'Depth' creates the truth behind 360 billion

Lenovo, Sunco era has become history, the unique financial model is Sun Hongbin's biggest commercial achievement so far. Put aside Sun Hongbin's legendary unconventional life, Sunac China's strategic positioning, strategic implementation, risk control, investment mergers and acquisitions The outstanding performance in the fields of corporate culture and team building is the greatest asset that Sun Hongbin brings to the Chinese business community. It is worth learning and drawing lessons from.


In 2017, as a result of successive strategic investments in LeTV.com and the acquisition of 13 cultural and tourism projects under the Wanda Group, real estate companies have been eye-catching in China. However, when everyone focused their attention on these two investment mergers and acquisitions, they ignored it. Sunac China itself as a good company outstanding performance.

In 2014, Sunac was also ranked No. 12 in the sales of China's housing enterprises. In 2015, it achieved a sales value of 73.46 billion yuan. Its performance has risen to the 9th among state-owned housing companies. The sales volume in 2016 reached 155.31 billion yuan, ranking the national housing enterprises. No. 7. On March 29, 2018, Sunac China released its 2017 annual performance report. Its annual sales amounted to RMB 362.01 billion, which represented a year-on-year increase of 140.3%. The industry ranking jumped from No. 7 to No. 4. Second only to the top three sales champions in the last three years, Vanke, Evergrande and Country Garden exceeded the old-established housing companies such as Poly, Greenland, China Shipping, Longhu, R&F, China Fortune Land and China Resources Land.

At the same time, the performance report also showed that Rongchuang included operating revenue of RMB 65.87 billion in fiscal year 2017, an increase of 86.4% year-on-year; gross profit reached approximately RMB 13.63 billion, an increase of 181.1% from the same period last year; gross profit margin increased from 13.7% in 2016 to 20.7%. The net profit attributable to shareholders of the company reached 11 billion yuan, a substantial increase of 344% year-on-year.

In addition, Sunac China's new land bank in 2017 was approximately 67.842 million square meters, and its equity land bank was approximately 52.525 million square meters. As of March 29, including land under agreements such as the old reform, Sunac created a land bank totaling approximately 218 million square meters. Meters ranks third in the industry. The total value of land reserves held by Sunac China is about RMB 3 trillion, of which more than 96% of the value is located in first-tier, second-tier and first-tier cities, with sufficient and high-quality land. The reserve will effectively guarantee and support the steady development of Sunac in the next few years.

Judging from the financial data, Sunac China has already stood at the center of the Chinese real estate industry. In the coming years, it will be the first camp of the Chinese real estate industry.

The large scale of the market and high sales margins make China's real estate industry bring together the smartest group of entrepreneurs in the country. In the strong Chinese real estate industry, Sunac China has been able to steadily increase, and it has advanced to the first-line housing enterprises in just a few years. , A phenomenal business case.

Behind Sunac China's phenomenal performance of 360 billion sales is its outstanding performance in strategic positioning, strategic execution, risk control, investment and acquisition, corporate culture and team building. It deserves industry research and learning.


Strategic positioning is the core of an enterprise's development strategy. Whether it has a clear and differentiated strategic positioning is the basis for an enterprise's success.

In 2008, when most of the housing enterprises were still expanding their operations, Sun Hongbin, chairman of Sunac China, through deep thinking, took 'regional focus and high-end quality' as a firm strategic position for Sunac, focusing on first and second tier cities. High-end boutique routes, which makes Sunac become an alternative representative of China's housing companies, because most Chinese companies are best at making low-end products and fighting price wars, and few companies have the courage to position high-end products.

Sun Hongbin’s judgment is that after the large-scale real estate development, the driving force of the real estate industry is returning from scale expansion to resource appreciation, and the development orientation of the industry is also shifting from 'land bonus' to 'risk control oriented', and the risk of the first-tier core cities will be met. It is much smaller than the second and third tier cities. At the same time, he is convinced that high-end products sell faster than low-end products. The more they are regulated, the more they buy, the better the high-end residential property is. Because the restriction is behind purchase, the customer will choose to buy a good house.

According to public data released by major housing companies in China, Country Garden achieved sales of RMB 550.8 billion in 2017, sales area of ​​60.66 million square meters, and average sales price of RMB 9,080 per square meter. China Evergrande realized sales of RMB 500.96 billion. The sales area was 50,299,000 square meters, and the average sales price was 9,960 yuan/square meter. The sales volume of China's boutique residential company Vanke was 529.9 billion yuan, the sales area was 35.952 million square meters, and the average contract price was 14,739 yuan/square meter. In 2017, Sunac achieved sales of 3620.1 billion yuan, contracted sales area was only 222.98 million square meters, and average contracted sales price was as high as 16,380 yuan per square meter, ranking first in China's top 10 housing enterprises, laying the foundation for Sunac China high-end residential buildings. The status of the first brand.

Adhere to the strategy of deepening the city is to make a single city transparent and fully tap the value of the local market. Sunac China is mainly focused on the front lines of Beijing, North China, Shanghai, Southwest, Southeast, Guangzhou-Shenzhen, Central China and Hainan. In the first-tier cities and core cities, the sales of 460 billion yuan was only achieved by less than 30 cities in their layout. Country Garden and Evergrande both took a staking approach, covering all cities from one to five cities and entering more than 200 cities one after another. Cities and hundreds of counties, even Vanke Real Estate, which is also known for its focus on the core cities, has entered 76 cities.

At present, Sunac continues to lead the market in key cities it has entered, ranking top 10 in terms of sales rankings in 27 core cities, and ranking top sellers in key cities such as Tianjin, Chongqing, Shanghai and Wuxi. It reached tens of billions of yuan. When Sunac hit sales of more than 50 billion yuan in 2013, it had only 5 branches and 8 cities at that time, and the general real estate company on the scale of 50 billion yuan usually entered at least 20 cities.

With the strategic focus of regional focus and high-end products, Sunac became the winner in the real estate market in China. From the time of the property market regulation from 2010 to 2014, major real estate companies had a large inventory backlog in second- and third-tier cities. China's high-end residential buildings focused on core cities are in a bucking trend. Sales are increasing rapidly, and they are rapidly squeezing into the mainstream real estate camp. From 2015 to 2017, Sunac is leveraging its accumulated brand and product advantages. The first camp of China's housing prices, just a few short years, Sunray made other housing enterprises 10 years, and even 20 years can not do.

The strategic positioning of 'regional focus and high-end quality' is the precise judgment of Sun Hongbin, the founder of Sunac, on the development trend of China's real estate market, the keen insight into consumer demand, and his unremitting pursuit of quality.

There is no lack of commercial cases in which China has succeeded in fighting price wars. Sunac is one of the few companies in China that dares to publicly claim high-end titles. Its strategic positioning of 'regional focus and high-end quality' is worth learning and learning from all walks of life in China.


To achieve high-end boutique strategic positioning, the most important thing is to match the products and service support.

Sun Hongbin has extremely strict requirements for each project developed by Sunac China, be it planning, design, materials, or craftsmanship. He has always said, 'My dream now is to make high-quality products handed down, let Sunac create a stable, Calmly, long-term'. Sun Hongbin believes that every city should have a classic work that is sufficient to speak of the height of the city, and appropriately surpass the market to lead the market.

In order to create high-end products, Sunac China has conducted in-depth research on high-end customers to fully understand the high-end customers' lifestyle. For example, when Beijing’s Xishan No. 1 Academy was at the beginning of its orientation, Rongchuang had an in-depth interview with Liu Chuanzhi and many other top rich people. In Chongqing, each project of Sunac will visit hundreds of clients before positioning. During the project construction, customers will be advised on the facades, apartment types and landscapes.

Sun Hongbin said that if an ordinary product finds an advantage, it may prompt the customer to place an order, but high-end products often single out an insufficiency and cause the customer to give up. Therefore, Sunac advocates 'artisan spirit' in all projects and adopts advanced technologies. Design concept and strict management monitoring system, is committed to continuously improve the positioning, product planning, design, construction and service capabilities.

Taking Hangzhou Hangzhou, a project of Sunac in Hangzhou, as an example, it invested more than 100 million yuan only in the aspect of architectural design. In the construction of the garden landscape of the No.1 project of Tianjin Wangfu, the requirements that Sunac created for himself were all the stone materials. , The error cannot exceed 1mm, the industry standard is 3mm; in the first phase of the project of Chongqing Rose Garden, the design of more than two dozen sets of plans before and after are not satisfied, and eventually invited Wang Shouzhi, one of the important founders of domestic modern design, to give pointers. Mizu was only drafted. The laying and construction management of the wooden floor in each room, the marble floor of the room floor, the selection of the texture of a small door handle, the team has undergone dozens of comparisons, experiments, and selection of the highest quality products Find the best solution.

After many years of operation and accumulation, Suntron has successfully built a number of product lines with industry influence: No.1 Department of Education, Taohuayuan, Department of Education, and Taoyuan System. Leading projects in many core cities have led to high quality products. The highest standard of the project is the Xishan No. 1 hospital located on the north side of the Medical Botanical Garden of Yuanmingyuan West Road, Haidian District, Beijing, and the Huayuan Project located at the core location of the Double Lake of Jinji Lake and Dushu Lake in Suzhou City, which is renowned in the real estate industry. .

In addition to products, property services are also an important part of real estate companies building high-end products. Although Sunac's property service capabilities are in the leading position in the industry, it also invites third-party evaluation agencies to examine product quality and service levels from the perspective of the owners. According to the data of the third-party authoritative agency, Weixin, the total satisfaction of Rongchuang customers reached 85 in 2017, and the satisfaction of property services reached 89 points.

In 2017, Sunac China also implemented the “Sincere Action Plan” and completed more than 100 transformations and updates on the communities managed by Sunac Property Management to fully enhance the quality of life in the community. Sunac also organized a wealth of community cultural activities. The cultural activities of brand communities such as 'The Future of Walking', 'My Heart', 'The Nutshell Project' and 'Neighborhood Project' create a community atmosphere that is pleasant and good-neighborly.

High-quality products and services have laid a solid foundation for Sunac's high-end boutique strategy, which has created a strong market influence in every city it enters and has gained a good reputation.


The high turnover strategy is a strategy that many real estate companies attach great importance to, but some people think that the high turnover strategy only applies to low-cost houses, but Sun Hongbin does not think so, he said, 'The high turnover strategy is not only used for cheap prices. On the project, the speed of sales is not related to the price of the house.

Sunac is a rare Chinese housing company that can maintain high-end positioning while maintaining high turnover.

The rapid turnover of high-end products must rely on the accumulation of product capabilities and product brands, coupled with effective corporate governance and enforcement, otherwise it is impossible to achieve. Sun Meng, China's chief executive officer, said in an open forum that Created a complete operating system over the years, not the average company can learn'.

First, Sunac's high turnover advantage comes from strong product strength.

Sunac has strict requirements on the engineering rhythm. It is matched with mature product lines, strict engineering development processes and brand effects that are more quickly accepted by the market. This involves behind the market, marketing, R&D, and engineering aspects. Ability, indispensable.

Take the example of Sunachuang's top product line No.1 Academy, No.1 Academy of Beijing, Jiangyin No. 1 House and Lujiazui No.1 Academy have been widely recognized by customers, and also have a lot of brand reputation and loyalty. After a top-level product line was copied to core cities such as Wuhan and Suzhou, it was also highly sought after by the owners. It formed the “No.1 Hospital phenomenon” in a number of core cities, and Suzhou No.1 Hospital opened for sale for the first time in November 2016. Wuhan No.1 Yard has shown a hard-to-find situation during the custodian period.

Second, Sunac's high turnover advantage comes from the accurate grasp of the city's consumption power and market demand.

Sunac's sales ability is essentially due to its insight into the market and accurate judgment of the owner's needs. Developers only have deep insights into the city's spending power and residential needs, and build products that meet market demand and exceed market expectations. Coupled with the implementation of financial innovation, it can truly achieve rapid transformation.

3. Again, mergers and acquisitions brought a greater advantage to Rongchuang.

Sunac China currently owns more than 70% of its land reserves through mergers and acquisitions. The land acquired for mergers and acquisitions is fast-moving, occupies less funds, and has a high efficiency of fund use. It can quickly generate sales receipts. Generally speaking, land for auctions and auctions is at least It will take 10 months for pre-sale and cash flow to be generated. Compared to the land acquired by bidding and auction, after the project is closed, many projects can directly generate cash flow through pre-sale, which will take shorter time and use the funds. efficient.

The above three reasons are the core reasons why Sunac China can achieve high turnover while maintaining its high-end product positioning. It is not the financial turbulent marketing that has always been highly concerned by the outside world.

Of course, the strong execution capability of the Sunac team in the marketing field is also indispensable. The financial company of Rongchuang Marketing is well-known for its results-oriented and powerful ability to expand passengers, making Sunac create sales in every city and region it enters. Local first.

Sun Hongbin mentioned in his personal microblog that there is no secret in the sales of Sunac, and it is not essentially different from other real estate companies. The biggest difference is the execution power. 'We feel that products are better, high commissions must be paid, and payments must be made timely. Find the best salesperson and pass on the confidence and enthusiasm to the customer. 'The best salesperson, the first is the champion's spirit or the champion's awareness. The second is to have a strong sense of purpose and determination. Are you determined? To sell the project well, is it determined to implement this indicator?

Sunac China can do high-end products while also achieving high turnover. It is relying on the ability to create a unique system rather than pure sales.

Many people in the outside world still have the impression of Sun Hongbin, chairman of Sunac China, still in the Shunchi era. They are described by madman and ignorant man, but they have not noticed that Sun Hongbin has already taken offense and defense. It attaches great importance to the risk control of the company.

In 2017, while the rapid growth in sales, revenue and net profit, Sunac's financial performance was also extremely stable. As of December 31, 2017, Sunac China booked cash of up to 96.72 billion yuan, an increase of approximately 38.5% year-on-year. Net assets increased significantly to RMB 60.64 billion, an increase of approximately 71.2% year-on-year, and the net debt ratio was approximately 60 percentage points lower than June 30, 2017.

At the 2017 performance briefing, Wang Mengde, the president of Sunac China, stated that in 2018, Sunac will insist on accelerating the turnover and resolutely go to inventory. A large amount of sales repayment will enable the Group to maintain sufficient liquidity and will carefully control the investment rhythm. , Control debt ratio, calmly deal with possible market fluctuations, and have the ability to grasp the land market opportunities.

Sun Hongbin also stated that the greatest risk of real estate is to buy expensive land. He judged that due to the continuous adjustment of government policies in 2018, the entire capital market is now tight. The focus of Sunac is to control the risk reduction leverage and make itself absolutely safe. In terms of local strategy, Sunac will remain cautious, pay close attention to market changes and track various opportunities, and give full play to the brand advantage in the M&A market, seize opportunities to select high-quality projects, and reasonably complement high-quality products in the event of absolute cash flow security. Land bank to maintain and further strengthen the competitive advantage of the Group's land bank.


In addition to regional focus, high-end quality and high turnover, the unique acquisition model is also a feature that Rongchuang has to mention. Sun Hongbin has long ago judged that the future mergers and acquisitions between housing prices are a major trend.

In 2016, Sunac announced a total of 11 equity purchase transactions, involving 56 projects, a total built-up area of ​​22.68 million square meters, involving a total amount of 32.4 billion yuan. In 2016, based on seizing market opportunities to supplement a large number of high-quality land reserves, Sunac In 2017, the land market that dealt with overheating was prepared to adopt more prudent land acquisition strategies in the open market to control investment risks. At the same time, the Group leveraged its brand and reputation in M&A and cooperation, and acquired a large number of quality projects through mergers and acquisitions and cooperation. It further supplemented Rongchuang with high-quality land reserves, consolidating the strategic advantages of the Group's land bank.

Sun Hongbin stated at the results conference that Sunac was able to rapidly grow to a sales volume of the order of 300 billion in size in 2017, and at the same time possesses a land bank with absolute advantages. It is precisely because Rongchuang made M&As the main way to increase land reserves. This, in turn, benefits from the creation of a 'good reputation' - this comes from the hard power and soft power of the Sunac brand.

In Sun Hongbin's view, the Sunac brand is divided into two parts, one is hard power and the other is soft power.

Hard power refers to high-quality products, customer-satisfied services, values ​​and culture, etc. This is the credit and reputation of 'TO C'; soft power refers to the credit of the company, its reputation in M&A and business, This is 'TO B'. 'The word of mouth is very important in the boss's circle'. Sun Hongbin said that it is most important to be a business word of mouth. The 'TO B' credit, word of mouth and other soft powers means that Sunac can have more in 2017. M&A information, M&A opportunities, thus winning the key to scale expansion opportunities. In 2017, real estate has come to a great era of integrated M&A. 'All companies want to do M&A, why would they come to you?' Sun Hongbin bluntly, 'Because of me Sun Hongbin has a reputation, has a credit, and speaks count. '

In the year of 2017, the total assets of Sunac achieved a substantial increase to 623.1 billion yuan, and the owner’s equity reached 60.6 billion, an increase of 77%. The main reason was the acquisition of 13 Wanda travel projects. Wang Mengde said, “The transaction with Wanda in 2017 was If it is successful, it will be beneficial to Sunac. Wanda’s transaction will contribute a lot to the future saleable properties and will also give us a great advantage in the tourism and property industry. This time, we will adopt the most rigorous and conservative assessment of Wanda, and the residential section will There are 30% to 40% of gross profit. It is believed that after a few years, Brigade will become the main profit contribution point of the group business. '

Sunac China's management judged that in 2018, the government is unlikely to loosen the real estate control policy as a whole. Land acquisitions may have better opportunities to further promote industry integration. Sunac China will continue to seize the possibility that Better M&A opportunities.


The strategy determines the organization, and the organization determines the success or failure. Even if the company has a forward-looking vision, if there is no strong team, the forward-looking strategy can not be well implemented. The strategic execution force of Sunac is due to Sun Hongbin’s creation of a strategy. The most stable core team in the industry.

Sun Mengbin, CEO of Sunac China, is the most admired assistant of Sun Hongbin and joined Sunac in 2006. Prior to joining Sunac, he was the chief operating officer and financial controller of Sunco China Holdings Limited from 2005 to 2006, and Sun Hongbin. Working together for 13 years.

In addition, the presidents of the eight regional companies that helped Sunac hit Chinese cities in various regions are also elderly people who have followed Sun Hongbin for many years. Among them, Jing Hong, President of Beijing Regional Corporation, Tian Qiang, President of Shanghai Regional Corporation, and Huang Shuping, President of Guangzhou-Shenzhen Regional Corporation Joined Sunac in 2007 for a total of 11 years; Xi Xun, President of North China Regional Corporation; Wang Peng, President of Southeast Regional Corporation; Wang Yingjia, President of Central China Regional Corporation, joined in 2004 for 14 years; President of Southwest Regional Corporation, Shang Yu and General Manager of Hainan Regional Corporation Zhong Liansheng has joined since its founding in 2003, following Sun Hongbin for 15 years.

In addition to the presidents of the eight regional companies, others include Chief Operating Officer Ma Zhixia, Chairman of Shanghai Regional Corporation Wang Hongbin, Executive General Manager of Guangzhou-Shenzhen Region Li Shaozhong, Chairman of Southeast Regional Corporation Chen Hengliu, Chief Financial Officer Cao Hongling, Dong Mi Gao et al. A group of senior executives have at least 10 years of work experience in Sunac.

All core executives are endogenously cultivated by the company, which greatly enhances the centripetal force and execution of the team.

At the site of Sunac China's 2017 performance announcement, a reporter questioned Sunac's incentive mechanism for employees. Sun Hongbin replied, 'The incentive mechanism is not dependent on money. It certainly is useless to rely on money. We rely on the spirit.'

The reason why these senior executives choose to follow in a long-term way is that in addition to Sun Hongbin’s never inciting employees, the most important thing is Sun Hongbin’s strategic vision, leadership charisma and full authorization. Some executives said that Sun Hongbin is an unqualified strategy for senior executives. Direction, people who can rest assured that they can eat meat.


Sun Hongbin is destined to be a legendary entrepreneur in the history of Chinese business.

Many people still talked about Sun Hongbin’s association prison and the legendary story of Shunchi’s defeat. Many people also acquired Greentown, Kaisa, FusionTech, Jinke Real Estate, LeTV, Wanda, etc. from Sunac. The vertical and horizontal capital trading admiration is also admirable, and some people are eagerly wooing Sun Hongbin’s ridiculous laughter on public occasions and become a star, but there is very little outside knowledge of Sunac China.

Lenovo, Sunco era has become history, the unique financial model is Sun Hongbin's biggest commercial achievement so far. Put aside Sun Hongbin's legendary ups and downs, Sunac China's strategic positioning, strategic implementation, risk control, investment mergers and acquisitions The outstanding performance in the fields of corporate culture and team building is the greatest asset that Sun Hongbin brings to the Chinese business community. It is worth learning and drawing lessons from.