In 2024, CR Land will make a major organizational adjustment

Mondo Military Updated on 2024-02-06

Time flies, and the real estate market in 2023 has come to an end. China's real estate market as a whole is in a period of adjustment, and the relationship between supply and demand has also undergone profound changes. For real estate companies, while facing multiple challenges, they also usher in new development opportunities

It's the same operation every year, and it's time to take stock of the performance at the end of the yearMajor real estate companies have begun another round of organizational adjustments, so far in 2024, the major real estate companies are still not very good. Just in the past few days,Zhongnan Land, China Overseas Real Estate, and Greentown China have been intensively adjusted. Seeing the performance of this year, it is indeed miserable, and the number of cities deployed by real estate companies is decreasing year by year.

The overall market is sluggish, many cities have withdrawn one after another, and the significance of the existence of many regional platforms is not high. At present, the headquarters of the four major central enterprises are vigorously concentrating on the power of acquisition, and it is very likely that the regional platforms will be canceled in the future

Just today, China Resources Land officially announced:The strategy of regional consolidation and streamlining of regional platforms is already very clear, which is just over a year after the last major adjustment.

Consolidation of regions, streamlining of functions

The organizational change of CR Land this time is also the same as that of Greentown China a few days ago. A major organizational reshuffle has just taken place in April 2022.

One of the biggest changes is the merger and streamlining of regional functions, and major adjustments have also been made to city companies, and some cities have been merged into district companies.

Especially in East China and South China, the city adjustment is relatively largeCR Land's seven regional companies have been adjusted from 40 city companies in the early days to 32 regional companies at present

Since 2022, China Resources has redefined the positioning of organizations at all levelsIt is emphasized that in accordance with the model of "headquarters is specialized, the region is refined, and the city is practical".Promoting flat management and strengthening delegation of authority to enhance organizational efficiency are a continuation and further implementation of this model this year.

Recently, in order to better adapt to the new market environment, China Resources Land has exclusively learned that the territory of China Resources Land has also disappeared for the first time two regional companiesNorth China merged with Northeast China to form Northern Region, and West China merged with Central China to form Central China.

A few years of rapid development aheadThe Northeast region has always been one of the better areas of CR LandYou should also know that many of CR Land's current regional executives and group executives are from the Northeast region.

Whether it is residential or commercial in the Northeast region, it is an outstanding existence in the entire land system today, but the market reasonThe merger of the Northeast region of China Resources is also a strategic consensus

It should not be surprising that the Central China Region of China Resources Land has been merged this time, and it has always been a weak sense of existence in the overall Land systemIn addition, in the West China region, the Chengdu company directly topped the championship last year, and the momentum is fierce.

In terms of city companies: the Northeast Region established the Northeast Company, and the Zhengzhou Company under the Central China Region was included in the Northern RegionTianjin and Beijing, which are subsidiaries of North China, were merged into the Beijing company, and Jinan and Qingdao were merged into the Shandong company

South China is also the focus of the adjustment of city companies, and the Shenzhen region is newShenzhen company + Dongguan company was established, Guangxi company under the jurisdiction of South China region merged Shenzhen company, Foshan company merged Guangzhou company into Guangfo company

Now, from an overall point of view, after this merger, the comprehensive strength of the five regions is comparable. In the future, Hongkong Land's headquarters will also strengthen its control over the overall business, the city company will give full play to the front-line initiative.

Stabilize the top 4 and advance to the top three?

In fact, in my impression, China Resources Land is an atypical central enterprise. Whether it is from the development strength or the operational strength,CR Land has a Hong Kong-funded pedigree and core

Therefore, CR Land is still a very foreign company from the inside to the outside, especially the many urban landmark projects it has builtIt also stands out from the public's impression of residential developers

Judging from the operating data of the leading central enterprises in 2023, Jianghu is still the fourth, but the performance of its investment properties is very bright:The cumulative rental income of investment properties is 256300 million yuan, an increase of 394%

CR Land has always been a Buddhist business in the early days, and did not deliberately pursue a sharp increase in industry rankings and performance. However, since 2019,China Resources seems to have changed and is taking back its rightful place

In 2019, CR Land's full-caliber sales amounted to 243 billion yuan, ranking 10th. From 2020 to 2023, its sales amount will continue to grow, respectively:295 billion yuan, 315.8 billion yuan, 301.3 billion yuan and 307 billion yuan, ranking 9th, 8th, 4th and 4th respectively

In 2023, CR Land surpassed China Overseas Real Estate for the second time to become the "profit king" of the industryA large part of the reason behind this is that the recurring business has supported the company's fundamentals when the development and sales business is under pressure。Shopping malls, office buildings, Vientiane life, and agency construction and operation have become a force that cannot be underestimated under the China Resources system.

After the acceleration of China Resources Land, the obvious changes are reflected in many aspects. The first is the thirst for talentThe full launch of the Zhisheng plan in 2022 has basically led the talent upgrading of state-owned enterprises in the entire industry.

With the joining of outstanding talents, the second change is the comprehensive upgrade of China Resources' product system. CR Land's residential products have covered multiple product linesEspecially in the field of product improvement, there is already a trend leading the industry

In addition, the national layout of the Vientiane system has been completed, and CR Land has been reborn in terms of strategic layout, product research and development, and organizational control.

can be found,Today's China Resources is more open, inclusive and market-oriented than in the past, but also internally repeatedly proposed to comprehensively learn from Longfor and other benchmark real estate enterprises, and the strategic height of central enterprises is also reflected at this moment.

2024 is the 75th anniversary of the founding of the People's Republic of China, a crucial year for the 14th Five-Year Plan, the 30th anniversary of the founding of CR Land, and perhaps the most critical year for CR Land's continuous innovation.

2024 is likely to be an even more difficult year, whether CR Land can withstand the pressureWhether it can further advance to the top three may be the most critical year, very much looking forward to it indeed.

Summary:

fromAt the beginning of 2024, looking back at 2023, it is still chilling。This year, the sales volume of commercial housing across the country continued to decline year-on-year, and the pressure of capital market clearance and delisting led to the continued "poor operation" of many real estate companies.

As a leading state-owned enterprise, China Resources Land is actually worth learning from its peers in terms of coping strategies and the mentality of actively seeking changeTherefore, the top three positions in the industry will be very competitive in the future

The underlying logic of the real estate industry has changed, and the new development model is still in the initial implementation, which is destined to make the real estate road in 2024 unable to become a smooth road in a short period of timeReal estate people can only change and adapt with their own efforts

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