Golden Land Chairman Linck: Looking for blue sea for development

2010 Real Estate New Deal turns, to the middle of the year, the new deal effect has gradually appeared, listed real estate companies will report to the public reported performance, experienced a round of policy digestion, expected adjustment, real estate business strategic thinking what has changed?　　This newspaper interviewed the Golden Land Group Chairman Linck.　　Media: In this field known as the most severe real estate regulation in the history of the New deal, many real estate companies will face capital constraints, inventory growth, according to past experience, the real estate industry every major adjustment will have a group of developers out, for this regulation, how do you look at this problem? Linck: If the current situation of China's real estate industry is put into the big environment, this market is still in the growth period, this feature inevitably led to cyclical fluctuations in the industry, real estate enterprises to see this trend, enhance their ability to resist the risk of the impact of cyclical fluctuations in the industry trough the smooth transition , the rapid development of the industry in the rising period.　　The adjustment of the real estate industry may continue for a long time, which requires the enterprise to be rational and cautious posture, and a more robust business strategy to deal with the changes in the market. Media: How can real estate companies improve their ability to resist risk? How did Kim land in this piece?　　What's the effect? Linck: In the long run, the construction of the risk-resisting ability of real estate enterprise is a systematic project, the gold is mainly from three directions, one is to achieve rapid sales, rapid return, to ensure that enterprises cash liquidity is abundant; the second is scientific investment, diversification of risk through diversified forms of investment, the third is to control the scale of debt,　　Avoid the financial risks associated with excessive leverage. The Golden Land has also made corresponding efforts in these three areas, Jindi has been using the fast rolling development as the project management strategy, through the product line construction, the work flow optimization and the incentive mechanism follow-up and so on to enhance the company project development speed, thus enhances the company overall capital turnover efficiency,　　So that the gold in response to the market adjustment can have a faster response speed, in the shortest possible time to the company's business strategy and plans to adjust over. Since land investment has always been an important risk control point in the management of real estate companies, Gold has devoted more energy to investment management, and Jindi started to reform the Investment Management system in 2009, hoping to learn from the financial management tools and methods, By combining the incentive of investment-related personnel with the financial performance of the project, the risk of the project investment in the rapid growth process can be controlled by the system.　　At the same time, the gold land has invested more research resources in the timing of investment and regional layout, hoping to reduce the systemic risk by stepping into the market rhythm and decentralized layout. And the third aspect, Jindi has been paying more attention to the ratio of debt to reasonable control, by setting a debt range to flexibly adjust, reduce financial risk. As at the end of the first quarter of the company carrying cash 8.6 billion yuan, the final interest rate is 29%, at a lower level, which expires within one year of interest-bearing liabilities of 5.14 billion yuan, the maturity of a year of interest-bearing liabilities cash ratio of 0.6, the financial level has a higher margin of safety. In the short run, in response to the current market adjustment, the real estate companies may need to do is to strengthen the return of cash, the current gold has launched a series of rapid sales measures, we have different degrees in the region to enhance sales force, increase the promotion channels, and also according to the different circumstances of different projects,　　Developed a highly targeted marketing strategy, to ensure that the company's sales can run to win the market, on the other hand, we also through marketing research, increase the development of rigid demand for the small size of the product proportion, full product innovation, control engineering quality, through effective product competitiveness to win the market, to achieve rapid sales.　　Media: Short-term fluctuations by ensuring the security of the fund chain to withstand, but you just talked about the cyclical nature of the real estate industry, in anticipation of the market will continue to appear this cyclical fluctuations, under the premise of what you think the real estate enterprises should be in the direction of development, will not be in every fluctuation faced　　Linck: You ask a very good question, real estate is a long cycle of industry, so do real estate enterprises must look to the long-term, see 5 years or even 10 years after the industry trend, from now on to prepare, in order to achieve greater development in the future. China's housing market after the rapid development over the past 10 years, industry competition has been very fierce, because of the high dependence on the external environment, the stability and controllability of real estate enterprises have met challenges, while the fierce competition has weakened the profitability of enterprises, in the long run, Enterprises need to explore the future of the growth of blue ocean. From the current development trend of real estate industry, commercial real estate and real estate finance will become a new profit growth point in the future. With the adjustment of economic structure, domestic consumption in the next decade will be likely to take off, and as a consumer trading place of commercial real estate will have considerable potential.　　On the other hand, real estate finance will open up new financing channels for real estate enterprises, if the operation of good words can become the future profit growth of enterprises, these two areas of development in China are still in the initial stage, there will be a very broad space for development. Kim also made some attempts in these two areas, including in real estate finance, the first issue of the dollar Fund, which was prepared in cooperation with UBS, has been successfully completed, and cooperation with Ping An trust is progressing as planned, and the future Golden Land is also planning to launch renminbi funds,　　Hope that through beneficial exploration for China's real estate finance to make a certain contribution.　　Reporter: The two concepts of commercial property and real estate finance are very hot now, plus this regulation is mainly aimed at the residential real estate market, whether this is a signal to the market, residential real estate has ended the gold development stage, the developer should gradually transfer the main business to commercial real estate or real estate finance field? Linck: For residential real estate has ended the period of gold development I do not agree, because of the increasing degree of urbanization and the continuation of the demographic dividend, China's housing market there is a lot of room for development, rigid demand will not continue to release. Future Real Estate CompaniesIndustry still needs to plough deeply into the housing industry, but with the change of external environment and the consideration of the cyclical fluctuation of real estate, enterprises should pay attention to strategic regional layout and product structure. In the process of urbanization, two or three-line cities as the main areas of the urbanization process to absorb the rural population, these areas of future real estate development potential is huge, although the first-tier cities and key second-tier cities are scarce resources, competition is more intense, but for enterprises, two or three-line cities have great potential for development　　, therefore, relying on the process of urbanization, strategic regional layout can not only promote the rapid development of enterprises, but also can disperse the risks brought by regional concentration. On the other hand, the real estate enterprise also needs to carry on the thorough ponder to the product structure optimization. China's urban two-yuan development pattern determines the demand for small and medium-sized housing will become increasingly vigorous, in recent years, the government has increased the small and medium-sized housing and affordable housing policy guidance, can be seen, small and medium-sized housing and protection of the future will occupy the Chinese housing market a large "cake." Therefore, in the development of the project, the optimization of high, medium and low-grade product mix, balance the proportion of different grades of products, real estate companies to circumvent the risk of the long-term market cycle.　　At the same time, in product strategy, real estate enterprises should also pay attention to the development of the project efficiency and quality, to create quality real estate.　　Gold through market research, increase the development of rigid demand for small-scaled products, at the same time in product quality has also carried out a series of innovation, promote product line work, in order to obtain consumer recognition and loyalty.　　Reporter: We have recently been concerned about the changes in the top of the gold, will this be more confused in the industry prospects, to Jindi strategic planning bring other impact? Linck: The real estate business is good or bad is the most fundamental factor lies in the company's team cooperation ability, the Golden land is also so. In the Golden Land, no one, including me, can make a separate decision on the strategic direction of the company, we do not promote heroism, Jindi has been pursuing a more democratic and open culture, the company's future development direction is the whole team of collective decision-making to make.　　and specific to the Shanghai company, Zhao always in office when everyone is the manager of the management concept, he also boldly delegated to subordinate staff, give them certain decision-making power and work flexibility, so his departure will not affect the Golden Land group or Shanghai company's management. Again, the Golden Land management concept of a very important one is to emphasize the system and system construction, hope that more "system" rather than "rule by man" to maintain the day-to-day operation of the company. After years of development, the company has formed a set of mature management model and standardized work flow, any level of staff, can quickly according to the existing system, into the golden land of the operating system.　　In recent years, the company has been actively promoting the incentive system, investment management system innovation, are to a greater extent to reduce the degree of subjective factors of managers. In addition, the Golden Land also attaches great importance to the construction of talent echelon, after many yearsDevelopment, the company has now formed a rich experience, reasonable structure and a rich reserve team. We attach particular importance to improve the leadership of managers, Jindi has worked with an international consulting firm for Leadership quality Model research, each year to conduct detailed evaluation of enterprise managers, and on the basis of the development of action plans to improve the management of the overall management level.　　The perfect talent echelon and the management team also lets the company be able to maintain certain talented person fluidity every year, achieves the water not to be rotten, never worm-eaten.　　Reporter: In the strategic direction will not occur a substantial change in the premise of the gold group in the weak city of the development of how to judge?　　Linck: We have always been optimistic about the future development of China's real estate industry, but also in all aspects to prepare to meet another development peak. In the current environment, we will also strive to achieve the company's established performance targets at the beginning of the year. The company up to the end of 2009 land reserves reached 15.48 million square meters, sufficient land reserves, can promote the company to achieve a new round of development, and the company as at the end of 2009 has been sold open project resources 12.36 billion yuan, the performance of high locking factor. At the same time, the market adjustment in fact more pregnant is the opportunity for development, the future with the land market return to the rational, high-quality land acquisition opportunities will also appear in large numbers. And if the adjustment period lasts longer, there may be unsustainable business intentions to launch the industry, when good companies will also be able to seek opportunities for mergers and acquisitions. As a result, the Golden land is now more likely to consider accumulating strength, storing bullets for future development opportunities, and when the market picks up the rally, gold will strike out.