The ups and downs of CCCC Real Estate.
Editor’s note: This article is from WeChat public account Hexun Property (ID: hexunhouse), Author Chang Dandan.
In the last trading day of August, CCCC Real Estate fell to a closing price of 6.25 yuan with a closing price of 6.47 yuan, a drop of 3.4%, the biggest drop in the trading day of the week.
In the evening of August 29 of the previous day, CCCC Real Estate released its semi-annual results for 2019. According to the report, during the period, CCCC’s real estate revenue dropped by 62.2% year-on-year to 1.75 billion yuan, with a total profit of 296 million yuan, down 51.63% year-on-year; net profit attributable to listed companies was 93 million yuan, down 69.31% year-on-year. Shares’ earnings fell 83.17% year-on-year to 0.17 yuan, and key financial data collectively fell.
The market will not forget that in 2017, CCCC Real Estate, which had sales of over 10 billion yuan, once shouted out the rhetoric of “the top three in the central enterprises”. At that time, the top one was China Shipping and 300 billion yuan with sales of 200 billion yuan. Yuan’s Poly, now, China Shipping and Poly achieved breakthroughs, respectively, into the 300 billion, 400 billion sales camp, and China Real Estate continued to linger on the level of 10 billion, lingering. The semi-annual report showed that during the period, the company’s full-scale contracted sales amount was 9.324 billion yuan, the sales return amount was 7.12 billion yuan, the equity sales amount was 5.719 billion yuan, and the equity sales return was 4.816 billion yuan.
Obviously, under the stagnation of the industry, the unbalanced financial management ability and the slow development and sales rhythm are all difficult to get rid of. According to the relevant person in charge of the secret office, the company’s land expansion is carried out at a normal pace.
Source: Corporate Announcement
Profit “Roller Coaster”
The semi-annual report shows that during the period, CCCC Real Estate realized a total profit of approximately 296 million yuan, achieving a net profit attributable to shareholders of the listed company of approximately 92.926 million yuan, down 51.63% and 69.31% respectively. The performance forecast explained that on the one hand, it was affected by the housing cycle, which led to the obvious carry-over income in the first half of the year.On the other hand, it is a retrospective adjustment after the acquisition of joint home ownership at the end of 2018, confirming that the large investment income is 236 million yuan, and there is no similar business during the reporting period.
In the first half of this year, China Communications has a total of 50 projects, and only 4 new projects were started during the period. Most of the projects are under construction or completed projects or in the early stage of development. Overall, the revenue of CCCC in the first half of the year mainly came from Central China, East China, Southwest China, South China and North China. Among them, in addition to the growth of revenue in the Southwest, the revenues of the other four regions have declined to varying degrees. The revenue in East China has fallen by more than 95%. Real estate sales are the main business of CCCC Real Estate. The decline was 63.1%, directly affecting its total revenue in the first half of the year.
Because of the scale of the project, the individual project delivery time node has a great impact on the company’s performance. For example, Suzhou Zhongjiao·Jingting Project has a carryover income of 2.02 billion in the same period of 2018, a net profit of 480 million, and the first half of this year. It was only 55.918 million yuan and the net profit was 37.117 million yuan.
Specific dismantling of the net profit of 92.926 million yuan, of which, the first quarter contributed 90,825,700 yuan, turning losses into profit, while the entire second quarter net profit contributed nearly 2 million, that is, April-June, The average monthly profit of Zhongguan Real Estate, a central enterprise with 50 projects in the country, is only about 700,000.
If you carefully sort out the performance of China Real Estate in recent years, it is not uncommon to find such a thrilling roller coaster-like plot. For example, the net profit for the reporting period since 2018 is -2.77 million, 544 million, -74,600, 514 million, 90.83 million, and 2.1 million.
In the background of bidding farewell to the “sports and money to make money” to the heavy-weight and more “golden”, CCCC Real Estate’s net profit of 92.926 million is particularly dazzling. Take the Greentown, which belongs to the China Communications System, as an example. Although the revenue in the first half of 2019 was double-failed, it also created a revenue of 18.658 billion yuan and a net profit of 2.58 billion yuan. Compared with enterprises of the same size, the profit of CCCC Real Estate The level is also far from the same. For example, in the first half of this year, the net profit of the company’s sales revenue of tens of billions of shares was steadily rising by 7.4% to HK$2,655 million.
Unbalanced profit and equity
Source: Corporate Announcements
It is also worth noting that the deduction is not attributed to the company’s shares.