Whether the "Titanic" of real estate will really hit an "iceberg" may be too early to conclude. However, in the view of Tian Ming, Chairman of the Board of Landsea Green Properties Co., Ltd., the trend of high-speed growth in China's economy is no more, and the real estate market is also bidding farewell to its "golden decade."
"This round will be a turning point," Tian Ming stated clearly, but stressed that the so-called turning point refers to transaction area.
As the market declines, Landsea has its own considerations compared with other companies. Tian Ming also said frankly that Landsea at present does not focus on scale growth, but emphasizes its own safety.
"The situation in 2014 is not good. What I focus on is not how much the transaction volume is, but whether the cash flow during the whole winter period is good, whether we can grasp development opportunities, whether we can bottom-fish, and whether the business model and profit model can undergo some transformation and adjustment," Tian Ming said.
Behind Landsea's transformation from a specialized company with a single business to a diversified group company, and from a heavy-asset industry toward a light-asset industry, may be precisely based on the above considerations.
Tian Ming also emphasized that doing a good job in winter defense, bottom-fishing when capable, and then making some light-asset transformation in the business, with more small-share project management, more agency construction, and technical services, are Landsea's future development directions.
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