What does Vanke mean by a 40% pay cut
Recently, the topic of "Vanke salary adjustment" has aroused heated discussion among netizens. After Vanke adjusts the rank structure and salary structure this time, the base salary of some employees may be reduced by 40%.
As the boss of A-share real estate, why did Vanke choose to adjust the salary structure at this time? What is the performance this year? How does the fund layout real estate stocks? Little baseband, you know one by one.
Vanke adjusts rank structure
'low base salary, high performance' will be adopted
In response to market changes, Vanke once again carried out a new round of rank structure adjustment.
According to the employees of Vanke, the salary scale system has been expanded from 28 levels in the past to 50 levels in the real estate system. 40-45 are the general level of the city and the group leadership level above 45; As for the rank system, it is adjusted from the previous v1-7 rank system to GP (core partner), SP (business backbone) and JP (partner).
Due to the change of rank and salary scale, the salary structure of most employees has also been adjusted. The new salary adopts the combined salary of "low base salary and high performance".
This rank adjustment started as early as the end of last year and was implemented in various regions in September this year. The main action is to reduce the basic salary and add it to the performance salary. For example, the former salary structure of a senior manager of Vanke was the base salary of 14400 and the performance salary of 3600. Now it is the base salary of 7600. The reduced base salary becomes the performance salary. Based on this calculation, the base salary of the senior manager will be reduced by more than 40%.
In addition, behind Vanke's salary reduction, personnel adjustment is also continuing. It is understood that Vanke has reduced its staff in finance, general office and human resources line, while business departments such as marketing remain stable, mainly to save human costs.
Vanke said that before and after the adjustment, in fact, the salary of most people is unchanged, so there is no general drop or general rise. In fact, the significance of adjustment is to timely match the responsibility changes of personnel positions. It can be up and down, and it can no longer be ranked according to seniority. It is also more flexible for the organization.
Vanke explained: 'doing this is not a temporary action. It is a part of our transformation since 2012. In 2012, we judged that the real estate began to enter the silver age, so we began to transform accordingly. The transformation should not simply be a business change, but a corresponding change in the company's overall business and organizational structure. Therefore, the five in one reform of 'strategy, mechanism, culture, organization and people' began at that time. Since 2012, it has begun to extend and explore its business around urban supporting service providers. In 2013, it began to put forward the business partner mechanism and began to explore internally. In the past two years, when the business and mechanism have been explored to a certain stage, it will come to the reconstruction of organization and people. The adjustment of the salary system belongs to this part. "
In fact, this is not the first time Vanke has implemented salary reform. As early as 2016, after Shenzhen Metro became a major shareholder of Vanke, it once began to adjust salaries and cancel quarterly rewards to adapt to the salary structure of state-owned enterprises. Industry insiders said that after the adjustment, Vanke's salary level will be at the middle and low level in the industry.
Netizens have different views on this
In the case of the overall economic slowdown, the real estate industry is also under pressure without exception. In order to stabilize the operation of the enterprise and avoid the company from falling into business risks, major real estate enterprises have made their own tricks. Among them, the means of reducing expenditure by reducing staff and salaries seems to be common.
For Vanke's salary structure of 'low base salary and high performance', many netizens said it was understandable, 'it is more reasonable for real estate enterprises to adjust their salary in time than to suddenly lay off a large number of employees in case of business difficulties!' After the cold winter, the market economy adjusts itself, which is very good. "
However, some netizens said, "although many of the reduced parts are put into performance, at present, the industry is down, and the actual performance salary is not optimistic." Because the performance bonus is greater than the basic salary, leaders have a great degree of freedom in the adjudication of performance bonus, which may lead to the instability of employees' income. "
Vanke holds 100 billion yuan of funds
Net profit in the third quarter increased by 32% year-on-year
In the environment of market tightening, the property market has entered the cooling channel, and the performance of listed companies has attracted attention.
According to the third quarterly report released by Vanke, its performance in the third quarter maintained a steady growth, realized a net profit of 6.4 billion yuan and another monetary fund of 107.24 billion yuan. Vanke expressed the hope to adhere to the real value creation based on cash flow and maintain the stability of financial and capital conditions.
According to the financial report for the third quarter of 2019 recently disclosed by Vanke, the company achieved an operating revenue of 84.590 billion yuan in the third quarter, a year-on-year increase of 20.80%; The net profit attributable to shareholders of listed companies was 6.4 billion yuan, a year-on-year increase of 31.60%. In addition, the settlement area of real estate business was 6.087 million square meters, a year-on-year increase of 5.10%; It contributed 79.580 billion yuan of operating revenue, a year-on-year increase of 18.90%.
In the first nine months of this year, Vanke achieved a total operating revenue of 223.91 billion yuan, a year-on-year increase of 27.2%; The net profit attributable to shareholders of listed companies was 18.240 billion yuan, a year-on-year increase of 30.40%. Among them, the settlement area of real estate business was 14.55 million square meters, contributing an operating revenue of 212.57 billion yuan, with a year-on-year increase of 13.60% and 26.90% respectively. In the first nine months, the settlement gross profit margin of the company's real estate business was 27.60%, down 0.2 percentage points from the same period last year.
In terms of finance, as of the end of September, Vanke held monetary funds of 107.24 billion yuan, much higher than the total of short-term loans and interest bearing liabilities due within one year of 59.08 billion yuan.
Sound finance provided support for its business development. Vanke added 62 development projects in the third quarter, with a total construction area of about 14.79 million square meters and an equity planned construction area of about 11.553 million square meters. From January to September, the company added a total of 116 development projects, with a total construction area of about 28.321 million square meters and an equity planned construction area of about 20.42 million square meters. Calculated according to the amount of equity investment, 81% of them are located in the first and second tier cities.
While maintaining the advantages of residential development, Vanke actively develops property services, rental housing, commercial development and operation, logistics and warehousing services, standard office and Industrial Park, ice and snow vacation and other businesses around the strategic positioning of "urban and rural construction and life service provider". By the end of September, Vanke had opened about 98000 rental housing businesses; In the first three quarters, Vanke's logistics warehousing service business acquired four new projects, with a total construction area (referring to the construction area of leasable properties) of about 270000 square meters and a total construction area of logistics warehousing service business of about 9.98 million square meters.
However, Vanke's sales performance in October was temporarily weak. According to the data, Vanke's sales in October 2019 were only 44.29 billion, a year-on-year decrease of 10.1%. It is one of the few top 10 listed real estate enterprises with sales decline, second only to CNOOC real estate.
Real estate cooling
This year, various indicators show that the real estate market has cooled down.
According to the data of the National Bureau of statistics, from January to September this year, the sales area of commercial housing in China was 1.19 billion square meters, a year-on-year decrease of 0.1%; The sales amount was 11.1 trillion yuan, a year-on-year increase of 7.1%; In the third quarter, the sales area of commercial housing in China increased by 2.9% year-on-year, and the sales amount increased by 9.7% year-on-year.
From January to September, the national real estate development investment increased by 10.5% year-on-year, with a growth rate of 0.4 percentage points lower than that in the first half of the year; The area of new housing construction in China increased by 8.6% year-on-year, a decrease of 1.5 percentage points over the first half of the year.
According to the data of China Index Research Institute, the average premium rate of residential land in 300 cities in the third quarter was 11.6%, down 8.6 percentage points from the first half of the year. The supervision of real estate funds continued to be tightened. According to the report of the people's Bank of China, by the end of September, the balance of real estate loans had increased by 15.6% year-on-year, down 4.4 percentage points from the end of last year.
From the stock market performance, since the beginning of the year, the real estate index in the A-share market once rose from 2187.88 to 3060.65, an increase of more than 39%, but then the fluctuation decreased. As of November 5, the real estate index closed at 2465.30, an increase of 12.2% during the year.
From the perspective of individual stocks, Vanke A ranks first among real estate enterprises with a market value of 302.8 billion yuan, Poly Real estate, China Merchants Shekou, Huaxia happiness, Greenland holdings, Xincheng holdings, etc. It is worth noting that among the top 10 listed real estate enterprises in terms of market value, Xincheng holdings increased the most during the year, up to 45.42%, followed by Jindi group and Poly Real estate.
Although the real estate market has been under pressure since this year, there are still a large number of fund heavy positions in real estate stocks. It is worth noting that after the public fund oversubscribed the real estate stocks for four consecutive quarters, there was an overall low allocation at the end of the third quarter of this year.
By the end of the third quarter of this year, the most heavily held real estate stocks of public funds had changed from Vanke A to Poly Real estate, with a total of 401 heavily held Poly Real estate. Among them, e fund holds the largest market value of Poly Real estate, reaching 104 million yuan, followed by China Europe Fund, huitianfu fund and Penghua Fund.
In addition, as of the end of the third quarter, there were 264 funds with heavy positions in Vanke A, with a total shareholding of 417 million shares, accounting for 4.29% of the circulation ratio. Among them, Shanghai Oriental Securities holds a market value of 98.88 million yuan Vanke A, followed by Huabao fund, Harvest Fund and Xingquan fund.
Overall, compared with the first half of the year, the low allocation of public funds to real estate in the third quarter was obvious. Among them, the number of fund holdings of leading real estate stocks such as Greenland holdings, Xincheng holdings and Rongsheng development decreased significantly during the third quarter.