On April 15, Beijing Capital Development Co.Ltd(600376) released the report card of 2021, achieving an operating revenue of 67.802 billion yuan, a year-on-year increase of 53.31%, a net profit attributable to the parent company of 692 million yuan, a year-on-year decrease of 77.95%, and a net profit deducted from non net profit of 594 million yuan, a year-on-year decrease of 74.36%, the lowest record in recent ten years.
“the profit margin of delivered profit settlement projects decreased significantly”
Known as the “landlord of Beijing”, Beijing Capital Development Co.Ltd(600376) has successively successfully developed super large residential communities with a scale of more than one million square meters, such as Huilongguan Cultural residential area, Fangzhuang community and Wangjing New Town, as well as a number of national key projects such as the Universiade village, the Olympic Village, the National Stadium and the “ice ribbon” of the speed skating Hall of the Winter Olympic Games.
“One piece of history, half of Beijing”. In 2021, Beijing Capital Development Co.Ltd(600376) with a sales volume of 62.88 billion yuan, regained the top sales position in Beijing market occupied by China Shipping since 2019.
Since entering the 100 billion camp in 2018, the scale growth of Beijing Capital Development Co.Ltd(600376) has entered a bottleneck period. According to the data, in 2018, Beijing Capital Development Co.Ltd(600376) achieved a sales amount of 100727 billion yuan, an increase of 46% year-on-year; In 2019, the sales amount reached 101344 billion yuan, a year-on-year increase of only 0.61%; In 2020, the sales volume reached 107455 billion yuan, a year-on-year increase of only 6.03%; In 2021, the sales volume reached 114.9 billion yuan, a year-on-year increase of 7%.
The slowdown in performance growth is accompanied by the continuous decline in profitability. As of 2021, Beijing Capital Development Co.Ltd(600376) all profitability indicators have declined year-on-year, in which the return on net assets has decreased from 11.42% in the same period of last year to 1.83% at the end of last year; The return on total assets decreased from 1.33% in the same period of last year to 0.65% at the end of last year; The return on invested capital decreased from 3.48% in the same period of last year to 2.46% at the end of last year. The gross profit margin and net profit both fell year-on-year, with a year-on-year decrease of 8.15 percentage points and 6.37 percentage points respectively to 19.81% and 3.09% at the end of last year.
From a regional perspective, the gross profit margin of Beijing regional business was 29.31%, down 14.59 percentage points from the previous period. The gross profit margin of regional business outside Beijing was 21.98%, an increase of 3.29 percentage points.
As for the decline in profits, Wang Yi, the Secretary of the board of directors, said that the main reason was that in 2021, the profit margin of Beijing Capital Development Co.Ltd(600376) main delivered profit settlement projects decreased significantly, and the average gross profit margin decreased by nearly 8 percentage points year-on-year; In addition, the proportion of Beijing Capital Development Co.Ltd(600376) average equity in the profit settlement projects of this year decreased, and the profit generated from the delivery of cooperative projects decreased compared with the previous year. It is expected that the investment income recognized by the equity method will decrease year-on-year.
The proportion of equity has been decreasing and the profits have been swallowed up, which has laid the groundwork since Beijing Capital Development Co.Ltd(600376) 2016 plans to go out of Beijing. While shoukai built a large-scale building due to expansion everywhere, it also paid a certain price accordingly. In the first and second tier cities such as Shenzhen, Tianjin, Hangzhou and Guangzhou, the price of land acquisition is high, and Beijing Capital Development Co.Ltd(600376) can only follow the cooperation mode of consortium, followed by the continuous increase of cooperation projects and less and less profit space.
The report shows that in 2021, among the land to be developed, 9 of the 15 projects at home and abroad were cooperative development, with a minimum equity ratio of 10%. In addition, from 2019 to 2021, the proportion of equity in Beijing Capital Development Co.Ltd(600376) sales was 61.59%, 49% and 54% respectively, which once fell to less than half. From this, we can also see how much the full caliber sales announced for the first time really belong to our pockets.
debt reduction achieved initial results
In addition to the unsustainable profitability, the mountain pressing on Beijing Capital Development Co.Ltd(600376) head also has high liabilities.
In terms of “three red lines”, the financial report shows that the asset liability ratio excluding advance receipts is 73.60%, the net debt ratio is 147.45%, the cash short debt ratio is 1.22 times, and the foot steps on two red lines.
In fact, this is the data after Beijing Capital Development Co.Ltd(600376) . As early as 2018, when it first entered the 100 billion camp, the net debt ratio has reached 212%. From the mid-term report of 2017 to the first quarter of 2020, the Beijing Capital Development Co.Ltd(600376) asset liability ratio has been hovering beyond 80%.
Beijing Capital Development Co.Ltd(600376) Zeng admitted that the net debt ratio of the company is indeed at a high level in the industry, and improving the asset liability structure will be the key concern and problem to be solved by the company in the future.
By the end of 2021, Beijing Capital Development Co.Ltd(600376) total liabilities had reached 247.3 billion yuan, a decrease of 16.4 billion yuan over the same period of the previous year, including 21.4 billion yuan of non current liabilities due one year, a decrease of 4.54 billion yuan over the same period of the previous year, and the asset liability ratio was 78.68%, a decrease of 1.74 percentage points over the previous period.
Another data worthy of attention is the financing situation related to its blood transfusion capacity. According to the financial report, its total new financing for the whole year was about 41.430 billion yuan, including 7.313 billion yuan of development loans, 10.423 billion yuan of trust loans, 3.5 billion yuan of debt protection plan, 20.194 billion yuan of bond issuance scale, 52.386 billion yuan of interest bearing liabilities due and 10.956 billion yuan of interest bearing liabilities reduced. On April 18, Beijing Capital Development Co.Ltd(600376) disclosed that it planned to issue no more than 2.32 billion yuan of corporate bonds to repay interest bearing liabilities. With the background of state-owned assets, Beijing Capital Development Co.Ltd(600376) financing channels are smooth and the financing cost is low. According to statistics, since the beginning of this year, Beijing Capital Development Co.Ltd(600376) has issued 13 medium-term notes, private placement bonds and asset-backed notes, totaling 24.02 billion yuan, with an average coupon rate of 3.76%.
urban renewal and mining stock market
Under the downward pressure of the market, Beijing Capital Development Co.Ltd(600376) , which has been deeply ploughing shed reform and old reform for many years, has always hoped to achieve performance curve overtaking through this channel.
In 2015, Beijing Capital Development Co.Ltd(600376) put forward the strategic transformation of “urban revitalization official”. Around the “urban revitalization official”, and around the five major measures of the residential rental market, promoting the transformation and renewal of old residential areas, cultivating the business form of community elderly care services, participating in the protection and revitalization of old cities, and building a maker space platform, tap Beijing’s stock market resources.
In the financial report, Beijing Capital Development Co.Ltd(600376) mentioned that we should participate in the transformation of old communities in various ways. Take benchmarking projects and model projects as a breakthrough, deepen strategic cooperation with all districts, and actively obtain projects such as block renewal and reconstruction, urban public space improvement, cultural and creative park development, building reconstruction and upgrading, old plant reconstruction and utilization, and traditional business district reconstruction. Through the combination of light and heavy assets, expand market-oriented urban renewal projects in different ways such as independent operation, project cooperation and equity cooperation.
However, combing its annual reports for 2020 and 2021, it is found that Beijing Capital Development Co.Ltd(600376) in the implementation and subsequent expansion of shed reform and primary land development projects and areas have not increased, both of which are 12 (11 in Beijing and 1 in Langfang), with a total land area of 158912 million square meters. Among them, there are 7 implemented projects, with a total land area of 9.7445 million square meters, and 5 follow-up projects, with a total land area of 6.1467 million square meters.
Industry insiders believe that the shed reform and urban renewal project has a long cycle and slow payment collection, which has also sacrificed the company’s cash flow to a certain extent.
