the real estate market continues to make big moves. china jinmao chairman said that the market is adjusting but the demand for housing is still great
2024-08-29
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china business news (reporter zhou zidi text/photo)on the evening of august 27, china jinmao, a leading real estate company, released its semi-annual report. against the backdrop of the overall industry adjustment, the company achieved a high growth rate of 174% in core net profit. quality improvement and cost control may be the main reasons for its huge profit increase.
the financial report shows that in the first half of this year, china jinmao achieved revenue of 21.975 billion yuan, a year-on-year decline; achieved net profit attributable to shareholders of 1.01 billion yuan, a year-on-year increase of 133%; achieved core net profit attributable to shareholders (excluding fair value gains on investment properties) of 1.0996 billion yuan, a year-on-year increase of 174%.
in addition, in the first half of this year, china jinmao recorded contracted sales of 44.5 billion yuan, ranking one place higher than last year to 12th in the industry; the cumulative collection was 41.3 billion yuan, and the collection rate reached 93%.
"under the current market environment, it is not easy for china jinmao to achieve a substantial increase in profits. its revenue has declined, which may be the norm for current real estate companies," lu wenxi, a market analyst at shanghai centaline property, told china business news.
the financial report shows that china jinmao's profits in the first half of the year mainly came from several projects in chengdu, hangzhou, sanya, etc., and the sales of other property development projects also progressed smoothly. in terms of urban and property development, the company made every effort to sprint for contract signing and payment collection performance, with shanghai signing contracts exceeding 5 billion yuan. deepening urban development effectively supported performance growth. at the same time, the company strengthened the pre-control of payment quality risks to ensure that 14,000 houses in 27 batches were delivered on schedule.
at china jinmao's first half results conference, its management said that more than 87% of the company's contract value for the first half of the year was contributed by first-tier and second-tier cities, and the average contract price of residential apartment products was 22,000 yuan/square meter, a slight increase from last year. in the face of greater market challenges, the company's future investment strategy will continue to adhere to the principle of safety and prudence, pay more attention to core cities and core areas, and focus on projects with higher input-output ratios.
lu wenxi said that china jinmao's performance growth has a lot to do with its product strength. the increase in its average selling price is due to the improvement in product quality. relatively high-end products can bring more premium to the company. in addition, china jinmao's substantial profit growth shows that its cost control has achieved certain results, and the company's bond issuance costs are relatively low.
data shows that in the first half of this year, china jinmao's management expenses, sales and marketing expenses, and financial expenses decreased by 34%, 19%, and 13% respectively compared with the same period last year. in terms of financial management, in the first half of this year, china jinmao's average cost of new domestic financing was only 3.28%, maintaining a low level; the proportion of foreign currency debt and short-term debt further decreased, and the proportion of debt due within one year further decreased to 15%.
china jinmao's management said at the performance meeting that the company's development model has been adjusted from "scale-oriented" to "efficiency-oriented". in the future, the company will adhere to the "one success" in investment. last year, the newly acquired projects basically maintained a good net profit margin level. at present, all of them have been put on sale, with a net profit margin of more than 10% and a gross profit margin of 15%-20%.
as the current real estate market supply and demand relationship changes and the industry undergoes profound transformation, china jinmao remains optimistic about the long-term development of the industry.
zhang zenggen, chairman of china jinmao, said that despite the changes in the current supply and demand relationship in the real estate market, there is still huge room for structural and improvement demand. specifically, first, improvement demand always exists, including the renovation of existing houses; second, policy optimization and deepening of reform and opening up will continue to exert efforts to lay the foundation for the industry to bottom out and stabilize; third, the industry is accelerating the construction of a new model of urban development, and commercial housing and affordable housing will coexist and develop.
