21 Boao Express 丨 Kaisa Liu Ce: In the darkest moment of the real estate industry, we should make a wish, make a blessing, become a superior and so on

21st Century Business Herald reporter Wu Shuying Intern Yang Jingyi reported from Shanghai

On September 18, 2021, the Boao 21st Century Real Estate Forum was held in Shanghai. At the Six-Party Talks on Shengxiang-China Real Estate, Mr. Liu Ce, Vice President and Chief Economist of Kaisa Group Holdings, expressed his views on the theme of "Growth Boundaries under Strong Supervision: Security, Speed and Expectations".

Liu Ce described the current real estate industry situation in one sentence, "Now is the darkest moment of real estate, pessimists are always right, but optimists can survive." ”

Liu Ce believes that there is currently a paradox in real estate. "The scale of debt of many real estate enterprises far exceeds the carrying capacity of the sales scale, so if you want to develop safely, you need to have a faster growth rate, so that the sales scale is compatible with the scale of debt." However, the current market is a bit in the stage of micro-downturn, which requires companies to slow down, and too aggressive in investment will collapse. In the past, I could control the rhythm a little, and it seemed safe, but it actually became more unsafe. ”

In order to solve this contradiction, Liu Ce said, "Our current approach is that we pay more attention to doing a good job in refined operation, and the core point of refined operation is to ensure your speed, but also to ensure your safety, and at the same time to ensure your profits." ”

Liu Ce put forward the view of "asking for profit from time" in the talks, "after taking the land as soon as possible, sales will be generated soon, and there is a certain margin to support development." Synchronously to the time to profit, to cash flow to profit, the first to ensure safety, the second to ensure growth, the third to balance these rhythms, this is the measure we are now taking. ”

Liu Ce also added, "As long as the payment is fast and the development is fast, it must be safe." For large enterprises, the core cost is the financial cost, the cost is low when the time is fast, and the financial cost is offset by fast turnover. Once it's coming down, generating cash flow over a certain cycle means you have extra money to support your development. It is necessary to use micro-model reforms to meet the challenges of large industries. ”

When talking about the future development of the industry, Liu Ce said that enterprises that survive after the explosion should "make a wish to make a wish, make a medium blessing, and become a superior thing", reduce your expectations in the future, and actually do more than you expect. "As long as you can survive, life may be difficult now, but there will always be a comfortable day in the future."

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