As the second generation of Country Garden, Yang Huiyan has invested great enthusiasm and support for the development of the company. However, the wealth of the Yang family is not endless, and there are certain limits to the "pot" and "iron" they can use to support the company. According to the Hurun 2023 100 Rich List, the total wealth of the Yang family is 48 billion yuan. However, due to the adjustment of the domestic real estate industry and the stock price of two listed companies, the wealth of the Yang family has shrunk significantly in a short period of time.
In the case of Country Garden, its share price was 089 Hong Kong dollars, and now it is only 0HK$75. Yang Huiyan holds 145 through a wholly-owned subsidiary, Bisheng***400 million shares of Country Garden, and this share price** caused her wealth to lose 20HK$3.6 billion. In addition, Yang Huiyan and her husband's shares in Country Garden Services have also increased by 248 Hong Kong dollars, resulting in a loss of 30 of their wealthHK$2.2 billion.
In other words, the Yang family currently holds a wealth of about 40 billion yuan. However, it is impossible to really smash the pot and sell iron, and cash out the 40 billion yuan. Because the main form of wealth of the Yang family is the equity of listed companies, a large number of **shares will lead to the stock price**, even at the market price**, it is already very good to be able to take the order at 20% off the market price. Therefore, the Yang family may be able to support Country Garden at most about 30 billion yuan.
Country Garden's financial situation in recent years has not been optimistic. According to the 2023 interim report, Country Garden Group lost 489 percent in the first half of this year300 million yuan, plus 60 percent of the annual loss in 2022500 million yuan, a total loss of 549 in a year and a half800 million yuan.
However, not all of these losses were cash outflows, mainly due to asset impairment losses due to the increase in house prices and land prices. Despite this, Country Garden's financial position remains worrisome, especially in the short term.
According to the interim data, Country Garden's US dollar bonds, corporate bonds, bank loans, and accounts payable due within one year totaled 551.1 billion yuan, while cash and receivables were only 453.2 billion yuan, with a gap of nearly 100 billion yuan. The wealth held by the Yang family could not fill such a huge gap.
Although the wealth owned by the Yang family can support Country Garden to a certain extent, it cannot completely solve the financial problems faced by Country Garden, whether it is smashing the pot and selling iron or other means.
In fact, for real estate companies such as Country Garden, Evergrande and Vanke, the most important thing is to restore their own "hematopoietic capacity", that is, to ensure that they can sell real estate. Businesses can't just rely on blood transfusions to stay afloat, they need to continue to create value and make a profit.
At present, the recovery of the property market is crucial for real estate companies such as Country Garden, and housing prices are the key factor determining whether the transaction volume can recover. Recently, the Suzhou Housing and Urban-Rural Development Bureau said that it is inappropriate not to allow the sale of houses at a reduced price, which means that real estate developers may solve the problem of broken capital chain by reducing prices**. Suzhou could become the first city in the country to publicly support reduced** housing, and it remains to be seen whether other cities will follow suit. For companies like Country Garden, this could be the last straw.
Overall, the Yang family's wealth of about 40 billion yuan is able to provide some support to Country Garden, but it cannot solve all the financial problems faced by the company. Although the statement of smashing the pot and selling iron is not a true situation in the literal sense, the Yang family cannot use all their family resources to help the company. For real estate companies such as Country Garden, the most important thing is to restore their own development capabilities, that is, to achieve profitability by recovering property market transactions and increasing housing prices, so as to get out of trouble.
Therefore, in the short term, the Yang family's wealth of 40 billion yuan can support Country Garden to a certain extent, but it cannot solve all the company's financial problems. In the long run, Country Garden needs to restore its hematopoietic capacity, that is, create marketable houses, in order to truly achieve sustainable development. Finally, we look forward to Country Garden and the entire real estate industry successfully overcoming difficulties and achieving stable and sustainable development.