[ad_1]
Sun Hongbin: Not regulating is not good for anyone, and ordinary people can’t afford it if developers don’t make money. 丨 Go directly to annual report ①
China real estate news
Sunac ChinaChairman of the Board of Directors Sun Hongbin
“
If this industry is not regulated, it will have too much impact on the financial system and it will also involve people’s happiness.
China Real Estate News reporter Miao Ye 丨 Beijing Report
“I support regulation. Without regulation, the industry can’t do anything. Without regulation, housing and land prices will skyrocket. Without regulation, land prices will rise faster than housing prices for developers , and they won’t generate income. People aren’t going to make money either. I can’t afford it, and it’s no use if I didn’t regulate it. ”Sun Hongbin, chairman of the board of Sunac China (01918.HK), said when talking about property market regulation in the company’s performance meeting in 2020, the industry is too big and requires too much money.
He cited: “Real estate money represents more than 30% of the entire financial system. If you add other industries to use real estate as collateral, it will reach more than 50%. If this industry is not regulated, it will also have a lot of impact on the system. financial, and it will also involve the happiness of the people. Therefore, the central control of the real estate market is based on these two logics “.
On March 12, Sunac China announced its 2020 annual results. Hongbin Sun attended and answered relevant questions.
Since Sun Hongbin declared to the outside world that Sunac’s important goal is to reduce leverage, scale is no longer Sunac’s only requirement and it has started to adjust the pace in a timely manner in the two most important links in the real estate industry: “Money” and “land”. With one-handed bond issuance, one-handed property sale, and one-handed sale of publicly traded properties, Sunac strives to balance the balance of its rocker.
Sun Hongbin said: “After the three red lines, there is no need to worry about the debt ratio. Now the central bank is in charge. Two years ago I said that I do not want Sunac’s total liabilities to increase, but I hope to increase its net assets and sales Sunac’s total liabilities for the past three years There has been no increase, and sales have increased so much, the debt ratio must have decreased, and regulation has made the industry safer.
In the development process of Sunac, Sunac has been deeply rated as “Gambling”, “King of M&A” and “Crazy Expansion”. However, under the high pressure of the “Three Red Lines”, Sun Hongbin, ambitious as he may be, has no choice but to seek stability from the Lord. “Reduced leverage, reduced financing costs, and tight control of land acquisition” have become keywords throughout Sunac’s 2020 annual theme.
First, it manifests itself in the acquisition of land. The financial report shows that in 2020, financial innovation will increase the land reserve of about 58.77 million square meters, and the new value of 726.1 billion square meters. yuan. By the end of 2020, Sunac China land bank is about 258 million square meters, of which the land bank area in shares is about 161 million square meters, and the value of the bank of land is 3.1 trillion yuan.
Data for the same period last year was a 1.34 trillion yuan increase in land reserves. The total land reserve was 234 million square meters and the value of land reserves in hand was 3.07 trillion yuan. Without a doubt, Sunac has adopted a “sudden stop” in the soil market in 2020.
When talking about centralized land supply policy in key cities, Sun Hongbin believes this is a good thing for the development of the entire industry.
“The original intention of this policy is to run government, and the central bank’s ‘three red lines’ are to run businesses. One of the centralized land supply policies of key cities is to increase land supply and ensure transparency of land. This allows companies to gain access to hotspot cities. There is an expectation of the amount of land available. For example, if there are 20 or 30 lots at a time, large companies can sign up to get two or three lots of 20. Today, the supply of land in hot cities is insufficient and competition is fierce. In the short term, this policy will not generate hot spots. The decrease in the supply of urban land may have a greater impact on the land market in the second half of the year or next year, “said Sun Hongbin.
In terms of land acquisition strategy, Sun Hongbin said that the 58 Sunac City companies responsible for 120 cities can seize the opportunity of plate rotation and have a relatively large advantage in the open market.
In fact, Sunac has started acquiring land since early 2021. According to Crane’s data, Sunac acquired 22.52 billion yuan worth of land in the first two months, added 2.265 million square meters of land reserves, and added 49.8 billion yuan. in land value, of which 6 had a premium of more than 12%. On February 20, a parcel of land sold in Putuo, Shanghai with an investment of 6.452 million yuan, with a premium rate of 36.15%, updated the unit price of residential land in the district and thus , was interviewed by the Putuo district government.
Second, Sunac has also changed the way of “finding money.” From the initiation of the award, to the prepayment of trust loans with high financing costs, and the repurchase and cancellation of some US dollar bills, to cooperation with GIC, Sunac’s efforts to reduce debt can also be seen. debt. “Don’t borrow money at random. If you borrow a lot of money, the risk of stock price changes is too great,” Sun Hongbin said.
At the end of 2020, Sunac’s cash balance was 132.65 billion yuan, of which 98.71 billion yuan was unrestricted cash. The total amount of the loans is approximately 303.4 billion yuan, most of which is obtained from banks and other institutions. Total debt is 930.5 billion yuan, an increase of about 9.9% year-on-year, and the debt-to-asset ratio is about 83.9%.
Sunac stated on different occasions that it would reduce debt levels, including at the performance meeting. Wang Mengde, CEO of Sunac China, said: “In 2020, three indicators have been greatly optimized. Two indicators have reached standards and the latest indicator will be completed ahead of schedule in 2022.”
The three indicators in his mouth are the “three red lines” new regulations that have attracted a lot of attention in the market. Before that, Sunac China had stepped on it and was in the “red line” position. How to reduce debt has become the focus of the market.
At the end of 2020, Sunac’s net debt ratio fell 76 percentage points year-on-year to 96%, and the unrestricted short-term cash debt ratio rose to 1.08. After excluding advance receipts, the debt-to-assets ratio fell to 78.3%.
This also means that, in addition to excluding anticipated receipts, the asset-liability ratio of more than 70% has not fallen below the red line, and the other two Sunac China indicators have turned from red to green.
“At this stage, the scale and growth of the company are not the most important, the future is overall competitiveness. From your own point of view, you should continue to maintain the financial indicators and asset structure of the entire group in the next two years, including continuous optimization of debt indicators. This is something very clear, “said Wang Mengde.
For the full year 2020, Sunac China’s annual operating income was 230.59 billion yuan, a year-on-year increase of 36.2%; gross profit was approximately 48.4 billion yuan, an increase of 16.9% year-on-year; gross profit margin was around 21%, a decrease of 24.5% in 2019; shareholder profit was 35.64 billion yuan, a year-on-year increase of 36.9%; core net profit was about 30.26 billion yuan, an increase of 11.8% year-on-year.
Massive information, accurate interpretation, all in the Sina Finance APP
Editor in Charge: Lu Wenyun
