Country Garden's crisis has brought us a profound reflection. In the context of the changing real estate industry, not only Country Garden, but also the entire real estate market is also experiencing huge challenges. This is not just a problem of one company, but also a problem of the operation model of the entire industry.
First of all, let's revisit Country Garden's entrepreneurial journey. The founder, Yang Guoqiang, an ordinary person born in Foshan, Guangdong, has developed a small property company into a real estate giant through unremitting efforts. His story has inspired countless people and proved that the Chinese dream can be realized. However, success comes with risks, and Country Garden's debt problem is now in the spotlight.
In 2007, Country Garden was listed in Hong Kong and became a leader in the industry. However, going public is not the end, but a new beginning. The short-term surge in the company's stock price has brought huge financing, but it has also buried hidden dangers. Country Garden is not only expanding rapidly in China, but has also begun to venture into overseas markets, such as Malaysia and other places. This diversified layout may seem like a beautiful landscape, but it increases the complexity and risk of management.
Social philanthropy has always been an important mission of Country Garden. Yang Guoqiang has been committed to supporting education, donating to many colleges and universities, and actively participating in natural disaster relief. However, social philanthropy has also been challenged amid the growing debt problem. The company's priority is to deal with debt and secure the rights and interests of homebuyers, financial institutions and suppliers.
By the end of 2022, Country Garden's total debt was as high as 1.44 trillion yuan, of which various debts such as contract liabilities, interest-bearing liabilities, trade and other payables emerged one after another. Unlike other real estate companies, Country Garden's biggest creditors are home buyers, which means that the interests of many ordinary families are closely related to the company's future. This is a complex situation that requires governments, businesses and society to work together to find solutions.
Country Garden's debt problem is not only a problem for one company, but also a problem for the entire industry. The real estate industry has long relied on high leverage and high turnover, and this model has exacerbated the instability of the industry to a certain extent. In the context of government policy adjustments, real estate companies need to be more cautious and sustainable in their development strategies, reduce leverage, and improve risk resilience.
Country Garden's crisis reminds us that while entrepreneurship and passion are important, risk management and sustainability are even more critical. It is hoped that Country Garden can overcome difficulties and protect the rights and interests of home buyers, and at the same time call on the entire industry to reflect and improve to build a healthier and more stable real estate market. Only in this way can we ensure that the interests of the people are not harmed and the industry can develop sustainably and healthily.