On the afternoon of April 30, at Vanke's 2023 annual general meeting of shareholders, Zhu Jiusheng, president of Vanke, revealed to the media that in the context of tight cash flow, Wang Shi will automatically give up his pension of 10 million yuan in 2023 and spend a difficult time with the company.
Previously, on March 28, Vanke disclosed the 2023 annual results announcement, announcing that Yu Liang, chairman of the board of directors, Zhu Jiusheng, president, and chairman of the board of supervisors would voluntarily receive a monthly salary of 10,000 yuan (before tax) from now on, and at the same time voluntarily gave up the 2023 annual bonus.
In order to cope with the decline in performance and preserve cash reserves, Vanke decided to cancel the dividend in 2023, breaking the record of 31 consecutive years of dividends.
On April 14, Vanke officially admitted that it had staged operational difficulties and its liquidity was under pressure in the short term. Vanke said it would first base itself on "self-help" and had formulated a package.
Wang Shi's pension is 10 million a year
After experiencing the "Baowan dispute", Shenzhen Railway became the major shareholder of Vanke in 2017. Wang Shi did not participate in the nomination of the new board of directors and officially retired from Vanke in June 2017.
According to Vanke's 2017 annual report, from 2010 to 2016, Wang Shi, as the chairman of the board of directors, received an average annual after-tax economic profit bonus of 16.7983 million yuan.
In the June before leaving office in 2016 and 2017, Wang Shi's total pre-tax remuneration was 9.99 million yuan and 5.947 million yuan respectively, or it can be speculated that his total remuneration for the whole year of 2017 was about 11.9 million yuan.
According to the annual report, in order to fully affirm Wang Shi's irreplaceable contributions to the company in the past 33 years, the board of directors appointed Wang Shi as the honorary chairman of the board of directors after deliberation. As the Honorary Chairman, Wang Shi is not a director, supervisor or senior management of the Company and does not participate in corporate governance.
Although he did not participate in the company's operation and governance after leaving office, Wang Shi was still able to receive a "retirement pension" from Vanke.
After retiring, according to Wang Shi said frankly in a certain program: "There is nothing inconvenient to say about the annual income, it is the pension, the identity of the honorary chairman for life, this salary is still unchanged according to the original, which adds up to more than 10 million." ”
Wang Shi also revealed in a talk show before that he doesn't have a lot of money, and his savings are only tens of millions.
Although Wang Shi gave up the pension he received from Vanke, his retirement was still worry-free, as his wife, Tian Pujun, was also very successful. Tian Pujun is a public figure with multiple identities such as producer, actor, and writer.
Wang Shi mentioned in a live broadcast in early January this year that he had a 3-year-old daughter, and revealed that when they met, Tian Pujun had more cash deposits than him, and humorously said "If you talk about sugar daddy, it should be me to her."
Vanke's three steps out of the predicament
Vanke's latest financial report shows that its operating income in the first quarter of 2024 was 61.594 billion yuan, a year-on-year decrease of 10.05%, with a net loss of 362 million yuan, compared with a net profit of 1.446 billion yuan in the same period last year.
Vanke disclosed in the report that the net profit loss was mainly affected by the decline in the scale of settlement and the decline in the gross profit margin of the development business.
In an investor survey on April 14, Vanke's management admitted that the company had indeed encountered phased operating difficulties and its liquidity was under pressure in the short term.
On the afternoon of April 30, Vanke held its 2023 Annual General Meeting of Shareholders in Shenzhen, at which Yu Liang revealed the specific measures taken by Vanke to get out of the predicament, including three steps:
The first is "debt reduction", Vanke will reduce interest-paying debt by more than 100 billion yuan in the next two years, and its total interest-paying debt will be reduced by more than half in the next five years.
Secondly, to complete the "transformation of financing model", Vanke will gradually shift from a model of unified borrowing and repayment and subject credit to a financing model based on project and asset credit.
Finally, it is necessary to complete the "focus on the main business". Free up limited resources, do a good job in strengthening the three main businesses of comprehensive residential development, property services, and rental apartments.
Yu Liang explained in detail a package, which mainly includes two stages. The first stage is to firmly slim down, adjust the financing model, and degrade the risk. Specifically, in addition to the three main businesses, it will withdraw from other businesses and clean up and transfer financial investments that are not main businesses. Resolutely and vigorously promote the transaction of bulk assets such as commercial offices, and plan to complete 20 billion yuan per year. At the same time, it took the initiative to complete the transformation of the financing model.
In the second stage, Vanke will focus on its main business, refine its business, and become a benchmark for products and services in the industry. Yu Liang said that the package is not only a plan for shrinkage and pressure drop, but also a plan for development. The first stage of slimming is to gather resources and lay the foundation for the second stage.
Executives collectively voluntarily cut their salaries, and for the first time in 31 years, dividends were canceled
On the evening of March 28 this year, Vanke disclosed the 2023 annual results announcement, announcing that Yu Liang, Chairman of the Board of Directors, Zhu Jiusheng, President, and Chairman of the Board of Supervisors would voluntarily receive a monthly salary of 10,000 yuan (before tax) from March 28, 2024, and voluntarily give up the 2023 annual bonus. The total pre-tax remuneration of Yu Liang, Zhu Jiusheng and Jiefeng in 2023 will be 3.574 million yuan, a significant decrease from the past.
It is understood that the remuneration system of Vanke's senior executives consists of three parts: fixed salary, annual bonus and economic profit bonus. In 2023, the pre-tax remuneration of senior executives only includes fixed remuneration and the company's social security and provident fund contributions for them. For example, Yu Liang's pre-tax remuneration in 2023 will be 1.27 million yuan, including a fixed salary of 1.15 million yuan and social security and provident fund of 120,000 yuan.
In order to cope with the decline in performance and preserve cash reserves, Vanke decided to cancel the dividend in 2023, breaking the record of 31 consecutive years of dividends.
At the performance promotion meeting on March 29, Zhu Xu, secretary of the board of directors of Vanke, said that the decision was made after comprehensive consideration of the opinions of debt and equity investors, and aimed to ensure the company's operational safety.
At the general meeting of shareholders on April 30, Zhu Xu once again responded to the dividend issue and said that the company's future dividend plan will comprehensively consider factors such as the market environment, the company's development needs and shareholders' opinions. Vanke will be committed to promoting the company's transformation to high-quality development and laying the foundation for the resumption of dividends.
The content is synthesized from the financial community, China Fund News, 21st Century Business Herald, etc
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