Performance review

In the first half of 2016, the company realized operating income of 1.367 billion yuan, an increase of 117.17% over the same period last year; the net profit attributable to shareholders of listed companies was 39.5923 million yuan, compared with a loss of 119 million yuan in the same period last year; the net profit attributable to listed companies after deducting non-recurrent gains and losses was 2.1627 million yuan, compared with a loss of 158 million yuan in the same period last year; net cash flow from operating activities was 845 million yuan, down 31.57% from the same period last year Basic earnings per share was 0.05 yuan per share, compared with-0.16 yuan per share in the same period last year; the weighted average return on net assets was 1.99%, compared with-6.60% in the same period last year.

Performance review

The profit advantage of the project in Beijing began to show, and the performance improvement is expected to continue to improve. In the first half of 2016, the company achieved sales of 3.731 billion yuan, an increase of 35.28% over the same period last year, which was lower than the overall level of 51.40% of the Beijing market. The revenue of the real estate project carried forward in the current period was 1.283 billion yuan, an increase of 149.96% over the same period last year, which was basically the same as the growth level of 158.71% for the whole of 15 years. Revenue from import and export trade, property leasing and other businesses reached 83.99 million yuan, a decrease of 25.38% over the same period last year, and the business structure was further tilted towards the main business of real estate. The company's main carry-over projects come from the Beijing area. Driven by the continuous increase in the proportion of high-margin commercial housing and rail properties and the strong regional market, the sales gross profit margin and net profit margin increased by 9.08 and 23.30 percentage points respectively to 24.62% and 7.39% respectively. Although lower than the plate average level (28.19% and 9.99%), it achieved a half-year net profit of 39.5923 million yuan, turning losses into profits. Gradually get rid of the drag of the previous Wuxi project inventory impairment loss on the overall performance.

There are plenty of available resources and it is expected to exceed the annual performance target. At present, the company has 7 projects under construction and sale, and 1 project to be developed, of which 7 projects are located in Beijing area and 3 are properties built above the subway. by the end of the reporting period, the available sale area of the company has reached 282700 square meters, and the corresponding value is about 9 billion yuan. the total area to be completed is 2.2453 million square meters, which is 6 times the planned completion area in 16 years, which meets the carry-over needs of the company in the next 4-5 years. The amount of accounts received in advance at the end of half a year reached 6.625 billion yuan, a decrease of 15% compared with the same period last year, which is 0.82 times the annual revenue of 15 years. With the concentrated completion and carry-over of projects in Beijing in the second half of the year, the annual revenue target of 7.613 billion yuan is expected to be exceeded.

Long-term and short-term solvency is under pressure, and the capital structure is facing further improvement. At the end of the reporting period, the company's asset-liability ratio was 89.68%, and the asset-liability ratio excluding accounts received in advance was 86.39%, which were significantly higher than the industry average of 78.31% and 54.64% in the same period. The ratio of monetary funds to short-term loans and non-current liabilities maturing within one year is only 0.36, also lower than the industry average of 1.36. The company's capital chain faces greater pressure to repay debts in both the long and short term, but considering the financial support of the Beijing Investment Group (the 2014 shareholders' meeting examined and passed the motion on the cooperation between the company and Beijing Infrastructure Investment Co., Ltd.) to invest in real estate projects and related transactions. The company provides loans to the company at an annual interest rate of no more than 12%, the improvement of financing costs (the company issued two private bonds of 1 billion yuan in March and August 2016 respectively, and the coupon rates of 5.24% and 4.98% were lower than the weighted average annualized interest rate of 8.63% in the first half of the year) and the operating cash flow brought about by the improvement of the sales market (the net operating cash flow has been positive for 3 consecutive years) The financial situation of the company is expected to improve significantly with the improvement of performance expectations. Backed by the Beijing Investment Group, continuous access to resources and product premium advantage is expected to be enhanced. In the first quarter of 2016, the controlling shareholder of the company, Beijing Infrastructure Investment Co., Ltd. increased its stake to 32%. With the expected fade out of the Yintai system and the improvement of the company's dominant position, the company is expected to further combine the outstanding advantages of major shareholders in rail construction and first-level development in Beijing, and steadily strengthen the development strategy of "taking Beijing as the center and relying on rail transit". According to the second Phase Construction Plan of Beijing Urban Rail Transit, Beijing plans to build 12 rail projects with a total length of 262.9 km from 2015 to 2021. Metro property is rich in transferable resources, and the company has a strong leading advantage in locking in high-quality track resources. In addition, the company has accumulated rich knowledge, experience and technological innovation in the process of developing track property, and made remarkable achievements in planning and layout, development process, engineering construction, shock reduction and noise reduction, and completed the patented technology design of many track fasteners., Four patents have been obtained. With the rising volume and price in the core areas of first-tier cities and the squeezing effect of passive luxury on rigid demand, subway property, as the best carrier to undertake spillover rigid demand, will show outstanding differentiation advantages and product premium ability in the market. we continue to be optimistic about the company's future performance and asset appreciation expectations.

Risk hint

The expectation of regulation and control of Beijing real estate market has reversed, and the transaction side has cooled significantly; there is great uncertainty in the acquisition of rail property resources; the level of debt and cash flow pressure have further increased.