As the head of Chinas largest real estate development enterprise, Yang Guoqiang, chairman of the board of directors of Biguiyuan Holdings (02007.HK), seems to have a more positive belief in the domestic economic situation and the trend of the real estate industry.
On January 21, in his internal speech, Yang Guoqiang made a new explanation on the companys development strategy, saying that Biguiyuan will become a strong main industry, transform and upgrade, and stride forward to a large high-tech comprehensive enterprise. At the same time, the company profile content of the companys website has been updated, and it is clearly pointed out that Biguiyuan is a high-tech comprehensive enterprise that creates beautiful life products for the whole world.
Through the content of the speech, we can see that the entrepreneur who has been struggling for decades in the tide of Chinas reform and opening up, is rational and sober in the torrent of economic transformation. At the same time, he has a clear layout for the navigation direction of the giant enterprise ship Biguiyuan, whose total assets have already exceeded trillions.
Over the past year, various information revealed by Biguiyuan shows that while consolidating the core business of real estate development, the company has carefully laid out the extension business of robotics and agriculture, and tried to make synergies between these businesses, effectively mobilize existing resources, and improve the efficiency of enterprise resource use.
Yang Guoqiang said: Last year, the framework of our agricultural company and robotics company has been put together, and the development ideas have also been put forward, and then we look forward to their wonderful performance. In the future, we have three priorities: real estate, agriculture and robotics. In this way, in 2019, the three formats of Biguiyuan will develop synchronously and coordinately to enhance the overall competitiveness of the group.
Grasp the Opportunities of Urbanization and Grow with the Times
In 2018, Biguiyuan topped the list with 728.69 billion yuan in sales, of which 50.18 billion yuan in equity sales, a steady increase of 27% compared with 396.11 billion yuan in the same period in 2017.
This is the result of Biguiyuans early layout before the last cycle of real estate growth, but with the high-level adjustment of no speculation in housing put forward at the national level in 2018, market expectations have changed, buyers and sellers are returning to rationality, and most housing enterprises are no longer blindly optimistic about the future of the industry. In this context, as early as mid-2018, Biguiyuan put forward a new development idea of improving quality and controlling speed, actively switching lanes to adapt to the new market rhythm.
Today, according to Yang Guoqiangs latest speech, he is still optimistic about the development opportunities of the real estate industry in the process of urbanization in China. At present, the urbanization rate in China is far lower than that in developed countries. Real estate has a market of at least 10 trillion yuan a year. The question is whether we are competitive. We have to rethink how to improve our competitiveness?
Yang Guoqiangs judgment is supported by the research report issued by the Chinese Academy of Social Sciences in 2018: from 1949 to 1999, it took 50 years for China to raise the urbanization rate from 10.64% to 30.89%, an increase of 20.25%; from 1999 to 2017, it took 18 years for China to raise the urbanization rate from 30.89% to 58.52%, an increase of 27.63%.
The data show that the progress of urbanization in China has achieved remarkable results in the past 18 years. However, there is still a big gap between China and the 80% urbanization rate of the developed countries in the world. Therefore, the pace of urbanization in China will not stop, the real estate industry in the process of urbanization is still promising.
We firmly believe that the dividend period brought by Chinas urbanization process to the real estate industry is still not over, and to some extent reflects Yang Guoqiangs basic judgment on Chinas long-term economic well-being.
Not long ago, President Xi Jinping addressed the 26th APEC LeadersInformal Meeting. Chinas economic contribution to world economic growth has remained above 30%, while accelerating the transition from high-speed growth to high-quality development. This year, the contribution of consumption to Chinas economic growth has reached 78%, and the overall momentum of Chinas long-term stability to good will continue to be maintained. Hold on.
On January 8, Wang Qian, chief economist of Vanguard Group Asia-Pacific Region, the worlds largest public fund company, also judged at the media conference on global economic and market outlook held in Shanghai in 2019 that despite the slowdown of global economic growth, different levels of inflation and the continuing normalization of monetary policy, the global economy will not experience a recession in the short term and the possibility of a hard landing of Chinas economy is very small. Economic growth will stabilize between 6% and 6.3% in 2019.
In Yang Guoqiangs view, the current economic situation in China is complex, but we should have firm confidence in stable economic growth and long-term improvement. The past does not represent the present, nor does the present represent the future.
For Biguiyuan, which is in the leading position in the industry, a bigger market share is still worth looking forward to. While the current market is in the adjustment cycle, Yang Guoqiang also considers risks. He asked the company to be financially sound, followed by sales and fixed production, revenue and expenditure. We must pursue quality development, plan scientifically, enhance the competitiveness of the whole cycle, invest precisely, and realize the organic combination of long-term and short-term benefits.
Some insiders believe that the recent draft amendment to the Land Management Law amends the market entry of collectively operated construction land and the homestead system to make it clear that non-agricultural construction land is no longer must be state-owned, which will have a far-reaching impact on Chinas real estate industry. For housing enterprises, the introduction of collective land to the market, on the one hand, controls the development cost, on the other hand, creates new opportunities for enterprises to expand their business. Powerful Housing enterprises such as Biguiyuan, which are ahead of schedule in the direction of urbanization in China, are likely to become the biggest beneficiaries.
Carefully Construct the Business Layout of Troika
2019 is the key year for Biguiyuan to further strengthen its main business and transform and upgrade. Therefore, in his first internal speech at the beginning of the year, Yang Guoqiang not only elaborated on the outlook of the real estate market, but also mentioned the future direction of social development and the companys layout in the fields of robotics, agriculture and so on.
At the meeting, Yang Guoqiang reiterated that Biguiyuan should be a high-tech large-scale integrated enterprise and promoted its robot business to an unprecedented height, demonstrating the courage and determination of second venture.
The progress of science and technology is unimaginable. This is Yang Guoqiangs overall judgment on the vision of human social development. In his view, only enterprises that keep up with the tide of the times can always stand at the tide of the times.
Recently, Ren Zhengfei, the founder of Huawei, made a similar judgment: The future development of the information society is unimaginable. In the next twenty or thirty years, there will be a great revolution in the human society. There will be earth-shaking changes in the mode of production. For example, the use of artificial intelligence in industrial production will greatly improve production efficiency.
Similarly, Yang Guoqiang also imagined revolutionary changes in housing construction. Robot technology is relatively mature now, if we have enough excellent people to make these, we will become the most advanced real estate company, we are now moving towards a high-tech enterprise to do it, he said. I have also worked as a construction worker on the site, and repeated high-intensity labor can not be said. It is only a matter of time before we welcome the arrival of Robot Building House. It is absolutely necessary to do so, which is the source of our strong competitiveness in the future.
It is reported that Biguiyuan will further devote itself to intelligent manufacturing, aiming at the worlds leading edge of science and technology, relying on Guangdong Robot Valley, independently research and development, to create a modern robotic industry ecosphere, and to help the countrys scientific and technological progress. At present, Biguiyuan has established Bozhilin Company specializing in robotics research, and has introduced a large number of professionals from around the world, closely carrying out related research and development work.
With the progress of the times, science and technology have penetrated into all aspects of human life. Wu Xiaobo, a famous financial scholar, said that China has the largest number of robotic companies in the world, with 2600 robotic companies. It can be predicted that robots will appear in almost all industries in China.
Yang Guoqiang also believes that science and technology can make the country stronger, help people liberate from heavy work and make people live a better life. In the future, some heavy and dangerous work will be replaced by robots.
At the same time, agriculture has also been promoted to a new level of group strategy by Yang Guoqiang. It is reported that Biguiyuan continues to introduce world-class agricultural production technology and equipment, lay out the entire agricultural industry chain, and through the Phoenix Optimum Retail Brand, will provide safe, delicious, cheap and rich agricultural products to every Biguiyuan household, to help the countrys rural revitalization.
For example, the new retail business of Biguiyuan was established in 2016. According to Yang Guoqiangs plan, the goal of Phoenixs optimization is to open thousands of community stores throughout the country to sell agricultural and sideline products selected by the team of Biguiyuan.
Yang Guoqiang said that he hoped that through Phoenix Optimizing, millions of owners could easily purchase high-quality and low-cost agricultural products and improve their quality of life. Based on this, the development team would also consider such basic factors as the layout of Phoenix Optimized Stores when purchasing land.
Organize tens of millions of farmers and turn their products into a variety of dishes, fruits, meat, fish, grain, oil, water, etc. in Phoenixs preferential selection. The intermediate cost is very low, they sell very cheaply, they are of high quality, and they are rich in varieties. At the same time, we will sell hundreds of daily necessities. If it is safe, delicious, cheap and rich, I believe it will be welcomed by the market. I look forward to doing a good job in the new year.
In a word, Yang Guoqiang has made a clearer plan for the future development of Biguiyuan after two yearsactive paving of various businesses. He has constructed a diversified business layout based on real estate, agriculture and robotics. Several major sections are relatively independent and mutually supportive, complementing each other.
Around the main business extension of the multi-business sector, to a certain extent, it further strengthens the market competitiveness of the real estate industry. It is also an endogenous growth power, which helps Biguiyuan smooth the business cycle risk.
In fact, Yang Guoqiangs choice also has a strong historical background and development logic. Kerry pointed out in the latest report that under the background of slowing down the growth rate of the industry, Housing enterprises have opened up new business sectors, in addition to extending the real estate business as the axis, such as long-term rental apartments, industrial real estate, pension real estate, property management and other sub-areas, technology and other future industries have also attracted some enterprises to enter. It is expected that in 2019, the diversified business of Housing enterprises will continue to focus on local eco-business, and the direction of development will be clearer, while the synergy with the real estate industry will be closer.