Core views:
1. The dependence of a single city declined, but revenue and profits declined to varying degrees. In 2020, the first shares achieved contract sales of 107.46 billion yuan, with a contract sales area of 3,816 million square meters, of which the sales area outside Beijing accounted for 66.0%. The dependence of the first company on the Beijing region gradually declined. Revenue reached 4423 billion yuan, a year-on-year decrease of 7.2%, and profit margins also showed a downward trend. In the future, as the layout of regions outside Beijing is gradually optimized and high prices are continuously digested, it is expected that corporate revenue and profit indicators may gradually recover.
2. Prudent land acquisition. The new land reserve of only 3.45 million square meters in 2020 was based in Beijing and expanded throughout the country, adhering to the principle of prudent land acquisition. In 2020, 21 new land cases were added, with a planned construction area of 3,449 million square meters. While actively expanding the layout of land reserves outside Beijing, a moderate land acquisition effort was maintained. The investment ratio in 2020 was 0.9. In terms of land acquisition methods, land reserves are obtained in a diversified manner. It will help expand markets outside Beijing for the first time, expand the scale, and reduce the cost of land acquisition.
3. The advantage of financing costs is significant, but the growth rate of interest-bearing debt is limited under the “three red lines” constraint
In 2020, the interest-bearing debt of the first stock was mainly long-term loans. The growth rate of short-term interest-bearing debt was steady, but the short-term cash debt ratio (strict version) was only 0.89, and there was some pressure on short-term debt repayment. Financing costs have always remained low, but hitting all three red line indicators will limit the growth rate of interest-bearing debt for first-time shares in the future. Reducing leverage may be the primary goal of enterprises in the future.