According to multiple reports, at the internal monthly management meeting on December 8, Country Garden (02007Hong Kong) chairman of the board of directors Yang Huiyan said that the company's main work in the next 12 months will focus on three aspects: ensuring delivery, maintaining operational stability and maintaining credit.
At the meeting, Country Garden claimed that as of the first 11 months of this year, Country Garden Group had successfully delivered about 500,000 houses, with a total delivery area of 60.43 million square meters, spanning 31 provinces and 240 cities.
Its delivery volume once again firmly occupies the first place in the industry, far ahead of its peers. Among them, some projects in Shandong, Shanxi, Jiangsu, Anhui and Guangxi were delivered ahead of schedule, while projects in Hebei, Hubei and Hunan were all delivered on schedule, successfully achieving the annual target.
Country Garden claims to have taken a number of measures to save itself. As of 2023, the Group is making every effort to reduce administrative expenses, which have been significantly reduced by nearly 60% compared to 2021.
As the controlling shareholder, the Yang Huiyan family fully provides financial support for the company. Since its listing, they have provided a total of about HK $41 billion in financial support through borrowing, increasing their holdings, purchasing bonds, and substituting interest on **, and have never provided financial support
Recently, Country Garden Group's management and finance department conducted a sensitivity simulation analysis of the extreme situations that the company may face. Yang Huiyan mentioned in the introduction that under the condition of conservative calculation, as long as the company's inventory assets are sold normally, even if there is no land purchase, no tax reduction, and no new contribution of one body and two wings is not considered, Country Garden will still maintain positive assets in the next ten years.
Yang Huiyan said that after completing this sensitivity analysis, she is confident that the company will repair its balance sheet: "The repair of the balance sheet is crucial, the path is very clear and achievable. We should work together, maintain confidence, and seek common success for the development of the company. ”
from"Insurers"to"Restore yourself to becoming a model company as soon as possible"This process is a complex challenge that requires systematic management and comprehensive improvement, which is essential for:Country Garden Group has a long way to go.
The root causes of existing problems in real estate companies involve multiple aspects, and these problems are often complex and interrelated. Fluctuations in the economic cycle, adjustments in macroeconomic policies and instability in market demand may have a negative impact on the real estate market.
The current financing environment, the rise in financing costs or the limitation of financing channels will inevitably lead to a shortage of funds and affect the company's project promotion and development plans
Over-leverage is prevalent in the up-stage real estate sector, and these over-reliance on debt financing can put companies under repayment pressure, especially in a high-interest rate environment or when the market is volatile.
There is also the issue of land bank quality, in the context of the crazy real estate in previous years, poor land bank quality, for example, poor location, lack of market demand, etc., can lead to low returns and difficult sales of projects. In addition, the real estate industry is directly affected by the local ** policy and regulatory environment, and policy changes may cause uncertainty to the company's operations and project progress.
It is obvious that the sales cycle of real estate projects is long, especially when the market is sluggish, resulting in slow capital turnover and extended profit cycle. In today's highly competitive real estate industry, excessive competition may lead to a squeeze on project profits and make it difficult to maintain profitability.
There is also the problem of partial mismanagement of enterprises, which is also explained by the 60% reduction in administrative costsCountry Garden GroupExtensive management upfront can lead to project delays, cost overruns, and untimely response to market changes. In addition, the positioning of the department's real estate projects, as well as the inaccuracy of market demand changes, which may lead to an imbalance between product supply and demand, and the inability of the project to quickly adapt to market changes, will be the core problems that Yang Huiyan must solve.
How do you set up a dedicated team to deal with urgent issues and develop a recovery plan?How do you appoint an experienced leader who can make decisions quickly to lead this team?
How do I develop a detailed emergency plan, including specific goals, timelines, and who is responsible?How can the emergency plan be implemented in phases to ensure that every step is carried out in an orderly manner?
How can management and operations be improved?How can you re-evaluate your company's management structure and processes to ensure it is ready for the challenges ahead?How can effective monitoring and evaluation mechanisms be introduced to quickly identify and resolve issues?
How to rebuild credibility?How do you implement a transparent and honest communication strategy to explain to shareholders, employees, customers, and other stakeholders the cause of the problem and the company's plan for improvement
How can you take positive steps to demonstrate your company's responsibility and commitment?
How to strengthen team training?How can training be provided to improve the skill level of employees and ensure that they are up to the task of taking on new challenges?How to build a Xi culture and encourage employees to actively participate in training and self-improvement?
How to optimize products and services?How to analyze market demand, reposition or optimize the company's products and services?How to pay attention to customer feedback and continuously improve to meet customer expectations?
How to implement financial soundness?How to ensure the soundness of the company's financial position and formulate a reasonable financial plan and risk management strategy?How can I find financial support to ensure that there is sufficient capital for the recovery and development of my business?
How to build a long-term development strategy?How do you create a long-term development plan that takes into account market trends and future changes?How to find new growth points to ensure that the company remains competitive in a competitive market?
How do you establish a monitoring mechanism to regularly assess the company's progress and adjust the plan as needed?How do you stay flexible and adapt to changes in the market and industry?
Of course, in the end, it is hoped that through comprehensive efforts and wise decision-making, Mr. Yang Huiyan will quickly recover Country Garden from a state of danger and eventually become a model company. Believe in the power of believing!