From January to September 2022, Yuexiu Real Estate's cumulative contract sales amount was approximately RMB 79.674 billion, an increase of about 12% year-on-year, and the cumulative contract sales area was approximately 2.78 million square meters, an increase of about 7% year-on-year. The cumulative contract sales amount accounts for approximately 65% of the contract sales target of RMB 123.5 billion in 2022.
In 2022, when the overall environment is so difficult, Yuexiu Real Estate became the only real estate company to achieve positive sales growth.
I have to like it here!
Private real estate companies are calling for the downward cycle of the industry and are in a state of being unable to survive, but Yuexiu Real Estate has risen against the trend.
In fact, since this year, the country has introduced waves of favorable real estate policies.
The signal that real estate must not be released clearly is very clear, and the signal that has already appeared at the bottom of the policy is also very clear. However, everyone has never been sure when the bottom of the market will be.
At Yuexiu Real Estate, it seems that the signal at the bottom of the market has already appeared!
Yuexiu Real Estate, formerly known as the Guangzhou "Residential Construction Office". In 1983, it was restructured into "Guangzhou Urban Construction and Development Corporation" and was affiliated to Yuexiu Group.
Yuexiu Group is one of the top 15 multinational companies in China. The controlling shareholder and actual controller are both Guangzhou State-owned Assets Supervision and Administration Commission. The second largest shareholder is Guangzhou Metro Group introduced in the 2019 strategy.
Yuexiu Group has now formed a "4+X" modern industrial system with real estate, finance, transportation infrastructure and food as the core. It has six platforms: Yuexiu Real Estate, Yuexiu Real Estate Trust Fund, Yuexiu Service, Yuexiu Financial Holdings, Chuangxing Bank (delisted in September 21) and Yuexiu Transportation Infrastructure , and has html under its jurisdiction. 7 Yuexiu Real Estate Co., Ltd. (0123.HK), Xiu Service (06626.HK), Yuexiu Transportation Infrastructure Co., Ltd. (1052.HK), Guangzhou Yuexiu Financial Holding Group Co., Ltd. (000987.SZ), Chuangxing Bank Co., Ltd. (delisted in September 21) and Yuexiu Real Estate Investment Trust Fund (0405.HK) and other domestic and foreign listed companies and funds.
Yuexiu Real Estate is the main real estate business platform under Yuexiu Group.
As the first batch of real estate companies in China, as early as the 1990s, Yuexiu Real Estate was ranked among the five major mainstream real estate developers in the Guangdong system, along with Vanke , China Merchants Shekou , China Overseas , Jindi , etc. Many landmark buildings in Guangzhou are made by Yuexiu Real Estate, such as Guangzhou International Financial Center , Huanmao Tiandi, Tianhe Sports Center , Urban Construction Building, Mayor's Building, Fortune Plaza, Victoria Plaza , etc.
Unfortunately, at the time of the rapid development of the domestic economy in the past 20 years, Yuexiu Real Estate was still limited to Guangzhou because its development area was still limited to Guangzhou, and it missed the best era of real estate.
In 2010, other real estate companies made a lot of money by making "high turnover". Vanke, also a mainstream real estate developer in Guangdong, became the first real estate company to reach the threshold of 102.6 billion yuan with sales of 102.6 billion yuan. At this time, Yuexiu Real Estate's sales were only 8.8 billion yuan, and the ranking of the top 100 real estate companies was even outside the 50th place all year round.
success and failure.
Time came ten years later, a number of high-leverage real estate companies died on the way to leverage . Yuexiu Real Estate rose against the trend and entered the "100 billion club" for the first time. At this time, it was 2021 when "Wenfang's eyes changed" and changed.
Yuexiu Real Estate's contract sales amount in 2021 was approximately 115.15 billion yuan, an increase of 20.2% year-on-year, exceeding the annual performance target of 112.2 billion yuan.
Thanks to the advantages of urban layout, Yuexiu Real Estate completed contract sales in Greater Bay Area , an increase of 12.1% year-on-year, of which the contract sales in Guangzhou were RMB 60.6 billion, an increase of 8.6% year-on-year. The contract sales amount in East China was RMB 25.93 billion, an increase of 30.1% year-on-year, and the contract sales amount in Central China was RMB 10.17 billion, an increase of 48.6% year-on-year.
In terms of land reserves, in 2021, Yuexiu Real Estate added 37 new land in 18 cities, 16 new land in the Greater Bay Area, including 12 new land in Guangzhou.The land acquisition method is mainly based on mergers and acquisitions, supplemented by bidding and auction, which has certain cost advantages.
As of the end of December 2021, Yuexiu Real Estate had a total land reserve of 27.11 million square meters, an increase of 10.5% year-on-year; Greater Bay Area reached 14.91 million square meters, accounting for 55%, Guangzhou accounted for 47.6%, and the total land reserves in first- and second-tier cities accounted for 91%.
Time comes again in 2022. Yuexiu Real Estate’s strategic layout in the country has expanded to 30 cities, with a budget of land investment of 45.7 billion yuan. In 2020 and 2021, Yuexiu Real Estate's land investment amount was 41 billion yuan and 44.48 billion yuan respectively.
So, does Yuexiu Real Estate have the ability to overtake?
According to Yuexiu Real Estate's first half of 2022 financial report, Yuexiu Real Estate's total assets were 320.9 billion yuan, up 7.98% from the previous year; 's total liabilities were about 244.7 billion yuan, up 7.53% from the previous year; of which the liabilities due within one year were 26.959 billion yuan, up 21.20% year-on-year.
But there is a problem that needs to be paid attention to: Yuexiu Real Estate's cash on the books was 39.054 billion yuan, a decline compared with the previous year; and excluding restricted funds, the non-restricted funds were only 26.068 billion yuan, which cannot cover short-term debts at this stage.
, and Yuexiu Real Estate has begun to experience negative operating cash flow in the past two years. 's operating cash flow in 2021 was -4.676 billion yuan, a year-on-year decrease of 129.3%; in the first half of 2022, the cash flow in was -1.619 billion yuan, compared with 449 million yuan in the same period last year.
So, is Yuexiu Real Estate in danger? No!
In September, Yuexiu Real Estate issued a company with a scale of no more than RMB 2.595 billion through its subsidiary Guangzhou Urban Construction Development Co., Ltd., with a maturity of 3+2 years and 5+2 years. The face value interest rate of the bond is 2.78%~3.09%, setting a new low for bond interest rates for the same period since entering the domestic bond public offering market for the first time in 2016; and the lowest historical interest rate for corporate bonds in the 5-year real estate industry.
Before this, Yuexiu Real Estate had successfully issued 4 bonds, with a total financing of 7.25 billion yuan. With this financing, Yuexiu Real Estate has raised a total of 9.85 billion yuan through corporate bonds this year, and the financing scale has exceeded the whole year of last year.
In the current environment where real estate companies' financing has shrunk significantly and the industry is full of chaos, Yuexiu Real Estate's production capacity has received nearly 10 billion yuan in financing, and there is no reason.
In the fourth quarter, as more policies were introduced to stabilize the real estate market, the expected recovery of real estate in the future could continue, and developers' performance may continue to differentiate. Yuexiu Real Estate may be the real estate company that is silently working hard.
