The Dilemma and Way Out of Real Estate Groups under Covid-19

Research Article
Open access

The Dilemma and Way Out of Real Estate Groups under Covid-19

Yujia Li 1*
  • 1 Nanchang University    
  • *corresponding author 5411121050@email.ncu.edu.cn
Published on 10 November 2023 | https://doi.org/10.54254/2754-1169/35/20231747
AEMPS Vol.35
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-091-2
ISBN (Online): 978-1-83558-092-9

Abstract

In retrospect, the Covid-19 hit the global economic hard. As a core industry, real estate also experienced a terrible loss. This paper is aimed to reflect the practical situation affected by the epidemic, taking two typical enterprises as examples on behalf of the whole real estate industry to provide relevant ex-perience in case that if the similar emergency happens in the future. By recit-ing some essential statistics (asset-liability ratio and EBITDA etc.) during 2019 to 2022 and analyzing the fluctuations, it is obvious that this epidemic caused a big shock to these companies. The sales amount and investment de-clined considerably, leading to a fall in companies’ gross profit and equity. Apart from that, the cash flow also suffered some influences for the delayed inflow, adding risk to the debt structure. Other factors like the shortage of materials and blocked expansion as well as land acquisition also contributed to the dilemma. The business conditions in three four years were not very promising. The companies should adopt effective measures in terms of funds management, shareholding structure, financing structure and inventory supervision.

Keywords:

real estate, Covid-19, vanke, poly property

Li,Y. (2023). The Dilemma and Way Out of Real Estate Groups under Covid-19. Advances in Economics, Management and Political Sciences,35,151-157.
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References

[1]. Zhou, Y., Wang, W., Sun, Y., et al.: The prevalence and risk factors of psychological disturbances of frontline medical staff in China under the COVID-19 epidemic: workload should be concerned. Journal of affective disorders, 277, 510-514 (2020).

[2]. Zhou, J., Cao, Z., Wang, W., et al.: First patient management of COVID-19 in Changsha, China: a case report. BMC Infectious Diseases, 20, 1-6 (2020).

[3]. Deng, Z.: Research on financing strategy of Vanke. Master’s thesis, The Jiangxi University of Finance and Economics (2020).

[4]. Liu, Y., Chang, Y.: The impact of asset and liability structure before and after the transformation of asset-light operation mode: A case study of Vanke Group. Northern Economic & Trade 5,132-136 (2020).

[5]. Huang, Z.: Research on Capital structure optimization of Poly Real Estate. Modern business (6), 65-68 (2023).

[6]. Chen, M.: Strategies for Capital structure Optimization of Poly Real Estate. Cooperative economy and science and technology 20, 118-120 (2021).

[7]. Liao, W.: Impact of COVID-19 on real estate enterprises and countermeasures. Shanghai Real Estate 3, 7-9 (2020).

[8]. Tang, W., Li, L.: Analysis on the solvency of Vanke Enterprises. Chinese Management Informatization 21, 36-37 (2021).

[9]. Chen, X.: Financial Strategy Analysis of Vanke. Modern business 28, 153-156 (2022).

[10]. Qiu, S.: Analysis of Financial Statements of Chinese Listed Real Estate Companies: Taking Poly Real Estate as an example. Financial Management Research 5, 59-64 (2022).

[11]. Huang, W., Lan, C., Xu, Y., Zhang, Z., Zeng, H.: Does COVID-19 matter for systemic financial risks? Evidence from China's financial and real estate sectors. Pacific-Basin Finance Journal, 74, 101819 (2022).

Cite this article

Li,Y. (2023). The Dilemma and Way Out of Real Estate Groups under Covid-19. Advances in Economics, Management and Political Sciences,35,151-157.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

ISBN：978-1-83558-091-2(Print) / 978-1-83558-092-9(Online)
Editor：Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.35
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Zhou, Y., Wang, W., Sun, Y., et al.: The prevalence and risk factors of psychological disturbances of frontline medical staff in China under the COVID-19 epidemic: workload should be concerned. Journal of affective disorders, 277, 510-514 (2020).

[2]. Zhou, J., Cao, Z., Wang, W., et al.: First patient management of COVID-19 in Changsha, China: a case report. BMC Infectious Diseases, 20, 1-6 (2020).

[3]. Deng, Z.: Research on financing strategy of Vanke. Master’s thesis, The Jiangxi University of Finance and Economics (2020).

[4]. Liu, Y., Chang, Y.: The impact of asset and liability structure before and after the transformation of asset-light operation mode: A case study of Vanke Group. Northern Economic & Trade 5,132-136 (2020).

[5]. Huang, Z.: Research on Capital structure optimization of Poly Real Estate. Modern business (6), 65-68 (2023).

[6]. Chen, M.: Strategies for Capital structure Optimization of Poly Real Estate. Cooperative economy and science and technology 20, 118-120 (2021).

[7]. Liao, W.: Impact of COVID-19 on real estate enterprises and countermeasures. Shanghai Real Estate 3, 7-9 (2020).

[8]. Tang, W., Li, L.: Analysis on the solvency of Vanke Enterprises. Chinese Management Informatization 21, 36-37 (2021).

[9]. Chen, X.: Financial Strategy Analysis of Vanke. Modern business 28, 153-156 (2022).

[10]. Qiu, S.: Analysis of Financial Statements of Chinese Listed Real Estate Companies: Taking Poly Real Estate as an example. Financial Management Research 5, 59-64 (2022).

[11]. Huang, W., Lan, C., Xu, Y., Zhang, Z., Zeng, H.: Does COVID-19 matter for systemic financial risks? Evidence from China's financial and real estate sectors. Pacific-Basin Finance Journal, 74, 101819 (2022).

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