Sino-Singapore Jingwei, January 8 (Xue Yufei) Entering 2022, the internal organizational structure adjustment of real estate enterprises is still ongoing.
On January 8, it was reported that Wanda Real Estate integrated the original east, west, south and north areas into two areas: the south area and the north area.
On the same day, the merger of Tianjin-Hebei region, Shanxi region and Beijing region of Sunshine City was also confirmed.
A few days ago, Shimao Group announced the adjustment and consolidation of the group and regional functional departments.
According to the incomplete sorting of Sino-Singapore Jingwei, since 2021, including Vanke, Country Garden, China Resources Land, Longfor, Shimao, Xincheng, Xuhui, Zhongnan, Zhongjun, Sunshine City, Rongsheng, Agile, Kaisa, Aoyuan, Rongxin, No less than 20 large-scale housing companies such as Xiangsheng, Jinhui, Junfa, Times, and Hongyang have carried out organizational structure changes, and many of them have made adjustments more than once.
In the overall weak environment of the real estate market, headquarter simplification and regional mergers have become the most important keywords. In regional mergers, most real estate companies choose to merge the northern and southwestern regions where the property market is colder.
The industry expects that similar "slim down" moves may still be carried out in the future.
"Light" headquarters
After sorting out, it is not difficult to find that the adjustment of the internal structure of housing enterprises can be divided into the streamlining of the headquarters and the merger between regions.
As the first leading real estate company to announce internal structure adjustment in 2022, Shimao Group has integrated some functional departments of the group and set up a product research and development center, construction and operation center, supply chain center, and investment and development center.
The four centers were merged from departments with similar functions.
Shimao also merged the functional departments of regional companies, and abolished and adjusted some regions.
On the whole, the trend of streamlining and shrinking is significant.
This "light" headquarters strategy has become a prominent label for the organizational transformation of real estate companies in the past two years. For example, in 2020, Vanke will further reduce the size of the Shenzhen headquarters to about 150 people.
In the reform at the end of June 2021, China Resources Land clearly stated that functions can be reduced if they can be reduced, overlapping redundant functions, unnecessary matters, and unnecessary approvals are reduced.
Ge Ming, vice president and chief human resources officer of CIFI Group, recently stated publicly that CIFI should achieve a "small headquarters, strong regions, and light front lines".
CIFI insists on making the headquarters smaller to avoid the “head-heavy” headquarters, making the region overwhelmed and losing quick response to the market.
At the same time, the function of the headquarters has gradually changed to the role of support and empowerment.
China Resources Land has determined the direction of "specializing in the headquarters", that is, to be a "professional + expert" headquarters, which is the company's strategic command center, capacity building center, talent planning center, and risk supervision center.
In the organizational structure adjustment announced in July 2021, Longfor renamed its headquarters as a group empowerment platform.
Crane Research Center believes that an important starting point for the adjustment of the organizational structure of real estate enterprises is platform development. Through platform empowerment, while streamlining and lightweighting the group headquarters, it opens up the management paths of various business units and coordinates management more efficiently; At the same time, strategically coordinate the strategies of various tracks from the group level to realize the optimization of resource allocation.
Region merge
In the adjustment of the organizational structure of housing enterprises since 2021, the top priority is the abolition and merger of regions. Some regions with poor performance and weak market environment have been integrated one after another.
Country Garden can be regarded as one of the housing companies with more frequent organizational changes. In 2020 alone, four structural adjustments have been made, and the number of areas in that year has decreased from a decrease to an increase.
On December 31, 2021, Country Garden announced that the number of regional companies will be reduced from 106 to 65.
Country Garden stated that the group's adjustment to the regional setting of domestic real estate is to further adapt to industry changes and the external market environment.
After Zhu Rongbin and Wu Jianbin joined Sunshine City in 2017, Sunshine City began to expand regionally, but gradually contracted in the next two years.
On January 7, 2022, Xie Kun, President of Sunshine City Tianjin-Hebei, announced internally that the Tianjin-Hebei region, Shanxi region, and Beijing region were officially merged.
In October 2021, Sunshine City underwent personnel adjustments and regional mergers. The Shanghai Region merged the Chengdu-Chongqing region, and the Zhejiang Region merged the Shaanxi-Gansu region and the Yunnan-Guizhou region.
China-Singapore Jingwei combing found that in the regional adjustment of housing companies for more than a year, the entire northern region and the southwest region have become the focus of adjustment, either merged with similar areas or merged by other strong areas.
At the same time, the East China region centered on Shanghai and Hangzhou, and the Greater Bay Area centered on Guangzhou and Shenzhen have further improved their status among most enterprises.
In March 2021, in order to form the three major business layouts of "Yangtze River Delta + Greater Bay Area + Beijing-Tianjin-Hebei", Rongsheng Development, which started in Hebei Province, established the "Greater Bay Area Special Zone" for the first time. Eight companies were merged into two companies in Beijing and Tianjin, and Jizhong Company was established at the same time.
In July of the same year, Jinhui split the original South China region into the Pearl River Delta region and the Southeast region. The company stated that the newly established Pearl River Delta region shows Jinhui's attention and determination to the Guangdong-Hong Kong-Macao Greater Bay Area.
In October 2021, Zhongnan Land also announced that the original Chengdu-Chongqing regional company and the Yunnan-Guizhou regional company merged to form a new southwest regional company, the former Guangfo regional company and the western Guangdong regional company merged to form a new Guangdong-Guangzhou regional company, and the original Shenzhen-Guanhui regional company merged. The company was adjusted to the Urban Renewal Division directly under the headquarters of Zhongnan Land.
It can be seen that the status of the Greater Bay Area in Zhongnan Land has also been improved.
Adjustment continues
Whether it is headquarters streamlining or regional mergers, the trend of "downsizing" and shrinking of real estate companies is very obvious.
According to the Crane Research Center, since the second half of 2021, the liquidity of housing companies has been under pressure due to policy regulation and market cooling.
On the one hand, the sales side continued to turn cold, and the trading performance of the top 100 real estate companies continued to decline in a single month and cumulative year-on-year; the pre-sale supervision fund policy was strict, and the slowdown in the payment collection speed of real estate companies exacerbated the tight capital chain; at the same time, "three red lines" "Regulation continues, and pressure to reduce leverage persists for a long time.
On the other hand, real estate companies ushered in the peak of the concentration of debt maturity.
According to the data of 98 sample real estate companies monitored by CRIC, the maturity scale of debt in 2021 and 2022 is about 13.8 trillion yuan and 12.6 trillion yuan respectively, which is a small peak in the past ten years. The scale of future debt is about 179.3 billion yuan, which is a small monthly peak recently.
"In this context, the shrinking and simplification of the organizational framework of housing enterprises can control costs, 'save food and clothing', and allocate limited funds more accurately, which is to actively respond to changes in the market environment, ease liquidity pressure, and 'tighten the belt' to resist the 'cold winter' 'Strategic choice." The above research center also stated that streamlining the organizational structure, merging some regional and city companies, and divesting non-essential businesses can reduce intermediate links, shorten decision-making time, and improve management efficiency.
Streamlining the structure also facilitates decentralization, increasing the autonomy and flexibility of regional departments.
Jia Chunhui, founder of Feasibility Research Think Tank and business partner of Yihan Think Tank, analyzed Sino-Singapore Jingwei that in 2022, real estate companies will further adopt systematic organizational simplification, personnel optimization and efficiency improvement actions.
The next step to improve the organizational efficiency of the TOP20 real estate companies requires new management methods and tools to support them.
Yan Yuejin, research director of the Think Tank Center of E-House Research Institute, also said that although the real estate market policy tends to be relaxed, the operating pressure of enterprises will not ease in the short term, and similar organizational adjustments will increase in the near future.
(Sino-Singapore Jingwei APP)
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