The Chinese New Year is coming, and Tan Shuzhen will call them to Hangzhou for a meeting, and it will last for three days. The general manager of the branch below is a little surprised. Ying Ying asked Yao Fen, but Yao Fen didn't know either. She said that Director Tan asked her to notify the meeting and said nothing else.

Xiaofang came back on Saturday, and Tan Shuzhen arrived at Zhang Chen's house on Sunday. Zhang Chen still went to the construction site in the dynamic area. Tan Shuzhen stayed at their house for a day, but she didn't know what she and Xiaofang were talking about.

Zhang Chen asked Xiaofang in the evening, and Xiaofang said there was nothing to help Sister Zhenzhen settle the score.

"Is there any problem with their company's accounts?" Zhang Chen asked.

"No problem, the flow rate is much slower than the previous year," said Xiaofang.

When Zhang Chen heard that there was no problem with the account, he did not ask again. Xiaofang then told him about Fanhua Network's round C financing. Zhang Chen quickly said, "I don't care about this, aren't you and Liu Yun?"

"You are the major shareholder." Xiaofang said, "you must continue to dilute your equity by financing."

"Yes, it doesn't matter if it's diluted." Zhang Chen said, "You can see how you can do it well, just do it."

Xiaofang shook her head, knowing that it would be useless to say more, so she won’t say it.

On Sunday afternoon, the general managers of Jinxiu China's branches all arrived. Most of them were in Hangzhou. When they arrived, they went home. Only the general managers of Changsha, Chengdu, Guiyang and Chongqing were locals. Yao Fen sent them to the Taohuayuan Hotel.

Lao Xie and Mr. Han came from Haicheng together. Zhang Chen and Tan Shuzhen went to the airport to pick them up. They had dinner at the Tuxiangyuan Hotel. During dinner, Liu Yun and Xiaofang also came. Liu Yun and Lao Xie were old acquaintances. Lao Xie's entertainment city wanted to be on a job advertisement, which was introduced to Liu Ligan by Liu Yun.

It was from that time that Lao Xie and Liu Ligan and Zhang Chen met, and then what happened next was happening.

When old friends met, they felt a little emotional, but because of Liu Ligan, it was not convenient to say too much, and everyone knows the relationship between Tan Shuzhen and Liu Ligan.

During the meal, Mr. Han was present, and Tan Shuzhen expressed her concerns. She told Mr. Han that it was correct for us to give up first-tier cities a few years ago and switch to third- and fourth-tier cities and counties below. At that time, the markets in these places had not yet risen. It can be said that we have picked all the cheap ones we should choose. The profit margins of our projects in these places were very high.

But now, the land market in third- and fourth-tier cities, even in the counties below, has begun to be standardized, and everyone has only the bidding and auctioning path. In this way, the cost of land acquisition will become higher and higher, and the profit margin of the project will be declining.

Tan Shuzhen and Mr. Han said: "This is not what I am worried about. What I am really worried about is that one is that our company's debt ratio is too high, and it has reached a level of 92%.

"Is this debt ratio real? There is no hidden or transferred debt?" Mr. Han asked.

Tan Shuzhen nodded and said, "It's real."

"That's not high. The high debt ratio of the real estate industry can be said to be a common problem in the industry. Your debt ratio is still low. I know that most real estate companies, especially those leading companies, have real debt ratios of more than 120%. If they do not transfer debts and beautify their statements through financial means, they will not be able to read their statements."

Mr. Han said: "In recent years, everyone has been trying hard to acquire land, and they have been leveraging and leveraging. Financing can be said to be by any means. You dare to take any kind of money. Your company has done a good job in risk control."

"I know." Tan Shuzhen said, "but such a high debt ratio is always frustrating. There is no problem when the wind is smooth. But once the environment deteriorates, you may be forced to sell assets at a low price to reduce the debt ratio."

"Yes, there will be this risk," said Mr. Han.

"This involves the second issue that makes me worry," said Tan Shuzhen. "Because most of our current projects are in third- and fourth-tier cities and county towns. Although these projects are still profitable, we calculated yesterday that the flow rate ratio is decreasing."

"That is, the possibility of asset realization has become weaker?" Mr. Han asked.

Tan Shuzhen nodded and said yes.

"This is for sure." Mr. Han said, "Compared with first-tier cities and county-level cities, purchasing power will be much worse than first-tier cities. Basically, the more severe the purchase restrictions in the place, the stronger the purchasing power of the place will be. Moreover, when the economic environment becomes worse, it will start from the end, that is, third- and fourth-tier cities.

"First-tier cities have an inertia, whether it is investment from local governments or consumption from residents, and it is difficult to stop the bus at once. Mr. Tan, the asset realization ability you mentioned has become weaker, which is indeed worth worrying. If all projects are at the third- and fourth-tier cities and county levels, a single project may not have a big impact, but if all projects explode in a concentrated manner, it will be a big problem."

"Yes, what I'm worried about is this. The national game of chess and the major economic environment is deteriorating, and it's all national. Mr. Han said that the concentrated outbreak situation may happen at any time." Tan Shuzhen said, "This is what makes me panic."

"This is the meeting for this?" Lao Xie asked.

Tan Shuzhen said right, "I was wondering whether our Jinxiu China needs to transform again. Calling everyone over is just to discuss this matter."

"Mr. Tan, how are you going to transfer?" Mr. Han asked.

"I was wondering whether we should give up projects with weak asset realization capabilities and start to increase development and sales while we can still take action. Yesterday, Xiaofang helped me sort out all our projects, starting from the last city, speeding up the development of existing land, no longer buying new land in the local area, and taking about a year to clear out the assets of these places.

"At the same time, shrink the front line, concentrate funds, return to first-tier cities, and return to cities where assets are quickly cashed in. If you can do this, it is not a terrible thing to have a high debt ratio. Of course, at the same time, you still need to reduce the debt ratio of the company."

Tan Shuzhen said, and Zhang Chen asked: "I'm back again. Didn't you say that first-tier cities have no space for you anymore, and they have been occupied by Chinese and national companies?"

"One time, this time, at that time, third- and fourth-tier cities and counties below were still in a blue ocean. There was a way out when they fought out, but now it was different. I think it would be a dead end to continue to waste in these places." Tan Shuzhen said, "So I have to come back, and I have to squeeze in even if I force myself."

Mr. Han nodded, and looked at Tan Shuzhen and said, "Dr. Tan, your consideration is correct, and it can be said that it is very forward-looking. Those companies that are still deploying everywhere will find that they are too big in a few years. However, in this case, this year will be a very painful year for you."

"I know that the report will be ugly and the pressure will be great," said Tan Shuzhen.

Xiaofang said: "The capital market is said to be very rational, but in fact it is the most irrational. In the capital market, scale is king. Other investors like to see your expansion, but they don't like to see your shrinkage."

"Reducing the debt ratio is even more thankless. Several investors will care about your real debt ratio. As Mr. Han said, as long as you can find a way to transfer or hide the debt, beautify the financial statements, and prevent the stock price from falling." Liu Yun said on the side.

Tan Shuzhen kept nodding, she said:

"I know what you said, on the one hand, the scale is shrinking, and on the other hand, the new land in first-tier cities is not increasing so quickly. Judging from the numbers, the rapid decrease in Jinxiu China's existing land is indeed ugly. Moreover, after the battlefield is converted, the profits in first-tier cities are not showing so quickly, which will affect the company's stock price.

"But I feel very sure that the time for the real estate industry to compete in speed and scale has passed. Whoever continues to compete in this way will not know how to die in the end. On the contrary, I feel that it is time to reduce the speed and scale. I don't do it now. When everyone realizes this, it may be too late."

"It's hard to make this decision," said Mr. Han, "but your judgment is right."

"It's really difficult. Not to mention anything else, it's difficult to coordinate within our company." Tan Shuzhen said, "For some branches, I am cutting off their backs, so we need to hold this meeting to unify everyone's thoughts."

"Mr. Tan, I support you. Our Hainan company. I will listen to you if you say how to shrink and what scale you have to shrink."

Lao Xie said that Mr. Han was about to speak, but Tan Shuzhen waved his hand. Mr. Han stopped ringing, and looked at Tan Shuzhen, Tan Shuzhen and Lao Xie said:

"You Hainan company will not only not shrink, but will continue to expand. Thank you for letting go."

Mr. Han laughed, Zhang Chen was puzzled and asked, "Tan Shuzhen, aren't you slapping yourself in the face? I just said that you have contracted third- and fourth-tier cities, but why did you turn around and say that Hainan will continue to expand? I think Haicheng is not even comparable to third-tier cities."

Tan Shuzhen said correctly: "In the map of your clothing, Haicheng cannot even be ranked in third- and fourth-tier cities. However, our real estate has our own map. On our map, the entire Hainan is a first-tier city."

"Why?" Zhang Chen asked.

When Tan Shuzhen saw Mr. Han laughing, she said, "You ask Mr. Han."

Mr. Han smiled and said to Zhang Chen: "What Mr. Tan is right, Hainan is indeed a special place. Hainan's houses are not bought by locals in Hainan, but by people across the country. The more capable people are buying houses in first-tier cities, they will also be interested in buying houses in Hainan at the same time.

"I guess Haicheng and Sanya will also issue purchase restrictions soon, but if these two places have purchase restrictions, it will be a very stupid decision."

Zhang Chen looked at Mr. Han, but still didn't understand. Mr. Han said to him:

"In this way, the number of houses for mainlanders going to Hainan will not be reduced, but will only move them from Haicheng and Sanya to other places with no purchase restrictions. For mainlanders, what is the difference between my house in Haicheng or Danzhou? As long as it is in Hainan, it will only push up housing prices in Hainan Province.

"I'm afraid this is also what Mr. Tan said. The Hainan branch does not need to reduce its size. Am I right? Mr. Tan?"

Tan Shuzhen nodded with a smile, and said, "Mr. Han is right. I think Hainan will only keep warm. Lao Xie, do you need to explain to you separately?"
Chapter completed!