Financial Services Association, April 19 (Editor Liu Chen) On the 18th, CCCC Real Estate Co., Ltd. released the 2023 annual report data. The asset size is 122,644 billion yuan, accounting for about 17% compared with the asset size disclosed by the parent company CCCC Real Estate Group Co., Ltd. in the latest phase; annual net profit - 1,472 billion yuan, and total liabilities of 104.969 billion yuan.

This morning, CCCC Real Estate Group Co., Ltd. (hereinafter referred to as the “Company”) held an online roadshow meeting to answer investors' concerns. The Financial Services Association learned from investors attending the conference that investors mainly asked questions about the company's cash flow support and project risks, as well as investment and local investment. The company plans to issue no more than RMB 1,630 billion in non-public corporate bonds to professional investors this month.

At the meeting, an investor inquired about “Greentown revealed the rumor”. Mei Gui, general manager of the company's finance department, responded, “The rumor is untrue. Greentown is directly managed by CCCC Group, so they still need to be combined.” He pointed out that although there is no overall holding, which is equivalent to mergers and acquisitions, the company implements control through senior dispatch and strategic management. From the perspective of an audit by the State Assets Administration Commission, it also approves the company's actual control of Greentown.

According to Wind data, CCCC Real Estate Group Co., Ltd.'s shareholding ratio in Greentown China is 27.75%.

Mei Gui explained that the company's sales amount last year was about 30 billion dollars. For specific financial details, the annual report will be published before the end of April. Since many land plots did not win in the first half of the year, the policy change in the second half of the year was changed to those with higher prices, and land acquisition was limited by cost pressure. The company acquired land last year for about 3 or 4 projects (Chengdu, Hefei, Sanya), with a total amount of less than 4 billion dollars. In terms of land acquisition standards, first-tier cities have a net sales interest rate of 8%, and the second-tier requirement is 10%. The requirements issued by the company are core locations in core cities. There are less than 20 that can be invested in the country, so the third- and fourth-tier cities may not visit in the future.

Regarding the company's shareholder support and debt costs, Mei Gui said that real estate is a highly leveraged industry. This is an objective situation. Part of the company's external debt is financial institutions, and part is shareholder debt. If external financing costs are high, the company will still give priority to borrowing from internal shareholders. If no clear amount is given, the judgment will be based on the actual situation.

He also mentioned that the company has been actively promoting pressure reduction in financing costs. The real estate industry's financing costs are higher than infrastructure projects. This is a characteristic of the industry, but the return rate is also higher. The company's stock of high-cost financing in the past two years has been completely replaced, and it is also necessary to shop around for new debts to reduce overall financing costs as much as possible. It dropped close to 1 point last year. The cost of financing with high interest rates is about 10%. Under the general environment of low interest rates, it is expected to drop to single digits this year.

“As a state-owned enterprise, the company has good relationships with major financial institutions. Some projects can receive financial support even if they are not on the white list.” Mei Gui said that some cooperation projects are also seeking entry into the white list. Entering or applying for entry into the white list is also for better security, which does not mean that the partners have liquidity problems. Currently, the company's exposure to cooperation with private enterprises was a few years ago. When the private enterprises were in good condition, there were thunderstorms among the cooperating private enterprises, but there were no thunderstorms in the cooperative projects. The residences in collaboration with Jindi and Shimao have already been sold out, and there are still a few office buildings left. Currently, new contracts have entered the market to restart construction. It can cover the associated cost of debt and be profitable.

According to public information, CCCC Real Estate Group Co., Ltd. currently has a total of 10 outstanding bonds, involving an amount of RMB 12.39 billion. The recent cash flow due was accrued on July 12 of this year, with interest payable of $348 million and interest of $347 million on July 13. Since no annual report has been disclosed, the most recent 2023 three-quarter report that can be obtained shows that the company's assets are 713.547 billion, including monetary capital of 76.641 billion yuan; total liabilities are 589.571 billion yuan, net profit for the quarter is 3.592 billion, and the tangible assets/interest-bearing debt ratio is 0.01.