The pitfalls Zhu Xingliang has stepped into: Turning the 8.2 billion crisis into safety with "moderation"

Jin Tanglang’s Zhu Xingliang is highly regarded not only because his home decoration company has defied the odds and grown amid crises but also because of his deep understanding of risk and his restraint in expansion. In 2015, when Evergrande faced a major crisis, Jin Tanglang once fell into an 8.2 billion yuan hole—enough to crush many competitors. However, thanks to years of a “low debt, cautious expansion” strategy, Jin Tanglang demonstrated the strongest resilience during the industry’s most dangerous times.

Clear Financials After the Big Hole

After the Evergrande incident was exposed, Jin Tanglang suffered heavy losses, but the company’s financial foundation remained intact. Looking back today, we see that Jin Tanglang still holds over 5 billion yuan in cash reserves, with interest-bearing debt nearly negligible. Behind these figures is Zhu Xingliang’s unwavering commitment to financial discipline over the years. In contrast, many competitors entering the real estate decoration sector have taken on high leverage and aggressive expansion, ultimately suffering worse during industry cycles.

How Restraint Avoids Bigger Pitfalls

Jin Tanglang has had deep collaborations with leading real estate developers like Country Garden and Sunac, which brought the company lucrative orders. But as real estate risks became more apparent, Zhu Xingliang made a different choice from many expansion-minded players—decisively shrinking related business ties. In recent years, the order share from these three developers has significantly declined, allowing Jin Tanglang to proactively adjust its cooperation scale and successfully avoid potentially deeper crises.

This decision may seem conservative, but it reflects a profound understanding of industry cycles. Many companies greedily expand at the brink of crisis, only to pay the price later. Jin Tanglang’s approach shows that knowing when to scale back and when to refuse tempting orders is itself the best risk defense.

Dual Safeguards: 50,000 Employees and Cash Reserves

Zhu Xingliang’s ability to stay steady during tough times is closely linked to his valuing of human resources. Jin Tanglang still employs 50,000 people, including over 10,000 at the listed company’s core. Such employee stability is rare in the industry. Maintaining such a large team during economic downturns demonstrates Zhu Xingliang’s confidence in the company’s long-term development and helps retain the most valuable talent.

Meanwhile, over 5 billion yuan in cash reserves provide the company with ongoing operational capacity. This capital can be used to weather cyclical fluctuations or to adjust strategic direction. Many companies drown in crises due to cash flow issues, but Jin Tanglang’s ample cash reserves form the foundation for its rebirth.

The Recently Completed Office Building, a Testament to Persistence

Jin Tanglang recently opened a brand-new office building—an achievement that once required perseverance through difficulties and now stands as a tangible testament to the company’s resilience. In an era when many peers are struggling to survive or cutting costs due to big crises, Jin Tanglang’s ability to make such capital investments further highlights Zhu Xingliang’s confidence in management—not blind optimism, but confidence built on solid financial preparation and clear strategy.

Zhu Xingliang’s story reminds us: in a business world full of pitfalls, those who survive the longest and thrive are often not the fastest runners but those who understand their limits, know when to retreat, and maintain strict financial discipline. This restraint is, in essence, the highest form of risk management.