Core ideas:
The company's sales volume reached 358.4 billion yuan in 2020, and its sales performance dropped slightly.
The investment-to-sales ratio of land investment is 0.9, which is slightly lower than that in 2019 (investment-to-sales ratio 1.1), and the overall investment is relatively sound. Overall net profit growth has slowed compared with the same period in 2019, and profitability has declined. By the end of 2020, the three red lines are still in red, and the overall financial situation still needs to be improved.
First, the sales performance continued to decline, and the return amount reached an all-time high.
In 2020, Greenland Holdings achieved sales of 358.4 billion yuan, down 7.63% from the same period last year, and the overall sales growth rate has continued to turn negative since 2019. In terms of structure, the proportion of residential sales by the company has increased to 76%, while that of commercial offices has dropped to 24%. The overall structure has been optimized, and the return amount has reached 308.9 billion yuan, a record high.
The company optimizes the investment structure and improves the investment quality. in 2020, the company acquired a total of 90 projects, with a new equity land area of 12.56 million square meters, an equity capacity construction area of 26.8 million square meters, and an investment-to-sales ratio of 0.9, which is lower than that in 2019 (1.1). The value structure of the company's newly acquired projects has been continuously optimized, and the proportion of goods value in first-and second-tier cities has increased to about 70%, which is significantly higher than that in the same period in 2019, and acquisition projects have gathered to high-level cities.
Second, the large-scale infrastructure business is growing rapidly, and the ability to raise funds and financing continues to strengthen the large-scale infrastructure business. In 2020, the infrastructure business continued to maintain a trend of rapid development, and its performance grew in an all-round way. Through cooperation with real estate, infrastructure business has undertaken a number of infrastructure projects in comprehensive development. Newly signed contracts totaled 610.3 billion yuan, an increase of 62 percent over the same period last year. The total operating income for the whole year was 233.4 billion yuan, an increase of 24% over the same period last year.
Third, business income has grown steadily, and profitability has declined.
In 2020, Greenland Holdings achieved operating income of 455.631 billion yuan, an increase of 6.53% over the same period last year, which was 16.26% lower than that of the same period in 2019. The growth rate was 6.53% over the same period last year, down 16.26 percentage points from the same period in 2019, and the growth of operating income slowed down. Among them, due to the increase in the proportion of the construction business due to the reduction of completed area, and the decline in gross profit margin of the superimposed real estate business, the company's overall gross profit margin fell to 14.41%, down 1.05 percentage points from 2019. In 2020, the company achieved a net profit of 21.14 billion yuan, an increase of 0.89% over the same period last year. The overall net profit growth rate was significantly slower than the 30.75% growth rate in the same period in 2019, and profitability still needs to be strengthened.
Fourth, three red lines "from red to orange", mixed reform to promote market-oriented transformation in order to fulfill the debt reduction requirements of the "three red lines" policy, Greenland Holdings revolves around the "three-year and three-step" deleveraging plan to reduce debt and deleveraging in a multi-pronged manner. As of the first quarter of 2021, the central bank regulatory benchmark with a cash-to-debt ratio of more than 1.0, the "one red line" turned green ahead of schedule, and the three red lines "changed from red to orange". In addition, with the continuous promotion of corporate mixed reform, the process of corporate marketization is expected to accelerate.