Chinese Enterprises "No Property Is Not Rich"?

Manufacturing enterprises enter the real estate industry and think that they can achieve "both hands and hands must be hard". In fact, it may be a way to kill the goose that lays eggs. The main industry is hard to enlarge the sideline industry. Only short-term profits can be ignored in the long run, so that the enterprises can make small businesses without future.

We need world-famous brand enterprises and leading enterprises, instead of buying only the manufacturing enterprises that build houses.

Hong Kong famous clothing company released the first half of this year.

The semi annual report shows that there are 6 subsidiary companies under the red bean stock company, and Wuxi red bean Clothing Co., Ltd. achieves a net profit of 135 thousand and 400; Wuxi Yi Di Fei casual wear Co., Ltd. achieves net profit of -295.45 million; Wuxi red bean cotton spinning Co., Ltd. achieves net profit of 2 million 421 thousand; Wuxi post villa sewage treatment Co., Ltd. achieves net profit of -31.43 million; Wuxi red bean International Trade Co., Ltd. achieves net profit of -20.23 million, and Wuxi red bean Real Estate Co., Ltd. achieves net profit 36 million 400 thousand.

The 3 clothing companies of the red bean group realized net profit of 134 thousand, -295.45 million and 2 million 421 thousand respectively, achieving a total net profit of -49.95 million, showing a loss.

Hong Kong stock holding company has a net profit of 36 million 400 thousand.

In addition, Hong Kong shares realized 1 billion 362 million of its operating income in the first half of the year, and 941 million of the total revenue of red bean industry, accounting for 69% of the total revenue.

In addition to the red bean industry, the clothing enterprises of the red bean group only brought 421 million business income.

The board of Directors believes that the company in the first half of this year

In fact, domestic manufacturing enterprises and Hong Kong shares such "main industry is not profitable, sideline real estate to become the company's main profit" is not unusual.

For example, Hisense appliance is already the largest real estate developer in Qingdao. The Hisense Plaza has become a landmark building in Qingdao. YOUNGOR has entered the real estate industry and financial investment industry in the past two years, and now it has become the "three carriages" and driving mode of clothing, real estate and investment.

Manufacturing and sideline industry

Risk-free profiteering

Such as Hong Kong shares of these manufacturing enterprises to enter the real estate industry, is naturally caused by profits.

After the listing of many manufacturing enterprises, they are financing in the capital market and become "heavy handed" enterprises.

Financing has been a large amount of cash flow, the main industry can not use so much money, in this "national property" era, the natural thought of marching into real estate to find income.

These companies are generally the leading enterprises in the locals. They are also the "top guests" of the local government's fiscal revenue, or the important force to solve the local employment. Thus, the local government takes care of them in every aspect.

Some manufacturing enterprises are state-owned enterprises, and even the local SASAC is an important shareholder.

These enterprises, with the acquiescence of local governments, are seeking the benefits of real estate by holding the idea of "fat water does not flow outside their fields".

In addition to listing and financing, the main businesses of these enterprises can provide a large amount of stable cash flow.

The whereabouts of these cash flows is also a headache for enterprises.

It is too low to change these cash into short-term bank deposits. If we continue to invest in the main business, the main business competition is fierce and the profit margin is too low.

In contrast, real estate is a highly profitable and risky investment. At the same time, it satisfies the tradition of "buying land to buy land" for five thousand years and becomes the favorite of manufacturing enterprises.

Yang Xun, chairman of the domestic casual wear brand JEANSWEST, once told the media that making money for clothing is not fast enough to make real estate, nor does it have much money to earn real estate, but the clothing industry can bring a steady cash flow.

Now, JEANSWEST's parent company, Asahi group, is focusing on clothing and housing.

"The benefits from real estate are several times that of our main business," he said.

No future?

In this way, will the future of Chinese manufacturing enterprises be a brand enterprise or a leading enterprise, or will it gradually become a small Real Estate Company?

Some manufacturing enterprises believe that "two hands can grasp both hands can be hard", one hand is their main business, one is the real estate with high returns and quick results.

However, many enterprises are gradually unbalanced in their operations, and the main industry has high investment and low profits, so that enterprises that try to benefit from real estate pay more and more attention to the real estate business, and do not want to spend more time and energy in manufacturing main industries and increase investment.

Unwilling to invest in R & D, and unwilling to expand the scale of the plant, even building factories will become an excuse for themselves. If this continues, the main business will gradually shrink and the sideline industry will become stronger and stronger, and the "red bean phenomenon" described above will appear.

A senior garment industry believes that people do not pay attention to brand building, do not want to spend more money to upgrade the main business, just for short-term gains and immediate interests, blindly follow the wind into real estate, real estate nuggets, this kind of disregard of long-term interests of the practice, is like "killing the goose that lays eggs", can only let most garment enterprises do OEM, foreign orders, can not appear as POLO, LV and other popular global brands.

Moreover, investing in real estate is just a way to get profits before it is not always a "money making machine".

Hongkong's two financial crisis, without exception, first spread to real estate, whether Real Estate Company or investors are badly hurt and serious losses.

In addition, it also involves the supervision of listed companies.

The funds that have been listed by manufacturing enterprises, such as additional financing and so on, do not invest in the main business as they describe themselves. Rather, they invest in real estate or in the financial industry. They are also angry when they are making money and making money under the umbrella of the local government.

Therefore, we need to increase the supervision of listed companies, so that financing can really be used, and it may also reduce or weaken the "red bean phenomenon".

In the second half of the year, we should focus on the development of red bean men's clothing chain Monopoly channel construction, grasp the key provinces' regional investment conference, expand the group buying professional clothing business quickly, improve the winning rate of the professional clothing, strive to improve the profitability of the company, and promote the real estate business prudently and cautiously.