Produced by: Sina Finance Research Institute of Listed Companies

Author: Dayan Lou Guan/Banyin

Recently, Nanjing Qixia Construction The limited liability company (hereinafter referred to as "Qixia Construction" or "the Company") announced the sales and development of real estate in 2023, and the sales area and amount of real estate projects declined. There was no new land reserve or new construction area in the whole year; The income from rental property increased compared with last year.

Also at the beginning of the year, the company's second largest shareholder Nanjing Hi-Tech The share reduction plan of has expired and this plan has not been implemented. In fact, this is the second reduction plan of Nanjing High tech in a year. The two reduction periods are November 30, 2022 to May 29, 2023 and June 30 to December 29, 2023, which can be said to be the next time. As for why they were not implemented twice, the first time was due to market conditions, and the second time was not disclosed. If we compare the stock price level and other factors during the two share reductions, we can infer that market factors are also one of the main factors to some extent. The second largest shareholder has been trying to reduce its shares for about one year, which deserves follow-up attention.

From January to December 2023, the company's commercial housing equity contract sales area is 92100 square meters, down 20.40% year on year from 115700 square meters in the same period of the previous year; The contractual sales amount of commercial housing equity was 3.275 billion yuan, compared with 4.704 billion yuan in the same period of the previous year, a decrease of 30.38%. After calculation, the average price of contract sales is 35600 yuan, down about 12.54% year on year. Last year, the overall sales situation in 2022 still showed a downward trend.

What is related to sales is inventory, mainly the situation of stock houses. From the details disclosed in the interim report, the balance of the company's developed products at the end of June was 4.81 billion yuan, an increase of about 142.55% over the balance of 1.983 billion yuan in the same period last year, and the highest value in the first half of 2019-2023. On the whole, the pressure of inventory reduction is still not small.

In addition to sales data, the company's profitability indicators also deserve attention. From January to September, the company realized an operating revenue of 3.834 billion yuan, up 6.49% year on year; Net profit and net profit attributable to parent company were 24 million yuan and - 0.12 billion yuan, down 88.64% and 105.66% year on year. According to Wind's calculation, the company's gross profit margin in the first three quarters of last year "halved" to 11.30% compared with 23.96% in the same period of last year, and the net profit margin fell to 0.63%. The above two indicators were also the lowest in the same period in recent five years. According to the land acquisition situation of the company in previous years, to some extent, it is the result of digesting the high price of land acquisition in previous years.

From the perspective of capital structure, as of the end of September, the company's asset liability ratio after excluding advance receipts was 76.69%, still at a high level. Then look at the company's liquidity. At the end of September, the company's monetary capital balance was 2.27 billion yuan, short-term borrowings and non current liabilities due within one year were 360 million yuan and 2.561 billion yuan, respectively. Based on the total of the two, short-term interest bearing liabilities were estimated to be 2.921 billion yuan. Then, without considering the limited funds, the gap between the company's funds in hand and the estimated short-term interest bearing liabilities is about 650 million yuan, and the short-term solvency is under pressure.

From the perspective of cash flow, the net cash flow from operating activities in the first three quarters was 1.341 billion yuan, still in a net outflow state. The investment activities deserve more attention. In May this year, the company announced a capital reduction of 1.15 billion yuan for its wholly-owned subsidiary Nanjing Maiyan, mainly because the Nanjing Yujing Shangfu developed and constructed by Nanjing Maiyan was basically sold out and has been completed and delivered. At present, there are no new development projects under it; At the same time, the company said that capital reduction is conducive to optimizing its own resource allocation and improving the efficiency of capital use. From the above statement, the way of capital reduction should be through the recovery of investment funds. According to the cash flow statement of the parent company disclosed in the third quarter report, the amount of "cash received from investment recovery" was 13.6044 million yuan, which was significantly different from the amount of capital reduction. It remains to be seen to what extent the capital reduction of more than 1 billion yuan has been carried out or by other means.