The Pentium Era - South to North

The Chinese New Year is coming soon, and Tan Shuzhen has to summon them to Hangzhou for a meeting, which lasts for three days. The general manager of the branch below is a little strange. Ying Ying asked Yao Fen, but Yao Fen didn't know. She said that Director Tan just asked her The meeting was announced and nothing else was said.

Xiaofang came back on Saturday, and Tan Shuzhen went to Zhang Chen's house on Sunday. Zhang Chen went to the M-Zone construction site anyway. Tan Shuzhen stayed at their house for a day and didn't know what she and Xiaofang were talking about.

Zhang Chen asked Xiaofang in the evening, but Xiaofang said it was nothing and he was helping Sister Zhenzhen settle the accounts.

"Is there any problem with their company's accounts?" Zhang Chen asked.

"There's no problem, it's just that the flow rate is much slower than the year before." Xiaofang said.

Zhang Chen heard that there was nothing wrong with the account, so he didn't ask any more questions. Xiaofang then told him about Fanhua Network's C round of financing. Zhang Chen quickly said, I don't care about this matter. Isn't it you and Liu Yun?

"You are the major shareholder." Xiaofang said, "Financing will continue to dilute your equity."

"Okay, it doesn't matter if it's diluted." Zhang Chen said, "You see how to do it well, just do it."

Xiaofang shook her head, knowing that it would be useless to say more, so she stopped.

On Sunday afternoon, the general managers of Splendid China's branches across the country all arrived. Most of them live in Hangzhou and go home separately when they arrive. Only the general managers of Changsha, Chengdu, Guiyang, and Chongqing are locals. , Yao Fen sent them to Taohuayuan Hotel.

Lao Xie and Mr. Han came from Haicheng together. Zhang Chen and Tan Shuzhen went to the airport to pick them up. They had dinner at Tuxiangyuan Hotel. During dinner, Liu Yun and Xiaofang also came. Liu Yun and Lao Xie were Lao Xie. We knew each other. When Lao Xie's entertainment city wanted to place a recruitment advertisement, it was Liu Yun who introduced him to Liu Ligan.

It was from that time that Lao Xie and Liu Ligan and Zhang Chen met, and what happened next happened.

When old friends met, they were all a little emotional, but because Liu Ligan couldn't say too much, everyone knew about the relationship between Tan Shuzhen and Liu Ligan.

During the meal, Mr. Han was present, and Tan Shuzhen expressed her concerns. She told Mr. Han that it could be said that it was right for us to abandon first-tier cities in the past few years and move to third- and fourth-tier cities and lower counties. That At that time, the market in these places had not yet picked up. It can be said that we have picked up all the bargains that should be picked up. Our projects in these places have high profit margins.

But now, the land market in third- and fourth-tier cities, even in the lower counties, has begun to be standardized. Everyone has only one way to do it: bidding, auction, and listing. In this way, the cost of acquiring land is getting higher and higher, and the profit rate of the project is declining.

Tan Shuzhen and Mr. Han said: "This is not what I am worried about. What I am really worried about is that our company's debt ratio is too high, reaching 92%."

"Is this debt ratio real? No debt is hidden or transferred?" Mr. Han asked.

Tan Shuzhen nodded and said, "It's true."

"That's not too high. The high debt ratio in the real estate industry can be said to be a common problem in the industry. As for your debt ratio, it is still low. I know that most real estate companies, especially the leading companies, they The real debt ratio is above 120%. Without financial means to transfer debt and beautify the statements, their statements will be impossible to read."

Mr. Han said: "In the past few years, everyone has been working hard to acquire land, using leverage and leverage. It can be said that financing is done by any means. They dare to take any kind of money. Your company's risk control is pretty good."

"I know." Tan Shuzhen said, "But such a high debt ratio always makes people panic. There is no problem when things are going smoothly, but once the general environment deteriorates, you may be forced to sell assets at a low price to reduce the debt ratio. degree."

"Yes, there is always this risk." Mr. Han said.

"This involves the second issue that worries me." Tan Shuzhen said, "Because most of our current projects are in third- and fourth-tier cities and counties. Although these projects are still profitable, we calculated them yesterday. , the flow rate ratio is decreasing.”

"Does it mean that the possibility of asset realization has become weaker?" Mr. Han asked.

Tan Shuzhen nodded and said yes.

"That's for sure." Mr. Han said, "Compared with first-tier cities, the purchasing power of third- and fourth-tier cities and county-level cities will be much lower. Basically, the more stringent purchase restrictions in a place, the lower the purchasing power of that place. Strong, and when the general economic environment deteriorates, it always starts from the end, that is, the third and fourth tier cities.

"In first-tier cities, whether it is local government investment or residents' consumption, there is an inertia, and it is difficult to stop the car all of a sudden. Mr. Tan, the weakening of the asset liquidity you mentioned is indeed worth worrying about. If all projects are In third- and fourth-tier cities and at the county level, a single project may not have a big impact, but if all projects explode together, it will be a big problem.”

"Yes, that's what I'm worried about. The whole country is playing chess, and the economic environment is getting worse. It's all nationwide. The concentrated outbreak you mentioned, Mr. Han, can be said to happen at any time." Tan Shuzhen said, "This That’s what makes me panic.”

"Is this what this meeting is for?" Lao Xie asked.

Tan Shuzhen was right, "I was wondering if our Splendid China needs another transformation. I called everyone here just to discuss this matter."

"Dr. Tan, how are you going to transfer?" Mr. Han asked.

"I'm thinking whether we should abandon those projects with weak asset liquidity and start to increase development and sales while we can still do so. Yesterday, Xiaofang helped me sort the locations of all our projects, starting from the bottom Starting from the first city, the development of existing land will be accelerated, and new land will no longer be purchased locally. It will take about a year to clear out the assets in these places.

"At the same time, shrink the front line, concentrate funds, and return to first-tier cities and cities where assets can be realized quickly. If we can do this, high debt ratios will not be a terrible thing. Of course, at the same time, we still need to reduce The debt ratio of the company.”

As Tan Shuzhen said, Zhang Chen asked: "We are coming back again. Didn't you say that there is no space for you in first-tier cities, and that they are all occupied by companies with Chinese and Guo prefixes?"

"At that time, this time, at that time, third- and fourth-tier cities and lower county towns were still a blue ocean, and there was a way to survive. But it is different now. I feel that continuing to waste time in these places is likely to be a dead end." Tan Shuzhen said, "So I have to come back, and I have to squeeze in even if I have to squeeze in."

Mr. Han nodded, looked at Tan Shuzhen and said: "Dr. Tan, your consideration is right. It can be said that it is very forward-looking. Those companies that are still making plans everywhere will find that they have too much tail in a few years. But, if this is the case, this year will be very painful for you.”

"I know that the reports will be ugly and the pressure will be great." Tan Shuzhen said.

Xiaofang said: "The capital market is said to be very rational, but in fact it is the most irrational. In the capital market, scale is king. Investors like to see you expand, but they don't like to see you shrink."

"Reducing the debt ratio is even more thankless. There are a few investors who will care about your real debt ratio. As Mr. Han said, as long as you can find a way to transfer or hide the debt, beautify the statements, and let Just don’t let the stock price fall." Liu Yun said from the side.

Tan Shuzhen kept nodding her head and said:

"I know what you are saying. On the one hand, we are downsizing, and on the other hand, the new land in first-tier cities is not increasing so fast. From a numerical point of view, Splendid China's stock of land is rapidly decreasing, which is really ugly. Moreover, after switching battlefields, profits in first-tier cities do not show up so quickly, which will affect the company's stock price.

"However, I definitely feel that the time for the real estate industry to fight for speed and scale has passed. Whoever continues to fight like this will die in the end. On the contrary, I feel that it is time to slow down and reduce scale. I am now If we don’t do it, by the time everyone realizes this, it may be too late.”

"It's difficult to make this decision," Mr. Han said, "but your judgment is right."

"It is indeed difficult. Not to mention other things, it is very difficult to coordinate within our company." Tan Shuzhen said, "For some branches, I am cutting off their escape route, so we need to hold this meeting. , unify everyone’s thoughts.”

"I support you, Director Tan. As for our Hainan company, I will listen to you no matter how we shrink or to what size we shrink to."

Lao Xie said, Mr. Han was about to speak, Tan Shuzhen waved her hand, Mr. Han stopped talking, looked at Tan Shuzhen, Tan Shuzhen and Lao Xie said:

"Not only will your Hainan company not shrink, but it will continue to expand. Thank you for going ahead and doing it."

Mr. Han laughed, and Zhang Chen was puzzled and asked: "Tan Shuzhen, aren't you slapping yourself in the face? You just said you would shrink third- and fourth-tier cities, why did you turn around and say Hainan will continue to expand? What about Haicheng?" , I think it’s not even comparable to third-tier cities.”

Tan Shuzhen is right: "On your clothing map, Haicheng is not even ranked as a third- or fourth-tier city. However, our real estate industry has our own map. On our map, the entire Hainan is a first-tier city."

"Why?" Zhang Chen asked.

Tan Shuzhen saw that Mr. Han kept smiling, and she said, "Ask Mr. Han."

Mr. Han smiled and said to Zhang Chen: "Dr. Tan is right. Hainan is indeed a special place. Houses in Hainan are not bought by locals in Hainan, but by people from all over the country. The more capable they are on the front line." People who want to buy a house in the city will also be interested in buying a house in Hainan at the same time.

"I estimate that Haicheng and Sanya will also introduce purchase restrictions soon, but it would be a very stupid decision to impose purchase restrictions in these two places."

Zhang Chen looked at Mr. Han and still didn’t understand. Mr. Han said to him:

"This will not reduce the number of mainlanders going to Hainan to buy houses. It will only make them move from Haicheng and Sanya to other places without purchase restrictions. For mainlanders, whether my house is in Haicheng or Danzhou What's the difference? As long as it's in Hainan, it will only push up housing prices in Hainan province.

"This is probably what Director Tan said, why the Hainan branch does not need to reduce its size. Am I right, Director Tan?"

Tan Shuzhen smiled and nodded. She said, "Mr. Han is right. I think Hainan will only continue to be hot. Lao Xie, do I need to explain to you further?"

Lao Xie understood, he said, I understand.

Thank you to Wang Huaixiaogui, The Chair in the World, Tiezhongshang 1, ﹉I Love Purple﹉, and ZHAO1017 for your monthly votes! Thanks for all the votes and reading! I wish you a nice weekend!