Yesterday, China Resources Land (01109. HK) released a message of personnel changes saying:
Wang Xiangming resigned as chairman of the board of directors, non-executive director of the company and chairman of the nomination committee of the company due to other assignments of China Resources Group. Li Xin was appointed Chairman of the Board and Chairman of the Nomination Committee of the Company and has entered into a letter of appointment for a term of three years.
The announcement of the personnel change also officially announced that Wang Xiangming handed over the supreme scepter of China Resources Land to Li Xin.
BIANJIE
01
"Skilled hands" take over as chairman of the board of directors of China Resources Land
According to public information, Li Xin, 50, holds a bachelor's degree in management from Dongbei University of Finance and Economics and a master's degree in project management from the Hong Kong Polytechnic University, and has experience in real estate and corporate management.
He joined China Resources (Group) Limited as early as 1994 and worked for China Resources Property Limited. He joined China Resources Land in 2001 and has been around for 21 years now, making him a solid veteran. In 2016, he began to move towards the front of the stage and gradually moved closer to the center of the stage.
Li Xin
In July 2016, China Resources Land launched a new round of personnel changes, when Tang Yong, then vice chairman of the board of directors, presided over the overall work of the company, and set up a joint president management structure, co-presidents Zhang Dawei and Li Xin assisted Tang Yong in their work and formed the core team of China Resources Land's three people, and Li Xin became one of the "iron triangles" of China Resources Land's power.
In December 2018, China Resources Land changed its position again, Tang Yong no longer served as vice chairman of the board of directors, but became ceo, and Li Xin became the president of China Resources Land at this time.
Affected by objective factors, China Resources Land has not had a formal chairman of the board of directors in those years, and Wu Xiangdong, known as the "soul figure", has been vacant for more than four years since he resigned as chairman of the board of directors in late 2014.
Finally, in February 2019, with Wu Xiangdong's departure, Tang Yong became chairman of the board of directors of China Resources Land, but he remained in this position for only 10 months. In December 2019, an announcement announced that Tang Yong was transferred to China Resources Power, and Wang Xiangming, general manager of China Resources Group, was appointed chairman of the board of directors of China Resources Land, and the power structure of China Resources Land was changed again. Seven months later, Wang Xiangming became chairman of China Resources Group and remains chairman of the board of directors of China Resources Land. Wang Xiangming's decentralization and the stability of the situation have given Li Xin more room to play.
Since Wang Xiangming became the chairman of the board of directors of China Resources Land at the end of 2019, in terms of daily operation and management, his energy has not been much, in addition to attending the performance meeting in the following year of his appointment, in the following two years, the two performance meetings of China Resources Land have been presided over by Li Xin, and the burden of daily affairs and operations has also fallen on Li Xin.
In March 2020, Wang Xiangming said at the China Resources Land Investor Conference: "In terms of specific operation and management, I will fully support the work of the Executive Committee of the Board of Directors headed by Li Xin." ”
Now, in less than three years, Wang Xiangming has resigned as chairman of the board of directors of China Resources Land, which china resources officially explain is because of other work assignments. As the helmsman of China Resources Group, Wang Xiangming may also have his own considerations.
BIANJIE
02
The high-quality development of "resilient central enterprises"
Established in 1994, China Resources Land is a business unit responsible for urban construction and operation under Fortune Global 500 China Resources (Group) Co., Ltd., and is the most influential urban investment and development operator in the industry.
In the years since Li Xin became the president of China Resources Land, China Resources Land, as a stable central enterprise, has maintained resilience in performance.
In 2021, China Resources Land recorded operating income of 212.1 billion yuan, an increase of 18.1% year-on-year, net profit attributable to the mother of 32.4 billion yuan, an increase of 8.7% year-on-year, and core net profit attributable to the mother of 26.6 billion yuan, an increase of 10.2% year-on-year. In the context of the overall downturn in the market, china resources land's achievement is particularly difficult.
Li Xin also responded to concerns at the 2021 performance conference of China Resources Land in March this year, pointing out that China Resources Land has never only had the scale theory, let alone rushed through the scale, and what China Resources Land wants to maintain is the industry ranking and barriers. "We've always had quality scale growth."
At this year's manager work meeting, Li Xin also put forward several keywords for this year's work: "cost reduction, quality improvement, and efficiency increase" as the management theme, "do excellent stock, do solid increment", "reduce internal volume, eliminate waste", "blade inward, scrape bone to cure poison, resolutely rectify loose and soft" as the starting point, and fully complete the 2022 performance target and management target.
A large part of the content is required for internal governance, and we have also seen the actions of China Resources Land's management:
In April this year, China Resources Land carried out a round of organizational changes, integrating East China into six major urban companies, thereby improving organizational efficiency and improving the deep cultivation capacity of city companies.
In addition to the changes to the organizational structure, China Resources Land has recently begun to recruit industry talents: through the win-winning plan, it has openly recruited positions such as the marketing general of urban companies, the total investment of large regions/cities, and the total number of comprehensive projects.
Some important management positions of China Resources Land are still open to the public, indicating its desire for fresh blood, thus further activating the vitality of the organization.
In the diversified sector, Li Xin hopes that "during the '14th Five-Year Plan' period, the growth rate of China Resources Land's overall shopping center revenue will remain above 20%, while the gross profit margin level of shopping malls will remain above 70%."
China Resources Land also has a moat in the commercial sector, and capital markets and investors are more willing to pay for its capital story.
Nevertheless, it must be admitted that in the current market environment, although China Resources Land has a "thick foundation", it will not be able to stand alone.
Many companies that are equally excellent as China Resources Land are already experiencing the pain of "shrinking their tables", and Li Xin and the management of China Resources Land will face a more competitive industry environment. How the road ahead will go depends on the leadership of the new chairman.
BIANJIE
03
Launch the "anti-inner volume" vanguard war
The real estate industry has entered the era of black iron, many housing enterprises have fallen into a credit crisis, and the "scalpel" has begun to fall within the organization, resulting in fierce internal competition, continuous increase in workload, or competition for overtime hours, etc., but the final result is thankless.
Previously, a top 100 housing enterprise required the project department to be reduced from more than a dozen people to single digits - many jobs are platform design at the same time, in addition to the suppression of headquarters, regional tasks, but also often run the construction site.
At the same time, the internal organizational structure is stacked on the bed frame house, there are many management departments with similar functions, internal communication is complicated, and it is necessary to approve and report at all levels, etc., which will cause internal friction and inefficiency of the entire organization.
Last month, China Resources Land issued an initiative called "Proposal to Reduce Inner Volumes", and "anti-inner volumes" became the theme of China Resources' proposal.
So far, at the level of external disclosure, no real estate enterprise will oppose the inner volume in the form of a proposal, and China Resources Land is the first. The overall recommendation of the Proposal to Reduce Inner Volumes:
First, get a good land, more smoothly: do a good job in pre-investment research, focus on projects with high safety, reduce regional business risks, and reduce follow-up control actions from the source - past experience shows that projects with poor post-investment implementation have added several rounds of different types of discussion or decision-making reports compared with normal projects.
Second, simplification, cautious increase: each additional management action should seriously consider whether it really produces value, whether it is repeated with existing management actions, whether it complicates simple problems, and whether it can not be added.
Third, flattening, information quasi: the department is flattened, controlled at the backbone to the head of the department two levels, the information transmission up and down needs to be accurate, especially the lower level in the transmission of the superior work requirements and instructions must be accurate information, to avoid inaccurate information transmission caused by repeated work.
Fourth, reduce the report, fine report: optimize and reduce unnecessary process reporting and repetition, do a good job of offline information circle; the content of the report does not seek quantity, the logic is clear and focused, and the things that can be said in 5p will never write more than 1p.
Fifth, strong circle, not repeated: important decision-making matters, the main responsible person should be in his own department information circle, and the relevant department responsible person information strong circle, to ensure that the meeting of the communication and discussion is sufficient, the leadership concerns, requirements, and difficult issues have been fully analyzed; pay attention to the quality of decision-making, there are doubts at the meeting must be boldly asked, to ensure that the meeting is fully communicated, opinions and conclusions are consistent, and strive for decision-making not to be repeated, once.
"Reducing internal rolls and eliminating waste" is a major management grasp of China Resources Land.
Li Xin said that it is necessary to take the improvement of product strength as the core to penetrate and improve organizational capabilities, do products with excellent comprehensive quality and customer satisfaction, and promote the effective transformation of existing projects; management personnel at or above the middle level in regions and cities should sink into management, personally reduce ineffective and inefficient matters, improve work standards and management requirements; clarify the improvement goal of eliminating waste, put forward management initiatives, and break the inherent inertial thinking and subvert the traditional path dependence with practical actions.