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In the tide of the economy, some turbulent waves can always attract great attention from the market, especially when these waves swell two giants - Country Garden and Sunac. No one expected that just when these two giants were on the verge of a debt storm, a series of unexpected turns led them to start a tense battle to ensure the delivery of the building. This is not only a business battle, but also a test of corporate social responsibility.
The first to bear the brunt is Country Garden, a debt as high as 1. 4 trillion behemoths. In this crisis, Yang Huiyan, Yang Guoqiang's second daughter, became the person in charge of Country Garden's overall work. She eagerly declared at the internal meeting: "Even if you smash the pot and sell iron, you must ensure the delivery of the building!" This is not only a slogan, but a kind of responsibility of the family for the life and death of the enterprise. Subsequently, the Yang family transfused 41 billion blood for the group through various channels, which caused huge repercussions in the industry. What is even more determined is that Country Garden announced a shocking decision on December 12: the annual remuneration of the group's four executives was adjusted to 120,000 yuan, and various benefits for executives were cancelled. This move undoubtedly sends a strong signal: Country Garden is seeking to save itself in the crisis.
At the same time, Sunac's situation is equally grim. Sun Hongbin, the head of Sunac, who has always been known for his courage and courage, has also taken radical measures in the face of the crisis. His personal annual salary was voluntarily reduced to 240,000, and he paid 4.5 billion for the company out of his own pocket. This series of actions not only solved the debt risk of 90 billion yuan, but also reduced the debt of 4.5 billion US dollars through debt-to-equity swap. Sunac's actions are undoubtedly showing their determination and ability to the outside world to fight this unexpected debt storm.
However, behind these two companies, there are more thought-provoking details. For example, in July this year, Li Changjiang, the president of Country Garden Services, suddenly liquidated his stocks, cashed out HK$28 million, and subsequently resigned. The move has caused widespread speculation in the market. Immediately afterwards, Yang Huiyan was also revealed to have donated 20% of the shares of Country Garden Services worth 6.4 billion Hong Kong dollars to the Guoqiang Foundation. While these moves may seem reasonable on the surface, in a tight market environment, they inevitably evoke deeper speculation. Especially a week after the debt crisis broke out in Country Garden, Yang Huiyan's donation behavior caused even more waves. This is not only a financial operation, but also a strategic layout made by the Yang family for possible future changes.
In the whirlpool of this debt crisis, the most striking thing is the delivery performance of the two major real estate companies. In 2022, Country Garden delivered 700,000 homes, and in the first 11 months of 2023, they have completed the delivery of 500,000 units. Such achievements can be said to be far ahead in the entire real estate industry. Sunac is not far behind, delivering 180,000 homes last year and 22 in the first 11 months of this year. 70,000 sets. Behind these figures, it is not only the business performance of the two companies, but also the embodiment of their unremitting efforts and commitment in the crisis.
However, the real challenge for Country Garden and Sunac has only just begun. Especially for Country Garden, in the face of the future task of 400,000 sets of guaranteed delivery, the pressure is great. Judging from the sales from August to November this year, the average monthly sales of Country Garden are only about 6 billion, and if this trend continues until next year, the annual payment will be less than 80 billion. In the face of the need for at least 100 billion funds to complete the task of ensuring the delivery of the building, Country Garden's capital chain will face a great test.
Although Sunac's situation is relatively optimistic, it should not be underestimated. 1 in Sun Hongbin's hand. With 38 trillion assets, after deducting 1 trillion in liabilities, there seems to be plenty of leeway. Most of Sunac's high-quality assets are located in first- and second-tier cities, which provides support for them to solve the debt crisis to a certain extent. For example, the total value of Beijing Sunac No. 1 and several other unsold projects reached 150 billion yuan, which provided a certain buffer for Sunac's capital chain.
But in the cruel competition of the market, both Country Garden and Sunac are facing the same problem: whether they can hold on to the debt storm to the end. In the process, their every move is closely watched by the market and the public. This is not only a response to a financial crisis, but also a test of corporate responsibility and credibility.
Ultimately, regardless of the outcome, the performance of these two companies will be an important case for China's real estate industry. In the face of huge economic pressure and market uncertainty, their coping strategies and measures will provide an important reference for other enterprises. At the same time, it is also a reminder that all companies, regardless of size, should always be prepared to respond to sudden crises, and at the same time take their due responsibility to society.
The most crucial passage in this story is about Yang Huiyan and Sun Hongbin's response to the crisis. This is not only a test of their leadership skills, but also a test of their moral responsibility. Their decisions and actions affect not only the future of the company, but also the fate of thousands of families. In this case, as leaders, they need to find a balance between maintaining the survival of the business and fulfilling their social responsibilities. The realization of this balance requires not only the wisdom of decision-making, but also a deep understanding and commitment to social responsibility.