Country Garden 4 executives cut their salaries from 3 million yuan to 120,000 yuan per year

Every reporter: Huang Wanyin Every editor: Wei Wenyi

On December 12, Country Garden (HK02007, share price HK$0.78, market value HK$21.831 billion) issued a voluntary announcement, combined with the actual business needs of the industry and the company, the company's executive directors Yang Huiyan, Mo Bin, Yang Ziying and non-executive director Chen Chong took the initiative to request a reduction in remuneration, and has signed a supplementary agreement and supplementary appointment letter with the company on November 1, 2023, adjusting the latest annual remuneration as directors to 120,000 yuan, that is, a monthly salary of 10,000 yuan.

According to the announcement, Yang Huiyan, Mo Bin, Yang Ziying, and Chen Chong's annual salaries before adjustment were 370,000 yuan, 3 million yuan, 2 million yuan and 370,000 yuan respectively, and the annual salaries of the four people after adjustment were 120,000 yuan.

The reporter of "Daily Economic News" learned that at present, Country Garden is actively taking self-help measures, doing its best to open up sources and reduce expenditures, reduce expenditures, and concentrate resources to ensure delivery. Country Garden Group has made several adjustments to its executive compensation in the past two years, and by 2023, the executive compensation will decrease by 86% compared with 2021, including the vice president of the company's headquarters, the general manager of the functional center and above, and the regional president.

In addition, Country Garden has cancelled the allocation of all senior executives' cars, and when there is a need for work, it can apply for official dispatch of cars or use its own cars to achieve intensive control and cost reduction of vehicle expenses. In addition, treatments such as reimbursement of medical examinations for senior executives and free canteens for senior executives have also been abolished.

On December 8, Country Garden held a December group management meeting, at which Yang Huiyan, chairman of the board of directors of the group, said that the company will have three main tasks in the next 12 months: ensuring delivery, ensuring operation and guaranteeing credit. "The family will definitely sell iron to support the company, and the company will try to explore an effective path to resume normal operations as soon as possible. ”

The organizational structure was readjusted

According to statistics, in the first 11 months of this year, Country Garden Group has delivered a total of about 500,000 houses, with a cumulative delivery area of 60.43 million square meters, involving 31 provinces and 240 cities. Among them, some projects in Shandong, Shanxi, Jiangsu, Anhui and Guangxi were delivered ahead of schedule, and some projects in Hebei, Hubei and Hunan were all delivered.

Yang Huiyan revealed that in the next 12 months, the delivery challenge will enter the deep water area, and the delivery volume of Country Garden is expected to exceed 400,000 units in 2024, which is still huge. "Ensuring delivery is a very difficult but very important task, and I hope that everyone will be ready to fight, attach great importance to it, and do a good job of pre-planning. ”

"It's not just about delivering, it's about delivering our house in quality and quantity. "In the face of the huge number of delivery tasks, Country Garden has not relaxed its requirements for delivery quality, insisted on one-stop service, insisted on improving the quality of the project with strong base actions, insisted on timely delivery, and strived to achieve all-round high-quality delivery.

Mo Bin, President of Country Garden Group, emphasized at the meeting, "Ensuring delivery and safety and quality is the bottom line of the company, and we must do a good job in bottom line management, which is also the bottom line of the company's survival." ”

In November 2023, Country Garden achieved a contracted sales amount attributable to the Company's shareholders' equity of approximately RMB6.11 billion, and a contracted sales floor area attributable to the Company's shareholders' equity of approximately 580,000 square meters.

On December 5, the reporter learned that Country Garden once again adjusted its organizational structure and merged 14 regional companies into 7 new regions.

Specifically, Hebei and Beijing regions were merged into North China, Shandong and Northern Jiangsu were merged into Lusu region, Northwest and Shaanxi regions were merged into Central and Western regions, Anhui and Zhejiang regions were merged into Zhejiang-Anhui region, Jiangxi and Fujian regions were merged into Jiangxi-Fujian region, Yunnan and Sichuan regions were merged into Sichuan-Yunnan region, and Guangxi and Jiangzhong regions were merged into Jiangzhong region.

In this regard, Country Garden said that under the current industry situation, this adjustment aims to further improve the adaptability of the organization and business, promote flat and efficient management, synergy and complementarity of available resources, and make every effort to ensure the realization of the strategic goal of "guaranteed delivery".

Yang Huiyan said at the management meeting that after certain adjustments at the group headquarters and regional project level, the company's organizational structure has reached a relatively stable stage in general. The next thing to do is to lock in outstanding talents, adhere to an open and transparent selection and employment mechanism, a talent training mechanism, and better improve the short, medium and long-term salary and incentive mechanism.

Promote a number of self-help measures

In the current market environment, sales is the real hematopoiesis. Mo Bin pointed out: "The work we are doing now is mainly to stop bleeding and blood transfusion, we must cultivate our own internal strength, survive difficult times, and strive to improve sales to achieve hematopoiesis, so that enterprises can truly return to the track of healthy development." ”

In such a difficult internal and external environment, how to improve sales performance?

The management of Country Garden Group emphasized at the meeting that first, it is necessary to grasp the key nodes of sales in December, increase the decentralization of existing buildings, mobilize all marketing, strive to break through special revitalization, and promote the return of cash. Second, it is necessary to pay close attention to the year-end collection and do a good job in the collection of overdue receivables at the end of the year. At the same time, it is necessary to plan in advance for the Spring Festival return work, and the returning areas should make sufficient preparations in advance to prepare for the supply and sales arrangements for a good start.

In the face of unprecedented difficulties, Country Garden has also promoted a number of self-help measures. In 2023, Country Garden Group made its best efforts to reduce administrative expenses, which were significantly reduced by nearly 60% compared to 2021. In addition, as the controlling shareholder, the Yang Huiyan family has fully provided financial support for the company, and has provided a total of about HK $41 billion in total support through borrowing, increasing shareholdings, purchasing bonds, and paying dividends on behalf of shares since its listing, and has never reduced its shareholdings.

Previously, 9 corporate bonds in Country Garden have reached an extension arrangement through the bondholders' meeting. After the approval of the extension plan, the maturity time of Country Garden's nine onshore bonds will be extended by 3 years. In terms of offshore debts, Country Garden expects that it will not be able to meet its repayment obligations for all offshore debts as scheduled, and hopes to solve the current difficulties by seeking an overall solution.

Recently, the management and finance department of Country Garden Group conducted a sensitivity simulation analysis of the extreme situations that the company's operation may face. Yang Huiyan reassured: "Under the conservative calculation, as long as our inventory assets are sold normally, even if we assume that we do not buy land, there is no tax reduction, and we do not consider the new contribution of one body and two wings, Country Garden will continue to maintain positive assets in the next ten years." ”

Yang Huiyan said that after completing this sensitivity analysis, she is very confident that the company will repair its balance sheet. "The repair of the balance sheet is very important, the path is very clear, it can be achieved, and everyone needs to have the confidence to work together to achieve development. ”

National Business Daily