If you ask Huatian Hotel Group Co.Ltd(000428) ( Huatian Hotel Group Co.Ltd(000428) . SZ) how to turn losses into profits in 2021, the answer must be inseparable from the de capitalization of heavy assets.
On April 15, Huatian Hotel Group Co.Ltd(000428) disclosed the annual performance report of 2021. In 2021, the operating revenue was about 594 million yuan, an increase of 15.28% year-on-year; The net profit attributable to the shareholders of the listed company is about 84.23 million yuan; The basic earnings per share is 0.0827 yuan. Among them, Huatian Hotel Group Co.Ltd(000428) attributed the reasons for the performance profit to the improvement of the market environment, the strengthening of the company’s main business and the de capitalization of heavy assets.
Huatian Hotel Group Co.Ltd(000428) Securities Department said in an interview with Huaxia times that according to the three-year action plan announced by the company, the company will also adopt the asset light mode of brand output to expand in the future.
performance turning loss into profit
Since the covid-19 epidemic appeared, how to achieve year-on-year turnaround of performance should be one of the thorny problems of Huatian Hotel Group Co.Ltd(000428) . According to the data, the net profit of Huatian Hotel Group Co.Ltd(000428) has been in a state of loss since March 2020, of which the loss reached 513 million yuan in the annual report in 2020.
2021 is a turning year for Huatian Hotel Group Co.Ltd(000428) with multi period losses. During the reporting period, Huatian Hotel Group Co.Ltd(000428) turned losses into profits, with an operating revenue of 594 million yuan, including 545 million yuan from the hotel industry, accounting for 91.74% of the revenue; The asset operation income is 24 million yuan, accounting for 4.1% of the income; The income of living service industry is 25 million yuan, accounting for 4.16% of the income.
Huatian Hotel Group Co.Ltd(000428) the reasons for the annual performance growth are attributed to two aspects, mainly the improvement of the epidemic situation and the overall recovery of the hotel industry; On the other hand, it is the implementation of the “three-year action plan” to improve and strengthen the main business plan of the hotel. It is reported that Huatian Hotel Group Co.Ltd(000428) ‘s “three-year action plan” mainly focuses on main business operation, asset revitalization, new business expansion and deepening reform.
The reporter noticed in his annual report that Huatian Hotel Group Co.Ltd(000428) in the annual report, he focused on the part of heavy asset de capitalization. In terms of asset disposal, Xiangtan Huatian and Changchun Huatian were successfully transferred. The transaction consideration of the two projects amounted to 993 million yuan, and the equity transfer contributed about 400 million yuan to the investment income.
The Huatian Hotel Group Co.Ltd(000428) securities department also told the reporter of Huaxia times that the successful transfer of the above two projects accounted for a large proportion of the company’s net profit in 2021.
Judging from the situation of the capital market, the results of Huatian Hotel Group Co.Ltd(000428) caused a temporary pursuit of capital after being announced. At the close of the day on April 14, Huatian Hotel Group Co.Ltd(000428) quoted 4.48 yuan, an increase of 3.94%; However, the share price corrected on April 18, closing down 2.05% and offering 4.3 yuan.
In addition, although the annual Huatian Hotel Group Co.Ltd(000428) performance of 2021 achieved a year-on-year growth from loss to profit, and the net profit deducted from non net profit also increased by 35.03% year-on-year, the net profit deducted from non net profit still failed to become positive, amounting to -355 million yuan.
current liabilities reached 3.542 billion yuan
In fact, in the case of year-on-year profit, the problem of current liabilities is perplexing Huatian Hotel Group Co.Ltd(000428) .
As of December 31, 2021, Huatian Hotel Group Co.Ltd(000428) current liabilities are about 3.542 billion yuan, and non current liabilities due within one year are about 228 million yuan. However, the current assets of Huatian Hotel Group Co.Ltd(000428) in the same period are only 1.237 billion yuan, and the current liabilities are about 2.3 billion yuan higher than the current assets. The short-term debt repayment pressure can not be ignored.
In this regard, Huatian Hotel Group Co.Ltd(000428) ‘s board secretary told the reporter of Huaxia times that the reason for the large amount of current liabilities of the company is mainly due to the rolling history, focusing on decoration, new project expansion, replenishment, etc.
However, although there is great pressure on short-term debt repayment, in contrast, the total liabilities of Huatian Hotel Group Co.Ltd(000428) in 2021 decreased, and the total liabilities in the same period in 2020 were 4.284 billion yuan, of which the total current liabilities were 3.767 billion yuan. According to the asset liability ratio shown, compared with 69.96% in the same period in 2020, it decreased slightly by 1.77% to 68.19% in 2021.
As for the source of repayment funds, Huatian Hotel Group Co.Ltd(000428) securities department also told the reporter of Huaxia times that during the reporting period, the company’s repayment funds mainly came from the equity disposal of Changchun Huatian and Xiangtan Huatian and the repayment of bankruptcy creditor’s rights of Haobo project.
In view of the situation that current assets cannot cover current liabilities, Huatian Hotel Group Co.Ltd(000428) wrote in the performance report that it will improve its operating capacity by reducing costs and increasing efficiency, strengthening the disposal of stock assets, signing credit contracts and loan contracts with banks, and financial assistance provided by Xingxiang group for the company.
hotels reduced to 37
It can be said that the de capitalization of heavy assets plays a vital role in achieving profitability in Huatian Hotel Group Co.Ltd(000428) performance in 2021.
Not only is asset deregulation, but government subsidies also occupy a more and more important position in the annual profit and loss of Huatian Hotel Group Co.Ltd(000428) recent years. In 2021, the government subsidies included in Huatian Hotel Group Co.Ltd(000428) current profit and loss were about 15.7 million yuan. Previously, from 2018 to 2020, the government subsidies included in current profit and loss were 395700 yuan, 3.9 million yuan and 7.08 million yuan respectively.
However, while Huatian Hotel Group Co.Ltd(000428) performance and subsidies increased in 2021, the total number of hotels operating in Huatian Hotel Group Co.Ltd(000428) has been further reduced.
Although Huatian Hotel Group Co.Ltd(000428) has formed the operation and development mode of “self support + trusteeship”, and has three mature brands of “Huatian Hotel”, “Huatian Holiday Hotel” and “Huatian selected Hotel”, the overall scale has declined significantly in recent years.
As of December 31, 2021, Huatian Hotel Group Co.Ltd(000428) self operated and managed hotels totaled 37 (35 have opened), including 16 self operated hotels, 21 managed hotels (2 have not opened), 5136 self operated hotel rooms and nearly 2 million members. In the same period of 2020, there were 48 self operated and managed hotels (41 have been opened), including 16 self operated hotels and 32 managed hotels. In the same period of 2019, there were 58 self operated and managed hotels (43 have been opened), including 15 self operated hotels, 43 managed hotels and 4990 self operated hotel rooms. Within two years, Huatian Hotel Group Co.Ltd(000428) total number of hotels decreased by 21.
In this regard, Huatian Hotel Group Co.Ltd(000428) Securities Department told the reporter of Huaxia times that the reason for the decrease in the number of hotels is that on the one hand, the company maintains the brand quality of Huatian and cleans up and releases the trusteeship of hotels that do not meet the brand quality; On the other hand, since the epidemic, some companies have managed hotel owners to adjust their business direction and no longer operate hotels.
However, although the current wine tourism industry is impacted by the epidemic, many leaders in the hotel industry continue to open stores rapidly, and the scale expansion has not stopped, Orient Securities Company Limited(600958) in the recently released research report, it is pointed out that there is still much room for improvement in China’s hotel chain rate and industry concentration compared with developed countries.
In this environment, how can the shrinking Huatian Hotel Group Co.Ltd(000428) seize a place? In this regard, Huatian Hotel Group Co.Ltd(000428) Securities Department told the reporter of Huaxia times that according to the three-year action plan announced by the company, the company will adopt the asset light mode of brand output to expand in the future.
