I Love My Family.

Xie Yong thinks he is a strong learner. Before entering my home in 2017, Xie Yong worked for a long time in the Limited by Share Ltd group of Kunming department store.

In 2017, Kunming carried out a major asset reorganization and acquired Beijing by issuing shares and paying cash. I love my real estate brokerage company limited ("I love my family"). As a result, I love my family to become the first real estate brokerage company landed on A shares. Xie Yong's status changed from Chairman of Kunming to Chairman and CEO of my company.

Xie Yong's research on the industry began in 2016, but the four years still seemed to be short. Now, after a lot of hard work, he has the understanding of the development of the industry.

I love my family was founded in 2000, is one of the earliest real estate brokerage companies, and then gradually become the real estate brokerage industry, "the first tier." After landing in the capital market, most of the original management of the company withdrew. Xie Yong worked hard to complete the performance requirements of the gambling agreement, while implementing the transformation to the company, such as the introduction of senior management, adjustment of management structure, strengthening of digital strategy, and so on.

During this period, China's real estate market quickly entered the stock stage, and the real estate brokerage industry expanded rapidly. For various reasons, I love my family to behave independently: not pursuing scale, pursuing quality and profit. In this way of thinking, I loved my family and even stepped on the brakes on the long rental apartment business at the beginning of last year.

By 2020, I loved my family for three years. Although the yoke is fading, Xie Yong's transformation of the company is continuing. In the process, what genes do I love my family? What kind of company will I love my family in the future?

I love my family to further sink the equity incentive. Visual China

Size or profit?

I love my family's backdoor listing, which has been regarded as a big event in the industry. After 2014, the real estate market in China passed the equilibrium point of supply and demand. The incremental housing market began to hit the "ceiling", and the stock market ushered in huge space and historic development opportunities.

Against this background, some brokerages are sought after by PE, VC and other capital, and are rapidly expanding under capital support. Other segments of the stock market, such as leasing, information management and so on, have also become a hot spot in capital market. Financing and expansion have become the main theme of the industry.

I love my family's path differently, it crosses the primary market financing, directly borrows the shell the way to enter the capital two level market.

This has a key impact on the company's future development. The first tier market requires enterprises to expand rapidly and capital to cash in. The two tier market emphasizes financial stability and long-term development, which is good for corporate governance but not conducive to rapid expansion.

How to balance the scale and profit has become the primary problem facing Xie Yong. "In the process of performance, it is bound to lose the demand for market share. Or do you want to scale or profit? There must always be trade-offs. " Xie Yong told reporters on twenty-first Century economic report.

Actually, the profit requirement for gambling agreement is quite challenging for me to love my family. According to the agreement, I love my family in 2017, 2018, 2019, respectively, to achieve net profit of not less than 500 million yuan, 600 million yuan and 700 million yuan. In 2016, I loved my family's net profit after deducting the share price after paying the price, which was 322 million yuan.

To achieve this goal, Xie Yong has implemented a series of measures to reduce costs and increase efficiency.

"After that, I travel in economy class, and you see it." At the beginning of my love for my family, Xie Yong made such a stand at the first executive meeting. He said that the purpose of this statement is to urge everyone to reduce costs through their own example.

In addition, I love my family in 2018 to spend 200 million yuan, repurchase 34 million 864 thousand shares of the company, for the implementation of equity incentive. The purpose of the move is to mobilize the initiative and creativity of the company's management and core staff to ensure the realization of the company's future development strategy and business objectives.

Another issue concerns the investment and development of the company. "The former shareholders want to cash out more, so the investment in the long-term development of enterprises is insufficient." Xie Yong said that such input includes talent, technology, management and so on.

In recent years, I love my family to introduce more professionals, and the top and middle managers of the company have also changed. In September 2018, Liu Dongying, who worked in IBM, joined me in love with my family as vice president and CIO (Chief Information Officer). In August 2019, Lu Jun, assistant director of the former SASAC News Center, joined me in love with my family as vice president, in charge of group marketing and brand center.

"Today's business competition in China requires you to continue to learn and require you to be more professional." Xie Yong explains his employment logic in this way: when the real estate brokerage industry turns from "small workshop" to digital and collaborative production mode, the requirements for people will certainly improve.

Watch out for capital abduction

Xie Yong himself is learning all the time. After he went to Beijing alone, he rented a room near the company. He went out early and returned to work late every day. He often chose to travel there on business day by day, and his work intensity was much higher than before. "After I did CEO, I never had a rest all day."

After three years of employment, Xie Yong's understanding of the real estate brokerage industry has deepened. He believes that real estate brokerage is a high threshold and high barrier industry, "the management of brokers is a very complicated and professional management".

"The barrier of this industry is how to make the broker's work more effective and how to make his sense of belonging. You need to provide better tools for brokers, but also to restrict and standardize the operation process, so that customers feel that this is a reassuring service. " Xie Yong said, "the core is to improve efficiency."

To improve efficiency, Xie Yong tried to reshape the business process that I love my family. "After I came, I felt that every business process was restarted from the bottom. It's equivalent to how many generations have been iterated. We have to learn, train and rebuild one by one.

At the same time, technology is also speeding up. In 2018 and 2019, I love my family's investment in digital love family strategy, which is 90 million yuan and 250 million yuan respectively, and the budget for 2020 has increased to 420 million yuan. At present, there are more than 600 people in headquarters, 400 are IT systems, and this year the plan continues to expand.

"Every enterprise in the future is a technology company. It's all digital. It's just that you have to use the Internet and systems to arm all your business actions." Xie Yong believes that the investment scale of IT system is large and the cycle of return is long. But with the gradual progress of the industry process and the development of power platform, continuous investment is still necessary. "It's not my immediate interest to see profits right now."

Xie Yong is also very vigilant about the abduction of capital. In recent years, a lot of capital has been invested in the real estate brokerage industry. Some companies have expanded strongly under capital support, but there are also failed cases such as love house and lucky house. The leasing industry has also been on the rise and reshuffle in recent years.

"Some of the capital pursue short-term scale growth rate, which is one of my very disgusted indicators. Such a big business will fail, and of course, there are a few successful cases, but that is not anyone can copy. Xie Yong said.

Yang Hong, founder of the vacant Research Institute, told the twenty-first Century economic report that for the real estate brokerage industry, capital is a bonus, but it is not a decisive factor, and the core is the continuous growth ability of the enterprise itself. In his view, the stage of rapid expansion through capital has passed. Today, the demand for enterprises is higher. The professionalism, service quality and consumer demands of brokers can not be quickly realized.

It is because of the rapid expansion of the vigilance, from the beginning of last year, I love my family's long rental apartment business "step on the brakes". By retreating the low quality maturing housing resources, the scale of the "long apartment" product is reduced from 305 thousand sets to 276 thousand sets. This also reduced the damage to the company during the new crown pneumonia outbreak.

Xie Yong believes that the business mode of financing and subsidized customers will die out. Only by achieving the highest operational efficiency and realizing the expansion of quality and scale can enterprises win in the competition. The logic of the long rental apartment industry is that the customer's ability to pay rent is very rigid. Relying on a large number of brands and marketing resources to achieve the limited price of the brand premium, there will be no difference in bargaining power at the end of the lease. The real differentiation advantage is the operation ability and efficiency of different brands.

"The two venture"

In 2019, I loved my family to achieve a net profit of 827 million yuan. Over the past three years, we accumulated a net profit of 1 billion 875 million yuan, and exceeded the performance pledge.

After the lifting of the yoke of performance, I love my family's development ideas. Is the company going on the "fast lane"? Xie Yong cautiously said, "it was mainly profit oriented, but now it is development oriented."

At present, the concentration ratio of real estate brokerage industry is low, and 70% small and micro intermediaries have completed more than 50% of the transaction volume in the market. In recent years, the application of Internet technology has promoted the comprehensive innovation of traditional brokers in business thinking and business mode. The intervention of capital has broken the limitation of enterprises' difficulty in scale and is expected to cultivate large scale leading enterprises. For the head enterprises, there is still room for development.

For my vision of my love for my family, Xie Yong talked about the three point: the market is big enough; the head real estate brokerage company is limited; every company has different stages of development, and I love my family in the "start-up period". The goal is to stay in the first camp rather than compare with other companies.

Xie Yong referred to the development mentality after gambling as "the two venture" and instilled this in the management team. "Before this company belonged only to the boss, it had nothing to do with all the backbone companies. Now it is a public company."

According to the usual practice of "startups", I love my family to further sink the equity incentive. This year, I love my family plans to select 500 store managers in more than 3000 stores to implement the stock incentive plan, and stimulate the enthusiasm of the grassroots staff.

For management, after the performance is finished, I love my family and will also develop a new equity incentive plan.

In the 2019 annual report, I loved my family to issue a new "strategic plan (2020-2025 years"), and made clear that Future Ltd's goal is to become an "entry level multi-element integrated residential platform operator". This also means that just as chain owners launch shells to find houses, I love my family and plan to build their own living service platform.

It is reported that I love my family is building an internal platform system, of which the rental system has been completed. But for the opening of the platform, Xie Yong said cautiously that platform related issues such as system testing, organization optimization and management improvement are not a short-term process. As for opening to the outside world, we must wait for the right time.

Xie Yong said that the urgent task at present is to seize market opportunities and promote the development of core businesses such as brokerage business and asset management.

"First, in the future, we are still a company with multiple businesses. This is the same. Second, internally, we hope that all business lines can develop independently. For example, we have just formulated the goal of "three to five years of independent listing".

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