Vanke will further strengthen the organizational intensification of development and operation business, with the operation headquarters sinking further to the front line of business, directly responsible for the management of product origins and the operation of major projects. At the same time, the operation headquarters will establish an office business unit and deepen the organization of the commercial business unit. In terms of personnel arrangements, the original core team will remain unchanged.
Finance Association, October 11th (Reporter Wang Haichun) Vanke will make further optimization adjustments to the company's organizational structure.
According to reports, Vanke recently issued an internal document to further strengthen the organizational intensification of the development and operation business. Under this initiative, the operation headquarters will sink further to the front line of business, directly responsible for the management of product origins and the operation of major projects. Meanwhile, the operation headquarters will establish an office business unit and deepen the organization of the commercial business unit. In terms of personnel arrangements, the original core team will remain unchanged.
It is understood that Vanke will simplify the functions of the East China, Southern, Beijing, Southwest, and Central China regional operation headquarters, positioning them as 'frontline command posts' for operations, setting only business functions directly related to projects, and no longer setting back-office support functions. The Northeast and Northwest regions will be adjusted to the headquarters of the company, with only one set of management functions set by the headquarters to intensively manage projects in each city within the region; the Shanghai and Guangfo companies, which have many major projects and a large production value, will be directly managed by the development and operation headquarters to strengthen professional control over resource activation, operational efficiency, delivery quality, cost management, and other aspects.
Furthermore, to further improve the operational efficiency of commercial and office assets, the development and operation headquarters will establish an office business unit, focusing on improving the operation efficiency of office assets, while also deepening the organization of the commercial business unit. The business unit headquarters will focus on the development of three core product lines of large shopping centers, community businesses, and historical cultural districts in the future, with frontline projects being merged into seven regional companies to better serve the local market and customers and focus on detailed project development.
In terms of personnel arrangements, the original core team remains unchanged, with Zhang Hai continuing to oversee the overall operation of the development and operation headquarters, Sun Jia continuing as the head of the commercial business unit, Wu Di, Zhou Yiqun, Li Wei, Yi Ping'an, Guo Jixun, and Zeng Weijin continue to serve as regional or headquarters leaders, and Cao Jiangwei, general manager of the Guangfo company, taking over from Lu Bing to return to the north to oversee the Beijing area, while Lu Bing will assume the role of head of the office business unit.
Regarding the latest arrangements, Vanke stated that the company conducts routine organizational reviews and corresponding optimizations every year to better adapt to changes in the situation and development needs.
"The further intensification of this organizational structure will help improve the operational efficiency and benefits of projects, especially focusing efforts on key projects. Against the backdrop of various policies to support market stability being successively introduced, it will also help the company better seize the market opportunities brought by these policies." Vanke mentioned.
Industry experts believe that Vanke's adjustment this time is both a routine practice and a proactive response to the trend. On the one hand, it is common for enterprises to flexibly adjust their organizational structure regularly according to changes in the situation, and Vanke also conducts regular adjustments every year. On the other hand, with the significant overall scale reduction in the industry, streamlining and flattening the organization is also the general trend. According to incomplete statistics, over the past two years, more than 20 real estate companies have carried out similar organizational adjustments, such as streamlining and integrating regions, reducing management levels, and strengthening the headquarter's flat management of key projects, including China Resources, China Overseas, China Merchants, and other top central enterprises.
In terms of sales performance, according to the data released by Vanke on October 11, 2024, in September 2024, Vanke achieved a contractual sales area of 1.231 million square meters and a contract sales amount of 17.42 billion yuan. From January to September 2024, Vanke cumulatively achieved a contractual sales area of 13.308 million square meters and a contract sales amount of 181.2 billion yuan.