Senior executives arrested! China Resources Land is in trouble again
2024-07-26
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thousandChina Resources Land, a central enterprise with a market value of 100 million yuan, faces considerable challenges in adhering to the "long-termism" and maintaining high-quality development.。China Real Estate News reporter Xu Qian丨Beijing reportChina Resources Land was pushed into the spotlight due to a senior executive scandal.According to market news on July 24, Chen Gang, general manager of China Resources Land's Midwest Region, has been investigated by the police for allegedly violently assaulting a female subordinate. According to the female subordinate, Chen Gang violently assaulted her last week and then called the police.The incident quickly became a hot topic. That afternoon, China Resources Land responded: "The company attaches great importance to this matter and has immediately contacted the police to understand the situation. Chen Gang has been dismissed for allegedly beating his subordinates. The company will not tolerate any violation of discipline or law by any employee and will deal with it seriously in accordance with the rules and regulations."Careful observers can find that in the announcement of China Resources Land, the “suspected violent assault” was weakened to “suspected assault”. It is worth mentioning that in recent times, the senior management team of China Resources Land has been repeatedly exposed to scandals, which has caused the public to question its management ability and brought a huge impact on the brand image of China Resources Land.On June 24, Tang Yong, former chairman of the board and CEO of China Resources Land, was convicted of bribery by the Mianyang Intermediate People's Court of Sichuan Province and sentenced to 15 years in prison. The first-instance judgment determined that Tang Yong accepted bribes of 73.67 million yuan. Also in June, Fan Tianning, marketing director of China Resources Land's East China region, was under investigation for suspected serious violations of duty. All of these indicate the grim situation of the internal anti-corruption struggle of China Resources Land.China Resources Land's official website claims that its corporate values are "honesty, performance-oriented, people-oriented, and win-win cooperation", including "caring for employees", "respecting laws and regulations", and "unity of knowledge and action". However, judging from the scandals of senior executives, there seems to be a big gap between reality and vision.Regarding the above situation and internal management work, the China Real Estate News reporter called the brand manager of China Resources Land for an interview many times, but no one answered the call.━━━━
The last time Chen Gang appeared in public was on July 13 this year, when he attended the opening ceremony of China Resources Land Guiyang MixC as the general manager of China Resources Land Central and Western Region.Public information shows that Chen Gang joined China Resources Land in 1997 and has held important positions in many of China Resources Land's key performance areas, including general manager of Changchun City in the Northeast Region, general manager of Shenyang Region, general manager of Northeast Region, general manager of East China Region, and vice president of China Resources Land. Every step of his promotion seems to herald a double growth in ability and power.Prior to this incident, Chen Gang had been taken away for investigation in connection with the Shanghai "bid rigging" incident.In April 2020, China Resources Land, China Overseas Land & Investment, and Vanke jointly participated in a "bid rigging" for a plot of land in North Bund, Hongkou District, Shanghai. After the incident, Chen Gang, then vice president of China Resources Land and general manager of East China Region, was taken away by Shanghai police for investigation. Since then, the three companies have not been able to participate in Shanghai land bidding and auction for three years. Although Chen Gang resigned as general manager of East China Region, he retained his position as vice president of China Resources Land Group.Why can Chen Gang continue to stay in China Resources Land? His work ability may be one aspect. At that time, the East China region was one of the three core business areas of China Resources Land. In 2019, the annual contract value of the region was 72.927 billion yuan, accounting for 30.1% of the total contract value of China Resources Land. According to media reports, Li Xin, then president of China Resources Land and chairman of the East China region, has always admired Chen Gang. Both of them have worked in the Northeast region and then moved to the East China region.In February 2021, the regional heads of China Resources Land were collectively replaced, and Chen Gang was once again entrusted with an important task and became the general manager of the West China region. China Resources Land explained this change of head as "a regular rotation of personnel based on the company's strategy and business development needs."Chen Gang actually took over a weaker region. China Resources Land's contract sales in 2020 were 285.035 billion yuan, of which the contribution of the West China region was 27.532 billion yuan, ranking fourth among the six regions.As soon as he took office, Chen Gang shouted a slogan at the 2021 annual work conference: 2021 is the first year of the "14th Five-Year Plan" of the West China Region, and the overall performance target of the region will be sprinted to 40 billion yuan. This year, China Resources Land's West China Region achieved sales of 36.88 billion yuan, a year-on-year increase of 34%; in 2022, the sales of the West China Region were 31.69 billion yuan, a decline.At the beginning of 2024, China Resources Land made another major organizational restructuring, reorganizing the original 7 regions into 5 regions. Among them, Wuhan Company and Changsha Company of the former Central China Region were transferred to the former West China Region and renamed the Central and Western Region, thus forming a layout of five regions: East China, South China, Shenzhen, North China, and Central and Western China. Chen Gang was promoted from General Manager of West China Region to General Manager of Central and Western Region, responsible for the management of city companies such as Chengdu, Chongqing, Xi'an, Wuhan, and Changsha, and his jurisdiction and power were expanded.After the merger, in 2023, China Resources Land's sales in the Central and Western regions will reach 63.94 billion yuan, accounting for 20.8% of the contract value in all regions, ranking third after the East China and North China regions; the settlement turnover of the Central and Western regions in 2023 will be 56.642 billion yuan, accounting for 26.7%, ranking first among all regions. This shows Chen Gang's status and influence in China Resources Land.If it weren't for this incident, Chen Gang would still be the "provincial governor" of the Central and Western regions; and after he was taken away, the Central and Western regions will be managed by Xie Ji, the executive director of China Resources Land.━━━━
Pressure on China Resources LandFrom frequent high-level corruption to ongoing rights protection of real estate projects across the country, China Resources Land, once a state-owned real estate giant, has now been frequently caught up in turmoil.A month ago, according to the first-instance judgment of the Intermediate People's Court of Mianyang City, Sichuan Province, Tang Yong, former Party Secretary, Chairman of the Board and CEO of China Resources Land, was sentenced to 15 years in prison for the crime of accepting bribes. The amount involved in the case reached 73.67 million yuan.Tang Yong is also a "veteran" of China Resources Land. He joined China Resources Group after graduating from Tongji University in 1993. He served as director of China Resources Property Management Co., Ltd., executive director, senior vice president, general manager of Chengdu Region, and chairman of the board of directors of China Resources Land. He has served in China Resources for more than 29 years. He once led China Resources Land to expand its scale. During his tenure, China Resources Land's sales exceeded 200 billion yuan for the first time in 2018, and its operating income exceeded 100 billion yuan. But now, his career has come to an end.Over the years, many senior executives of the China Resources Group have been investigated, such as Ren Haichuan (then Executive Deputy Director of the Financial Division of China Resources Group and Chairman of China Resources Capital), Huang Tao (formerly Deputy General Manager of China Resources Land Beijing Company, North China Region), Li Fangpeng (formerly Deputy General Manager of China Resources Power South China Branch), Wu Ding (formerly CEO of China Resources Financial), Song Lin (formerly Secretary of the Party Committee and Chairman of China Resources Group), and Wang Yujun (formerly Executive Director and President of China Resources Power)."The repeated exposure of violations of laws and disciplines by senior executives of the China Resources Group is related to many factors, including but not limited to personal moral risks, deficiencies in the company's internal regulatory mechanisms, and external environmental pressures. It is necessary for the company to strengthen internal management, improve employees' professional ethics and legal awareness, and at the same time establish a more complete supervision and incentive mechanism." said Bai Wenxi, chief economist of IPG China."The downfall of these executives also reflects the new trend of high-quality development in the real estate industry. The fight against corruption, as an important part of internal management, is of great significance to promoting the healthy development of real estate companies," said an industry insider.China Resources Land is known as one of the developers with the strongest ability to make money, but it has also encountered pressure in the continued downturn of the property market, such as falling house prices, sluggish sales, and pressure on gross profit margins. In the first half of this year, China Resources Land achieved a cumulative contract sales amount of 124.7 billion yuan and a contract sales area of 5.211 million square meters, down 26.7% and 25.7% year-on-year respectively.As sales decline, China Resources Land's projects across the country have frequently been hit by quality problems and rights protection incidents. China Resources Land, a central real estate enterprise with a market value of hundreds of billions of yuan, faces considerable challenges in adhering to "long-termism" and maintaining high-quality development.On-duty editor: Su ZhiyongEditor-in-charge: Ma Lin, Wen Hongmei
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