Recently, CRIC Real Estate Research released the performance ranking of real estate companies in 2023. Under the in-depth adjustment of the industry, the pattern of the top 100 real estate companies continues to be differentiated. Specifically, the number of companies with a year-on-year decrease in the cumulative performance of the top 100 in 2023 accounts for nearly seventy percent, of which 31 have a year-on-year decline of more than 30%. It is worth noting that under the market adjustment, some real estate companies have shown strong resilience and repair capabilities, actively grasped the market window opportunities, and promoted sales decentralization. Among them, China Merchants Shekou (001979. SZ) focused on first- and second-tier core cities at a steady pace, and achieved sales of 293.63 billion yuan while acquiring land in a big way, achieving growth against the market.
Behind the brilliant performance is the business philosophy of China Merchants Shekou to pursue steady and high-quality development. China Merchants Shekou once said that "the top five are not only an indicator of scale, but also a multi-dimensional such as profit, quality, efficiency and transformation, operation, income and quality." "As the real estate industry enters a new stage of development, China Merchants Shekou maintains its strategic focus and adheres to the three strategies of regional focus, urban deep cultivation and comprehensive development, showing a stable background.
High-quality growth at scale stems from the company's market insight capabilities. Taking Shanghai as an example, as early as 2017, China Merchants Shekou launched the "Return to Shanghai" strategy, with an aggressive layout superimposed on years of high-quality cultivation, when Shanghai became one of the cities with the highest investment willingness of real estate enterprises, China Merchants Shekou achieved sales of more than 74 billion yuan in Shanghai in 2022, and has quietly firmly occupied the top spot in the local share. In the fourth round of land auctions in Shanghai held in December last year, China Merchants Shekou won the TOD plot of Panguang Road for 4.595 billion yuan, becoming the focus of the last land auction in Shanghai in 2023. China Merchants Shekou has also become the annual "double champion" in the Shanghai regional market: the number of land acquired in the open market ranks first among Shanghai real estate companies, and according to CRIC statistics, China Merchants Shekou ranks first with sales of 64.557 billion yuan in 2023.
Obviously, in 2023, when China's real estate market is still bottoming out, China Merchants Shekou has taken the lead in stepping out of the momentum of growth against the market. According to publicly disclosed sales data, from January to November 2023, China Merchants Shekou achieved a cumulative contracted sales area of 10.9433 million square meters, an increase of 14.17% year-on-year, and a cumulative contracted sales amount of 270.876 billion yuan, an increase of 8.35% year-on-year.
Strengthen refined management, and the development advantages are becoming more and more obvious
In the context of the restructuring of the real estate industry, measuring the development and success of enterprises is not a single indicator, but a multi-dimensional reference standard. China Merchants Shekou has become an industry benchmark in terms of sales scale, market value, land reserves, product quality, etc., and can swim against the current situation thanks to its good operating model and the advantages brought by internal refined management.
China Merchants Shekou adopts strategies such as "one city, one template", "one park, one policy", and "one business format, one template", and fine-grained business operations through refined operation strategies. In recent years, China Merchants Shekou has continuously iterated its management tools, improved the return level of each project through refined management, resolutely de-industrialized the sales side, and managed the management to the day and the project, so as to promote the company's comprehensive development.
In 2023, China Merchants Shekou will adhere to high-quality scale growth, continue to improve market insight capabilities, take multiple measures to promote inventory depletion, continue to strengthen project management capabilities through "one city, one template", and supervise the implementation of feasibility studies with digital empowerment. The company's investment research, production and research and customer research systems go hand in hand, and the development and business coordination system based on market and products has matured rapidly, realizing the efficient docking of the whole chain from site selection layout, project positioning, product customization to marketing decentralization, and the product strength has been continuously consolidated in iterative upgrading. During the reporting period, the company's new projects on the market have received positive feedback from the market, especially in the field of top luxury homes and quality improvement products, and the long-term accumulated word-of-mouth advantages have become more solid and stable.
New landmarks in many places have opened "hot": "business up" has driven consumption recovery
2023 is the year with the largest number of projects since China Merchants Shekou entered the commercial field, and has successively created differentiated new commercial samples in Shenzhen, Shanghai, Xiamen, Ningbo, Zhanjiang and other cities.
At the end of 2023, a number of commercial projects in China Merchants Shekou will open one after another, driving the recovery of local consumption and commerce.
On December 22, Zhanjiang Merchants Garden City opened, with a brand signing rate of 98%, the first store in the region exceeded 40%, the first city brand reached 25, and more than 32 brands won the first place in the performance of western Guangdong and Zhanjiang City. As a new commercial project in Zhanjiang CBD, Zhanjiang Merchants Garden City presents the unique form of the "Tanxing" cruise ship in terms of space creation, with a marine-themed space in the mall, which brings layers of exploration when it opens, and a 15,000-square-meter rooftop ocean garden, which complements this coastal city. Zhanjiang Merchants Garden City is a core component of the 1+N strategic cooperation between China Merchants Shekou and Zhanjiang City, and a representative work of comprehensive development in the area. The project aims to create a high-end and exquisite living field in Zhanjiang City, and unlocks a new lifestyle of urban roaming with multiple scenes.
On December 22, Chongqing Changjiahui Shopping Park was unveiled. The 1,500-square-meter super light and shadow field has been transformed into a city window, the urban landscape platform at the intersection of the two rivers lights up the city cover, and the environmental protection art fireworks wonderland created by Changjiahui and intangible cultural heritage artists was also opened at the same time.
Changjiahui is just the "tip of the iceberg" of China Merchants Shekou's ongoing asset renewal and upgrading plan, and in January 2024, Shenzhen Shekou Merchants Garden City has also been reborn, with major breakthroughs in architectural appearance, experience space and brand format.
On December 23, the gymnasium of Hefei Shaoquan Sports Center was opened. As a city-level sports-themed commercial complex built by China Merchants Shekou, Shaoquan Sports Center is positioned as a sports center cluster with a total volume of 120,000 square meters and all-age sports coverage, creating four characteristic spaces: a comprehensive gymnasium, an outdoor sports park, a sports trend theme block in the garden, and a sports supporting commercial mall in the garden, bringing a new commercial experience with the theme of sports and sports.
The Shaoquan Sports Center Gymnasium is an innovative practice of China Merchants Shekou on the cultural and sports track, exploring the development of the cultural and sports industry in the new era with the "X+ business" model. It not only provides high-quality sports facilities, but also integrates commercial elements to create a unique new format of cultural and sports integration. This innovative model not only meets the fitness needs of citizens, but also provides a place for leisure consumption, and will become a new benchmark for the development of urban cultural and sports industrial complexes.
"X+ Business" strategy to create a new landmark in the city: layout of 32 cities and 70+ projects
At present, China Merchants Shekou Commercial has been deployed in 32 cities across the country, holding more than 70 commercial projects with centralized management, with a total commercial construction area of 7 million square meters, and its two major commercial product lines of "Sea World" and "China Merchants Garden City" have given birth to many super landmarks, many of which are still being upgraded one after another.
From 2022 to 2023, China Merchants Shekou will deepen its holding business, taking into account the asset-light business, guided by the "X+ business" strategy, deeply cultivating the track, diversified integration, and constantly exploring differentiated competition strategies, and laying out a series of high-quality commercial projects across the country, with an annual growth rate of nearly 30%.
Following the excellent results achieved in the opening of urban benchmark projects such as Qinhu Xili Garden City, Chengdu Grand Rubik's Cube China Merchants Garden City, and Xiamen Sea World in 2022, China Merchants Shekou will continue to make efforts in 2023. During the National Day in 2023, Xiamen Haicang Merchants Garden City and Ningbo Yinzhou Garden will bloom in both flowers, and they will successfully "break the circle" on the first day of opening. Haicang Merchants Garden City achieved a total passenger flow of more than 210,000 person-times and sales of more than 8 million yuan throughout the day, while Yinzhou Garden City made a hot debut with a 100% investment attraction rate and a 100% opening rate.
On November 30, 2023, Shanghai Caolu Merchants Garden City opened, refreshing the opening results of newly opened shopping malls in Shanghai this year: 98% investment attraction rate, 95% opening rate, 200+ brands in the whole site, more than 50% of the first stores in the region, 100% of the main stores in the region, 90% of the catering brands in the region, and 80% of the retail supporting brands.
On December 15, China Merchants Shekou won the TOD plot of Panguang Road in Shanghai for 4.595 billion yuan, covering an area of about 130,000 square meters and a total above-ground construction area of about 330,000 square meters.
Behind the commercial projects operated by China Merchants Shekou are "explosive" and higher than the average opening rate of the industry, it is the differentiated strategic advantage of "X+ business" that has gradually become prominent, combined with the needs of the city (region), and according to local conditions, it has shaped characteristic businesses that are in line with the characteristics of the times, regional culture and project endowment, adapted to different business district environments and customer groups, created commercial landmarks with significant differentiation, and empowered the city to live a better life.
It is understood that in 2024, China Merchants Shekou will have a large number of key projects ready to go: including Zhuhai Doumen Merchants Garden City, Shanghai Sea World, Chengdu Tianfu Merchants Garden City, Changsha Meixi Lake Merchants Garden City, Changsha Guanshaling Merchants Garden City, Nanjing Xuanwu Merchants Garden City, Chengdu Jinniu Merchants Garden City, Shenzhen Prince Bay Merchants Garden City, etc., these projects are expected to connect a unique urban beautiful life circle with commercial power, and contribute to the promotion of consumption and business recovery.
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