In 2022, the real estate industry entered a period of deep adjustment, real estate companies frequently experienced liquidity crises, and the fire in the city gate affected Chiyu. The property management industry, which is closely related to it, is difficult to survive. According to the monitoring data of Zhuge House Search Data Research Center, in the first half of 2022, with the continued advancement of property companies' mergers and acquisitions, the assets and liabilities of 50 listed property companies both increased. At the same time, the debt-to-asset ratio of 50 property companies is also expanding, and their debt repayment ability has declined, but it is still in a reasonable and stable range. The scale of cash flow is reduced compared with 2021, and half of the property companies' cash and equivalents cannot cover their current liabilities. At the same time, differentiation within the industry is also taking place, and the property companies split by state-owned enterprises and business management property companies performed more stably.
1. As mergers and acquisitions are promoting assets and liabilities of property enterprises rise
(I) The debt growth rate of 50 property enterprises is higher than the asset growth rate, and the debt of property enterprises with a total of 10 billion yuan has increased to 3
According to the 50 key property enterprises selected by Zhuge House Search Data Research Center, The total liabilities in the first half of 2022 reached 141.57 billion yuan, an increase of 8.9% from 2020. Among them, current liabilities were 118.78 billion yuan, accounting for 83.9%, an increase of 0.5 percentage points from 2021. In terms of assets, the total assets of the 50 property companies were 316.43 billion yuan, an increase of 5.4% from 2021. It can be seen that in the first half of 2022, as mergers and acquisitions between property companies continue to advance, the scale of total assets and total liabilities have expanded, and the growth rate of total liabilities is higher than that of total assets, which has increased compared with 2021. As an associated industry in the real estate industry, let alone property management industry is mostly divided by real estate companies. Although the dependence on parent companies has gradually decreased in recent years, "the fire in the city gate has caused the fish to catch up with the fish in the pond". As the real estate industry enters a downward cycle and the pressure on real estate companies to increase survival, property companies are also unable to survive. Both of them prosper and lose together. The real estate crisis will also have a negative impact on the financial situation of property companies.
From the perspective of the total debt scale of major property companies, there were 3 property companies with a debt scale of more than 10 billion yuan in the first half of 2022, an increase of 1 from the end of 2021, namely Country Garden Services, China Resources Vientiane Services and Shenzhen Property. There were 6 property companies with a debt scale of 5-10 billion yuan, which was unchanged from 2021, namely Shimao Services, Ya Life Services, China Merchants Jiyu, Greentown Services, China Overseas Property, and Poly Property. There were 8 property companies with a debt scale of 2-5 billion yuan, and 7 of a debt scale of 1-2 billion yuan, a decrease of 2 from 2021, and 26 property companies with a debt scale of less than 1 billion yuan, an increase of 1 compared with 2021.
(II) Country Garden Services and China Resources Vientiane Life’s assets and liabilities are leading the two lists, and 15 property companies have reduced their liabilities
From the perspective of the total assets of major property companies, Country Garden Services’ asset scale is still leading the major property companies and is far ahead. The total assets in the first half of 2022 were 67.918 billion yuan, an increase of more than 1.65% from 2021. China Resources Vientiane ranked second, with total assets of 25.282 billion yuan in the first half of 2022, an increase of 17.09% from 2021, and Ya Life Services' total assets were 21.682 billion yuan, an increase of 7.43%. Compared with the end of 2021, 9 property companies have decreased in total assets, while the remaining 41 property companies have all increased in asset size. Among them, the growth rate of Hejing Youhuo's assets was 50.43%, ranking first in terms of growth, followed by Xingsheng Commercial, with a growth rate of 47.3%, with the growth rate of Binjiang Service and Fangyuan Life Services being 31.58% and 20.37% respectively, ranking third and fourth. It can be seen that the total assets of most property companies are showing a steady upward trend, but the asset scale of some property companies is facing a contraction. Shimao Services' total assets in the first half of 2022 were 18.457 billion yuan, a decrease of 2.37% from the end of 2021. Sunac Services' total assets in the first half of 2022 were 11.926 billion yuan, a decrease of 11.45%. Listed property companies once relied on their real estate parent companies to obtain high-quality resources to develop rapidly, and are closely related to business, finance, etc. However, real estate companies are frequently experiencing liquidity crises, and even dragging some property companies into the "quagmire".In the past year, Sunac China has not only experienced debt defaults, stock suspensions, and annual reports, but has even reported liquidation recently. Although Sunac has immediately responded that it is a personal behavior and the company will announce its restructuring plan as soon as possible, these negative news will undoubtedly add insult to injury to Sunac. On June 22, Shimao Service, a listed property company that was suspended for 50 days due to delayed annual report release, finally released its 2021 reviewed financial report and successfully resumed trading. Its asset scale cannot escape the fate of decline. The debt scale of
has also risen. Among them, Country Garden Services' total debt is far ahead, at 27.678 billion yuan, a decrease of 2.68% from 2021. China Resources Vientiane ranked in the top 2 debt list, with total liabilities of 11.002 billion yuan in the first half of 2022, an increase of 42.83% from 2021. Shenzhen Property ranked third, with total liabilities in the first half of 2022 of 10.99 billion yuan, up 9.34%.
From the perspective of debt changes, 15 of the 50 property companies have achieved debt reduction, while the debt scale of the other 35 companies has increased. Among them, Xingsheng Commercial's debt increased by 223.58%, jumping to the top of the increase. In the first half of 2022, Xingsheng Commercial's non-current liabilities increased significantly, and the lease liabilities increased from 600 million yuan in 2021 to 670 million yuan, mainly due to the large amount of lease liabilities recognized when the whole rental project of Jiaxing Xinghe COCO City and Xiamen Xinghe COCO Park were delivered. However, it is undeniable that Xingsheng Commercial is favored by the capital market with its pure business management model and is a model of small and beautiful small and medium-sized property companies. The second is Hejing Youhuo, whose debt scale reached 3.747 billion yuan in the first half of 2022, an increase of 152.12%, ranking second. In any case, there are many hidden worries about Hejing Youhuo, which has made great strides, and its debts have soared. We need to be vigilant about financial risks in the future. The debt of Binjiang Service and China Resources Vientiane also increased by more than 40%. Profits that have made progress in reducing debt include Zhongao Home, Zhengrong Service, Huafa Property, Yincheng Better Life, etc., and the total debt scale in the first half of 2022 decreased by more than 10 percentage points. Faced with the continuous split and listing of property companies from real estate companies, the growth rate of management scale of Zhongaodaojia, an independent third-party property company listed on the Hong Kong stock market, has almost stagnated in recent years, and the scale of assets and liabilities has both declined.
. In the first half of the year, the debt repayment ability of property enterprises has steadily declined. Most of the debt repayment ratios are in the range of 30%-50%
(I) The debt repayment ability of 50 property enterprises has declined, and the debt-to-asset ratio is still fluctuating within a reasonable range
Debt repayment ability indicator is an important indicator of enterprise financial management, which refers to the ability of enterprises to repay maturing debts. The specific measurement indicators mainly include three items: debt-to-asset ratio, current ratio, and quick ratio . The long-term debt repayment ability of a company is usually judged by its debt-to-asset ratio, and the short-term debt repayment ability of a company is measured by its current and quick ratios. Generally speaking, the current ratio is generally ideal between 1.5 and 2.0. The higher the current ratio means that the less short-term funding is needed for daily operations; the quick ratio usually refers to the ratio of the company's quick assets to current liabilities. The higher the indicator, the stronger the company's ability to repay current liabilities. A quick ratio of 1.0 is more reasonable. A greater than 1 means that once the company has liquidated and the inventory cannot be cashed out, the company is also able to repay the debt. A less than 1 means that the company must rely on selling part of the inventory to repay the short-term debt.
According to the 50 key property companies monitored by Zhuge House Search Data Research Center, The debt-to-asset ratio in the first half of 2022 was 44.74%, an increase of 1.42 percentage points from 2021. At the same time, the current ratio and quick ratio both decreased compared with last year. 022's current ratio was 1.82 and the quick ratio was 0.87. current ratio is in a reasonable range, but it has dropped by 0.1 compared with last year, and the quick ratio has dropped below 1, which is separated from the reasonable range in the traditional sense and has declined in the short term.The property industry has long been favored by its light asset operation model, but as property companies accelerate the pace of mergers and acquisitions, the debt level has risen and debt repayment ability has declined. It is worth noting that property companies have close relationships with their affiliates. If a liquidity crisis breaks out of a related real estate company, property companies may also pay for their parent company, and it is easy to be questioned of "blood transfusion" for the latter, which may be one of the reasons for the rise in the debt-to-asset ratio.
(II) Huafa Property's debt-to-asset ratio ranked first again and again, Zhongjun Commercial Management is still lightly in the market
022 In the first half of 2022, 7 of the 150 0 have an asset-to-asset ratio of more than 60%, which has no change from 2021. There are 8 property companies with a debt-to-asset ratio of 50-60%, an increase of 1 from 2021, and 15 companies with a debt-to-asset ratio of 50-60%, an increase of 1 from 2021. Most property companies have a debt-to-asset ratio in the range of 30%-50%. Overall, the financial levels of most property companies are still in a reasonable and stable range.
022 in the first half of 2022, with the debt-to-asset ratio of Huafa Property Services ranked first, with the debt-to-asset ratio of 107.25%, a decrease of 7.43 percentage points from last year. , but it has to be said that Huafa Property's debt level still seems out of place in the camp of property companies operating with light assets. It is also worth noting that its cash and equivalents are far from covering the scale of its current liabilities, and corporate financial risks need to be vigilant. Shenzhen Property ranks TOP2 with a debt-to-asset ratio of 72.46%, followed by Yincheng Life Services, with a debt-to-asset ratio of 71.49%, a decrease of 4.47 percentage points from last year. The debt-to-asset ratio of China Overseas Property and Jianfa Property is also above 60%, and it is also at a high level among many property companies. At the same time, Zhongjun Commercial Management has become the "easiest" property company with an asset-liability ratio of 20.06%. The business management tags that come with make Zhongjun Commercial Management have been favored by the capital market since its listing. It not only has a high profit level, but also has no blame in terms of financial status. Qifu Life Service and Jinke Service's debt-to-asset ratios were 26.3% and 26.69%, respectively, ranking second and third in low debt ratios.
From the perspective of changes in the debt-to-asset ratio, In the first half of 2022, the debt ratio of 21 property companies fell, and 29 property companies rose. Among them, Huafa Property Services fell by 7.43 percentage points, ranking first, followed by Jiayuan Services. The debt-to-asset ratio in the first half of 2022 was 43.79%, a decrease of 5.08 percentage points from last year. Yincheng Life Services' assets and liabilities fell by 4.47%, ranking third in the decline. At the same time, the debt-to-asset ratios of Xingsheng Commercial, Hejing Youhuo and Binjiang Services have all increased by more than 10 percentage points, which also brings certain hidden risks to the future development of the enterprise.
. The cash flow of property companies and commercial management property companies from state-owned enterprises is more stable.
(I) The cash level of property companies is less than last year. More than 60% of property companies' cash scale has decreased.
Entering 2022. In the environment where the real estate industry is getting colder and real estate companies frequently have crises, the property management industry inevitably feels pressure, and the industry begins to differentiate. The downward pressure in the real estate development industry has gradually extended to concerns about business operations and cash flow security. According to data, , the cash and cash equivalents of 50 property companies in the first half of 2022 were 98.866 billion yuan, a decrease of 12.57% from 2021. Among them, there are 1 property company with cash and cash equivalents exceeding 10 billion yuan, a decrease of 1 compared with last year; there are 3 property companies with cash and cash equivalents between 5 billion and 10 billion yuan, the same as last year, 3 property companies with cash and cash equivalents between 2 billion and 3 billion yuan, a decrease of 3 compared with last year, and 8 companies with cash and cash equivalents between 1 billion and 2 billion yuan, an increase of 2 compared with last year. Most property companies have cash and equivalents below 1 billion yuan, accounting for more than 50%.
From the perspective of cash flow changes, among the , the proportion of property companies with decreased cash and equivalents reached 68%, and the proportion of property companies with increased cash flow accounted for 32%. Compared with 2021, the proportion of company with increased cash and equivalents narrowed by 22 percentage points. In other words, in the first half of 2022, the cash flow situation of most property companies has deteriorated. The reason for this situation is, on the one hand, determined by the overall industry environment, and the downward pressure on the real estate development industry has increased. Since many businesses of property companies are closely related to real estate development, it will inevitably affect the property industry; on the other hand, mergers and acquisitions among enterprises are still continuing, which will also affect the cash flow situation.
(II) China Resources Vientiane Life is far ahead of the market with 10 billion cash, and Dexin Service and Xingsheng Commercial's cash flow has increased significantly.
From the perspective of cash and cash equivalents rankings, China Resources Vientiane Life is leading with an absolute advantage. The cash and cash equivalents in the first half of 2022 were 12.852 billion yuan, a decrease of 6.18% from 2021. has the same stable operating model as its affiliate China Resources Land. Although its asset scale is not as good as Country Garden, it has shown outstanding advantages in cash flow reserves. Of course, Country Garden Service is also relatively abundant in cash, ranking second with 8.816 billion yuan. Country Garden Service has become a well-deserved leading property company in the industry through its acquisition and acquisition business over the past few years, and its cash reserves are not inferior; Shimao Service follows closely behind, reaching 7.047 billion yuan in the first half of 2022, a decrease of 28.4%.
From the perspective of changes in cash and cash equivalents, Dexin Service Group's cash and equivalents rose by 65.33%, jumping to the top. The second is Xingsheng Commercial, with cash and equivalents rising 41.15% compared with 2021. Xingsheng Commercial, as a rare pure business management model in the property enterprise camp, is quite popular in the capital market, and its cash flow has also shown continuous optimization. Binjiang Service, Investment Promotion Jiyu and Hejing Youhuo all increased by more than 20%. It must be mentioned that while some companies have improved their cash flow, the cash flow scale of some property companies is also shrinking. Huafa Property Services' cash and equivalents in the first half of 2022 were 188 million yuan, a decrease of 58.41% from 2021. Huafa Property's financial situation has been unsatisfactory for a long time, and it has exposed certain risks. Songdu Service's cash scale has dropped by 53.48%, with a close follower. Yincheng Life Service, Longshi Green Life, Kaisa Meili and other declines exceeded 40%, and the cash flow situation cannot be ignored. As a spin-off property under Kaisa Group, Kaisa Meiwei inevitably dragged down its property after Kaisa Group crashed.
(III) The cash flow coverage of commercial management property enterprises is at a high level
The so-called short-term cash coverage refers to the degree to which the cash flow generated by the enterprise covers short-term liabilities, reveals the ability of the enterprise's cash flow to repay loans, and reflects the financial security status of the enterprise. According to the monitoring data of Zhuge House Search Data Research Center, the short-term cash coverage of of 50 listed property companies in the first half of 2022 was 83.23%, a decrease of 21 percentage points from 104.26% in 2021. This data shows that the current cash scale of an enterprise cannot cover its current liabilities. From the perspective of 50 property companies, 26 companies have cash coverage of less than 1, and the remaining 24 property companies have cash coverage of more than 1. Among them, Zhongjun Commercial Management has a short-term cash coverage of up to 468.06%, and the advantages of the business management model are highlighted; Xingye IoT ranks second, with cash coverage of 315.16%, Qifu Life Service ranks third, with short-term cash coverage of 254.73%, Xingsheng Commercial, Baolong Commercial, Deshang Industrial Investment Services, and Excellent Business Enterprise Services all have over 190%. It is worth noting that these are property companies that are located in the business management track, highlighting their strong profitability and more stable cash flow.
(Note: Short-term cash coverage = cash and cash equivalents/current liabilities*100%)
