Country Garden Yang's father and daughter sold planes to save themselves, how to solve trillions of debtsDon't forget to click "Follow" before you start reading! This way, you'll be the first to get the latest content for a better reading experience. Thank you for your support!
Opening line: "I'm just a real villain, and he's a hypocrite." ”
Yang Guoqiang and Evergrande are in sympathy, 1With a debt of 36 trillion yuan, Country Garden is in crisis. In order to repay the debt, the Yang father and daughter tried their best, and even sold the plane under their name, and used their personal assets to "transfuse" the enterprise.
Although this move has been questioned, the determination of the Yang father and daughter can be seen. It remains to be seen what efforts they have made and whether they can help Country Garden get out of its predicament.
Yang Guoqiang has hung up two planes, hoping to borrow nearly $500 million in cash to reduce the pressure on corporate debt.
For a billionaire, $500 million may be a small amount of money, but it is not a small amount for a debt-ridden real estate business.
After all, in the face of up to 1With $36 trillion in debt, this small $500 million can't cause much of a ripple. In fact, Country Garden's debt problem has been around for a long time.
When the real estate market began to decline, established real estate companies such as Evergrande and Country Garden bore the brunt and were severely impacted.
Yang Guoqiang and his daughter Yang Huiyan took some measures to protect their personal assets when there was a problem in the company's capital chain. For example, in 2022, Yang Huiyan transferred her holdings of Country Garden** worth about 6 billion yuan to a family** in Hong Kong to protect her property.
Recently, the real estate industry has been in the spotlight, but Country Garden has been rumored to have executives eager to cash out, raising concerns about the conflict between the company's interests and personal interests. Many people believe that Country Garden's behavior is tantamount to "killing chickens and taking eggs", and sooner or later repeats the mistakes of Evergrande.
Fortunately, the Yang father and daughter seemed to be aware of the serious consequences that cashing out might bring, and promptly dispelled the idea of "running away".
The Yang father and daughter have taken various measures, including taking the initiative to cooperate with the asset inventory and the first aircraft to fill the "hole" of the enterprise, which reflects their strong desire to survive.
Although in March this year, Yang Guoqiang had decided to take a back seat and let his daughter Yang Huiyan take over Country Garden, but first, the situation of Country Garden became critical, and Yang Guoqiang had to go out of the mountain again and immediately went to the construction site of Country Garden, which shows that he attaches great importance to ensuring the delivery of the building.
Yang Guoqiang "rescued" Country Garden with an interest-free loan of 300 million US dollars, although it was a drop in the bucket, but it shows his determination to save the company. Earlier, the Yang father and daughter provided nearly HK$40 billion of support to Country Garden through ** transactions, bond purchases, etc., including 6.6 billion interest-free loans.
In the face of Country Garden's huge debt, it is obviously not enough to save itself. So, Yang Guoqiang put down his face and began to seek help from the outside world. He knew that it would be difficult to reverse the decline with the resources at hand, so he decided to ask for help, and the first thing he thought of was his old friend and old rival Sun Hongbin.
Sun Hongbin is one of the most successful people in the real estate industry to survive the crisis, and he once successfully eliminated Sunac's 30 billion debt with a series of operations, allowing the company to get out of the predicament.
Therefore, Yang Guoqiang decided to seek help from Sun Hongbin, hoping to use his experience and resources to help Country Garden tide over the difficulties.
Although Country Garden's debt is as high as 136 trillion, even a figure like Sun Hongbin can't solve it, so the key to whether Country Garden can survive the difficulties lies in Yang Guoqiang's coping strategy.
Although Yang Guoqiang's refusal to lie down is commendable, when the debt problem has not been resolved, Country Garden has fallen into a new predicament, that is, the company's shortage of funds. According to statistics, as of the end of 2022, Country Garden has a land bank of about 600 million square meters, which is unique among all real estate companies in China.
Land used to be a symbol of wealth, but now it has become a hot potato in Country Garden. Every year, Country Garden has to pay more than astronomical amounts to manage these lands.
In addition, the market error is also one of the reasons for Country Garden's current predicament. At the end of last year, Country Garden set itself a 2The sales target of 4 trillion may also be one of the reasons for its predicament.
Although Country Garden has achieved remarkable results in expanding into third- and fourth-tier cities, in the current situation, there are only two months left before the end of this year, and Country Garden's sales are only one-third completed, which undoubtedly puts great pressure on the company's financial position.
Although Country Garden has made good returns in the short term through its high turnover rate, the drawbacks of this development model may gradually become apparent in the long run.
The real estate market in third- and fourth-tier cities has been cold, causing Country Garden's sales to fall by 43% from January to September this year9%, such sales performance has undoubtedly brought huge pressure to Country Garden's capital chain.
In addition, Country Garden's cash flow is also in trouble, with 130 billion yuan of cash on hand barely able to cope with 110 billion yuan of short-term borrowing, however, compared with 603.6 billion yuan of contract arrears, Country Garden needs to find more solutions to get out of the predicament.
Country Garden focuses on fulfilling its commitments and demonstrating its strength with actions. According to statistics, in the first half of this year, Country Garden has delivered 2780,000 houses, in stark contrast to Evergrande's only saying but not doing.
Buyers are concerned not only about the quality of the home, but also about the promise of on-time delivery. By choosing Country Garden, you will receive reliable and timely home delivery.
The Yang family's father and daughter failed to get Country Garden out of the predicament through "blood transfusion", but their sacrifice should not be underestimated, and some people questioned that this was just a superficial "show".
Country Garden is facing serious challenges and desperately needs time to raise funds, so they have pleaded with creditors to give more time in the announcement.
In today's challenges in the real estate industry, Country Garden still has a glimmer of life, and whoever can persevere to the end may have the last laugh. The rumors about Yang Guoqiang** are actually people's worries about the prospects of the industry, especially after Xu Jiayin**, Yang Guoqiang has become the object of much attention.
Whatever the Yang family's father and daughter's considerations, the most important thing now is to ensure that the interests of creditors and owners are protected. Therefore, all their efforts should be recognized and appreciated.
Conclusion: Although the Yang family has shown a positive attitude, they need to find more solutions because the crisis in Country Garden has not been completely resolved.
After all, only by relying on collective strength can we help this huge enterprise out of its predicament. The actions of the Yang family father and daughter represent not only themselves, but also the many small construction companies, employees and owners who have not been delivered.
If Country Garden's problems are not properly resolved, countless ordinary families will be harmed.