In the era of great changes, the logic of the industry has been drastically reconstructed, and challenges and opportunities coexist.
"In the past few years, the real estate industry has been in a deep downturn, and we are not immune to it, facing unprecedented operating pressures and challenges. However, in the long run, regulation and control is conducive to the healthy and stable development of the domestic real estate industry", at the recently held "Kaisa Group 25th Anniversary and New Development Model Conference", the board of directors of the group called on the whole group to build consensus, work together, further enhance development confidence, strengthen the belief in victory, accelerate the construction of a sustainable new development model, and reshape the new pattern of enterprise operation.
Kaisa's confidence in overcoming difficulties comes from 25 years of profound development and is rooted in the unremitting strength of 25 years of growing with the city and resonating with the country's development. Twenty-five years ago, Kaisa responded to the call of the country's policy of reform and opening up and the development of market economy, starting from Shenzhen and going to the whole country. Starting from urban renewal, the development layout of more than 20 industrial fields has drawn a majestic picture of struggle. Along the way, I am grateful for the opportunities given by the times and the country.
25 years of deep cultivation of urban public services to create a characteristic development path
In the wave of vigorous development of China's urbanization, Kaisa grasps market opportunities with keen business intuition, always adheres to the purpose of creating value for customers, cities and society, and has spent 25 years to develop a characteristic path of "urban public service provider".
Over the past 25 years, Kaisa has renovated its urban space and become the "king of old reform" in the industry. Kaisa is the first enterprise in China to enter the field of urban renewal, and has been awarded the first place in China's "Excellent Urban Renewal Enterprise" for many consecutive years. With the accumulation of more than 40 successful cases and the urban transformation of more than 16 million square meters, Kaisa has formed a mature business model, constantly innovated industry standards, explored and promoted the industry to specialization and standardization, and realized the butterfly change of urban functions through planning guidance, industrial empowerment, and supporting construction.
Over the past 25 years, Kaisa has adhered to the original intention of quality and created a happy habitat. In terms of residential development, from a single product to a full range of categories, from Shenzhen to more than 50 cities across the country, the cumulative delivery area is nearly 80 million square meters, building happy homes for nearly 500,000 owners. With the long-term adherence to customer-centricity and quality as the lifeline, Kaisa has won the trust of customers and the praise of the market.
Over the past 25 years, Kaisa has built an industrial synergy pattern and deepened urban public services. Kaisa City has deeply cultivated the strategic upgrade to the idea of urban operation, thoroughly implemented the concept of common development with the city, completed the comprehensive layout of 20 industrial sectors such as commerce, hotel, property, culture and sports, shipping, and health, formed a development model with Kaisa characteristics, and created many market brands such as Kaisa Culture and Sports, Kaisa Marriott Hotel, Jinshawan International Park, Shenzhen Shipping, etc.
The board of directors of Kaisa Group said that the spirit of the iron army that dares to try and never give up is the soul of our development, the professional and loyal talent team with both ability and political integrity is our most valuable resource, the quality of the lifeline and customer first are the foundation of our development, and the innovation and initiative are the driving forces of our development. These experiences are not only the key to our past achievements, but also an important magic weapon for us to survive the cold winter of the industry.
The revitalization of high-quality assets in core cities has been accelerated, and the development fundamentals are solid and stable
"The deep downturn in the real estate market has also made it difficult for Kaisa to move forward, but the Group's operation has gradually recovered and maintained the fundamentals of future development, and these high-quality assets are the confidence for us to tide over the difficulties," said the board of directors of Kaisa Group at the "25th Anniversary of the Group's Establishment and New Development Model Conference".
Although the group's operation is facing great pressure, in the medium and long term, Kaisa has a land reserve of 23.83 million square meters in the first- and second-tier core cities, with a saleable value of about 400 billion yuan, and more than 100 urban renewal projects have not yet been included in the land reserve, covering an area of about 38 million square meters.
Kaisa has made great efforts to be at the forefront of the industry on the road of asset revitalization and risk resolution. Kaisa Jiayuan, the first phase of the Dongshan Community Renovation Project in Futian District, Shenzhen, has successfully completed the centralized delivery of the relocated houses, which is of great significance for optimizing the urban environment and improving the quality of the city in Futian Central District;
Kaisa's Dongjiaotou project, one of Kaisa's core assets in Shenzhen, has made significant progress following the signing of a package debt agreement between Kaisa and CITIC, and a land swap and land allocation agreement was reached in May 2023, under which the two parcels of land will be allocated to Shenzhen Shipping and Duli Group respectively. The rights and interests of this huge granary project will eventually remain owned by Kaisa after China CITIC Bank and CITIC Urban Development Bank recover the corresponding revenues, which will bring rich value to the company's development in the future.
Adhere to the original intention of quality service and accelerate the construction of a new development model
The board of directors of Kaisa Group said that the current task of "ensuring delivery, payment and stability" is still arduous, and in the future, it will adhere to the profit-centered, cash flow management as the center, risk management and control as the center, and rely on the existing business segments to explore a feasible new development model to achieve the sustainable development of the group.
Kaisa commercial, hotel, culture, sports and technology and other sectors have become mature market brands, this year will dig deep into the profit growth point, through the investment promotion, service consulting and project management system upgrade, to accelerate the formation of the asset-light development model;
Improving cash flow, revitalizing projects and stabilizing operations are the top priorities at present. Kaisa will adhere to the policy of refined operation and project classification, break through resource barriers, make every effort to break through sales difficulties, stabilize the business market, and gradually realize the positive cycle of cash flow of operation, delivery and sales synergy, seize the opportunity of policy assistance, revitalize and maintain major projects, explore innovative debt models, accelerate the process of overseas debt restructuring, and pass through the cold winter of the industry.
Looking to the future, only enterprises that provide customers with good houses and good services can survive. Kaisa will focus on improving product and service capabilities, strengthening the refined management of projects, improving quality and quality from design, construction, gardening, decoration, maintenance, etc., strengthening the core competitiveness of products, pursuing a closed loop of products and operations, promoting the digital and intelligent operation capabilities of the property sector, enriching business scenarios, improving service quality, empowering operations, and creating value for customers.
Kaisa currently has more than 10 projects on the "white list" to supplement the funds required for normal construction and alleviate the current liquidity crunch. Kaisa Group will make every effort to promote the application of the "white list" of projects, and all regional and project management teams will seize the reporting window period, report all projects under construction, and try to strengthen communication and negotiate with relevant financial institutions to strive to implement the project financing increment as soon as possible.
"What seems like an insurmountable obstacle today will eventually turn into a smooth road to the other side. In the downward cycle of the industry, we cannot change the environment, we can only change ourselves. We can't complain about others, we can only keep up with the times. As long as we have a firm belief in winning and maintain high morale, we will be able to embark on a new path of sustainable development again, create value for society, employees and shareholders, and live up to the opportunities given by the country," said the Board of Directors of Kaisa Group.
In the past 25 years, Kaisa will usher in a new pattern of sustainable development.
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