China News Service, August 18 (Zuo Yuqing) On the 18th, Country Garden issued a profit warning and held an online investor telephone communication meeting. Senior executives such as Country Garden Group President Mo Bin and Executive Vice President Cheng Guangyu attended.
The announcement shows that in the first half of this year, Country Garden's core net profit was between 4.5 billion and 5 billion yuan, compared with 15.2 billion in the same period last year; the net profit attributable to shareholders was between 200 million and 1 billion yuan, compared with 15 billion in the same period last year. Yuan.
Country Garden stated in the announcement that most of the factors affecting profitability are non-cash in nature. The Group's operating conditions are good, with sufficient cash available, and its cash flow remains stable.
"In the process of market downturn and market bottoming, the most important job of management is to focus on cash flow. Do a good job of balancing the balance sheet and the income statement. To ensure that the company can survive, let us live until a healthy market arrives. I can live better." Mo Bin said at the communication meeting.
"So while we ensure that each suite is delivered on time, all our bonds must be paid rigidly to ensure our core assets and core personnel. At the same time, we are committed to new business, with the support of the competitiveness of new business and main business, We can do better and better.”
Mo Bin mentioned that Country Garden
all the risk points that may be encountered in the future into consideration of cash flow planning, and has done the ultimate version of the stress test.
Rolling updates are carried out quarterly in the medium and long term and weekly in the short term to ensure the realization of “shaving peaks and flat valleys” to smooth out possible periodic fluctuations and leave enough safety pads to deal with external uncertainties.
In the first half of the year, equity sales amounted to 185 billion yuan, and equity cash collection was about 170.3 billion yuan. The equity collection rate was 92%, and the collection rate has remained above 90% for seven consecutive years.
In terms of debt, Mo Bin said that in the second half of 2022, Country Garden has no foreign dollar bonds due overseas; two domestic bonds have reached the status of resale, totaling 4 billion yuan.
In addition to this, there are no direct financings due in the second half of the year.
Regarding Country Garden's arrangements for the second half of the year, Cheng Guangyu said that the
second half of the year is still in the process of building the bottom
"We basically believe that the situation will not be worse than the first half of the year, but there will be no major reversal. It is a process of consolidation at the bottom and the city is differentiated. We cannot change this market, but there must be Strategy."
According to Mo Bin, in the first half of this year, Country Garden delivered 1,070 batches of more than 250,000 houses in 214 cities, and plans to deliver 500,000 houses in the second half of the year.