Produced by: Sina Finance Research Institute of Listed Companies

　　 Author: Dayan Lou Guan/Banyin

On April 2, Beijing Investment Development Announced the annual report of 2023, in which the operating revenue will reach 10.641 billion yuan in 2023, an increase of 91.65% over the same period of 2022; The net profit attributable to the parent company was RMB - 659 million, which turned from profit to loss, with a year-on-year decline of 425.91%. Although the real estate industry is currently in a period of deep adjustment, the difference in the change trend of the company's revenue and net profit, as well as the performance of cash flow and the "hematopoietic" end, deserve attention.

　　 For the second year in a row, the operating cash flow is a negative high leverage model and whether it can have both its own "blood"

At this stage, the real estate industry is still in a period of adjustment. In the case of scale development and high turnover, how to ensure operational cash flow has become increasingly important. According to the disclosure in the annual report, the cash flow generated by the business activities of Beijing Investment Development Co., Ltd. in 2023 will be -4326 million yuan. Following the -8354 billion yuan in the same period of 2022, the operating cash flow for the second consecutive year will be a net outflow.

Although the company's overall cash and cash equivalents still show net inflows, this is mainly from the large net inflows of cash flows from financing activities, which will reach RMB 10.002 billion in 2023. It seems that the development of Beijing Investment is still not divorced from the old model of real estate, "high leverage, high debt".

Wind database shows that in 2023, the company's asset liability ratio after excluding advance receipts will be as high as 83%, which is the third consecutive year of growth since the company reduced this indicator to 68.43% in 2020.

Specifically, the balance sheet shows that at the end of 2023, about 25.129 billion of the balance of long-term loans of 29.029 billion yuan is entrusted loans from the controlling shareholder Beijing Infrastructure Investment Co., Ltd; At the same time, the balance of other payables of the company at the end of December 2023 was 6.437 billion yuan, a significant increase of 547.49% compared with 979 million yuan at the end of 2022. It can be seen from the details that the main source of growth also comes from the borrowings from related parties, that is, the controlling shareholders provided 5.29 billion yuan of borrowings to the company during the reporting period.

In other words, the difference of the company's high leverage model lies in the fact that the main source of funds is the support of major shareholders, which will significantly reduce the risk of leverage. However, we also need to think about how to improve our ability to "generate blood" while reducing the dependence of major shareholders.

　　 Double the operating income and turn the net profit into negative?

As for the performance loss, there are three aspects in summary: first, the projects delivered and carried forward during the reporting period are basically restricted houses, with low gross profit margin; Second, subject to the impact of land value-added tax liquidation, the land value-added tax is accrued; Third, the impact of withdrawing asset impairment losses.

To be specific, the first is the so-called competitive housing, which simply means that the highest selling price of this type of housing is locked in advance when the land is transferred, and developers cannot increase the price without authorization. This means that for the company, the upper limit of this part of income is relatively certain, and the gross profit rate may be further compressed in the case of a general decline in house prices; At the same time, how to ensure the de conversion while ensuring the quality of housing supply is also one of the challenges brought by limited competition housing.

In the cost segment, the land cost of the company in the real estate development business increased significantly by 217.58%, which exceeded the growth of operating income, and its share in the total cost also increased from 43.90% to 63.35%, which to some extent indicates that the company is still digesting the relatively high cost plots before. More importantly, in the remaining projects for sale, development or not yet carried forward, is there any restricted housing that makes the company's profitability uncertain?

From the perspective of impairment factors, the Company's asset impairment loss and credit impairment loss in 2023 are respectively RMB 139 million and 80 million, while in 2022 they are respectively RMB 151500 (reversal) and RMB -4851600. It is not difficult to see that the impairment in 2023 will increase significantly. Among them, the asset impairment loss mainly refers to the provision for falling price of inventories accrued for two development projects, namely, RMB 117 million and RMB 43 million respectively for Miyun Jinyuefu and Sanhe Zhuojun (Phase I), totaling about RMB 160 million.

In addition, in the context of the overall emphasis on "cost reduction and efficiency increase" in the real estate industry, the company's sales expenses and administrative expenses have increased. In 2023, the amount of the two will be 203 million yuan and 190 million yuan respectively, with year-on-year growth of 26.30% and 13.26%.

According to the details, the growth of sales expenses mainly comes from the growth of sales agency fees and advertising and promotion fees, with an increase of 20.27% and 50.82% respectively; However, the intermediary service fee in the management fee has nearly doubled from 6.9853 million yuan in 2022 to 13.5706 million yuan. It is doubtful whether this part of the increase is also related to the revenue.

To sum up, as a real estate developer who deeply cultivates the TOD model, how to play the added value and advantages brought by this model deserves attention.