On April 11, Grandjoy Holdings Group Co.Ltd(000031) disclosed the annual performance report of 2021. In the report, it said that it would strengthen the de inventory in 2022 and strive to achieve a sales amount of 80 billion yuan.
Faced with the downward cycle of the industry, Grandjoy Holdings Group Co.Ltd(000031) adjusted its performance plan and no longer adhered to the scale of 100 billion for two consecutive years.
According to its original plan, 2021 is the key node for the company to achieve 100 billion sales. However, this year, the industry changed dramatically, with tighter financing, sales pressure and slower credit. Finally, it closed the “three-year 100 billion” strategy with 72.7 billion yuan of sales, an increase of 5% over 2020.
The new sales target of RMB 80 billion also means that Grandjoy Holdings Group Co.Ltd(000031) is still cautious about the expectation of the industry, “it is expected that it will take time for consumers to change their expectations in 2022, and there is a certain pressure on the development of the industry”.
turning losses into profits
In 2019, the Grandjoy Holdings Group Co.Ltd(000031) fighting spirit to complete the restructuring was high. Zhou Zheng, then chairman of the board, stressed his determination to break 100 billion in sales in 2021 at the performance meeting of that year. Subsequently, the company set the sales target of 90 billion yuan in 2020 and 100 billion yuan in 2021.
During this period, the Grandjoy Holdings Group Co.Ltd(000031) net profit that failed to achieve the sales target fell continuously, and its net profit in 2020 and 2021 was 1.123 billion yuan and 767 million yuan respectively, with a year-on-year increase of – 66.7% and – 31.65% respectively.
The company attributed the decline of net profit to the impairment provision of project assets. In 2021, affected by the impairment provision of inventory falling price reserves, bad debt reserves and fixed assets, the consolidated net profit of the company decreased by 2.135 billion yuan and the net profit attributable to the parent decreased by about 1.671 billion yuan.
Among all kinds of impairment, the amount of inventory falling price reserves is the largest. In 2021, in order to accelerate the withdrawal of funds, Grandjoy Holdings Group Co.Ltd(000031) according to the market conditions of different regions, take active sales and management measures such as price for quantity. Referring to the current market situation, it conducted corresponding impairment tests on projects in Qingdao, Tianjin, Jiangmen, Chongqing, Beijing and other places, and made a total provision for inventory falling price of 1.956 billion yuan.
Among them, Tianjin COFCO Avenue Project has been developed by stages, and some plots have been developed and delivered, but some plots have not been started due to changes in demolition policies. Under comprehensive consideration, the company decided to terminate the performance of the undeveloped land transfer contract and withdraw the inventory falling price reserve of about 747 million yuan.
Although the impairment of assets affected the net profit level of Grandjoy Holdings Group Co.Ltd(000031) , the net profit attributable to the parent company in 2021 was reversed due to the year-on-year increase in the performance contribution of sales settlement projects with high proportion of equity in the reporting period.
During the reporting period, Grandjoy Holdings Group Co.Ltd(000031) achieved a revenue of 42.614 billion yuan, an increase of 10.84% over 2020; The corresponding net profit attributable to the parent company was 108 million yuan, an increase of 127.79% over 2020. The net profit attributable to minority shareholders was 660 million yuan, accounting for about 86% of the consolidated net profit.
Meanwhile, due to the large number of low gross profit projects in the settlement projects during the reporting period, the company’s comprehensive gross profit margin was 27.44%, down 4 percentage points from 31.44% in 2020, and the gross profit also decreased by 3.28% year-on-year to RMB 11.692 billion.
During the reform period, the decline of gross profit margin of real estate development business has become an industry consensus. In 2021, the gross profit margin of Grandjoy Holdings Group Co.Ltd(000031) land development and sales business decreased from 27.76% in 2020 to 22.04%.
As an important driving force for performance growth, the gross profit margin of Grandjoy Holdings Group Co.Ltd(000031) investment property and related services increased by 2.5 percentage points to 64.05% year-on-year. Last year, the business contributed 5.048 billion yuan to the company’s revenue, accounting for 11.84% of the total revenue, slightly higher than that in 2020.
increase investment
In 2021, Grandjoy Holdings Group Co.Ltd(000031) totally acquired 6 commercial projects, including 1 heavy asset project and 5 light asset projects. According to the plan, the expansion number of asset light commercial projects of the company in 2022 will not be less than that in 2021, focusing on Beijing Tianjin Hebei, Dawan District, Yangtze River Delta and Chengdu Chongqing.
In the same period, the company opened 18 shopping centers (including light assets), including 15 Grandjoy Holdings Group Co.Ltd(000031) shopping centers and 3 Dayue chunfengli projects, with a total construction area of 4.101 million square meters. Meanwhile, 20 Grandjoy Holdings Group Co.Ltd(000031) , Dayue chunfengli, Xiangyun Town and non-standard projects are under construction or planned to be prepared.
In terms of new land storage, in 2021, Grandjoy Holdings Group Co.Ltd(000031) acquired 16 projects through equity acquisition and cooperative development, with an additional land area of 1.47 million square meters, an average floor price of 9659 yuan per square meter and an average premium rate of 16%, which is higher than 10.2% in 2020.
Therefore, although the number of new projects is less than that in 2020, the total land payment of the company in 2021 increased by 51.1% year-on-year to 31.6 billion yuan. Superimposed on the year-on-year increase of construction expenditure and tax expenditure of development projects, the net cash flow of operating activities in Grandjoy Holdings Group Co.Ltd(000031) 2021 was -8.464 billion yuan, a decrease of 186.24% compared with 2020.
This also led to the decrease of the company’s book monetary capital. In 2021, Grandjoy Holdings Group Co.Ltd(000031) held monetary capital of 24.886 billion yuan, a decrease of 21.65% compared with 31.764 billion yuan in 2020. In the same period, the company has short-term loans of 3.45 billion yuan and non current liabilities due within one year of 13.947 billion yuan.
By the end of last year, the balance of Grandjoy Holdings Group Co.Ltd(000031) interest bearing liabilities was 71.798 billion yuan, and the financing cost decreased to 4.91%. In terms of the “three red lines”, the company’s cash short debt ratio is 1.44, the net debt ratio is 90.06%, and the asset liability ratio after deducting the advance receipts is 70.31%, still stepping on the “line”.
Since the end of 2021, the rescue policies of the real estate market have been frequent, and the financing valve of M & A has been opened. In order to revitalize assets, the M & A loans related to the debt undertaking acquisition of the projects of the enterprises in danger will no longer be included in the relevant indicators of the “three red lines”.
This provides development opportunities for some enterprises.
In February this year, Grandjoy Holdings Group Co.Ltd(000031)
