In order to stabilize investor confidence, housing companies are still ahead.
Editor’s note: This article comes from Daily Economic News , Editor: Wei Wenyi, reproduced with permission
The nation ’s first voluntary announcement of the impact of the outbreak on real estate business is here.
On the afternoon of February 18th, Shenzhen Holdings (00604, HK) took the lead in announcing the “Effects of New Coronavirus (COVID-19) Epidemic on Business Operations”. The aspect details the impact of the epidemic on the company’s business. Today (February 19) opened, Shenzhen Holdings’ share price rose 0.36% to 2.8 yuan / share.
Screenshot of Shenzhen Holdings Announcement
The impact of the new coronavirus (COVID-19) epidemic on the operations of Shenzhen Holdings is as follows:
Sales:
1. In 2019, sales from Wuhan City, Hubei Province accounted for approximately 0.3% of the total contract sales of Shenzhen Holdings. According to the company’s internal estimates, the Group’s saleable volume from Wuhan, Hubei and Hubei will only account for 0.4% in 2020, which will have a slight impact on the overall sales of the group;
2. During the epidemic prevention and control period, the sales center of Shenzhen Holdings was closed, so contract sales in January and February will be significantly affected. In response to the epidemic situation, some projects of Shenzhen Holdings have launched an online all-round sales platform for customers to inquire, subscribe and sign online, so as to protect public safety, the project sales can still be properly carried out.
Rental income:
Shenzhen Holdings cooperated with its parent company, Shenye Group, to actively respond to the requirements of the Shenzhen Municipal Government and the State-owned Assets Supervision and Administration Commission, work through the difficulties with enterprises, and implement measures to reduce rents and burdens, and exempt non-state-owned enterprises, scientific research institutions, medical institutions and individual industrial and commercial households Monthly rents benefited more than 7,000 beneficiaries and individual industrial and commercial households. According to preliminary estimates, the rent reduction and exemption of properties under Shenzhen Holdings is approximately RMB 220 million.
Land reserve:
1. As of the end of 2019, Shenzhen Holdings is located in Wuhan, Hubei Province.Of its land bank accounts for about 5.7% of the Group’s land bank. In 2019, the Group did not purchase additional land in Hubei Province;
2.In 2019, Shenzhen Holdings will add three new projects in Shenzhen, Dongguan, and Nanjing, with a total construction area of approximately 220,000 square meters and a total land price of approximately RMB 3.6 billion.
3. According to the current plan, the Group will pay approximately RMB 1 billion in land price for a city renewal project within 2020.
Construction progress:
In order to strengthen the epidemic prevention and control work, the construction site of Shenzhen Holdings will resume no later than March 1, and the progress of the project will be affected. The Group is formulating a response plan: According to this year’s construction schedule, the delayed resumption of work has not significantly affected important engineering nodes in key projects planned for completion in 2020.
Funding:
1. The Group is currently rich in cash. As of the end of 2019, Shenzhen Holdings’ management account has a cash balance of approximately HK $ 12.2 billion (unaudited). According to the internal forecast of the group, assuming that no pre-sale occurred in the first quarter, the cash balance will remain at the level of about 11 billion Hong Kong dollars;
2. In terms of short-term debt, approximately HK $ 3.2 billion matured in the first half and approximately HK $ 3.5 billion matured in the second half. At present, the financing channels are smooth and there is no liquidity pressure.
The reporter of “Daily Economic News” noticed that as of the close of February 18, Shenzhen Holdings’ share price closed at HK $ 2.79, down 1.06%.
Data source: Flush