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The expansion strategy of Evergrande Group has attracted attention from the outside world Recently, a reporter asked why Longfor Real Estate did not become bigger and stronger. To this, Wu Yajun gave a thoughtful answer: "You have to live a long time first, and then you can live long." This answer has been widely discussed because it is more far-sighted than some other thunderstorm real estate tycoons. This has also led to speculation about the expansion strategy of Evergrande Group, and many incidents involving Evergrande have attracted people's attention. The operational problems faced by Evergrande Group cannot be ignored. Recently, the news that Evergrande's property of 13.4 billion yuan was misappropriated caused an uproar. This document is believed to have been signed by Xu Jiayin himself. In addition, Evergrande's wealth is thunderous, with a scale of up to 40 billion.
This incident is also significant and deserves in-depth investigation. In addition, Evergrande is also suspected of falsely issuing commercial paper, and the issue is also very complicated. Through successful leveraged projects, Xu Jiayin has been constantly replicating this high-leverage model. However, before going public in 2009, Evergrande had been facing a shortage of funds due to too rapid expansion. In its efforts to hit the listing, Evergrande's debt doubled in a year. If Xu Jiayin had chosen to make a small fuss at that time, he would definitely not have so much trouble now. However, his ambitions are too great. It is said that at an internal drinking party ten years ago, Xu Jiayin got drunk and asked the people around him how he could live for a lifetime.
After Evergrande went public in 2009, the capital problem was alleviated, but Xu Jiayin did not stop the pace of expansion, but continued to grow wildly. In just four years, Evergrande's annual sales grew from 30 billion to 100 billion, and then rapidly grew to 500 billion. In contrast, Wang Jianlin still holds the second place in the real estate rich list, and his net worth has reached 57.6 billion yuan. Although this number is lower than when he was at his peak, it is already a success to remain on the rich list. Wang Jianlin is different from Xu Jiayin. Since 2017, Xu Jiayin has become more frantic in expansion, trying to use expansion to cover up debt problems, while Wang Jianlin has begun to lose weight on a large scale.
Overall, Evergrande's expansion strategy has attracted widespread attention. Wu Yajun's answer makes people think, is it more important for enterprises to live long first or to live long? At the same time, the various operational problems faced by Evergrande Group have also caused concerns from the outside world. From the perspective of the incidents involved, such as the embezzlement of Evergrande's property, the thunderstorm of Evergrande's wealth and Evergrande's suspected false issuance of commercial paper, the seriousness and scale of the problem cannot be ignored. These issues need to be investigated in depth to better understand the operating conditions of Evergrande Group. For Evergrande Group, expansion is a double-edged sword. On the one hand, rapid expansion can bring more opportunities and benefits, which helps to enhance the status and strength of enterprises.
On the other hand, expanding too quickly also brings risks and burdens. Evergrande Group faced difficulties due to lack of funds before going public, which also illustrates the debt problem caused by expansion. Xu Jiayin's ambition and desire for Liufang Bai Shi kept him from expanding, which led to more risk accumulation. In contrast, Wang Jianlin chose a more robust strategy to improve the efficiency and competitiveness of the enterprise through slimming. This completely different strategic choice also makes people think deeply about the path of enterprise development. In the current economic situation, if enterprises want to develop for a long time, they need to live not only long, but also live long. Living long means that companies need to survive in a competitive market and maintain stable profitability.
Living long means that enterprises need to have long-term development plans and strategies, constantly adapt to market changes, innovate products and services, and enhance core competitiveness. The operating problems and expansion risks of Evergrande Group have given us a warning that if enterprises want to achieve long-term and stable development, they need to pay attention to capital management, risk control and strategic adjustment while expanding. In general, the expansion strategy of Evergrande Group has aroused attention and discussion from the outside world. Wu Yajun's answer makes people think about whether it is more important for enterprises to live long first or live long. The business problems faced by Evergrande Group and the various incidents involved need to be paid enough attention and investigated. Expansion is a double-edged sword in the development of enterprises, which needs to be carefully managed.
In the current economic environment, if enterprises want to achieve long-term and stable development, they need to pay attention to financial management, risk control and strategic adjustment while expanding. In the future, how will we view the development of Evergrande Group? What are your thoughts and suggestions?