Wang Jianlin announced that Wanda will completely bid farewell to real estate. What do you think?

When it comes to domestic rich people, I believe everyone can think of many people, such as Ma Huateng, Jack Ma, and Terry Gou. One of them is Wang Jianlin, chairman of Wanda Group. According to new information about Wang Jianlin released on the official website of Wanda Group, Wang Jianlin has been in the western region for about five days since April 2019.

For example, on April 11, Chairman Wang Jianlin attended the Gansu Provincial and Long Business Conference and delivered a speech; on April 12, Chairman Wang Jianlin met with Tianshui Municipal Party Committee Secretary Wang Rui; After having a debt of 400 billion and "selling and selling" in order to pay off the debt, Wanda Group is also very determined in its transformation. So we can still look forward to Wanda’s future.

In 1988, Wang Jianlin founded Wanda's predecessor "Xigang District Residential Development Company" in Dalian. The first goal he set for himself was to earn 100 million yuan first, and Wang Jianlin was also lucky. In the second year after setting the goal, he ushered in a project that made him earn nearly 10 million yuan-Dalian Renovation of the old urban area of ??Beijing Street in the city. It was this project that Wang Jianlin found his own business model, which was to transform the old city. After that, Wang Jianlin did this for ten years.

In 2000, during a period of rapid economic development in China, he was dissatisfied with the status quo and felt that to make employees and companies live better, the status quo must be changed. Finally, the prototype of Wanda was born, and he also developed a new model. Since then, after Wang Jianlin's vigorous expansion, Wanda has moved onto a prosperous road. In 2016, Wang Jianlin's family became the richest man in China with 1.7 trillion yuan.

Previously, Wanda Group’s official Weibo announced that Wanda would no longer develop real estate in 2019. Why is this?

In fact, Wanda’s decision not to engage in real estate is no longer a matter of the past two years. According to data, Wang Jianlin's wealth exceeded 216.916 billion yuan before August 2017, while Wanda's total assets were as high as 800 billion yuan, or even higher. This good situation only lasted until the second half of 2017. Due to the loss of the Bandar Malaysia project in Malaysia, Wang Jianlin had to sell off his properties at low prices, which also caused Wanda's losses on its books. Wang Jianlin also publicly stated that Wanda was responsible for 400 billion. After Wanda's "sell, sell, sell" situation, Wanda Group still has at least more than 200 billion in foreign debt. Therefore, Wanda's real estate projects were sold to reduce the debt ratio and repay the debt.

Since then, Wanda Group has begun to re-arrange its future. Enterprises began to gradually invest in industries such as culture and sports, and gradually transitioned from inward-looking business ideas to both internal and external management.

2018 is the year when Chinese real estate companies began to focus on "de-real estate". Many companies also began substantial transformation of their corporate businesses, and many small and medium-sized real estate companies even stopped real estate development directly. Move to other areas. This is an inevitable process for the development of China's real estate industry. Companies like Vanke have to shout "survive", and everything about Wanda's transformation seems to be clear.

Wanda’s farewell to real estate veteran Liang believes it is a very wise choice, and so far facts have proven that Wanda’s choice is correct.

Say goodbye to real estate and let Wanda travel lightly

Since 1993, Wanda has undergone four transformations. The first transformation was from Dalian to Guangzhou, from a local enterprise to a national one. Enterprise; the second transformation, that is, in 2000, Wanda switched from residential real estate to commercial real estate; the third transformation, Wanda switched from a single real estate to a commercial real estate, cultural tourism comprehensive enterprise, which has arrived in 2006 The fourth transformation is the asset-light strategic transformation that started in 2015. This transformation is essentially different from the past because this transformation is to completely leave the real estate industry.

In 2017 and 2018, many people knew that Wanda had been selling and selling, so Wanda’s liabilities of more than 400 billion also attracted everyone’s attention. If you look at Wanda’s four transformation timings above, I believe you won’t be so surprised, and you have to admire Lao Wang’s foresight. The sale we started to see in 2017 should have been planned by Lao Wang in 2015. Although some projects such as culture and tourism have indeed been cut off, there will inevitably be some losses when the ship turns around. The most important thing is to be successful.

While selling and selling, Wanda has also been developing its core assets. Since 2017, it has delivered 30 Wanda Plazas every year. Come May 2019, Wanda has announced another investment of more than 200 billion yuan in just a few months, which shows that Wanda has started off with a light load!

Wanda invested 80 billion in Shenyang, including 5 Wanda Plazas, but the essence is different

In early May, Wanda invested 80 billion in Shenyang and was once brushed up, especially in the real estate circle. , many people feel that housing prices will also rise again.

Let’s take Wanda Plaza as an example. In fact, this investment is definitely different from the past. In the past, Wanda acquired the land, Wanda designed, Wanda constructed, and Wanda operated. This time, it must be operated by Wanda, funded by a third party, designed by Wanda, and operated by Wanda. This is in line with Wanda's asset-light strategy. Now Wanda can fully rely on this brand to expand, and there is no need to go it alone.

Wanda said goodbye to real estate because Wanda has established its own brand. In this era of relying on brands to make a living, in this era of cooperation that can win the most, who will do it alone? investment?

There are multiple reasons for Wanda’s Wang Jianlin to abandon real estate:

1. The background of the times: China has experienced decades of rapid development and huge urbanization demographic dividends. The industry has become a piece of cake, but the development of any economy has its own laws. When production expands to a certain extent, the expansion will turn into overcapacity, and then workers’ labor income will no longer increase significantly. The same is true for the real estate industry. Commodities in the economic circle are only given financial attributes, and coupled with China's land and household registration systems, this effect is amplified. But now, it is obvious that the golden age of China's real estate is no longer. This is obvious*** They know each other well, so it is very reasonable for the big guys to change careers.

2. Financing is difficult. How does Wanda play? I believe everyone knows the routine, such as bank loans for development, plus the credit endorsement of large companies. All the famous ones play this way. Wanda is naturally worse, but if you want this game to continue, you need to If multiple conditions are met, housing prices will continue to rise; the country still allows real estate to continue playing like this; real estate companies still have the credit endorsement ability; residents can still afford to buy houses; of course, there are problems in many aspects, and Wanda's backer has collapsed. For large real estate companies, if the relationship between government and business is not well handled, bank financing will be difficult. Moreover, the most important thing is that the direction of the country has changed, and financing for the entire industry has been tightened. Once funds are restricted, the game cannot be played, so projects and companies are sold. They are all common, and it will be good if they can survive. In the first half of this year, more than 270 real estate companies went bankrupt.

3. Company strategic transformation. Wanda's pace is a bit big, with projects coming one after another. Its business scope covers investment, film and television, sports, cultural tourism, hotels, real estate, property management, commercial centers, and some scattered investments. It has also deployed many large-scale projects overseas and even high premiums. When it comes to acquisitions, Wang Jianlin, as a smart man, will also be able to adjust to the situation. Transformation is necessary, otherwise the capital chain will be broken.

4. Wang Jianlin’s personal reasons, this entrepreneur who shouts to make 100 million first, look at his bold son, Jack Ma’s father has such a high emotional intelligence that he has to resign from Alibaba Group and go home to be a teacher. , if Wang Jianlin has self-awareness, he should survive quickly. Are you still talking about the richest man at this time?

Wanda Group bid farewell to real estate, which I think is the company’s transformation strategy.

Wanda, which has been engaged in real estate for more than 30 years, has built its real estate empire across the country. Now it is downsizing and exiting, which also reflects the real estate giant Wanda’s judgment and expectations for real estate in the next few years.

First, release the liquidity of assets.

As we all know, the real estate industry is asset-heavy, but asset liquidity is the vitality of an enterprise. It can be said that this reform has released the company's asset liquidity, enhanced the company's vitality and flexibility, and more importantly, greatly reduced the company's future operational risks.

From a practical perspective, at least 100 billion in assets will be released.

Second, the future profit point is no longer the real estate industry.

Although it is not clear whether the real estate industry will continue to prosper or gradually decline in the future. But two things are certain: First, the risks in the real estate industry are increasing, which mainly come from market risks and policy risks.

It can be seen that the central government and various localities have frequently issued policy signals in the past two years, restricting purchases, loans, and sales. House prices in more and more cities have fallen, and transaction volume has continued to decline; secondly, the real estate industry has indeed completed a life cycle. , the future profit points will be in high core value industries such as communications, artificial intelligence, Internet, and biotechnology. These industries have light assets, high added value, high thresholds, high technological content, strong policy support, and core competitiveness. If we spend the same price, it is better to get rid of the old and heavy and concentrate on doing big things.

Third, the real estate is no longer there but the management is still there.

Wanda sold the hotel assets, but the management rights of the hotel are still there, and Wanda Hotels is still responsible for the design, operation and management of the hotel. Wanda Cultural Tourism is also responsible for the design, construction and management of the theme park. So overall, the impact on it is not as great as reported by the outside world. Wanda quickly withdraws funds through elderly care services, property management, etc., instead of relying on the model of buying land and selling houses. It calls it "de-realization".

Just like the same person took off his thick cotton jacket and put on short-sleeved shorts, just to make himself run faster and further.

(Family wealth password: golden sickle)

As a financial worker, I think Wang Jianlin’s announcement that Wanda will bid farewell to real estate completely should be a sincere statement and a sign of Wanda’s business strategy. Really turn.

Doing this shows that Wang Jianlin still has a thorough grasp of the pulse of the development of China's real estate industry. In Wang Jianlin's view, the period of high profits during the outbreak of China's real estate industry has ended, and now it has entered an era of low profits; and now and The competition will be more intense in the future, and it is not worthwhile to continue to compete in this field.

Moreover, as urbanization comes to an end and the urbanization of the population slows down, the demand for real estate and the rate of price increase will decline significantly in the future compared with the previous two decades.

Therefore, when real estate is at such an inflection point, Mr. Wang Jianlin’s announcement that Wanda will bid farewell to real estate is actually a smart move and a new starting point for Wanda’s future development.

The current overall trend of real estate is actually relatively clear to everyone. The crazy buying in the past few years has brought about a huge bubble in the entire industry. The current price has reached its peak. It will be difficult for more takers to take over in the future. Even if it is not the highest value, it is very close. It will be ushered in in 5-10 years. Irreversible decline, there may be a sharp decline in 15-20 years.

Capital speculation has always been about jumping in when there is a big profit margin, and leaving the market in time when it reaches the peak. This is even more true in the stock market. Similarly, business owners should also consider this issue, especially the market situation in 5-10 years. Regarding the general trend of the real estate industry, Wang Jianlin's real estate plan to bid farewell to the real estate industry can be described as bold and clean. As a retired soldier, he has the courage and courage of a soldier. Although it means losing a pawn to save a car, you will lose a lot, but if you look at the embarrassment of R&F Real Estate that has picked up a bargain now, you will know that those who love to take advantage of small things will suffer big losses, and those who can suffer small losses are those who have a long-term perspective.

Wanda’s previous emphasis on assets resulted in too much debt, too much size, and too much investment in operations. It was like a luxury cruise ship sailing in a shallow bay. It looked grand but could run aground at any time. But now, Wang Jianlin has gotten rid of his burdens and can easily go overseas. Both his ability to resist risks and his market prospects in new fields are relatively strong. In the past few years, Wanda has suffered repeated defeats and its vitality has been severely damaged. This period will be a short recuperation period for Wanda, so both Wang Jianlin and Wang Sicong appear to be much more low-key. I believe Wanda will attract attention again in 3-5 years.

I am optimistic about Wang Jianlin’s future, and I am also optimistic about Wang Sicong. Both father and son are serious businessmen. Wang Jianlin is not a hype man. Although sometimes Wang Sicong is a bit loud and out of tune, he has a good outlook on life and a strong sense of justice. I still hope that they can develop better. . We are also optimistic about their vision and ability in the market.

The government has repeatedly emphasized that housing is for living, not for speculation! Local governments cannot use real estate as a "stimulant" for economic growth, and government policy no longer supports it.

Real estate loans are getting tighter and capital chains are tightening, which will make it very difficult for many real estate companies.

When the real estate tax is levied, many vacant houses will come out, market supply will increase, and prices will fall

The general trend is that early transformation is a safe decision.

And according to Wanda’s announcement, the transformation has been quite successful. Lao Wang is still pretty awesome.

The decline of real estate is a general trend, but it will not fall significantly. The real estate plan is there and the government regulations are there. Personally, I feel that saying goodbye to real estate is the right way to go after the next 30 years.

China’s concept of real estate is so serious that it even affects young students born in 1999. Wang Jianlin Group may be able to move faster and more lightly in eliminating real estate. There should be no scarcity of houses in China in 2028, because demolition will allow families to have more real estate or start-up capital. Then you shouldn’t have to worry about the house.

Trump has become president and entered politics... This is the top of real estate, which is impossible in China... So changing careers is right... and by the way, it will cool down real estate... Another thing... the manufacturing industry will not rise. , that is, the rise of scientific research. The two roads are put here, and both require the new generation to work hard. In other words, it is the education system, not only the school, but also the parents...

Each Business is a story about big fish eating small fish, and small fish eating shrimps. Therefore, commercial services are also strictly regulated... Whether you are buying things or producing things, the cost of counterfeiting must be very high, and the price must be very high. , otherwise, the cost of breaking the law is low, everyone takes a chance, and when they return to society, what they respond to is comprehensive issues... what they reflect is international issues... which is international competitiveness...

So... the conclusion is to practice internal skills well. Down-to-earth, everyone has the spirit of craftsmanship, which is the positive energy of society...

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