among the eight china construction companies, who makes the most money?
2024-09-12
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the performance of the "china construction group" in the first half of this year can be described as mixed.。china real estate news reporter miao ye | beijing reportwith a net profit of 29.45 billion yuan, china construction ranks first among the eight major central construction enterprises. it remains the "leader" of the industry.opening the 2024 semi-annual report of china construction, a quick overview of the semi-annual report clearly presents its performance in the first half of the year. the newly signed contract amount is 2.48 trillion yuan, a year-on-year increase of 10%; the operating income is 1.14 trillion yuan, a year-on-year increase of 2.8%; the net profit attributable to shareholders of listed companies increased by 1.6% year-on-year... under the background of the overall operating performance of the construction industry under pressure, china construction has handed in a good "answer sheet"."in the second half of the year, china construction will be committed to the strategic goal of 'one creation and five strengths' and the strategic path of 'one, six, six' to complete various annual goals and tasks," said wen bing, president of china construction.from the financial data, although china construction's various businesses have achieved growth, its real estate development and investment businesses have experienced varying degrees of decline. during the reporting period, china construction's real estate business contract sales were 191.5 billion yuan, down 20.6% year-on-year; operating income was 116.4 billion yuan, down 8.7% year-on-year; gross profit was 22.6 billion yuan, down 2.1% year-on-year.being in the downward cycle of the real estate industry, this "industry leader" in the field of construction engineering was not spared.huang jie, vice president and chief financial officer of china construction, said at the performance meeting that looking at the real estate inventory on hand, more than 90% are concentrated in core locations in first- and second-tier cities. the overall asset quality is still relatively high, sales expectations are good, and risks are controllable.━━━━
china overseas land & investmentstill big brotherchina construction disclosed the net profits of its 20 subsidiaries in the first half of 2024 in its semi-annual report.overall, although the real estate business accounts for a relatively low proportion of china construction's newly signed contracts and operating income, it accounts for 21.9% of the total gross profit, and its gross profit margin of 19.4% ranks first among the four main businesses. while the gross profit margins of other sectors have all declined year-on-year, the gross profit margin of the real estate business has increased by 1.3 percentage points."the policy effects are gradually emerging, and the market is expected to show a trend of mild recovery." wu bingqi, vice president of china construction, expressed confidence in the development trend of the real estate industry.in the first half of this year, the sales and storage expansion indicators of the "china construction group" performed strongly. during this period, not only did the newly added land value of china construction yipin and china construction zhidi rank among the top 5 in the industry, but the total real estate sales of the eight engineering bureaus under the "china construction group" reached nearly 80 billion yuan.among them, china construction yipin entered the top 20 of the sales list with sales of 26.94 billion yuan, china construction dongfu also sold 22 billion yuan in the first half of the year, and china construction zhidi, china construction jiuhe, china construction xinhe and other engineering bureaus had sales of less than 10 billion yuan, but all were promoted to the top 100 list of sales.china construction also specifically mentioned the above-mentioned engineering bureaus in its semi-annual report, saying that during the reporting period, it responded to new changes in the real estate market, strengthened targeted investment, increased sales and clearance efforts, and further enhanced its brand strength.in terms of breakdown, china overseas land & investment is still the "big brother" of china construction, accounting for 70% of china construction's real estate sales in the first half of the year. its net profit of 9.93 billion yuan in the first half of the year is far ahead of its brother companies. the other two companies with strong "earning power" are china construction dongfu, with a net profit of 7.575 billion yuan in the first half of the year, and china construction yipin's half-year net profit of 7.204 billion yuan. relatively weaker are china construction fourth engineering bureau, sixth engineering bureau and seventh engineering bureau, with net profits of 334 million yuan, 499 million yuan and 555 million yuan in the first half of the year respectively.bai wenxi, vice chairman of the china enterprise capital alliance, believes that in terms of sales and reserve expansion, the "china construction group" is indeed at the forefront of the industry and has demonstrated strong market competitiveness. based on china construction's assessment of various platforms, including sales, cash flow and other indicators, internal competition pressure is also high. however, the real estate business has a high degree of synergy with the main engineering business of each bureau, and naturally has become an important support for the apparent performance of each bureau."judging from their performance, some engineering bureaus will face certain sales pressure." a person close to china construction believes that in the past two years, the real estate sales and reserve expansion scale of china construction's eight subsidiaries have approached that of china overseas land & investment, but their popularity and profits are not as good as those of china overseas land & investment. coupled with the increase in land acquisition costs, operations and profitability are a challenge.━━━━
there is "radical" and there is "loss"as the "china construction group" gradually becomes an "invisible landlord", its "eight subsidiaries" also frequently become "dark horses".in the list of top 100 land acquisition companies released by china index academy, china construction first property development co., ltd. ranked second with an equity land acquisition amount of 21.3 billion yuan in the first half of this year, second only to jianfa real estate. compared with the equity land acquisition amount of 5.5 billion yuan in the same period last year, this year's amount has soared 2.9 times, and the absolute amount has exceeded poly development, china resources land and china overseas land & investment."we must improve our regional position and strive to become one of the top 20 real estate developers in the country." xu chao, chairman of china construction first property, clearly stated at the 2024 work conference that the sales scale target is to reach 100 billion yuan.in the past two years, the "china construction group" intending to expand the market has blossomed in the land auction market across the country. in particular, china construction yipin has maintained a high-intensity investment rhythm, spending more than 20 billion yuan on land acquisition in the first half of the year, while the total amount of land acquisition by the top 100 real estate companies in the same period fell by 30%. in 2022 and 2023, china construction yipin spent 7.5 billion yuan and 14.6 billion yuan in the land market."comprehensively improve the scale and efficiency of investment and development, select core cities, deeply cultivate key areas, and find a land acquisition model suitable for this region." at the beginning of 2024, china construction first grade made special arrangements for land acquisition.subsequently, china construction yipin made moves in multiple cities. in the first half of the year alone, china construction yipin acquired the yangfang and xihongmen plots in beijing, spending more than 7 billion yuan. in addition, it also joined hands with the hubei cultural tourism consortium to acquire the shenzhen longhua plot for 5.179 billion yuan, and acquired the shanghai yangpu riverside plot for 3.75 billion yuan.according to outside sources, by 2025, china construction first will achieve sales of 10 billion yuan in the five urban clusters of beijing-tianjin-hebei, yangtze river delta, greater bay area, central china, and southwest china. however, with the high frequency of acquisitions, china construction first also has a large demand for funds, and its debt ratio in 2023 is about 75%.on june 14, a "giant" project in chaoyang district, beijing, was won by china construction intelligent land. as the first time in beijing to combine residential, industrial and commercial supporting land at one time, this large-scale combined land parcel includes three major areas in the northern chaoyang district, namely jiuxianqiao, qianweigou and electronic city, with a total construction area of about 15.7 hectares. china construction intelligent land spent 11.2 billion yuan to acquire this land parcel.the aforementioned person close to china construction said that each engineering bureau of the "china construction group" has set its own sales targets, and will naturally increase its efforts to acquire land. investment resources are mainly concentrated in first- and second-tier cities, with beijing and shanghai being the most favored, and the market capacity and sales performance are the support.from the perspective of the "china construction group", the pressure is on china construction dongfu. the former leader of the "china construction group" is being overtaken by its brothers.on july 27, the leadership team of china construction dongfu gathered in shanghai to hold the 2024 mid-year work meeting. general manager zhang tao emphasized that in the second half of the year, every effort should be made to complete sales and cash collection, and to strive for various annual goals and tasks.in the list of real estate companies' new value of goods in the first half of 2024 released by cric, china construction yipin and china construction zhidi ranked third and fifth with 46.71 billion yuan and 35.37 billion yuan respectively. china construction dongfu was surpassed not only in sales, but also in investment layout. the only record was that china construction dongfu won a plot of land in gucun, baoshan, shanghai for 2.657 billion yuan in march this year. china construction xinhe's land acquisition amount was 5.2 billion yuan, which was also ahead of china construction dongfu.in shanghai, the home base of china construction dongfu, its sales advantage within the "china construction system" has been surpassed by china construction yipin and china construction jiuhe. according to cric data, china construction dongfu's sales in shanghai in the first half of the year were only about 2 billion yuan, lower than china construction yipin shanghai and china construction jiuhe shanghai. in addition, its two projects on sale in shanghai, fengxian china construction yujingyuan and chongming china construction chunhejingming, also encountered difficulties in sales. chongming china construction chunhejingming sold 15 units in the first six months of opening, an average of only 3 units per month. at the same time, the sales prospects of the two new projects in baoshan and hongkou are also unclear.at the first quarter business analysis meeting of china construction dongfu, chairman zuo chenhua also said: "we must speed up the completion of the sales task, strengthen cash flow management, and improve project development efficiency."the reason behind this is that as of the end of the first quarter of this year, china construction dongfu's inventory climbed to 76.17 billion yuan, an increase of 8.9% compared with the end of last year.overall, the performance of the "china construction group" in the first half of this year can be described as mixed.according to wu bingqi, of china construction's investment budget of more than 400 billion yuan in 2024, the investment budget for real estate development projects accounts for about 3/4, of which new land reserves account for the vast majority of the budget. the 28 new pieces of land acquired by the company in the first half of the year are all located in the core areas of first-tier cities and strong second-tier cities.according to the semi-annual report of china construction, in the first half of the year, it purchased 28 new plots of land, added 3.41 million square meters of land reserves, with a total land purchase amount of 51.7 billion yuan, and a total land reserve of 84.54 million square meters at the end of the period. among them, china overseas land & investment purchased 6 new plots of land, added 1.169 million square meters of land reserves, and the purchase amount was 12.9 billion yuan; china construction real estate purchased 22 new plots of land, added 2.245 million square meters of land reserves, and the purchase amount was 38.8 billion yuan. the purchase amount in first-tier cities accounted for 74.7%.bai wenxi believes that the "china construction group" has increased its investment in real estate business against the trend, which is in line with the demand for the growth of the performance scale of central enterprises. at a time when the construction industry is overcapacity and profits are falling, the real estate business has a high degree of synergy with the main construction business, and has a high gross profit margin and a large enough industry scale. it has obviously become the second curve of the "china construction group"'s business growth and profit source. behind the fierce land acquisition is an important force that strongly supports the growth of china construction's performance, and it also sends a signal that the "china construction group" has the ability and capital to deploy in core cities.editor-in-charge: ma lin, wen hongmei
