We will actively resume work and production, and achieve steady revenue growth for the whole year. In 2020, the company achieved operating income of 38.445 billion yuan, an increase of 13.76% over the same period last year. The annual sales volume (full caliber) was 69.4 billion yuan, and the sales area (full caliber) was 3.12 million square meters. In 2020, the company actively responded to the negative impact of the epidemic on the holding business, grabbed passenger flow, promoted sales, controlled costs, and continued to maintain brand influence.
Deepen the application of large-scale operation system, and improve the operation efficiency steadily. The company persists in promoting the application of major operating standards and management systems with "plan, value, profit and cash flow (TVPC)" as the core. The average cycle from land acquisition to construction in 2020 is 7.4 months, from land acquisition to opening market is 11.2 months, and the average period from land acquisition to cash flow is 29 months, which is 2.7months, 6.3months and 10 months shorter than before implementation, respectively, and the return index is significantly improved.
Strengthen cash control and reduce financing costs. The rebate of equity sales reached 64.873 billion yuan in 2020, an increase of 6.9% over the same period last year. By the end of 2020, the company held 31.8 billion yuan of monetary funds, an increase of 15.1% over 2019. In addition, the company has actively expanded its financing channels, and the average financing cost has dropped to 5.10%, down 0.13 percentage points from 2019, which is at a lower level in the industry. At the end of 2020, the company's cash-to-short-debt ratio was 1.76, the company's short-term solvency was strong, the net debt ratio was 85.53%, and the asset-liability ratio after deducting accounts received in advance was 71.76%, which was financially sound.
Holding property projects maintain a high occupancy rate. By the end of 2020, the company has opened 10 Dayue City Shopping Mall, 1 Chunfeng Li project and 1 Xiangyun town project (excluding management export project). They are located in Beijing, Shanghai, Tianjin, Shenyang, Chengdu, Hangzhou, Yantai, Xi'an and other 8 cities.
The rental area of the shopping center is 907700 square meters, with an average occupancy rate of 93.9%. The company has large-scale industrial real estate projects and reserve land in Shenzhen and other places, and the overall rental rate of industrial real estate is 97%.
Optimize the strategic layout and improve the quality of investment. In 2020, the company obtained 18 projects, and successfully obtained the land plots of Xiamen Dayue City complex and Nanchang Dayue City complex, with a new land area of 2.0565 million square meters, a new land storage capacity of 4.5673 million square meters, and a total land loan of 20.912 billion yuan. the average floor price is 4579 yuan per square meter, and the average premium rate is 10.2%. By the end of 2020, the sales value of the company's land reserves is about 246 billion yuan, distributed in 36 cities across the country (including Hong Kong), mainly distributed in the core metropolitan areas such as Beijing, Tianjin and Hebei, the Yangtze River Delta, the middle reaches of the Yangtze River, Guangdong-Hong Kong-Macau Greater Bay Area, Chengdu and Chongqing.
Investment advice: "neutral". Affected by the impairment of assets and the income of the joint venture company, the company's net profit in 2020 was negative compared with the same period last year. We believe that the impact of subsequent asset impairment of the company will gradually come out of the net, and profits will gradually return to the normal level. We estimate that the company's EPS in 2021 will be RMB 0.42, and we will give the company a valuation of 9-11 times PE in 2021, corresponding to a market capitalization range of 161-19.7 billion yuan, a reasonable value range of 3.76-4.60 yuan, and a PEG of 0.65-0.79 in 2021, giving the company a "neutral" rating. Risk hint: the profit margin of the joint venture company is not high, which affects the overall income of the company.