As a high turnover industry, real estate needs land, capital and people to go hand in hand. If you are not careful, there will be a risk that the capital flow will break. In recent years, Evergrande has not only raced around the country with high leverage, but also entered many industries such as new energy vehicles, cultural tourism and health care with great fanfare. Seemingly diversified development, in fact, it bears very high business risks.
Judging from the current ratio (current assets/current liabilities), Evergrande is obviously better than Vanke and Country Garden, but the current ratios of the three leading real estate enterprises are not very safe, which shows to some extent the current situation of the real estate industry, and everyone is trying to make use of leverage as much as possible to make it large-scale.
Independence of Vanke
Vanke's independence is inseparable from Yu Liang's sense of industry crisis. As early as 20 18, Vanke shouted the slogan of survival in a unique way, so it was particularly conservative compared with a group of radical peers in the formulation of development strategy. Yu Liang's slow and steady business strategy has indeed achieved good results, so that Vanke not only survived, but also lived vividly.
Vanke proposed transformation as early as 20 12, and actively laid out markets related to traditional development business, such as long-term rental apartments, logistics, commerce and other industries. Compared with single residential development, Vanke is more willing to deposit production capacity on TOD, urban renewal and large-scale complex projects.
Although the income from transformation business is not high at present, strategic transformation can increase Vanke's competitive track, and ensure Vanke's sustained and safe growth through diversified business development when China's real estate development enters the ceiling.