93 listed real estate companies announced their results or performance forecasts for the first half of 2019.
Editor’s note: This article is from Economic Observer Online , Author: Tin National treasure, authorized to reprint
In late August, listed companies began to release their first-half results. According to the incomplete statistics of the same flower, as of 10:00 am on August 22, 93 listed A-shares and H-shares have announced the first half of 2019. Performance or performance forecast, the net profit of 36 real estate companies in the period fell.
Among the housing companies whose net profit fell year-on-year, the most serious decline was the Hong Kong-owned Swire Properties, whose net profit decreased from 20.205 billion yuan in the same period in 2018 to 8.973 billion yuan in the first half of this year.
In Hong Kong-listed housing companies, except for Swire Properties, the net profit of Xuhui Holdings, Wharf, South China City, Landsea Green, Fantasia, Zhongpan Holdings and Lippo declined at different levels.
In the A-share listed real estate enterprises, the net profit in the first half of the year was mostly small and medium-sized housing enterprises, such as CCCC Real Estate, Zhongzhou Holdings, Shenzhen Zhenye, Wantong Real Estate, Tianjin Songjiang, Hefei Urban Construction, Fantasia and other housing enterprises; Housing companies such as AVIC Shanda have gradually withdrawn from real estate development and transformation.
In addition, China Evergrande, Tomson Group, Lemmon International and Zall Zhilian also issued an early warning announcement on the decline in net profit, in which Evergrande’s net profit fell by 49% in the first half of the year.
China Evergrande and Xuhui Holdings are the two 100 billion-level real estate enterprises whose net profit declined in the first half of the year. For the reason of the decline in net profit, Evergrande explained that due to the slow transition in the first half of the year, the second half of the year will accelerate with the carry-over. The net profit for the whole year is expected to grow at the same time; Xuhui’s explanation is due to the increase in minority shareholders’ equity.
Compared with the decline in the net profit of a small number of real estate enterprises, most of the profits of real estate enterprises in the first half of 2019 increased significantly. Among them, Sunac China increased by more than 60% year-on-year, with a net increase of nearly 4 billion yuan; the added value of China Resources Land, Poly, Vanke, Huaxia Happiness, Jinke, Agile and other real estate enterprises also exceeded 1 billion yuan.
From the financial reports of some real estate enterprises, it is not difficult to find that the decline in net profit of real estate enterprises in the first half of the year has a strong regionality. Compared with the Yangtze River Delta and the Pearl River Delta, the profits of real estate projects in the Bohai Rim region are generally low.
In the case of Vanke’s northern region and Shanghai region, Shanghai’s regional sales accounted for 35.93% in the first half of 2019, and the northern region’s sales accounted for 21.94%. However, in terms of net profit performance, the gap between the two regions was further widened. In the first half of the year, Shanghai’s regional net profit accounted for 45.41%, while the northern region’s net profit accounted for only 9.45%.
According to Vanke’s internal statement, the reason why the northern region has lower net profit is that the construction period is extended due to environmental protection and other reasons.