The net loan ratio is only 49.7%. Country Garden plans to drop to "green file" in June 2023.

On August 24th, Country Garden (02007.HK) disclosed the results of the first half of 20021,and then held a performance conference. Group President and Executive Director Mo Bin, Executive Vice President Cheng Guangyu and Chief Financial Officer and Vice President Wu Bijun attended and answered questions from the media.

During the reporting period, the contracted sales amount of Country Garden * * attributable to the shareholders' equity of the company was about 303.09 billion yuan, up by 65,438+04% year-on-year; The sales area of equity contract is about 34,565,438+0,000 square meters, up 8% year-on-year. At the same time, its operating income reached 234.93 billion yuan, a year-on-year increase of 27%. Gross profit, net profit and core net profit attributable to shareholders increased to 46.28 billion yuan, 22.42 billion yuan and 654.38+05.22 billion yuan respectively, and a number of financial indicators continued to improve.

Specifically, Country Garden's operating income in the first half of the year mainly came from real estate development and construction. Among them, property sales accounted for 97%, and construction and other branches accounted for 3%.

The net loan ratio is as low as 49.7%

Less affected by financing tightening

While the performance is growing steadily, the leverage level of Country Garden continues to decline. By the end of June this year, the company's total interest-bearing liabilities had dropped to 324.24 billion yuan, and the final financing cost was about 5.39%, down 17 basis points from the end of last year. The net loan ratio is as low as 49.7%, which has been below 70% for many years. At the end of this period, Country Garden's available cash balance was as high as 65.438+086.24 billion yuan, with abundant overall funds and no worries about short-term debt repayment.

At present, housing enterprises are generally in a state of financing tightening, but the financing cost of Country Garden is declining in the first half of the year. At the performance meeting, Wu Bijun said that with the tightening of the financing environment, banks are more cautious and choose high-quality targets for delivery, and Country Garden has always been one of the best. Moreover, in the planning of these two years, Country Garden did not want to continue to expand its table, but focused on stability, which banks know better. Therefore, on the financing side, Country Garden is less affected.

In terms of mortgage, Country Garden's repayment rate has dropped from 9 1% last year to 90% this year, and the mortgage cycle has been extended to more than 60 days. This policy change has affected the number of payment days in Country Garden, but has not affected the total payment. On the whole, related resources will still be inclined to high-quality enterprises, and Country Garden is still the leading industry in terms of payment, Wu Bijun said.

Although the leverage reduction has achieved certain results, Country Garden is still stepping on the "red line". In this regard, Wu Bijun said that at present, only Country Garden's asset-liability ratio is higher than the "green file" standard, but since last year, this indicator has gradually declined, from 80% last year to 77% now. Country Garden will continue to push forward the downshift index according to the original plan, and it is planned that all the "three red lines" will turn green before June 2023, which is also a relatively healthy state that will not affect the profits of the company after calculation.

Adhere to the balanced layout of one to five lines.

It has obvious advantages in third-and fourth-tier cities.

In terms of land acquisition, in the first half of this year, Country Garden Group, together with its joint ventures and associated enterprises, purchased land at an equity premium of about 88.43 billion yuan, accounting for 85% of the equity, of which 82% of the new land was located in five metropolitan areas. In the first batch of centralized land supply in 22 cities, Country Garden * * * acquired the 14 plot, corresponding to the equity cost of 1, 7 1 100 million yuan, and delisted from the reserve price in several cities, such as Chongqing, Zhengzhou and Wuhan. The overall premium rate is only 7%, and the quality of land obtained is obviously better than the average level of the first batch of cities with centralized land supply.

At the performance meeting, the management introduced that in July, the equity cost of Country Garden land acquisition was about 22 billion yuan, and the cumulative equity cost of land acquisition from July to July reached 1100 billion yuan. By the end of the first half of the year, Country Garden's domestic saleable rights and interests were about 1.69 trillion, and its saleable potential rights and interests were about 490 billion, totaling 2.2 trillion, which can maintain the sales demand for the next three years or more. Moreover, 99% of these saleable values are located in areas with a permanent population of more than 500,000, 93% in areas with population inflow, and 74% in five metropolitan areas.

The data shows that from 20 16 to 2020, the sales of third-and fourth-tier cities will increase from 43% to 49% of the national commercial housing sales, making the market more resilient and playing a long-term supporting role for the national commercial housing market. During this period, Country Garden, which has been deeply involved in third-and fourth-tier cities, has also achieved a breakthrough in performance. During this period, the compound annual growth rate of the sales amount of equity contracts reached 25%, maintaining the leading position in the industry for many years.

Looking forward to the future, Country Garden continues to be optimistic about the development of the third, fourth and fifth tier cities, and believes that the company has brand advantages in these cities. In the first half of the year, Country Garden's market share in the first, second and third lines was 38% to 62%, and its investment share was also 38% to 62%. When talking about advantages, Cheng Guangyu pointed out that Country Garden has been deeply cultivated in the third, fourth and fifth tier cities for a long time, so it is more suitable for the market characteristics and market play of these cities, corresponding to the company's advantages such as product strength, cost strength, marketing strength and service strength, in order to cope with the just-needed reform and upgrading of the third, fourth and fifth tier cities. In addition, Country Garden attaches importance to the 345 line, which does not mean giving up the first and second lines. The company is still pushing forward the corresponding arrangements and insisting on the balanced layout of the first to fifth lines.

Mo Bin added that Country Garden has always insisted on "building good houses that ordinary people can afford". Through long-term deep cultivation in the third, fourth and fifth tier cities, the influence of Country Garden has been deeply rooted in the hearts of the people. The regional market has been deeply cultivated by Country Garden, a brand enterprise, and it is more difficult to squeeze into another brand housing enterprise, which is also the advantage of Country Garden. In the future, Country Garden will continue to adhere to the concept of building a "good house", improve products, costs and overall competitiveness, and work hard in this direction.

The investment in new business R&D shall not exceed 6 billion.

The venture capital business has achieved profitability.

While developing the main business of real estate, Country Garden continues to focus on the positioning of high-tech comprehensive enterprises, build the internal circulation of the whole industrial chain, promote the overall competition with technology, and focus on the layout of high-tech real estate ecological chain. In terms of robot and agricultural business, Mo Bin pointed out that "at present, R&D's investment in construction robots and some new agricultural businesses does not exceed 6 billion yuan, and its products and effects are getting better and better". Next year, construction robots and Qianxi robot restaurants will be profitable, agriculture and Biyou will be promoted normally, and venture capital business will bring profits to the company. At present, the efficiency of every robot developed by Country Garden is 2-3 times that of manual work, and it is expected to continue to improve in the future.

According to the management, Country Garden Venture Capital has invested in 50 enterprises since its establishment, of which 8 have successfully IPO and 8 have completed the next round of financing. Among them, 45% of the investment projects are distributed in the fields of advanced manufacturing, semiconductors and carbon neutrality.

In terms of social welfare, Country Garden has been deeply involved in this road for 24 years since 1997. Precision poverty alleviation involves 57 counties in 16 provinces across the country, benefiting more than 490,000 people, with accumulated donations exceeding 9 billion yuan. The management said that rural revitalization and prosperity are the major policies of the country, and the company will continue to contribute to Country Garden while running the enterprise well.