Core ideas:
Jianye Real Estate, as a real estate enterprise that has ploughed Henan for 28 years, by virtue of the group's influence and competitiveness in Henan, the contract sales increased by 8.5% in the first half of 2020 compared with the same period last year. Zhengzhou sales increased by 82.6% to 9.05 billion yuan. According to the construction project of Jianye Real Estate in the second half of the year, Luoyang ranked first with the start-up scale of 16.13 billion. It is expected that Luoyang will continue to make efforts to help Jianye's real estate sales scale to a higher level in the future.
1. deep ploughing in the area with heavy assets and light assets out of Henan
In the first half of 2020, the contract sales volume reached 42.951 billion yuan, an increase of 8.5% over the same period last year, with a contract sales area of 587.77 million square meters. Of this total, the contract sales of heavy assets totaled 30.016 billion yuan, up 8.5 percent from the same period last year, and the sales area of heavy assets contracts was 368.74 square meters, down 3.6 percent from the same period last year. In terms of light assets, in the first half of 2020, Jianye Real Estate signed more than 40 new light asset projects, with a total planned construction area of 5.35 million square meters and a sales amount of about 13 billion yuan. Jianye Real Estate's light asset business is expanding outside Henan Province.
Second, the intensity of investment remained sound, with an additional land storage of 3.66 million square meters in the first half of 2020. In the first half of 2020, Jianye Real Estate added 365.5 square meters of land storage, a decrease of 19.1 percent compared with the same period in 2019. The ratio of investment to sales is 1, and the investment attitude is relatively sound.
Among them, the new land storage area obtained through auction and equity cooperation is 1.211 million square meters, a decrease of 27.3% compared with the same period in 2019. The new land reserves are mainly located in cities such as Zhoukou, Dengfeng and Hebi. The new land reserves in equity cooperation are mainly located in Luoyang, Zhoukou, Zhumadian and other cities.
Third, operating income increased by 43.6% over the same period last year, with the largest contribution from heavy assets in the first half of 2020. Jianye Real Estate achieved operating income of 13.02 billion yuan in the first half of 2020, an increase of 43.6% over the same period in 2019. Jianye Real Estate's operating income was mainly driven by heavy assets (property sales). In the first half of 2019, the operating income of heavy assets was 12.36 billion yuan, accounting for 95%, an increase of 47.3% over the same period last year.
Fourth, the net debt ratio increases 13pct, and the risk of short-term debt repayment is smaller.
In the first half of 2020, the net debt ratio of Jianye Real Estate increased to 76.9% from 64.2% at the end of 2019, but it was still lower than the average net debt ratio of 2019 EH50, and the debt structure was relatively sound. The main reason for the change is that the company's short-term preferred notes rose sharply to 9.86 billion yuan from 4.86 billion yuan at the end of 2019.
As of June 30, 2020, Jianye Real Estate has a monetary fund of 23.4 billion yuan, a short-term interest liability of 19.4 billion yuan, and a cash-to-short-debt ratio of 1.4. monetary funds can completely cover short-term interest-bearing liabilities, and the risk of short-term debt repayment is relatively small.