Produced by: Sina Finance Research Institute of Listed Companies

Author: Dayan Lou Guan/Banyin  

Recently, Everbright Garbo Zhang Mingao, Chairman of the Board of Directors of the Company Limited (hereinafter referred to as "Everbright Garbo" or "the Company"), resigned due to job changes and no longer held any position in the Company; At the beginning of this year, Zhang Mingao had resigned from the positions of executive director and president of Everbright Holdings.

As far as Everbright Garbo is concerned, its main businesses are divided into three categories: real estate asset management, real estate investment and real estate development. Among them, the projects managed by the real estate asset management business mainly adopt the private fund structure. The company's subsidiary, Guangkong Anshi, as the general partner/fund manager, initiates the establishment of fund products, and investors subscribe for fund shares as limited partners/fund investors. The Fund acquires various types of held properties such as commercial complexes, industrial real estate, etc. through equity acquisition or asset acquisition. At the same time, Everbright Anshi Platform, as the asset manager, operates and manages the underlying asset projects of the Fund, improves the asset value through project repositioning, planning and other services, and realizes investment value-added income. Light Control Anshi and Everbright Anshi platforms charge fund management fees and asset management fees for the fund and asset management services provided. At the same time, Everbright Anshi Platform also provides third-party institutions with comprehensive services such as value analysis, problem diagnosis and consultation.

From the perspective of the business situation in the previous three quarters, the company realized an operating income of 3.475 billion yuan, down 23.50% year on year; Net profit and net profit attributable to the parent company reached - 595 million yuan and - 529 million yuan, down 418.20% and 966.74% year on year. According to Wind, the company's gross profit margin from January to September last year was 28.84%, down from 29.74% in the same period of the previous year.

One of the main reasons for the decline in operating income is that the company is transforming and vigorously developing asset management and real estate investment. According to the annual reports of the past two years, it can be found that the income from real estate development still accounts for the largest part of operating income. In 2021 and 2022, the operating revenue of real estate development business will be 3.408 billion yuan and 4.901 billion yuan, respectively, accounting for 83.24% and 87.99% of the total operating revenue of the year. The transformation of the company has made its residential development sector have no new projects for many years. The third quarter report shows that the company has only two remaining projects, Dream Spring and Dream Joy, of which the equity proportion of the Dream Spring project company is only 39%, and the overall amount of income that can be carried forward will gradually decline.

The company's explanation for the decline of indicators such as net profit attributable to the parent company is that under the severe situation of the real estate industry, in order to speed up the withdrawal of funds, the company has increased the efforts to deconstruct non held saleable apartments under the management of fund projects, resulting in investment losses. In combination with the interim report, to be more specific, it is to some extent caused by price reduction to promote de industrialization. It can be seen from the income statement that the company's investment income in the first three quarters was - 489 million yuan, a decrease of 4434.61% from positive to negative compared with 11 million yuan in the same period last year. What deserves further attention is how many non holding assets the company still has to digest in its assets management under the condition that the real estate industry is still in the downward range, and how much impact this will have on the subsequent profit space.

According to public information and reports, since the previous two years, the company's own main business was real estate asset management, and it also had experience in management, operation, transformation and upgrading of the whole process. At that time, REITs was considered to be one of the possible development paths of the company in the future, realizing the linkage between real estate private equity funds and REITs. From the company's response to investors' questions on the Shanghai Stock Exchange e-platform, there is currently a REIT of Hua'an Zhangjiang Industrial Park with "Everbright Anshi Science Park" as the underlying asset, which will be listed on the Shanghai Stock Exchange in June 2021. According to the information disclosed by the company in the middle of last year, the management scale of consumption infrastructure in the assets under management of the company was 19.672 billion yuan, accounting for 46.34% of the scale under management at the end of June last year. After the pilot asset type of public offering REITs was expanded to consumer infrastructure last year, the company's subsequent arrangements remain to be observed.

In addition to REITs, the management scale of the company's asset management projects has declined. According to the third quarter report, by the end of September 2023, the fund scale and asset scale under management of investment management projects have decreased by 4.001 billion yuan and 1.842 billion yuan respectively compared with the beginning of last year, and the area under management has decreased by 24600 square meters compared with the beginning of last year; The area under management of entrusted asset management projects decreased by 97100 square meters compared with the beginning of last year. The income from asset management business also narrowed. From January to September, the operating income of real estate asset management projects was 298 million yuan, a year-on-year decrease of about 31.63% compared with 436 million yuan the same period of the previous year.

To sum up, the scale and income of the real estate asset management business are also declining under the condition that the realizable income of the real estate development business is gradually narrowing. How to support the company in the future remains to be verified by the market.