Feng: Survival is suffering

Interview • Author/hs Jianghong photography/Weiliang Feng, known as the real estate industry thinkers, Wantong, a not-so-stunning property enterprise, at least in the last decade. The difference between Feng and Wantong may be bridged some day soon. In the real estate industry panic today, Feng claiming Wantong has been preparing for today.　　He for many years Wantong seemingly not the fire of the enterprise operation of the specific statement is "low risk, medium speed, High return", the judge of the current situation is "the policy as pendulum pendulum like many times, but this should be the last time", the understanding of enterprise development is "endure live, cremated death." In many companies still believe that the real estate policy will always be "tightly loose", the good days will come again, perhaps Feng too tense, perhaps wantong over the past decade can devote more energy to high speed and multiply expansion. I do not know whether an enterprise that is often prepared for "living" and "dying" is too pessimistic to be a great company. But in terms of the future and the outcome, it's not important, it's about who's going to live. Again apply Feng words, "Alive, is Victory!"　　"Digital business Age: Many developers have a complex, even furious, look at the current situation. Feng: No need to be too excited.　　The day will come sooner or later. Over the past five years, the direction of our policy choices has been to swing at two points: one point is to position the house as a special commodity with a double function of consumption and investment, which is positioned in fact as an engine of economic growth and a pillar industry of economy; True housing has another extreme characteristic, it is a basic demand of our life, also has some safeguard and the quality of people's livelihood.　　If this is the case, then it should be another set of policies.　　Therefore, the Government in these five or six years on both sides of the election, the economy is not good when the emphasis on economic growth, the economy began to good, housing prices, to return to the characteristics of the people such a swing back and forth, and the development of the economic cycle. Because I have seen such a law, so I am waiting, because our country has never been the policy formulation and policy effect of the way the pendulum effect, do not put one thing to extreme stop. Next, there will be a new game to start. This is why Wantong's operating strategy is called "low risk, medium speed, high return". We have not wavered in such a logical understanding.　　Digital Business era: So will the policy swing again? Feng: It's not easy, the government will consider the authority of the policy. I think this round down, basically there will be a big adjustment, to solve the deep-seated contradictions of the conditions. So the timing of the regulation should last until next year.　　This time next year, there will probably be some new game rules that may be clearer.　　Digital Business Age: What is the most concern of developers now? Feng: Under the current policy, the risk of the enterprise in the residential area is very large. However, there are only two options for the business, because you have to follow the policy, there is no way.The way to prevent problems is low risk, medium speed and high return. So we are now to the company's requirements, is my own recently said "eat soft rice, make hard money" is to use creativity, innovation, integrity, brand and talent, to compete with the market, to be forward-looking.　　Then, to maintain a strategic lead, so as to win the market, if there is a market, if there is no market, we will learn to win the government, the so-called run to win the government, that is, not in the control of the sacrifice; another is to win the competition, this is our current status.　　Digital Business Age: Your attitude seems to be well prepared? Feng: We have to face the current situation in a positive state. First, understanding the background of government policies, and secondly, understanding that society in transition is a contradiction in itself, with a lot of uncertainties. Everyone is in a state of unhappiness, so we can only make our business a little more flexible.　　For example, you are so high in debt that you buy such a large pile of land that you blow too tightly.　　Digital Business era: How to understand what you call creativity, innovation? Feng: We continue the American model, talking about the changes and innovations in the business model, and then on the process, product innovation. The company's board of directors at the beginning of the year specifically proposed to the annual turnover of 5% as research and development funds, although we do not seem to fund the development of other enterprises, but we do is soft research, we do not do hard research.　　In addition, we also released a new product in the first quarter.　　These are step-by-step, to upgrade the company into a technology research and development-driven, creative-driven and strategic-leading enterprises, rather than a cost-driven enterprise.　　Digital Business era: So Wantong real estate performance? Feng: Last year we made the biggest progress, is in the real estate operation Aspect has obtained the very good result. You look at the report, we have an increase in size. In the operation, in the entire office market, our rental rate, rent, lease, tenant are the best. It takes 8 months to reach 90% of the rental rate. Our serviced apartments in Beijing are the best in rent and lease and rental rates. Because these are the "best" of the last year, we can lay the groundwork for the next stage of operation.　　We learn the American model not in terms of development capabilities, but in operational capabilities, and our traditional model is to develop capabilities. In fact, this is one of the biggest progress in Wantong. In Beijing last year, the entire CBD rental rate of office building vacancy rate increased, rental decline, we can do the best operation. In addition, Wantong's biggest progress is to turn the strategy into two levels: one is holding company, that Wantong Industrial, Wantong Industrial now 1.3 billion of the equity, in Beijing by RMB registered property companies in the largest asset scale, the debt rate is less than 20%. In addition to the part of the development company we see, we have industrial estates, asset Management, and fund management, which have grown well in the last year. The biggest job we did last year was actually to increase our soft competitiveness., rather than rushing to expand.　　Digital Business Age: How do you think real estate enterprises should be transformed? Feng: "Eat soft rice" the highest return, such as Singapore has a Universal Studios, the project scale of 1.3 billion dollars, the United States Universal Studios took away 600 million U.S. dollars in intellectual property costs. This is soft, this is "eat soft rice", the return is the highest. Cade has a good return on global capital markets because it has two-thirds of its business to manage other people's assets and one-third of its own assets. The management of other people's assets brings 1.4 billion of dollars in income, essentially "eat soft rice" income.　　So you just stick to "eat soft rice", your rate of return must be high. Real estate developers should get rid of their barbaric growth and step into a stage of scientific development, and we, the real estate developers, will have to develop scientifically before they can gradually become property developers with the ability to create value. The so-called creative value ability, is your creativity and service quality, this is mainly the ability to create value, research and development, green, energy saving, environmental protection, this is a scientific and technological content.　　The Real Estate trade association has gradually transformed itself into a way of making money from land, by relations, by one band or by temporary luck.　　Digital Business Age: How hard is transition? Feng: The process of transformation is difficult, how difficult? Li Ka-shing has spent 15 years completing this transformation. I think Wantong need to spend 10 years to do this thing, now only two years, so now we are not in a hurry. This transition process must slow down, the equivalent of a car turning, you have to slow down, you do not slow down will be overturned. So we have to endure moderate growth, not crazy growth. We do not go with the market to do a lot of gambling, scale must be controlled, otherwise it will be very troublesome.