Once the bearer of the real estate industry and the originator of high turnover, it is now troubled.
Recently,Country Garden has added a number of shares freeze information.Total number of enterprises whose shares have been executedFreeze equity over 10 billion yuan. In addition, the company also has information such as the executor and the consumption restriction order.
In this regard, Country Garden’s response is:The stock right freeze involves cooperation projects of regional companies.Due to the dispute between Country Garden and the partner in cost calculation and pre-distribution of profits, the partner applied to the court for property preservation. Such disputes are normal commercial disputes, and the court has not yet made a final judgment. The frozen equity value is not the same as the disputed object, and the company is ready to raise an objection to the excessive preservation of the partner.
In addition, in February this year,Ever Credit Limited filed a lawsuit with the Hong Kong High Court on February 27th, 2024.put forwardLiquidation petition against Country Garden, which deals with unpaid term loans with principal of about HK$ 1.6 billion and accrued interest between the petitioner and the company.
To sum up, both partners and debtors are not optimistic about Country Garden.
In fact, Country Garden has been actively promoting in order to cope with changes in the market environment and cope with high debts.
1、continuouslylandStrategic contraction, from 106 regional companies to 21 regional companies now.
2. Layoffs and salary reductions. Every year, we are constantly optimizing and adjusting talents and actively reducing labor costs.
3. sell assets. For example, in August 2023, Country Garden sold 1.29 billion Asian Games Town to China Shipping Real Estate; In January 2024, five projects in Guangzhou were packaged and planned to be sold for 3.818 billion yuan.
4. Give yourself blood transfusion. Yang Huiyan provided 5.5 billion interest-free loans, and it was rumored that private jets were sold to pay off debts.
Of course, although Country Garden has taken a lot of debt repayment measures, it is still a bit of a drop in the bucket for the huge debt of 1.3 trillion yuan.
Many people will question: Country Garden has occupied the first place in the real estate sales list for many years, with sales of 500 billion yuan for many years. For example, Country Garden’s 2019 annual report shows that Country Garden’s operating income reached 485.91 billion yuan, gross profit was about 126.64 billion yuan, and year-on-year net profit was about 61.2 billion yuan. Where did the money go?
I don’t know exactly where I went, but the boss and some senior executives took a lot anyway.
For example, since Country Garden went public, the Yang family has accumulated.Dividends were divided into 42 billion yuan., from Country GardenService dividends exceeded 1.5 billion yuan.. In addition, Yang’s family also receives a high annual salary from Country Garden. For example, in 2021, Yang Guoqiang, his second daughter Yang Huiyan and his third daughter Yang Ziying received an annual salary of 23.728 million yuan, 15.763 million yuan and 24.357 million yuan respectively, totaling 63.848 million yuan. According to statistics, the Yang family has accumulated from Country Garden.The salary is 667 million yuan.
Of course, Country Garden executives are also highly paid, for example, the president.Mo BinIn 2021, the total salary was 190 million yuan, and vice presidentLiang guokun129 million yuan in 2019 and so on.
It also includes regional presidents who used to earn hundreds of millions of dollars a year: former vice president of Country Garden Group and regional president of Jiangsu.Liu senfengIt has been widely reported that he is the first regional president in the history of real estate to get an annual salary of 100 million yuan.
In other words, Country Garden once had 106 regions and 106 regional presidents, not including the vice presidents at the group level and the vice presidents below the regions. These are people with an annual salary of 10 million.
With the regional adjustment and reform of Country Garden, there are only 21 regions from fission to reduction. Many surplus regional presidents, who have connections and backgrounds, are transferred to the group headquarters and other business sectors, and the remaining regions are always reduced to regional vice presidents and regional executive presidents, or marginalized and choose to leave.
I have also written many articles about Country Garden before (there are links related to Country Garden below), and I have also said that the regional presidents of Country Garden have left their jobs one after another.
Recently, I heard that some regional presidents of Country Garden have left.
Xiao Hongzhang: Former President of Country Garden Henan Central Region
Xiao Hongzhang graduated from Hunan University with a bachelor’s degree in architecture. After graduation, he joined Guangdong Architectural Design and Research Institute. In September 2013, he joined Country Garden Group. He first worked for Country Garden Design Institute, then joined Country Garden Real Estate, and served as the regional design director and chief designer in southern Henan. In 2020, Country Garden once again split the region and became the president of central Henan.
Qi Aihong: Former President of Country Garden Inner Mongolia Region
Qi Aihong graduated from Shijiazhuang Institute of Economics with a bachelor’s degree in investment economic management. After graduation, he joined Foshan Dongjian, Evergrande Real Estate, Wanda Real Estate and other companies. In June 2014, he joined Country Garden Group as the general manager of the cost management department of the group, and then transferred to a regional company, successively serving as the regional president of southwest Henan and the regional president of Inner Mongolia. After the regional merger in 2023, he was transferred to Country Garden Kejian Group as the general manager of the company’s marketing and the general manager of the region.
Lan Yi: Former President of Country Garden Huizhou Region
Lan Yi graduated from Southeast University with a bachelor’s degree in engineering management. After graduating in 2007, he joined Country Garden Group, also known as Guan Peisheng of Country Garden. After growing from a civil engineer to a general manager of the project, he began to be independent, and successively served as the executive president of Guangqing District, the general manager of Shaoguan City Company, the president of Shaoguan District, the president of Southwest Sichuan District and the president of Huizhou District.
None of the above three are future leaders, and they all grew up step by step in Country Garden. It can be said that their foundation is still relatively solid.
It is also a hero of the times. At the beginning, Country Garden’s wanton expansion and regional fission were selected by the group as the regional president, which was also a manifestation of its ability.
However, with the deterioration of Country Garden, many people have begun to choose to leave, not because they are disloyal to Country Garden and unwilling to play for it, but because there are really not so many places in Country Garden.
You can have a better choice when you leave Country Garden.
For example, previously reported Country Garden executives teamed up to go to Hailiang Group:
Zhao Ran: Former President of Country Garden Guixi Region, joined Hailiang Group.The assistant president is in charge of the customer center.
Pang Xiaoyun: Former President of Country Garden Zhaoqing Region, joined Hailiang Group as Assistant President.
Zhang Jiansheng: Former President of Country Garden Ningxia Region, joined Hailiang Group as the rotating president of Hailiang Mingkanghui Ecological Agriculture Group.
Zhang Mingzong: Former President of Country Garden in East Anhui, joined Hailiang Group as Assistant President and co-president of Mingjuhui Ecological Agriculture Group.
Peng Long: Former President of Country Garden Southwest Yunnan, joined Hailiang Group as Assistant President of the Group, Assistant President of Shares and Dean of the Research Institute.
With the extinction of Country Garden Group, more and more regional presidents will leave Country Garden, and once thousands of doctors and ten thousand project general managers will also be scattered with the wind.
Although high turnover has brought rich returns in the short term, with the continuous rise of debt, when the bubble bursts, it will be a disaster for both the company and employees.