Edit |Yuer Lake
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2023 is coming to an end, and the year in the real estate industry can be described as full of twists and turns. However, looking back on this year, the report cards handed over by the major leading real estate companies are a few happy and a few worried. In the past year, while many real estate companies have experienced thunderstorms due to debt crises, there are also a small number of companies represented by China Resources Land, which have shown a certain degree of resilience in the "post-epidemic era".
According to the financial report data of China Resources Land, its cumulative contracted sales in 2023 will be about RMB 2,860300 million yuan, with a total contracted sales floor area of approximately 12,060,275 square meters, an increase of 136% and 44%。In the whole year when the real estate market is in a downturn and the economy is in a recession, CR Land's performance is not easy.
In the property sector, CR Land's performance growth is even stronger. According to the data, the rental income of investment properties in November 2023 was about RMB220 billion yuan, an increase of 50 percent year-on-year4%。In 2023, the cumulative rental income of investment properties will be approximately RMB230900 million yuan, an increase of 394%。All indications show that contrarian growth is the main theme of CR Land's current development.
Blossoming in all directions, CR Land bucked the trend and entered the fast lane of development
Recently, the selection list of "2023 Top 100 Chinese Real Estate Enterprise Product Power Rankings" organized by CRIC Research Center was officially announced. It is understood that the center is the professional R&D department of Kerry Information Group, a subsidiary of E-House China. Since its establishment ten years ago, it has been committed to comprehensive research in various fields of the real estate industry and in-depth exploration of special topics for enterprises.
CR Land was selected as one of the "Top 100 Chinese Real Estate Enterprises in Product Power in 2023", and its product power ranking rose from 10th in 2022 to 5th. At the same time, a number of projects under CR Land have been listed on the CRIC list and won a number of awards.
The list given by the authoritative organization is enough to show the industry's recognition of CR Land. In fact, behind these "honors" is also the "foundation" of CR Land's steady performance. For example, according to the "Unaudited Operating Data for the Month Ended November 30, 2023" released by China Resources Land***, the two core data of China Resources Land also performed well in the past November.
At the same time, CR Land's performance in key cities has also risen steadily. According to the data of the CRIC Kerry Real Estate Enterprise Full-caliber List, from January to November this year, China Resources Land led its peers with more than 27 billion. Even since the peak of performance in 2022, it has taken the lead in breaking through the 20 billion mark, and is expected to exceed 30 billion for the whole year.
What confirms CR Land's product strength is its continuous growth performance. According to the previously released 2023 semi-annual performance report, China Resources Land ranked among the top four in the industry in terms of contract value, with a year-on-year increase of 406%, much higher than the overall level of the industry.
Taking Chengdu as an example, which transmits important information to the market, as the third city in Chinese mainland to host the Universiade after Beijing and Shenzhen, Chengdu is also the main battlefield of CR Land's "big market".In mid-November, it held the 2023 Eight High-gloss New Product Launch Conference in the small arena of Dong'an Lake Sports Park, which improved the product strength of China Resources Land and boosted the industry.
In view of CR Land's outstanding financial performance, smooth financing channels and rapid growth in recurring income, highlighting its financial soundness and ability to navigate the cycle, it has also been unanimously recognized by many well-known sell-side investment banks at home and abroad. For example, CICC, Citigroup, UBS, Morgan Stanley, JPMorgan Chase, and dozens of well-known domestic and foreign head investment banks and securities firms have given them ** ratings after they released their financial reports for the first half of the year.
Industry differentiation is accelerating, and CR Land is unleashing the potential of oligarchs
Real estate industry insiders generally believe that the continuous decline in the real estate market will accelerate the industry reshuffle, in the dynamic change of the market pattern, based on the city, enterprises, resources, products of real estate development indicators, are accelerating differentiation.
For example, as the "means of production" of real estate enterprises, the level of land acquisition can reflect the development potential of an enterprise to a large extent. According to the financial report data, the new value of China Resources Land reached 1015 in the first half of the year900 million, becoming the only real estate company to exceed 100 billion. Compared with Binjiang Group and Vanke Real Estate, which ranked next in terms of new value, they are both around 78 billion yuan. It can be seen that the gap between the "means of production" between the leading enterprises is continuing to widen.
From the perspective of product sales, the West China Region of China Resources Land, which takes Chengdu as an example, has achieved outstanding results, and even released the potential of China Resources Land's brand and products. It has been observed that the rapid development of CR Land has a set of logic behind it.
On the one hand, in potential cities that can quickly show scale, CR Land is very decisive and resolute, so it can also win through efficiency. The eight high-gloss new products mentioned above are projects that take advantage of the rapid implementation of the Universiade, which can be called a "model project" for CR Land to accelerate operational efficiency.
On the other hand, standardized products and star projects have driven CR Land to present a brand effect, which has also played a great role in promoting project sales. For example, many cities under the jurisdiction of CR Land's West China Region, such as Chengdu, Chongqing, Xi'an, Kunming, Guiyang and Lanzhou, basically have distinct regional characteristics, which can be described as "adapting measures to local conditions".
At the same time, CR Land has also carried out personalized design of its products and projects in terms of space design and house design, so it is a star project wherever it is located.
As a result, CR Land has gradually demonstrated its brand advantages, product advantages, and occupied a place in the industry, and even when the industry distribution is becoming more and more obvious, CR Land has thrown off some competitors a few streets and shown its great potential to become an oligarch.
In addition, the reason why CR Land has become a leading enterprise in the domestic real estate industry is also related to its efficient internal operation, rapid completion of project delivery, and cash flow. In stark contrast to some real estate companies with cash flow shortages and high debt, CR Land has maintained a relatively healthy financial position.
For example, according to its data for the first half of the year, not only did its sales outperform the industry average, but its balance sheet was solid in the first half of the year, with its total interest-bearing debt ratio and net interest-bearing debt ratio falling to 39., respectively3% and 285%, all at the low level of the industry.
Therefore, CR Land has always achieved project expansion and sales growth through its continuous "grain" into the warehouse. Moreover, compared with the high leverage that prevails in the industry, CR Land can be said to be maintaining high-quality growth.
Continuing to outperform, the logic behind the high-quality development of CR Land
No one succeeds casually. It is obviously no accident that CR Land can stand out from the crowd of real estate companies. It is observed that this is the result of CR's comprehensive layout and balanced development from development strategy to landing strategy, as well as brand power, product power, marketing and other dimensions.
First of all, in terms of strategy, in the 26 years since its listing, CR Land's strategy has been forward-looking, and it has adhered to the strategic positioning of "urban investment, development and operator", and built a "3+1" integrated development business model. As a result, barriers to competence through industry cycles have been established.
It is understood that the so-called "3+1" refers to the fact that CR Land has built an integrated business portfolio model with the organic linkage of the three main businesses of development and sales business, operating real estate business and light asset management business and the ecosystem element business under the guidance of the strategic positioning of "urban investment and development operator", so as to create an urban investment, development and operation ecosystem.
On this basis, CR Land also pursues sustainable development with the theme of "stability, growth and balance". Despite the impact of the project settlement cycle in the first half of the year, the revenue of CR Land's real estate business was 546200 million yuan, contributing 54 million core profits500 million yuan, a year-on-year decrease, but from shopping malls, office buildings, hotels, etc500 million yuan, core profit of 48200 million yuan, an increase of 35 percent year-on-year6% and 903%。
At the same time, in terms of light asset management business, the revenue of CR Mixc Life achieved a turnover of RMB67 during the period900 million yuan, a year-on-year increase of 287%。And its ecosystem business turnover has also reached 26200 million yuan, of which the construction business revenue is 1.4 billion yuan, and the agency construction business and long-term rental apartments are 6100 million yuan and 31.7 billion yuan, a year-on-year increase. 2%。
It can be seen that under the guidance of CR Land's "3+1" strategy, all business segments of CR Land are advancing hand in hand. Moreover, with the diversification of its business, its ability to resist risks has also increased significantly. This can be seen through its revenue and net profit structure.
For example, in the first half of this year, the proportion of revenue contributed by its recurring business increased by 6% year-on-year5 percentage points to 251%, and the proportion of profit contribution increased by 17 year-on-year8 percentage points to 428%。
Moreover, the overall gross profit margin of Vientiane Life alone increased by 1 compared with the same period last year5 percentage points to 332%；Core net profit increased by 36% year-on-year7%, to 14200 million yuan. It is these deterministic development strategies that have enabled CR Land to smoothly navigate through the industry cycle amid the many uncertainties in the market game.
It is worth affirming that under the overall downward trend of the industry, China Resources Land not only maintained its fundamentals, but also maintained its profits. At the same time, it also allows it to maintain sufficient cash flow, so it can also release its stamina.
Conclusion
As a leader in the industry, CR Land's brand power is undoubted. As its business diversification strategy began to take shape, its development became more and more robust. As a result, it has gained more trust than its peers. And this level of trust includes trust from the consumer market and the capital market.
It can be said that CR Land has always been on the path of positive circulation and benign development of the enterprise, so it has been able to gradually build unique industry barriers and have the risk of resisting fluctuations in the external economic environment. Looking at CR Land from these perspectives, we can also see the market value and long-term value of the brand.
It is believed that in the volatile real estate market, CR Land, which has a solid foundation and forward-looking development strategy, can survive the cold winter of the industry. When it ushers in the spring flowers, it will continue to release its brand value and become an industry benchmark with the momentum of accumulation.