At the end of the year, real estate companies were particularly busy.
Yesterday's real estate industry, there are several major events worth paying attention to. First, Country Garden's senior executives collectively cut their salaries, from 3 million to 120,000 yuan at mostThe white knight appeared, and the gambling crisis of Wanda Commercial Management was resolvedIn the first auction after the cancellation of the price limit in Hangzhou, the enthusiasm of real estate companies was high, and Greentown, Longfor, Weixing and other companies were busy sweeping goods at the end of the year. In short, real estate companies in crisis should pay close attention to solving the short-term liquidity crisis;Real estate companies that are operating normally still do not give up any good opportunities in the land market at the end of the year.
Country Garden: Senior executives collectively cut their salaries significantly
On the evening of December 12, Country Garden announced that the company's executive directors Yang Huiyan, Mo Bin, Yang Ziying and non-executive director Chen Chong took the initiative to request a reduction in salary, and signed a supplementary agreement on director services and a supplementary appointment letter with the company on November 1, 2023.
According to the announcement, Yang Huiyan, Mo Bin, Yang Ziying and Chen Chong's adjusted annual salary is 120,000 yuan, compared with 370,000 yuan, 3 million yuan, 2 million yuan and 370,000 yuan respectively. Country Garden said that the company is actively taking self-help measures, doing its best to open up sources and reduce expenditure, reduce expenses, and concentrate resources to ensure delivery. The Group has made several adjustments to executive compensation in the past two yearsBy 2023, executive compensation will be down 86% from 2021These executives include the vice president of the company's headquarters, the general manager of the functional center and above, and the regional president. At the same time, Country Garden revealed,The company has cancelled all executive car allocationsWhen there is a need for work, the company can achieve intensive control and cost reduction of vehicle expenses by applying for official dispatch or using its own car, and revitalize the assets of all group buses, including the former executives' car allocation, through internal public bidding and external labor to offset debts. In addition, treatments such as reimbursement of medical examinations for senior executives and free canteens for senior executives have also been abolished. At the monthly management meeting held on December 8, Country Garden said that in the face of unprecedented difficulties, Country Garden has also promoted a number of self-help measures. In 2023, the Group made every effort to reduce administrative expenses, which were significantly reduced by nearly 60% compared to 2021. In addition, the Yang Huiyan family, as the controlling shareholder, has fully provided financial support for the company, and has supported a total of about HK $41 billion through borrowing, increasing holdings**, purchasing bonds, and paying dividends on behalf of shares"The family will definitely sell iron to support the company, and the company will try to explore an effective path to resume normal operations as soon as possible. ”Ensuring delivery is Country Garden's most important task at present. In the first 11 months of this year, Country Garden has delivered more than 500,000 houses, with a cumulative delivery area of 60.43 million square meters, involving 31 provinces and 240 cities. Located in the first place in the industry. At the monthly management meeting, Yang Huiyan revealed that in the next 12 months, the delivery challenge will enter the deep water area, and the delivery volume of Country Garden is expected to exceed 400,000 units in 2024, which is still huge. At the same time, Country Garden is doing its best to avoid defaulting on its debts. On December 13, Country Garden's bonds "22 Bidi 02" and "22 Bidi 03" will pay interest. Both bonds are issued with a tenor of 1+1 years, with the option of the issuer to adjust the coupon rate at the end of the first year and the option to sell back to investors. According to ** reports, "22 Bidi 02" and its credit protection certificate investors symposium was recently held, the symposium aims to arrange debt repayment funds and risk mitigation with the participating institutions** issuers. Relevant institutions jointly create credit protection certificates to provide credit protection for the "22 Bidi 02" issued by Country Garden Real Estate Group. Comments:Turn passivity into initiative, and turn grief and anger into strength.
Wanda: The white knight appeared, and the gambling crisis was resolved
Zhuhai Wanda Commercial Management's gambling pressure near the end of the year has basically been eliminated.
On December 12, PAG and Dalian Wanda Commercial Management Group jointly announced the signing of a new investment agreement. PAG will join other investors to reinvest in Zhuhai Wanda Commercial Management after redemption by Dalian Wanda Commercial Management Group at the end of its 2021 redemption period. In August 2021, the existing investors invested approximately RMB38 billion in Zhuhai Wanda Commercial Management, of which PAG invested approximately US$2.8 billion (approximately RMB18 billion), and the existing investors have redemption rights at maturity in the original investment arrangement. In order to gain more "breathing time", Wang Jianlin also took out more than 30% of the equity of Zhuhai Wanda Commercial Management to get the support of investors. At present, Dalian Wanda Commercial Management holds 7015% stake, after the signing of the new investment agreement, Dalian Wanda Commercial Management's shareholding will be reduced to 40%, becoming the single largest shareholder, and several existing and new investor shareholders such as PAG will participate in the investment, holding a total of 60% of the shares. In addition, for new listings, VAM agreements will no longer be set up for new investments. However, the agreement does not specify whether there are currently any investors exiting, which new investors will enter, and when the new agreed listing period will be. Following the "goodbye" to Wanda Movies and the loss of the dominant position of the actual controller,This time the new agreementIt is also seen as Wang Jianlin's self-helpVeryImportantofOne-step. The sale of Wanda Plaza has also become a measure for Wang Jianlin to save himself. On December 7, according to surging news reports, Zhuhai Wanda Commercial Management recently revealed in the process of communicating with investors that Wanda Group intends to locate Wanda Plaza in a first- and second-tier city in exchange for liquidity, and is currently negotiating with insurance institutions, but Wanda did not disclose which insurance institution it contacted. "Since the beginning of this year, Wanda has built at least 5 Wanda Plazas. Including the end of September, Wanda transferred its Guangxi Beihai Hepu Wanda Plaza to Beihai local real estate company Hepu Wanghe Real Estate;In October, Wanda Commercial Management transferred 100% of the equity of Shanghai Wanda Plaza Real Estate, and the receiver was Everyone's Life Insurance. Li Yujia, chief researcher of the Guangdong Provincial Housing Policy Research Center, pointed out that the root cause of Wanda's "selling, selling, selling" is that it has overweight assets and a declining ability to create cash flow. Comments:"Nothing", "Waiting", "Friends", "Borrow from the Sky for Another 500 Years", the songs sung by Wang Jianlin in those years tell the difficulty of the road. Also, today's resumption of trading of Wanda Films has a one-word limit, and the actual controller has become Ke Liming.
Longfor, Weixing, and Greentown are busy sweeping goods
After the cancellation of the maximum price limit, the first land auction in Hangzhou, real estate companies actively took land. Greentown became the biggest winner of this land auction, including the joint land acquisition, with a total of 741.4 billion yuan to acquire four land parcels;Longfor with 26A plot of land was won at a reserve price of 5.3 billion yuanIn recent years, the "dark horse" Weixing real estate has developed very vigorously with 125.3 billion yuan, premium 97% won a plot.
The competition between Hangzhou market, Greentown and Binjiang has always been fierceAmong the top 10 land acquisitions in Hangzhou from January to November, Binjiang ranked first with 17.9 billion yuan in land acquisition, followed by Greentown, with 14.4 billion yuan. Greentown, founded in Hangzhou, has taken a heavy position in the Yangtze River Delta. According to the data of the China Index Institute, in terms of the amount of land acquired by each urban agglomeration, the Yangtze River Delta region leads the country. From January to November 2023, the top 10 enterprises in the Yangtze River Delta will acquire 268 billion yuan of land, ranking first among the four major urban agglomerations. Among them, Greentown China has acquired 44 billion yuan of land, ranking first in the Yangtze River Delta enterprise land acquisition amount. According to Greentown's financial report, as of June 30, 2023, Greentown has 44.55 million square meters of land reserves, with the Yangtze River Delta accounting for 47%, while the Hangzhou market has 505 land reserves980,000 square meters, accounting for 11 percent of the total land reserves4%。Weixing Real Estate is really a dark horse in the real estate list. In the top 10 list of land acquisition in Hangzhou from January to November, Weixing Real Estate is also listed, ranking 8th with 4.5 billion yuan of land acquisition. From January to November, Weixing Real Estate ranked 18th in the list of top 100 real estate enterprises with 12.8 billion yuan of equity land acquisition, and was the only three private enterprises in the top 20, the other two being Binjiang and Longhu. In 2022, the company has acquired the most land since its establishment, winning 20 land plots with a total amount of 24.3 billion yuan. Since the beginning of this year, Weixing real estate has also made frequent moves in key cities, in addition to the land just obtained in Hangzhou, in April and August this year, Weixing real estate in Hangzhou was 99.7 billion and 157.8 billion yuan **, bidding for Xiaoshan Yiqiao Town and Binjiang District Puyan unit plot. In March this year, Weixing also spent 3.1 billion yuan to win a plot of land in Jianye District, NanjingThe plot 4The floor price of 320,000 square meters is the highest land price in Nanjing in the past seven years, and it is also the second highest floor price in the history of Nanjing's land market. Longfor has continued to acquire land in high-energy cities this year. In November, Longfor auctioned a parcel of land in Chengdu, Guiyang and Quanzhou within a month, and was one of the few real estate companies that was still actively storing land. Up to now, Longfor has acquired about 30 plots of land this year, mainly in first-tier and strong second-tier cities such as Shenzhen, Shanghai, Guangzhou, Chengdu, Hangzhou, and Suzhou. Comments:From January to November this year, the proportion of second-hand housing transactions in the country reached 371%, a record high, there are already 7 provinces and municipalities directly under the central government in the country second-hand residential transactions exceeded the new commercial residential transactions. The pressure is on the new house!
** Economic Work Conference Signal
*The Economic Work Conference was held in Beijing on December 11-12 to set the tone for economic work in 2024. There are mainly 6 new formulations that release different signals:
We must take adhering to high-quality development as the last word in the new era;We must take the promotion of Chinese-style modernization as the biggest politics, and next year we must persist in seeking progress while maintaining stability, promoting stability through progress, establishing first and then breaking down, incorporating non-economic policies into the macroeconomic policy orientation, assessing the consistency, developing new quality productive forces, stimulating potential consumption, and expanding productive investment.
The description about real estate is:Continue to effectively prevent and resolve risks in key areas. It is necessary to coordinate and resolve risks such as real estate, local debts, and small and medium-sized financial institutions, severely crack down on illegal financial activities, and resolutely adhere to the bottom line of preventing systemic risks. Actively and prudently resolve real estate risks, meet the reasonable financing needs of real estate enterprises with different ownership systems without discrimination, and promote the steady and healthy development of the real estate market. Accelerate the construction of affordable housing, the construction of public infrastructure for both ordinary and emergency purposes, and the transformation of urban villages. Improve relevant basic systems and accelerate the construction of a new model of real estate development. To coordinate the resolution of local debt risks and stable development, major economic provinces should truly take the lead and make greater contributions to stabilizing the national economy. To sum up, the main keywords are: reducing risks and building new models. This is also the focus of real estate work next year. At the 2023-2024 China Economic Annual Conference held today, Dong Jianguo, Vice Minister of the Ministry of Housing and Urban-Rural Development, said that in view of the risk of debt default of some real estate enterprises, the financial management department has issued a series of support policies, but the risk clearance still needs a processSupport real estate enterprises with tight capital chains to solve the problem of short-term cash flow constraints, promote its resumption of normal operations, and resolutely prevent the risk of debt default from breaking out. Dong Jianguo also said that enterprises that are insolvent and lose their ability to operate as a result of violations of laws and regulations should be cleared up in accordance with the principles of legalization and marketization, and this is also the result of the survival of the fittest in the market. We have noticed that for a period of time, the society has called the debt default of some real estate companies "thunder" and "capital chain break", and its terminology is inaccurate. The structure of the real estate enterprise is generally the group company and the project company, the group company and the project company are independent legal persons, and the default of the debt of the group company does not mean that the project company has ceased to operate, and the development and operation of the project continues. For example, a large real estate company defaulted on its debts in the first half of last year, but from January to November this year, the company still achieved nearly 80 billion yuan in sales revenue and completed debt restructuring. Comments:It is different from the common saying that "seeking progress in stability" and "not breaking and not standing" illustrate the importance of "progress" and "establishment", and highlight the innovation, pragmatism and concreteness of the path.