On the evening of April 14, Vanke announced that it had accepted the survey of some investors on the same day, and Yu Liang, chairman of the board of directors of the company, Zhu Jiusheng, president of the company, and Zhu Xu, secretary of the board of directors, participated in the reception and answered the questions raised by the research institutions.
Talking about business issues:
The company did encounter phased operational difficulties
Debt risks will be substantially resolved this year and next
Vanke said that first of all, from the perspective of the overall operating situation, Vanke has indeed encountered phased operational difficulties, and its liquidity is under pressure in the short term. However, Vanke has formulated a package of plans to stabilize operations and reduce debt, which can properly alleviate these temporary pressures. Based on "self-help", Vanke will first self-resolve risks based on its own capabilities and resources, reopen and review all the businesses in hand, sort them out by category, and formulate targeted plans. Therefore, the "package" is not a single package, but a series of programs.
Secondly, Vanke has made full use of the existing financing tools, and has actively mobilized all front-line forces to make good use of a series of policy-based financing tools issued by the central government that are conducive to the industry's risk mitigation.
During this period, Vanke received understanding, support, guidance and help from financial institutions, and Vanke was grateful. The ultimate goal of these plans is what Vanke mentioned at the results conference, and Vanke's debt scale will drop by 100 billion yuan this year and next, and the debt risk will be substantially resolved. Vanke solemnly promises that all projects of Vanke Group will be delivered on time and with high quality.
In addition, as for the question of "what causes the current challenges?", Vanke said that although there are reasons for changes in the external market, it is more due to the fact that the company itself still maintains the inertia of expansion and fails to adjust in time when the macro situation and industry conditions have undergone major changes.
Talking about the issue of public opinion:
The tax authorities conducted an inspection of Yantai Vanke
There is no refusal to pay accounts by Vanke
In addition, Vanke also explained the public opinion that has been more concerned recently.
- The first is the real-name report on Yantai.
The company reported in real name this time is mainly a subsidiary of Yantai Riying Group whose actual controller is Li Jun. 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. The Yantai partner subsequently reported to the government, public security, taxation bureau, China Securities Regulatory Commission, Shenzhen Stock Exchange and other institutions, and was exposed in the media many times.
(1) The Yantai whistleblower reported to the Yantai Public Security Bureau in 2023 on the issue of Vanke's misappropriation of funds, which made a decision not to file the case in November 2023 after three months of investigation and evidence collection
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. After three months of investigation and argumentation, the public security department issued a notice of "not filing the case" in November 2023.
(2) The tax authorities conducted an inspection of Yantai Vanke, and Vanke did not refuse to pay the accounts, and the tax authorities did not determine that Yantai Vanke had the subjective intention to evade taxes
In 2023, the Yantai whistleblower reported Yantai Vanke's tax evasion to the tax authorities. Starting from September 2023, the Yantai Municipal Taxation Bureau will conduct full-process and full-tax inspections on 11 projects of Yantai Vanke. The communication between tax and enterprise is smooth, Yantai Vanke does not refuse to pay accounts, and Vanke Group has dispatched 7 staff members in Beijing to cooperate with the inspection, all account books have been handed over to the inspection bureau, and relevant auxiliary materials have been provided according to the inspection needs. The tax authorities and Yantai Vanke exchanged preliminary inspection opinions, and at present, the tax authorities have not determined that Yantai Vanke has the subjective intention to evade taxes. Yantai Vanke will uphold the principle of seeking truth from facts, actively cooperate, and believe that governments at all levels and tax authorities will make inspection conclusions in accordance with laws and regulations, objectively and fairly.
Vanke does not transfer benefits to 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. The co-investment system embodies the principle of revenue sharing and risk sharing. In the first few years of Vanke's co-investment plan, the market was booming, the company and its partners received good returns, and employees and investment funds also received benefits. However, in recent years, the market situation has changed, the income level of the company and its partners has declined, and the employees have also suffered the same business results, and some of the co-investments have suffered losses, which reflects the original intention of the team and investors to share profits and risks.
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.
Vanke Group and Yantai Vanke will uphold the principle of seeking truth from facts and believe that the judiciary will make conclusions objectively and fairly. If any illegal operation is found in the course of operation, Vanke Group will resolutely and thoroughly rectify it under the guidance and requirements of government departments. If an individual or its subsidiaries act in violation of the law, Vanke Group will not tolerate it and accept the judgment and handling of the judicial authorities.
- Second, what is the specific situation about Xiao Jin, general manager of Jinan Vanke, being taken away by the public security organs?
Xiao Jin is a personal case and has nothing to do with the Yantai 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 is a personal problem, which should be distinguished from the normal business behavior of Vanke Group and Jinan Vanke; it will continue to support Vanke's business development in Jinan and help implement the strategy of "strengthening the provincial capital".
- Third, what is the situation of Cai Ping and Wang Runchuan, the leaders who went abroad and did not return?
It is rumored that after Cai Ping, the head of Central China, went to the United States and did not return, all the vice presidents and above of Vanke Group are currently under border control. The actual situation is 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 to be accompanied by his family. 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, has just returned from an inspection project in Hong Kong today (note: April 14). Zhu Baoquan, co-president of the group, flew to Japan at noon on April 14 for business inspection.
Source: Southern Metropolis Daily (nddaily), N video report