At the beginning of 2020, the COVID-19 epidemic had a great impact on the economic development of our country. But for the real estate market, "housing, housing, not speculation" is the same tone. Overall, under the influence of the epidemic this year, some real estate enterprises have certain pressure to achieve their annual goals. Superimposed on the deleveraging demand under strict supervision, the capital chain of real estate enterprises is facing a test, and the sales pressure is further intensified.
In this context, as of December 4, 2020, the cumulative sales of Shimao Strait Development Company (hereinafter referred to as "Shimao Strait") exceeded the 100 billion mark. As a regional company, it took only five years for Shimao Strait to go from a 10 billion scale to a 100 billion camp, becoming one of the fastest companies to enter the 100 billion camp.
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Guangzhou Shimao Swan Bay real map
Recently, our reporter learned in an exclusive interview that it is thanks to the 17 years of experience in focusing on the Fujian market that Shimao Strait has successfully realized the organic integration of regional focus and global expansion. Under the current development opportunities of the Guangdong-Hong Kong-Macao Greater Bay Area, Shimao Strait will focus on the Greater Bay Area. While continuing to achieve steady growth, it has also explored a unique development path and become a reference sample for the whole industry with leading experience.
Sustained steady growth, running out of the "Shimao Strait Speed"
In the Shimao Strait 100 billion yuan performance scale, according to Yihan data show that Fujian Province over 65 billion yuan, the first year into the Guangdong-Hong Kong-Macao Greater Bay Area to complete the results of over 30 billion yuan. In addition, Hainan Free Trade Zone also has nearly 3 billion yuan sales contribution.
Looking back at the development trajectory of Shimao Strait, the company has always maintained a rare growth rate in the real estate industry. Sales in 2016 were 10.70 billion yuan, 25.10 billion yuan in 2017, and 50.50 billion yuan in 2018, with a three-year compound growth rate of more than 117%. Even in the "strictest regulation in history" environment in 2019, Shimao Strait still maintained a 60% growth rate, achieving a performance scale of about 90 billion yuan throughout the year.
In just five years, Shimao Strait has completed a leap from 10 billion to 100 billion. Lv Yi, executive director of Shimao Group and chairperson and president of Shimao Strait Development Company, said that the company can achieve the 100 billion milestone due to three points: first, the goal and spirit. The company’s strategic direction in recent years and the Shimao Strait spirit that has been passed down for 17 years guide the work direction and status of Shimao Strait people; second, reform and implementation. Reform has allowed Shimao Strait to continuously break through bottlenecks, and implementation has ensured the realization of reform goals; third, opportunities and reflections. Shimao Strait has seized many opportunities, including opportunities in Fujian Province, opportunities outside the province, opportunities to enter the Greater Bay Area, opportunities for integration, and opportunities for cooperation.
Lu Yi has also said in public that the rapid development of Shimao Strait in recent years is mainly due to the organizational reform and management reform of Shimao Group, which has carried out corporatized management of its regional companies. Lu Yi believes that the management of the organization is a dissipative structure, alternating between balance and imbalance, stability and instability, so that the organization can maintain vitality. Under the guidance of this strategy, Shimao Strait has cultivated a group of managers with "entrepreneurial spirit", and the enterprise has achieved individual and individual feedback to the enterprise, and promoted a good momentum of common development.
China Index Research Institute analysis pointed out that the comprehensive development strength of Shimao Strait has been continuously improving, and it has overtaken many powerful real estate enterprises in the "2020 China Real Estate Regional Company Excellence List TOP10". Yan Yuejin, Chief Research Officer of E-House Research Institute Think Tank Center, told reporters that as a regional company, Shimao Strait’s sales have exceeded 100 billion yuan, and it took only 17 years to go through the process that it took 20 to 30 years for 100 billion enterprises to go from 10 billion to 100 billion. It only took five years, which also shows that it has performed well in terms of scale expansion and corporate growth.
Focusing on the core battlefield and deeply empowering the Greater Bay Area
In 2019, the Outline of the Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area was implemented, and the Greater Bay Area entered its first year of development. "The development model of the Greater Bay Area is highly compatible with Shimao Group’s dream and responsibility in the Bay Area," said Lu Yi. Shimao Group has gathered more than 30 years of operating experience, and has invested important resources and core forces in the Greater Bay Area in an all-round way, making it a core area for the future development and full cultivation of the group. "
In 2019, Shimao Strait established the strategy of deepening the Greater Bay Area; in 2020, it will further expand the territory of the Bay Area, put nearly half of the value of 500 billion yuan into the Bay Area, and cover the regional core market with more than 40 plates. With abundant high-quality soil storage and benchmarking strategic projects, the Greater Bay Area will be empowered by regionalization and diversification.
According to incomplete statistics, since the beginning of 2020, Shimao Strait has connected three sons in Dongguan, with a new value of more than 12 billion yuan; continued to layout Foshan, increase the land reserves of Shunde and Chancheng; and added Jiangmen and Maoming and other places. As of now, Shimao Strait has rapidly deployed in Guangzhou, Shenzhen, Foshan, Dongguan, Zhuhai, Jiangmen and other core cities in the Bay Area, forming a comprehensive layout of the three core areas of Haixi Economic Zone, Guangdong-Hong Kong-Macao Greater Bay Area, and Hainan Free Trade Zone (Hong Kong).
Shimao Strait told reporters that the Bay Area is the future of Shimao Group’s deep cultivation area. At present, the group’s value in the Bay Area ranks second among real estate enterprises in the Bay Area, of which Shimao Strait has a value of nearly 250 billion yuan in the Bay Area.
In the company’s internal view, the Greater Bay Area beyond reasonable doubt is a hotspot city cluster for future development. In the next ten years, the entire Greater Bay Area will see 30 million population increase, laying the foundation for the unlimited development potential of this hot land of global attention. In fact, Shimao Strait, as the vanguard flag and innovation test field of Shimao Group, is more like the "special zone" within Shimao Group, which has been given great space by the group. Shimao Strait contributes about 1/3 of the performance scale of Shimao Group every year with the reform spirit of daring to break through, dare to take risks, dare to try, and dare to be the first in the world. Yan Yuejin analysis believes that Shimao Strait has a very important leading role in the Greater Bay Area market, especially with the increase in the development of the market around Guangzhou, which requires the participation of compound real estate companies like Shimao Strait.
Establish benchmarking projects and drive brand power with product strength
In 2017, Shimao Strait took the lead in landing the group’s product series and was fully recognized by the market. The first bright series product Xiamen Shimao Bright Tiancheng entered the market for 18 months, with a total sales of more than 7 billion yuan; the first national style product was born in Fuzhou Shimao Yunshang Guling, adding 4 billion yuan to the project.
When Lu Yi first entered the Bay Area in the Shimao Strait, he pointed out: "Only through benchmarking projects with good products, high quality, good operation, good service and high influence can we quickly open up the situation in the newly entered provinces and lay a solid foundation for deep cultivation in many provinces."
After the Shimao Strait entered the Bay Area, works such as Guangzhou Shimao Swan Bay, Guangzhou Shimao Tianyue, and Shenzhen Huangting Shimao Yuxi have been landed one after another. For a long time, Shimao Strait has cherished the value of land and has spared no effort to continuously excavate and shape "product power".
For example, the above three projects are located in the core of the city and have not been able to enter the market for many years. In the eyes of many companies, they are "thankless" projects. However, Shimao Strait believes that it is a rare opportunity to have the opportunity to enter the core area of the city, establish a benchmark and establish a brand. For this reason, the company spent 42 days to perfect more than 100 details of the Swan Bay project from the inside to the outside, and achieved a premium rate of 50% to 80%. The success of the Swan Bay project has also given Shimao Strait more cooperation opportunities in the Greater Bay Area. Shenzhen Huangting Shimao Yuxi is one of them.
After the successful transformation of Shimao Strait, Shimao Swan Bay has been positioned as a benchmark in Guangzhou and even the Greater Bay Area. It can be said that the creation of a series of benchmark projects has not only made great gains in the performance of Shimao Strait, but also quickly recognized the corporate brand.
Diversified development, practicing the "big aircraft strategy"
Diversified development has always been the growth gene of Shimao Group, which is called "big aircraft strategy" within the group. Real estate is the "main body"; the "solid wings" are business operations, hotel operation, property management and finance, etc., and the "stable tail" is high-tech, medical care, education, elderly care, culture and other quality resources. As the vanguard flag and innovative experimental field of Shimao Group, Shimao Strait is the most determined solidifier of these diversified formats.
Shimao Strait has fully implemented the "big aircraft strategy" of the comprehensive development of the group’s diverse businesses, and has now formed a good development situation of coordinated multi-business development. The business sectors include real estate development, super projects, landmark city complexes, hotels, commerce, cultural tourism development, culture, and high-tech.
In the process of empowering the Greater Bay Area, the company has integrated high-tech companies including Alibaba Cloud and SenseTime Technology; introduced high-quality educational resources such as Reed College of Harrow School and Forbidden Academy; signed contracts with internationally renowned hotel brands such as Conrad and Fairmont; created the Bay Area Living False God Pan Jiangmen Shimao Bihai Silver Lake, leading a new lifestyle in the Bay Area.
After the layout of 100 billion, adhere to "user-centric"
In recent years, the large-scale development of regional companies has become an industry trend. But with the real estate industry entering the era of stock, user requests have undergone fundamental and profound changes.
Regarding the development path of "after 100 billion", Lu Yi had a clear understanding a long time ago. "The volume of Shimao Strait is getting bigger and bigger, and the goal of struggle is getting bigger and bigger. We must adhere to the company’s traditions: strong execution, profound self-reflection, and down-to-earth self-innovation. Only by having the courage to reform can we break through the bottleneck."
When it comes to the company level, how to break through the bottleneck of "after 100 billion", Shimao Strait said that with the changes in the market and the adjustment of the business strategy module based on the organization, the company has identified three strategic goals for the future: aspire to become the most influential real estate company, the real estate company with the strongest ability to integrate resources, and the real estate company that can create value for users.
Under this trend, Shimao Strait regards the strategy of efficient deep cultivation and benchmarking as the source of life under the development of mature markets.
Whether it is a project, a region, a city, or an enterprise’s management standards, execution standards, product standards, service standards, organizational capabilities and corporate culture, Shimao Strait will launch a benchmarking strategy in all dimensions, learn from the strongest, defeat the strongest, and become the strongest. Based on this, Shimao Strait will not only deeply and thoroughly implement the group’s "big aircraft strategy" to empower the city in the future, focus on users, and create value for users, but also succeed in benchmarking strategies in various fields.
In response to the future operation trend of the real estate industry, the company believes that the stability of the industry will become increasingly high, and the survival of the fittest caused by this round of cyclical adjustment will greatly increase the concentration of the entire real estate industry, promoting the maturity, specialization, and systematization of the industry.
In response to the opportunities in the future cooperation market, the company told reporters that the real estate industry is expected to enter a stable and calm stage. Therefore, there will be many opportunities for mergers and acquisitions or cooperation opportunities in the future, which is the general trend. Opportunities and risks have always coexisted, and the company will try to consolidate itself and avoid risks as much as possible.?