Summary. Hongyang Real Estate was founded in 1996 and is headquartered in Nanjing. The company ploughs Jiangsu and is based on the Yangtze River Delta.
In 2018, Hongyang realized contract sales of 47.3 billion yuan (RMB, the same below), an increase of 84% over the same period last year. The company adheres to the "real estate + commercial" two-wheel drive strategy and operates two Hongyang Plaza and two hotels by the end of 2018. Last year, rental income rose 116% year-on-year to 395 million yuan. Hongyang listed on Hong Kong Exchanges and Clearing's main board on July 12, 2018, offering a share price of HK $2.28.
Fast-growing developers in the Yangtze River Delta. In 2018, the company's contract sales totaled 47.3 billion yuan, an increase of 84.2 percent over the same period last year, and the corresponding sales area was 3.53 million square meters, an increase of 107.8 percent over the same period last year. Hongyang adopts the regional layout strategy of "making Jiangsu big, deep ploughing long triangle, and laying out metropolitan area", so Jiangsu is Hongyang's largest market, contributing 83% of contract sales, especially Nanjing, bringing 31% of contract sales to the company. Hongyang has a sales target of 60 billion yuan in 2019, and the company has recorded 15 billion yuan in contract sales as of the first four months of this year. Since 2018, Hongyang has implemented a large-scale operation system and established a "3671" high turnover standard, that is, it will start work within 3 months, open in 6 months, achieve 70 per cent de-capitalization in 30 days and return to positive cash flow in 10 months. In addition, the company opened its Shanghai headquarters in February 2019, forming a dual headquarters in Shanghai and Nanjing to establish higher development standards.
13.8 million flat soil storage. Hongyang acquired 31 plots with a floor area of 3.72 million square meters in 2018, of which 44% or 163 million square meters are located in Jiangsu Province. While focusing on the development of the triangle, Hongyang has also expanded the layout of its metropolitan area. In 2018, Hongyang entered 13 cities, including Wuhan, Chengdu, Foshan, Nanchang, Kaifeng and Bengbu, with an additional soil storage area of 1.7 million square meters, accounting for 46% of the total. As of December 31, 2018, Hongyang has a total of 1380 million square meters, of which 72 per cent are located in first-and second-tier cities, or 70 per cent in Jiangsu, and 14 per cent in other Yangtze River Delta cities.
"real estate + business" two-wheel drive strategy. Hongyang adheres to the two-wheel drive strategy of "real estate + commerce". By the end of 2018, the company operated two Hongyang Plaza and two hotels with a total area of 510000 square meters. Last year, rental income rose 116% year-on-year to 395 million yuan. Hongyang also adopts the light asset development model, and the company rents third-party properties and operates Hongyang Square. The company has entered into commercial leasing contracts in Hongyang Square projects such as Hefei, Hengyang and Yantai.