China News Service, Beijing, March 31 (Reporter Pang Wuji) Yu Liang, chairman of the board of directors of Vanke, a leading mainland real estate company, said at the Vanke 2020 annual performance promotion meeting on the 31st that the real estate industry has entered the "management dividend era" and the logic of the real estate industry has changed. You can no longer make big money, fast money; but you can still make slow money, long money, and honest money.

　　On the evening of the 30th, Vanke announced a relatively stable 2020 operating results.

Last year, Vanke achieved operating income of 419.11 billion yuan (RMB, the same below), and net profit attributable to shareholders of listed companies was 41.52 billion yuan, a year-on-year increase of 13.9% and 6.8% respectively; development and operation business achieved contracted sales of 704.15 billion yuan, a year-on-year increase 11.6%.

　　Affected by the new crown epidemic and other factors, the profits of many Chinese real estate companies fell last year, including leading real estate companies such as Country Garden.

Since the second half of 2020, the government has officially issued a series of major policies including the new regulations on financing management of key real estate enterprises (the "three red lines"), the concentration policy of real estate loans, and the "double concentration" of land supply in key cities.

What changes will happen to the development prospects of the real estate industry?

　　Yu Liang believes that the introduction of this series of policies signifies that the industry has clearly entered the "management dividend era."

The return of houses to residential properties and the return of real estate to industrial properties has become a clear and clear trend.

　　The return to industrial attributes means that the return level of the real estate industry will gradually approach the social average level, which means that real estate should shift from development-oriented to both development and operation.

Housing will become more and more like durable consumer goods, development business will become more and more like manufacturing, and business operations will become more and more like service industries.

Real estate companies can no longer rely on hoarding raw materials and earning money from land appreciation, and can no longer rely on increasing leverage to earn money from financial leverage.

The competition in the future will be more comprehensive and fierce. "There is only one way out for the industry, learn from the manufacturing industry steadily, and earn money for processing, manufacturing and services through labor," Yu Liang said.

　　In the era of management dividend, is there still a chance for real estate?

　　In analogy with the home appliance industry, Yu Liang believes that the home appliance industry has gradually saturated the market in 2007 and is close to the “ceiling”, but after a cruel industry reshuffle, the leading companies that survived, such as Midea, Gree, and Haier, ultimately rely on good products and good products. Service and good management capabilities have won the market.

This shows that even if the industry enters the era of stock competition, excellent companies still have opportunities.

　　To seize the opportunity in the era of management dividends, Vanke Group President and CEO Zhu Jiusheng said on the same day that real estate companies need to keep up with the pace of urban development and shift from traditional development business to both development and operation. According to Vanke's 2020 annual report, in addition to traditional development business and property services, Vanke's business transformation in logistics, commerce, long-term rental apartments and other fields has achieved results. (Finish)