According to Zebra Finance, at least 11 anti-corruption cases against real estate companies were made public in 2019. Sunac, Wanda, and Fosun were involved in hundreds of millions of dollars. The marketing, procurement, and land acquisition lines of regional companies are the hardest hit areas for corruption.
Following the anti-corruption campaign by Internet companies, the strong anti-corruption campaign by real estate companies continued throughout 2019.
This year, real estate companies no longer cover up internal corruption, but put "family scandal" on the table.
Preliminary statistics from Zebra Consumption show that at least 11 anti-corruption cases against real estate companies were made public last year, involving many star real estate companies and listed real estate companies.
Judging from the cases that have been disclosed and reported by the media, regional companies are the hardest hit areas for corruption among real estate companies, and marketing, procurement, and investment development are key areas for corruption.
With the trend from individual corruption to collective fraud, real estate companies deal with the matter internally, and now report the case to the police immediately upon discovery. Last year, Sunac China, Wanda Group and Midea Real Estate transferred many senior executives involved in the case to the judicial authorities.
3 real estate companies were involved in the case worth hundreds of millions
In 2019, Sunac China (01918.HK) spent 100 billion to acquire land in the open market and nearly 40 billion yuan to implement mergers and acquisitions in the industry, becoming a veritable "harvest king." Throughout the year, the company achieved sales of 556.2 billion yuan, ranking fourth in the industry, with a growth rate of 21%, ranking first among the top four. While
is expanding at a rapid pace, internal corruption is difficult to control. According to the 21st Century Business Herald, in June 2019, corruption incidents occurred in the Wuxi and Shanghai companies of Sunac China. The two marketers involved in the case may have made profits by reselling internal housing listings and special-priced housing. They were discovered by the company and reported to the police. The value involved exceeds 100 million yuan.
Wanda Group also shows no mercy towards internal corruption. In August 2019, the company transferred four of its executives to justice. According to reports, these four executives solicited bribes from merchants, suppliers and employees, involving nearly 100 million yuan.
For this reason, Wang Jianlin, the former richest man, gnashed his teeth at the Gengjie Conference held and denounced internal corruption.
This is not the first time Wanda Group has brought a corruption case to the table. Wanda’s official website disclosed that as early as 2017, it investigated and dealt with 263 violations and terminated 129 people’s labor relations. In 2018, two executives were transferred to justice.
Sunac China and Wanda Group have zero tolerance for corruption. Guo Guangchang of Fosun Group also has no tolerance for "sand" in his eyes.
According to media reports, the vice president of Hainan Atlantis Business and Tourism Development Co., Ltd., a subsidiary of Fosun, and two of his subordinates sold some apartments and villas at increased prices, making a profit of nearly 200 million yuan. The above-mentioned people's methods of "making money" are not clever. They sell the houses they control by increasing the price. The amount involved should be the largest among the public anti-corruption cases of real estate companies so far.
Zebra consumption review found that this project is owned by Fosun Tourism and Culture Group, and the hotel royal suite on the project is as high as 100,000 yuan a night.
Regional companies have become the hardest hit areas
Zebra consumption review found that regional companies under real estate companies are the hardest hit areas for corruption.
In December 2019, Su Bo, chairman and president of Xinhualian (000620.SZ), assisted the police in the investigation due to personal issues. In addition, corruption in the remaining 10 real estate companies all occurred in regional companies.
Public reports show that corruption not only occurs in star real estate companies such as Wanda Group, Poly Real Estate, Fosun Group , Sunac China , but also in the top 20 Jinke Holdings (000656.SZ) and the top 30 Agile Group, as well as rising stars such as Midea Real Estate .
Marketing, procurement, land acquisition and other lines of making and spending money have become the hardest hit areas. The marketing department puts their thoughts on the real estate, the procurement department makes decisions from the supply side, and the investment and development department simply takes action before and after acquiring the land.
In May 2019, Landsea Real Estate (00106.HK) announced that employee Deng Min, while serving as the executive vice president of the Chengdu company, had a "double-pronged approach" in project acquisition and marketing. After being discovered by the company, he reported it to the judicial authorities. Report the crime.
The publicly reported corruption case of Joy City (000031.SZ) also occurred in Chengdu. In December 2019, Lan Gang, deputy general manager of the Southwest Region of Joy City and general manager of Jinyun Project, was investigated by the Aba Prefecture Supervisory Committee.
Before the Lan Gang incident, Xiong Qizhong, the former general manager of Joy City Chengdu Company, was handed over to the judiciary for allegedly selling properties on sale at reduced prices and embezzling public property. According to media disclosures, two people born in the 1980s, Lan Gang and Xiong Qizhong, have a superior-subordinate relationship when they work in a Chengdu company.
The corruption case at Agile Group (03383.HK) was discovered many years after the incident.
According to Jiemian News, Jian Yuping, the Hainan regional president of Agile Group, while serving as the head of the Hainan regional marketing department from 2010 to 2013, repeatedly accepted huge bribes from external personnel and illegally identified high-quality housing for external personnel to resell for profit; the group's Guangzhou regional vice president Cai Xiaopeng took advantage of his position to contract the company's business and accepted gifts from suppliers without reporting them.
In January 2019, the above-mentioned corruption was verified by Agile Group. The company tolerated the two regional executives and only dismissed them.
Among regional companies, the most ugly ones are the senior executives of Wanda’s commercial management group. Media reports show that Wang Yanbin, the former assistant to the president of the Commercial Management Group and general manager of the South China Operations Center, Milina, the former vice president of investment operations of Wuhan region, Fu Bin, the former general manager of Huanggang Wanda Plaza, and Zhang Xinliang, the former vice president of investment operations of Xiaogan Wanda Plaza , soliciting bribes from merchants, suppliers and employees, and also involving regional management and local single stores, rigging bids, and taking shares in multiple rental merchants.
Group fraud cases occur frequently
Real estate companies are "cramping" on internal corruption. A very important reason is that internal corruption has shown a trend from individual corruption to collective fraud.
Midea Real Estate (03990.HK) was listed in 2018 and achieved sales of approximately 101.23 billion yuan in 2019. After successfully attacking billion-dollar real estate companies, internal corruption has become even more shocking.
Following the announcement of internal investigations into corruption in February and April 2019, in October, Midea Real Estate investigated another corruption case. China Business News reported that the former sales person in charge and the project marketing manager of a certain project of the company's regional company colluded with six people, including a real estate consultant, to manipulate the sale of houses at a higher price and make a profit of more than one million yuan.
From the project leader to the real estate consultant, it is not just Midea Real Estate that has formed a nest case. The same case also occurred in Jinke Co., Ltd.
China Business News reported that in December last year, Jinke Co., Ltd. was exposed to multiple internal corruption incidents involving marketing, administration, bidding, property and other business areas. As many as 13 people were put on file for investigation by the judicial authorities.
China Judgment Document Network shows that in 2018, the marketing director of the Times Center project of Sichuan Neijiang Jinke Company, the on-site sales supervisor, the real estate consultant, and the sales clerk all collapsed. They cooperated with each other to make nearly one million profits by purchasing houses at low prices and then reselling them at high prices. Yuan.
Although the operation methods of the above-mentioned cases are simple, they have shown the characteristics of group corruption in a certain area or a certain project. Song Yanqing, president of
Rand Consulting, once stated that there are 116 rent-seeking links for real estate companies. For real estate companies that are expanding rapidly across the country, once the controllable radius becomes smaller and the management mechanism is not upgraded in time, the loopholes will not be plugged for a while.
PricewaterhouseCoopers disclosed in 2018 the "Survey on the Current Situation of the China Enterprise Anti-Fraud Alliance" report, which showed that insider fraud cases in the real estate industry accounted for as high as 73%.
These losses caused by corruption are difficult to recover. PricewaterhouseCoopers reported that the total amount recovered through various disposal methods is only 18% of the total direct losses. Indirect losses such as loss of goodwill and subsequent operational interruptions, the actual figures are higher than The book numbers are much larger.
Source of this article: Zebra Finance.
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