On the evening of April 29, Greenland Holdings (600606. SH) has published its 2023 annual report and 2024 first quarter report.
In 2023, a series of policies and measures have been introduced from the central to the local government to focus on stabilizing growth and development, but real estate, infrastructure and other industries are still facing great downward pressure. In this context, Greenland Holdings unswervingly boosted morale and morale, worked together to overcome difficulties, achieved overall stability, and achieved the "four haves" work achievements of team strength, strong tackling, orderly operation and good prospects, and accumulated potential energy for stability and improvement.
According to Greenland's 2023 annual report, the company has made every effort to stabilize operations, prevent and control risks, and reduce costs, so that the company's operation is stable and orderly. The operation maintained a stable overall situation, with an operating income of 360.2 billion yuan, total assets of 1,193.9 billion yuan and net assets of 145.2 billion yuan, the real estate industry remained stable with an operating income of 184.5 billion yuan and a gross profit margin of 16 percent, and the infrastructure industry maintained a large volume with an operating income of 145.7 billion yuan and a gross profit margin of 5.17 percent. At the same time, costs continued to decline, with sales expenses decreasing by RMB1.3 billion, or 20%, and administrative expenses decreasing by RMB1.7 billion, or 15%, year-on-year. In addition, Greenland Holdings maintains the bottom line of liquidity safety. The asset-liability ratio continued to decline steadily, with the balance of interest-bearing liabilities falling to 214.8 billion yuan at the end of the year, and a total of 173.4 billion yuan since the introduction of the "three red lines" regulatory policy. Pushed all commercial banks to lower their lending rates, and the overall average financing cost remained low at 5.59%. In terms of core industries, there is still a lot of room for development. At the end of the year, the contract liabilities and advance receipts (mainly the pre-sale amount of the real estate industry) were 254.7 billion yuan. The total land reserve of the real estate industry at the end of the period was 130 million square meters, and the total amount of orders in hand at the end of the period of the infrastructure industry was 679.9 billion yuan, laying the foundation for the future performance to remain stable.
The core industry has promoted the implementation of a number of key tasks
The real estate industry focused on key projects, and achieved positive results in decentralization, delivery and financing. The delivery volume has been leading the industry for many years. The total delivery area of 29.27 million square meters was completed throughout the year, and about 800,000 sets of properties totaling 86.65 million square meters were delivered in the past three years, leading the industry in terms of delivery volume. A large number of residential projects across the country have achieved high-quality delivery, and at the same time, a number of major functional projects have completed the construction nodes on schedule. Actively promote the decentralization of sales. The total sales amount of the year was 111.5 billion yuan, and the collection was 106.2 billion yuan, with a collection rate of 95%. Comprehensively promote online marketing, parking space sales, stock renovation and decentralization, bulk asset decentralization, etc. Pay close attention to cash flow management. Promote the collection of funds, make every effort to promote financing breakthroughs, and achieve positive results. For example, the Postal Savings Bank (601658. SH), Bank of Xi'an (600928. SH), Qinnong Bank, Jinshang Bank (02558. HK) and other financing totaling nearly 4 billion yuan has been landed. In the first quarter of 2024, a total of 64 projects were selected into the "white list" of real estate project financing in various places, with a proposed financing amount of 22.6 billion yuan, and the first batch of 8 approved projects with a total financing amount of 2.4 billion yuan, and the withdrawal was realized one after another. Actively revitalize the stock and enhance the value. Efforts have been made to improve the product strength, operation level and project value of a number of existing projects.
The infrastructure industry stabilized production and operation, and the business structure was further optimized. Greenland Holdings stabilized production and output value, and paid close attention to business performance. Accelerate the advancement of major projects, accelerate the transformation of newly signed projects, and make every effort to stabilize the construction output value. Stabilize the scale of new signings and optimize the business structure. The cumulative amount of new contracts signed throughout the year was 287.4 billion yuan, of which 107.3 billion yuan was newly signed infrastructure projects, accounting for 37%, an increase of 10 percentage points year-on-year. A number of major domestic projects have been successfully completed, and a number of overseas "Belt and Road" projects have been successfully delivered. Capture the collection of funds, stabilize financing, and strengthen liquidity management. Do a good job in the collection of accounts receivable, strive for the support of the local government, and stabilize the necessary financing scale. We should focus on management and strengthen science and technology, and strive to build a competitive advantage. Throughout the year, it has won 26 highest awards in the industry, such as "Luban Prize", "China Quality Engineering Gold Award" and "Li Chun Award".
Relying on existing resources, actively open up new tracks
Integrate resources to create a new agent construction platform. In the first quarter of 2024, Greenland Smart (Shanghai) Construction Service Co., Ltd., an integrated service platform for urban construction and operation under the company's umbrella, was officially unveiled, and ranked at the top of the list of third-party authorities such as CRIC with a newly signed construction area of 850,000 square meters in the current quarter. Relying on the advantages of the two main businesses of real estate and infrastructure, and integrating resources in the fields of cultural tourism, commerce, and hotels, the platform empowers the upgrading of the agency construction business and cultivates new business growth points with an asset-light business model.
At the same time, enhance the energy level of the development of the energy industry. In 2023, the annual coal procurement volume will increase to 15 million tons, and in the first quarter of 2024, about 15 million tons of long-term agreements and spot contracts with upstream coal mining enterprises will be completed, and 11 million tons of sales contracts will be completed. Establish a greenfield energy shipping company, strengthen cooperation with important ports, and improve infrastructure supporting capacity. Amplify the effect of CIIE and actively develop the Silk Road e-commerce business. In 2023, more than 200 brands from 30 countries will be organized to participate in the 6th CIIE. In the first quarter of 2024, the company released Shanghai's first enterprise "Silk Road E-commerce" development plan, and cooperated with Mindray Medical, Kazakhstan IP Group, South Korea Dayou Group and other enterprises to achieve the implementation of the first batch of business results.
Other industries promote business increment and quality improvement
In terms of the financial industry, Greenland Holdings focused on key projects of industrial capitalization and promoted transformation and upgrading. Focusing on digital technology, business management, gardening, wine management, property and other businesses, promote capital operation. In the hotel and tourism industry, we made every effort to improve the operating performance of hotel, tourism, convention and exhibition businesses, and the performance of some directly operated hotels increased significantly compared with before the epidemic, and a total of 112 exhibition activities were held in its convention and exhibition venues during the year. In the automobile industry, the business structure was further adjusted and new energy vehicle sales were added.
In 2024, the external environment is generally improving, and positive and favorable factors are increasing. The concentrated performance is: the party and the country unswervingly promote the economic rebound, which is conducive to stabilizing market confidence, a series of relatively loose policies will continue to increase, and the gradual improvement of the financing environment of the real estate industry is the general trend. At the same time, however, the internal and external situation is still grim and complex, and many difficult factors still exist.
In the new year, Greenland will adhere to the principle of seeking progress while maintaining stability, promoting stability through progress, and revitalizing the stock, increasing flow, making good use of variables, improving quality, and stabilizing the total amount with the positive and enterprising spirit of "second entrepreneurship", so as to continue to deepen transformation and upgrading, and achieve high-quality development. Revitalize stocks. Through innovative products, innovative operations, and innovative business models, we will promote the revitalization of stock and support the redevelopment of enterprises. Increase traffic. We will promote the increase of cash collection in real estate, infrastructure and other industries, promote the disposal of existing assets, increase the collection of rents for operating properties, and seize the opportunity of policy easing to achieve incremental financing. Make good use of variables. Through differentiated incentives, we will continue to boost team morale, promote team remodeling, and make good use of talents, which is the biggest variable. Improve quality. Highlight the requirements of high-quality development, promote transformation and upgrading, improve professional capabilities, improve management levels, and improve the quality and efficiency of operations. Stabilize the total amount. Enhance the old track, open up new tracks, promote the stable operation and stability of the two main businesses of real estate and infrastructure, and at the same time develop new businesses with strong synergy and driving force, form new momentum, and promote stable development.