2023-03-31 17:03:39
Source: China Real Estate Network
In 2022, the real estate market will undergo profound adjustment amid the shock. Despite the challenging business environment, Hopson still maintains its own strength, adheres to a prudent and steady operating policy, focuses on asset appreciation and financial stability, and is committed to achieving sustainable development.
At noon on March 30, Hopson Chuangzhan released the 2022 annual performance announcement. The announcement shows that Hopson’s core business sector remains profitable, its debt scale has been reduced, its brand strategy has been upgraded, its diversified business structure, and high-quality products and services have formed the moat for Hopson to consolidate its market position.
Gross profit margin maintains industry-leading debt scale continues to shrink
The performance report shows that in 2022 Hopson Chuangzhan will achieve a turnover of HK$27.252 billion; core profit of HK$1.081 billion; gross profit of HK$8.281 billion and a gross profit margin of 30%; profit attributable to equity holders of HK$8.762 billion, of which the real estate sector The core profit was HK$2.511 billion.
Gross profit and gross profit margin are important indicators to measure the profitability of a company. According to data from Sinolink Securities, the decline in the gross profit margin of real estate companies from 2019 to 2021 will expand year by year to 26.96%, 23.35%, and 21.3%, respectively. In the first half of 2022, this data will fall below the 20% average and fall to 19.4%. It can be seen that the 30% gross profit margin of Hopson Development is at a high level, and its profitability is outstanding.
In the context of poor real estate financing, cash flow has become the lifeblood of real estate development. According to the data, as of the end of 2022, Hopson Development has obtained approximately HK$217.745 billion in bank credit for short-term and long-term bank loans, of which HK$121.218 billion has not yet been used. At the same time, cash and bank deposits amounted to HK$18.394 billion.
Sufficient cash flow is conducive to Hopson Chuangzhan’s reasonable arrangement of debt repayment plan and continuous optimization of debt structure. The performance report shows that the total amount of interest-bearing debt is about 96.5 billion Hong Kong dollars, a decrease of 16% from the previous year’s 115.210 billion Hong Kong dollars, and credit bonds only account for 8% of the total balance of interest-bearing liabilities. Debt due is approximately HK$24.9 billion, remaining at a relatively low level of 26%, and short-term debt pressure is small.
In addition, Hopson’s public market debt has steadily declined. According to the data, in 2022, the public market debt will be 15 billion yuan, a decrease of 43%. In 2023, the open market will only have about 237.5 million US dollars of debt and about 660 million yuan of commercial CMBS, which can be replaced/refinanced at maturity.
It is worth noting that on November 24, 2022, Hopson Chuangzhan signed a cooperation agreement with the head office of China Construction Bank. According to the agreement, China Construction Bank will provide Hopson Development with support including real estate finance, housing leasing business support, and comprehensive financing services. In addition, it signed strategic cooperation agreements with a number of banks, and the credit of the six major banks increased by 36%.
Through the strategy of steady development, it has always maintained a low asset-liability ratio and sufficient and safe cash flow, and Hopson Development has continued to be recognized by the market and capital. At present, S&P and Fitch maintain the credit ratings of Hopson Chuangzhan B and B+ respectively; United Ratings maintains the highest credit rating of AAA.
The core business segment continued to maintain profitability Continue to create high-quality products
The achievement of operating performance is inseparable from the support of sales performance. The report shows that in 2022, Hopson Chuangzhan will sell and pre-sale contracted properties totaling RMB 32.579 billion, including property contract sales of RMB 30.532 billion and decoration contract sales of RMB 2.047 billion.
Specifically, the total construction area sold in Beijing and Tianjin was 689,400 square meters, with a book value of RMB 20.968 billion. It accounted for 64% of the total contracted sales, mainly including Manhe Beijing, Hesheng Manyun, Dongsan Jinmao Mansion and Hopson Meyue.
The total construction area sold in Shanghai is 194,100 square meters, with a book value of RMB 3.299 billion, accounting for 10% of the total contracted sales, mainly including Hesong Orchid Pavilion, Hopson Sheshan East Ziyuan and Hopson Dongjiao Villas.
Contracted sales in Guangzhou and Huizhou amounted to RMB 8.312 billion, accounting for 26% of the total contracted sales. The main projects include Guangzhou Hopson Manyun, Hopson Ziyue Mansion, Hopson Hushan International and Hopson Yunshan Royal View. Among them, the total construction area sold in Guangzhou was 377,800 square meters, with a book value of RMB 7.29 billion; the total construction area sold in Huizhou was 104,100 square meters, with a book value of RMB 1.022 billion.
Stable sales performance is inseparable from the precise layout of the market, and is also closely related to the innovation of Hopson’s product strength and the continuous improvement of sales power. Over the years, Hopson has always followed the high-end boutique strategy, constantly changing and innovating, and continuously improving product strength. It has successively launched a series of high-quality products such as Hesheng·Man series, Yue series, Dijing series, Junjing series, and International City series, which are popular in the market, and took the lead in building a special product IP belonging to the real estate industry. These benchmarks for “connecting with the city” The works attract popularity and resources for the city in different dimensions, not only release the value of the project itself, but also stimulate the greater value of the area where it is located, empower urban development, and build a high-quality urban residential business card with the characteristics of co-existence.
In 2022, Hopson’s products will break through against the market. In addition to Beijing, they will continue to deploy in Guangzhou and Shanghai, and the brand will expand and expand geographically. The annual sales performance was 12.699 billion yuan, accounting for 39% of the total sales. The all-round quality improvement of the Man series products demonstrates the core competitiveness of Hopson Development in creating differentiated high-end lifestyles.
For a long time, Hopson Chuangzhan has insisted on cultivating the first- and second-tier core cities in the Bohai Rim, the Yangtze River Delta, and the Greater Bay Area. According to the data, as of the end of 2022, the total land reserve of Hopson Chuangzhan is 28.72 million square meters, of which the land reserve of the real estate sector is about 21.46 million square meters, and about 74% of the land bank is located in first-tier cities; the land reserve of the commercial sector is about 7.26 million square meters , About 95% of the land bank is located in first-tier cities, which provides the cornerstone for future sustainable profitability.
In addition to the public market, Hopson Development is also actively participating in mergers and acquisitions, and has accumulated a lot of resources and experience in the field of urban renewal. Among them, the urban renewal project is a field that Hopson has been cultivating deeply for many years. The Binjiangyuan project will successfully enter the market in 2022 and obtain a pre-sale certificate in 2023. In addition to the Binjiangyuan project, there are currently several urban renewal projects in progress.
Adhere to the “Four Guarantees” guideline, annual real estate delivery income17.629 billion Hong Kong dollars
As we all know, as the key business segment of Hopson Development, the real estate segment continues to provide the group with steady income and profit growth points, and is the ballast stone for Hopson Development to contribute cash flow.
High-quality products and services are the core driving force for the continuous profitability of the real estate sector. 2022 will be the 30th anniversary of Hopson Creation and Exhibition. Product power, brand power, quality power, and service power will continue to be upgraded in all dimensions, deeply interpreting the brand concept of “quality life, perfect embodiment”, and creating a full-scene life experience for urban mid-to-high-end people .
In addition, under the new situation of the real estate industry, “guaranteed delivery” has become an annual keyword for the development of the entire industry. As a powerful answer to product strength, delivery capability is an important manifestation of the comprehensive capabilities of real estate companies in cost control, engineering management, technical support, risk control, and service systems, and is an important criterion for measuring the development strength and competitiveness of real estate companies.
Under the background of “guaranteeing delivery and stabilizing people’s livelihood”, Hopson Chuangzhan’s real estate sector adheres to the four-guarantee policy of guaranteeing delivery, pre-sale, start-of-construction, and completion. “The quality control system is a means to comprehensively improve quality in multiple dimensions. In 2022, the sales revenue of real estate delivery will be 17.629 billion Hong Kong dollars, and the total construction area will be about 1.0144 million square meters, mainly including Manhe Beijing and Hopson World Village in Beijing, Heyue Orchid Pavilion in Kunshan and Hesheng Xijing Garden in Guangzhou.
It is worth noting that in 2022 Hopson Chuangzhan has entered into a sales and pre-sale contract but has not yet delivered to the buyer a construction area of 2.062 million square meters. Upon delivery of the properties, proceeds received from them totaling HK$45.176 billion will be recognized as revenue in the Group’s financial statements in 2023 and thereafter.
A total construction area of 865,500 square meters has been completed in 2022, and a total construction area expected to be completed in 2023 is 2,897,000 square meters. At the same time, Hopson Chuangzhan insists on guaranteeing the delivery of buildings, guaranteeing pre-sales, and guaranteeing the start of construction, providing 94.5 billion yuan in sales volume for 2023.
Simultaneous development of light and heavy assets, formation of dual-platform business in commercial sector
In addition to the real estate sector, after years of development, Hopson Development has already become a technology-enabled and industry-driven comprehensive investment holding platform company, and its business, infrastructure, co-living, investment and other sectors have also continued to develop.
Among them, the commercial sector, as an important part, has formed two major management models, light and heavy, in 2022, and has developed into a dual-platform business. It is reported that Hopson Chuangzhan’s commercial light assets will focus on the expansion of product lines such as Hopson Club, Super Hopson Club, Hopson Plaza, hopx Super Extreme Arena, MOHO, etc., and provide EPC+O The whole industry chain service (pre-planning and management service + scheme design management service + construction, quality control service + investment management service + operation management service).
2022 is the 30th anniversary of Hopson Development. Over the past 30 years, Hopson has always maintained its own strength, faced with the ever-changing external environment, actively responded to industry changes, relied on forward-looking vision and strategic layout, and continued to innovate and change with a younger, more modern and more international perspective.
2023 is the first year to fully implement the spirit of the 20th National Congress of the Communist Party of China. Facing the future, Hopson will not be afraid of changes, actively respond to industry changes, and explore the potential of enterprise upgrading. With a steady pace of development, diversified industrial layout, high-quality products and services, and a healthy financial situation, we will enter a stage of high-quality development together with the industry and start the next new milestone worth looking forward to.
The content on this website (including but not limited to text, pictures, audio and video), except for reprinting, is the copyright of Times Online, and it is prohibited to reprint, link, repost or use in other ways without the authorization of a written agreement. Anyone who violates the above statement will be held accountable by this website. If other media, websites or individuals reproduce and use, please contact Mr. Ding of this website: [email protected]