Shenzhen New Nanshan Holdings (Group) Co., Ltd. (hereinafter referred to as "Nanshan Holdings" or "the Company") announced on the evening of April 18 that the company held its 2023 annual results briefing on the same day. At the meeting, Nanshan Holdings revealed that at present, the company's monetary fund balance can meet the daily production and operation and short-term loan repayment arrangements, and the company has a balance in the overall credit line of financial institutions, and the project construction funds have also been arranged in advance, and the company's overall debt repayment risk is relatively small.
Screenshot of Nanshan Holdings' announcement
The following are the main contents of the investor relations activities:
1. How was the operation of Baowan Logistics last year?
A: Baowan Logistics will achieve operating income of 1836 million yuan in 2023, a year-on-year increase of 13.1%, mainly due to the stable operation of the original park and the use of the new park with good operation, and the steady increase in rental income. The average occupancy rate of the operating park was 89.0%, an increase of 1.8 percentage points year-on-year. Baowan Logistics has dug deep into the incremental demand of emerging fields such as cross-border e-commerce, new energy, and biomedicine, and has achieved remarkable results in promoting the investment promotion of customers in new industries.
2. What is the total ranking of Baowan Logistics in the country, and can the high-standard warehouse managed this year exceed 10 million square meters?
Answer: Baowan Logistics' market share is currently at the forefront of the second echelon. As of the end of December 2023, Baowan Logistics owns or manages 82 smart logistics parks across the country, with more than 9.6 million square meters of warehousing area under construction (including projects to be built) under construction.
3. China's real estate market is facing major changes and has entered the era of stock market, whether the company should maintain the scale of investment and development in recent years, and how to balance the balanced development of real estate industry, warehousing and logistics, industrial parks and new energy business under the new situation.
Answer: Nanshan Holdings has formed a development layout with modern high-end warehousing and logistics as its strategic main business, real estate development as its supporting main business, and comprehensive development of industry and city as its nurturing main business. In recent years, the company has adhered to the main tone of seeking progress while maintaining stability, closely focusing on "real estate development and operation management capabilities", actively promoting resource optimization and reorganization, and continuously optimizing its business and profit structure. In the future, the company will further give full play to the advantages of a diversified business structure with stable profitability and cycle flexibility, accelerate the pace of transformation and upgrading, enhance its core competitiveness, and pursue the long-term and sustainable development of the company's value.
4. Your company's real estate project "Qianwan Mingdi" in Huacao Town, Minhang District, Shanghai, the balcony exterior wall is not insulated, the balcony sliding door is used as the exterior wall, and the ultra-low energy consumption of three-glass and two-cavity glass is designed on the balcony door, not on the balcony exterior wall, so why do you want to seal the balcony?
Answer: The company attaches great importance to the quality of residential products and the maintenance of the rights and interests of owners, and the situation you reflect will be fed back to the relevant departments of the company for verification and processing. If you have feedback on the quality of the project site or indoors, you can also call the service hotline 400-669-6606 to contact us. The company will continue to investigate and improve the project, refine management, and further improve the quality of customer service.
5. In the context of deepening the reform of state-owned enterprises, what are the requirements of the company's controlling shareholders for the company's assessment?
Answer: The company is one of the important holding subsidiaries of the controlling shareholder, and is currently the only listed company under the controlling shareholder. In order to promote the coordinated development of both parties, the controlling shareholder also focuses on the assessment of the company's operation quality, transformation and upgrading, new business development and capital operation on the basis of the main assessment indicators such as revenue, profit and cash flow of the state-owned assets system, so as to promote the company's high-quality development in many aspects.
6. The current real estate market is facing many challenges, how do you view the development of the market outlook? Recently, the government has introduced a series of policies to stabilize the real estate market, what impact do you think these policies will have on the recovery of the company's performance and the long-term development of the real estate market?
Answer: Real estate is the pillar industry of the national economy, and the Standing Committee of the People's Republic of China will again propose to optimize the real estate policy to promote the steady and healthy development of the real estate market; with the implementation of a series of optimization policies such as the reduction of the down payment ratio, the adjustment of the interest rate of the stock of personal housing loans, and the liberalization of purchase restrictions in some cities, the housing sales market will slowly build a bottom; however, the effect of the rebound in housing demand still needs to rely on the follow-up policies, the improvement of the economic situation, and the improvement of income and asset price expectations. Based on the actual situation of its own operation and long-term development goals, the company will further optimize the urban layout, resist the risks of the industry cycle and achieve sustainable, stable and high-quality business development by strengthening financial risk control, prudent investment strategy, and improving the quality and efficiency of operation.
7. According to the 2023 annual performance forecast, the net profit attributable to shareholders of listed companies decreased by 73.25%-78.54% compared with the same period last year, which has attracted widespread attention from the market. What are the main reasons for this decline?
Answer: The company's net profit attributable to shareholders of listed companies decreased compared with the same period last year, mainly due to the impairment test, some of the company's real estate projects have signs of impairment, and the provision for impairment increased year-on-year;
8. As mentioned in the report, some of the company's real estate projects have signs of impairment, and it is expected that the provision for impairment will increase year-on-year. Can you specify which items have been impaired, as well as the magnitude of the impairment and the specific impact on net profit?
Answer: The inventory price decline provision of Nanshan Holdings' real estate development business mainly involves some projects in Wuhan, Dongguan and Dujiangyan areas. In 2023, the national real estate market is still in the stage of bottom adjustment, and based on the sales and market performance of existing projects, the company's real estate business will conduct inventory impairment tests according to the method of lower net realizable value and cost. In 2023, the company made a provision for the impairment of various assets of 593 million yuan, reducing the net profit attributable to shareholders of listed companies by 588 million yuan in 2023.
9. How do you view China's ultra-low energy building project market? Can you share the reasons for choosing Shanghai as the first stop of Nanshan's pilot ultra-low energy building high-end project? Will the group continue to vigorously develop this type of product project in the future? For Shanghai's first ultra-low energy building high-end benchmark project, does your group have relevant supporting resources and quality assurance work?
Answer: ultra-low energy consumption is the Shanghai Municipal Government to improve the health and comfort level of buildings and energy and resource utilization efficiency to promote energy conservation and emission reduction related management regulations, the company's Shanghai Qianwan Shiman project declared ultra-low energy consumption buildings to meet the "Shanghai Ultra-low Energy Building Technical Guidelines" and Shanghai relevant technical requirements, the site is also implemented in accordance with the relevant configuration standards of ultra-low energy buildings. With the advancement of the relevant planning and implementation plans for the national new urbanization construction, the company will strive to grasp the development trend of green and low-carbon in the industry, strengthen the R&D investment and practice of green buildings, ultra-low energy buildings and other technologies, and achieve competitive advantages for the company in the future industry market competition through the integration of internal and external resources.
10. Are the independent directors diligent and independent in the matter of the company's capital increase in the Haichengjin project owned by the major shareholder, and whether they have concerns and objections to the major related party transaction? The project is a major related party transaction involving billions of yuan of assets, and whether the related company treats small and medium-sized shareholders equally in related party transactions, please explain, thank you.
Answer: Dear investors, in view of the company's capital increase to Haichengjin and the acquisition of its equity, after reviewing the relevant information, the Chiwan subway station urban complex project held by Haichengjin, based on independent and objective audit evaluation, is fairly priced, and the project development prospects are good from the time of the transaction, which is expected to have a positive impact on the company's financial condition and operating results. In recent years, the real estate industry has undergone significant and profound changes, and as an independent director, he has continued to maintain a high degree of attention to the project, and there is no harm to the interests of small and medium-sized shareholders.
11. What is the value of your company's real estate inventory? Is there a new land acquisition plan this year? How many billions is the sales plan this year? Is there an increase compared with 2023? Thank you!
A: In the past two years, the real estate industry has undergone a long and large adjustment, and the industry pattern has been constantly changing. In the face of the new situation, the company hopes to maintain the steady development of its business, continue to strengthen its investment capabilities, adopt a rigorous land reserve policy, focus on high-quality blocks in core cities, and seek high-certainty projects to ensure the sustainable development of its real estate development business and improve its efficiency.
12、 Shenzhen real estate information platform publicity, the company's Chiwan Haichengjin project residential part, from October 2023 after the start of pre-sale in half a year, only 4-5 houses were sold, there are more than 400 houses for sale, according to this progress estimate, the company to this project will take a long time, please ask the company what practical measures to improve the project removal rate, improve the company's cash flow situation, according to the annual report, the company's total debt is 55 billion, and the company's market value is only more than 6 billion, that is, as the saying goes, even if the company is sold, it can't pay off its own debts, what measures does the management have to resolve such high debts?
Answer: At present, the real estate industry is still in the process of bottoming out for adjustment and transformation, and the company continues to pay attention to market dynamics and adopt active marketing strategies to accelerate the decentralization of projects. As of the end of 2023, the company's total assets were 72.808 billion yuan, and the net assets attributable to shareholders of listed companies were 10.269 billion yuan. The company has always attached great importance to operating performance and cash flow, and optimized its financial structure by strengthening financial management, internal control, risk management and other aspects of control. At present, the balance of the company's monetary funds can meet the daily production and operation and short-term loan repayment arrangements, and the company's overall credit clearance with financial institutions has been retained, and the project construction funds have also been arranged in advance, and the company's overall debt repayment risk is relatively small.
13. The company's stock price is seriously broken, will the major shareholders consider buyback? Will the executives here increase their holdings to boost market confidence?
Answer: The company's stock price is affected by many factors such as macroeconomy, policy, industry, investor sentiment and the company's operating conditions. The company will continue to do a good job in various operation and management, and at the same time will further strengthen investor communication and management, actively convey the company's investment value, and improve shareholder returns. The company will continue to pay attention to the market situation, and if there is a follow-up increase or repurchase plan, the company will fulfill its information disclosure obligations in a timely manner in accordance with laws and regulations.
14. Regarding the market value management of central enterprises and state-owned enterprises issued by the State Council, the company's stock price has been depressed for a long time, will there be any measures in the later stage?
Answer: The company's stock price is affected by many factors such as macroeconomy, policy, industry, investor sentiment and the company's operating conditions. Good market value performance is the long-term common aspiration of the company and all shareholders, and the company will continue to do a good job in various operation and management, improve the corporate governance mechanism, and steadily promote the sustainable growth of intrinsic value. At the same time, the company will continue to strengthen communication with the market, do a good job in value communication, and improve the market's understanding and recognition of the company's value.
15. What is the company's performance target for this year?
Answer: In the face of the in-depth adjustment and development status of the industry, the company closely focuses on the annual operation and management plan, continues to deepen the main business, the company's management and all employees will strive to overcome challenges, actively promote cost reduction and cost control, continuously improve management efficiency, strive to maintain a steady and progressive development trend, coordinate and accelerate the transformation and upgrading of traditional industries and the layout of strategic emerging industries, and show greater achievements in promoting the high-quality development of business.
16. China's real estate market is facing major changes in the environment, the company's supporting main real estate business is facing an unprecedented crisis, the stock price has plummeted, burdened with 55 billion yuan of debt, and the industry prospect is unclear.
Answer: The real estate market has entered the era of stock, and the company's real estate development business has always adhered to steady operation, put risk prevention in the first place, emphasized the balanced development of "quality, efficiency and scale", and will strengthen the classified management of inventory resources, flexibly adjust sales strategies, and promote sales collection. In the long-term practice of the company's real estate development business, the company has always maintained strategic focus, resisted industry cycle risks and achieved sustained, stable and qualitative growth by strengthening financial risk control, prudent investment strategy, improving operation quality and efficiency, etc., and at the same time consolidating the foundation for long-term sustainable development of the business, actively exploring and developing diversified transformation businesses and enhancing the ability to continue operations under the premise of ensuring cash flow security.
17. The company seems to have encountered obstacles in the declaration of public REITs, and the company declared at the same time that the Huaxia Shen International Warehousing and Logistics has been registered and effective on April 2, and the company has not given feedback on the inquiry of the Shenzhen Stock Exchange for a long time, does this mean that the company's work is not rigorous, and there are signs of getting by?
Answer: The application and issuance of Baowan logistics infrastructure public REITs is proceeding as planned, and the company will fulfill its information disclosure obligations in a timely manner in accordance with relevant regulations, please pay attention to the company's follow-up announcements. The company adheres to the concept of long-term development, and is committed to continuously improving the company's intrinsic value through steady operation, and continuing to create long-term investment value for shareholders.
18. The real estate market has been in a downturn for a long time, and the company's inventory is huge, do you consider slowly reducing the real estate business in the later stage? The gross profit margin of the real estate business is low, and the capital liability is high, which can easily lead to problems in the company's operation in the downward cycle.
A: Thank you for your suggestion to the company. The company's strategic transformation is a systematic project, which cannot be achieved overnight, and the company will strive to balance short, medium and long-term interests, adjust the structure in the development, and promote the company's high-quality development and industrial deepening transformation in an orderly manner.
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Review: Sun Shijian