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Successful cases of Jiangxi Mingdao Consulting

Introduction to the editor

In today’s highly competitive market environment, the success of enterprises often depends on their management level and the effectiveness of strategic decisions. Jiangxi Mingdao Consulting, as a professional management consulting agency, has helped many enterprises achieve transformation and upgrading with its rich industry experience and professional team. This site will introduce in detail the successful practices and lessons of Jiangxi Mingdao Consulting in different fields through several successful cases.

Case 1: Optimization of the production process of a manufacturing enterprise

1. Background

A manufacturing company has been facing the problem of low production efficiency and high cost for a long time, resulting in a decline in market competitiveness and serious loss of customers. The management of the company decided to seek the help of an external consulting firm to optimize the production process and improve the overall efficiency.

2. Consultation process

Jiangxi Mingdao Consulting team first conducted a comprehensive investigation and analysis of the company’s production process to identify major efficiency bottlenecks. Through in-depth communication with the company’s management and employees, Mingdao Consulting proposed a series of optimization plans, including:

Introduce lean production concepts to reduce waste.

Redesign the production line layout to improve operational efficiency.

Implement staff training to improve operational skills.

3. Implementation effect

After three months of implementation, the company’s production efficiency increased by 30% and production costs were reduced by 20%. Customer satisfaction was significantly improved, and the company’s market share also increased. This case shows that through scientific management consulting, companies can achieve qualitative changes in production efficiency.

III. Case 2: The market strategy adjustment of a retail enterprise

1. Background

With the rise of e-commerce, a traditional retail enterprise is facing the severe challenge of declining sales. In order to adapt to market changes, the enterprise decided to seek the assistance of a professional consulting firm to formulate a new market strategy.

2. Consultation process

Jiangxi Mingdao Consulting conducted an in-depth analysis of the company’s market environment and identified the following key issues:

Consumer preferences have changed, and online shopping has gradually become mainstream.

Competitors’ pricing strategies are more flexible.

Based on the above analysis, Mingdao Consulting has put forward the following market strategy adjustment suggestions:

Strengthen online sales channels and establish an e-commerce platform.

Accurately target customers through big data analytics.

Optimize the layout of offline stores to enhance the shopping experience.

3. Implementation effect

After six months of adjustment, the company’s online sales increased by 150%, and the traffic counting of offline stores also rebounded. Overall sales grew against the trend, and the company regained its market competitiveness. This case shows the importance of flexible adjustment strategies in a rapidly changing market environment.

IV. Case 3: The rebranding of an educational institution

1. Background

An educational institution has a certain reputation in the industry, but with the intensification of competition, the brand perception gradually blurred and the market influence declined. In order to enhance the brand value, the institution decided to rebrand.

2. Consultation process

Through market survey and consumer interviews, Jiangxi Mingdao Consulting Team found that the agency has obvious deficiencies in brand positioning and market communication. To this end, the consulting team developed the following brand rebranding plan:

Clear brand positioning and highlight educational characteristics.

Design a brand new logo and promotional materials.

Develop an integrated marketing communication plan to enhance brand exposure through multiple channels.

3. Implementation effect

After the rebranding, the organization’s visibility and reputation were significantly improved, and the number of enrollment increased by 40%. The brand value of the organization was also effectively enhanced, successfully attracting more quality partners. This case highlights the importance of brand management in the long-term development of enterprises.

Case 4: Organizational change in a technology company

1. Background

With the rapid changes in the market, a technology company found that the original organizational structure and management model could no longer adapt to the new business needs, resulting in poor internal communication and slow decision-making. The company decided to make organizational changes to improve its ability to respond to the market.

2. Consultation process

The Jiangxi Mingdao consulting team made the following recommendations for change through internal interviews and process evaluations:

Redesign the organizational structure and establish a cross-functional project team.

Introduce agile management model to shorten the decision-making chain.

Strengthen cross-departmental collaboration and communication among employees.

3. Implementation effect

After the implementation of the change, the company’s project delivery cycle was shortened by 30%, and the response time to customer feedback was greatly improved. Employees’ work motivation and satisfaction have also increased, and the overall team collaboration is smoother. This case shows that organizational change is an important means for enterprises to adapt to market changes and enhance their competitiveness.

Case 5: Risk management improvement of a real estate company

1. Background

A real estate company in the process of rapid expansion, faced with the problem of poor project risk control, resulting in financial losses and reputation damage. The company decided to introduce professional consulting agencies to improve risk management capabilities.

2. Consultation process

Jiangxi Mingdao Consulting team first conducted a comprehensive assessment of the company’s risk management status and identified key risk points. Subsequently, the following risk management improvement plans were proposed:

Establish a sound risk management system and clarify the division of responsibilities.

Introduce threat and risk assessment tools to monitor risk throughout the project lifecycle.

Carry out risk management training for all employees to raise their awareness of risk.

3. Implementation effect

After a year of hard work, the company’s risk management system was initially formed, and the risk loss rate of the project was reduced by 50%. The company’s reputation and market trust were also effectively improved. This case emphasizes the importance of risk management in the sustainable development of enterprises.

VII. Small series summary

Through the above successful cases, Jiangxi Mingdao Consulting has demonstrated its professional ability and rich experience in different fields. Whether it is production process optimization, market strategy adjustment, or brand remodeling, organizational change and risk management improvement, Mingdao Consulting can provide practical and effective solutions for enterprises. These cases not only provide reference for the transformation and upgrading of enterprises, but also provide valuable experience for the development of the management consulting industry.

In the future, Jiangxi Mingdao Consulting will continue to adhere to the service concept of "professional, efficient and innovative" to help more enterprises meet challenges, seize opportunities and achieve sustainable development.

On December 26, at the AITO Authorized User Center, many consumers came to inquire about the AITO M9.

This group of pictures was taken by reporter Zhang Jinhui/Visual Chongqing

On December 26th, the AITO M9, the flagship SUV of Panorama Smart in cooperation with Huawei, was officially launched. This car is not only the integration of the most cutting-edge technology and the latest manufacturing technology in the automotive industry, but also once again enhances the outside world’s perception of "made in Chongqing" cars.

A few days ago, the National Bureau of Statistics also released the latest data. From January to November this year, Chongqing’s automobile production reached 2.0742 million, an increase of 10% year-on-year, ranking second in the country.

In the past decade or so, Chongqing’s automobile production ranking in the country has fluctuated a lot, and now Chongqing has once again ranked among the top in the country. The industry is more concerned about the specific path to promote the development of the local industry. After all, through the "impulse" of mid- and low-end products, it is no longer sustainable in the current automobile industry pattern.

Chongqing’s automobile industry has performed well this year. Is there really a "new driving force" behind it? From the emergence of the AITO M9 and the performance of major automobile companies in Chongqing this year, we can see that Chongqing’s automobile industry is shifting from "quantitative change" to "qualitative change".

The price of high-end cars has reached 500,000 to 600,000 yuan

Since the second half of this year, the AITO series jointly designed by Cyrus Automobile and Huawei has continued to sell well. Sales of Cyrus new energy vehicles reached 23,834 units in November, an increase of 104.39% year-on-year; of which, sales of Cyrus brand reached 20,318 units, an increase of 145.92% year-on-year, both setting new highs.

Changan Automobile is still awesome. In November, its own brand new energy vehicle sales exceeded 50,000, an increase of 52.73% year-on-year.

The reporter learned from the Municipal Economic and Information Commission that Chongqing’s new energy vehicle production in November increased by more than 100% year-on-year, far exceeding the year-on-year growth rate of the total local automobile production during the same period.

The relevant person in charge of the Municipal Economic and Information Commission said that since 2023, Chongqing’s new energy vehicles have contributed 85% to the growth of the city’s automobile industry.

"Behind the recent outstanding performance of Chongqing Automobile, it is obviously driven by high-end models, especially high-end intelligent networked new energy models." A relevant person from the Chongqing Automobile Business Association said that a large number of high-value and high-product "Chongqing-made" models have emerged this year, with more intensity and frequency than ever before.

The reporter combed the hot-selling new energy models launched in "Chongqing" this year and found that they are basically mid-to-high-end cars. For example, Changan’s dark blue S7 model, the price is between 150,000 and 220,000 yuan, and the price of Avita 11 Hongmeng Edition and Avita 12 is in the range of 300,000 to 400,000 yuan. Cyrus AITO asked the world M5 smart driving version and AITO asked the world new M7 price coverage 250,000 to 400,000 yuan. AITO asked the world M9 pushed the price to more than 500,000 to 600,000 yuan.

New path makes "Chongqing-made" cars popular

In the opinion of industry insiders, the above changes in Chongqing’s automobile industry are influenced by a profound value logic.

On December 16, at the special event of the Chongqing International Talent Exchange Conference, Li Keqiang, academician of the Chinese Academy of Engineering and chief scientist of the Intelligent Connected Vehicle Innovation Center of Chongqing Western Science City, pointed out that the automobile industry is ushering in the 4.0 era, and the new generation of automobiles will reflect the characteristics of low-carbon energy, electric power, intelligent body, and transportation network. The original automobile development model, production model, and ecology will change.

Dong Yang, vice-chairperson of the China Electric Vehicle 100 People’s Association, believes that people’s "quality view" of cars has changed now, from focusing on quality to focusing on experience. "In the past, when a new car was released and 20 new technologies were listed, it was great that the user could use one or two. Each car also came with a thick manual, and no one read it. This is not acceptable. Car companies must directly face the user, understand what the user needs, and let the user make full use of the new technology."

"The first is to’change ‘and strive to develop new technologies in the direction of intelligent networking and new energy; the second is to’get close’ to the needs of users, shorten the distance with users and reduce communication costs," said the relevant person in charge of Changan Automobile.

Looking at the many new products launched by Chongqing automakers such as Changan and Sailis this year, we can see that they all adhere to the above concept.

Take the M9 as an example. By using innovative owl-enhanced steering technology, the turning radius of a 5.2-meter-long "big guy" is smaller than that of a mid-sized sedan. In addition, the model also has dual lights 2.60 million pixel-refined lighting. When the high beam shines on the opposite vehicle, it automatically leaves a dark area, which does not affect the opposite car and maintains the high beam.

Qu Yunchao, a market watcher, believes that some of these technologies and features are targeted to solve users’ pain points, while others are to open up new experiences for users that are interesting or comfortable. The popularity of "made in Chongqing" cars this year is a testament to the success of this path.

Towards global first-class still requires "one step at a time"

In the new year, how can Chongqing’s auto industry anchor the new development coordinates? "The global auto industry landscape is undergoing subversive changes." Zhu Huarong, chairperson of Changan Automobile, said that from the six-point world of Europe, America, Japan, Germany and South Korea, to today’s Chinese brands sitting on half of the country, Chinese brands lead the world in terms of styling, new energy and intelligence, the scale advantage is further highlighted, and the competitive advantage of changing lanes is more obvious.

But it also raises a new set of problems.

For example, the future development of China’s automobile industry will no longer be promoted by learning from the outside world. For example, the boundary reconstruction of the division of labor for vehicles and parts, and the rapid conversion of new energy vehicle batteries from shortage to overcapacity.

To solve these problems, in order to become a global first-class, the road can only be walked out "one step at a time". Zhu Huarong believes that by accelerating the layout of products and production capacity, strengthening the layout of branding, strengthening the layout of marketing services, accelerating the improvement of the layout of the market, and strengthening the layout of organizational talents "five steps", to meet the various challenges of the critical period of the industry track transition.

Zhang Xinghai, chairperson (founder) of Sailis Automobile, said that the local area is currently in the best opportunity to develop new energy intelligent networked vehicles. Only a strong supply chain can support strong vehicle enterprises, and the industry should further expand open cooperation and let professional people do professional things in order to create high-quality products that meet user requests.

The relevant person of the Municipal Economic and Information Commission said that Chongqing strives to basically form a new ecosystem of intelligent networked new energy vehicle industry by 2025, and to build a world-class intelligent networked new energy vehicle industry cluster by 2030, with the industrial scale reaching the world’s first-class level.

Therefore, Chongqing will continue to expand its industrial scale, accelerate the completion and commissioning of new projects, the launch of new products, and the development and growth of new brands, and work together to build a trillion-level intelligent networked new energy vehicle industry cluster; adhere to the coordination of the whole zero, implement major projects to attract investment, cultivate and upgrade key enterprises, transform and upgrade traditional enterprises, and promote the integration of intelligent networked new energy vehicles to strengthen the chain and extend the chain; strengthen the integrated layout of charging, storage and cloud infrastructure, and promote the integration of energy networks, transportation networks, and information networks. Strive to form a moderately advanced, rational, intelligent and efficient charging and swapping service system; accelerate the networking transformation of existing roads, and create the most unique and rich vehicle-road collaborative experience scene in the country.

The first "made in Chongqing" panoramic smart flagship SUV

AITO asked the world about the M9 listing

On December 26, at the Wenjie M9 and Huawei’s winter full-scene conference, the first "Chongqing-made" panoramic smart flagship SUV AITO Wenjie M9 was officially launched, and a total of 4 models were launched in two power versions of extended range and pure electric, priced at 469,800-569,800 yuan.

AITO Q Jie M9 is jointly launched by Chongqing car company Sailis and Huawei, using a new family design "Kunpeng wing", the new car applies a number of cutting-edge innovative technologies, such as "super Xuanwu body", using the world’s largest one-piece die-casting molding, lightweight coefficient is significantly higher than the same level of models, the whole car 12 also uses 2 quadrillion nuclear submarine-class hot car steel.

The Huawei Tuling intelligent chassis equipped with the AITO M9 is equipped with intelligent closed air spring and CDC variable damping shock absorber as standard, which supports height adjustment of 5-speed cars. It also has a full-scene intelligent road preview system and adaptive active suspension, which can smoothly cope with different road conditions.

In terms of power, the AITO Qinjie M9 extended range version is equipped with a drive system composed of a 1.5T engine and front and rear motors, with a zero-hundred acceleration of 4.9 seconds and a pure electric version with a zero-hundred acceleration of 4.3 seconds. The extended range version has a fuel consumption of as low as 6.9 liters per 100 kilometers, a comprehensive battery life of up to 1402 kilometers, and a pure electric battery life of up to 275 kilometers. The pure electric version is equipped with Huawei’s "Giant Whale" 800-volt high-voltage battery platform, which can achieve a 5-minute charge and a battery life of 150 kilometers, and the overall battery life reaches 630 kilometers.

In terms of autonomous driving, M9 adopts Huawei ADS2.0 high-end intelligent driving, equipped with industry-leading 192-line lidar, with high definition cameras, millimeter wave radar, etc., to support national high-speed, urban expressways and urban intelligent driving.

AITO Qinjie M9 is expected to be delivered in batches on February 26 next year. The relevant person in charge of Cyrus said that the company has built a world-leading super smart factory in Chongqing, with intelligent manufacturing equipment that integrates advanced technologies such as AR vision and big data. Key processes are 100% automated, and a new car can be rolled off the assembly line every 30 seconds, with the highest production efficiency in the world.

On April 25th, Cyrus Automobile debuted at the 2024 (18th) Beijing International Automobile Exhibition. All AITO products and the latest technological achievements of Cyrus were unveiled together. On the same day, Cyrus Automobile also held a technology innovation strategy sharing meeting, sharing the content of Cyrus Mofang and AITO Intelligent Driving Index.

Zhang Xinghai, chairperson of Cyrus Group, said that Cyrus follows the development logic of "two focuses and one cooperation": user-centric, focusing on software-defined vehicles, and fully cooperating with Huawei’s cross-border automotive business. In the future, Cyrus will deepen cooperation with Huawei and strengthen cooperation with other ecological partners to provide users with a full life cycle experience.

Event site. Photo courtesy of Cyrus

This year’s auto show, the Sailis booth showcased products, technologies, services and other aspects in an all-round way. Among them, Sailis Mofang, a new generation of all-in-one super extension assembly, a high-integrated electric drive seven-in-one assembly, and AITO M9 integrated die-casting body were showcased.

At the scene, AITO asked the world M9 light and shadow space attracted many viewers to stop and experience with its Karaoke function of projecting lyrics through headlights.

In February this year, AITO asked the world M9 started delivery. At the technology innovation strategy sharing meeting, many AITO asked the world M9 owner representatives came to the scene to share their car experience. As of now, the scale of AITO asked the world car users has approached 300,000.

At the sharing meeting, He Liyang, President of Cyrus Automobile, released the latest AITO Q & A Smart Driving Index. The index shows that the accumulated mileage of AITO Q & A smart driving models exceeds 480 million kilometers, of which the accumulated mileage of smart driving reaches 135 million kilometers. In addition, the proportion of AITO Q & A M9 intelligent parking DAU reached 68%, and intelligent driving has become an important reason for users to choose AITO Q & A products.

The data also shows that about 72% of the accumulated mileage of AITO users is pure electric mileage, and pure electric driving time accounts for about 85%. This shows that the majority of users travel with pure electric driving.

At the auto show, Cyrus Automobile shared the self-developed Cyrus Mofang, which features "panoramic safety, multi-power, changeable space, and intelligent leadership". The platform integrates industry-leading safety, power, chassis, software and other technologies across domains, aiming to bring users a "easy to drive, easy to use, and super safe" car experience.

Event site. Photo courtesy of Cyrus

In the future, Sailis Automobile will take technological innovation, product quality and service experience as breakthrough points, continue to strengthen new productivity, promote high-quality development and high-level safety, and accelerate the construction of a leading technology-based enterprise. (Ma Chunpeng)

　　After entering the aging society, we pay more and more attention to health, from daily dish matching to scientific exercise, and even the greetings to the elderly are mainly "healthy and long life, good health…". In my opinion, money can be earned in a way, and it is difficult to recover the loss of health of the body. It is not unreasonable for physical and mental health to be rich. How to measure health? Compared with the era when we were sick and went for a checkup, there are now too many devices that can help us grasp various indicators of the body in a timely manner. Timely adjustment of diet and living habits is the best way to prevent signs.

　　It is very necessary to have a sphygmomanometer for the elderly to measure their blood pressure from time to time to understand their own blood pressure, so I have prepared a Mijia intelligent electronic sphygmomanometer for the elderly. This is not the first sphygmomanometer I bought, but the elderly have given high praise after using it for a period of time, mainly for the following reasons:

　　Feeling 1: Patent free clip cuff innovative design, accurate retention of one clip and one stick

　　As soon as I got the Mijia smart electronic sphygmomanometer, I gave it to the elderly and asked about the difference between it and the original sphygmomanometer. The elderly did not know what measurement algorithm, but they praised the Mijia smart electronic sphygmomanometer’s clip-free cuff. Friends who have had a physical examination to measure blood pressure know that whether it is a traditional semi-automatic sphygmomanometer or an automatic sphygmomanometer, it is very troublesome to wear the cuff. It is difficult for one person to fix it in the corresponding area and stick it tightly.

　　The innovative design of Mijia intelligent electronic sphygmomanometer, which has won an industry design patent, solves this pain point very well. Its cuff simulates the measurement method of nurses and adopts a clip design similar to two-hand retention, which improves the detection accuracy and avoids the helplessness of the traditional cuff repeatedly pulling to adjust the fixed position.

　　This can be seen intuitively from the moving picture. When you need to check blood pressure, just clip the untied clip cuff of the Mijia smart electronic sphygmomanometer 1-2 cm on the upper side of the hand and elbow joint, and then gently paste it to complete. It’s really not too simple.

　　The Mijia intelligent electronic sphygmomanometer provides 99 measurement memory data records (supports double use data records), with an accuracy of ± 3mmHg (± 0.4kPa) and a pulse of 40-180 beats/min; the latter is basically the same as the common electronic sphygmomanometer value, while the former has 2-3 times more memory capacity, and can also be transmitted to the Mijia app through Bluetooth for data management. In terms of details, there are obvious cuff orientation prompts and correct wearing instructions on the free clip cuff. Basically, you can read it once, and there is no threshold for use.

　　The correct use steps are: 1. Clip the cuff at 1-2 cm on the upper side of the elbow joint; 2. The palm of the hand is facing up, and the rubber tube is parallel to the palm of the hand (align with the middle finger); 3. Sit and keep the cuff at the same level as the heart; 4. Start testing. Is it difficult? It’s really much simpler than traditional cuffs.

　　Experience 2: Self-developed algorithm model blessing, in-depth analysis of different populations

　　Only after getting started with the Mijia intelligent electronic sphygmomanometer did I understand that intelligence not only means convenience but also more accuracy. Relying on the large clinical database and self-developed algorithm model, the Mijia intelligent electronic sphygmomanometer has undergone multi-band technology accumulation and iteration, and established a multi-dimensional blood pressure model by analyzing the physiological parameters of different populations. It can use different algorithm models according to the characteristics of different heartbeat waveforms.

　　Experience 3: Connect to the Mijia app to easily realize remote viewing and data management

　　Mijia intelligent electronic sphygmomanometer’s tie-free clip cuff accurately retains + self-developed algorithm model, and the double blessing makes me impressed by the intelligence of the sphygmomanometer. At the same time, the data management brought by connecting to the Mijia app allows me to better grasp the trend of blood pressure changes in the elderly, even if I am not around, I can easily understand the blood pressure of the elderly.

　　I think the connection process is basically negligible, because you just need to install the Mijia app and open the Bluetooth search, and then add the device. You can see the label page of the Mijia smart electronic sphygmomanometer provides "recent measurement value, measurement history and morning and evening measurement records", and the whole page is very concise at a glance.

　　In the settings, it supports "volume, unit settings, device information, member management and emptying memory, manually adding data, firmware upgrade", etc. Here I think "manually adding data" is more commonly used, and it can enter the indicators of the elderly’s blood pressure measurement in pharmacies and hospitals, so as to better manage blood pressure data.

　　Mijia intelligent electronic sphygmomanometer currently supports double recording. After adding new members to the Mijia app, each time the measurement data is truthfully allocated, the blood pressure data can be managed in the Mijia app, and the blood pressure changes of the elderly can be intuitively understood through the trend chart. Judging from the connection of the Mijia app, the Mijia intelligent electronic sphygmomanometer is very intuitive to control, consult and manage, and has established a complete blood pressure database for the two elders in the family. If there is a suggestion, it is to hope that the later firmware update can support more members to add. Although everyone can measure, it would be great if a family of six like me could establish a blood pressure database for the elderly and the couple, regardless of the children.

　　Feeling 4: Early morning and evening blood pressure monitoring only available in the industry

　　It turns out that the electronic sphygmomanometer used by the elderly is also a big brand. Although it also has 30 sets of memory functions, I have never heard that the blood pressure in the early morning and evening needs to be specially distinguished. What is the difference? After some understanding of Du Niang, I realized that the original industry thousand yuan machines are equipped with this function, mainly because most people have 10-20% higher blood pressure in the morning than in the evening. In the morning and night, due to the cardiovascular rest and dormancy "standby" state, the human blood pressure is relatively stable and real; but there are also a small number of people who belong to anti-dipper hypertension, that is, the blood pressure in the evening is higher than in the morning. Such people need to adjust the corresponding treatment plan to control blood pressure.

　　The early morning and evening blood pressure detection functions of Mijia intelligent electronic sphygmomanometer can automatically classify early morning/evening according to the detection time, thus better distinguishing cardiovascular and cerebrovascular or anti-dipper hypertension problems.

　　Feeling 5: Like Xiao Ai’s small body, long battery life and voice broadcast

　　Mijia intelligent electronic sphygmomanometer is an upper arm electronic sphygmomanometer using oscilloscope measurement. It is shaped a bit like a generation of Xiao Ai smart speakers, with a 3.7-inch display on the left side of the panel, and memory and start/stop buttons are located on the right side of the panel.

　　On the left side of the fuselage, you can see the "reset button jack, Type-C charging port and cuff jack" of the Mijia smart electronic sphygmomanometer. It is worth mentioning that compared with the dry battery type sphygmomanometer I bought for the elderly before, the Mijia smart electronic sphygmomanometer with a built-in lithium battery performs well in terms of battery life. It measures 180 times under full charge, and can last for one and a half months at a frequency of 1 time in the morning and 4 days in the evening. The standby battery life is up to 90 days.

　　In addition, I think the one-button switch voice playback of Mijia intelligent electronic sphygmomanometer is also very user-friendly. After all, the elderly have poor eyesight, and it is always inconvenient to rely on the screen content alone. Voice broadcast makes up for this aspect very well. It is very convenient to adjust the broadcast volume through the Mijia app.

　　Feeling 6:3.7-inch soft light screen, dark light is still displayed clearly

　　In terms of content display, the 3.7-inch soft light screen of the Mijia intelligent electronic sphygmomanometer reasonably magnifies the core information, allowing the elderly to easily view it even in a dim light environment. Its content layout is very reasonable, and it mainly provides "high and low blood pressure, electricity, blood pressure classification, pulse, memory and action prompts".

　　What makes me satisfied is that the Mijia smart electronic sphygmomanometer has a misoperation prompt function. In addition to providing correct usage videos in the Mijia app, it can also remind me in time by capturing subtle fluctuations in the pressure of the cuff, such as measuring speech, body movement/shaking, and wrong postures that affect the accuracy of measurement such as loose cuffs, effectively preventing mismeasurement.

　　Mijia intelligent electronic sphygmomanometer summary:

　　Overall, the Mijia intelligent electronic sphygmomanometer makes me feel the difference between the intelligent electronic sphygmomanometer and the ordinary electronic sphygmomanometer in terms of ease of use, measurement accuracy and data management. The double blessing of the free clip cuff accurate retention + self-developed algorithm model well explains the thoughtfulness brought by intelligence. It can easily measure blood pressure with one clip and one paste. There is also a clear content display and humanized voice playback. The blood pressure data management and early morning/evening blood pressure monitoring on the Mijia app allow me to intuitively grasp the blood pressure changes of the elderly, which is convenient and intelligent.

　　Home blood pressure monitoring has become an indispensable means to effectively improve the awareness and control rate of hypertension. A good sphygmomanometer should not only be affordable, but also accurate, easy to use and intelligent. Mijia intelligent electronic sphygmomanometer has satisfied me in all aspects.

At present, the most crucial thing is to stop the bleeding of Hengda, stop allowing its risks to accumulate and spread, and at the same time, we should preserve good evidence to lay a good foundation for future accountability through the rule of law.

Author | Li Wei

Source | Caixin

Li Wei

Professor of Economics, Cheung Kong Graduate School of Business

Director of the Case Study Center of Cheung Kong Graduate School of Business

Director of the Big Data Economics Research Center of Cheung Kong Graduate School of Business

Vice President of Asian Markets

On September 24, 2023, China Evergrande Group (referred to as Evergrande) issued an announcement saying that "in view of the ongoing investigation of Evergrande Real Estate Group Co., Ltd. (the main subsidiary of the company), the current situation of the group cannot meet the eligibility for the issuance of new notes".

Public information shows that Hengda is in a serious insolvent situation. At the end of 2021, the end of 2022 and the end of June 2023, the company’s insolvent gap is 473.10 billion yuan, 599.10 billion yuan and 644.20 billion yuan respectively.

Judging from this set of data, Evergrande has not "stopped the bleeding". What should be done for such a large real estate company that is in crisis and the situation is rapidly deteriorating?

Market-oriented solutions

The current situation of Evergrande is not optimistic. If the government does not intervene in this crisis and the market comes up with a solution, then there are only two outcomes. One is that Evergrande goes bankrupt, and the other is that market-oriented institutions acquire and integrate Evergrande without the help of the government.

Let’s look at the first outcome. Logically, this is the most likely outcome if Evergrande’s crisis continues to worsen. If Evergrande does go bankrupt, what consequences will we face?

In principle, companies, like people, no matter how big or small they are, will die one day without much fuss. However, the reality may be much more complex than we think, especially for large companies with a wide range of implications.

A classic example of this is the impact of the collapse of Lehman Brothers Holdings Inc. during the 2008 financial crisis.

In 2007, the pressure on financial marekts caused by falling house prices became increasingly obvious, and a series of Financial Institution Groups began to experience insolvent problems, but the overall situation was still under control.

After entering 2008, the situation took a sharp turn for the worse. Lehman, the fourth largest investment bank on Wall Street, began to thunder continuously, and the problem of insolvent gradually appeared. At that time, there was a huge disagreement in the whole society on whether the government should rescue Lehman.

In fact, the government also wanted to raise resources to rescue Lehman, because Lehman was one of the core nodes of the US financial network, but it was ultimately concerned about moral hazard (moral hazard refers to the fact that under the condition of asymmetric information, the responsible economic actors do not bear the full consequences of their actions. For example, Lehman took excessive risks in the course of its operation, making money for himself, and losing money can be required for government rescue based on its importance), and gave up the rescue.

The collapse of Lehman Brothers brought the financial crisis to a climax, causing the largest crisis in the US economy since the Great Depression.

The government’s abandonment of the Lehman bailout quickly escalated the financial crisis, but if Lehman is bailed out, it is likely to exacerbate moral hazard in the financial system in the future. As moral hazard builds, it will only be a matter of time before a larger financial crisis erupts.

The failure of Lehman’s self-rescue brought an unexpected result, which was the successful self-rescue of Merrill Lynch (Merrill Lynch for short).

Merrill Lynch is the third largest investment bank on Wall Street. As the parties discussed how to rescue Lehman, John Thain, the last Chief Executive Officer of Merrill Lynch (CEO), who participated in the discussion, immediately realized that Merrill Lynch had a similar problem. If it did not act immediately, then Merrill Lynch would be the next Lehman.

In order to save himself, Thain contacted Bank of America and sold himself to the latter for $50 billion, thus avoiding the end of Lehman.

In fact, from the perspective of game theory, the decision of the US government not to rescue Lehman, a Financial Institution Group that was so large that it had systemic risks, was somewhat random.

This means that the government will eventually rescue the vast majority of Financial Institution Groups that may cause systemic risks, but it should not let the market know the government’s trump card when choosing to give up a Financial Institution Group that can detonate systemic risks to curb moral hazard.

After all, there is a huge social cost to detonating systemic risk.

Government intervention solutions

The above describes the situation of relying on the market to solve the crisis, but in fact, when a major crisis occurs, the government will intervene more or less. Here are three examples according to the degree of government intervention.

First, the government only plays a coordinating role, and it is mainly handled by market forces.

The most typical example of this is the crisis resolution of Long-Term Capital Management (LTCM).

Founded in 1994, LTCM is a hedge fund specializing in highly leveraged carry trades.

LTCM became famous for its outstanding performance once it was established, but in 1998 LTCM suffered a huge loss. Due to LTCM’s highly leveraged trading strategy, its counterparties included many Wall Street Financial Institution Groups, so the crisis of LTCM once led to a possible systemic crisis in financial marekt. To avoid this dangerous situation, the Federal Reserve Bank of New York convened many Wall Street Financial Institution Groups to discuss ways to rescue LTCM. Finally, many Wall Street Financial Institution Groups raised $3.625 billion to rescue LTCM. The Wall Street Financial Institution Group’s investment not only saved the LTCM from the verge of collapse, but also eliminated its threat to the entire financial system.

During the entire incident, the Federal Reserve Bank of New York played a convening and coordinating role, but it did not provide capital or guarantee, and its intervention in the market was limited. It mainly relied on market forces to solve problems.

Second, the government provides some funds for rescue, but the main transactions are still completed by market institutions. A more typical example of this is the handling of Bear Stearns by the Federal Reserve Bank of New York in 2008.

Bear Stearns is the fifth largest investment bank on Wall Street and a very important Financial Institutions Group in the US financial system.

In order to prevent the collapse of Bear Stearns from hitting the entire financial system, the Federal Reserve Bank of New York coordinated JPMorgan Chase’s acquisition of Bear Stearns. In the process, the Federal Reserve Bank of New York funded the purchase of Bear Stearns’ assets for $30 billion, which helped to complete the entire acquisition.

In this deal, the government offered real money to rescue the problem company, but the amount was relatively small and only played a supporting role. The big problems were still solved by the market itself.

Third, the government fully intervened to take over the companies at risk, a classic example of which was the handling of Silicon Valley Bank by US regulators in March 2023.

Silicon Valley Bank, a bank whose main customers are high-tech companies, experienced a severe run in March 2023 because it did not do a good job of risk management. Fearing that panic would spread and trigger a chain reaction, the US Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) acted together and quickly intervened in the crisis.

After regulators took over Silicon Valley Bank, the FDIC announced an unlimited guarantee on all deposits, breaking the previous limit of $250,000. For Silicon Valley Bank, the regulator ousted all its executives and zeroed out the equity value.

From this series of actions, it can be seen that the government took a comprehensive intervention approach in response to the crisis of Silicon Valley Bank, taking complete control of the company, which is the deepest form of government intervention.

How can we resolve the Hengda crisis as soon as possible?

The above discusses different ways to resolve the crisis from the perspective of the market and the government. What is the significance of this for us to deal with Evergrande’s problems?

Here is the first thing to say, some people may say that the examples mentioned above are all Financial Institution Group, Evergrande is a real estate developer, not Financial Institution Group, there are substantial differences between the two.

Indeed, Financial Institution Groups, especially those large Financial Institution Groups that are at the heart of the financial system, often have a direct and huge impact on the entire system, even the macroeconomy, so once these institutions are in crisis, they are often prone to systemic crises. This is the case we saw in the Lehman bankruptcy.

Institutions with systemic risk are often large Financial Institution Groups, but systemic risk is not the patent of large Financial Institution Groups. All institutions that have a direct and huge impact on the economy and finance as a whole are institutions with systemic risk. Evergrande is one of them.

There are three reasons for this.

First of all, the real estate itself in China belongs to the giant industry, and its upstream and downstream implication is very wide, from steel and cement to home appliance decoration, some studies believe that these industries together ** the country’s gross domestic product (GDP) ratio may be close to 30%;

Second, real estate is closely linked to the financial system. When real estate goes wrong, the land market will soon follow. A large amount of financing in China is based on land and real estate as collateral. Once the value of these collateral shrinks, the risk will immediately spread from real estate to the financial sector;

Finally, Evergrande is a typical leader in the real estate industry, and its survival has a significant impact on people’s views on the entire real estate industry, and even on China’s economy.

Evergrande is so important, so how should we handle the current crisis?

First, Evergrande’s self-rescue seems to be very difficult to succeed. Evergrande has been in danger for two years. If self-rescue can work, we don’t need to discuss whether to rescue Evergrande today.

Second, use a market-oriented approach to solve Evergrande’s problems.

First, let Evergrande go out of business. This is difficult because Evergrande is a company with systemic risk. Second, let other companies in the industry merge and acquire Evergrande. This is a better approach because real estate is a sector with a certain technical threshold, and companies in other industries do not easily learn how to run a developer efficiently in a short period of time.

But there are two difficulties here, one is that Hengda’s scale is too large, in 2020 before Hengda’s accident, Hengda’s housing sales area was as high as 80.86 million square meters, ranking first in the country; the other is that Hengda has been suffering for a long time, and no one knows how big a hole there is. The resources required to acquire such a giant company may not be what a developer can have.

Third, the government intervened to rescue Evergrande.

First, the government only plays a coordinating role, allowing companies in the industry to acquire Evergrande, or establish a consortium, with money, such as the Financial Institution Group, and powerful contributions, such as developers. However, as mentioned above, this path is currently not feasible.

The second is that the government provides a small amount of funds, and then joins social funds to jointly acquire Hengda. This method is better, but the coordination cost is higher.

The third is for the government to directly take over Evergrande. This approach is the simplest and most straightforward, and can control the spread of risk in a short period of time. But the biggest problem is that the government does not know how to run a real estate developer well, and it is still such a huge and opaque developer.

From the current situation, each plan has advantages and disadvantages. Rescuing Evergrande, no matter what method, will create a certain moral hazard, but because Evergrande is a company with systemic risk, this forces us to compromise.

Rescuing Evergrande requires two resources, one is technology and the other is funding.

The government and some large companies outside the industry have capital but no technology, and companies in the industry have technology but no capital. Therefore, the best way is to form a consortium and give full play to their respective strengths.

But the drawback of this is also obvious. How to assemble a suitable team is very difficult, which takes time, but whether Evergrande’s crisis has left us enough time is something we don’t know. A direct government takeover can immediately stop Evergrande’s bleeding, but subsequent operations are beyond the government’s ability.

But this approach is not completely impossible. In this regard, we can still learn from the treatment of Silicon Valley Bank by US regulators. On March 10, 2023, US regulators took over Silicon Valley Bank. Just 16 days later, the regulatory bank found the next home for Silicon Valley Bank – First Citizens Bank (First Citizens BancShares).

Many people now have an understandable sense of anger towards Evergrande, especially those who paid for a house but couldn’t get it.

In the future, even if we rescue Evergrande, it will not be all bailouts. We should rescue homebuyers who cannot get houses and suppliers who do not get the money, but we should let Evergrande’s equity go to zero, most of its debt is impaired, and all executives are dismissed, just like the way US regulators handled Silicon Valley Bank.

But the most important thing at the moment is to stop the bleeding of Evergrande and stop allowing its risks to accumulate and spread. At the same time, we should preserve good evidence to lay a good foundation for future accountability in a rule of law manner. Looking at the overall situation, the government should find a way to take over Evergrande as soon as possible.