The liquidity crisis that broke out at the end of October last year, Yango Group Co.Ltd(000671) is still slowly digested internally.
A few days ago, an open letter from Yango Group Co.Ltd(000671) marketing region spread on the Internet. The letter mentioned that the past 2021 was an ill fated year for Yango Group Co.Ltd(000671) . From tightening policy regulation to killing both stocks and bonds, from overdue financial management to the resignation of the president, the company is facing difficulties. Under the contraction of scale, on January 11, Yango Group Co.Ltd(000671) will cancel the marketing area.
According to times finance, under the influence of the adjustment of the real estate industry and its own liquidity problems, the action of Yango Group Co.Ltd(000671) organizational structure adjustment has been carried out in recent months.
At the end of October last year, Yango Group Co.Ltd(000671) had a regional merger. Among them, the Shanghai region is merged into the Chengdu Chongqing region, and the scope of the new region is extended again, including Shanghai company, Nantong company, Jiahu company, Shandong company, Xinjiang company, Chengdu Chongqing company, etc; The Zhejiang region merges Shaanxi Gansu region and Yunnan Guizhou region, and the Zhejiang region covers Zhejiang Province, Anhui Province, Henan Province, Shaanxi Province, Gansu Province, Yunnan Province and Guizhou Province.
On January 7 this year, an internal letter from Xie Kun, President of Yango Group Co.Ltd(000671) Tianjin Hebei, also mentioned that Yango Group Co.Ltd(000671) Tianjin Hebei region, Shanxi region and Beijing region were officially merged, and the personnel of Tianjin platform, Hebei platform and Shanxi platform were cancelled, and the backstage personnel worked and managed in Beijing. In this regard, Yango Group Co.Ltd(000671) has responded to the media that the above-mentioned regions have indeed changed, and with the scale reduction, Yango Group Co.Ltd(000671) other regional structures will also face adjustment.
For enterprises, the team size is related to their own size. A top 10 real estate enterprise once said frankly that the industry has entered a downward cycle, real estate enterprises have encountered difficulties, and the overall budget has been reduced. In terms of organizational efficiency, it can’t use so many people and can’t afford such a large organization. Even if the future crisis is resolved, the industry scale will no longer have explosive growth, and the enterprise will match an expected organization.
For Yango Group Co.Ltd(000671) , it may have reached the stage of “shrinking bones and losing weight”.
According to the sales ranking list of real estate enterprises in 2021 released by Kerui, in 2021 Yango Group Co.Ltd(000671) achieved sales of 183.81 billion yuan, a year-on-year decrease of about 15.7%, while combing the sales in recent five years, Yango Group Co.Ltd(000671) is also in the “downward channel”. According to the data, from 2017 to 2021, Yango Group Co.Ltd(000671) achieved sales of 91.5 billion yuan, 162.8 billion yuan, 211 billion yuan, 218 billion yuan and 183.8 billion yuan respectively, with a year-on-year growth rate of 88%, 78%, 30%, 3% and – 15.7%.
In fact, Yango Group Co.Ltd(000671) organization’s “expansion” stems from the increase in scale in the past few years. In 2017, the first thing Zhu Rongbin did after joining the company was to recruit and start the expansion and upgrading of the organizational structure. According to times finance, more than 10 regions were added in Yango Group Co.Ltd(000671) 2017 alone. The number of regional company platforms reached 30, and then gradually integrated into 28 regions.
How fast the expansion was, how painful today’s contraction is.
With the slowdown of scale growth, in 2019, Yango Group Co.Ltd(000671) began large-scale structural adjustment. In that year, 13 regions were merged, including Fuzhou region, Jiangxi region, Shanghai region, Xinjiang region and Hubei region, Zhejiang region and Anhui region, Henan region and Shandong region, Guangzhou region and Foshan region, and Yunnan region and Guizhou region.
Now, the sales scale continues to decline, coupled with liquidity problems and reducing expenses in exchange for survival opportunities, regional mergers, downsizing and layoffs have become the only way for real estate enterprises. Some real estate enterprises have predicted that the table of the whole industry is expected to be reduced by 20% ~ 30% in 2022. Accordingly, the table of personnel will be reduced in the same proportion. However, how to deal with the relationship with resigned employees is still a lesson for real estate enterprises.
According to times finance, in addition to Yango Group Co.Ltd(000671) , more than 20 real estate enterprises such as Vanke, country garden, China Resources Land and Poly Developments And Holdings Group Co.Ltd(600048) have adjusted their organizational structure since last year. At the same time, real estate enterprises such as Shimao, Aoyuan, jiazhaoye and Blu ray have also made layoffs. Among them, 70% – 80% of the employees in the investment department of Shimao Group headquarters have left, and the overall layoff ratio of Shimao Group is about 30% – 40%.
Changes in the industry caught enterprises unprepared. In the passive situation, real estate enterprises can only actively respond. Looking back on the actions of Yango Group Co.Ltd(000671) since the outbreak of the liquidity crisis, from the approval of the extension of three domestic bonds and two US dollar bonds to the issuance of cashing schemes for its financial products, the active communication and non lying attitude has also won the recognition of investors and public opinion. In addition, Yango Group Co.Ltd(000671) also plans to take measures such as selling assets and project equity to ensure liquidity. Therefore, up to now, Yango Group Co.Ltd(000671) has not had a material event of default, and is still communicating about the extension in the face of the debt that is about to mature.
It can be predicted that no matter ordinary employees, professional managers or bosses, the dust of the times is a snowy mountain on each individual. Under the contraction of the industry, people are in danger, but they are also actively responding to resolve the crisis one by one and get out of the cold winter.
