The company's annual report in 2021. In 2021, the company achieved operating income of 112.31 billion yuan, an increase of 28.05% over the same period last year, and net profit of 6.688 billion yuan, down 31.08% from the same period last year, of which the net profit belonging to shareholders of listed companies was 3.601 billion yuan, down 48.78% from the same period last year.
The main reasons for the decline in the company's performance in 2021 are as follows: 1) affected by the rise in land acquisition costs, the gross profit margin fell from 23.16% to 17.22% in 2021, a decrease of 5.94 percentage points over the same period last year, resulting in a decrease of 974 million yuan in gross profit. 2) under the influence of real estate regulation and cash flow, after carefully evaluating the changes in the market where the project is located, the company provides for impairment of assets such as inventory with expected impairment, with a provision of 2.162 billion yuan, an increase of 427% over the same period last year. 3) affected by the decrease in income from real estate projects developed by joint ventures and joint ventures, the investment income decreased by 509 million yuan over the previous year, down 39.06% from the same period last year.
Reduce debts in an orderly manner to ensure the safety of enterprise operations. In 2021, on the premise of ensuring the safety of cash flow, the company significantly reduced the scale of interest-bearing liabilities, from 97.664 billion yuan at the end of last year to 80.61 billion yuan. In 2021, the company's asset-liability ratio fell to 79.07%, down 1.65 percentage points from the same period last year; net debt ratio was 69.51%, down 5.56 percentage points from the same period last year; and after deducting contract liabilities, the asset-liability ratio was 69.17%, down 0.68 percentage points from the same period last year. In 2021, the company and the company invested in about 400projects under construction at the end of the period, with a new construction area of about 14.85 million square meters in the whole year, an area of about 60.96 million square meters under construction at the end of 2021, and a completed area of about 21.11 million square meters. The residential area delivered in 2021 is about 21.75 million square meters and the number of housing units is about 141600.
The land reserve is balanced with the level of sales. In 2021, the company achieved sales of about 184 billion yuan, down 17.56% from the same period last year. In 2021, the company's land purchase contract amount was 37.6 billion yuan, with a capacity building area of 9.76 million square meters, and the investment-to-sales ratio was controlled within 40%.
The company's quarterly report in 2022. The company achieved operating income of 12.672 billion yuan, basically unchanged from the same period last year; net profit was-260 million yuan, down 138% from the same period last year, of which the net profit belonging to shareholders of listed companies was-294 million yuan, down 164% from the same period last year. We believe that the company's first-quarter performance loss is related to the imbalance in the current settlement scale and the decline in the joint venture's year-on-year net profit.
Maintain the "better than the market" rating. Considering that the overall debt level of the company is controllable, and the overall profit margin risk is relatively fully calculated in the 2021 annual report, we maintain the company's "better than the market" rating level, forecasting that the company's EPS in 2022 and 2023 will be 0.71,0.75 yuan respectively, giving the company 6-7XPE in 2022, with a reasonable value range of 4.24-4.95 yuan.
Risk hints: 1) the risk that the company's sales growth is not up to expectations; 2) house prices are significantly downward; 3) shareholder changes.