On March 30, Shenzhen Overseas Chinese Town Co.Ltd(000069) ( Shenzhen Overseas Chinese Town Co.Ltd(000069) . SZ, hereinafter referred to as ” Shenzhen Overseas Chinese Town Co.Ltd(000069) “) issued the annual report for 2021.
According to the annual report, in 2021, Shenzhen Overseas Chinese Town Co.Ltd(000069) achieved an operating revenue of 102584 billion yuan, an increase of 25.25% over the same period in 2020; The net profit was 3.799 billion yuan, a year-on-year decrease of 70.05%; Deduction of non net profit decreased by 76.29% year-on-year to RMB 2.297 billion; The net cash flow from operating activities was 19.238 billion yuan, a year-on-year decrease of 9.34%.
“The company’s operation has encountered challenges, but its development foundation has been consolidated.” Shenzhen Overseas Chinese Town Co.Ltd(000069) chairman and party secretary Duan Xiannian commented in his speech in the annual report. It further said, “in the past year, the real estate industry has experienced in-depth adjustment, the tourism industry has been impacted by the epidemic, the company’s business has also been deeply affected, and the overall profit has decreased due to the reduction of high gross profit real estate projects. However, the operating revenue has maintained double-digit growth, and the results of high-quality development have been shown.”
Referring to the business plan for 2022, Shenzhen Overseas Chinese Town Co.Ltd(000069) said that innovative product research and development should be fully carried out in the cultural tourism business, and secondly, cultural tourism projects should be fully managed; In terms of real estate business, actively promote the market, accelerate the de industrialization, pay attention to key areas and high-quality resources, and use a variety of means to improve the management level. At the same time, we will continue to promote the transformation of Internet business and digitization, accelerate the construction of platform and improve the capacity of traffic management.
tourism business revenue unchanged from the previous year
According to the annual report, Shenzhen Overseas Chinese Town Co.Ltd(000069) is mainly engaged in cultural tourism and real estate.
In 2021, Shenzhen Overseas Chinese Town Co.Ltd(000069) tourism comprehensive business revenue was 43.317 billion yuan, basically the same as that in 2020, with a year-on-year increase of 0.25%, accounting for 42.23% of the company’s overall revenue, a decrease (52.76% in 2020); The gross profit margin was 32%, a year-on-year decrease of 10 percentage points.
According to the disclosure, in 2021, Shenzhen Overseas Chinese Town Co.Ltd(000069) has 27 scenic spots, 28 hotels, 1 travel agency, 7 open tourist areas and 1 Tourism Performing Arts, which received a total of 77.979 million tourists, 182% of the level in 2020 and 150% of that in 2019; Excluding the newly added projects in 2021, it will be 117% in 2020 and return to 96% in 2019.
In the past year, Shenzhen Overseas Chinese Town Co.Ltd(000069) took the festival as the starting point to expand brand communication and create cultural tourism combination products. At the same time, it launched new business forms and products such as “Bay light” Ferris wheel of Shenzhen happy harbor, Xiangyang Qiqu childhood parent-child paradise, Maya beach water park of Xi’an Happy Valley, Xiangyang Yunhai Hotel, Yunhai Tangquan and so on.
On the other hand, Shenzhen Overseas Chinese Town Co.Ltd(000069) also renovated and upgraded classic projects, such as improving the overall style and key product quality of Shenzhen OCT tourist resort and Eastern OCT tourist resort. Among them, the transformation and upgrading of Shenzhen OCT tourist resort has been incorporated into the 14th five year plan of Shenzhen Nanshan District and the key work of the government. In addition, Shenzhen Overseas Chinese Town Co.Ltd(000069) increased support for the development of cultural and creative industries and continued to strengthen investment in IP R & D and application.
Shenzhen Overseas Chinese Town Co.Ltd(000069) said in the annual report that it would adhere to the innovative development model of “culture + tourism + urbanization”, improve the energy level of the cultural industry, expand the influence of tourism products, and further promote the construction of a new type of urbanization suitable for living, industry and tourism by integrating life, production and ecology; We should implement the innovative development mode of “tourism + Internet plus finance”, and build up a new way to realize value.
By the end of 2021, Shenzhen Overseas Chinese Town Co.Ltd(000069) held 67.6 billion yuan of monetary capital, an increase of 7.1 billion yuan over the beginning of 2021; Monetary funds accounted for 14.08% of total assets, an increase of 12% over the beginning of 2021. By maintaining the relative balance of project expansion, sales collection and external financing, the company’s operating cash flow is healthy and stable, and has continued to maintain a net inflow since 2020.
In terms of financing, Shenzhen Overseas Chinese Town Co.Ltd(000069) in 2021, by comprehensively using various means such as direct financing, bond issuance, equity financing, bond guarantee plan and supply chain financing, it has achieved financing of 58.625 billion yuan, with an average financing cost of 4.46%.
real estate sales of 82.5 billion yuan
In 2021, Shenzhen Overseas Chinese Town Co.Ltd(000069) ‘s other main business – real estate business revenue increased by 58% year-on-year to 58.961 billion yuan, accounting for 57.48%, and the gross profit margin decreased by 38 percentage points year-on-year to 21%; The total contracted sales area is 3.99 million square meters, and the contracted sales volume is 82.5 billion yuan.
It is worth noting that in 2021, the operating cost of Shenzhen Overseas Chinese Town Co.Ltd(000069) real estate business increased by 206.12% year-on-year to 46.369 billion yuan, accounting for 61.2% of the company’s overall operating cost, an increase of about 25 percentage points over 2020.
For the decline in the profitability of the real estate business, Shenzhen Overseas Chinese Town Co.Ltd(000069) explained that there are four main reasons. First, the overall gross profit margin of the industry shows a downward trend due to the impact of the real estate regulation policy; Secondly, the internal carry forward structure of the company changed. The high gross profit projects of Shenzhen headquarters were basically carried forward, resulting in the decline of the gross profit margin of the carried forward projects this year; Thirdly, in order to ensure the safety of funds, the real estate companies in the industry tend to adopt a more conservative investment strategy, Shenzhen Overseas Chinese Town Co.Ltd(000069) the investment income realized through equity transfer has decreased significantly compared with the previous year; Finally, in order to ensure a more stable development in the follow-up, the company, in accordance with the principle of prudence and after careful evaluation, accrues impairment for some inventories and other assets that are affected by market uncertainty and have signs of impairment.
According to the annual report, the provision for asset impairment of Shenzhen Overseas Chinese Town Co.Ltd(000069) accrued in 2021 was 2.124 billion yuan and 849 million yuan in 2020.
In the past year, Shenzhen Overseas Chinese Town Co.Ltd(000069) newly acquired 23 projects, with a new land area of 2.58 million square meters and a total capacity of 4.35 million square meters. The company said that among the land projects acquired during the year, 15 projects were delisted at or near the reserve price, effectively reducing the cost of land acquisition.
In terms of property management services, in 2021, Shenzhen Overseas Chinese Town Co.Ltd(000069) accumulated 4.42 million square meters of new property reserve management area and 3.73 million square meters of new property management area. At present, the company’s overall management project covers an area of more than 200 square kilometers, and the construction area under management exceeds 20 million square meters.
By the end of 2021, Shenzhen Overseas Chinese Town Co.Ltd(000069) had total assets of 480 billion yuan and owner’s equity of 120.8 billion yuan, with a year-on-year increase of 5% and 9% respectively. The total interest bearing liabilities of the company are 140.2 billion yuan, a decrease of 1.3 billion yuan compared with the beginning of 2021, accounting for 29% of the total assets. At the same time, Shenzhen Overseas Chinese Town Co.Ltd(000069) interest bearing liabilities are mainly medium and long-term liabilities, of which short-term loans and non current liabilities due within one year account for 20.2%, and long-term loans and bonds payable account for 79.8%.
In terms of asset efficiency, in 2021, Shenzhen Overseas Chinese Town Co.Ltd(000069) the total asset turnover rate was 0.22, an increase of 15% year-on-year; The inventory turnover rate increased by 70% year-on-year to 0.3; The overall development speed of the project was shortened from 5.26 years to 3 years.
