CCRE achieved contracted sales of RMB 39.591 billion in the first half of the year, a year-on-year increase of 24.1%.

Editor’s note: This article is from: China Net Real Estate, edit: Shi Yanyi, authorized to reprint

On the evening of August 20, CCRE released the 2019 Interim Results Announcement. According to the announcement, CCRE achieved contracted sales of RMB 39.591 billion in the first half of the year, a year-on-year increase of 24.1%. Among them, the sales amount of heavy assets was RMB 27.66 billion, up 9.2% year-on-year; the sales amount of light assets was RMB 11.93 billion, an increase of 81.3%.

Let’s move higher, heavy capital bottleneck

“In the first half of CCRE’s development, the overall development has been steady and rising, and sales have exceeded 30 billion. For us, 30 billion is a key point.” Chairman Hu Jinsen said at the performance meeting that He was quite satisfied with the achievements of Jianye in the first half of the year.

Jianye can break through the 30 billion mark in the medium term, and the sales of light assets are indispensable. Although compared with the legend of Jianye, which has a ratio of light and heavy assets of 5:5, the gap between the scale of light assets and its development scale remains. Larger, but has gradually become another pillar of its sales.

In 2015, Jianye, which has embarked on the road of light assets, now has 131 light assets projects with a planned building area of ​​1991 million square meters. During the period, 22 new light assets project contracts were added. The estimated total construction area is 319. Ten thousand square meters, compared with the increase of 18 projects in the same period last year, the building area of ​​2 million square meters increased slightly.

It is worth mentioning that one of the 22 new light assets projects newly established by CCRE is located outside the province; the Central Plains Construction, which is responsible for the operation of light assets, has a total of 6 intent projects during the period, including the Central Plains. There are 3 intentional projects in small cultural forms, 3 residential projects – 6 projects are touched, and 1 project is finalized. It should also be “carefully out of Henan” that Hu Yusen said a month ago.

However, in terms of heavy assets, CCRE seems to have entered a bottleneck period. During the period, sales growth was only 10%, which is far from the growth rate of 47.5% and 82.4% in 2017 and 2018. After experiencing a year-on-year growth in scale, CCRE has set its sales target for heavy assets in 2019 at 63.5 billion yuan, an increase of 18.3% over 2018. In the case of a large drop in medium-term sales growth, CCRE will be in the second half of the year. It is inevitable to speed up the push.

According to the contract amount, the company’s heavy assets accounted for 7.7% of the market share in Henan Province at the end of the period, a slight decrease of 0.6 percentage points from last year. On the one hand, Jianye’s sales in Zhengzhou, Hebi, Jiaozuo, Xuchang, Luohe and Sanmenxia declined in the current period, and sales in Hebi and Sanmenxia fell.