"The market changes rapidly. Only change is the constant truth." Seazen Holdings Co.Ltd(601155) chairman Wang Xiaosong said bluntly at the company's 2021 annual performance meeting that it is inevitable for enterprises to meet market challenges. In 2022, China's economy still faces certain uncertainty, and the past model based on high leverage and high turnover is no longer applicable Seazen Holdings Co.Ltd(601155) face up to the new pattern of the industry, focus on stability and strive for progress in stability, adhere to the two wheel drive 2.0 strategy of "developing both light and heavy", operate steadily around "sales with return, profitable growth, quality products and services", and constantly "reduce occupation and increase capital".
The dual wheel drive strategy of "residential + commercial" has gone through more than ten years, and Seazen Holdings Co.Ltd(601155) has built a steady moat under the counter cycle of the industry. In 2021, its operating income was 168232 billion yuan and its net profit attributable to the parent company was 12.6 billion yuan; The total revenue from commercial operation reached 8.639 billion yuan, a year-on-year increase of 51%. Meanwhile, Seazen Holdings Co.Ltd(601155) actively responded to the "three red lines" policy, and all indicators reached the green level by the end of 2021, responding to market concerns with practical actions.
strong performance growth
Under the overall pressure of the industry, Seazen Holdings Co.Ltd(601155) operation remained stable, with a contract sales amount of 233775 billion yuan and a sales area of 235473 million square meters.
In 2021, Seazen Holdings Co.Ltd(601155) achieved an operating revenue of 168232 billion yuan, a year-on-year increase of 15.64%; The net profit was 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.
Seazen Holdings Co.Ltd(601155) with "focusing on sales, collecting funds and strengthening collection" as the core, the contract sales amount in 2021 is 233.8 billion yuan, and the annual collection amount is 238.7 billion yuan. The collection rate and collection rate are in the forefront of the industry, so as to truly achieve "sales with collection and collection" from the perspective of cash flow. In the sales amount of 233.8 billion yuan, by product type, the ratio of pure residential to commercial complex is about 7:3 According to the energy level of cities, it is mainly high potential cities, accounting for 44% of the first and second tier cities and 37% of the third and fourth tier cities in the Yangtze River Delta.
The steady growth of sales performance is inseparable from the "persistence" of its strategic layout, adhering to the regional deep cultivation strategy of deep cultivation in the Yangtze River Delta and focusing on other core urban agglomerations. In 2021, the Yangtze River Delta accounted for 53%, the central and western regions accounted for 28%, the Bohai Rim accounted for 15%, and the Great Bay area of Guangdong, Hong Kong and Macao accounted for 4%. Among them, Seazen Holdings Co.Ltd(601155) ranks among the top three provinces (municipalities directly under the central government) in Jiangsu Province and Tianjin.
By the end of December 2021, Seazen Holdings Co.Ltd(601155) land reserve is 138 million square meters. If deducting public supporting facilities, self owned Wuyue Plaza, sold but not settled, the full caliber saleable area is about 50-60 million square meters. Key cities include Tianjin, Suzhou, Kunming, Changzhou, Chongqing, Xuzhou, Huai'an and other places. The pure residential plot is close to 1:1 than the complex plot.
Good soil storage fundamentals will also bring more stable space for Seazen Holdings Co.Ltd(601155) development and ensure that it actively responds to market changes under different situations.
two wheel drive highlights its advantages
For a long time, Seazen Holdings Co.Ltd(601155) adheres to the "residential + commercial" two wheel drive strategy, complements the advantages of residential development and commercial operation, and jointly builds a stable moat.
While the sales of residential projects increased steadily, the development of Seazen Holdings Co.Ltd(601155) commercial projects also continued to improve. In 2021, Seazen Holdings Co.Ltd(601155) realized 8 billion yuan of tax free property rental and management revenue, accounting for 4.8% of the company's operating revenue; The gross profit of property leasing and management business is 5.8 billion yuan, accounting for 17.15% of the company's gross profit; The gross profit margin of property rental and management increased synchronously with the quantity and quality of Wuyue Plaza, reaching 72.64%.
In 2021, Seazen Holdings Co.Ltd(601155) further improved the nationwide layout of Wuyue Plaza, and the commercial scale and influence continued to expand. So far, Seazen Holdings Co.Ltd(601155) has set up 189 Wuyue squares in 135 large and medium-sized cities, which are deeply rooted in the Yangtze River Delta and nationwide, including 45 in Jiangsu Province, 16 in Zhejiang Province and 15 in Anhui Province. 55% of the projects are located in the first and second tier cities and high-quality third tier cities.
2021 is a year of precise regulation and comprehensive deleveraging of the real estate industry. The long-term mechanism of "housing without speculation" has been continuously improved, and the industry has gradually returned to the residential attribute. During the reporting period, Seazen Holdings Co.Ltd(601155) faced up to the new pattern of the industry, focusing on stability and seeking progress in stability. At the same time, continue to explore the sustainable development space of the industry, strengthen confidence, actively seek change, and continue to deepen the connotation of the "residential + commercial" two wheel drive strategy.
In the face of the challenge of the epidemic, 68 Wuyue squares in Seazen Holdings Co.Ltd(601155) still opened as scheduled in the past two years, of which 30 were newly opened in 2021. By the end of 2021, a total of 130 were in yingwuyue square, with an area of 12.48 million square meters of commercial buildings under management, achieving a total commercial operation revenue of 8.6 billion yuan, an increase of 51% over 2020. This is the best answer to the core competitiveness of commercial operation and management of the new city.
In addition, Seazen Holdings Co.Ltd(601155) implements the business model of emphasizing both importance and severity. In 2021, 16 asset light Wuyue squares will be newly expanded, with zero capital precipitation through the cycle. In 2021, there were 8 new asset light Wuyue squares, 4 of which were net land projects, namely Xiaogan Wuyue square, Suqian Sucheng Wuyue square, Huzhou Zhili Wuyue square and Zibo Jingkai Wuyue square, showing the company's strong asset light development and operation ability and realizing a complete closed loop of asset light operation.
As of March 25, 2022, Seazen Holdings Co.Ltd(601155) has accumulated 32 cooperative asset light projects, and sufficient business operation experience has also laid a solid foundation for the company to further expand its business.
For the future, Seazen Holdings Co.Ltd(601155) is full of confidence. Wang Xiaosong reiterated the strategic policy at the performance meeting. In the future, he will still adhere to the "residential + commercial" two wheel drive business model, adhere to the general tone of seeking progress while maintaining stability, adhere to the general strategy of regional deep cultivation, strengthen and deepen around the existing layout, adhere to the general focus of operation priority, adhere to the general guarantee of scientific and technological empowerment, and pay attention to the construction and improvement of risk management and control system, Let risk awareness run through the whole process of enterprise operation.
"competitive advantage of Wuyue model"
While expanding the scale, Seazen Holdings Co.Ltd(601155) breaks through the routine and realizes the iterative upgrading of Wuyue Plaza.
For example, the newly opened Nanjing Jianye Wuyue Plaza, combined with the city's cultural characteristics and geographical location attributes, has created a dynamic and diversified urban reception hall for consumers.
In the three days after opening, the total passenger flow is Shanghai Pudong Development Bank Co.Ltd(600000) person times and the total sales volume is 35.24 million yuan. The first brand in Hexi accounts for 25% and the first brand in Nanjing accounts for 10%.
Shenyang Shenbei Wuyue Plaza, as the first mall + X innovation pilot project, is positioned as a "new youth vitality center", introduces sports experience projects loved by young people, creates a one-stop flagship shopping center with the largest volume and the most complete business format in Shenbei, and upgrades regional consumer life through a new business model of "sports + social networking".
Over the years, the average occupancy rate of Wuyue Plaza has maintained a high level of 97% - 99%. From the perspective of the rent performance of the annual Plaza, by the end of 2021, 11 squares that have been open for more than five years have contributed a total rent income of 1.28 billion yuan, an increase of 15% in the same store; 30 squares opened for more than three years contributed a total rental income of 2.51 billion yuan, an increase of 13% in the same store; 89 squares opened within three years contributed a total rental income of 4.24 billion yuan, an increase of 115% in the same store.
The contribution of commercial operation is obvious. Where is the competitive advantage of "Wuyue model" Seazen Holdings Co.Ltd(601155) co president Qu Dejun summarized three aspects: the first is the business model, the second is to release the bureau first, and the third is the business development and operation ability. The core competitiveness lies in the connection of the three.
It said that the company's "residential + commercial" two wheel drive mode and Wuyue Plaza expansion mode of both weight and weight: the development business is the ballast for the deep cultivation of the company's area; Business management provides cash flow through the cycle and stable income. Collaborative development and mutual promotion among various business units are the most basic premise of the core advantages of the new town.
In addition, the first mover advantage provides guarantee for subsequent expansion: Seazen Holdings Co.Ltd(601155) has been distributed nationwide. Up to now, 189 Wuyue squares have been distributed in 28 provinces and 135 large and medium-sized cities, which has a great first mover advantage.
More importantly, Seazen Holdings Co.Ltd(601155) 's complex development and operation ability and team: it has a complete commercial real estate development and operation industrial chain from development to operation, which can effectively ensure the full opening of the project in about two years; According to the characteristics of different cities, accurately optimize the business positioning and create the business characteristics of Wuyue Plaza; The three-level structure of "headquarters - Region - Project" has a commercial operation management team with comprehensive commercial resource planning and management ability.
continuously reduce leverage
When the real estate industry enters the new normal, the safety awareness of real estate enterprises is much higher than the scale awareness. The risk control of Seazen Holdings Co.Ltd(601155) also allows them to calmly deal with the "new normal".
Seazen Holdings Co.Ltd(601155) actively responded to the "three red lines" policy, effectively prevented risks, and all indicators met the green requirements at the end of the year. According to the regulatory criteria, the asset liability ratio excluding advance receipts is 69.95%, the net liability ratio is 48.12%, and the cash short debt ratio is 1.07.
Hold high the banner of "safety awareness" and Seazen Holdings Co.Ltd(601155) reasonably control interest bearing liabilities. At the end of 2021, interest bearing liabilities were 89.9 billion yuan, down 1.8 billion yuan from 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.
The maturity of Seazen Holdings Co.Ltd(601155) open market debt in 2022 is 12.6 billion yuan, and 4.615 billion yuan has been repaid or prepaid from January to March, accounting for 37%. "In the future, we will make corresponding arrangements according to the maturity of funds and debts to ensure the due repayment of each debt." Wang Xiaosong said.
According to Wang Xiaosong, Seazen Holdings Co.Ltd(601155) has actively made two preparations to ensure the repayment of debts when they are due: on the one hand, on the premise of reasonably controlling the financing cost, pay attention to the opportunities of the open market and the revitalization of the assets of Wuyue Plaza; On the other hand, they should have the bottom line thinking of cash flow and be prepared to repay their own funds to ensure the due repayment of each debt.
"Due to the high interest rate of open market financing in the early stage, it does not meet the requirements of the company for financing cost. Now, with the improvement of the whole mortgage and development loan, the company is actively preparing for open market financing." Wang Xiaosong further said.
As of December 31, 2021, Seazen Holdings Co.Ltd(601155) the net operating cash flow was RMB 21.985 billion, with a year-on-year increase of 565718%. The operating cash flow has been positive for four consecutive years.
overall optimization of debt structure
With the support of abundant cash flow, Seazen Holdings Co.Ltd(601155) since the second half of 2021 has taken many measures to optimize the debt structure and boost the confidence of the market and investors, including early redemption of US dollar bonds, early cashing of medium-term notes, senior executives' purchase of corporate bonds in the secondary market, etc.
Last November, Seazen Holdings Co.Ltd(601155) early redeemed a $350 million bond due on December 16, 2021, which is also the first real estate enterprise to redeem the dollar bond in advance in the current A-share period. In February this year, Seazen Holdings Co.Ltd(601155) again redeemed a $200 million bond in advance and cancelled it.
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, based on the recognition of the company's development prospects and strategic planning, some directors and senior managers of Seazen Holdings Co.Ltd(601155) purchased 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 place. 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 the day of the release of the annual report, Seazen Holdings Co.Ltd(601155) announced that it planned to repurchase the company's shares with its own funds of no less than 100 million yuan and no more than 200 million yuan.
The company's steady business format also made Wang Xiaosong full of confidence in future development. At the performance meeting, he said frankly that "no winter will pass and no spring will come".
practice the green operation concept
In addition to the stable and good business performance, Seazen Holdings Co.Ltd(601155) also renamed the corporate social responsibility report as the sustainable development report for the first time, demonstrating its determination to the practice of sustainable development.
For a long time, Seazen Holdings Co.Ltd(601155) actively practiced the concept of sustainable development, incorporated it into the company's strategy and deeply integrated with the company's operation and development. Its parent company Xincheng development has established an ESG Management Committee in November 2020, forming an ESG management structure covering the board of directors, ESG Committee, ESG working group and various functional departments, and further strengthened the systematic and standardized management of sustainable development.
While gradually building a sustainable development management model with the characteristics of the new town, Seazen Holdings Co.Ltd(601155) also actively responded to the national strategy of "carbon peak and carbon neutralization", continued to practice the concept of green development, and accelerated the pace of progress in the fields of adhering to green management, promoting green construction, building green buildings and green commercial operation.
Adhere to green and low-carbon development, actively respond to the national goal of "carbon peak and carbon neutralization", and Seazen Holdings Co.Ltd(601155) invest to establish wusheng energy investment and management platform, focusing on the development, investment, construction, operation and maintenance of new energy.
The company's roof distributed photovoltaic power stations in four Wuyue squares, Shengzhou, Jiaxing Haiyan, Huzhou Nanxun and Cixi, have been completed and connected to the grid. The total annual power generation is 1.49 million kwh, and the annual carbon emission is reduced by 1540 tons. There are 87 roof distributed photovoltaic power station projects under construction in Wuyue square.
Last September, MSCI Mingsheng, the world's largest index company, announced the ESG (environmental, social and corporate governance) rating results of Seazen Holdings Co.Ltd(601155) . Based on its excellent performance in product safety and quality and corporate governance, MSCI raised the ESG rating of Seazen Holdings Co.Ltd(601155) to BB, which reflects the full affirmation of the capital market on the long-term investment value and ESG management level of the enterprise.
According to the MSCI report, Seazen Holdings Co.Ltd(601155) is ahead of its peers in terms of "product safety and quality" and "corporate governance". For a long time, Seazen Holdings Co.Ltd(601155) actively practiced the concept of sustainable development, built ingenuity quality, regarded quality as the magic weapon for the survival of the enterprise, and ensured that customers could enjoy safe and healthy products through multiple ways such as quality management system, quality supervision and inspection, quality culture construction and project quality control covering the whole life cycle.
It is worth mentioning that Seazen Holdings Co.Ltd(601155) also effectively integrates social responsibility into the sustainable development strategy of enterprises and strives to maximize the comprehensive value of economy, society and environment. Over the past year, Seazen Holdings Co.Ltd(601155) company continued to call on employees, customers and partners to participate in the implementation of new green action, and completed the strategic goal of one million green "new" wishes ahead of schedule, donated 100000 saplings in total, and completed about 1 million square meters of desert greening. At the same time, the upgrading goal of the new town puts forward the next "Five-Year Plan", which plans to "complete the greening of 5 million square meters of desert within five years".
