On March 31, Zhongliang held the online 2019 annual performance meeting. Yang Jian, chairman of Zhongliang Group, said that this is the first annual report issued after the listing of Zhongliang, and Zhongliang shows landmark cross-regional growth.
According to Zhongliang Holdings(2772.HK) released its 2019 annual report, Zhongliang Holdings achieved an operating income of 56.6 billion yuan in 2019, an increase of 88% over the same period last year, while the core net profit attributable to shareholders was 3.9 billion yuan, an increase of 102% over the same period last year. Colleague, Zhongliang Holdings declared a final dividend of about 29.8 cents per share.
In the past years, the overall policy environment of China's real estate market has been tight, the market size of key cities has been adjusted, the price increase of new housing in 100 cities has further narrowed, and the land market is in a state of low temperature. In the face of this situation, Zhongliang Holdings actively changed and broke the situation, successfully listed in Hong Kong to broaden financing channels, the national layout insisted on both deep ploughing and expansion, the iterative updating of products was rapid, and the organizational structure was appropriately adjusted to meet the requirements of the company's development. in the flexible response to change and immutability, Zhongliang Holdings handed over its first satisfactory report card.
The strategy of "three turns" has been promoted, and the strategic addition of second-tier cities has achieved remarkable results.
In the long run, the trend of urbanization in China has not changed, the status of the real estate industry as an important industry of the national economy has not changed, the sales of commercial housing across the country will remain stable, and the country's determination to "live in a house without speculation" has not changed. there is a trend of differentiation in urban market opportunities with different energy levels. Zhongliang Holdings has always respected the market, complied with the market, and firmly implemented the "three turns" strategy according to market changes, that is, the strategic plan of turning to the second line, to the provincial capital and to the central city of the metropolitan area, with remarkable results. At present, it has achieved basic coverage of the country's important urban agglomeration and key second-and third-tier cities.
According to the annual report, Zhongliang Holdings bought 76.4 billion yuan of land in 2019, with 53% of new land reserves in second-tier cities and 39% in third-tier cities. In 2019, 20 new cities, including Nanjing, Nanchang, Tianjin, Dalian, Guiyang, Xi'an, Fuzhou, Xiamen, Weifang, Qingyuan, etc., will sell resources of about 2, 60 billion yuan in 2020.
By the end of 2019, the total land storage in Zhongliang has exceeded 57 million yuan, the land cost is 4000 yuan / ha, and the total salable value is about 443.3 billion yuan. Among them, the proportion of land reserves in China's most economically active Yangtze River Delta region is close to 50%. With the promotion and implementation of the Yangtze River Delta integration strategy, Zhongliang is expected to continue to benefit from it in the future.
Successful listing in Hong Kong has opened up overseas financing channels, and domestic financing forms are constantly innovating.
Real estate is a capital-intensive industry, diversified financing channels help to promote the rapid development of enterprises. Since Zhongliang was successfully listed on the Hong Kong Stock Exchange in 2019 and opened overseas financing channels, the form of domestic financing has also been innovated continuously. Zhong Liang successfully landed on the Hong Kong Stock Exchange in 2019, raising a net amount of about HK $2.8 billion. After listing, it successfully launched a US $400 million two-year note and was recently awarded Hang Seng Bank.The syndicated loan is 20 million dollars.
On the domestic side, Zhongliang Holdings has recently been granted a credit of 8 billion yuan by Guangfa and Pudong Development Bank, and the special asset support plan for the end of house purchase of Great Wall Jiaxin-Zhongliang Real Estate has been accepted by the Shenzhen Stock Exchange, with a proposed issue amount of 340 million yuan. the first shelf-type supply chain ABS "East Asia Qianhai-Lianyirong-potential supply chain Finance 1-N Special Asset support Plan" has successfully obtained a letter from Shenzhen Stock Exchange. The target raising scale is no more than 2 billion yuan.
By the end of 2019, the net debt ratio of Zhongliang Holdings was 65.6%, keeping the industry low, with cash and bank balances of 26.5 billion yuan, much higher than interest-bearing liabilities due within one year. Coupled with a sound financing system, Zhongliang Holdings can be said to be quite healthy in terms of financial structure and cash flow.
Although the epidemic situation of COVID-19 in the first quarter of 2020 has affected the whole industry to a certain extent, the prevention and control of the epidemic in China is efficient and powerful. at present, the epidemic has been well controlled, and it is expected that the real estate sales market will pick up in the second quarter. In the long run, the future real estate policy will still be based on "stabilizing land prices, stabilizing housing prices and stabilizing expectations". Under such circumstances, Zhongliang Holdings will adhere to the annual theme of "open partnership, create a platform, break the whole situation, and create consensus". With a more open mind, a more pioneering spirit and a more pioneering belief, adhere to the principle of "opening up, integration, co-creation and win-win", integrate resources and continue to create value for investors.