Country Garden's financial security in the first half of the year enhances short -term debt repayment and worry -free

Zhongxin Jingwei, August 31st. At present, the challenges facing the real estate industry are still intensifying. Some people in the industry even think that 2022 is the most difficult year in the real estate industry in 30 years. On August 30, Country Garden released the mid -term performance in 2022, showing that the company achieved a sales equity contract sales of 185.1 billion yuan in the first half of the year, and the sales area of ​​equity contracts was 23.48 million square meters, a decline in the year -on -year, but the sales scale still ranked first in the industry.

What is rare is that in the context of media statistics, there are currently more than 50 real estate companies' pre -losses in the first half of the year, Country Garden is still rare to achieve company profitability. At the same time, the company's cash flow remains stable, the scale of liabilities continues to decline, and can use abundant funds and further enhance financial security.

Faced with the "cold wave" that lasted more than a year in the industry, the one -sided pursuit of scale growth and profit performance were unrealistic. It was trying to "survive" to thicken cash flow safety pads. Essence Mo Bin, the president of the group, said at the performance conference: "The industry will still be a market with a healthy and scale under the long -term mechanism that exceeds 10 trillion, and there will be more opportunities for companies to survive."

The cash flow remains stable, the total loan balance and financing cost realize the "double drop"

Although the policy regulation has become loose since March, there have been no signs of recovery in the real estate market at the bottom stage. Data released by third-party agencies Ke Rui showed that from January to June 2022, the cumulative sales of the top 100 housing companies decreased by 51%year-on-year, and 100 billion housing companies "disappeared". Relatively speaking, Country Garden's equity sales declined by 39%in the first half of the year, below the average level of the top 100 housing enterprises, showing strong toughness.

The market continues to be sluggish, the liquidity crisis of housing companies has intensified, and housing companies have actively reduced leverage, regulate structure, and ensure the safety of corporate cash flow. According to the financial report, the company's cumulative realization of equity repayments in the first half of the year was about 170.29 billion yuan, and the rate of equity sales was 92%, and the rate of 7 -year payment was maintained by more than 90%. During the same period, Country Garden realized the net operating cash flow, and the net cash inflow was about 5.3 billion yuan, indicating that the company can effectively cover operating expenses only by its own business repayment without relying on external loans, highlighting its excellent operating capabilities.

As of June 30, 2022, the company's total loan balance further decreased from 317.92 billion yuan at the end of last year to 293.68 billion yuan, a decrease of 7.6%compared to the end of last year. During the period, Country Garden's net debt ratio was 48.1%, which maintained below 60%for many years, and continued to stabilize at a lower area of ​​the industry. The short -term debt repayment is worry -free; the asset -liability ratio of the pre -collection accounts has also decreased from 81%in the middle of 2020 to 72%in the mid -2022 period, which is only one step away from the regulatory requirements of "no more than 70%". This year, the company has no overseas US dollar priority notes expired, and only Tengyue can return to the company's debt of 4 billion yuan.

As of now, Country Garden is one of the few private housing companies that can make full -scale financing in the industry. Management revealed at the investor telephone meeting in mid -August that in the state of almost stagnation of the overseas capital market this year, the company has issued convertible bonds to 3.368 billion yuan, with sales of new shares equivalent to 2.41 billion yuan, totaling 5.778 billion yuan; from 2021 Since the second half of the year, the company's domestic debt and China tickets have been issued with a total of 6.1 billion, the supply chain ABS and ABN have a total of 8.7 billion. Public information shows that Country Garden's 5 billion yuan of votes in the interbank market dealers' association has also been approved, and the opportunity will be issued. During the reporting period, Country Garden's comprehensive financing cost remained stable, of which domestic financing costs continued to decline from the end of 2019. By this year, the CCP fell 124 basis points, which was at a low level in the industry.

Recently, there are market sources saying that the Chinese regulatory authorities plans to be newly issued by the RMB bonds of state -owned enterprises' guarantees and underwriting demonstration of real estate companies. Among them, housing companies such as Longhu and Country Garden have been included in the consideration. Country Garden said that with the support of the dealer association and the China Bond Credit Credit and Credit Recharge Guarantee, the issuance of Chinese tickets is currently being promoted. According to Wind data, as of August 17, 2022, the shareholding ratio of Country Garden Hong Kong Stock Connect is 2.58%, which has reached a record high since the opening of the Hong Kong Stock Connect. A basis.

Precision investment layout and refined financial management and control, 250,000 houses were delivered in the first half of the year

During the decline in the market, the challenges faced by sales of low -line cities have attracted much attention. However, from the perspective of Country Garden's financial report data, the wide and balanced project layout of the country has effectively hedged the market differentiation and serious epidemic affair, and at the same time enriched Sales resources help enterprises in response to the trend, quickly adjust the pace of push disk and ensure supply demand.

As of June 30, 2022, the total number of projects signed or delisted in the group has 3179 projects, and its business spreads throughout 31 provinces/autonomous regions/municipalities in Mainland China, 298 prefecture -level administrative divisions, and 1412 counties/towns. As of the end of June 2022, Country Garden, which has been obtained in Mainland China, has a total of about 1.22 trillion yuan in equity sale resources, and there are also about 291.7 billion potential equity sale resources, totaling about 1.51 trillion, which can support the company's future sales needs.

The interim report shows that in Country Garden's sales in the first half of the year, the decline in the third and fourth -tier markets was significantly lower than first- and second -tier cities. The overall sales proportion of third- and fourth -tier sales also increased by 1 percentage point to 69%. Among the cities that the company laid out, the market share of 155 cities exceeded 5%, of which the market share of 17 cities was higher than 20%. Source: Country Garden 2022 mid -term performance report

As of the end of August, the destination rate of the project equity of the project equity of the Hengli Country Garden Songhu Pearl project reached 91%, Anqing Country Garden and Zhongshan Country Garden Phoenix all reached 79%. 75%, which indicates that even in the third and fourth -tier markets that are generally not optimistic, Country Garden also relies on precise layouts to find development opportunities in a differentiation market.

In addition, 96%of the existing equity sale resources of Country Garden are located in areas with more than 500,000 permanent population; 77%are located in the population inflow area; 75%are located in the five major cities including the Yangtze River Delta, the Pearl River Delta, the Bohai Rim, the middle reaches of the Yangtze River, and Chengdu -Chongqing. The circle is well fits the development strategy and population flow trend of major national regional regional regional.

Cheng Guangyu, executive vice president of Country Garden, said that the company emphasizes the balanced layout of first -to -five cities. Where there is a market, or where the market is relatively certain, and the efficiency of its own operation is relatively high, wherever the efficiency is, it will be configured. "Country Garden will adhere to a reasonable direction in the second half of the year, and invest in corresponding investment in a more certain market and a market where population flows."

Under the test of the industry cycle, those companies with solid foundation and deep internal skills can often survive after the ebb to retreat and gain greater development space. Mo Bin, president of Country Garden Group, introduced that the company focused on ensuring the balance of cash flow, balance sheet and profit. At the same time, the company also repaid some high -cost and short -term financing through operating cash flow, further optimizing the debt structure.

At the income end, Country Garden continued to emphasize the efficiency of the payment, the average mortgage loan days accelerated 19 days year -on -year, and the number of newly signed equity replies increased by two percentage points, which has rejected 6.9 billion yuan in the rejuvenation of large assets in the first half of the year. At the expenditure side, the company strictly carried out the restoration of the work, strictly controlled the volume of construction from the source, and truly achieved "selling production". In the first half of the year, the company's sales management costs decreased by 36.3%year -on -year.

Mo Bin introduced that in terms of cash flow management, the company carried out the rolling layout of the weekly capital plan in the short term, leaving enough safety pads to cope with external uncertainty; in the middle and long term, through the layout of the cash flow plan for the next 12 months, The risk points that may be encountered in the future are considered into consideration, and the ultimate pressure test is performed. At the same time, rolling updates per quarter, so that the company has enough time and space to respond to possible phased phase fluctuations.

In the first half of 2022, Country Garden had a total of 1070 batches and 250,000 houses delivered as scheduled, and another 165 projects realized the delivery of permits. According to incomplete statistics from third parties (Leju Finance "The List of Real Estate Delivery in the First Half of 2022"), Country Garden delivery exceeds the sum of other housing companies that have been disclosed in the top five, which is not easy in the current market environment. The operation shows the company's outstanding operating strength and the responsibility and responsibility of the first real estate enterprise, and also inject confidence in the industry.

Since July, the real estate credit environment has continued to improve, and "insurance delivery" measures have been introduced in many places. On August 22, the LPR of more than 5 years lowered 15 basis points. The first securities analyst believes that high -quality enterprises will still usher in a new round of opportunities to grow steadily, and the industry will gradually enter the healthy reversal stage of whether it is extremely. In view of this, many institutions such as the first securities, Huatai Securities, and Shen Wanhongyuan have recommended to continue to pay attention to high -quality housing companies such as Country Garden.

"Artificial Command" becomes "system command", and the science and technology construction system has accelerated landing

The in -depth adjustment of the real estate market has exceeded one year, and the market size has shrunk significantly. In the second half of the competition of housing companies, while thinking about stabilizing the basic disk, all companies need to think about future performance growth points. As a leader in the industry, Country Garden chooses to rely on the independent research and development science and technology construction system to expand the construction of the agency construction, and make hundreds of trillion -scale construction markets.

China has the largest construction market in the world. According to data from the State Bureau of Statistics, the total output value of the national construction industry in 2021 was 2.931 trillion yuan, but the industry was large but not excellent. In the past two years, the Ministry of Housing and Urban -Rural Development and other departments have launched pilots in intelligent construction in some cities to guide the development of new industries such as intelligent construction and construction robots.

Following the direction of national policy, Country Garden began to deploy new business tracks such as the science and technology construction system and upstream and downstream industrial chains four years ago. At present, it has established new technologies such as BIM digitalization, new prefabricated, and automatic construction robot construction. The new system, realize the entire process of "research and development-production-application", build a full cycle management platform for scientific and technological construction projects, turn the traditional "manual command" into high-tech "system command", and actively expand the management of the construction of the agency construction market. , Leading the industrialization and intelligent level transition.

As of July 2022, Bo Zhilin, a subsidiary of Country Garden, had 30 construction robots into commercial applications, covering more than 550 projects in 28 provinces; over 1200 units were delivered, with a cumulative application of over 10 million square meters, and began to begin. Multi -machine collaboration pilot application. As of now, Bo Zhilin has submitted more than 3,700 patents and has been authorized for more than 2,000 items. Related robot technology has won five internationally advanced and international advanced comprehensive evaluations in national scientific and technological achievements appraisal. The ground leveling the robot is not afraid of scorching day operations

Compared with the traditional construction system, the science and technology construction system has significant advantages in terms of safety, quality, and efficiency. At the same time, it also responds to the national "dual carbon" planning. Through standardized construction, accurate calculations and other technologies, reduce the consumption and waste of building materials to help the industry sustainable development. For example, Bozhilin mobile brick -making vehicle can be transformed into useful building waste materials into renewable building materials products that meet the requirements, reducing dust pollution and transportation emissions. As of now, the product has accumulated 450 tons of construction waste, and has produced more than 200,000 pavement bricks.

Mo Bin said at the performance conference: "Our comprehensive application of the Department of Robot and Science and Technology Construction through the main business of real estate through the Department of Science and Technology Construction. I believe that in the future market, it can play a greater role and create greater value. "(Zhongxin Jingwei APP)

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