Diversification of Housing Enterprises in Shenzhen

Recently, the news that Vanke Wancun plans to cancel some of the housing resources of farmers in Shenzhen further confirms the unsatisfactory statement of diversified business returns made by Vanke executives at the annual shareholders' meeting. Li Yujia, a real estate analyst in Shenzhen, believes that the traditional land-acquisition-financing-building-selling mode of Housing enterprises is very skilled, but there is still a long way to go for Shenzhen Housing enterprises to achieve self-sustaining operation and cross-border innovation. In recent years, with the rapid expansion of real estate industry, Shenzhen real estate enterprises represented by Vanke, Hengda, Jindi, Jiazhaoye, Jingji and Xinghe have actively developed non-development residential business, some of which are related to real estate development business, such as leasing, commercial real estate, industrial real estate, etc. Direct cross-border, involved in financial capital, culture, education, tourism, science and technology industries and other fields, began to "de-real estate" operation of paint.

Then, what are the specific performances of Shenzhen Housing enterprises in diversification development? What are the plans and objectives for diversification? In recent years, Vanke has vigorously promoted its diversified business and transformed itself into a service provider for urban and rural construction and life. Its business has extended to business, long-term rental apartments, logistics warehousing, ice and snow vacation, education and other fields, especially the rental business has become an equal position in the development of business. Core business. But Zhu Jiusheng, president and CEO of Vanke, admitted at the annual shareholders'meeting that the returns of Vanke Group's diversified business are not satisfactory.

The main advantage of real estate development is gradually disappearing, and the multi-business is developing slowly, which makes Vanke feel pressure. Since the third quarter of 2018, Vanke has formally changed from a diversified development model to a convergent focus model. Some businesses have been suspended or scaled down, such as pension. Just as Yuliang, chairman of the board of directors of Vanke, described Vanke's diversified development as "pruning and cutting leaves" rather than "cutting down trees and trees", from single residential development to diversified layout has become the strategic direction of Shenzhen's Housing enterprises in recent years. It is a consistent practice to adjust the new business in time.

For example, Evergrande has been involved in business areas in recent years, ranging from real estate, tourism, finance, big health to the new energy automotive industry. Xu Jiayin said that Evergrande will not involve more industries in the next five years. In fact, Hengdu's diversified business development is not smooth sailing. In the past, Evergrande has tried grain, oil, dairy and mineral water industries, but its annual output value is too small to cancel or shrink. In Xu Jiayin's view, the criterion for choosing an industrial layout is to expect that the scale of the industry should match the current scale of Hengda. For example, tourism, big health and new energy vehicles are all industries of trillion scale in the future, and the market space is huge.

In Shenzhen, China Merchants Shekou Value Factory and Nanhai Yiku, OCT Contemporary Art Center of Overseas Chinese City, Manjinghua Art Museum, Xinghe Guofeng Art Museum, Vanke Art Museum and Vanke Design Commune are all art spaces used by housing enterprises to connect and interact with users. And in education, Beijing-based Shenzhen City University and Vanke Meisha Education are representatives of all stages of education business. "In the future, the city will be a cell city with sustainable development and complete system. Vanke will have hundreds of millions of contacts with Shenzhen people to enhance consumers'awareness of Vanke brand and products." According to Zhang Jiwen, CEO of Meisha Education Department of Vanke Group. In sports, Hengda and Jiazhaoye each have a Chinese Super League football team. Hengda Football Team has won the Asian Championship and League Championship many times, while Jiazhaoye is adapting to the Chinese Super League. Jindi's tennis industry is outstanding. Hongjindi Sports Industry Co., Ltd. has been deeply cultivated in the vertical tennis industry chain for many years. It has been involved in four major industrial clusters, namely, sports brokerage, sports education, sports science and technology, sports assets and so on.

Why are housing enterprises so focused on exploiting new industries? Golden Land said that the tennis industry is ultimately intended to feed back the real estate development business of the main industry and realize the linkage and coupling of multiple industries. Overseas Chinese Town Group is the one that goes further and smoother in the cultural and tourism industry. Overseas Chinese Town Group has taken a unique path since the early window of the world and Happy Valley. Although the investment of cultural tourism industry is large, the precipitation period is long, and the industrial chain is long, OCT Group uses cultural tourism to promote the business matching and quality of life in the radiated areas, and then drives the sales of residential products to feed back the investment of cultural tourism, so as to achieve sustainable development. With the further implementation of Shenzhen's innovation-driven development strategy, Shenzhen's Housing enterprises have begun to devote themselves to the science and technology industry, and the housing enterprises represented by Hengda and Baoneng have entered into the new energy industry. Vanke has begun to have many ideas in real estate science and technology, while Xinghe Real Estate has started to have more ideas in real Estate Science and technology. Through equity investment, the industry continuously lays out the science and technology industry, and even involves in the aerospace industry.