Vanke big news! Ten million pensions, Wang Shi doesn’t want it.

On April 30th, Vanke held the 2023 Annual General Meeting of Shareholders in Yantian, Shenzhen, attended by Yu Liang, Chairman of Vanke’s Board of Directors, Zhu Jiusheng, President of Vanke, and Xin Jie, Chairman of Shenzhen Railway Group, a major shareholder of Vanke. At the meeting, Zhu Jiusheng, president of Vanke, revealed to the media: "Because Vanke is short of funds, Wang Shi voluntarily gave up his 10 million pension in 2023."

Wang Shi gave up his ten million pension.

According to the report of China Fund on May 1st, at Vanke’s 2023 Annual General Meeting on the afternoon of April 30th, Vanke President Zhu Jiusheng revealed to the media that under the background of tight cash flow, Wang Shi voluntarily gave up his 10 million pension in 2023 to spend the difficult time with the company.

Wang Shi is the founder of Vanke. In 2015, the smoke of the "Baowan dispute" filled the capital market. In the end, Shenzhen Metro Group became the major shareholder of Vanke, China Resources withdrew, Baoneng failed, and Wang Shi retired. At that time, Wang Shi did not participate in the nomination of Vanke’s new board of directors and "retired" from the position of chairman of Vanke’s board of directors.

On June 30, 2017, Wang Shi stepped down as the chairman of Vanke and officially handed over to Yu Liang. According to The Paper, Wang Shi revealed in his follow-up activities that his decision to retire in 2017 was made after the "Wanbao dispute". "In fact, I had to retire at the age of 70, four years earlier than expected. But I think this is the best time to shift. I resigned as the general manager in 1999 and guided the team of Vanke to move forward step by step. I am very relieved of the team of Yu Liangdai. "

According to Vanke’s 2017 annual report, during 2010-2016, Wang Shi, as the chairman of the board of directors, earned an average annual after-tax economic profit bonus of 16.7983 million yuan.

In addition, Wang Shi’s total pre-tax salary in 2016 was 9.99 million yuan, and the total pre-tax salary from January to June 2017 was 5.947 million yuan, or it can be speculated that his total annual salary was about 11.9 million yuan.

The annual report of that year showed that in order to fully affirm Wang Shi’s irreplaceable contribution to the company in the past 33 years, after deliberation, the board of directors appointed Wang Shi as honorary chairman of the board of directors. As honorary chairman, Wang Shi is not a director, supervisor or senior manager of the Company and does not participate in corporate governance.

Although he does not participate in the company’s operation and governance after leaving office, Wang Shi can still receive a "pension" from Vanke.

After retirement, according to Wang Shi’s frank statement on a program: "There is nothing inconvenient to say about the annual income, that is, the pension, the honorary chairman for life, this salary is still unchanged, which adds up to more than 10 million."

"Slimming" again after 5 years.

Yu Liang: I have never sold the company’s stock for 30 years.

In the investor research activity on April 14th, Vanke’s management admitted that the company did encounter staged operational difficulties and its liquidity was under pressure in the short term.

Vanke’s latest financial report shows that its operating income in the first quarter of 2024 was 61.594 billion yuan, down 10.05% year-on-year, with a net loss of 362 million yuan, compared with a net profit of 1.446 billion yuan in the same period last year.

Vanke disclosed in the report that the net profit loss was mainly affected by the decline in settlement scale and the decline in gross profit margin of development business.

On April 30th, Vanke held the 2023 Annual General Meeting of Shareholders in Shenzhen. At this shareholders’ meeting, Xin Jie, chairman of Shenzhen Metro Group, and Yu Liang, chairman of Vanke’s board of directors, the major shareholders, responded to the market’s concerns about Shenzhen Railway’s return on investment, stock price fluctuation, financing progress and the landing of syndicated loans.

Yu Liang said that the current performance of the company’s share price certainly can’t meet the requirements of shareholders, and it fully accepts the criticism of shareholders, and is working out a plan to increase the stock of the management team. At the same time, we must firmly "slim down".

The last time Vanke mentioned "slimming" was in 2019. At that time, in order to "live", "live well" and "live for a long time", Vanke strategically focused on "pruning and cutting leaves" and "consolidating and upgrading the basic disk" Since then, many diversified businesses of Vanke have gradually faded out of sight.

This time, "slimming" is also to "live".

Yu Liang explained that the key to boost the stock price is to do a good job in the company, reduce risks, improve fundamentals and seek long-term healthy development. In this regard, Vanke has formulated a package to achieve three purposes: first, reduce debt, reduce interest-bearing debt by more than 100 billion yuan in the next two years, and reduce the total scale of interest-bearing debt by more than half in the next five years; Second, complete the transformation of financing mode, from the mode of unified borrowing and unified repayment to the mode of main credit, and gradually turn to the financing mode of project and asset credit; Third, focus on the main business, free up limited resources, and do a good job in developing comprehensive residential areas, property services and renting apartments. The main contents of high-quality development of real estate in the future are good houses, good communities and good services. Vanke focuses on three major businesses, the market has prospects and the society has needs. The improvement of residents’ living conditions, rental housing, and the demand space and prospect of property services are still broad, and Vanke has more advantages in these businesses.

Vanke’s package mainly includes two stages.

The first stage is to slim down firmly, adjust financing mode and degrade risks. Specifically, in addition to the three main businesses, other businesses will be withdrawn, and non-main financial investments will be cleared and transferred. Resolutely and vigorously promote large-scale asset transactions such as commercial offices, and plan to complete 20 billion yuan each year. At the same time, actively complete the transformation of financing model. The second stage is to focus on the main business, do fine business, and become the benchmark of products and services in the industry. The package is not only a contraction and pressure drop plan, but also a development and enterprising plan. The first stage of slimming is to gather resources and lay the foundation for the second stage. For the three dominant businesses anchored, Vanke will concentrate its resources and management energy to become stronger and maintain a continuous lead.

Regarding the stock price fluctuation that investors are concerned about, Yu Liang admits that the fate of the management team is tied to the fate of the company. Since becoming a director of Vanke in 1994, he has only bought and never sold for 30 years. The current performance of the stock price is definitely not up to the requirements of shareholders, and it is completely criticized by shareholders, and a plan for increasing the stock holdings of the management team is being formulated.

"Financing has gradually improved"

Since the beginning of this year, Vanke has encountered phased operational difficulties, short-term liquidity is under pressure, and various negative public opinions have been encountered one after another, causing market doubts.

In the view of Xin Jie, chairman of Shenzhen Railway Group, it is inevitable to encounter difficulties and adjustments in the process of enterprise development, and there has never been a smooth enterprise. The key is the attitude towards difficulties and the determination to solve problems. Vanke’s management has a full understanding of the current situation and is determined to focus on the main business, slim down and keep fit, reduce debt and accelerate the transformation of financing model. This package of measures reflects the firm attitude of the management. As long as Qi Xin works together, I believe there are no insurmountable difficulties.

"Other cooperation projects with Vanke are actively planned and promoted in a market-oriented and rule-of-law manner. Once they land, Vanke will make an announcement."

In addition, Zhu Jiusheng, president of Vanke, revealed the financing progress of Vanke and the landing of syndicated loans. He said that thanks to bank support and his own efforts, financing has gradually improved and he is full of confidence in the subsequent progress.

Following the statement of the performance promotion meeting in March, Zhu Jiusheng responded to the problem of how to deal with the phased liquidity challenge with the "triple mountain" and emphasized three work priorities for the above challenges.

First, the real estate financing coordination mechanism (white list) is implemented to the letter, and it can be reported to the best. At present, the group has applied for 59 projects to be included in the white list; Second, vigorously promote operating property loans, which can not only solve the historical stock problem, but also obtain new liquidity in stages; Third, syndicated loans, which have won the support of many banks and can improve the efficiency of cooperation between banks and enterprises, are being actively promoted.

As of the first quarter of 2024, Vanke’s debt ratio after deducting advance payments was 64.9%, down 0.6 percentage points from the end of 2023, and its net debt ratio was 59.3%; Holding monetary funds of 83.07 billion yuan can cover interest-bearing liabilities due within one year.

Source: national business daily comprehensive from every app (Reporter: Huang Wanyin), China Fund, The Paper.

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Original title: "Vanke big news! Ten million pensions, Wang Shi doesn’t want it. "

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