Source | China Economic Net
Edit | Chihiro
On April 14, Vanke issued an announcement in response to a number of recent incidents.
encountered phased business difficulties
There is no management self-interest
Vanke said that from the perspective of the overall operating situation, Vanke has indeed encountered phased operating difficulties, and its liquidity is under pressure in the short term. However, the company has formulated a package of plans to stabilize operations and reduce debt, which can properly resolve these periodic pressures.
Vanke said that the company will be based on "self-help", based on its own capabilities and resources to self-resolve risks, all the business in hand will be reopened and reviewed, sorted out by classification, and formulate targeted plans. Make full use of the existing financing tools, and make good use of a series of policy-based financing tools issued by the central government that are conducive to the industry's risk resolution. During this period, the company received understanding, support, guidance and assistance from financial institutions. The ultimate goal of these plans is what the company's executives said at the results conference, and the company is confident that the debt scale will drop by 100 billion yuan this year and next year, and the debt risk will be substantially resolved.
In response to the recent negative public opinion, Vanke responded that there is no management seeking personal gain. There may be some past models and practices that are no longer suitable for the new development stage of the industry, and the company will comprehensively review and sort out and formulate corresponding strategies. If a violation is found, the company will actively rectify it, and if it is found to be in violation of the law, the group will not tolerate it.
Vanke said that the company also made a detailed report with the Shenzhen State-owned Assets Supervision and Administration Commission and major shareholders on the above relevant situation.
Detailed response to the reported incident of Yantai Vanke
In response to the recent market attention to the reported incident of Yantai Vanke, Vanke responded that the company reported in real name this time is mainly a subsidiary of Yantai Riying Group whose actual controller is Li Jun.
Vanke disclosed that Yantai Vanke and its partner Li Jun (hereinafter referred to as "Yantai Partner") have cooperated in the development of real estate projects for nearly 10 years and have cooperated in 7 projects. Since 2021, due to the overall market environment, the sales of many projects in Yantai have fallen short of expectations, and the profits have not reached the initial feasibility study indicators. In order to ensure the delivery and normal operation of the project, the funds of the project company cannot be allocated according to the wishes of the Yantai partners. At the same time, the Yantai partner, as a shareholder, ignored the needs of the project company's construction, delivery and normal operation, and put forward a huge demand of 1.6 billion yuan without reasonable basis. Although Yantai Vanke and Yantai partners have communicated many times, they have never been able to reach an agreement.
Regarding the content of the Yantai partner's report, Vanke said that the Yantai whistleblower reported to the Yantai public security organ in 2023 on the issue of Vanke's misappropriation of funds, which was accepted. After three months of investigation and evidence collection, the Yantai public security organs made a decision in November 2023 not to file the case. The cooperation agreement clearly stipulates in the cooperation agreement that "other funds of the project company shall be transferred to the fund management account of Vanke Co., Ltd. immediately". The transfer of funds from the Yantai project company involved in the report belongs to the overall management of the project funds by Vanke in accordance with the cooperation agreement.
Vanke said that the tax authorities had inspected Yantai Vanke, and Vanke had not refused to pay the accounts, and the tax authorities had not determined that Yantai Vanke had the subjective intention to evade taxes.
Vanke said that there is no so-called private interest of Vanke's management team in the cooperation project, and Vanke does not convey benefits to senior executives through the co-investment system. Since 2014, Vanke has been implementing the project co-investment program, and according to the existing system, Vanke's directors, supervisors and senior management are not allowed to participate in the co-investment, let alone obtain any personal benefits from the cooperative projects. Employees participate in co-investment, and the co-investment plan clearly requires them to take out their own funds and invest together with the company. With the investment funds and the company's investment and the partner's investment risk sharing, income sharing, the employees' co-investment rights and interests are all minority shareholders, equal rights and responsibilities with other shareholders, and there is no particularity. Regardless of whether it is a wholly-owned project or a cooperative project of Vanke, the co-investment model, terms and requirements are also the same.
In response to the economic dispute with the partner, Yantai Vanke has filed a civil lawsuit in the Yantai court in February 2024 to assert its legal rights in accordance with the law. The case has entered the formal trial stage, and the court has ruled to take litigation preservation of the partner's assets in accordance with the law. Vanke Group is filing a civil lawsuit with the court and filing a criminal report to the public security organ for the defamation of the company and the chairman of the board of directors on the Internet in April 2024.
With regard to the Tangshan Jade Blue Mountain Project reported by the Yantai partner, Tangshan Vanke has reached an enforcement settlement with the partner in 2022 in accordance with the judgment in favor of the lawsuit, the offset assets have been delivered in an orderly manner, and the Blue Mountain Project has been operated and constructed normally and delivered with high quality.
Respond to the whereabouts of Vanke's relevant management personnel
Regarding the relevant situation of Xiao Jin, general manager of Jinan Vanke, who was taken away by the public security organs, Vanke said that Xiao Jin was a personal case and had nothing to do with Yantai's report. The Group has arranged for the Beijing area and Jinan Company to communicate with the Jinan Political and Legal Committee and the police investigating the case. The police said that Xiao Jin's case was his personal case and had nothing to do with the Yantai report. The Jinan Municipal Legal Committee said that the Xiao Jin incident was a personal issue that should be distinguished from the normal business activities of Vanke Group and Jinan Vanke, and that it would continue to support Vanke's business development in Jinan.
Regarding the recent rumors mentioning the situation of Cai Ping, Wang Runchuan and other leaders of Vanke who went abroad and did not return, Vanke responded that Cai Ping, the former chief partner of Central China, was born in the United States, and now he has reached the stage of receiving education and needs family companionship. He submitted his resignation in 2023 and was approved by the company.
Wang Runchuan, the former lead partner of the Headquarters Collaboration Center, resigned due to his study in Hong Kong and currently lives in Shenzhen.
The Group's management is traveling abroad on official business as normal. Zhu Jiusheng, president of the group, returned from Hong Kong to inspect the project on April 14. Zhu Baoquan, co-president of the group, flew to Japan at noon on April 14 for business inspection.