The year 2021 is a year in which the real estate industry has undergone profound changes. under the overall positioning of the country's "housing speculation", the logic at the bottom of the operation of the real estate market has changed, and enterprises have entered a period of deep adjustment. Therefore, in the face of ups and downs and organic external environment, how to break the situation and rebirth has become a necessary proposition for the major real estate enterprises to explore. At the same time, with the continuous increase of real estate financial regulation and control policies, the differentiation between real estate enterprises is intensifying, and the competition pattern will also be accelerated to reshape. Only those high-quality real estate enterprises that continue to improve their core competitiveness and have multi-dimensional strength can be expected to precipitate in the short-term risk and win in the long-term competition.
Since its establishment in 1999, Territory Group has been ploughing the industry for more than 20 years. as the mainstay of China's top 100 real estate companies, in the face of a period of industry change, Territory Group has actively practiced its internal skills and tilted its attention to products, services and brands. to create a high-quality development sample of real estate enterprises with a steady attitude. As an established real estate enterprise, Territory Group has always maintained a clear-headed and prudent attitude, continuously strengthen its ability to resist risks, enhance its soft power and endogenous strength, and persist in being a real "long-term" in the real estate industry. After the wind and rain, the anti-trend territorial group will be more resilient.
Long-term doctrine is the foundation of development.
In the past two years, the land supply "two concentration" policy superimposed new financing rules, the real estate industry financing difficulty escalated, profit difficulty intensified, some real estate enterprises poor management, into the debt crisis. In this special period, healthy finance is becoming more and more valuable for real estate enterprises. Recently, in the list of real estate enterprises released by Hexun Finance, the Territory Group ranks in the top 3 of the list of financial health and the top 50 of the gross profit margin of listed real estate enterprises, demonstrating the comprehensive strength and development resilience of the Territory Group.
Specifically, in the first half of 2021, the cash and bank balance of Territory Holdings was about 7.78 billion yuan, an increase of 99.50% over the same period last year, and contract sales increased by 40% compared with the same period last year; the area of contract sales increased by 25% compared with the same period last year; the amount of contract sales ranks high among local real estate enterprises listed in Hong Kong shares. The payback rate in the first half of the year is 98%, leading the industry level and maintaining a sound trend. While the scale is growing steadily, Territory Holdings continues to optimize its financial structure, various financial indicators are steadily improved, and the "three red lines" are almost all green.
In addition, under the influence of regulation and control policies, the continuous tightening of the financing environment has generally brought financial pressure to real estate enterprises. in order to avoid a capital crisis, the Territory Group has actively expanded its financing channels and signed a strategic cooperation agreement between banks and enterprises with the Bank of Sichuan, one of the leading banks in Sichuan, with a credit line of 2.5 billion yuan, and its core competitiveness has been further enhanced. In addition, in the first half of 2021, Territory Holdings was rated B by Fitch International Credit rating Company and B2 by Moody's Corporation Investor Service Company, and was included in China's small cap index by Mingsheng (MSCI), the largest index company in the world, indicating that international evaluation institutions and industries highly recognize the sound operation, business growth and development potential of the Territory.
What is noteworthy is that recently, according to a number of media reports, the financing environment of real estate enterprises is gradually "thawing", the investment of real estate loans by financial institutions has significantly accelerated, and the positive news that bond financing by real estate enterprises is expected to pick up is coming frequently, and market confidence continues to recover. The Territory Group has good cash flow, abundant land reserves and smooth financing channels, the improvement of the external environment will help its operation to a new level, and create more imagination space for development. The Territory Group said that the Territory will practice long-term doctrine, improve quality and efficiency, shift from high-speed development to high-quality development, and build high-quality people's livelihood real estate in the spirit of Luban.
High-quality housing is the goal of development.
Under the uncertainty of the external environment of the real estate, the Territory Group is well aware of the way that "products are king" and has devoted more energy to cultivating the "definite part". With empowering the city and serving the public as the starting point and creating a healthy and better life as the mission, Territory Group is exploring the combination of people's livelihood real estate and healthy and intelligent human settlements.
China's economic development has made great strides forward. In order to meet the needs of residents for high-quality housing, Territory Group, from the perspective of consumers, continues to improve the strength of products and services in practice. The Territory constructs a better human settlement life from the three dimensions of "health, safety and happiness", builds the characteristic product system of "TOP system, View, Blue, Sky and Yue" with poetic dwelling as its core, and upgrades the fourth generation products to promote green environmental protection. The Territory World Financial Center won the Luban Award, the highest award for architecture in China, and the Territory Group Yuefu won the CREDAWARD Real Estate Design Award. Behind the fact that the product design has been repeatedly recognized by the industry and customers, it is the original intention of the Territory Group to "serve the people's livelihood" with ingenuity.
At the same time, the Territory sets up the concept of full-cycle service of real estate, and uses quality service and intelligent technology to create a new type of community with temperature, so as to create a better life for the owners. With the adjustment of the population structure and the acceleration of the aging process, the territorial layout is healthy, the healthy real estate is maintained, the rehabilitation industry projects such as Tianfu International Cannes and Tianfu Territorial City are created, and the international health management center and 4H medical service complex are joined hands to build a large health industrial base and practice healthy real estate with high quality.
With the iteration of the needs of "healthy human settlements", the territory has upgraded to create a "and + intelligent and healthy community" to explore the harmonious symbiotic relationship among man, architecture and nature. Recently, the Territory has also carried out wisdom cooperation with Huawei, based on the wisdom community big data. At present, the Territory has provided healthy and beautiful home cloud services for 110 + communities and a healthy and intelligent experience for more than 100000 families. to achieve strategic cooperation brand hardcore for 40 + cities.
The heart of doing good is the driving force of development.
In addition to promoting the sustainable development of enterprises, Territory Group regards "good" as its new vision and actively practices corporate social responsibility. Since 2011, the Territory has established the "Territory Heart Program" and carried out a series of activities to help students, the elderly and the poor, adhering to the public interest of "one mind, one benefit and creating a better place together". In June this year, the Territory and the Sichuan Alumni Association of Changjiang Business School jointly supported the "Yangtze River Sichuan Alumni Association Xichang Magnolia Class", allowing 60 poor girls to enter the campus; in early September, the Territory joined the Sichuan Poverty Alleviation Foundation to hold the "see the Heart World" activity and the Dongpo Book House donation ceremony in Longshi Village Committee, Taihe Town, Dongpo District, Meishan City, to provide financial aid to a number of students. In order to respond positively to the country's call for the implementation of the rural revitalization strategy, the Territory Group donated funds for the construction of rural roads in Taihe Town to solve the villagers' commuting problems; at the same time, it launched a "love to help farmers" campaign to open the market for unsalable agricultural products in Muchuan County, Daliangshan Yi villages, and other places in Leshan City, so as to increase the income of local residents.
At the United Nations General Assembly on September 22, 2020, China made a commitment to the world that China's carbon dioxide emissions will reach a peak by 2030 and strive to achieve carbon neutrality by 2060. Focus on the construction industry, at present, China has begun to promote the large-scale development of high-quality green buildings, and the Territory Group is also bowing into the bureau to contribute to the realization of the "double carbon" goal. In July this year, Territory Holdings released the first "2020 Environmental, Social and Regulatory report" (referred to as the ESG report) since its listing, which disclosed the development of the enterprise from the perspective of environment, society and corporate governance. At the same time, the Territory practices the concept of green development and carries out environmental impact assessment before and after the completion of each project. China's top 30 green real estate projects with high quality and high environmental protection have been nominated as "healthy Residential Aesthetics demonstration Enterprise" and "Green Building Innovation Model".
The beginning year of the 14th five-year Plan is coming to an end. Looking back on the course, Territory Group, while ensuring sound operation, actively expands the market outside Sichuan and makes concerted efforts in the three major sectors of real estate, commerce and hospitality. Self-discipline and write a new chapter in the labor pains of the industry. Looking to the future, the Territory Group will seize new opportunities and promote new development in order to meet the needs of the public in quality products and practice the original intention of being a real estate company for people's livelihood.