Country Garden is going through the biggest test since the company's establishment. This is what the company said recently, and the company is in the midst of its biggest crisis since its inception. But the more critical the moment, the less we can afford to take it lightly.
According to the enterprise investigation report, Country Garden Life Services Group Co., Ltd. added that on October 17, two news about the equity freeze came out. Country Garden Service is a real estate service company under Country Garden and an H-share listed company. Just a week ago, Li Changjiang, president and CEO of Country Garden Services, announced the departure of the president, causing heated discussions.
On October 10, Country Garden announced that in the absence of significant improvement in the sales environment of the industry, the realization and sales of the Group's assets are facing major uncertainties, and it is expected that the Group's liquidity will remain tight in the short and medium term. Deadlines. The principal amount of HK$470 million under the outstanding part of the debt is actively promoting external debt management measures.
In other words, Country Garden has admitted that it may not be able to pay this debt, and directly showed the hole card. Some say it's a showdown, but it's not known if it's gotten to this point. I hope the showdown will be completed, but it won't be a showdown.
It is understood that at present, Yang Guoqiang and others are still financially supporting Country Garden. According to surging news reports, multiple Country Garden insiders confirmed that the Yang family, which owns the founder and Yang Guoqiang, recently provided Country Garden with an interest-free loan of $300 million. At a group executive meeting on October 9, Country Garden President Mo Bin revealed that the Yang family is also selling private jets.
There are two diametrically opposed views on Yang's sale of private jets to pay off debts. Country Garden is believed to be reduced to selling private jets to pay off debts. Others believe that Country Garden is still very responsible in selling private jets. Pay off debts.
Anyway, I wish I could have thought better. On the one hand, Country Garden actively promotes foreign debt management measures, and on the other hand, it also makes every effort to strengthen sales collection. But the ideal is full, the reality is thin.
From January to September 2023, the company achieved share sales of about 154.98 billion yuan, down 43.9% from 65.4% in the same period in 2021. Among them is the monthly inventory sales volume for September. In 2023, it will be about 6.17 billion yuan, falling for the sixth consecutive month, down 80.7% year-on-year and 86.5% year-on-year.
In other cases of limited financing, the liquidity of real estate enterprises mainly depends on sales revenue. However, so far, the sales performance of real estate enterprises is not satisfactory. Country Garden realized this early on.
Previously, Country Garden reported that the company faced its biggest difficulties since its establishment. Although the company has made every effort to save itself, the entire market has yet to recover. The absolute size of the industry has declined. It will take time for confidence in capital markets to recover. The overall work pressure of the company has increased. The increase continues unabated, and it is expected that there will be huge losses and phased liquidity pressure in the first half of 2023.
The market does not leave much time for Country Garden, but lenders and home buyers are watching closely, can Country Garden deliver the property, can it deliver on time and in quality? Not only real estate, but also people's livelihood.
The company undertakes to assume the responsibilities of large companies and to do everything possible to guarantee delivery and performance. Not long ago, Country Garden announced its latest delivery figures. As of September 15, 2023, Country Garden has delivered a total of 381,000 residential units. The delivered projects cover 231 cities in 31 provinces, and some projects have been delivered ahead of schedule. Country Garden plans to ship about 700,000 units this year.
It is very good to see a guaranteed delivery time, which is also the biggest wish of many buyers. But delivery guarantees are not only about quantity, but also about quality. At a time when Country Garden is already facing many difficulties, we cannot let the quality of the property be a hindrance. But in this turbulent period, some cities have exacerbated the chaos.
According to Red Star Video news on October 17, the owner of Wangxitai in Tangyin Country Garden in Henan Province recently released a video saying that his cement floor fell off with a shovel, suspected of quality problems. Floor tile problem. This incident has aroused widespread concern in the society. How could Country Garden make such a low-level mistake? Netizens like to use five-star hotels to satirize this matter. While I know it's a common problem for many companies, I can't deny it.
Although Country Garden's quality is still recognized, there have been many quality problems across the country. These problems not only infringe on the legitimate rights and interests of home buyers, but also bring extremely negative impact to society. This is not just a developer's problem, but one that the entire real estate industry should be wary of.
Country Garden is indeed facing the biggest dilemma. Home buyers are the most vulnerable these days, but they are also very tolerant. Not very demanding. As long as the house is delivered on time and with high quality. If you do delay for objective reasons, do as you wish and explain it to the owner. , we cannot avoid the problem, but solve it. A small positive outcome at this point can give you positive confidence in the rules of buying a home and the market, so don't let it go bad.