Liu Mingyu Turn to the next page of the agenda.
"The fourth item on the agenda--Proposal on the National Day Golden Week promotion plan. Please explain to Henglong Group Vice President Chen Wei."
Chen Wei stood up and walked to Projection Screen.
She has been working at Henglong for more than half a year and has transformed from an outsider into a member of the core management team.
Her reporting style is different from Chen Xi - there are not so many data tables, but more judgment on the market and policies.
"Dear directors, let me make a judgment first."
Chen Wei's voice is not loud, but every word is clear.
"The winter of housing Real Estate Industry is coming. It is not a short-term adjustment, but a long-term downturn.
From 2017 to now, there have been more than 200 regulatory policies across the country. Purchase restrictions, loan restrictions, price restrictions, and sales restrictions have all been imposed.
Monetary resettlement in shantytown reform has been tightened, financing channels for real estate companies have been blocked, and the land market has cooled down.
Previously, more than one-third of the people in the industry believed that this was a short-term fluctuation and that it would be over after a while.
But now, a consensus is forming - the days ahead will be difficult."
Meeting Room was quiet for a few seconds.
No one refuted.
Because every word Chen Wei said is a fact that is happening.
"So, I propose that the promotion intensity during the National Day Golden Week this year should be greater than last year."
Chen Wei Switch to the next slide, which is a comparison table of discount plans.
"Last November, the average discount on our main items was 10% off. This year, I recommend a 15% off discount.
Some projects with a sale period of more than 24 months can get a 20% discount or even lower."
Sun Zhengping frowned. "85% off? Will this discount affect profits?"
Chen Wei said, "Mr. Sun, now is not the time to consider profits. Now is the time to consider cash flow.
Although Henglong's asset-liability ratio has dropped below 25%, Real Estate Sector still has a large amount of inventory to digest.
We still have a lot of existing housing inventory in Shan City and Rong City cities.
One more day that these houses sit is one day's financial cost. The earlier they are sold, the earlier the funds are withdrawn.
The profit is less, but the cash flow is abundant, so we have more money for investment."
Zhao Chen leaned back on the chair, picked up the tea cup and took a sip. "I support Chen Wei's plan."
All eyes turned to him.
Zhao Chen put down the tea cup, his voice was not loud, but every word was clear.
"Last year during National Day, we had a discount and the profit was less, but we got back hundreds of millions.
Without that money, Henglong's life at the end of last year would not have been easy.
This year, our situation is much better than last year - the debt ratio is 25%, cash is 6 billion, and Henglong Capital's floating profit exceeds 800 million.
But the logic of the main real estate business has not changed: if you can sell the house, sell it as soon as possible. Don't wait."
He paused and his voice slowed down a bit.
"Now the whole room Real Estate Industry is shouting 'live on'. Henglong is one step ahead of his peers.
This step is not because we are smarter, but because we have seen the direction clearly earlier.
Now that we are ahead, we must take bigger steps. While others are still hesitating whether to lower prices, we have already cleared out our inventory.
When others started to cut prices, we were already full of cash."
Shen Jue nodded.
"I agree. Henglong's current source of profit is no longer its main real estate business.
Less than half a year after its establishment, Henglong Capital has already contributed more profits than the main real estate business for the whole year.
The mission of Real Estate Sector is not to make money, but to realize it. Being able to liquidate assets quickly will be more beneficial to the development of Henglong."
Sun Zhengping also nodded.
"15% off, I agree. But there is one thing - the promotion plan must be transparent, and you cannot make false discounts or raise the price first and then discount.
Henglong's brand cannot be damaged for the sake of destocking."
Chen Wei said, "I understand. The prices of all promotional properties will be announced at the sales office, clearly marked, and there will be no tricks."
Wu Hongyuan closed the folder in front of him. "I agree too."
Liu Mingyu looked around. "Directors, if there are no other questions, let's vote now."
Vote.
Still passed unanimously.
Chen Wei Close the computer and return to your seat.
Zhao Chen glanced at her and nodded slightly.
This woman, from being uneasy when Haoyu Construction was acquired to now being calm and unhurried when proposing bold promotion plans on Board of Directors, has grown faster than anyone else.
After the meeting ended, Chen Wei walked next to Zhao Chen.
"Zhao Zong, if the National Day promotion works well, Real Estate Sector's rebates in the fourth quarter will exceed 1 billion."
Zhao Chen nodded. "Do it. No need to ask for instructions."
Chen Wei turned around and left.
In the afternoon of the day when Board of Directors ended, Chen Wei went directly to the marketing center without returning to his office.
She sat opposite the marketing director and spread out the promotion plan approved by Board of Directors page by page.
15% off, 20% off on some long-term warehouse projects, and 30% off on parking spaces.
All discounts are clearly marked with prices, no tricks are used, no price increases first and then discounts.
After reading the plan, the marketing director was silent for a few seconds, and then said:
"Mr. Chen, with this discount, our competing products in Sichuan and Chongqing will suffer."
Chen Wei Close the folder. "Just to make them feel uncomfortable."
The next day, October 1, is the first day of National Day Golden Week.
All Henglong projects on sale in Chongqing and Chengdu will start promotions simultaneously.
The banner at the sales office was replaced with a unified slogan--
"Henglong Group is the biggest profit giveaway of the year, starting from 15% off on the entire site."
The sand table was crowded with people, and the voices of real estate consultants kept coming and going.
Some of them are old customers who visited last year and have been hesitant to make a purchase. After seeing the news of 15% off, they came the same day.
Some are new customers who come from districts and counties to buy houses during the holidays and are price-sensitive, so the discount of Henglong happens to be applied to their Target Price.
That night, the data from the marketing center was summarized - 47 units were subscribed in a single day in the Shan City area, with a transaction volume of 62 million;
Rong City area subscribed for 38 units in a single day, with a transaction volume of 51 million.
The total number exceeds 110 million.
Chen Wei looked at the data on his phone without much change in his expression.
She sent a message to Zhao Chen: "Zhao Zong, on the first day, the total amount in Sichuan and Chongqing was 113 million."
Zhao Chen replied with one word, "Okay."
On October 2, the promotion news of Henglong spread in the real estate circles in Sichuan and Chongqing.
Competitors are starting to get restless.
A real estate company with a project in the Chongqing West District held an emergency meeting to discuss whether to follow up on the price reduction.
The marketing director said at the meeting:
"Henglong This is a devastating discount, 15% off, nearly 10 points lower than our current price.
If you don't follow us, all your customers will go to them in the past seven days."
The boss was silent for a long time, and finally said, "Follow. But don't be so harsh. I'll give you a 10% discount."
10% off to 15% off.
The results speak for themselves.
The sales office of Henglong is overcrowded, while the sales offices of competing products are empty.
On October 3, another competitor also announced a promotion, with the discount increased from 10% off to 82% off.
But the discount for Henglong is 15% off, and some items with long shelf life are even 20% off.
The 82% discount on competing products is already the limit - where is their cost line, and they will lose money if they drop it any further.
But Henglong doesn't care.
Henglong's asset-liability ratio has dropped below 25%, and with 6 billion in cash in hand, Real Estate Sector's profits are no longer the group's main source.
Low-profit promotions, or even volume sales at low prices, are not a problem for Henglong.
Throughout the National Day Golden Week, the Real Estate market in Sichuan and Chongqing was turned upside down by Henglong.
On October 8, the holiday was over and the data was summarized. A total of 312 units were subscribed in the Shan City area in seven days, with a transaction volume of 420 million;
A total of 268 units have been subscribed in the Rong City area, with a transaction volume of 360 million.
The total transaction volume between the two places was 780 million, and the funds withdrawn were approximately 750 million.
This number is equivalent to Henglong Real Estate Sector's two months' revenue.
As for the data of competing products, the best in the same period was only one-third of Henglong.
Chen Wei sent a complete promotion summary report to Zhao Chen on the first working day after the holiday, with a final sentence:
"Zhao Zong, the effect of the National Day promotion exceeded expectations. 750 million was withdrawn in seven days, and the inventory removal cycle was shortened by 6 months."
Zhao Chen read the report and replied, "Thank you for your hard work. Next, we will speed up the project construction and increase the turnover rate."
Chen Wei replied with one word, "Okay."
She has figured out what Zhao Chen is thinking. Zhao Chen's bottom line requirement for its main real estate business is not to lose money.
For projects taken over from Haoyu Construction, the worst result is reduced profits and a very low probability of loss.
Henglong's strategic focus has been separated from its main real estate business.