"I believe that no winter will pass and no spring will come." On March 31, at the 2021 annual performance meeting of Seazen Holdings Co.Ltd(601155) ( Seazen Holdings Co.Ltd(601155) . Sh, hereinafter referred to as " Seazen Holdings Co.Ltd(601155) "), Wang Xiaosong, chairman of the company, pointed out that the change of the whole real estate industry is the constant truth. In the past half year, the real estate industry has experienced unprecedented challenges, Seazen Holdings Co.Ltd(601155) as well.
On March 30, Seazen Holdings Co.Ltd(601155) released the annual report of 2021. According to the data, in 2021, Seazen Holdings Co.Ltd(601155) achieved a sales amount of 233775 billion yuan, a cumulative sales area of about 235473 million square meters, and an operating revenue of 168232 billion yuan, a year-on-year increase of 15.64%; During the reporting period, the net profit attributable to the parent company was 12.598 billion yuan, and the net profit not attributable to the parent company was 10.245 billion yuan. By the end of the reporting period, the total assets of the company had reached 534293 billion yuan, and the net assets attributable to shareholders of listed companies had reached 59.310 billion yuan, a year-on-year increase of 17.23%.
Under the dual objectives of steady growth and risk prevention, where will real estate go? Wang Xiaosong has his own thoughts on this. He believes that the macro policy will continue to make efforts to moderately reduce reserve requirements and interest rates. As a pillar industry, real estate still needs to play the role of stabilizer. Under the guidance of the general tone of no speculation in housing and housing, the regulatory policy may be partially relaxed, and the support for the just needed improvement of housing demand will be strengthened. The market is expected to return to a stable state and move towards a virtuous circle.
Therefore, Wang Xiaosong firmly believes that Seazen Holdings Co.Ltd(601155) should focus on fine management, improving quality and efficiency, simultaneously renting and selling, and make efforts through multiple channels to realize the balanced and steady development of scale effect and risk.
In this context, the development idea of the new town still adheres to the "residential + commercial" two wheel drive mode, and adheres to the two wheel drive 2.0 strategy of both light and heavy.
For the commercial sector concerned by investors, Wang Xiaosong made a detailed disclosure at the performance meeting. In recent years, the proportion of Seazen Holdings Co.Ltd(601155) business management business has continued to increase. In 2021, Seazen Holdings Co.Ltd(601155) achieved a total commercial operation revenue of 8.6 billion yuan, the gross profit of property rental and management business accounted for 17.15% and the gross profit margin was 72.64%. The new town business adopts the business model of both light and heavy. In 2021, 18 new asset light Wuyue squares and 16 newly expanded asset light Wuyue squares entered the entrepreneurial cycle of zero asset and zero capital precipitation. In 2022, the business objectives of the new town business include the opening of 25 Wuyue squares, with a total commercial operation revenue of 10.5 billion yuan.
At the 2020 performance meeting, Wang Xiaosong predicted that the real estate industry has changed from surfing to sailing. This year, he has a deeper interpretation of this: waves can be seen, but the wind can't be seen. Only by constantly improving their ability and finding the right wind direction can they go up against the wind.
Out of the perception of the market downturn, Seazen Holdings Co.Ltd(601155) in the fourth quarter of 2021 consciously strengthened the sales of cash back, and successively gave certain discounts to the projects under pressure. In the fourth quarter of 2021, the monthly sales of Seazen Holdings Co.Ltd(601155) were more than 20 billion. However, the average selling price and profit margin of houses are also affected accordingly. In 2021, Seazen Holdings Co.Ltd(601155) annual settlement gross profit margin was 20.45%, and real estate development and sales gross profit margin was 17.68%, 4.06 percentage points lower than that in 2020. Wang Xiaosong pointed out that maintaining cash flow is the first priority. The gross profit margin level of the industry will undergo a gradual repair process at the current trough.
To this end, Seazen Holdings Co.Ltd(601155) has made efforts to improve capital efficiency. In the past two years, the company has actively responded to the policy of three red lines. By the end of 2021, all indicators have met the requirements of green file. According to the calculation of regulatory caliber, the asset liability ratio of advance collection is 69.9%, the net debt ratio is 48%, and the cash short debt ratio is 1.17. In 2021, the rating of the company by domestic and foreign rating agencies remained basically stable. On this basis, the overall average financing cost of the company was 6.57%, a decrease of 15 BP compared with the end of 2020. From the industry level, the difficulty of direct financing has increased. Facing the adverse market environment, Seazen Holdings Co.Ltd(601155) while strengthening cash control, it is also actively carrying out the replacement of maturing bonds. In December 2020, we successfully issued 4-year US dollar bonds with a coupon rate of 4.8%, and in January 2021, we successfully issued 5.25-year US dollar bonds with a coupon rate of 4.5%.
The continuous decline of bond issuing interest rate and the continuous lengthening of bond duration reflect the optimization of Seazen Holdings Co.Ltd(601155) debt structure and the improvement of financial security to a certain extent. For example, among the interest bearing liabilities of 89.9 billion yuan, Seazen Holdings Co.Ltd(601155) takes the development loans of product segment banks as the main body, accounting for 43.8 billion yuan, operating property loans of 5.2 billion yuan, US dollar bonds of 13.9 billion yuan, domestic corporate bonds of 6.2 billion yuan, ABS and CMS of 6.6 billion yuan, medium note PPI of 5 billion yuan and trust loans of 9 billion yuan.
Seazen Holdings Co.Ltd(601155) senior vice president and financial officer Guan Youdong disclosed that the company currently has no other undisclosed private US dollar debt and employee financial management. In the joint venture, the interest bearing liabilities attributable to Seazen Holdings Co.Ltd(601155) equity are 11.5 billion yuan, the total amount of interest bearing liabilities is controllable, all debts are clear and transparent, and the safety is generally guaranteed.
