Ningbo Manufacturing Enterprise: General Mobilization Of Real Estate Development

Some Ningbo bosses said that the money from real estate soon made them lose their direction for a time. But the success of real estate development, like that of manufacturing, is not accidental

Don't put eggs in the same basket. This sentence has the best footnote in Ningbo's manufacturing industry.

This coastal city, which is famous for its private economy and has developed traditional industries such as textiles, household appliances and molds, has brought diversification to the extreme. As a result of diversification, real estate has become a must for large enterprises to diversify.

Youngor was the first real estate enterprise to set foot in the real estate industry. This Ningbo "time-honored brand" real estate enterprise was established in 1992, and has made considerable development since 1999.

Since then, more Ningbo manufacturing industry The boss began to follow the trend of "selling houses". The most typical example is the clothing industry. There is a famous joke in the circle: all the clothing brands that can be seen in Ningbo Tianyi Square business circle are selling houses.

Indeed, Youngor, Luomeng, Shanshan, Taipingniao, Boyang, Vico, Lodz, Peiluocheng, Shenzhou Manufacturing, Ernie, the hometown of "Red Sect Tailors", these clothing brands are not satisfied with the profit of every stitch. Selling houses has become the best investment industry with fast short-term profit and low threshold.

"The diversification of Ningbo's manufacturing industry was divided into two periods. One was around 2000, when the policy was liberalized. These enterprises felt that real estate was profitable, so they came to invest in real estate. Around this time, a number of real estate companies were born. These companies have one characteristic, their main business is very strong, and they want to find other profit points." Xu Jiangtao, deputy general manager of Ningbo Rongrun Real Estate, said, for example Youngor And Vico, who entered the real estate industry in 1998, and Oakes, who entered the real estate industry around 2000.

"There is another one that came in around 2005 and 2006. These are the main business profits that have been continuously diluted." Xu Jiangtao said that this is the real estate situation that sees others are profitable and want to help the main business.

The list of the second type is even longer. Except for clothing enterprises, most manufacturing industries have almost started to set foot in real estate development, such as Haitian, a maker of stationery, Haitian, Bridger, a maker of foreign trade, and Jintian Copper, a maker of copper.

In fact, the auxiliary industry investment in real estate in Ningbo has almost become a "general mobilization of the whole people". This list is frighteningly long: Shuaikang, Yuyao Dafeng, Junsheng Auto, Deli Stationery, Ningbo Huaxiang.

They call such enterprises that only do one or two real estate projects "project oriented companies". Most companies are unable to compete with professional real estate companies through the "bidding, auction and listing" process after entering into real estate development, and often the projects in hand are not finished after completion.

"We have our own industries and factories, so we have land in hand. There is an opportunity to enter this industry and turn industrial land into commercial land," said Xu Jiangtao. This opportunity is to "retreat from two to three", adjust the urban land use structure and reduce industrial enterprise The proportion of land use should be increased, and the form should be changed in the process of urbanization. Enterprises that originally owned factories in the urban area of Ningbo can just develop on the plot of the original factory after relocation. This round of "retreat from two to three" in Ningbo also coincided with the spring breeze of the real estate industry.

The most typical example is a plot of land in Yinzhou District, Ningbo. This plot, located at the intersection of Qianhu North Road and Maocheng Road, was originally the factory area of Oaks, which has become the central urban area of Yinzhou District in urban development. "After enterprises moved out, this golden lot was developed into a real estate project," said the insiders.

However, most enterprises found that it was too late to enter after "taking advantage of the east wind", and the competition in real estate was no less than that in manufacturing. "Either go to the counties and cities below Ningbo to get land for development, or give up completely." Industry insiders said that, from the current situation, these manufacturing enterprises are basically not doing enough to join in real estate development.

Only Youngor can make it bigger. The company's 2009 annual report shows that the company has realized a net profit of 3.264 billion yuan, of which the textile and clothing business has realized an operating income of about 6.9 billion yuan and a net profit of about 445 million yuan; The operating income of the real estate business was about 5.195 billion yuan, and the net profit was about 1.19 billion yuan, with year-on-year growth of 49.88% and 53.16% respectively. The achievements of real estate development far exceed those of the main business textile and clothing, and this situation has occurred for many consecutive years.

Ningbo boss said that he did not want to do textile after he had done real estate. The money soon made them lose their direction. However, the only success was a flash in the pan. He found that the success of land acquisition, land acquisition, project promotion, real estate development and manufacturing was not accidental.