Development Status of Asset Securitization in Real Estate Industry

In 20021year, the national commercial housing sales 18. 19 trillion yuan, up 4.8% year-on-year. Although the transaction scale of commercial housing reached the highest level in history, the growth rate dropped significantly. Especially since the second half of the year, the real estate market has continued to cool down, and the transaction area of 100 cities has been declining, with a year-on-year decline of more than 30%. Coupled with the influence of industry liquidity tightening, the sales growth rate of 202 1 Top 100 real estate enterprises rarely experienced negative growth, and the performance differentiation was obvious. In this context, companies with stable operations continue to show a benign development trend after the baptism of the market.

On March 30th, Country Garden Holdings Co., Ltd. (hereinafter referred to as "Country Garden", stock code 02007.HK) disclosed the 20021annual performance report, showing that the company's operation is still in good condition, with stable performance, sound finance and full momentum for subsequent development.

The data shows that Country Garden achieved a total operating income of about 523.06 billion yuan, a gross profit of about 92.78 billion yuan and a core net profit of about 26.93 billion yuan in 20021year. The board of directors of the company suggested to distribute a final dividend of RMB 10. 12 cents per share, and the total dividend for 20021year was RMB 7.06 billion, accounting for 26.2% of the core net profit attributable to shareholders. In 20021year, Country Garden continued to fulfill its solemn commitment of giving back to the society, and the total tax payment for the whole year exceeded 60 billion.

In 2022, the financing environment of the whole industry is still grim, but Country Garden completed the issuance of a number of supply chain ABS, medium-term notes and convertible bonds from June to March in 5438. Since March, the company has obtained a total of 55 billion high credits from China Merchants Bank and Agricultural Bank, further demonstrating the confidence of financial institutions in the development prospects of this leading real estate enterprise.

There are indications that Country Garden has adopted the strategy of "going steady and far-reaching" since 20 18, and always put operational safety and capital safety in the first place. Even if 202 1 faces liquidity difficulties, the company's "steady" nature remains the same.

According to TF Securities's report, in 20021year, Country Garden showed excellent management ability under the pressure of the whole industry. The financing cooperation with M&A Bank will further expand the overall scale of Country Garden. It is estimated that the sales performance of the company will be stronger than that of the industry in 2022, and the leading position of the company will continue to be stable.

In 20021year, the real estate industry in China was regarded as "bronze age", and even some leading enterprises in the industry shouted "black iron age". Both bronze and black iron show an objective reality: the days when real estate was blindfolded and easy to make money have become a thing of the past, and the development logic of the industry has begun to change fundamentally. Only enterprises with high financial self-discipline and efficient management system are eligible to enter the next round of competition.

This year is not easy for Country Garden, which has held the top spot in the industry for many years. Fortunately, the company won the recognition of customers by virtue of "quality first" and "reputation first" and successfully achieved the established business objectives. The contracted sales of the Group and its joint venture companies attributable to the shareholders' equity of the Group is about 558 billion yuan (RMB, the same below), and the contracted sales area is about 64,654,38+/kloc-0.00 million square meters. According to the statistics of third-party organizations, Country Garden still maintains the leading position in the full-caliber sales industry.

While the market sales continued to lead, the company gave full play to the advantages of cash management and paid close attention to collection, and realized the cash return of equity property sales of about 502.2 billion yuan, and the equity return rate reached 90%, which was higher than 90% for six consecutive years, ranking at a high level in the industry. Last year, the company's net operating cash flow returned to normal. At the end of the period, the cash balance was 65,438+0,865,438+0.3 billion, and the ratio of short-term cash liabilities was 2.3 times, which was enough to cover the debts due within one year, and the capital situation was worry-free.

In 20021year, Country Garden continued its sound financial strategy and continued to optimize its balance sheet and capital structure. By the end of the reporting period, the company's net debt ratio was 45.4%, far below the standard line of 100% stipulated in the "three red lines" and far below the industry average. At the same time, the debt structure has been continuously optimized, and the proportion of short-term debt has dropped to 24.9%.

It is worth mentioning that, from the data of the past three years, Country Garden's total interest-bearing debt and financing costs are declining year by year. From 20 19 to 202 1, the company's total interest-bearing liabilities were 369.6 billion, 326.5 billion and 31792 million respectively; The average financing costs in the same period were 6.34%, 5.56% and 5.2% respectively.

In view of excellent business performance and financial stability, international rating agencies Moody's and Fitch still maintain Country Garden's "investment grade" rating, and Standard & Poor's also gives it a BB+ rating second only to "investment grade", with a positive outlook. Last year, the three major international rating agencies successively downgraded the rating or outlook of China real estate enterprises for more than 200 times. In this context, Country Garden can maintain its corporate and debt ratings.

According to "Statistical Bulletin of National Economic and Social Development 202 1" issued by the National Bureau of Statistics, at the end of 2002/KLOC-0, the urbanization rate of permanent residents in China was 64.72%, 0.83 percentage points higher than that at the end of last year. Li Xiaochao, director of the Office of the Leading Group for the Seventh National Census of the State Council and deputy director of the National Bureau of Statistics, once judged the urbanization process in China, saying that with the sustained economic and social development in China and the continuous advancement of various reform measures to promote urbanization, the urbanization rate will continue to rise.

A few days ago, the National Development and Reform Commission released the key tasks for the development of new urbanization and urban-rural integration in 2022, in which it was proposed that this year, China will insist on promoting the citizenization of agricultural transfer population as the primary task of new urbanization, and cities with a permanent urban population of less than 3 million will completely cancel the settlement restriction policy, promote the urbanization construction with county towns as an important carrier, support the key development of a number of county towns with better conditions, and better meet the employment and settlement of farmers in county towns and the production and living needs of county residents.

Yang Guoqiang, Chairman of the Board of Directors of Country Garden Group, has been optimistic about the urbanization process of China and the future growth prospects of county economy. He said that there is still a long way to go for China's new urbanization, people who pursue a better life are always on the road, and the reasonable housing needs of "new citizens" should be supported and met.

It can be said that under the tide of urbanization, although the real estate industry is facing short-term pain, the long-term trend of improvement has not changed. Therefore, Country Garden is not pessimistic about the broad market prospect of China real estate. In the past 202 1 year, even though the new investment of most private real estate enterprises showed a shrinking trend, Country Garden maintained the regular investment rhythm on the basis of ensuring the absolute security of cash flow. In the whole year, 333 new project reserves were added, with the total cost of equity141600 million, the corresponding value of goods was about 420 billion, and the proportion of equity remained above 85%. Of the newly acquired land, 66% is located in third-and fourth-tier cities, and 29% is acquired through diversification, which has shaken the equity value of 37%.

As of 202 1, 65438+2, 3 1, Country Garden has basically locked but not yet signed saleable rights resources and potential saleable rights resources in 3 provinces, 299 prefecture-level cities and 1425 county-level cities/counties. The company's performance and experience for many years have also confirmed that the balanced and extensive layout enables the company to effectively hedge the risks brought about by the cooling of the local market, thus ensuring stable performance.

Yang Guoqiang believes that with the integration of artificial intelligence, robots, 5G, new materials and other technologies with the construction industry, the era of intelligent building is coming. In China, products and technologies such as building robots, building information model (BIM) and new prefabricated buildings can be used for collaborative work in engineering projects, and applied to construction links such as survey, planning and design, production, construction, supervision and acceptance, and operation and maintenance management.

Over the past two years, Country Garden's exploration in the construction robot industry has provided a practical basis for the above proposal. It is understood that the new intelligent building system built by the company integrates construction robots, BIM digitalization and new building industrialization, and realizes intelligent management, construction automation and production industrialization in the whole construction process.

By the end of February 2022, 2 1 engineering robots had been put into commercial application in Bozhilin, covering more than 350 projects in 25 provinces (municipalities and autonomous regions). More than 750 sets have been delivered, and the accumulated application construction area exceeds 7 million square meters.

On 20021,Feng Tong Garden in Foshan, Country Garden became one of the seven pilot projects of intelligent buildings in China, and it was also the only pilot project in China that really introduced construction robots and applied them in batches in the construction process. Shantou Jinping Project completed the acceptance of "BIM+FMS+WMS+ construction robot" multi-machine construction system for the first time, which ran through the end-to-end intelligent construction ecological practice in the decoration stage and entered a new stage of multi-machine collaborative systematic application.

From the perspective of social value, the smart building system built by Country Garden not only helps to lead the traditional construction industry to the high-tech development path of high quality, high efficiency, safety and intelligence, but also greatly reduces the construction waste and waste on the construction site and reduces carbon emissions, which is of practical significance for China to achieve the goal of "double carbon". From the perspective of economic value, the widespread use of construction robots will also continuously improve the level of building standardization, thus reducing operating costs and achieving multiple goals of improving quality, increasing efficiency and reducing costs.

In Country Garden's view, as a pillar industry of China's national economy, with the deepening of industrial restructuring in China, it is an inevitable trend for the construction industry to develop in the direction of high quality and high technology, and construction robots are an important key factor to promote this trend. Judging from the development of the global construction industry, the development of construction robots is also an important track that many developed countries have invested heavily in. Faced with such a large market, construction robots have a very broad development space.