Sunco Rongchuang in Sun Hongbin

Sunac has made frequent adjustments since the beginning of 2005.

At the beginning of the year, according to the regional division of southwest, east and north China, regional groups were established. However, in the first half of 2005, only 3.84 billion yuan was returned from sales, which enabled Sunac to quickly adjust its development strategy and improve its profit rate in the second half of the year.

At this time, Wang Hao is still solving the problem of Shunchi's change and growth.

If Sun Hongbin completely pinned his hope of saving Sunco on Wang Hao at this time, he didn't know that Wang Hao's solution in Sunco was completely different from his own prescription for Sunac. How did he feel at that time?

In 2006, when Sun Hongbin announced that he would re-host Shunchi, he affirmed Wang Hao's work in the past year.

Later, he announced that he would cancel the three regional groups of Shunchi and switch to the direct management mode of the headquarters.

In Sunac, Sun Hongbin completed this strategic adjustment as early as 2005.

In addition, concepts such as cost and profit rate, which were emphasized in Sunac as early as 2005, were "copied" after Sun Hongbin returned to Sunco.

However, these measures that make Sunac successfully "brake" have little effect on Sunco.

Looking back on the development of Sunco and Sunac, it is more like a thrilling operation "experiment" of real estate enterprises in Sun Hongbin.

In the "experiment" that challenges the development speed and cash flow speed of domestic real estate industry, Sun Hongbin takes Sunco as the main object. After successfully declaring war on Vanke and raiding the city for many times, he thought that this model was close to success, so he pulled Sunac, which had just been established, into this fast-running runway.

When Sunco and Sunac were found out of control like wild horses, Sunac was "favored" by Sun Hongbin and became the experimental site of its rescue strategy.

After giving Sunac a few doses of "fierce medicine", Sunac's operation began to gradually get on the right track. Therefore, these "fierce drugs" are regarded as symptomatic measures that have been successfully tested and applied to Shunchi.

The fate that Sunco was finally sold does not mean that Sun Hongbin's "experiment" failed; But Sunac's survival does not prove Sun Hongbin's success.

In mid-2006, Sun Hongbin once gave a speech in Sunac, and some of it was sorted out and published in Sunac's internal magazine.

In this speech, Sun Hongbin was somewhat defensive: "People had a good life and could not have taken risks, but they suffered hardships and failures because they chose their dreams.

Although China people stress success or failure, they struggle for their dreams and ideals. Even if they fail, they deserve everyone's respect, because the world is driven by these dreamers. "But Sun Hongbin, which has experienced two ups and downs, is also reflecting on itself." We have been growing and maturing in the process of transformation.

Maturity means being able to balance without going to extremes. ""At the same time, maturity also means the balance between development risk and development speed, and the control of risk in the development process ".

Sun Hongbin's * * * and "paranoia" are still deeply branded.

In Sunac's corporate culture, "mission-like * * *" is put forward as the first sentence of the company's core values, and "firm belief in core values, paranoia and implementation of core values, and zero tolerance for people and things that violate core values" is also emphasized in the company culture.

However, besides, the trace of Sun Hongbin's puffed-up personality left by Sunac is nowhere to be found. Only in the position of chairman and president of the company, Sun Hongbin's name still looms large.

Sun Hongbin named Sunco with the intention of being quick and smooth. Sunco made smooth and rapid progress in the first five years of its growth.

But three years before his death, Shunchi began its great leap forward expansion, and its business model was accurately calculated when it was on paper, and the conclusion was that it could be copied quickly.

In reality, the standardization of China's real estate industry is very low. In a non-standard and unpredictable industry, trying to copy quickly and accurately can only lead to death and suicide.

The topic of real estate in 2008 is still hot, but it has little to do with Sun Hongbin.

No matter how he turned the real estate industry upside down, he now has to stay in the corner forgotten by the media.

Throughout the first half of 2008, the former media darling was really noticed once, or because Shan Weibao of Jin Lu Real Estate jumped out to sue him.

Of course, this is not the cruelty of the media, but the cruelty of the market.

Unlike Sun Hongbin, Sunco's popularity has not diminished, but certainly unlike 2004, Sunco is no longer the object of being reported, but is cited. As the code name of the failure case of "excessive expansion leads to the break of capital chain", "Next Shunchi" can keep pace with the key words such as "inflection point theory" and "hundred-day drama change theory" in the real estate market in 2008.

In fact, the historical penetration of the word "Shunchi" will be stronger.

Because the real estate reform is the largest, fastest-growing and most interesting market in the past 30 years of reform and opening up, the legendary stories of real estate heroes wave after wave.

However, among all the real estate heroes, the speed is extremely impactful and the mode is extremely peak. Only Sun Hongbin and his Shunchi have a historic ending.

Sun Hongbin graduated from the Department of Water Conservancy in Tsinghua University, with a high IQ and great strategy.

At the age of 25, he became a major general of Lenovo, responsible for the construction of the national IT distribution network. He is older than Yang and has great influence.

However, in 1990, he was convicted and imprisoned for nearly four years because of the conflict with Liu Chuanzhi due to "economic problems".

Brilliant Sun Hongbin has both mind and vision.

1994 After he was released from prison in March, he invited Liu Chuanzhi to dinner to apologize, but he did not return to his old job, but prepared to enter real estate.

With the support of Liu, Sun Hongbin established Sunco Real Estate Sales Agency in Tianjin in April, and obtained the exclusive sales agency right of "Xianda Community" in August.

Half a year later, at the beginning of 1995, with the support of Liu Chuanzhi and Zhou Xiaoning, chairman of Zhongke Group, Tianjin Zhongke Lenovo Real Estate Development Co., Ltd. was established, which successfully entered the real estate development business and developed the first project "Champs Elysé es" in July.

In seven months, this speed is more than twice the average cycle 18 months from land acquisition to development in the real estate industry.

Influenced by Moore's Law, this IT entrepreneur who spent four years in prison demonstrated his unique skill: speed from the beginning.

Only at this time, Sun Hongbin is just an unknown newcomer in the real estate market, and no one pays attention to him.

Tianjin colleagues felt the ferocity of this move for the first time.

The real estate cycle is mainly controlled by land acquisition and fund raising. In order to get through this joint, Sun Hongbin 1996 gave up the position of chairman and invited Zhang Guizong (former director of the office of the Meteorological Bureau) with a wide network of contacts.

Shunchi sure enough, the project has continued since then, and its strength has quietly increased.

Everyone knows the next story.

1998, after seeing the national policy of stopping welfare housing allocation, Sun Hongbin began to make efforts. The Du Ming project with an area of140,000 square meters in that year shocked Guinness.

In August 2000, it won the Meijiang plot that Vanke and TEDA dared not touch, and successfully developed the blue water project. Soon won the 1.7 million square meter "super market" Sun City, and basically established the status of Tianjin's boss.

Sun Hongbin

From 1998 to 2002, Sunco Tianjin has developed nearly 30 projects.

Although Sun Hongbin didn't make a lot of profits, it brought a great shock to the real estate model.

The first big shock brought by Sun Hongbin is speed.

He completely broke the convention that the average development cycle of real estate was 18 months, and shortened it to 7 months in one fell swoop.

Closely related to speed is the mode.

According to today's research, Shunchi's speed stems from Sun Hongbin's eagerness to be king strategically and his sophisticated IT mode tactically.

Sun Hongbin's real estate development model was later called "cash-cash" model or "real estate Dell" model. The core of this model is to start the project with extremely low self-owned funds and quickly transform it into a land development process, then support the later construction and urban construction with sales returns, and then start new projects with gross profit as new self-owned funds, and so on.

According to his model, this model is not only feasible, but also powerful as long as every time point is handled properly and every step of strategy is implemented in place.

Facts have also proved this point.

First of all, with this model, Sun Hongbin changed from an ordinary agent in Tianjin to a developer in Zhenjinmen in four years, and became the boss of Tianjin real estate developers in six years.

From 1998 to 2002, Sun Hongbin has developed more than 30 projects in four years.

Secondly, in 2002, the Ministry of Land and Resources issued the document 1 1 "Provisions on Transferring the Right to Use State-owned Land by Bidding, Auction and Listing", which stopped the land agreement transfer method that had been used for many years. After seeing that this document cleared the major obstacles for the national expansion of developers, Sun Hongbin quickly copied this model to the whole country.

In 2002, when we left Tianjin, the scale of Shunchi was only 654.38+0 billion. By 2004, Sunco had reached10 billion, which increased by 654.38+00 times in less than three years, almost subverting Vanke and taking the top spot in the country.

In terms of wisdom and courage, Sun Hongbin can be regarded as a super-class talent in the real estate industry in China. It's a pity that this super-class talent made a third-rate or even dirty mistake, that is, he didn't have a sense of risk, not to mention Huawei's sense of crisis in preparing for the winter.

There are four risks in the real estate industry, one is policy risk, the other is market risk, the third is implementation risk and the fourth is system risk.

From the policy point of view, due to the sensitivity of the market, China's real estate policies emerge one after another. The adjustment of development direction (such as 90/70), land transfer mode, pre-sale permit time, land payment time and proportion, loan interest rate and other policies will directly affect the cash flow of developers.

Market risk and execution risk can also kill Shunchi, especially the systemic risks such as stock market crash, house price turning down, credit crunch and consumer wait and see.

In Sun Hongbin's model, he divided the attack routes into M 1, M2, M3 and M4 according to the size of cities and projects. The attack on the eastern front is unfavorable, the western front is in urgent need of help, the southern line is invalid, and the northern line is the savior, but he never considers how to fight if the whole line collapses.

Ignoring or belittling these risks is the biggest mistake made by Sun Hongbin in the process of running smoothly, just as he designed an ultra-fast chariot with extraordinary wisdom, but forgot that there were not only pits and rivers, but also cliffs and deep valleys on the way forward, and the result was hit hard.

Sun Hongbin has reason to accuse 12 of the unilateral rise in real estate, but the reason for opposing it is simple. Most of the real estate heroes are fellow travelers in Sun Hongbin, starting from the harmony and tension, Yang Guoqiang in Country Garden, Chen Brothers in Chuangzhan and Agile, Wu Yajun in Longhu, Xu Jiayin in Evergrande and so on. , basically started around 1994.

The real difference between Sun Hongbin and them lies not in Sun Hongbin's recklessness, but in his different life ideals.

General developers want to create wealth, and Sun Hongbin wants to be king.

In his early years, when Sun Hongbin followed Liu Chuanzhi as an association and was in charge of distribution channels, he was already arrogant and tried to make Gao Zhen take charge and start a new stove. But Liu Chuanzhi found it timely and handled it decisively. Instead of being king, Sun Hongbin was convicted and imprisoned for four years.

After he was released from prison, Sun Hongbin not only urgently needed to prove himself with Shunchi's success to make up for lost time, but also wanted to prove to the world that Sun Hongbin was king.

In 2003, Sun Hongbin challenged Wang Shi to become a real estate elder brother in China at the Chongqing meeting of Midtown Real Estate Network.

Sun Hongbin held a 17-hour continuous meeting for Sunco executives at Mangshan Convention Center in Changping, Beijing, and gave a speech entitled "A swan's ambition, an ant's action", which was actually a declaration of the king, while the seemingly outspoken plan of 10 billion yuan was actually an enthronement ceremony set for the occasion.

In order to be king, Sun Hongbin made a major compromise on profits in two aspects, one is to take land at all costs, and the other is to cooperate in development.

In terms of land acquisition, after Mangshan Conference, Shunchi acquired nearly 10 million square meters of land a year, and the only land needed was as high as 654.38+0 billion yuan, especially the sensation of "the first auction of Beijing century", which showed its eagerness and arrogance.

The direct consequence of high-priced land acquisition is that the housing price of Shunchi is often significantly higher than other surrounding projects, and the management cost accounts for 8% ~ 9% of the total cost, which is much higher than the industry average of 2% ~ 3%.

What is even more incredible is that in the real estate industry, which has always been regarded as profiteering, the net profit rate of Shunchi in 2003 and 2004 is said to be only 3-4%, while Vanke has never been lower than 15%, while R&F and China Shipping have both exceeded 30%.

But Sun Hongbin just doesn't care about profits. As long as he can be the boss and earn more and less, he doesn't care.

The consequences of cooperative development are equally serious.

Because this will not only divert profits, but also cause management confusion. More importantly, it is difficult to reach a strategic understanding, and even the perfect plan is often implemented in the wrong way.

Of course, Sun Hongbin is not unaware of the side effects of cooperation. In order to offset this, he boldly used young people, because compared with veterans, young people are braver and more knowledgeable, and they don't discount orders.

In Shunchi's team, there are very few people over 40 years old, and Wang Hao, the later chairman, is only 34 years old, which is the first in the national real estate industry.

Sun Hongbin's recruiting strategy is also obvious, copying Shunchi mode and system as quickly as possible, not products.

This is not fatal. What is fatal is that his pursuit of speed is getting higher and higher, so that there are not enough veterans to bring new recruits behind him. As a result, Shunchi soon became a mob vanity fair, and Sun Hongbin's greatness turned into bragging and lying in their hands.

Sun Hongbin's fate is quite dramatic. He named the company Shunchi, and he also has many characteristics of being king, but his strategy of being king runs counter to China's most famous formula of being king.

Sun Hongbin is now making a comeback with Sunac as the platform, but if we don't change the skill of overlord, I'm afraid we will still be experts.

Sun Hongbin once said, "People had a good life and could have avoided taking risks, but because they chose their dreams, they suffered hardships and failures.

Although China people pay attention to winning or losing, fighting for their dreams and ideals, even if they are unsuccessful, deserves everyone's respect.

Because the world is driven by people with dreams. "

Twenty years ago, Sun Hongbin's dream was to be a big national company. This dream once pushed him forward bravely, not afraid of risks, but not reckless.

Sun Hongbin is more sensitive to the market than ordinary people-Liu Chuanzhi commented that he is one of the few people who can "assess the situation and see the end at a glance", but this sensitivity has already missed the beat of the market in advance.

1994, Sun Hongbin founded sunco and entered the real estate industry as a real estate agent.

In August of the same year, Sun Hongbin borrowed 500,000 yuan from Liu Chuanzhi for faster development than usual.

Subsequently, Shunchi began to expand rapidly in Tianjin, becoming the absolute "big brother" in the local area.

At that time, it took Sunco nearly 65,438+00 years to occupy 65,438+00% of the Tianjin market.

Everything has undergone historic changes because of "clap, clap and hang".

In June 2002, Sunco successfully won a plot in Tanggu, Tianjin, and the comprehensive cost was even more affordable than the agreed price.

In just three months, the "Rhine Spring" developed on this land was listed.

This allows Sun Hongbin to see the market opportunity of combining high turnover with bidding, auction and hanging.

In August, 2003, at an industry conference, Sun Hongbin suddenly changed the subject in his scheduled speech, saying that Shunchi's medium and long-term strategy was to be the first in the country.

He paused and said, "That is to say, we should surpass everyone present, including Wang Shi." Wang Shi, who was sitting under the stage, retorted morosely and "reminded" him of the risks.

In 2003, the sales of Vanke, the real estate boss, was only 6.38 billion yuan. At that time, Wang Shi had begun to predict the turning point of the property market.

Sun Hongbin, on the other hand, declared that he did not believe that the real estate industry in China would produce an enterprise with annual sales of 50 billion yuan in the next five years.

From 2003 to 2004, Sunco successively acquired more than one piece of land 10 from North China, East China and Central China. The speed of action was staggering, especially the generosity of the "sky-high land builders".

Sunco's sales also soared, from 200 1 to 1 billion yuan to1270 million yuan in 2004.

"Sun Hongbin is a paranoid, taking land everywhere." This is many years later, a real estate veteran recalled Sun Hongbin's deepest impression.

At the craziest time, Sun once set a historical record of taking 6,000 mu of land a year.

Five years later, as predicted by Sun Hongbin, an enterprise with annual sales of 50 billion was established in China.

This enterprise is not Shunchi, but Vanke.

As Wang Shi predicted, in 2004, the state began to regulate real estate, which made Shunchi, which planned to go public in Hong Kong in the same year, stillborn.

Until 2007, due to the tight capital chain, Sun Hongbin finally transferred the controlling stake of Sunco to Jin Lu at a low price, and he himself took time off to devote himself to the development of Sunac.

Regarding the disastrous change of Shunchi, Nie Meisheng, honorary president of the Real Estate Chamber of Commerce of the All-China Federation of Industry and Commerce, once said: "Everyone else uses one bottle with one lid or two bottles for turnover, but Sun Hongbin is playing with ten bottles with two lids. Can this be a problem? "

Words, Nie Meisheng reveals regret.

"As long as it lasts for a while, Sun Hongbin will survive like many enterprises that came to the edge of the capital chain in 2008." Longhu real estate, which is now all-powerful in the industry, was once on the verge of life and death. An internal employee of Longhu recalled to the reporter: "In 2008, Longhu almost got no salary. According to internal rumors, the top management was already talking about the acquisition, but later' 4 trillion' * * * plans to bring Longhu back to life and develop rapidly to this day. " Sometimes, hell and heaven are just between one thought.

However, in the life before Shunchi, "luck" did not come.

Talking about Shunchi after many years, Sun Hongbin said calmly that almost every university in China has a case of Shunchi's failure, which is quite absurd.

"Sunco did something wrong, but it's not all bad. Now, others have learned from me in high turnover, bidding, auction and cash flow (management). "

"I feel in my heart that it is really a good thing to be a person and an enterprise, to suffer losses and to have setbacks.

It is the accumulation of experience after losses and setbacks. Sun Hongbin said, "After these ups and downs, my character has not changed. What has changed is my understanding of doing business.

Based on the new understanding, Sun Hongbin, who has made a comeback, attaches great importance to the safety, stability and discipline of the company's operation.

The fast-growing Sunac China now has a book cash of more than 654.38+0 billion yuan, and the debt write-off rate (sales/net debt) is close to 2, which is almost the best level in the industry; In 20 13, Sun Hongbin asked Sunac to pay more attention to cash flow management, and the capital cost of financing should not exceed 13%.

He established an iron discipline for Rong: be cautious in taking land and never blindly compete for the "land king".

On July 12 and 20 10, the Beijing Wanliu plot, which has attracted much attention from the industry, started shooting.

Due to the dispute over the identity of central enterprises, Poly Real Estate, the consortium partner of Sunac China, temporarily withdrew from the competition of Wanliu plot, leaving Sunac alone.

After 200 rounds of "hand-to-hand combat" with Zhonghe Land, Sunac finally lost to its opponent and missed the Wanliu plot.

An hour after the auction ended, Sun Hongbin updated a Weibo and publicly responded to the "lost land": "I said that we like this land, but there has never been a land we are determined to win. If it is suitable, we don't want it. "

In the face of crazy land grab, Sun Hongbin chose patience.

Their so-called land acquisition discipline is to strictly calculate the gross profit margin and internal rate of return of land for specific plots of specific cities. Once the red line is exceeded, Sunac will immediately stop posting signs, no matter how much it likes it. Among them, the gross profit margin red line shall not be less than 30%.

In view of the lesson that Sunco's stalls in the whole country were spread too fast and eventually overturned, Sunac began to adhere to the "regional depth focus" in regional strategy, only laying out five major regions, namely Beijing, Tianjin, Chongqing, Shanghai and Hangzhou, and shortening the management radius. 20 12, the first-tier cities picked up, and the strategy of regional focus made Sunac earn a lot of money.

"For myself, what has not changed is the ideal, * * *, and what has changed is to pay attention to balance and not go to extremes.

But this does not mean that enterprises do not need to take any risks.

Taking risks and controlling risks are a pair of contradictions. "Sun Hongbin said.

20 1212 February 3 1 day, the list of the top 50 real estate enterprises in China in 2012 was released.

The annual sales of Sunac China rose to 35.6 billion yuan, ranking12; 20 1 1, Sunac China ranking18; 20 10 years, its ranking is far from 30.