The performance of the World Union Bank after the pain has not yet picked up Chen Jinsong said that this year's agency sales are expected to reach a new high

On the afternoon of April 15, the World Union Bank (002285.sz) held its 2020 annual results meeting in Zhuhai, Guangdong, where the new actual controller is located.

According to the 2020 performance report of the World Union Bank, the company achieved operating income of 6.72 billion yuan during the period, an increase of 1.1% year-on-year, and the net profit attributable to the shareholders of the listed company was 110 million yuan, an increase of 35.33% year-on-year. Although these two data ended the year-on-year decline in 2019, they did not return to the level of 2018: last year's operating income decreased by 10.8% compared with 2018, and net profit attributable to shareholders of listed companies decreased by 73.8% compared with 2018.

For last year's performance, the World Union Bank said in its annual report that since 2017, when revenue and profits have reached a stage high, the World Union Bank has begun to intensively deploy the second curve of growth, but it has lost opportunities and misplaced on the two runways: First, it has not worked the main battlefield along the main direction of industry changes, that is, it has worked digitalization, and has invested too much in transaction-related extension business. The second is that the market for long-term rental apartments, including Hongpu Apartment and World Union Space, is too optimistic, and it has not attracted enough attention to the impact of heavy investment on performance. This makes the newly expanded business fail to light the "lighting", and the main agency business cannot support the "whole sky".

In 2020, the Bank underwent a series of drastic changes.

After the acquisition of Tongce Consulting failed, it introduced Zhuhai Dahengqin Group Co., Ltd. (hereinafter referred to as "Dahengqin"), a state-owned enterprise in Zhuhai, to transfer voting rights, withdraw from the "58 Love House Alliance", and sell the small loan business.

At present, Dahengqin holds 15.94% of the shares, ranking the second largest shareholder of the World Union Bank, and at the same time, it also accepts the voting rights corresponding to the 14% of the shares entrusted by the largest shareholder, World Union China, thus becoming the single shareholder with the highest proportion of voting rights in the company, and the actual controller of the World Union Bank is changed to the State-owned Assets Supervision and Administration Commission of Zhuhai Hengqin New Area. Previously, on March 29, the 21st meeting of the fifth board of directors of the World Union Bank was also held at the headquarters of Hengqin in Zhuhai. In addition, the world union bank's asset management headquarters is currently also located in Hengqin headquarters.

The Bank's management structure has also changed. Hu Jia, Tian Wei and Deng Feng from Dahengqin entered the board of directors, Hu Jia became the chairman of the group, Chen Jinsong changed from chairman to co-chairman, and the new financial director was taken over by Xue Wen from Dahengqin.

"Since Dahengqin Group became the actual controller, the first thing we did was to reflect." Chen Jinsong, co-chairman of the World Union Bank, said at the april 15 performance meeting, "Before 2020, the World Union Bank has gone through so much exploration and done so many things, and if it does not do well, it will not do it." The next step is to divest some assets that are dragging down performance and are not the main direction. Second, we and Dahengqin Planning have made a '2111' strategy, focusing on the two directions of 'big deal' and 'big asset management'. ”

On January 18, 2021, the World Union Bank transferred 100% of the equity of Shenzhen Shilian Jifang Asset Management Co., Ltd., the main subsidiary of the implementation of the long-term rental apartment construction project, and officially divested the long-term rental apartment construction project.

For the "big deal", Chen Jinsong believes that the competition between various platforms is becoming more and more fierce, the profits of developers are getting thinner and thinner, and the role of the platform will slowly become prominent. He judged: First, the trend of continuous decline in agency fees is suspended, because it is already low; second, the era of agency value creation and integrated platform is coming; third, all marketers should regain their hands on digital tools.

"We are reflecting on why the Bank's performance has declined over the past so many years. People are generally good, how did you slide? It's because the World Union Bank hasn't done enough in digitization to make us passive, so we started to push together in 2020 to accelerate the smart case field. Chen Jinsong added.

For "big asset management", Chen Jinsong said: "Our general direction is to g (local governments and management committees), to b (large enterprises, developer owners) and then to c. ”

Hu Jia, chairman of the World Union Bank from Dahengqin, added that almost all the infrastructure construction in Zhuhai Hengqin Area is invested by the government, and about 90% of the current construction is completed by Dahengqin Company, and about 80% of the land first-level development is also in the hands of Dahengqin Company. Since last year, Dahengqin has built a city operator + industry developer. "This big logic and background, Dahengqin officially entered the World Union Bank. We are looking at the synergy of the World Union Bank. Hu Jia said.

For the "big deal" performance growth that investors are concerned about, Chen Jinsong expects that the World Union Bank's agency sales in 2021 will exceed the highest in history in 2017.

"We can't expect the growth of China's new real estate market as before, which is completely unrealistic." The transaction area in 2019 has almost reached its peak state. Assuming that total sales decline by 1/3 in 2025, while the new growth area will be concentrated in about 100 cities; we can achieve stable performance in these 100 cities, and we will find that the growth rate of the total amount is not slow. Chen Jinsong said.