“The real estate industry has changed from surfing to sailing.”
Seazen Holdings Co.Ltd(601155) chairman Wang Xiaosong said bluntly at the company’s 2021 annual performance meeting that “waves” can be seen in the past. Now we have to move forward against the wind, but the “wind” is invisible and untouchable. How do we move forward? Only by relying on yourself and constantly improving your ability to find the right wind direction can you go up against the wind.
As a result, Seazen Holdings Co.Ltd(601155) has made various efforts to “cultivate internal skills” in 2021, tamped two rounds of business, further optimized the debt structure, achieved full green range, and spent a stable year.
According to the 2021 annual report disclosed in Seazen Holdings Co.Ltd(601155) disclosure, during the visible period, the total assets of the company reached 534293 billion yuan, and the net assets attributable to shareholders of listed companies reached 59.310 billion yuan, a year-on-year increase of 17.23%; The company achieved a sales amount of 233775 billion yuan, with a cumulative sales area of about 23547300 square meters, and the scale remained stable.
During the reporting period, Seazen Holdings Co.Ltd(601155) achieved an operating revenue of 168232 billion yuan, a year-on-year increase of 15.64%. The net profit attributable to the shareholders of the listed company was 12.598 billion yuan, deducting 10.245 billion yuan from the net profit not attributable to the parent company. The operating indicators and benefit indicators were also stable and upward.
The steady situation of the company and the stable position of real estate also make Wang Xiaosong full of confidence in the future of the industry. He said bluntly, “I believe that no winter will pass and no spring will come.”
performance increased steadily and financial fundamentals continued to improve
In 2021, the new city still maintained its strategic focus and growth driving force. The company focused on “focusing on sales, grasping payment collection and strengthening collection”. The annual contract sales amount was 233.8 billion yuan and the annual payment collection amount was 238.7 billion yuan. The payment collection rate and collection rate were in the forefront of the industry. The company truly achieved “sales with payment collection and sales with collection” from the perspective of cash flow.
Meanwhile, the company will add 329034 million square meters of completed area in 2021. As of the end of the reporting period, Seazen Holdings Co.Ltd(601155) at the end of the year, the contracted area to be carried forward was 342188 million square meters, and there were sufficient settleable resources to lock in future revenue and profits.
For a long time, Seazen Holdings Co.Ltd(601155) adheres to the “residential + commercial” two wheel drive strategy, complements and cooperates with the advantages of residential development and commercial operation, and constructs the core competitiveness of the company’s sustainable development.
According to the annual report, Seazen Holdings Co.Ltd(601155) achieved a total commercial operation revenue of 8.639 billion yuan in 2021, exceeding the set target of 8.5 billion yuan for the whole year, with a year-on-year increase of 51%. There were 30 Wuyue squares newly opened and managed in the whole year.
In 2021, the revenue from commercial property rental and management business in Xincheng increased by 46.6% year-on-year to 7.97 billion yuan. The gross profit margin of leasing and management continued to rise, with a year-on-year increase of 1.9 percentage points to 72.6%.
Sufficient marketable value supports the long-term improvement of performance. By the end of 2021, Seazen Holdings Co.Ltd(601155) has a total construction area of 138 million square meters of soil storage, of which 34.22 million square meters have been sold but not carried forward. The marketable value of the acquired land in 2022 exceeds 280 billion yuan, which is enough to meet the development and sales needs of the enterprise for 2 ~ 3 years.
In terms of regional distribution, the construction area in the central and western regions accounts for slightly as high as 39%, 37% higher than that in the Yangtze River Delta, and the Bohai rim and Dawan regions account for 19% and 5% respectively.
leverage continued to decline and capital structure was further optimized
In terms of finance, in 2021, Seazen Holdings Co.Ltd(601155) achieved a net profit of 13.8 billion yuan, with a compound growth rate of 22% in recent five years; The net profit attributable to the parent company was 12.6 billion yuan, with a compound growth rate of 20% in recent five years; Net profit deducted from non parent company is 10.2 billion yuan, with a compound growth rate of 20% in recent five years.
The company reasonably controlled interest bearing liabilities, with interest bearing liabilities of 89.9 billion yuan at the end of 2021, a decrease of 1.8 billion yuan compared with the end of 2020; At the same time, the interest bearing liabilities of equity in joint ventures are RMB 11.5 billion, which is transparent and safe. Of the total 89.9 billion yuan, 10.9 billion yuan is financed through Wuyue Plaza. There is still more room for revitalization in the future. The overall average financing cost of the company is 6.57%, which is 15 BP lower than that at the end of 2020.
With the overall growth of performance, Seazen Holdings Co.Ltd(601155) ‘s various debt indicators have also been continuously improved. In recent years, Xincheng took the initiative to implement “reducing leverage and optimizing capital structure” before the policy requirements. All indicators met the green requirements at the end of the year. Calculated according to the regulatory caliber, the asset liability ratio excluding advance receipts was 69.95%, the net liability ratio was 48.12%, and the cash short debt ratio was 1.07.
At the cash flow level, the new town also shows a more abundant trend.
The financing structure of the new town continued to improve, and the scale of trust loans decreased significantly for two consecutive years.
In November last year, Seazen Holdings Co.Ltd(601155) redeemed a $350 million bond due on December 16, 2021 in advance, which is also the first real estate enterprise to redeem the dollar bond in advance for A-Shares in the current period.
In February this year, Seazen Holdings Co.Ltd(601155) another $200 million bond was redeemed in advance and cancelled.
On March 9, Seazen Holdings Co.Ltd(601155) announced to complete the payment of the principal and interest of the resale capital of the public issuance of corporate bonds (phase I) (variety II) in 2019 and the due principal and interest of the first phase of medium-term notes in 2017 with its own funds in advance.
On March 18, Seazen Holdings Co.Ltd(601155) again announced that based on the recognition of the company’s development prospects and strategic planning, and in order to actively maintain the stability of corporate bond prices and effectively protect the interests of investors, Seazen Holdings Co.Ltd(601155) some directors and senior managers will purchase the corporate bonds issued by Seazen Holdings Co.Ltd(601155) in the secondary market in a market-oriented manner in accordance with the trading rules of the trading market. According to the plan, Seazen Holdings Co.Ltd(601155) management plans to purchase corporate bonds with a total scale of no more than 20 million yuan.
On March 30, Seazen Holdings Co.Ltd(601155) announced that it planned to buy back the company’s shares with its own funds of no less than 100 million yuan and no more than 200 million yuan.
While reducing leverage and optimizing the capital structure, while maintaining a safe, steady and high-quality growth trend, the business performance of the new city has been continuously recognized by international institutions.
During the reporting period, the three major international rating agencies maintained the main ratings of Seazen Holdings Co.Ltd(601155) and its parent company Xincheng development.
Among them, Fitch and S & P’s long-term issuer rating is “BB +” and Moody’s business family rating (CFR) is maintained at “BA1”, both of which are at a high rating level in the industry. Both China integrity international and united credit maintained AAA ratings of Seazen Holdings Co.Ltd(601155) entities and related debts. China integrity Asia Pacific also raised Seazen Holdings Co.Ltd(601155) ‘s overseas long-term credit rating to bbbg, with a stable outlook.
carry forward the past and forge ahead
In 2021, Seazen Holdings Co.Ltd(601155) newly signed 32 Wuyue squares, including 16 asset light projects, accounting for nearly half. By the end of the year, 188 Wuyue squares had been arranged in 135 cities, and a large-scale national commercial territory had been established. During the year, 30 new Wuyue squares (including 4 entrusted projects in operation) were opened, and the goal of opening 30 in 2021 was successfully completed, including 8 new asset light projects, and the cumulative number of Wuyue squares in operation has reached 130. In 2022, the enterprise plans to open another 25 Wuyue squares to further expand its business territory.
Under the guidance of the general tone of “housing, housing and non speculation”, increase support for rigid demand and improve housing demand, and the market is expected to return to a stable state and move towards a virtuous circle. Real estate enterprises should focus on fine management, improving quality and efficiency, simultaneously renting and selling, and making efforts through multiple channels, so as to realize the balanced and steady development of scale, benefit and risk.
In this context, the company will adhere to the “light and heavy” two wheel drive 2.0 strategy, focus on the steady operation of “returned sales, profitable growth, quality products and services”, and constantly “reduce occupation and increase capital”; Vigorously promote the construction of asset management capacity, use mature property development and business management experience, and introduce equity investors at the project end to share benefits and risks, so as to further improve financial security while helping the sustainable development of the company.
At the same time, the company will continue to think and strive to improve customer service quality in the process of strategic deepening, do a good job in product adaptation around customer needs, pay attention to customer experience and customer position, provide differentiated products and services, and achieve good brand reputation and brand premium. The company will further strengthen organizational coordination, adhere to long-term ism, do difficult and correct things, run the attitude of manufacturing and service industry through all links of project development and business management, and do a good job in products and services with the way of lean management.
The management of the new town said at the performance meeting that the company still adheres to the business model of “residential + commercial” two wheel drive, adheres to the general tone of seeking progress while maintaining stability, adheres to the general strategy of regional deep cultivation, strengthens and deepens around the existing layout, adheres to the general focus of operation priority, adheres to the general guarantee of scientific and technological empowerment, pays attention to the construction and improvement of risk control system, and makes risk awareness run through the whole process of enterprise operation.
