When domestic real estate stocks are in a slump, the passion for real estate companies to go public has not yet retreated.
On November 22, Wanchuang International Co., Ltd. (hereinafter referred to as "Wanchuang International"), located in Huainan, Anhui, submitted a prospectus to the Hong Kong Stock Exchange, intending to list on the main board of Hong Kong. Interestingly, on November 21, Wanchuang International submitted a prospectus to the Hong Kong Stock Exchange once, and submitted a prospectus twice within two days, which is rare.
In addition, this is not the first time that Wanchuang International has hit Hong Kong stocks. On February 14 this year, the company submitted a listing application, but it was invalid.
According to Zhitong Finance APP, Wanchuang International is a property developer focusing on Anhui Province. After the project was completed, Wanchuang International selectively retained the ownership of some self-developed commercial properties in the project for capital appreciation and rental income. These properties are mainly rented for independent tenants providing supporting living facilities (including education and tutoring, health and fitness and retail services) to residents of the company.
According to Zhitong Finance APP, since 2010, Wanchuang International has focused on the development and sales of large-scale comprehensive residential projects called " Quanshanhu Project", and has established a huge market share in Huainan City, Anhui Province. According to the Savills report, during the first six months of 2015 to 218, the Quanshan Lake project is the largest residential project in Huainan City, Anhui Province, based on the for-sale/pre-sale building area.
According to Wanchuang International's prospectus, from 2015 to 2017, Wanchuang International's main revenue also came from the development and sales of residential properties in different systems of the Quanshan Lake project (including middle to high-rise residential buildings, linked terrace houses and single-family houses). During the period of
, Wanchuang International achieved operating income of 424 million yuan (RMB, the same below), 781 million yuan and 629 million yuan respectively; gross profit of 161 million yuan, 139 million yuan, 160 million yuan, and 263 million yuan; net profit of 56.3 million yuan, 54.2 million yuan and 83 million yuan. In the first nine months of 2018, Wanchuang International's operating income was 757 million yuan, a year-on-year increase of 162%; gross profit was 262 million yuan, a year-on-year increase of 239%; net profit was 135 million yuan, a year-on-year increase of 327%. It is mainly due to the completion of the property of the second phase of Xiangsong Town, the first phase of Park, and the Yongjingwan , and the revenue is confirmed.
It is worth mentioning that Wanchuang International's gross profit margin is at a high level in the real estate industry. From 2015 to 2017, its gross profit margin was 37.9%, 17.8% and 25.5% respectively; in the first nine months of 2018, the gross profit margin was 34.7%, a year-on-year increase of 36%. During the same period, Vanke, the leading real estate company, had a gross profit margin of 27.8%.
In addition, as a capital-intensive industry, the debt level of a company has always been the focus of attention of the outside world. According to Zhitong Finance APP, from 2015 to 2017, Wanchuang International's debt-to-capital ratio was 608.5%, 716.8%, and 1218%, respectively, and the debt ratio rose rapidly, mainly due to the increase in interest-based other loans, namely external financing from independent third-party Huarong Assets. In the first nine months of 2018, the debt-to-capital ratio of Wanchuang International dropped sharply to 418.9%, mainly due to the increase in total equity.
With the success of the Quanshan Lake project, Wanchuang International signed a land transfer contract for the second residential property project called "Yuxiangshan Project" in May 2017, and acquired the project land for a total consideration of approximately RMB 682 million. According to Zhitong Finance APP, Wanchuang International has obtained relevant land use rights certificates for the project, and will start construction in November 2017, pre-sales will start from February 2018, and sales revenue will be recognized in 2019 and 2020.
At the same time, Wanchuang International has also expanded its business territory to another city in Anhui Province - Lu'an City . In October 2018, Wanchuang International signed a land transfer contract for a new residential property project and acquired the project land for a total consideration of approximately RMB 336 million. Lu'an Wanchuang Future Real Estate was registered and established for this purpose. Responsible for the project. The name is Wanchuang Oriental Yue, and it is expected to obtain relevant land use rights certificates in November 2018 and will start construction in the first quarter of 2019.
So far, Wanchuang International has a land reserve of 733,731 square meters, including: unsold completed properties with a sales floor area of 36,109 square meters and a rental floor area of 22,355 square meters; under-developed properties with a total planned floor area of 479,738 square meters; and continued future development properties with a total planned floor area of 195,529 square meters.
However, in terms of performance, Wanchuang International still needs to rely on the support of the Quanshan Lake project before 2019. According to Wanchuang International, as of September 30, the net book value of its completed properties was 193 million yuan and the investment property was approximately 112 million yuan.
