What happened to Country Garden？

Hello, everyone, I’m Cat Two who has been working hard!

Because there are great similarities between Evergrande and Country Garden in their development models, many people have been paying attention to Country Garden since Evergrande Xu Jiayin was arrested.

Two days ago, all kinds of gossip were flying all over the sky, and it was widely rumored that Country Garden’s "founder and father may have left the country".

Immediately, this news triggered a fierce undercurrent.

What happened to Country Garden?

At this sensitive time, a false message is likely to be the last straw to crush the camel.

Therefore, Country Garden urgently issued a statement:

The founder and chairman of the board of directors of the group company are currently working normally in China.

However, some people still expressed concern after seeing Country Garden’s statement:

"It’s better to watch closely";

"It’s still in China, but I don’t understand it later."

Country Garden and Evergrande have a high degree of similarity.

Both of them are dilemmas caused by high leverage, high expansion and high risk business models.

Both of them were in the golden age of China real estate market, using low-cost financing, constantly acquiring land and developing projects, pursuing scale and speed, ignoring efficiency and quality.

Their main businesses are concentrated in third-and fourth-tier cities, but now the house prices in third-and fourth-tier cities are declining in a short period of time.

Both companies have also experienced problems such as declining sales, tight capital and debt pressure after the relevant departments in China tightened their real estate control policies.

Both of them have many hidden debts, such as accounts received in advance, goodwill, accounts payable, etc., which are not fully reflected in their financial reports.

Both have a lot of cross-border investments, such as new energy vehicles, finance and culture, which are not fully included in the real estate business.

In the face of the crisis, both of them have taken similar measures, such as cutting prices, selling assets, laying off employees and reducing wages, and asking for help from relevant departments.

Moreover, both of them have many unfinished projects, such as "uncompleted residential flats" and "ghost towns", which have not been completely converted into cash flow.

The structural similarity of these businesses is not the most terrible.

The most frightening thing is that the two scripts are highly similar.

First of all, the debts are overdue, and then they all choose to lie flat with peace of mind.

After the thunder storm, Xu Jiayin’s ex-wife and a group of senior executives of the company took the lead, abandoned Evergrande and fled first, which really set off a lot of print runs.

Country Garden is not much better. Yang Huiyan, the head of the company, transferred more than 6 billion yuan to his own organization, and Li Changjiang, the company’s executive, abandoned the ship directly on the grounds that his wife and children were hot on the kang.

These obscene operations have made the masses angry.

In the past few years, the Yang family in Country Garden received a total dividend of 42 billion yuan, and Mo Bin, the president of Country Garden, received a salary of 230 million yuan at most, and the annual salary of Country Garden executives was tens of millions.

Now that something is wrong, do you want to lift your pants and slip away?

Why can these people eat and wipe clean, but they don’t take responsibility!

It is these people, it is these real estate enterprises, that make the housing life of ordinary people in China malodorous and sorrowful. In the end, they want to carry huge sums of money and anoint their feet with oil.

Urgency, which is a promise:

Baojiaolou!

Obviously, it was the people’s own money to buy a house, but the money was misappropriated by them and the house was rotten.

In the end, you have to cry and beg them for a promise to "guarantee the building"?

It is necessary and natural to hand over the building, and it is their last road to redemption.

Xu Jiayin of Evergrande has moved in, which is a wake-up call for many developers.

I hope that Yang Moumou of Country Garden, it is really best to give his life to ensure the delivery of the building.