Core Viewpoint - The Vanke partnership system, introduced eleven years ago, aimed to address profit distribution issues within the company, enhancing employee motivation and aligning their interests with those of shareholders. However, the system has faced challenges, leading to questions about its effectiveness and the company's stock performance [1][3][21]. Group 1: Background and Context - The partnership system was designed to resolve the inherent conflicts between capital owners and labor, focusing on equitable profit distribution [2][3]. - Vanke is not the first to propose the "partner" concept; it was initially introduced by Jack Ma, with other companies like Alibaba and Xiaomi implementing similar systems earlier [4][5]. - The real estate industry, being capital-intensive and competitive, necessitates collaboration among many individuals and substantial investments, making traditional individual efforts insufficient [7][8]. Group 2: Partnership System Structure - The partnership system consists of four main components: the career partner stockholding plan, project co-investment plan, event partnership, and internal entrepreneurship, with the first two being the core [33]. - The career partner stockholding plan aims to align long-term interests between the company and its employees by allowing management to hold company shares, similar to a management buyout [34][35]. - The project co-investment plan requires management and key personnel to invest in projects, linking their compensation directly to project performance [43][44]. Group 3: Implementation and Results - The implementation of the partnership system led to a significant increase in Vanke's operating efficiency, with average dividends per share rising from 0.24 yuan before the system to 0.64 yuan afterward [54]. - The stock price of Vanke saw a notable increase during the initial years of the partnership system, reaching a high of 36.38 yuan per share by the end of 2017, nearly tripling from before the system's implementation [58]. - However, employee co-investment peaked at over 10 billion yuan but has since declined significantly, reflecting the challenges faced during the industry's downturn [61][64]. Group 4: Challenges and Future Outlook - The partnership system has faced significant challenges, with the stock price dropping below the initial investment levels, leading to potential disbandment of the partnership structure [64][66]. - Vanke announced plans to develop a new long-term incentive mechanism, signaling a shift away from the economic profit bonus system that had been in place for nearly thirteen years [66]. - The partnership system's initial goals of shared benefits and risk-sharing have been complicated by market conditions, leading to a reevaluation of its effectiveness and sustainability [69][71].