On March 31, Xingsheng Business Management Co., Ltd. (hereinafter referred to as “Xingsheng business”, stock code: 6668. HK) held an online conference on 2021 annual performance. In 2021, Xingsheng commercial realized a revenue of about 572 million yuan, a year-on-year increase of about 29.5%; The gross profit was about 330 million yuan, a year-on-year increase of about 32.9%, and a number of key performance indicators achieved strong growth.
At the meeting, Huang Delin, executive director and chairman of the board of directors of Xingsheng business, said: “in the face of the continuous changes in the external market environment, Xingsheng business should find the right position, give full play to its core competitiveness, ‘dare to think’, ‘dare to change’ and ‘dare to do’. Adhering to the purpose of ‘becoming one, one is better than another’, we should build a shopping center that is suitable for us, suitable for the market, with attitude, temperature, strength and profit.”
net profit increased by 45.8%
In 2021, the financial data of Xingsheng business increased against the trend, the revenue and gross profit increased year-on-year, and the profit attributable to the group owner was about RMB 185 million, with a year-on-year increase of about 45.8%.
Among them, the gross profit margin remained at a high level. In 2021, the gross profit margin reached 57.7%, a year-on-year increase of 1.4 percentage points, and the net profit attributable to the parent company reached 32.3%, a year-on-year increase of 3.6 percentage points. The board of Directors proposes to pay a final dividend of HK $0.10 per share for the year ended 31 December 2021 at a dividend rate of 45%.
In terms of cash flow, the operating net cash flow of Xingsheng commercial exceeded the net profit. In 2021, Xingsheng commercial realized an operating net cash flow of 200 million yuan, with a year-on-year increase of about 49.4% and a net cash ratio of 1.1% By the end of 2021, Xingsheng’s commercial cash balance was 1.27 billion yuan.
rental rate maintained at 94%
In addition to the steady growth of performance in 2021, as a commercial property operation service provider in Dawan District, Xingsheng commerce is also very proud of its commercial territory development.
During the reporting period, Xingsheng commercial entered into contracts to provide services to 84 commercial property projects (including 32 consulting service projects), covering 25 cities in China, with a total contracted construction area of about 3.9 million square meters (excluding the area of 32 consulting service projects), of which 62.4% were developed or owned by independent third parties. As of December 31, 2021, Xingsheng commercial has 24 projects in operation, with an area of 1.82 million square meters.
Among them, the newly added contract area of Xingsheng business is 660000 square meters, and the newly added contract area contributed by related parties is 238000 square meters, of which the project area from related parties and third parties accounts for 36% and 64% respectively. Throughout the year, Xingsheng commerce signed a total of five commercial operation service agreements for third-party projects, with an additional contract area of 421000 square meters.
The reporter learned that during the year, Xingsheng commerce successively established cooperation with Shanghai Construction Group Co.Ltd(600170) group, Xiamen special room group and Guangzhou Libai group, and successfully signed five third-party projects, including Rizhao Xinghe ICO, Xiamen Xinghe coco Park, Guangzhou Jiankang port Xinghe coco Park, Guangzhou Conghua Haiyin Xinghe ICO and Zhanjiang Xinghe coco city.
So far, this figure has increased. In the first quarter of 2022, three new third-party projects were signed, with a new contract area of 225000 square meters. The total contract area was further increased to 4.13 million square meters.
While expanding its territory, Xingsheng commerce also adheres to the project and market keeping pace with the times. Taking its benchmark project Shenzhen Futian Xinghe coco Park as an example, it is reported that the project was opened in 2006 and began the “open shop” transformation in 2017. It is carried out simultaneously through building upgrading and brand iteration.
After the completion of the iteration of Shenzhen Futian Xinghe coco Park in 2021, the sales volume of the project increased by 18% compared with the same period in 2019 (without the impact of the epidemic), and the rental rate increased to a high level of 98.8%.
The overall performance shows that in 2021, the commercial rental rate of Xingsheng remained at a healthy level of 94%, the number of cooperative merchants exceeded 4300, the sales of the whole line increased by about 33% compared with the same period in 2020, and the sales of the same store increased by about 21% compared with the same period in 2020.
2022 will open 8 new projects
In fact, in addition to the pursuit of scale, Xingsheng business also attaches great importance to quality development.
In order to ensure the shopping experience of consumers under the epidemic, Xingsheng commerce has built a 24-hour full time domain operation link with the official applet coco go as the carrier. It is reported that by the end of the year, the number of online fans of the applet had exceeded 3 million and the number of offline members had exceeded 2.4 million. Among them, the sales from members increased by 39.1% year-on-year, and the number of high-end card members increased by 79.6% year-on-year.
On this basis, in order to further optimize the user experience, in November 2021, Xingsheng Commerce launched the coco plus paid membership card, focusing on the integration of Xinghe’s own rights and interests, merchant gift certificate rights and interests and third-party rights and interests.
In the face of the new market and new situation in 2022, Xingsheng business also put forward the 12 character working policy of “taking the province to Baoding, promoting stability with stability and seeking progress in stability”, emphasizing the dual improvement of quality and efficiency and seeking progress in stability, so as to realize the sustainable and healthy development of the group.
Among them, Xingsheng business is expected to complete the new expansion contract area of no less than 700000 square meters in 2022, realize the dazzling opening of no less than 8 projects, and achieve the target rental rate of no less than 95%.
Looking forward to the future, Xingsheng business said that while maintaining its strategic concentration, it will build a benign development of “reserve a batch, sign a batch, open a batch and succeed a batch”, take consumers as the center and continue to create value for owners, brands and shareholders.
