Sun Hongbin, who has always been generous, has changed, “do not make money if you don’t make money.”
He emphasized that Sunac will do three things this year: adjust the financing structure and reduce financing costs; dispose of some assets; To time. The main strategy is to reduce debt and slow down scale expansion.
However, just four months ago, Sun Hongbin mentioned the acquisition of 51.69 billion of the 51% stake in Global Century (Chengdu Global Century Exhibition and Tourism Co., Ltd.) held by Yunnan Urban Investment Group for 15.269 billion. When Times Global (Chengdu Times Global Industry Co., Ltd.) 51% of the equity, the tone is like shopping in the vegetable market-we have bought very restrained, not much money.
This article public from the micro-letter number: China entrepreneur magazine (ID: iceo-com-cn), author: Li Yanyan
Sunac also joined the “internal war” of leading housing companies to strengthen organizational change.
A wide range of organizational adjustments are being carried out within Sunac China. Several Sunac executives and employees in China disclosed this. Since March of this year, Sunac has begun to “knife” in organizational aspects, focusing on adjustments such as “improving per capita efficiency” and “optimizing the talent structure”, focusing on efficiency, streamlining the organization, and eliminating redundancy. The specific number of employees to optimize is determined by the region. The proportion of optimization in some regions ranges from 10% to 20%.
A Sunac regional-level executive who declined to be named said that apart from talent optimization, Sunac is currently controlling the scale of financing, and relevant departments at the fund level have been notified to reduce financing costs by 1 point. “Not only has the cost dropped a lot, but it also requires controlling the loan-to-sales ratio and strictly controlling the project loan quota.” In addition, the company’s enthusiasm for land acquisition is also decreasing.
However, the person emphasized that Sunac is actively “sinking”: that is, on the one hand, reducing debt: on the other hand, slowing down expansion. “It sold well last year, but the profit was very low. So this year, we must improve efficiency and not just make money.” The source said.
The above-mentioned executive’s statement has also been confirmed here. At the Sunac China 2019 results conference on March 27, Chairman of the Board of Directors Sun Hongbin attended the management and answered investors’ questions.
Sun Hongbin told investors that Sunac will do three things this year: adjust the financing structure and reduce financing costs; dispose of some held assets; take the land to the right place and the right time .
“This year is a better opportunity to dispose of assets, because the liquidity in the market is better now.” Sun Hongbin revealed that Sunac successfully sold one hotel at the end of 2019, and now another four hotels will be traded in the short term. . He also sold some businesses and parks, but did not disclose further details.
On this topic, Sun Hongbin once again reiterated: “Disposing of assets is a more resolute thing that Sunac will do this year.”
Earlier, Sunac made long-term organizational adjustments around the region. Sun Hongbin said that in order to solve the management disconnection and efficiency between headquarters-region-urban companies, starting from 2017, regional groups have been promoted to delegate authority to urban companies. Two years later, the results have been effective: “The company currently has 7 regions 58 city companies, managing more than 100 cities. “
Sun Hongbin, who often hangs “cautious, careful,” is a fierce character who can let go. He is keen on “buy, buy, buy”, and has a strong risk-taking and gambling trait hidden in his bones. Today, he advocates a series of actions such as resolutely “selling assets” and optimizing the organization, which shows another aspect of him: risk management, profit appeal and introspection. Sunac’s action strategy reflects the epitome of leading real estate companies responding to market uncertainty and then seeking survival space.
In 2019, Sunac sold 556.2 billion yuan. Contract sales ranked in the top four in the real estate industry for three consecutive years. Sunac China Chief Executive Wang Mengde said, “This year’s saleable value is 820 billion yuan. Later, due to the epidemic situation, it has been adjusted to achieve the 600 billion yuan + sales target.”
“This year’s 6,000 small goals are very easy.” Sun Hongbin said that he did not want to set sales goals. He said at the beginning of last year that he “does not want to be the boss for many years” . Today, he is satisfied with the scale, and feels that it is ideal in the top five, very comfortable, and the sales ranking has no meaning. He hopes to have a profit and market value