Reduce costs and increase efficiency, continuously improve efficiency, and achieve profitability in the rapid growth of KK Group

  "Benefiting from a number of policy supports in expanding domestic demand and promoting consumption, the consumer market continues to improve." Recently, media reported that 21 brokerages are optimistic about big consumption. Not long ago, Industrial Securities overseas consumer industry research analysts released an industry tracking report "KK Group: A Trend Retail Group Winning with Products + Stores + Digitalization", which has attracted much attention from the market. Data show that since KK Group submitted its prospectus, many brokerages have released industry research reports. 

  The above report believes that China’s trend retail market will grow at a compound growth rate of 19.5% from 2020 to 2025, and the market size is expected to reach 475 billion yuan in 2025. With its advanced digital information technology system, KK Group has effectively realized the improvement of operational efficiency by optimizing location selection, product selection, logistics chain management, inventory management and other supply chain links, thus driving the steady growth of the company’s performance. 

  The report shows that the compound annual growth rate of GMV of KK Group in 2018-2020 is 246.2%, and the GMV of its main brand KKV in the first half of 2019, 2020 and 2021 is 97 million yuan, 1.156 billion yuan and 1.367 billion yuan respectively. 

  Trend retail, as a popular track of new retail, has been favored by capital in recent years, but the industry is facing challenges under the influence of the epidemic, and some companies have lowered their performance expectations. Can KK Group withstand the test of the epidemic and achieve steady improvement in performance in the face of adversity? Under the test of the epidemic, KK Group, which has impacted the "trendy retail leading" of Hong Kong stocks, has conveyed to the market and investors what kind of efficiency improvement methods? 

  Optimize the supply chain to continuously reduce costs and achieve "zero supply and consumption" three wins 

  Trend retail refers to a new retail model characterized by the unique concept and style of products, creative and fashionable entertainment functions in design, and immersive shopping experience. 

  As a representative of the rapid rise of the industry, KK Group has created the ultimate aesthetic space design with the insight of the current Generation Z consumer’s main force on the appearance and social needs, opened up the self-communication of KK Group’s brands on social media, and "open source" for the company’s performance growth. At the same time, KK Group also achieved effective "throttling" by effectively managing the supply chain system. According to public data, KK Group’s management fees continued to decline from 2018 to 2020, reaching 29.9%, 24.2%, and 17.1% respectively. In the first half of 2021, the management fee was only 8.4%, a year-on-year decrease of 13.1 percentage points. 

  KK Group said in the prospectus that the company has simplified the layers of the supply chain through a supply chain management system and manufactured its own-brand goods by sourcing directly from third-party brand partners or hiring OEM and ODM contractors to reduce supply-side costs. 

  From the prospectus data, KK Group’s own brand products have seen significant growth in recent years. The proportion of the company’s revenue from purchasing its own brand products from OEM and ODM contractors has increased from 1.4% in 2018 to 13.4% in 2021. 

  On the other hand, KK Group’s control of supply-side costs includes innovative mechanisms such as "buyout system, 0 mid-platform fees, and shortening account period". 

  The "buyout system" refers to the direct purchase of products from brand suppliers by way of buyout for a certain product. For KK Group, this move can not only ensure the supply of products, but also reduce the operating costs of suppliers stably, allowing consumers to buy high-quality and cheap products. 

  The "0 mid-platform fee" means that in the process of product selection, listing, and sales, suppliers do not need to pay entry fees, stacking fees, listing fees, promotion fees, and new product fees to KK Group, which allows suppliers to have more security in terms of capital flow, better investment in new product research and development, and effectively guarantees the SKU update frequency of KK Group. 

  In addition, unlike the long account period of traditional supermarkets, the buyout system adopted by KK Group is mainly based on monthly accounts and has a short account period, which further relieves the financial pressure on suppliers. The results show that this new "zero supply" relationship can motivate suppliers to cooperate more actively with KK Group and provide more advantageous cooperation conditions. In addition, due to the joint efforts of KKV, THE COLORIST colorist, and X11 brands under KK Group, more and more brands are willing to launch new products, limited editions, or joint models in KK Group’s stores, which also attracts more brand loyalists and young consumers to pay, thus forming a virtuous circle in the new retail era. 

  Industry insiders believe that KK Group’s optimization of supply chain management is a "win-win" model for the company itself and its suppliers, and this "win-win" zero-supply relationship will ultimately benefit consumers, truly achieving a "zero-supply-consumption" three-win. 

  Technology deeply empowers and improves operational efficiency 

  In order to further enhance operational efficiency, KK Group has also integrated technology and digitalization into the optimization and upgrade of the company’s supply chain management system. 

  Since its establishment, KK Group has attached great importance to the bottom-level driving role of technology. Whether it is KK Pavilion, KKV, THE COLORIST colorist or X11, since the establishment of these brands, the company has made a strategic layout with technology to meet the trendy retail needs of young people "love beauty, love play and love life". 

  In the supply chain system, KK Group has independently developed a number of new "sharp tools" that empower retail consumption by technology, such as the KPOS system that provides services for every key scene of store operation, the KVCM system that visualizes shelf display management, and the WMS system that provides warehouse operation management. Leading technology not only supports the company to analyze a large amount of product sales data, but also effectively assists it to effectively apply digital and intelligent methods in daily operations, thus effectively enhancing every operation link. 

  At the product selection end, KK Group adheres to the "digital product selection mechanism", that is, the listing and removal of products are determined by big data, and the technical team behind it provides all-round support and guarantee for each single product, avoiding human intervention caused by subjective preferences and interests that may occur in the procurement process. On this basis, KK Group is able to achieve accurate selection and efficient update iteration of high-quality products. 

  It is understood that KK Group adopts the "last elimination system" for its products, and the product update rate is as high as 30% -50%. The limited physical space continues to generate infinite vitality, and consumers can also have a better shopping experience, which brings about higher conversions. It is not difficult to see that KK Group’s early strategic investment in IT systems has begun to bear fruit, and the scale effect of KK Group is gradually emerging. 

  With cost reduction and efficiency increase, the company’s profitability continues to improve 

  For retail companies, maintaining optimum inventory levels is crucial to company stability, and KK Group cannot escape this. Thanks to the efficient supply chain system and logistics system, KK Group’s inventory turnover days have been significantly optimized. 

  According to the data disclosed in the prospectus, as of June 30, 2021, the total inventory of KK Group reached 985 million yuan. This seemingly huge number is expected to be turned around in a few months through the company’s efficient supply chain system. 

  At present, the company’s inventory turnover days have dropped from 301 days in 2019 to 150 days in the first half of 2021. At the same time, the proportion of the company’s inventory to the total value of current assets has also dropped from 52.0% in 2019 to 34.6% in the first half of 2021. Among them, the increase in supply chain cost reduction has brought about an improvement in inventory turnover. 

  It is worth mentioning that some people in the consumer retail industry believe that, in light of KK Group’s emphasis on product display and space aesthetics, the company’s large inventory may be scattered among major stores, rather than centralized storage in warehouses. 

  As of the end of October 2021, KK Group has 680 stores. According to this simple calculation, the inventory value scattered in each store is less than 1.50 million yuan, which is normal for offline stores with more than 20,000 SKUs. 

  In fact, the benefits of an optimized supply chain management system are obvious to all. 

  Its prospectus shows that in 2018-2020, KK Group’s GMV was 188 million yuan, 652 million yuan, 2.254 billion yuan, and the growth trend was obvious, while the GMV in the first half of 2021 almost caught up with the whole year of 2020, achieving 2.213 billion yuan; in addition, in 2020, KK Group adjusted ebitda to positive, achieving 68 million yuan in 2020 and 216 million yuan in the first half of 2021. 

  It is worth noting that KK Group’s gross profit margin has also improved significantly, from 27.1% in 2019 to 30.4% in 2020, and further to 35.9% in the first half of 2021. 

  In terms of sub-brands, since the successful incubation of KKV and THE COLORIST colorists in 2019, the operating profit and EBITDA have always been positive. Among them, KKV has performed well. In the first half of 2021, KKV achieved an operating profit of 140 million yuan, EBITDA reached 235.70 million yuan, and the EBITDA rate rose to 22.5% from 18.2% in the same period last year. These are mainly due to KK’s continuous optimization of the procurement process. Some third-party institutions believe that the GMV of KK Group is expected to reach 4.50 billion in 2021. 

  In the opinion of industry experts, after the overall expansion of KK Group in recent years, its performance has not been dragged down, but has instead shown a healthy development trend. Regarding the IPO progress that the media has paid more attention to, Hong Kong capital markets professionals believe that due to the current semi-annual report data statistics node, the update of KK Group’s prospectus has been delayed. However, on the basis of the company’s stable performance growth, the continued optimism of the large consumer track, and the gradual recovery of the Hong Kong stock market in the second half of this year, I believe that KK Group will update the prospectus as soon as possible and continue its journey to listing.

The 10th anniversary of the establishment of naval carrier aviation unit, Naval Aviation University became the cradle of air and sea eagles.

CCTV News:Carrier-based aircraft is the main combat equipment of aircraft carrier, and carrier-based aviation unit is the core of aircraft carrier combat effectiveness construction. Tomorrow (May 10th) is the 10th anniversary of the establishment of the naval carrier-based aviation unit. At the beginning of today’s program, please follow the reporter and go to the only military school in the whole army that is responsible for training carrier-based aviation personnel — — Take a look at the Naval Aviation University.

What you see now is the daily picture of this university. It is a training base for aviation and coastal defense personnel, and has trained tens of thousands of technical personnel such as flight, command and staff officers. It is one of the 13 key construction colleges of the whole army. Soaring in the sky and dreaming of deep blue, we followed the reporter’s lens into the Naval Aviation University.

This is a base of Naval Aviation University. Among the flight students who graduate every year, only a few students meet the strict requirements for flying carrier-based fighters. Not long ago, a new group of flight students successfully completed the J -15 solo mission, adding new strength to the carrier-based fighter team. Next, they will carry out the qualification certification on the aircraft carrier and fly to the farther deep blue.

As an institution for training naval aviation talents, air crews with special aircraft are also the key direction in the talent training system of the school.

CCTV reporter Zhang Yixiao:Here is an airport of Naval Aviation University. Behind me is the air police 200H early warning aircraft. It can be seen that the graduating air combat cadets are about to practice in the cabin. By being familiar with the equipment operation process, they can improve their operation skills and enhance their post-holding ability in the future.

Air combat personnel are an important part of air information combat forces, and they mainly complete various reconnaissance and early warning tasks through airborne detection equipment.

Practice in learning, learn in practice. In the teaching system of Naval Aviation University, a number of clubs have been set up, and students can learn more about flight and understand it by making model airplanes and crossing planes themselves.

CCTV reporter Zhang Yixiao:At this moment, the flight students beside me are going to use these model planes they made to carry out flight tests. Although we seem to be just flying, they have applied the knowledge of flight principle, aircraft structure and system they learned in class in the design and production of these model planes.

Yang Zijiang, faculty member of Aviation Foundation College of Naval Aviation University:By making an airplane (model airplane), students’ cognition of the whole airplane will be raised to a higher level, and by flying an airplane, students’ cognition of flying will also be raised to a higher level. Compared with our college, the average success rate of all flight students is 20% higher than the average level of those who have participated in model airplane training.

Teach for war and walk for war. In addition to consolidating theoretical teaching, there are courses such as flight simulator and pilot three-degree-of-freedom rotation training in the syllabus.

Flight students will bring what they can’t understand in the theoretical class to the simulated flight classroom for simulated flight training, and solve the problem through practical operation.

In order to speed up the completion of the transformation task and build a perfect talent ability model, Naval Aviation University has formulated a talent training program for carrier-based fighters, helicopter pilots, air combat personnel, etc., which has delivered tens of thousands of outstanding talents to the navy and become the cradle for sea and air eagles to dream of the blue sky.

Artificial intelligence or have one’s own will Hawking’s last book is full of worries about the future.

  Science and Technology Daily reporter Liu Xia

  On October 16th, the last book of the late famous physicist Stephen Hawking, A Brief Answer to Major Issues, was published, which involved his thinking on the biggest problems facing science and society, including "Will human beings survive on the earth all the time?" (Probably not) ""Is time travel possible? (still can’t rule out the possibility) ",etc.; There are also the final predictions on the most serious threats facing the earth, the "Superman" population, whether there is intelligent life in outer space and how to develop space colonies. These predictions are full of Hawking’s deep worries about the future of mankind.

  According to a report on the US Shi Ying Finance website on the 15th, Hawking said in his book that artificial intelligence may form its own will in the future — — The will that conflicts with us human beings; A "superman" population that uses genetic engineering to surpass its peers will dominate, which may destroy mankind.

  Human evolution has no boundaries.

  Shi Ying Finance website reported on the 16th that throughout the book, Hawking was pessimistic about the future of mankind on the earth. Political instability, climate change and the possibility of nuclear violence make the sustainability of human development on earth unsustainable.

  Hawking believes that the number one threat facing the earth is asteroid collision, similar to the collision that led to the extinction of dinosaurs. He wrote: "However, we can’t defend ourselves."

  The more immediate threat is climate change. "Rising ocean temperatures will melt the ice cap and release a lot of carbon dioxide. The double effect may cause our climate to be similar to Venus, and the temperature will reach 250 C. "

  Hawking believes that nuclear fusion power generation will give us clean energy, no pollution and no global warming.

  In the chapter "How do we shape the future", Hawking disagrees with the idea that human beings are at the peak of evolution. In his view, human evolution and efforts have no boundaries.

  He believes that human beings have two choices in the future: first, explore other alternative planets that can be inhabited by human beings. He advocates space colonization in more than one chapter, including colonizing the moon, Mars or interstellar planets; Secondly, actively use artificial intelligence to improve our world.

  Artificial intelligence will form its own will.

  Hawking also emphasized the importance of standardizing the management of artificial intelligence. He pointed out that "in the future, artificial intelligence may form its own will, which conflicts with our human will." The possible automatic arms race should be stopped. If there is a weapons crash like the flash crash in the stock market in 2010, the consequences will be unimaginable.

  He wrote in the book: "For human beings, the emergence of super-intelligent artificial intelligence is either a blessing or a curse, and the second must be one of them. The real danger of artificial intelligence lies not in malice, but in ability. Super intelligent artificial intelligence will eventually be extremely good at achieving goals. If these goals are not consistent with our goals, then we are in trouble. "

  He advocates that policy makers, the technology industry and the general public should seriously study the moral impact of artificial intelligence.

  The "Superman" population will dominate.

  According to the British "Sunday Times" reported on the 15th, Hawking’s biggest worry is that the rich will soon be able to edit their own and their children’s DNA to improve their memory and disease immunity.

  Shi Ying Finance website reported that Hawking believed that at some point in the next 1000 years, nuclear war or environmental disaster would "seriously destroy the earth". By then, "our talented race may have found a way to get rid of the shackles of the earth, so it can overcome the disaster." However, other species on earth may not be able to do it.

  These people who have successfully escaped from the earth are probably new "Superman". They use gene editing techniques such as CRISPR (commonly known as "gene scissors") to surpass others. Scientists can use such gene editing techniques to repair harmful genes and add other genes.

  Hawking also said that even if politicians try to ban this practice by law, these people will improve their memory, disease resistance and life expectancy regardless of the legal constraints prohibiting genetic engineering, which will pose a crisis to the rest of the world.

  In the selected section published in the Sunday Times on the 15th, Hawking said: "I am sure that people will find ways to modify their intelligence and talent within this century. Politicians may make laws prohibiting human genetic engineering, but there are certainly people who can’t resist improving human characteristics — — Such as memory, disease resistance and longevity. "

  He pointed out: "Once this kind of superman appears, those who fail to improve themselves through genetic modification will encounter major political problems. They are unable to compete, and may become dispensable or even extinct. However, in the future, there will be a self-designed human being who is accelerating and improving. If this human race can constantly try to redesign itself, it is likely to spread and colonize other planets and planets. "

  Hawking admits that there are various opinions about why intelligent life has not been discovered or intelligent life has not visited the earth. He is cautiously optimistic about this, but his preferred explanation is that human beings have "ignored" the form of intelligent life in outer space.

  (Science and Technology Daily, Beijing, October 17th)

Investigation on mobile phone surfing of college students: over 40% surf the Internet for more than 5 hours every day.

  China Youth Network, Beijing, October 21st "It’s not that I’m not sleepy. I just want to wait. As for what? I don’t know, I just want to wait. "This passage has become the mantra of many college students. And this "wait", most of them are brushing their mobile phones. So, how long do college students surf the Internet on their mobile phones every day? What are you mainly doing? Are you worried about network security?

  Recently, China Youth Network Campus News Agency conducted a questionnaire survey among 1,220 college students around the country. The results show that more than 40% of students surf the Internet for more than 5 hours every day, and more than 80% of students surf the Internet mainly for social chat. Most students think that surfing the Internet by mobile phone makes mobile payment, information acquisition and social communication more convenient. Nearly 90% of students are worried about network security, and most students expect the network speed of 5G to be faster and more convenient for study and life.

  The picture shows the proportion of college students’ mobile phone surfing time every day. China Youth Network reporter Li Huaxi cartography

  Over 40% of students surf the Internet on their mobile phones for more than 5 hours every day, and over 80% of students mainly chat socially.

  Wu Lin, a student of Sichuan Agricultural University, uses his mobile phone to surf the Internet every day for about 6 hours. "It has become my habit to brush my mobile phone when I wake up every day. Now surfing the Internet is a daily need. I feel that I don’t have much to do except surfing the Internet. I like chatting, watching news and playing games online when I have no classes. I can’t stop playing my mobile phone."

  Like Wu Lin, there are not a few college students who have the habit of surfing the Internet for a long time. According to a survey conducted by a reporter from China Youth Network, 41.56% of college students spend more than five hours on their mobile phones every day. When surfing the Internet, 83.93% of the students mainly chat socially, followed by consulting materials and listening to songs, accounting for 62.46% and 58.61% respectively.

  "I am deeply dependent on the Internet, partly because of my shortcomings in social skills." Joline, a student of Northwest Normal University, told reporters that she is introverted and unwilling to communicate face to face. She can express herself more directly and accurately online. She will keep a diary on the trumpet in Weibo, and what she is embarrassed to say in person can be expressed by WeChat. "Besides, I can also tell my story with strangers through Zhihu."

  The picture shows the proportion of college students’ mobile phone surfing behavior. China Youth Network reporter Li Huaxi cartography

  Mobile Internet access makes mobile payment, information acquisition and social communication more convenient.

  So what convenience does mobile Internet access bring to college students’ daily life? In the survey, China Youth Network reporter found that most of the students interviewed thought that surfing the Internet by mobile phone made mobile payment, information acquisition and social communication more convenient, accounting for 90.25%, 80.49% and 78.52% respectively.

  "Now you don’t have to bring cash when you go shopping. It’s really convenient to pay by QR code." Zhao Tingting, a student at Guilin University of Technology, said that it used to be troublesome to use cash for shopping. Now, with mobile payment, the mobile phone can scan the code to pay, which not only saves a lot of time, but also brings great convenience to life.

  Chen Yixin, a student at Chengdu University of Information Science and Technology, told reporters that after going to college, she often chats with her parents online. "Sometimes I use WeChat videos, and it is very convenient to contact them anytime and anywhere even if I don’t go home." She also said that now she mainly watches news through Weibo and news apps, so she can keep abreast of the latest hot events, which is very fast.

  The picture shows the proportion of convenience brought by mobile internet access to life. China Youth Network reporter Li Huaxi cartography

  Nearly 90% are worried about network security, and most students expect 5G network speed to be faster and study and life more convenient.

  Xie Wenyi is a student of Shandong University of Technology, and he attaches great importance to network security. "I have learned that bank card deposits may be stolen by clicking on the link to help bargain, which makes me very worried about network security." In order to avoid the disclosure of personal information, he will be more cautious when registering his account. He told reporters that many friends around him have fallen into the trap of online fraud, so they must strengthen their prevention.

  The results of this survey show that 88.03% of the respondents are as worried about network security as Xie Wenyi. In addition to network security issues, 5G has also become a hot topic this year. When talking about the expectation of the 5G era, 87.38% of the respondents hope that 5G will make the network speed faster, and secondly, it will make the study and life more convenient and the video quality clearer, accounting for 86.64% and 71.31% respectively.

  Hong Yumin studied in Hope College of Southwest Jiaotong University, and she needed to surf the Internet frequently for professional reasons. When talking about 5G, she said that 5G is a "good medicine" for architectural drawing. It doesn’t take a long time to download the software installation package, which greatly shortens the students’ drawing time. Compared with 4G, 5G is more stable and not easy to get stuck. When drawing, you don’t have to worry about network failure, which can guarantee the smooth birth of the work.

  The picture shows the proportion of college students’ expectations for 5 G. China Youth Network reporter Li Huaxi cartography

  Teachers in colleges and universities suggest that Internet surfing time should be arranged reasonably and network security protection should be done well.

  Yang Mei, an administrative teacher at School of Information Engineering, Sichuan Agricultural University, believes that college students spend more time on the Internet than study time. Although this has become a common phenomenon, students are advised to pay attention to study. "At present, many students will become very anxious when they leave their mobile phones. In fact, students will make good use of the Internet to arrange their free time and pay more attention to WeChat official account and online classes related to their majors or employment, which will be helpful for future postgraduate entrance examinations or job hunting."

  "Don’t easily click on pop-up web pages or unreliable advertising links shared by others, which are likely to contain viruses. When surfing the Internet in Internet cafes outside, don’t connect your USB flash drive, mobile phone and other things containing important personal information to your computer, which is easy to cause network security problems." At the same time, as the class teacher of the students, Yang Mei recommends students with poor self-control to use professional APP for entertainment time management, hoping that students can concentrate on their studies and focus on their studies.

  This semester, Fan Yingjie, a teacher of Marxism College of Chengdu University, asked students to strengthen self-discipline, stay away from the internet at least half a day to one day in class and at ordinary times, and learn to control themselves. She hopes that through these ways, students can understand that instead of constantly paying attention to other people’s lives through mobile phones, it is better to live their own lives and do their own things in a down-to-earth manner.

  Fan Yingjie also mentioned that regarding the issue of network security, the relevant state departments released a lot of warning case materials when promoting network security, hoping that students would learn more about it. "When using mobile phones or computers to surf the Internet, students should not randomly click unfamiliar links to avoid revealing personal information on the Internet, and try their best to do network security protection." (At the request of the interviewee, the names of the students in this article are all pseudonyms.)

  (Reporter Li Huaxi correspondent Yang Qing)

Important notice! Working hours have changed.

Unconsciously

The Spring Festival holiday is coming to an end.

While everyone is enjoying the holiday life.

Don’t forget.

February 18th is a working day.

According to the general office of the State Council.

Notice on Some Holiday Arrangements in 2024

The Spring Festival is on holiday from February 10th to 17th.

A total of 8 days

February 18th (Sunday)

Going to work!

Friends who usually set the working day alarm clock.

Don’t forget to set the alarm clock.

In case of being late

Original title: "Important notice! Working hours have changed.

Read the original text

(This article is from The Paper, please download the "The Paper" APP for more original information)

The pattern of real estate supply will change next year. Will the inflection point of housing prices become a hot spot?



    The latest issue of China News Network News? Wang Newsweek reported that the rising house prices in 2007 finally faltered towards the end of the year: Beijing, Shenzhen, Shanghai and other cities with soaring house prices began to see different degrees of decline in transaction volume, and the discussion about whether the house prices have turned an inflection point under a series of macro-control began to be lively.


    The article writes that the real estate market in 2008 will face two major problems: First, since the housing system reform in 1998, the real estate market in China has experienced an upward trend for nearly ten years. Under the accumulation of years of regulatory policies, will 2008 be the turning point of adjustment?


    Secondly, regarding how to solve the real estate problem in China, Premier Wen said in a speech in Singapore that under the premise of strictly observing the "red line" of 1.8 billion mu of cultivated land, three ways should be adopted to expand supply: low-rent housing, affordable housing and market regulation. Some media interpret this policy as "it is possible to free most urban residents from high housing prices". The Ministry of Construction, the competent department, has also said that in the next three years, the investment in low-rent housing and affordable housing will double. If so, it will completely change the current supply pattern of the real estate market.


    According to the article, from a realistic point of view, it is far from enough to change the supply pattern of the real estate market in the near future in terms of affordable housing with the current investment quota accounting for less than 5% of the total investment in residential and commercial housing. It is a necessary condition to make clear the details of the actual operation of low-rent housing and affordable housing, such as the source of funds, supply methods and supply targets, to ensure that the limited funds of the country are used in the cutting edge. Therefore, Bao Zonghua, executive vice president of China Real Estate and Housing Research Association, believes that the construction and improvement of the housing system will be the theme in 2008.


    Judging from the current situation in China, on the one hand, the national income level is not up to the level that most people can realize market-oriented housing purchase; On the other hand, it is impossible for the financial resources of the government to meet the desire of all housing difficulties groups to realize government security in a short period of time. Therefore, for the future housing system in China, experts believe that it will be composed of three parts, that is, some people will completely solve the housing problem by the government, some will solve it by market means, and the middle part will be combined with market and government subsidies, thus covering all the people in China’s housing system and security system.


    Bao Zonghua pointed out that at present, it has reached a consensus that housing security is the responsibility of the government, and the key is how to do it. In his view, at this stage, we should focus on the middle, low and lowest income people and expand the coverage of low-rent housing, affordable housing and other affordable housing. At the same time, the government should strictly control its Taoxing, housing prices and supply targets.


    First, vigorously develop low-rent housing. The proportion of low-rent housing in housing stock in the world generally does not exceed 5%. However, China’s current situation is far below this ratio, so in 2008, China will accelerate the pace of improving the low-rent housing system.


    The second is to vigorously build affordable housing. Starting from 2008, the government should strive to increase the supply of low-priced and medium-sized ordinary commodity housing.


    Third, high-grade housing adopts market regulation. The high-grade housing market will mainly rely on market regulation, but we must proceed from China’s national conditions of large population and small land and insufficient economic strength, vigorously curb the excessive expansion of housing investment demand, and rationally regulate the proportion of large-scale high-priced housing construction. Bao Zonghua suggested charging high land transfer fee, high real estate development tax and high property tax for the construction and purchase of large-sized high-priced housing in the future, and "increasing" tax on the sale and purchase of second homes. By collecting "high" property tax, it not only increases government revenue, but also inhibits investment demand, reduces the proportion of large-sized high-priced housing construction, and finally realizes the stability of housing prices.

Editor: Liu Li