Recently, Xincheng Holding (601155. SH) handed over its semi annual report, and the financial report data showed that in the first half of the year, the company realized a revenue of 41.77 billion yuan and a net profit of 2.28 billion yuan attributable to the parent company. On the whole, in the first half of the year, the real estate market environment was still in the background of weak repair, and the company has achieved a relatively stable operating performance, not only achieving positive profits, but also certain breakthroughs in various businesses.
(Related data drawing)
Let's take a look at the highlights behind the company's financial report.
Highlight 1: The two wheel drive mode continues to consolidate and consolidate the business base.
New Town Holdings has always adhered to the strategic model of "residential+commercial", which conforms to the multiple trends and needs of the real estate market, and also enables the company's competitiveness to continue to be consolidated, showing resilience in the adverse environment of the industry.
In terms of real estate development business, the company's sales remained steady in the first half of the year, achieving a contract sales amount of about 42.4 billion yuan and a sales area of 5.1665 million square meters. According to the data of the Chinese Academy of Sciences, the sales volume of the first half of the company ranks 18th in the country, and it is in an advantageous position in the industry.
In addition, at the end of the first half of the year, the company realized a full caliber collection of 48.5 billion yuan, with a full caliber collection rate of 114%.
Robust sales performance and high payment collection rate show the company's good operating ability and fund management strength, providing a solid foundation for the company's real estate development business to grow steadily and sustainably.
In addition, in the first half of the year, the company's sold but not carried forward area reached 29.49 million square meters. Considering that the current policy continues to release significant benefits, support industry recovery, and superimpose the company's good value reserves, these also brought certainty to the company's subsequent performance growth.
In terms of business management business, in the first half of the year, the company achieved a total revenue of 5.201 billion yuan from business operations, up 10.24% year on year. The proportion of business management business in the company's overall performance has gradually increased, accounting for 12% of revenue by the end of the first half of the year. Commercial operations continue to contribute considerable revenue to the company, which also makes the company's two wheel drive strategy continuously consolidated.
It is worth mentioning that the profitability of the company's commercial sector continues to improve. The semi annual report shows that the gross profit of the company's property leasing and management business reached 3.383 billion yuan, accounting for 42.55% of the company's total gross profit from 33.74% in the same period last year. At the same time, in the first half of the year, the gross profit rate of the company's property rental and management reached 69.55%, which further supported the company's overall profitability.
In general, the "residential+commercial" dual wheel drive strategic model of Xincheng Holdings has been effectively consolidated and consolidated, which not only improves the competitiveness of the company, but also provides strong support for future business growth.
Highlight 2: Optimize the debt structure, grasp the financing window, and continuously improve the ability to resist risks.
At present, in a challenging market environment, cash flow is crucial for real estate enterprises. New Town Holdings has ensured stable cash flow by formulating reasonable business strategies and marketing strategies, as well as actively striving for financing and ensuring payment collection.
First of all, we can see from the previous collection data that the company has performed well in capital withdrawal, and this strict cash flow management also provides a solid foundation for the company to consolidate its financial foundation and resist risks. Financial report data shows that in the first half of the year, the company's net operating cash flow was 7.434 billion yuan, and the net operating cash flow was positive for five consecutive years. The company has abundant cash on hand. As of the first half of the year, the balance of cash on hand reached 28.489 billion yuan, which also provides strong support for future capital needs.
Secondly, through a series of successful low-cost financing measures, New Town Holdings not only demonstrated its credit and reputation, but also consolidated the company's capital situation.
As a demonstration private real estate enterprise, New Town Holdings made continuous progress in the financing end in the first half of the year, and successfully landed a variety of financing products, such as domestic foreign debt, Zhongpiao, Wuyue Plaza operational property loans, etc.
Among them, in May this year, Newtown Global, the overseas subsidiary of Newtown Holdings, completed the issuance of unsecured fixed rate bonds of $100 million; In June, New Town Holdings successfully issued 1.1 billion yuan of corporate bonds; In July, New Town Holdings completed the issuance of the first phase of 2023 medium-term notes with a scale of 850 million yuan and a green CMBS with a scale of 1.316 billion yuan.
It is worth mentioning that the company Wuyue Plaza operational property loan is a major financing highlight of New Town Holdings, which has the advantages of "long financing period and safe repayment". In the first eight months of this year, the operational property loans and other financing with Wuyue Plaza as collateral have reached about 11 billion yuan. This has further provided sufficient development funds for the company and ensured its sustainable operation.
At the same time, New Town Holdings has also made significant improvements in financing costs, and the average financing cost has dropped to 6.41% as of the first half of the year.
Thirdly, New Town Holdings has a reasonable debt arrangement and constantly promotes the optimization of debt structure.
As of the first half of the year, the company's financing balance at the end of the period was 66.603 billion yuan, a decrease of 4.667 billion yuan from the beginning of the year, and the company's net debt ratio was 49.52%, which remained at a low level;
It is reported that the company needs to repay 11.7 billion yuan of domestic and overseas open market bonds in the whole year. In the first eight months, it has repaid 9.7 billion yuan on schedule, leaving only one CMBS to be repaid. Considering the company's good cash reserves, smooth financing channels and adequate credit lines, the company's future repayment risk is controllable.
In general, the steady financial performance of Xincheng Holdings and its active optimization of debt structure show that the company has a strong ability to resist risks, which also brings confidence to investors and shareholders.
Highlight 3: Adhere to social responsibility, ensure delivery, practice public welfare, and promote green and sustainable development.
New Town Holdings not only pays attention to economic interests, but also actively fulfills social responsibilities, fulfills customer commitments, practices social welfare, and promotes the concept of green development.
On the one hand, the company regards "delivery guarantee" as the primary task of operation and management, and adheres to high-quality delivery. In the first half of the year, more than 50000 sets of properties have been delivered, which not only consolidated customer trust, but also improved the company's reputation and market competitiveness.
On the other hand, the company actively performs its public welfare responsibilities. As early as 2013, the large-scale public welfare brand "Seven Color Light Plan" was founded. Now this project has passed ten years and achieved remarkable results in the field of public welfare. According to its core project "Guangcai Library" launched in the equal rights section of education, the project has now spread across 16 provinces and 2 municipalities directly under the Central Government. It has sent books, tables and chairs, sporting goods and other materials to 66 rural primary schools, and has continued to receive volunteer support, providing more opportunities for students in poor areas.
In addition, New Town Holdings also actively promotes green and low-carbon development, integrating the concept of sustainable development of green and environmental protection into daily office work, project construction and commercial operation. In the first half of this year, the company's Wuyue Plaza project won the national green building certification in Baotou Kunqu District, Nanchang Jinxian, and Guigang Gangbei.
Conclusion:
To sum up, Xincheng Holding's performance in the first half of 2023 is commendable. The company sticks to its credit and adopts a sound strategy, which not only makes profits, but also actively practices social responsibility and green development, demonstrating the concept of stable and sustainable development. At present, the two wheel drive strategy has continuously consolidated the competitive advantage of New Town Holdings in the industry, consolidated the company's financial fundamentals, and promoted the steady development of business. It is reasonable to believe that under the excellent strategic guidance, Xincheng Holdings will continue to create value for customers, shareholders and society, and lay a solid foundation for sustainable growth.
