Core Viewpoint - The resignation of Yu Liang marks the end of an era for Vanke, transitioning from a high-growth phase to a more cautious and defensive strategy in the real estate industry [4][5][26]. Group 1: Leadership Transition - Yu Liang, who took over from Wang Shi in 2017, has been a pivotal figure in Vanke's evolution, emphasizing risk management and financial prudence [4][7]. - His departure signifies a shift in Vanke's leadership style, moving away from the previous model established by Wang Shi [5][26]. - The company no longer requires a successor in the mold of Yu Liang, indicating a new phase in its corporate governance [5]. Group 2: Strategic Shifts - Yu Liang warned of a transition from a "golden era" to a "silver era" for the real estate market as early as 2014, advocating for a strategic pivot away from traditional residential development [10][11]. - Under his leadership, Vanke initiated a "de-real estate" strategy, diversifying into urban services and logistics, which included the launch of the "Octopus Plan" in 2015 [11][12]. - The company adopted a defensive strategy during the "black iron era," focusing on cash flow and cutting non-core businesses to ensure survival [15][16]. Group 3: Financial Performance and Market Response - Vanke's stock price faced significant declines, with shares dropping to levels not seen since 2015, reflecting market concerns over its financial health [19]. - The company experienced a substantial increase in bond yields, with some reaching nearly 60%, indicating investor anxiety [19]. - In response to market volatility, Vanke held a rare earnings call to reassure stakeholders of its financial stability and support from local government entities [20]. Group 4: Cost-Cutting Measures - Yu Liang implemented rigorous cost-cutting measures, including a reduction in employee benefits and a focus on minimizing unnecessary expenditures [18][24]. - The company underwent significant asset disposals, including the sale of various projects to streamline operations and improve liquidity [21][22]. - Vanke's internal culture shifted to a more austere environment, emphasizing frugality and efficiency in operations [18][24]. Group 5: Industry Context - The transition from high-leverage growth to a focus on stability and low-profit margins reflects broader trends in the real estate industry, as many firms face similar challenges [26]. - Vanke's evolution under Yu Liang mirrors the industry's shift from rapid expansion to a more cautious approach, emphasizing the need for sustainable practices [26].