In the first week of the Year of the Tiger, the real estate industry in the middle of the cold winter was again exposed to negative news.
1 After announcing the restructuring adjustment, Netcom Construction will lay off 60% of its employees
Recently, the network rumors that Henan real estate leader, Jianye Group is about to greatly adjust the organizational structure, lay off more than 60%, the number of personnel from 1,000 to more than 400 people.
The rumor is based on the announcement issued by Jianye Group on the evening of February 7. According to the Beijing News, on the evening of February 7, Jianye Group issued an announcement announcing that it would be adjusted from five-level management to three-level management, and directly cancel the business group and the regional level.
In other words, Jianye will adjust from the current five-level management of "group - business group - region - city company - project" to the three-level management of "group - city company / professional company - project company".
The original business group headquarters was abolished, and Jianye Holdings, Real Estate Group Headquarters, Zhongyuan Jianye Group Headquarters, New Life Group Headquarters and Chikuyou Group Headquarters were merged into a new group headquarters, and the five headquarters were merged into one, and the personnel will usher in a great integration. After the abolition of the regional level, new city companies and specialized companies were established, which were directly managed by the group;
Large-scale organizational restructuring will inevitably lead to personnel changes. At that time, some Jianye employees speculated to the media that after the abolition of the regional level, it was equivalent to everyone in the region having to "stand up" and re-compete to re-compete for jobs in the city company.
Sure enough, shortly thereafter, a picture with the Jianye Group logo circulated on the Internet.
The content is basically in line with the previous announcement on February 7, that is, Jianye Group will adjust the company's organizational structure. However, the content in the picture is obviously a more detailed adjustment of Jianye Group.
The content of the picture shows that as of now, except for the coordinated command center, all other centers have completed the formulation of institutions and preparations. The nine centers have set up a total of 32 departments and 26 groups, and intend to apply for 408-412 establishments, which is 1063 people compared with the original number of on-the-job personnel, and the number of optimized personnel is 651, with an optimization ratio of 61.2%.
Called optimization, it is actually layoffs. In other words, the nine centers of Jianye Group may lay off 651 employees in this structural adjustment.
2 Bad luck!
After tearfully selling 70% of the team's shares, Jianye encountered "black swans" again
Jianye Group, AKA Henan Real Estate Brother, Henan Wang. However, compared with the reputation of Jianye Real Estate, the outside world is more impressed by the team.
As we all know, for a long time, China's real estate companies like to buy football teams, and China's well-known real estate companies have more or less invested in football, such as Evergrande, Wanda, Hangzhou Greentown, Shaanxi Zhongjian, Henan Jianye...
Why do real estate companies love to invest in football? Is it because of love?
Of course not. It comes down to getting a return on the business side. As Wang Jianlin said: Investing in football will not make you money, but it can give you influence. Xu Jiayin also said bluntly that every penny invested in Evergrande football has been very rewarded.
The same is true for Jianye. According to the official henan team to the media, since Jianye Group took over the Henan football team in 1994, it has invested nearly 5 billion yuan in the development of Henan football in 26 years.
However, with the decline of the real estate industry, the team began to gradually become a burden on housing enterprises.
In February 2021, in order to implement the "Overall Plan for the Reform and Development of Chinese Football" and the relevant requirements of Chinese football, Jianye Team officially announced that it was renamed Songshan Longmen in Henan. Behind the name change with the Jianye team this time, in fact, Jianye is unable to support the team that burns money.
After the name of the Jianye team was changed, the shareholding structure of Henan Songshan Longmen changed from a monopoly of Jianye and wholly owned by Jianye to a "433", that is, the Zhengzhou Municipal People's Government accounted for 40%, the Luoyang Municipal People's Government accounted for 30%, and the Jianye Group accounted for 30%.
Although the obvious reason is "to take government support as a solid foundation, let more enterprises invest in the development of Henan football, which will contribute to the rapid development of football culture and football." "But clear-eyed people know in their hearts that it is because football is too expensive, and Jianye can't bear it."
The financial situation of Jianye Group also directly determines the budget level of the team. For example, in 2020, due to the impact of the epidemic, Jianye Group greatly reduced the budget of The Jianye Club.
The impact of the epidemic, coupled with the strengthening of control of the real estate industry, even if Hu Baosen loves football again, when the market situation is not good, in order to "tighten the belt of the pants and leave room for work", it is still a decision to "throw the team out".
△ Hu Baosen spoke in an interview with the media
It was difficult to "dump" the money-burning team out of 70% of the shares, which greatly reduced the burden of Jianye, but it was never expected that after suffering the impact of the epidemic, Jianye encountered floods in 2021. In July 2021, when Zhengzhou was hit by a huge flood, Henan Jianye also issued a letter of help to the Henan Provincial Party Committee and the Provincial Government, saying that due to the dual impact of the flood situation and the epidemic, the business development of Jianye Group suffered serious losses, and major risks and crises had emerged.
The group suffered direct economic losses of 550 million yuan, operating losses of 800 million yuan, operational losses of 300 million yuan, more than 50 closures of more than 300 projects being sold, sales and collection of 3 billion yuan less than the original plan, a number of construction sites stopped, Zhengzhou Erqi District Cherry Gully Football Town project road breakout, rehabilitation indefinitely, 600 million yuan of investment and 900 million yuan of construction land will become invalid assets. The above-mentioned cumulative economic losses exceeded 5 billion yuan.
3 Jianye Tiger Year "Pressure Mountain"
Although it finally survived the crisis, the "black swan" incident still brought huge losses to Jianye.
On January 5, Jianye Real Estate (0832. HK) released 2021 unaudited contract sales data show that as of December 31, 2021, Jianye Real Estate achieved total property contract sales of RMB60.105 billion last year, a decrease of 12.0% compared with the epidemic in 2020, and the total contracted sales floor area was 8,165,977 square meters, a year-on-year decrease of 8.2%.
In addition, the gross profit margin and net profit margin of Jianye Real Estate also declined. As of mid-2021, the gross profit margin of Jianye Real Estate was 17.9%, a decrease of 5.8 percentage points year-on-year (23.7% in the middle of 2020 and 27.3% in the middle of 2019); the net profit margin was further reduced from 6% to 5%
The liquidity pressure of Jianye is not low. According to the financial report, from 2015 to 2020, the total liabilities of Jianye Real Estate were 32.44 billion yuan, 37.329 billion yuan, 54.054 billion yuan, 91.693 billion yuan, 131.365 billion yuan and 149.319 billion yuan, respectively. Even under the pressure of the "three red lines", Jianye's total liabilities in the first half of 2021 have only slightly dropped to 148.576 billion yuan. However, due to the decline in total assets, the asset-liability ratio has increased by 1 percentage point compared with 2020.
To make matters worse, Jianye's commercial tickets also showed a large number of overdue refusals.
According to self-media reports, the latest data show that Jianye refused to pay 975 commercial tickets, with a total amount of 260 million, and there are currently 11968 commercial bills outstanding, involving 2.77 billion yuan. On January 6, ticket holders organized a group to go to Jianye to pull banners to defend their rights.
In addition, on August 8 this year, Jianye Real Estate also had a US$300 million US dollar debt about to mature.
The pressure jianye is facing this year may be unprecedented since its inception.
This article originated from Deep Blue Finance