Meter. This also brought Yuzhou’s end soil reserves to 19.18 million square meters, with a total saleable value of more than 340 billion yuan, of which 80.1% were located in first- and second-tier cities with an average land cost of 5580 yuan / square meter.
However, the cost of land acquisition in Yuzhou has increased significantly. In mid-2019, the average floor price of new projects in Yuzhou reached 11,106 yuan / square meter, compared with 5,297 yuan / square meter in the same period last year. This caused Yuzhou to spend 14.13 billion yuan in land acquisition in the first half of this year, which is 2.6 times the cost of 5.52 billion yuan in land acquisition in the same period last year, and spent 35% of Yuzhou’s 40 billion yuan land acquisition reserve.
On the other hand, in order to enhance the liquidity of funds, Yuzhou has carried out a number of debt financing since 2019.
January-March, issue 5 billion yuan of supply chain financial assets to support special plans, with an annual interest rate of 8.5%, three issuance of US $ 500 million of senior notes with interest rates of 8.625%, 8.5%, and 8.5 %;
· In April, five-year corporate bonds with a coupon rate of 6.5% and two-billion-yuan corporate bonds of 7.5% and five-year corporate bonds with a coupon rate of 7.5% were issued;
· At the beginning of July, an additional 400 million US dollars of notes were issued, which were combined into a single issue with a 250 million US dollar 7-year coupon rate of 6% issued in October 2016;
· At the end of October, it is planned to issue senior notes with a maturity amount of USD 500 million in 2024, with an interest rate of 8.375%; · At the end of November, issue of senior notes with a maturity amount of USD 500 million in 2025, with an interest rate of 8.3%.
A large amount of financing has indeed guaranteed Yuzhou’s cash in hand. As of mid-2019, Yuzhou holds 35.72 billion yuan in cash, which is relatively abundant. However, Yuzhou ’s weighted average financing cost has increased to 7.47% in the middle of the year, compared to 6.52% in the same period last year.
In the latest October data released by Yuzhou, Yuzhou has achieved cumulative sales of 58.07 billion yuan, a year-on-year growth rate of 44.6%, and only 8.9 billion yuan remains from the 67 billion yuan target. It doesn’t seem easy to strike a balance between scale, profit and risk.