On March 30, Country Garden released its 2021 annual performance report.

After the report was released, Country Garden's stock price rose by more than 8.9% in the afternoon of the day.

  The annual report shows that in 2021, Country Garden's sales scale will remain the industry leader, the debt scale and financing cost will be "double reduced", the debt structure will be further optimized, and the financial situation will become more stable.

For the whole year of 2021, Country Garden's equity contracted sales amounted to 558 billion yuan, revenue was 523.06 billion yuan, a year-on-year increase of 13%; gross profit, net profit, and core net profit attributable to shareholders were 92.78 billion yuan, 40.98 billion yuan, and 26.93 billion yuan respectively. The operation maintained a solid advantage.

  At the same time, the company's sales receipts remained high.

In 2021, Country Garden has achieved a cumulative cash return of about 502.2 billion yuan from the sale of equity properties, and the equity collection rate has reached 90%, which has reached 90% or above for six consecutive years.

The high sales collection rate greatly guarantees the safety of the company's operating cash flow.

In 2021, Country Garden will achieve a positive net operating cash flow of 10.86 billion yuan, which shows that the company's own hematopoietic capacity is strong.

  In addition, Country Garden continued to optimize its debt structure and further enhanced its financial stability.

As of December 31, 2021, the company's cash balance was about 181.3 billion yuan, and the available cash reserves were sufficient; the total interest-bearing debt balance decreased by 2.6% year-on-year to 317.92 billion yuan, of which the proportion of short-term debt dropped to 25%, cash short-term debt ratio is about 2.3 times.

The net gearing ratio was 45.4%, an improvement of 10.2 percentage points from the end of the previous year; the weighted average financing cost decreased by 36 basis points to 5.2% from the end of the previous year.

  Steady operating strength and better solvency have enabled Country Garden to gain recognition and support from the capital market.

At present, Country Garden is one of the few private real estate companies in the industry that has successfully restarted domestic and overseas financing channels.

  Before September 2021, the company will seize market opportunities to issue long-term, low-cost financing instruments in domestic and overseas markets.

After September, with the support of various regulators and investors, Country Garden has also successfully issued various types of direct financing instruments at home and abroad, including 1 billion yuan of corporate bonds, 1.5 billion yuan of ABS and 3.9 billion Hong Kong dollars of convertible bonds.

In March 2022, Country Garden was approved for the first time by the Interbank Dealers Association with a quota of 5 billion yuan, which is expected to be launched after the results are released.

  At the same time, the development of Country Garden has also been fully supported by banking institutions.

As of the end of 2021, the company has not used a credit line of about 261.5 billion yuan.

In March 2022, the company signed strategic cooperation agreements of 15 billion yuan and 40 billion yuan with China Merchants Bank and Agricultural Bank of China Guangdong Branch.

Analysts believe that the sufficient credit line enhances Country Garden's operational flexibility and stability, and can better grasp the opportunities for mergers and acquisitions presented in the market.

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