Author: Cao Anxun.

In today's weather is good. Today's weather is good.

As the industry adjusts to the aftermath of the storm, with the initial effects of the new policies showing, resolute self-rescue decisions and actions have become the sword for real estate companies to weather the storm. China Vanke is well aware of this, and has launched a new round of shareholding plans.

On July 9th, Vanke announced that 1862 core managers of the company plan to raise funds of 0.2 billion yuan to increase the company's A-share stock within six months.

This is also the most significant amount and number of participants in the ten years that the Vanke management team has repeatedly increased their holdings of Vanke stock. Unlike many listed companies that set a price ceiling in their shareholding plans, Vanke does not set a price range in this shareholding plan, and the increased shareholding is voluntarily locked for two years.

Vanke stated that the management team and core personnel of the company will increase their shareholding to the greatest extent possible within their capabilities, in order to express their full confidence in the company's prospects and their resolute determination to work together.

Some industry insiders believe that Vanke's shareholding plan, whether it is the amount, the price range is not set, or the locking period, reflects its willingness to spare no cost to boost the market's confidence.

According to analyst Fang Peng from Sinolink, Vanke's pursuit of cash flow in the first half of the year, increased inventory turnover and asset disposal, leading to increased performance pressure. However, the planned shareholding behavior of core staff in Vanke's A-share stock has boosted investor confidence.

According to Vanke's announcement on July 9th, the net loss attributable to equity shareholders of the company is expected to be in the range of 7 billion yuan to 9 billion yuan in the first half of the year.

This preview of the most difficult interim report in history illustrates the transformation and adjustment storm that Vanke has experienced. The Vanke management team gave a candid explanation, stating that the expected net loss was mainly due to the scale of delivery settlements in the second quarter being significantly higher than that of the first quarter, and losses from some asset disposals from the starting of the second quarter.

For Vanke, the focus should be on operating and cash flow conditions, which will determine whether it can successfully emerge from the pain.

As of the close of trading on July 12th, Vanke's A-share price was 6.95 yuan/share, up 2.06%, and has risen for two consecutive days.

For Vanke, the current focus should be on the operation and cash flow, which is related to Vanke's ability to smoothly emerge from the difficulties.

It is reassuring that Yu Liang's 'slimming and fitness' solution has initially proven effective.

At present, Vanke's financing cash flow is sufficient. Agricultural Bank of China, China Merchants Bank, Bank of China and other state-owned and commercial banks are supporting Vanke, with a net financing amount of over 60 billion yuan in the first half of the year, corresponding to debt repayment of over 50 billion yuan. Among them, China Merchants Bank-led a consortium loan of 20 billion yuan, which in recent years only a few of the top central enterprises can obtain, and is one of the largest single loans in the real estate industry in recent years, allowing Vanke to safely weather the storm.

After passing the peak of debt repayment in the first half of the year, Vanke has no more overseas public bonds in the second half of the year, and only two public domestic bonds are left, which will be repaid through the operating cash flow and consortium loans.

At the same time, Vanke is also accelerating 'slimming down', with assets worth 9.34 billion yuan retrieved through asset transactions in the first half of the year, even including the last resort of Qibao Vanke Plaza, Nanxiang Impression City MEGA and other commercial assets that are now on the shelves.

While speeding up its recovery, Vanke is also assisting in its transformation towards focusing on developing integrated residential areas, property services and leasing apartments. In terms of development business, Vanke achieved total sales of 126.72 billion yuan in the first half of the year, ranking third in the industry, with gross profit margins of over 18% for projects that have already been sold; its leasing housing business also maintains its industry-leading edge, with Vanke Pao Yu achieving a GOP margin rate of 90.1% in the first half of the year, expanding its new projects by 0.015 million units, a year-on-year increase of 85.3%.

Cloud Park has grown up and is making more money, increasing its ability to defy the market. After achieving the first dual increase in revenue and net profit since its listing last year, the first half of the year was spent refining its operations, resulting in an efficiency improvement of nearly 0.2 billion yuan.

Some investors have said that Vanke's operations and financing have improved significantly from the beginning of the year, and the worst-case scenario has probably passed.

It is gratifying to note that Yu Liang's 'slimming and fitness' solution has initially proven effective.

As for Vanke, the most important thing now is to focus on the operation and cash flow, which will determine whether Vanke can emerge from the pain smoothly.

Looking back on Vanke's situation this year, there have been several ups and downs, but all with a happy outcome.

After launching the "slimming and strengthening" program, Vanke received support from major shareholder Shenzhen Metro and various financial institutions, and with the help of the new policies for the real estate market in the four first-tier cities, Vanke weathered the storm of falling stocks and bonds, landing safely.

Looking back over the years, as an old real estate company that has experienced various hardships such as the "Jun Wan dispute" and the "Bao Wan dispute", this may only be a small wave in Vanke's 40-year history.

After more than half a year of exploration and waiting for the winds to come, Yu Liang, the center of the storm, and other Vanke management personnel have a clearer understanding of the road ahead.

Vanke said that in the second half of the year, it will work hard to implement a comprehensive plan to reorganize and resolve debt risks, and has the confidence and determination to push the company back onto the road to healthy development as soon as possible.

They firmly believe that policies will continue to provide sustained support to the market, and that the current supply level is insufficient in both total quantity and structure. The demand for the next ten years can completely guarantee an annual starting area of 1-1.2 billion square meters. "As long as the industry survives, there will be opportunities."

According to data from CRIC, in June, the sales volume of all top 100 real estate companies increased by 32.5% month-on-month and the year-on-year drop narrowed. There were signs of stabilization in multiple core cities' transactions. Since April, Vanke's own sales have also been rising month by month.

Compared with real estate companies like Gree Real Estate and Midea Real Est, who are "de-real-izing" their business, it is even more commendable to be a stalwart in the industry. It is precisely the existence and innovation of these stalwarts that will make the development of the industry increasingly modernized and standardized.

Riding the spring breeze of the core city's real estate market recovery and making sustained, substantial efforts, Yu Liang also has the hope of leading the management and core staff to break through the clouds and return to the path of development, providing a positive example for the industry's transformation.