In 2023, an unprecedented earthquake erupted in China's real estate market. Country Garden Group, a once glorious real estate giant, suddenly faced operational difficulties and even reported bankruptcy. The news shocked the entire real estate community, and investors feared that their funds would suffer huge losses as a result. However, unexpectedly, Yang Huiyan, the founder and chairman of Country Garden, had a good eye and successfully implemented a plan to get rid of the golden cicada shell and avoid the fate of bankruptcy.
To understand Country Garden's Golden Cicada Shelling Program, we first have to look back at the company's history. Country Garden was established in 1997 to develop residential real estate projects. As the scale of operation expanded, the company gradually developed into one of the largest real estate developers in China. However, for a long time, Country Garden has had huge debts and high financing costs, which have put great pressure on the company's operations.
We need to understand where Country Garden is now. In recent years, with the increase of China's property market control policies and the increasingly fierce market competition, Country Garden has encountered a series of difficulties. From the financial data, Country Garden's debt is large and growing, so that the company has to frequently issue bonds and other means to raise funds. However, in the current uncertain economic situation, the debt problem is undoubtedly a huge hidden danger for the development of enterprises. The financial market is keen to bear real estate stocks, which has exacerbated Country Garden's predicament.
First, Country Garden's bankruptcy shocked the real estate industry
As one of the giants of China's real estate developers, Country Garden's prestige and performance have always attracted much attention. However, in recent years, the increased instability of the real estate market, coupled with China's increased regulation of the real estate industry, has led to great challenges for Country Garden. The recent rumored bankruptcy of Country Garden is undoubtedly shocking.
Second, the boss Yang Huiyan's golden cicada shell
For the boss of a public company, any negative news related to the company could put them in the spotlight overnight. Faced with the threat of rumors of Country Garden's bankruptcy, the boss Yang Huiyan adopted the method of removing the golden cicada. Ms. Yang gradually divested her role in the company, reducing her holdings of shares while turning her attention to other industries to avoid risk.
Third, the comparison between Country Garden and Evergrande
Judging from the current performance, Country Garden and Evergrande have different ways of dealing with difficulties when they face difficulties. First of all, Evergrande has adopted a more conservative stance on the possible existence of the crisis, while Country Garden is more inclined to respond positively. Secondly, Evergrande's risks have increased accordingly due to its involvement in too many industries, while Country Garden has focused more on real estate business.
4. Outcome prospects
In any case, in the face of the drastic fluctuations in the real estate market and changes in the external environment, Country Garden's future still faces many uncertainties. However, in the context of increasingly fierce competition in the industry, Country Garden can learn many lessons.
Looking back at Evergrande's experience, it was once also a giant in China's real estate industry, however, it ended up in huge troubles due to high debt and poor management. Evergrande's fate has become a warning sign for the entire real estate industry to be wary of high debt and the risk of unlimited expansion. Country Garden's Golden Cicada Shelling Program successfully avoided Evergrande's fate, but they still need to learn from the crisis and make corporate governance and strategic adjustments.
Based on the above analysis, it is difficult to draw conclusions about whether Country Garden's outcome is the same as Evergrande. However, regardless of the outcome, the fact that Country Garden's bankruptcy shook the real estate world cannot be ignored. This is a warning to the real estate industry and a reminder to all entrepreneurs to be cautious in their business decisions. For Country Garden, the shelling of the cicada is just the beginning, and there will be various challenges ahead.