In 2023, the real estate situation will become more and more severe, and not only private real estate enterprises, but even state-owned enterprises will feel the operating pressure. According to the statistics of the China Index Research Institute, in the first 11 months, the number of enterprises with a year-on-year decrease in cumulative performance exceeded 60%. Among them, the number of 100 billion real estate companies decreased from more than 40 in 2020 to 16, and the number of 10 billion real estate companies decreased from 166 in 2020 to 108. Previously, many real estate companies that were known as dark horses in the industry were beaten back to their prototypes at this moment. Fortunately, in the face of downward pressure on the industry, there are still a number of real estate companies that have successfully passed the extreme stress test with strong business resilience. Among them, there are not only state-owned enterprises, but also some small and beautiful real estate companies with little reputation. In them, real estate people can not only learn the rules of survival under the cold winter of the industry, but also get a glimpse of the future evolution of real estate.
The 28th law of real estate is highlighted
The performance of state-owned enterprises continues to lead.
Xiao Ming once said that the real estate industry has entered the stage of the cruel 28 law, and there are only two types of real estate companies that will do well in the future, one is the state-owned enterprises represented by Poly, Yuexiu, Vanke, and Greentown, as well as mixed enterprises. The other type is high-quality private enterprises represented by Longfor and Binjiang.
Needless to say, in recent years, with the decline of the industry, many state-owned enterprises have risen strongly with strong financial advantages and continued to lead.
Of course, there is also a serious differentiation within the state-owned enterprises, and Xiao Ming mainly lists several state-owned enterprises with outstanding performance this year, for reference only.
The first Poly Development.
As early as a few years ago, Poly Development shouted the slogan of "Protecting Five and Striving for Three", and many peers did not think so.
However, with the continuous decline of the real estate industry, a number of leading private real estate companies have stepped down from the altar one after another, and the ranking of Poly Development has become higher and higher year by year.
According to CRIC data, in the first 11 months of 2023, Poly Development achieved a full-caliber amount of 399.5 billion yuan and an equity amount of 271 billion yuan, ranking first in the industry in both rankings, and firmly sitting on the throne of "real estate brother".
Poly Development has successfully reached the top for several reasons:
The first is to actively change positions and deepen the cultivation of 38 core cities.
In the past year, although the amount of land acquired by Poly has decreased significantly compared with previous years, the investment scope has become more precise and focused. For example, in the first three quarters, Poly's expansion in 38 core cities accounted for 99%, higher than 90% in the same period last year.
The deep cultivation of the city can fully reflect the management advantages of Poly, and it can also resist the cold winter of the market to the greatest extent. For example, in the first half of the year, Poly ranked first in sales in 25 cities and ranked in the top three in 46 cities, which is the best proof.
Second, the team is stable and the structure is efficient.
Poly's turnover rate, whether it is an ordinary employee or a management team, is very low. The stability of the team, on the one hand, can ensure that the company's business philosophy and strategic direction can be firmly implemented, on the other hand, it also helps the company save the cost of vacancies caused by employee turnover, the cost of recruiting and training new employees, etc.
At the same time, Poly Development is still one of the few leading enterprises in the industry that adopts the two-level management structure of "headquarters + city platform". This extremely flat structure not only ensures the headquarters' keen market sense and control of the company's overall business, effectively reduces information asymmetry, improves decision-making and management efficiency, but also ensures the company's strong execution and rapid adaptability to change.
The second Huafa shares.
Some time ago, Xiao Ming asked an employee of a central enterprise which real estate company he was most impressed by, and he replied without thinking: Huafa.
Five or six years ago, the performance of Huafa shares was still ranked outside the top 50, but in recent years, Huafa has grown at an average annual rate of 8 places, and in the first 11 months of this year, the full caliber amount of Huafa shares was 1211500 million yuan, a year-on-year increase of 1831%, ranking 14th in the industry.
Among them, Huafa achieved equity sales of 283 in Shanghai6.6 billion yuan, ranking second. Achieve traffic sales of 215 in Zhuhai8.9 billion yuan, firmly in the championship.
What is so powerful about Huafa:
First, the strong support of major shareholders.
The rapid expansion of Huafa shares has a great relationship with the support of the major shareholder Huafa Group, which is the same age as the Zhuhai Special Economic Zone and is the largest comprehensive state-owned enterprise group in Zhuhai with strong strength.
For example, from 2020 to 2021, Huafa Group increased its capital by a total of 30 billion yuan to Haichuan Company, a subsidiary of Huafa Co., Ltd. In October this year, Huafa shares successfully completed 512.4 billion yuan fixed increase, of which the controlling shareholder subscribed 285%。
The second is to lay out the core city, and multi-department linkage to accurately acquire land.
In order to ensure the profit of the project to the greatest extent, in the pre-investment stage of the land, the operation, marketing and cost departments of HUAFA have been involved in the investment and expansion, and support the land research and judgment from the perspective of project operation and sales.
In terms of layout strategy, HUAFA focuses on 11 core cities, including Shanghai, Shenzhen, Guangzhou, Hangzhou, Beijing, Zhuhai, etc. These cities benefit from the advantages of population, industry and economic strength, and have performed well in terms of purchasing power and de-payment.
Actively innovating in marketing, HUAFA is a relatively early real estate company in the layout of online marketing. Moreover, the sales management is more refined, for example, their marketing management center, strategic operation management center, and financial management center form a "three-center joint review" to jointly and rapidly promote the joint review of sales policy mechanism.
Every half month, the major regions also divide the key projects on sale into five categories according to sales, flow rate, profit, etc., and adhere to the strategy of "making up for losses if there is a reduction".
The third Yuexiu Real Estate.
In the face of the severe industry situation this year, Yuexiu Real Estate is one of the few real estate companies with steady growth in both revenue and profit.
In the first 11 months of 2023, Yuexiu Real Estate achieved contracted sales of about 1,329100 million yuan, an increase of about 29 percent year-on-year1%, ahead of the annual target.
Why can Yuexiu Real Estate grow against the trend?
First, the soil reserves are excellent.
As of the end of June 2023, the company's total land reserve was 28.13 million square meters, of which 93% were distributed in first- and second-tier cities, 461% are located in the Greater Bay Area (403%），18.8% are located in East China.
The core location and excellent products have driven the company's average sales price to increase year by year, ensuring profits to the greatest extent.
In 2022, the average sales price of Yuexiu will be 30,200 yuan square meters, an increase of 9% year-on-year5%, much higher than the average sales price of the top 100 real estate companies is 1620,000 yuan. In the first half of this year, the average sales price of Yuexiu was as high as 33,800 yuan square meters, an increase of 22 year-on-year9%。
Second, the product is powerful. In the past two years, Yuexiu has continued to develop the high-end market and achieved very bright results, for example, last year, there was a single sales amount of more than 16 billion, and it won the top 4 sales in the country, and this year there are also many projects that have opened hotly.
On the one hand, Yuexiu actively innovates in product design, and on the other hand, Yuexiu attaches great importance to the construction of a standardized system.
For example, in terms of product standardization, Yuexiu Real Estate has built a full-cycle product operation system, solidly promoted the integration of customer research, product standardization, BIM system, design and construction, and continued to build product strength.
The fourth China Resources Land.
The performance growth rate of CR Land in recent years is also obvious to all, and whether it can advance to the top three is a major highlight this year.
In the first 11 months of this year, CR Land achieved a contracted sales amount of about 2,860300 million yuan, a year-on-year increase of 136%。The rental income realized by the investment property is about 230900 million yuan, an increase of 394%。
Compared with other real estate companies, CR Land's advantages are more complex and diversified.
First, diversified business collaboration.
The first step in CR Land's growth against the trend is its unique "3+1" integrated business portfolio model.
In the three main channel businesses, development and sales are the engine of performance growth, operating real estate provides long-term stable cash flow, and light asset management business is a strong growth pole for performance contribution. In addition, there is an ecosystem element business, focusing on agency construction and operation, long-term leasing, film industry, health care and other businesses.
With the "3+1" business synergy, CR Land's differentiated competitive advantages have been highlighted, and it is able to calmly face changes in the industry landscape.
Second, it is financially sound.
Relying on China Resources Group, China Resources Land has significant financing advantages. The weighted financing cost in the first half of this year was only 356%, a new low in nearly a decade.
During the same period, CR Land's total interest-bearing debt ratio and net interest-bearing debt ratio decreased to 39., respectively3% and 285% industry low. In addition to the restricted bank deposits, the cash that can be flexibly used reached 12791.5 billion yuan, is one of the few real estate companies with cash of more than 100 billion yuan.
The third is efficient management.
In the past two years, CR Land has been working its organizational structure, determined to build an "agile, efficient, capable and dynamic" organization.
For example, CR Land has set up a leading group for organizational change and a working group for headquarters. Promote the flattening of management by streamlining headquarters functions, regional functions, and merging city companies.