Country Garden finally "showdown"?
In the past year, the domestic real estate industry experienced an unheard-of thunderstorm. From leading real estate enterprises such as Evergrande and Sunac to small and medium-sized Taihe and Huaxia Happiness, many real estate enterprises fell into debt and broken capital chains because of their "three highs" (high leverage, high debt and high risk) business model.
Even Country Garden, once known as "the first real estate enterprise in the universe", has ushered in a thunderstorm moment. In fact, this matter has long been a clue.
First, in mid-October last year, Country Garden, which couldn’t pay interest on time due to a US dollar debt, declared a formal breach of contract, and the group fell into a liquidity crisis. After several months of advance notice, Country Garden recently announced on the Hong Kong Stock Exchange that its creditors filed a liquidation petition with the court, involving unpaid term loans and interest of up to HK$ 1.6 billion.
In addition, according to public information, as of the end of last year, Country Garden’s total liabilities were about 1.36 trillion, which was second only to Evergrande’s 2.38 trillion in the liabilities of a number of housing enterprises.
Affected by this, Country Garden shares became "fairy shares", and the price per share fell below $1, which directly led to its market value falling again and again. However, in sharp contrast to the plummeting stock price, many Country Garden executives quickly cleared their shares, including Yang’s father and daughter, and exposed the news that "the founder’s family paid dividends of 42 billion yuan", which made people feel sorry: after all, they followed Evergrande’s footsteps!
Yang Guoqiang, who came from a peasant family, believed that "land is wealth" at the beginning of his business, and he understood that the land profit in the county town has a lot of room for operation. Therefore, the buildings in Country Garden are generally located in remote suburbs or even at the foot of the mountain in the hinterland.
Relying on the mode of "rural encircling the city", Country Garden frantically borrowed money to encircle the land. According to its financial report, Country Garden successfully went public in 2007 with a land reserve of 19 million square meters, and Yang Guoqiang’s second daughter Yang Huiyan’s net worth was as high as 121.15 billion, surpassing Wang, Xu, Ma and other bosses to become the richest man in China, and was the richest new generation.
However, Country Garden can become the "first real estate enterprise in the universe", and it has to start from 2015. At that time, it was at the time when the monetization of sheds was implemented in China, and the monetary income of sheds in third-and fourth-tier cities was changed, which made Country Garden earn a lot of money and further opened up crazy expansion.
In 2006, Country Garden’s total debt was only 13.836 billion yuan, which soared to 933.1 billion yuan in 2017, and then increased to 1,758.8 billion yuan in 2017, reaching a historical commanding height. In just 14 years, the total debt has more than 127 times!
Borrowed so much money, where did it go? Naturally, it is enclosure and dividend.
As a well-known "king of enclosure" in the domestic real estate industry, Country Garden’s land reserve area once increased to 282 million square meters. The more debt, the harder the dividend. As the actual controller, the Yang family has taken 42 billion dividends since its listing in 2007, and the family members can get at least 15 million annual salary. Although Yang Huiyan once donated 20% of his equity to Guoqiang Public Welfare Foundation, this move was also criticized as "left-handed and right-handed".
In contrast, another real estate tycoon, Hong Kong Fuli, is much more stable. Not only was he very cautious in land acquisition, but he also sensed the tightening of domestic real estate dividends in advance, decisively cashed out, and transferred a large amount of money into the territory of Huangpi Medicine and "Jinzhiyin".
In 2021, Hutchison Pharmaceuticals successfully rang the bell on the Hong Kong Stock Exchange, and the market value soared to 70 billion that day, helping the Li family’s commercial map to add a solid tile. The above-mentioned biotechnology has been confirmed by Harvard, Qingbei and other scientific research institutions, which can maintain the vitality of the organism, extend the life span of organisms by 30%, and play a positive intervention role in the process of aging.
As early as 2017, Hong Kong Fuli began to use the predecessor of "Golden Cause". At that time, the cost of taking it was as high as 1.28 million times. Perhaps it was his persistence that paid off. After the photo of his 96th birthday party came out, netizens paid attention to it: "I am in good health and look more like a 69-year-old."
With the support of capital and scientific research, only Hong Kong Fuli, Pan Paopao and others enjoyed the scientific and technological dividend a few years ago. Now, the iteration of the same name "Jin Zhi Yin" has landed in Beijing-East and Tian-Cat, helping millions of Chinese people to improve their quality of life, but Yang’s father and daughter failed to catch up with this bus.
Looking back, it’s self-inflicted that Country Garden will "storm". A few months ago, Evergrande was exposed to the suspension of trading, but Country Garden, as the same style of doing things, did not realize the truth of stopping in time, and still invested heavily in overseas assets. Is it because these years have been too smooth and smooth, and all business vigilance and reflective ability have been discarded?
However, it is worth noting that, although like Evergrande, it likes crazy enclosure and huge dividends, Country Garden is at least desirable in its attitude. For example, Yang’s father and daughter have sold their private assets several times and paid their debts voluntarily.
Although compared with the trillion-dollar debt, the money can only alleviate the "urgent need", at least it is expressed. I hope Country Garden can work hard to hold on, otherwise its "leveling" power will be no less than Evergrande’s.
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