China Merchants Shekou fired the first shot in the organizational structure adjustment for the new year.

At the beginning of the new year, it was believed that the real estate personnel circle would be relatively calm for a period. However, unexpectedly, just now, Sister Yan has obtained a significant organizational structure adjustment:

The city companies under China Merchants Shekou's East China region have recently initiated regional mergers! Along with this adjustment, relevant personnel transfers have also occurred.

China Merchants Shekou has also initiated the first round of personnel adjustments at the beginning of the year! To a certain extent, it also sends a signal to the industry to actively respond to challenges and adapt to the new stage of future development.

01 

Personnel Changes in the East China Region

Sister Yan has learned that the East China region of China Merchants Shekou is planning an internal merger recently. What has been determined so far is:

The Hangzhou company has been renamed the Zhejiang company, and the Ningbo company has been adjusted to a business division and included in the management of the Zhejiang company. After the adjustment, the city companies under the East China region include the Shanghai company, the Zhejiang company, and the Fujian company.

This merger of China Merchants Shekou is actually a common practice in the industry. After the industry enters a deep adjustment period, more and more enterprises begin to pursue intensive management to concentrate core forces and obtain a sustainable competitive advantage.

The potential of China Merchants Shekou's Hangzhou company was relatively strong last year:

Last year, the Hangzhou company successfully won several important plots. For example, in August last year, it won the land with the highest unit price in the Shangtang area of Hangzhou with about 1.4 billion; another example is that at the end of last year, it won a plot in Shangcheng District, Hangzhou with a total price of 3.123 billion, etc.;

In addition, in a third-party agency's 2024 Hangzhou sales ranking list, China Merchants Shekou also ranked 8th with a transaction amount of nearly 8 billion.

Relatively speaking, Sister Yan has not found the land acquisition news of the Ningbo company in Ningbo last year. At the sales level, it ranked 3rd in the 2024 Ningbo sales ranking with a sales volume of 5.47 billion.

After all, from the perspective of urban development potential, the Hangzhou "battlefield" still has great potential. It is reasonable that the Zhejiang company after this merger takes Hangzhou as the main body.

Looking back, the operation of adjusting the relevant city companies of China Merchants Shekou into business divisions has already existed before. For example, in 2023, there were market rumors that the Nantong company was adjusted to a business division under the Shanghai company, and the Wuxi company was adjusted to a business division under the Sunan company, etc.

After this adjustment, not only the internal structure has been optimized, but also the overall operational efficiency and per capita efficiency have been significantly improved. China Merchants Shekou Zhejiang Company will concentrate its advantages and exert more targeted efforts in the Zhejiang market.

02 

The Signal Released Behind the Change

I thought there would be no organizational change news at the beginning of the year. Unexpectedly, First, China Merchants Shekou initiated the first round of the 2025 organizational change.

This also shows to a certain extent the sensitivity of China Merchants Shekou to its own organizational structure and operational ecology, and it can timely make self-breakthroughs and adjustments.

In fact, looking back at the past organizational structure adjustments of China Merchants Shekou, the main theme is centered around building an efficient organizational structure system and an enterprise operation mechanism that matches personnel.

Also at the beginning of last year, China Merchants Shekou carried out a large-scale organizational structure adjustment. At that time, 7 regional companies were merged into 5 - East China, South China, North China, West China, and Jiangnan region, and relevant personnel transfers and arrangements were also carried out.

At that time, the core was to make two major adjustment actions for the regions:

One is to integrate the Shenzhen region and the South China region into a new region, and the entire Greater Bay Area will present a more complete and stronger regional form;

The second is that the Central China region will be weakened and cancelled in the structure, and the relevant cities involved will probably be divided to the Southwest region, North China region, etc. according to the principle of proximity.

China Merchants Shekou also took the initiative to change, carried out strategic focus, regional focus, and business focus, which can enable China Merchants Shekou to further achieve high-quality development.

After the organizational structure adjustment at the beginning of last year, China Merchants Shekou hardly made any relevant adjustments until this organizational change of the city companies within the region this year.

Last year, there were also many senior management changes in China Merchants Shekou:

• In February last year, the former general manager of China Merchants Shekou Beijing Company Lv Chuanlai, was promoted to the general manager of the North China region;
• In May last year, Nie Liming, the deputy general manager of China Merchants Shekou, resigned and went to work for China Merchants Group; on December 20 last year, China Merchants Shekou issued an announcement that Nie Liming was appointed as the new director of the company.
• In July last year, Huang Junlong, the chief financial officer and board secretary of China Merchants Shekou, resigned, and Yu Zhiliang, the deputy director of the Finance Department (Property Rights Department) of China Merchants Group Co., Ltd., took over;
• Peng Yiliang, the general manager of the South China region and the Shenzhen company, served as the deputy general manager of China Merchants Shekou;
• Zhang Tao, the former head of the Jiangnan region, was transferred to the Industrial Park Business Division as the general manager; and the position of the head of the Jiangnan region was taken over by Zhu Mingyu, the general manager of the Sunan company;
• Shang Gang, the former general manager of the Industrial Park Business Division, was transferred to the Chairman of China Merchants Venture Capital;

There are many other detailed adjustments, which will not be elaborated here one by one.

The appointment and removal of senior management positions in China Merchants Shekou are mostly internal selections, and there are few cases of introducing senior management from the outside. This also shows that the talent training and selection system of China Merchants has been very mature, and it can completely find the right candidates from a huge pool of high-quality talents to take office.

Moreover, China Merchants Shekou emphasizes a performance-oriented employment orientation, strengthens "The capable ones go up, the mediocre ones go down, and the inferior ones are eliminated", creates opportunities for high-quality talents who are "capable, willing, and responsible" to do things, and forms a virtuous cycle in which the organization and talents achieve mutual success and mutual promotion.

In the 2024 real estate enterprise sales ranking released by CRIC not long ago, China Merchants Shekou ranked 5th with a sales amount of 219.3 billion, with a gap of about more than 100 billion from Poly Development in the first place and China Overseas Land & Investment in the second place.

In the 2023 sales list, China Merchants Shekou also ranked 5th, and the sales amount at that time was 293.63 billion. It can be seen that China Merchants Shekou still has a certain space for development and improvement.

Of course, the lack of growth in sales is almost a challenge that all hardcore real estate enterprises will face now. The key lies in how to clear the existing inventory and create new increments, which depends on the strategic decision-making ability of the middle and senior management and the implementation ability of the organization.

Many people know that every year, China Merchants Shekou will make personnel adjustments based on performance. Subsequently, more city managers and regional managers may be promoted, appointed, or transferred.

Here, I can't help but sigh that even in a stable central state-owned enterprise, the middle and senior management must be fully focused to face an uncertain future, because there is no best, only better.

03 

Internal Competition and Cooperation of Regional Companies

It is undeniable that there is a certain kind of benign internal competition and cooperation among the regional companies of any real estate enterprise. Every year, China Merchants Shekou will release the operating income of each regional company in its annual report and semi-annual report, which is also one of the reference data to measure the strength of the regional companies.

For a long time in the past, the operating income of the East China region has always ranked first. In the 2023 annual report, the East China region ranked first with an operating income of nearly 50 billion and a proportion of 28.56%.

Financial report data

And it is very interesting that the head of the East China region often concurrently serves as the general manager of the Shanghai company. And it is from the two years when Lv Bin took charge of the East China region that China Merchants Shekou gradually accelerated the pace of returning to the Shanghai market.

Up to now, China Merchants Shekou has won the sales champion in Shanghai for two consecutive years, and in this hot land, it can create a sales volume of more than 60 billion or even 70 billion in one year.

It is estimated that because of the excellent performance in Shanghai, in the organizational structure adjustment at the beginning of 2024, Wen Enqi, the former deputy general manager of the East China region and the general manager of the Shanghai city, was promoted to the general manager of the East China region, and the general manager of the Shanghai company is also continued to be served by Wen Enqi.

Last year, China Merchants Shekou launched many important new projects in Shanghai. Sister Yan also saw for the first time that the various product lines of China Merchants Shekou were competing in Shanghai, which also made many people realize that China Merchants Shekou has the ability to create textbook-level residential products and the ability to build a three-dimensional city.

However, in the past year, the momentum of another regional company has also been very strong, that is, the Jiangnan Regional Company. In the 2023 annual report, The operating income of the Jiangnan region reached approximately 35.292 billion, accounting for 20.17%, second only to the East China region. The strategic significance of the Jiangnan region for China Merchants Shekou is self-evident.

In the semi-annual report of 2024, The Jiangnan region also ushered in a highlight moment, with an operating income of nearly 20 billion, accounting for nearly 40%, which has surpassed the East China region.

2024 Semi-annual report data

In the second half of last year, Jiangnan Company created two important projects in Hefei and Nanjing - Hefei China Merchants Xi and Nanjing Jinling Xu, which became the face of the entire Jiangnan Company! Especially Hefei China Merchants Xi, which shocked the entire Hefei real estate circle and became a popular project in the Hefei market last year.

Although the 2024 annual report will be released after some time, Sister Yan believes that the overall performance of the Jiangnan Company last year is indeed comparable to that of the East China Company. Both regional companies have contributed enough popular projects and many market topics, forming a benign competitive and cooperative relationship.

This article is from the WeChat public account "Real Estate People's Words", author: Sister Yan's team, and 36Kr is authorized to publish it.