The gross margin of Greenland Hong Kong was 25% last year Chen Jun: The company has changed from pursuing scale development to focusing on efficiency

2022-06-18 0 By

Our reporter Liu Songhui reported in Shanghai on the evening of March 29, Greenland Hong Kong Holdings Limited (00337.HK, hereinafter referred to as “Greenland Hong Kong”) announced its 2021 results.The performance report shows that in 2021, Greenland Hong Kong achieved operating revenue of 33.9 billion yuan, gross profit of 8.5 billion yuan, annual net profit attributable to the company owner of 2.2 billion yuan, earnings per share of 0.78 yuan.During the same period, the company continued to improve its product strength. Among the projects under construction, the company won 93 industry awards. The price of many projects was higher than that of similar competitive products in the same region, with significant premium effect, and the overall gross margin was 25%.Green board chairman and chief executive of Hong Kong to the China business news “reporter said Chen, 2021, in the face of the depth of the economic pressures at home and abroad and industry regulation, the company actively adjust business strategy, give top priority to prevent risks, keep the bottom line, vigorously promotes the sale, the cash supply and delivery, under the environment of the reform of the industry, operating conditions remains robust.According to the performance report, in 2021, the contract sales of Greenland Hong Kong will be about 33 billion yuan, and the cash recovery will be about 44 billion yuan, with a recovery rate of over 130%.The net interest-bearing debt ratio was 39%, down 10 percentage points year-on-year, the lowest in the real estate industry, and the effective interest cost was 5.7%.Thanks to the good cash return rate, Greenland Hong Kong has a cash balance of 10.6 billion yuan and a cash shorter-debt ratio of about 1.14. The company has abundant liquidity, which fully covers short-term interest-bearing liabilities. The company’s good operation ability and anti-risk ability are manifested.As the overseas listed real estate platform of Greenland Group, Greenland Hong Kong’s projects are mainly distributed in the Yangtze River Delta region and the Guangdong-Hong Kong-Macao Greater Bay Area, and deeply cultivate the core metropolitan areas with developed economy and continuous influx of population.Data from the annual report show that in 2021, the company will increase 11 projects, increase soil storage of about 1.97 million square meters, increase the value of about 36 billion yuan, 89% of which is residential.By the end of 2021, Greenland Hong Kong has a total land reserve of 24 million square meters, about 63 percent of which is concentrated in the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area and provincial capitals in southwest China.Greenland Hong Kong has launched four residential product lines including Sandalwood, Amber, Fenghua and Ideal. In 2021, Chaoyang Gate in Yiwu was awarded “Top ten Residential Works in China”, and Xishui Dongtan Palace in Wuxi was awarded “Top Ten High-end Products in China”.At the same time, Greenland Hong Kong also actively layout long-term rental apartment business.In 2021, the overall operation quality of “Jingshe”, its long-term rental apartment brand, is stable and improving. The number of rooms under management is 4,160, and the average annual rental rate of stable stores is more than 95%.In the future, the business will focus on first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen as well as Hangzhou, and radiate to quasi-first-tier cities with high concentration of colleges and universities such as Nanjing, Suzhou, Wuhan, Chengdu and Xiamen, aiming to achieve a total scale of 80,000 rooms in 5 years, with a total opening number of more than 60,000 rooms.It is worth noting that Greenland Hong Kong failed to achieve its sales target during the reporting period due to economic pressures at home and abroad and the in-depth regulation of the real estate industry.Based on the 60 billion yuan sales target proposed by the company’s management at the beginning of last year, Greenland Hong Kong will only achieve 55 percent of its sales in 2021.Compared with 2020, Greenland Hong Kong’s operating revenue only increased by 1%, profit margin decreased by 29.63%, profit margin attributable to owners decreased by 17.37%, and group employees decreased from 5691 to 4007.Company said, change in response to the real estate industry, actively promote green Hong Kong enterprises pursue scale development from the past to focus on the benefits of paradigm shift, return to nature of industry, the top design, optimization and industry change trend synchronization, optimize the structure of streamline organization structure and team, to enhance the intrinsic motivation, vitality and competitiveness.”In 2022, the company’s effective sales source will reach 54.1 billion yuan, about 63 percent of which is residential, and about 77 percent of which is concentrated in first-tier and second-tier cities and provincial capitals.”Chen Jun believes that according to the national “housing is not speculation, stability of the word” set tone, as well as the recent focus of many ministries and commissions, the real estate industry benign development of the spring is coming.In the next step, Greenland Hong Kong will continue to focus on the main business of real estate, develop and reserve high-quality land, deeply cultivate core cities in the Pan-Yangtze River Delta and pan-Pearl River Delta region, and stabilize the national layout.The specific investment strategy is to focus on the first-tier cities, select the best among the best, invest prudently and optimize the soil storage structure;Strengthen project cooperation with government platform companies and state-owned enterprises to resist market risks;Timely acquisition of high-quality projects in core cities.(Edited by Shi Yingjing and proofread by Yan Jingning)