Chinanews Client Beijing, September 8th (Zuo Yukun) Since the beginning of this year, there have been big news about the regulation of the property market, and the changes that have occurred in the longer period have been condensed. The transcripts of the "midterm exams" of real estate companies have attracted special attention. .

　　As soon as the semi-annual report came out, many people sighed that real estate, a traditional "profiteering industry", seemed to be less profitable.

Why is this?

Data Map: Many real estates.

Photo by Zhang Yichen

China Fortune Happiness becomes the "Loss King"

　　First of all, it is worth mentioning that the "A-share loss king" in the first half of 2021 was born among real estate companies.

　　Today's Huaxia Happiness will probably make investors "very unhappy".

China Fortune Land Development's semi-annual report shows that operating income in the first half of the year was 21.068 billion yuan, a year-on-year decrease of 43.63%; net profit was -9.48 billion yuan, a year-on-year decrease of 256.37%.

At the same time, the company’s total liabilities amounted to 392.341 billion yuan, and non-current liabilities due within one year were 78.902 billion yuan.

　　Since the beginning of this year, the stock price of China Fortune Land has fallen by nearly 70%. Why have established real estate companies turned into bear stocks?

China Fortune Land Development said that due to multiple rounds of the epidemic and the company’s liquidity shortage since the fourth quarter of 2020, the company’s financing business has been greatly affected. Influence.

Screenshot of Huaxia Fortune's stock price.

　　At the same time, China Fortune Land Development, with its poor performance and high total debt, also "dragged" Ping An of China.

Ping An’s semi-annual report stated that in the first half of 2021, it achieved a net profit of 58.05 billion yuan, a year-on-year decrease of 15.5%, mainly due to the amount of 35.9 billion yuan in impairment of China Fortune-related investment assets, valuation adjustments and other equity adjustments. Influence.

"Top students" are also "

embarrassed

"

　　Not only Huaxia Fortune, but Vanke, which is recognized as a "good student" in the industry, is also in the dilemma of "increasing revenue but not profit".

　　Vanke's operating income in the first half of the year was 167.11 billion yuan, a year-on-year increase of 14.2%; however, due to the decline in profitability of the real estate development business, the net profit attributable to shareholders of listed companies during the reporting period was 11.05 billion yuan, a year-on-year decrease of 11.7%, which was the first time since 2008. A year-on-year decline in semi-annual net profit occurred at one time.

　　Vanke attributed the decline in net profit to three reasons: first, limited sales growth; second, rapid decline in gross profit margin; third, the effect of business transformation has not been truly reflected.

　　Vanke CEO and President Zhu Jiusheng said frankly that facing such a problem, it is like failing a mid-term exam and facing the teacher "very nervous".

For this reason, Vanke, which proposed to "survive" in 2018, now again proposes "survival is more important than anything else."

　　Known as the "king of scale", Country Garden achieved a total income of 234.93 billion yuan in the first half of the year, ranking first among real estate companies.

However, gross profit margin and net profit margin fell below 20% and 10%, respectively, for the first time in many years.

Compared with the 27% increase in revenue, Country Garden's net profit in the first half of the year increased by only 2.3% year-on-year.

　　The "king of profits" China Overseas Land & Investment's gross margin fell below 30% to 28.5% for the first time in the first half of the year, a year-on-year decrease of 2.1 percentage points.

With a net profit of 20.78 billion yuan, it ranked first among real estate companies. It was also the only real estate company whose parent net profit exceeded 20 billion yuan in the first half of the year. However, its net profit increased by 1.2% year-on-year, which was far below the median of companies of the same size. level.

　　A review of the semi-annual reports of real estate companies found that whether they are top students such as Vanke, China Overseas, Longfor, China Resources Land, and Poly, or real estate companies with tight liquidity such as Evergrande, China Fortune Land Development, and Blu-ray Development, they are also facing product gross margins and profit margins." Plummet" issue.

It is an indisputable fact that the profit level of real estate companies has declined significantly.

　　According to statistics from Centaline Real Estate Research Center, among 102 listed real estate companies that announced their first-half results, nearly 40% of their net profits fell year-on-year; the combined net profit of 102 real estate companies dropped by 14%.

Data map: Aerial photography of a newly built residence on the banks of the Min River in Fuzhou City.

Photo by China News Agency reporter Lu Ming

Selling a house is not making money?

　　Why is there a decline in industry-wide gross profit margin?

Lin Feng, CEO of CIFI Holdings, said that part of the reason was that there was no limit to house prices when land was acquired in 2017 and 2018. Since then, house prices have been limited and the market has fallen. The profit situation of these projects is not very satisfactory.

Sun Hongbin, chairman of the board of directors of Sunac China, said more bluntly: "If the land bought in 2017 has not been sold, it will lose a lot of money now."

　　In addition to the historical problems around 2017, this year's real estate companies are also facing a new situation-22 cities have implemented centralized land supply, and almost all of them have high premiums during the first round of land supply.

Afterwards, it was reported that the Ministry of Natural Resources held a closed-door meeting on August 10 and clearly stated that the premium rate of the single parcel of centralized land supply should not exceed 15% in the next step, and strictly control the new high of urban floor land prices.

In the subsequent centralized land supply in many cities, the previous bidding rules have also been adjusted.

　　In addition, another reason for the decline in gross profit margin of some real estate companies is the "price war" of lowering prices.

　　"The entire capital market this year is tight. Sales in the first half of the year were relatively good, and sales pressure in the second half of the year was great." Sun Hongbin predicts that the real estate market in the second half of the year will be "comparatively tragic."

This is because some companies have cut prices after relatively heavy pressure; on the other hand, because of the resolute implementation of national policies, "people have already expected that housing prices will not rise."

　　Shimao Group President Xu Shitan also said that the industry is currently in the integration stage and sales may slow down in the second half of the year.

Data map: Poly Xinyu Garden in Tianhe District, Guangzhou.

Photo by China News Agency reporter Chen Jimin

"From quantity to quality"

seeking new breakthroughs

　　Industry experts believe that with the Matthew effect increasing, the development goals and needs of real estate companies of different sizes will face divergence.

Under the influence of policies, real estate companies have gradually changed the underlying logic, replacing their obsession with scale with high-quality and sustainable development, and seeking new breakthroughs in their layout before the performance of traditional industries peaks.

　　It can be seen that real estate companies have gradually slowed down the pace of expansion.

According to data from the China Index Research Institute, from January to August 2021, the top 100 real estate companies acquired 1,888.3 billion yuan in land, a year-on-year decrease of 10.8%.

Among them, the total land acquisition of 50 representative real estate companies decreased by 76.2% year-on-year and 51.8% month-on-month.

　　At the same time, leading real estate companies have also begun new explorations.

For example, Country Garden promotes robotics, modernizes agriculture, Vanke makes efforts to rent apartments, logistics and warehousing, and Poly enters shopping malls, hotels, and so on.

　　"The reduction of profit margin is an inevitable stage of the development of the industry, because the industry has passed through the era of huge profits, and there will be no huge profits in the future." After bottoming out at the end of 2022, it will bottom out and rebound.

　　At the end of the era of huge profits, real estate companies that "from quantity to quality" will face many "big exams."

(over)