Jakarta –
Still remember Country Garden, a Chinese property developer who is threatened with bankruptcy because he cannot pay his debts? There is new news from the company.
Now, the company has decided to cut the salaries of 4 of its top officials to support the company’s finances. Their salaries were cut by 67% to 96%. The salaries of the two top officials were even reduced to 120 thousand yuan or around Rp. 256 million per year (exchange rate: Rp. 2,141/yuan).
Quoted from Caixin Global, Wednesday (13/12/2023), the salary cut was also experienced by Chairwoman Yang Huiyan, who is the daughter of company founder Yang Guoqiang. Yang Huiyan had to be willing to have her salary cut from 370 thousand yuan (Rp. 792 million) to 120 thousand yuan (Rp. 256 million) per year.
Meanwhile, other top company officials, namely President Director Mo Bin, had their salary cut to 120 thousand yuan from the previous 3 million yuan, Rp. 6.4 billion), Executive Director Yang Ziying was cut from 2 million (Rp. 4.2 billion) and non-Executive Director Chen Chong now gets 120 thousand yuan from the previous 370 thousand yuan.
Yang Huiyan is the daughter of Country Garden’s founder, Yang Guoqiang. Yang Ziying and Chen are also members of Yang Guoqiang’s family.
“My family will definitely make every effort to support the company,” Yang Huiyan said during an internal conference. Relevant authorities have conducted a sensitivity analysis and found that Country Garden will not go bankrupt in the next decade, he said.
Members of the Yang family, who are Country Garden’s main shareholders, have so far provided about HKD41 billion (US$5.25 billion) to the company through loans, increased shareholdings, bond purchases and share distributions. The family has never reduced its shareholding in the company.
Country Garden experienced a liquidity crisis in the third quarter and then launched a domestic and external debt restructuring. Most of the company’s domestic debt has been extended for three years, and related efforts to restructure external debt are underway. Country Garden has reduced its administrative spending by almost 60 percent since 2021 in an effort to overcome the liquidity crisis.
As previously reported, Country Garden was worth US$ 194 billion or the equivalent of Rp. 2,910 trillion.
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2023-12-14 00:27:59
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