2020 “Yinhua Fund Cup” Sina bank financial planner competition, hot registration. From now on to September 7, you will receive free gift packages worth more than 700 yuan from Guan Qingyou, Luo Yuanshang, Chen Kaifeng and Jian Qi. Recently, time China released its interim performance report for 2020, with both revenue and net profit declining. In recent years, the company’s business key city renewal after the decline in revenue in 2019, the revenue in the first half of the year was 0, due to the impact of the epidemic situation, the transformation was delayed. As a result, the company’s profitability has been affected to a certain extent, the gross profit rate has continued to decline, at the same time, the expense rate has increased slightly, and the net interest rate has also declined slightly. < / P > < p > at present, although the cash balance can fully cover the short-term interest bearing liabilities, the company’s land acquisition is not reduced this year, and there are a lot of old transformation projects to be transformed, so the capital demand is still large. Under the sharp slowdown of sales growth rate, there may still be a large financing demand. According to the interim report, from January to June, China realized 14.925 billion yuan of operating revenue, a year-on-year decrease of 6.4%; and the net profit attributable to the shareholders of the parent company was 1.537 billion yuan, a year-on-year decrease of 3.6%. Wind data showed that the net profit of the parent company after deducting non-profit was only 686 million yuan, a sharp decrease of 54.56% year-on-year. It is worth noting that in 2019, the growth rate of net profit attributable to parent company of the company significantly slowed down to 18.49% compared with the previous period, and further deteriorated in the first half of this year. < / P > < p > data shows that the decline of operating revenue in the first half of 2019 in time China is mainly due to the zero current income of urban renewal business. The revenue of this business in the first half of 2019 is 640 million yuan, and the whole year of 2019 contributes more than 2.1 billion yuan, which is one of the main revenue sources of the company. < / P > < p > it is worth mentioning that in recent years, era China began to develop urban renewal business, and began to contribute revenue in 2018. In the first half of 2020, the number of urban renewal projects has rapidly increased from 120 at the end of 2019 to 150. Although the project is booming, the revenue is very unstable. In 2019, the urban renewal business declined by 21.91%, and the business was even worse in the first half of this year, and the income dropped to 0. According to Cen Zhaoxiong, chairman of time China’s board of directors, in the first half of the year, the income of urban renewal 0 was mainly due to the delayed transformation of some projects affected by the epidemic. < / P > < p > the instability of urban renewal business has also affected China’s profitability. In 2019, the gross profit margin of the company will decrease by more than 1% to 29.31% from 30.9% of the previous year, and further decline to 26.95% in the first half of 2020. In addition, in the first half of the year, China’s expense ratio [(cost of sales + administrative expenses + other expenses + financing costs) / operating income] rose to 12.88%, resulting in a slight decline in the company’s net interest rate from 13.01% to 12.05%, and the profit level declined.
recently released a performance briefing, the chief financial officer of China, said the three reasons for the decline in gross margin. Apart from city renewal business, there was a relatively low gross profit margin in Heshan project in Jiangmen, which suck in the project. The price promotion in Guangfo district was implemented due to the epidemic situation. According to the times China half yearly report, in the first half of the year, it spent 4.264 billion yuan to purchase seven plots, with a total construction area of 923900 square meters, and the land acquisition cost was about 4615.22 yuan / square meters, slightly lower than that of 47.55 million square meters in 2019, but the average sales price in the first half of the year dropped to 13906.92 yuan / square meters from 14654.95 yuan / square meters in 2019. The average selling price / land acquisition cost from January to June is 3.01, which is slightly lower than that of 3.08 in 2019. The decline of average sales price may squeeze the profit space in the future. < / P > < p > in the first half of the year, the area of seven new land parcels belonging to the company was 547500 square meters, with a low equity ratio of 59.26%, which further decreased from 65% in 2019, or further suppressed the company’s profit. As of June 30, 2020, the total land reserve of era China is about 21.8 million square meters, which can meet its development needs in the next three to five years. Qingyuan City’s land reserve continues to rank first with the proportion of more than 20%. At present, the completed area of the company is about 2.408 million square meters, and the area under development / future development is about 19.3873 million square meters. The proportion of development started is large, and there is still a large capital demand. < / P > < p > although many real estate enterprises have publicly said that they will take land prudently under the epidemic situation, the land acquisition efforts of era China this year are still not small. At the beginning of the year, the company said that it would take 25-30 billion yuan to acquire land in 2020. In July alone, it spent more than 16 billion yuan on land acquisition in Guangzhou and Foshan. By the end of June 2020, there were 150 urban renewal projects in time China, while there were 147 by the end of 2019. It can be said that era China has made great strides on the road of urban renewal. And urban renewal business will sink a lot of funds, which will also test the cash flow level of the company. < p > < p > in the ten years from 2010 to 2019, there are 8 years of net outflow of operating cash flow and 10 years of net outflow of investment cash flow, and the range of net outflow has increased significantly since 2015. As a result, the company’s financing demand is rising day by day, pushing up the company’s debt scale. < p > < p > in the first half of 2020, the total liabilities of time China further increased from 125.393 billion yuan at the end of the previous year to 137.711 billion yuan. Among them, the short-term interest bearing bank and other loans and interest payable were 25.367 billion yuan, while the cash and cash equivalent balance of the company in the current period was 31.164 billion yuan, which was enough to cover the short-term debt. In the first half of this year, time China achieved contract sales of 32.57 billion yuan, a year-on-year increase of 4.3%. Although it still achieved growth, the growth rate was significantly slower than the 20% growth rate in the same period last year. The company’s sales target in 2020 is 83 billion yuan, and the completion rate in half a year is 39.24%. < / P > < p > the company’s demand for capital is still very high due to the slow growth of sales, large amount of land acquisition, a large number of old reform projects, and a large proportion of dynamic construction.