Breaking And Establishing Marketing Organization

As a representative of quasi 100 billion real estate enterprises, Xinli's performance this year has attracted much attention from the market.

On July 14, SunPower Holdings (Group) Co., Ltd. (02103. HK, hereinafter referred to as "SunPower") released its first half operating data, and SunPower realized 43.54 billion contract sales amount, a year-on-year decrease of 16.28%. According to the analysis of industry insiders, according to the sales scale of last year's 90 billion yuan and the 49.3% equity ratio, if the equity ratio is appropriately reduced, Xinli may achieve the full range sales target of 100 billion yuan this year.

At the annual report performance meeting in March this year, Chen Kai, who joined SunPower as co chairman, CEO and executive director on March 2, was pushed to the stage by Zhang Yuanyuan, the soul of SunPower. According to people familiar with the matter, after Chen Kai joined Xinli, he pushed the self-sale team off and re established a marketing company. To this end, Chen Kai carried out a series of personnel adjustments in Xinli.

Under the influence of multiple uncertain factors, the real estate market in the second half of this year is not optimistic. Whether Chen Kai can lead Xinli to successfully break through the encirclement and successfully enter the "100 billion real estate enterprise club" is still full of variables.

Recently, the 21st century economic report exclusively obtained a notice on the adjustment of the marketing line team of Xinli Ganyue city company. The notice was issued within the company on July 8, revealing that the group has issued a document to establish a marketing company, and the marketing team of the city company has been adjusted simultaneously.

The breaking and establishment of marketing organization

In the face of the crisis in the market, how to achieve performance improvement? To promote the reform of marketing organization may be a breakthrough after Chen Kai took over Xinli.

In the notice issued by Xinli Ganyue regional company, it is emphasized that under the premise of establishing marketing company of the group, the project marketing line personnel within Jiangxi scope of Ganyue city company will be transferred to the marketing company, and the salary and welfare will remain unchanged; the existing team and management mode of projects in Fujian area will remain unchanged.

The notice also stressed that "after the establishment of the marketing company, the marketing management department and the human resources administration department should actively cooperate in starting the handover of marketing trading projects in Jiangxi Province.".

Xinli's change, according to people familiar with the matter, not only makes way for the cost control of the group, but also paves the way for the financial optimization of listed companies. As an off balance sheet company, Xinli can put some financial operations that are not conducive to the presentation of financial statement data in off balance sheet companies.

In addition, the aforementioned people also pointed out that most developers who want to set up marketing companies are still adjusting their organizational structure.

A person who has been engaged in marketing in the real estate industry for more than 15 years points out that the real estate sales are entering the third stage. After going through the agency sales and self built sales teams, the real estate enterprises find that there are more and more self selling personnel, so they simply separate them out. This is from the per capita efficiency, personnel salaries, social security, tax planning and other aspects. Some enterprises want to make it an independent company and develop outward business to generate certain profits.

At present, among the large real estate enterprises, Shimao Strait, Xincheng, poly and Vanke have established marketing companies. Vanke established Weijia marketing in 2017, while poly investment consulting company established in 2001 has already expanded its business to the whole country. In 2018, it even announced the reorganization and integration of its first-hand and second-hand agency business with Hefu China. Shimao Strait and Xincheng operate the sales company as a supporting department.

According to the above senior marketing insiders, with the growth of real estate sales scale, the developer's internal work is more and more subdivided and professional. Comprehensive evaluation from talent management, salary and other aspects shows that it has advantages over Party B's sales agency in attracting talents to join. For example, the Commission points given by the agent company to the sales personnel are in the range of one thousandth to five thousandth, while the basic wage threshold given by the developer to the sales is higher than that of the agent company, and the Commission is 1.5-1.5%. Among them, private enterprises account for 3-6% of the total.

Many real estate marketing professionals pointed out that in order to achieve the catfish effect, developers will separate the marketing team. Through complete or partial divestiture, the self marketing team and the agency company will form a competition mechanism, conduct internal PK, and increase internal competitiveness, so as to enhance the marketing force.

For example, the marketing companies in Xincheng and Shimao Strait are not entity concepts, but do some market research, internal training and other work to improve the construction of marketing platform. Such a marketing company focuses on improving the marketing level, and essentially optimizes the financial data and has little effect on cost control.

The above-mentioned senior people in the industry say that the starting point of the company is marketing. However, there are two ways to go in marketing, including basic management and information technology. How to transform the original funnel-shaped transaction system into an active customer seeking system is the key. In his opinion, Zhongliang, Xuhui and rongchuang, which once acquired agency companies, have not set up marketing companies at present. This shows that the key to promote the marketing force is to straighten out the internal structure and do a good job of "organization driven + talent driven".

Chen Kai's new force reform

As a top professional manager in the real estate industry in China, Chen Kai is good at exploring the growth of an enterprise. He has successively held important positions in sunshine city (000671. SZ) and Zhongnan land, helping the two companies from scale of 10 billion to cross the threshold of 100 billion.

As a matter of fact, since joining Zhongnan land, Chen Kai has been cooperating in the form of CO innovation platform between his company and his employer company. For example, Zhongnan puyue was co founded by puyue assets and Zhongnan Construction (sz000961); so was the cooperation with SunPower, which was registered in April this year. It can be said that the path of professional managers in the current industry is unparalleled.

After leaving Sunshine City, Chen Kai, who has always been low-key, once appeared at the 2016 annual meeting of Boao real estate forum in the 21st century. At that time, Chen Kai disclosed to the 21st century economic report that he had established an asset management company, and wanted to realize light asset management through the development of long-term rental apartments through land leasing.

But a year later, Chen Kai returned to work. In the first quarter report of Zhongnan Construction in 2018, Chen Kai became one of the top ten circulating shareholders of Zhongnan Construction, becoming the largest shareholder of individual shares.

In fact, after joining Xinli at the beginning of the year, Chen Kai adjusted its organizational structure, and then promoted the establishment of a marketing company. However, Chen Kai will also face many difficulties in the financial structure. The market competition in the second half of the year is more intense, leaving Xinli with little time.

After Chen Kai took over Xinli, he quickly opened the curtain of personnel adjustment. Chen Kaixian invited Tang Yilong, his former subordinates in Longhu and Yangguang City, and Hu Jun, an old subordinate of Zhongnan land, to join Xinli, and Zhao Xun, vice president of the former Xuhui yinshengtai group, to join Xinli as the group's head of human resources.

After that, Chen Kaili established a marketing company, and song Xiangxi, the group's marketing director, was transferred back to Nanchang to be responsible for the marketing company. According to people familiar with the matter, Xinli Jiangxi's marketing company will merge Ganxi and Ganyue marketing companies, with Xinli holding 100% of the shares.

According to Li Zhanhong, President of Qujiang xinaopeng culture and education holding group, many developers have set up their own sales companies. One of the most critical reasons is that there are more and more cooperative development projects, which often requires a professional sales team that they can control. This is the main reason why marketing companies are back in the market.

It is reasonable to put this view on Xinli. The sales of Xinli exceeded 90 billion yuan last year, but in fact, equity sales accounted for only 49.3%. This year, it is not ruled out that in order to achieve the goal of 100 billion yuan, we should enlarge the proportion of cooperative rights and interests. At this time, using a marketing company as a project agent has more advantages than disadvantages for group control.

Chen Kai may be out of this consideration. At present, Xinli is mainly distributed in Jiangxi and Huizhou, Guangdong. According to the annual report of 2019, by the end of 2019, the total land reserve held by Xinli reached about 15.09 million square meters, of which Jiangxi, Yangtze River Delta, Dawan district and other central and Western core cities accounted for about 33.1%, 17.3%, 32.5% and 17.1% respectively.

If the regional market falls, the sustainability of its performance will be greatly challenged. In addition, higher financial leverage and lower equity sales are also important factors restricting the development of the company. In the past, SunPower was a company relying on financial leverage to expand. In 2016, 2017 and 2018, the net debt ratio of Xinli was 190%, 270% and 240%, which was one of the companies with the highest net debt ratio in the industry. Even this year, the bond issuance rate is still as high as 11.7%.

Moreover, Chen Kai has more problems to face in Xinli, such as investment and development. Xinli is in Nanchang, Jiangxi Province, which is the base camp. So far this year, only one piece of land has been taken by Xinli. In 2019, Xinli's land acquisition area in Nanchang ranks behind Vanke. For example, Xinli's current revenue quality is low. By the end of 2019, Xinli's net profit margin was 7.5%, significantly lower than the average 10% net profit margin of peers. The establishment of marketing companies is also out of the consideration of financial data optimization. The net leverage ratio of Xinli is still higher than the actual level of financial leverage.