“Strive to achieve the annual sales target.” At the performance meeting on August 18, Zhong Beichen, executive director and President of capital real estate, expressed his affirmation of the company’s performance in the first half of the year. < p > < p > according to the data of interim report, in the first half of 2020, the operating income of capital real estate was 9.219 billion yuan, a year-on-year decrease of 12%; the net profit attributable to the shareholders of the parent company was 850 million yuan, a year-on-year decrease of 28%; the basic earnings per share was 0.11 yuan, a year-on-year decrease of 63%. In terms of contract sales, the contract amount reached 33.7 billion yuan, with an average contract price of 34000 yuan per square meter. < / P > < p > for capital real estate, “100 billion” may be a real hurdle. It has strived to “guarantee 75 billion yuan against 80 billion yuan in 2018, break through 100 billion yuan in 2019, and achieve 140 billion yuan in 2020”. However, the target still stays three years ago. In 2020, the goal is set at 80 billion yuan. According to the management, the uncertain impact of the epidemic situation and guarantee are taken into account The operation is steady. < / P > < p > it may never have been expected that the process of going to 100 billion yuan would be so difficult. After “breaking the promise” of 100 billion yuan, “steady, conservative and quality growth” has become a high-frequency word in the mouth of the first real estate management. < p > < p > from the sales situation in the first half of the year, the completion progress of the first real estate was 42%, which also means that about 8 billion yuan of houses will be sold in the next month, so as to achieve the sales target of 80 billion yuan on schedule. < p > < p > capital real estate said in the announcement that the real estate market has been significantly impacted by the new crown epidemic, real estate projects in various regions have been suspended, many sales offices have been closed, and the group’s contracted sales have also been greatly affected. < p > < p > among them, Beijing Tianjin Hebei, Yangtze River Delta and Dawan District of the three core city circles achieved 29.19 billion yuan, accounting for about 87%. The growth of the Yangtze River Delta region was particularly obvious, with the signing amount reaching 10.41 billion yuan, up 30% compared with the same period last year. Beijing, Tianjin and Hebei, which has always been the main sales force for the first time, sold 17.639 billion yuan in the first half of the year. Although it still accounted for 52% of the total sales, it still fell sharply compared with the sales of 36 billion yuan and the contribution of nearly 90% in the same period of last year. < / P > < p > even so, at the mid-term performance meeting, the management of pioneer real estate still expressed confidence in the market in the second half of the year. Zhong Beichen disclosed that the first real estate company had a value of nearly 100 billion yuan in the second half of the year, with sufficient supply. The main inventory areas were Beijing, Tianjin and Hebei, East China led by Shanghai, and Guangdong, Hong Kong and Macao Bay area. < / P > < p > “our projects in the second half of the year have a certain core competitiveness, and the region where the project is located is relatively active, so in principle, there is no consideration of” discount flow “of the project.” Zhong Beichen said so. < p > < p > in the first half of the year, the debt gap of the first home ownership was enlarged, and the total interest bearing liabilities expanded. The net debt ratio is as high as 153%; the total debt is 156.9 billion yuan, with a year-on-year increase of 9.7%; the total interest bearing liabilities increase from 94.671 billion yuan at the end of 2019 to 103.864 billion yuan at the end of June 2020. In the first half of the year, the interest expense was about 1.525 billion yuan, accounting for 16.5% of the operating revenue, which was 2% higher than that of the same period last year. In addition to the operating cost, the interest expense also became a profit black hole of the first home ownership. In the total debt of capital real estate, there are about 15.124 billion yuan of perpetual bonds. After excluding the adjustment of perpetual bonds, the net debt ratio of capital real estate will be higher, and the asset liability ratio will rise to 85.47%. < p > < p > on June 24, standard & Poor’s rating confirmed that the long-term issuer’s credit rating of pioneer real estate was “BB +”, and the outlook was “negative”, one of the reasons was “high leverage”. S & P believes that even if capital real estate can control the debt scale, its leverage ratio will remain at a high level. < p > < p > based on this, capital real estate has to intensively raise funds through financing. Under the background of the decline of sales and rental income in the first half of the year, capital real estate’s book monetary capital of 32.388 billion yuan mainly relies on financing channels. < p > < p > on January 8, capital real estate announced the issuance of US $450 million of drawn notes; on January 22, capital real estate raised nearly 2.5 billion yuan through discount allotment of shares; since March, it has issued 3 corporate bonds totaling 5.209 billion yuan. < / P > < p > in addition, pioneer real estate also aims at the recent hot H-share full circulation. On July 8, the capital real estate company announced that it plans to apply for the conversion of domestic shares and non-h-share foreign shares with a total of no more than 2.832 billion shares into H shares of the company and to be listed on the stock exchange. < p > < p > < p > the degree of capital craving of the first real estate is obvious. Whether it is steady or conservative, the first real estate is still unable to get rid of the “Curse” of the real estate industry of “Chong scale and fast turnover”. At the mid-term performance meeting, fan Shubin, chief financial officer of capital real estate, said that the company had 32.4 billion yuan of cash on hand, with low financing cost, wide financing channels, and 5.34% debt financing cost, which was at a low financing cost level in the industry. In June this year, an application for the full circulation plan of H shares was launched and submitted to the CSRC, which is expected to be approved by the end of this year. < p > < p > according to the Research Report of GF Securities, under the supervision of the CSRC, the market is worried that the interests of domestic shareholders and circulating shareholders are inconsistent, and they are more cautious when considering the refinancing demand of H shares, which indirectly increases the financing cost. If the whole circulation is completed successfully, the tension of cash flow of the first home purchase may be relieved. < p > < p > at the beginning of the year, when setting the tone for the first real estate investment strategy in 2020, Zhong Beichen put forward that “the company’s investment plan in 2020 is a stable and safe investment strategy, taking non competition such as merger and acquisition, industrial linkage and other non competition as the main ways to obtain land, and carefully participate in the bidding, auction and listing market.” < p > < p > sure enough, in the first half of the year, the first real estate company obtained some low-cost land resources through the way of primary and secondary linkage. During the period, it won six secondary development projects including Beijing, Zhengzhou, Nanjing and Chongqing, which was a non competitive bottom price transaction, with a total construction area of 3.076 million square meters and a total investment of 12.58 billion yuan. As of the end of June this year, the total construction area of the first real estate land reserve was 17.899 million square meters, and the total construction area of equity was 11.398 million square meters. < p > < p > on July 22, after 20 rounds of auction, the first real estate company successfully defeated the strong rivals such as China shipping and HUAFA, and won the dwy-l3 plot of Dawayao in Fengtai District of Beijing with a premium rate of 18.26%. Although the first real estate company has been cautious in the land market since 2020, it has made up its position in Beijing again after it seized Huangcun plot with 2.975 billion yuan on February 11. However, as more and more large-scale real estate enterprises “add warehouse” to Beijing, the market share of pioneer real estate in Beijing is gradually squeezed. According to the statistical data of Kerry, in the first half of 2020, capital real estate ranked 18th in the Beijing market with a turnover of 1.977 billion yuan. Two years ago, it was still in the top three. According to Zhong Beichen, the company plans to take 15 billion yuan of land in equity this year. In addition to investing in the three traditional regions in the second half of the year, the company will focus on core cities in Kunming, Zhengzhou and Wuhan, which will be the main investment strategy areas in the second half of the year. < / P > < p > after the sales target of 100 billion yuan was lowered, the interest bearing liabilities of capital real estate exceeded 100 billion yuan first. In this regard, the industry has always questioned “how short of money is the first real estate”, but in any case, based on the 100 billion yuan, capital real estate is a “natural moat”, but the competition is also very fierce.