Ningbo Manufacturing Enterprises: General Mobilization Of Real Estate Development

Do not put eggs in the same basket.

The famous coastal city, developed by the traditional industries such as textiles, home appliances, moulds and so on, has played a leading role in diversification. The result of diversification is following: the real estate has become a necessary choice for large enterprises to diversify.

The first YOUNGOR to enter the real estate industry is YOUNGOR, the real estate company of Ningbo's "time-honored brand" was established in 1999 and has made relatively great progress after 1999.

Since then, more Ningbo manufacturing bosses began to follow the trend of "selling houses". The most typical example is the clothing industry. There is a famous joke in the circle: the clothing brands that can be seen in Tianyi Plaza in Ningbo are selling houses.

In truth,

"The diversification of manufacturing industry in Ningbo is divided into two periods, one is around 2000, when the policy was released. These enterprises feel that the real estate is profitable and they invest in real estate.

Before and after the birth of a number of real estate companies, these companies have characteristics, the main business is strong, looking for other profit points.

Xu Jiangtao, deputy general manager of Yung run real estate, Ningbo, said YOUNGOR, as well as VICCO, who entered the real estate market in 1998, and AUX entered the market in 2000.

"One of them was entered in 2005 and 2006, and the profits of the main industry were constantly diluted."

Xu Jiangtao said, this is to see others profitable, and want to assist the main business, just see the real estate situation is very good.

The second list is longer. In addition to garment enterprises, most of the manufacturing industries have begun to get involved in real estate development, such as making extensive stationery, making Haitian for moulds, making foreign trade and making Jintian copper.

In fact, the investment in real estate industry in Ningbo has become almost a "general mobilization". This list is frightening: Sacon, Yuyao Dafeng, Jun Sheng automobile, deli stationery and Ningbo Huaxiang, "almost all manufacturing enterprises with large scale have experience in developing real estate."

Insiders told reporters.

They call this enterprise that only makes one or two real estate projects.

"We have factories and factories, so we have land in hand, and there is an opportunity to enter the industry and turn industrial property into commercial land."

Xu Jiangtao said.

The opportunity is to adjust the urban land use structure, reduce the proportion of land used by industrial enterprises, increase the proportion of land for service industry, and pform the form in the process of urbanization.

The enterprises that owned factories in the urban area of Ningbo were able to develop on the plots of the original factory after the relocation. Ningbo's "retreating into three areas" just caught up with the spring breeze of the real estate industry.

The most typical example is AUX's land in Yinzhou District, Ningbo, which is located at the intersection of Qian Hu Bei Road and MECO road. It was originally a factory area of AUX. It became the central city of Yinzhou District in the course of urban development. "After the relocation of enterprises, the gold area was turned into a real estate project."

Insiders said.

However, most enterprises found that the time for entry was already too late, and the competition of real estate was not smaller than that of the manufacturing industry. "To go to the counties or cities below Ningbo, to develop them, or to give up completely."

Insiders said that from the current situation, these manufacturing enterprises on the real estate development, basically do little.

The only thing bigger is YOUNGOR.

The company's annual report 2009 showed that the company achieved a net profit of 3 billion 264 million yuan, of which the textile and garment business achieved a business income of about 6 billion 900 million yuan, net profit of about 445 million yuan, real estate business revenue of about 5 billion 195 million yuan, net profit of about 1 billion 190 million yuan, an increase of 49.88% and 53.16% respectively over the same period.

The achievements of real estate development far exceed the performance of main business textile and clothing, and this situation has been appearing for many years.

Ningbo boss said: do not want to do real estate textile.

They soon lost their bearings.

But the only success is just a flash in the pan. He found that, like shooting, taking the land, pushing projects, real estate development and manufacturing, success is no accident.