who keeps his promises." ”
Some R&F employees told the 21st Century Business Herald reporter that the style of tension is "old-fashioned".However, it is humane and like "family" to the employees in the company;Li Silian is also quite easy-going, but he still has the style of a financial person.
This is an unavoidable problem of the "dual boss system". From the establishment of R&F to the present, Zhang Zhang and Li Silian are also interested. The Zhang Li family has another "business" outside - his son Zhang Liang also founded a real estate company called Shishi, which has received full help from Zhang Li.
In the prospectus at that time, Zhang Liang and Zhang Zhang provided co-guaranteed loans for the field at the end of 2017 and the end of 2018 respectively, with a limit of 504.5 billion yuan, 28500 million yuan.
All kinds of things in the past show the difference between Zhang Li and Li Silian in dealing with the world. In the past, the relationship between the two founders of R&F was able to maintain a delicate balance due to the positive market, but after the sudden accident of tension, his cooperation with Li Silian in R&F also changed.
Power tilts
In 2022, R&F successfully passed the debt restructuring at home and abroad, and was the first real estate company to complete this task. Li Silian is responsible for R&F's finances, and he has been in a front-stage and investor communication role for many years, which is also considered to be led by him.
During this time, Zhang Li was in prison.
On December 12, 2022, market sources reported that Zhang Zhang was accused of bribery in the United States. R&F then issued a statement on *** saying that Zhang Zhang was accused of bribery for hosting a banquet in China for the former head of public works in San Francisco, USA, and providing him with hotel accommodation, and R&F is taking legal action against this false accusation.
The next day, R&F Properties issued an announcement to once again dissociate itself from the relationship, saying that it was aware of the relevant case involving director Zhang Li, and R&F Properties did not provide any bond for bail and had nothing to do with the company involved, so this case did not have any material adverse impact on R&F's operations and business.
This bribery incident finally came to an end in July 2023. On July 21, 2023, R&F announced that Zhang Zhang had signed a deferred prosecution agreement with the U.S. Attorney's Office for the Northern District of California for the alleged case. The signing of the agreement states that the charges against Zhang Li will not be convicted and will be dropped if the subsequent Zhang Li complies with the terms of the agreement.
Subsequently, Zhang Zhang also appeared in China. On July 31, 2023, the opening ceremony of Guangzhou R&F Hospital was held, which was attended by Li Silian, Chairman of R&F Group, and Zhang Li, Chairman and President of R&F Group. At this ceremony, Zhang Zhang did not speak, only appeared in the group photo session.
Since then, Zhang Zhang has also spearheaded the cooperation between R&F and China Merchants Shekou. On August 30, 2023, R&F Group South China Region and China Merchants Shekou South China Region held a signing ceremony for the strategic cooperation framework agreement at Guangzhou R&F Center. Zhang Zhang said at the meeting that R&F has great experience and advantages in urban renewal business, and will continue to accelerate the transformation and sales of related projects in 2022, hoping to achieve friendship, mutual benefit and win-win results through mutual empowerment between the two parties, and inject new impetus into the high-quality development of urban renewal.
However, after the signing of this agreement, there has been no further cooperation between the two parties. During this period, Zhang Zhang is still participating in R&F's daily work. After the resignation of the president, Zhang Zhang will not completely withdraw from the management of R&F Properties.
A person familiar with the matter told the 21st Century Business Herald reporterIn the future, Zhang Li will also participate in the company's specific affairs and daily work as a major shareholderApart from his resignation as a director and chief executive officer of the Company, his day-to-day work remains as usual and his other duties remain unchanged.
However, since R&F's current land investment has been temporarily stagnant, and Zhang Li has no advantage in the sectors it was responsible for in the past, R&F's future power structure is still worth observing.
R&F climbs
R&F, which has completed its debt restructuring, is not relieved by this.
According to R&F Properties' 2023 interim report, in the first half of 2023, R&F Properties' turnover was 1641.6 billion yuan, a year-on-year decrease of 768%；Gross profit 323.4 billion yuan, with a gross profit margin of 197%；The net loss was about 497.8 billion yuan, a decrease of 28% from the same period in 2022.
In terms of sales, according to R&F Properties, in November 2023, R&F Properties' sales revenue was about 95.4 billion yuan, with a sales area of about 6850,000 square meters;In the first 11 months of 2023, R&F Properties' total sales revenue was approximately 187800 million yuan, with a sales area of about 12750,000 square meters.
For a long time to come, R&F Properties' core work will be to ensure the delivery of buildingsBut R&F Properties still admits that there is greater pressure. R&F Properties said that due to the uncertainty of the market has adversely affected the real estate industry, its contracted sales amount has dropped significantly, in addition, the real estate industry has declined, the decline in the scale of development investment has expanded, and the properties under development are facing completion risks due to the impact of reduced sales cash flow.
In terms of delivery, R&F has not officially disclosed unified data. At R&F's semi-annual work summary meeting in 2023, Zhang Zhang said that R&F Group attaches great importance to the delivery of buildings, on the one hand, it is trying to do a good job in ensuring the project funds, and fully guarantees the project capital needs of the delivery group by strengthening the collection of spot funds and applying for bailout fundsOn the other hand, we strengthened the on-site construction organization and quality control, coordinated various resources to promote the progress of the project and the handling of procedures, and went all out to ensure the realization of the delivery commitment, so as to stabilize customer confidence and the company's reputation.
In terms of performance, R&F is still able to fulfill the corresponding public debt repayment obligations, but expects the sales market to improve as soon as possible.
R&F, which is mired in the quagmire, is still waiting for the founder's power to turn the tide.
sfc
Editor: Liu Xueying, intern: Tan Yahan.
21 Jun recommended reading
Breaking Announcement!He has resigned.
* The relevant person in charge of the finance office talks about real estate: the goal of preventing risks and stabilizing the market is completely achievable.
Banks intensively hold a symposium on real estate enterprises, what is the signal?