Xu Jiayin's sudden disappearance
The update of the Forbes Real Estate Rich List has attracted widespread attention, and one of the most notable scenes is the sudden disappearance of Xu Jiayin. Once became a member of the real estate rich list with a personal net worth of 20 billion, Xu Jiayin can no longer find his name in the list. This sudden change triggered speculation and discussion about Xu Jiayin.
It is understood that Evergrande Group, as a large enterprise in China's real estate industry, has faced huge debt pressure in recent years. Some financial problems that once involved Xu Jiayin have gradually surfaced, such as Evergrande's suspected embezzlement of up to 13.4 billion yuan, and the relevant documents also have Xu Jiayin's signature. In addition, problems such as the thunderstorm of Evergrande wealth and false commercial bills have also become one of his business difficulties. It can be seen that Xu Jiayin's decision-making courage and ambition are indeed quite large, but it is also this bold expansion that has plunged him into crisis.
However, there has been no official announcement on the specific reasons for Xu Jiayin's arrest. The outside world has speculated about the truth behind this incident, but in any case, Xu Jiayin's involvement in the turmoil must be not small. It is foreseeable that as the investigation deepens, more questions will gradually surface.
Wu Yajun became the new champion of the real estate rich list
With Xu Jiayin no longer existing, the throne of the richest man in real estate changed hands again. Wu Yajun, as the founder and boss of Longhu, successfully ascended to the throne of the real estate rich list. Longfor was once the least visible of the top ten real estate companies, but now it is one of the best performers. This is mainly due to Wu Yajun's consistent and steady business style.
When asked by the media why he didn't expand massively, Wu Yajun replied, "You have to live a long time first, and then you can live long." Such a perception has made Wu Yajun always maintain relative caution in operation, and the debt ratio is relatively low. Although there is still a gap compared to some excellent companies in Hong Kong, Longfor still maintains a solid financial position. Wu Yajun's style is indeed worthy of our praise, and his success also shows his deep consideration of the market and the development of the enterprise.
Xu Jiayin's entrepreneurial journey
Looking back at Xu Jiayin's entrepreneurial journey, we can see his courage and determination. In 1996, Xu Jiayin, who was poor at the time, borrowed 5 million yuan from the bank and bought the land in installments, allowing the partner to pay for the construction in advance. It was with his successful use of leverage that Xu Jiayin successfully developed the first project, Jinbi Garden, recovering 80 million yuan. This success story later became a business model that he kept replicating.
After that, Xu Jiayin faced the problem of insufficient funds due to rapid expansion before Evergrande's listing in 2009. To hit the IPO, he doubled his debt in just one year in 2007. If he is willing to make small troubles, then he will definitely not have these troubles now. However, his ambitions were high and he kept expanding. After four years, Evergrande's annual sales have increased from 30 billion to 500 billion, and the surge in sales has also led to a surge in debt. When it went public in 2009, Evergrande's debt was more than 10 billion, and by 2019, it reached 1.97 trillion. Under such circumstances, Xu Jiayin also invested tens of billions of dollars to develop diversified projects such as football, Evergrande ice fountain and automobiles, but these projects ultimately failed. In order to fill these huge holes, Xu Jiayin had to take risks and was eventually captured.
It should be pointed out that Xu Jiayin's problems may be more than what is seen on the surface, and as the investigation deepens, more facts may be revealed.
Wang Jianlin's stability and slimming
In contrast, Wang Jianlin's performance in the face of difficulties is different from Xu Jiayin. After 2017, Xu Jiayin continued to expand wildly, trying to use expansion to cover up the debt problem, while Wang Jianlin began to slim down. He has sold 13 cultural tourism projects and 77 hotels, returning nearly 100 billion yuan. In addition, he liquidated overseas assets, sold Wanda Department Store and repatriated his stake in AMC Cinemas. At the same time, Wang Jianlin clarified the route of focusing on the main business, divested many non-core assets, and no longer diversified development. In the main business of commercial real estate, he also began to adopt an asset-light model, no longer carrying out self-acquired land development. Wang Jianlin's slimming action can be said to be very timely and wise. Doing so will not only solve Wanda Group's debt problems, but also allow it to focus on developing its core business. At the same time, his steady operation and stable development strategy also gave investors more confidence. It can be said that Wang Jianlin's performance provides a solid foundation for his position on the real estate rich list.
In general, in the real estate industry, Xu Jiayin and Wang Jianlin are very influential entrepreneurs. Both their successes and failures have taught us valuable lessons. Whether it is expansion or slimming, it needs to be carried out at the right time, while maintaining a relatively stable business style. For real estate tycoons, stable and long-term operation is the most important.