Home » Point of View | Multi-channel empowerment Longfor said it is confident to achieve the goal of 310 billion (Record)_Real Estate

Point of View | Multi-channel empowerment Longfor said it is confident to achieve the goal of 310 billion (Record)_Real Estate

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Original Title: Direct Viewpoint | Multi-channel Empowerment Longfor said it is confident to achieve the goal of 310 billion (record)

Viewpoint Real Estate Network“Heaven is healthy, the gentleman strives for self-improvement; the terrain is great, the gentleman carries his virtues.” The theme of the Longfor 2021 interim results meeting was set as “strengthening and ambition.”

And this attitude of striving for progress and perseverance not only expresses the historical process of Longfor over the past two decades, but also echoes Wu Yajun’s vision for the next ten or twenty years.

On August 25th, Longfor Group held an interim results conference via live webcast. The “iron triangle” composed of Chairman Wu Yajun, CEO Shao Mingxiao and CFO Zhao Yi attended the conference. Chen Xuping, Group Vice President and General Manager of Real Estate Waterway Also attended the meeting to communicate with participants.

The data shows that in the first half of the year, the company achieved a turnover of 60.62 billion yuan, an increase of 18.5% over the same period last year; the net profit attributable to shareholders was 7.42 billion yuan, and the core net profit was 6.18 billion yuan after deducting minority shareholders’ equity and evaluating the value-added effects. Yuan, a year-on-year increase of 17.1%.

During the period, Longfor achieved a gross profit of 16.78 billion yuan, a year-on-year increase of 6.5%; gross profit margin was 27.7%. The core after-tax profit rate was 13.6%, and the core equity profit rate was 10.2%.

At the same time, since the beginning of this year, Longfor announced the establishment of a real estate channel, adding four new marketing theaters, namely the North China Theater, the South China Theater, the East China Theater, and the Central China Theater. The company’s organizational structure has become clearer.

Longfor’s management was fairly satisfied with the results in the first half of the year. At the performance meeting, the company mentioned that Longfor’s today’s performance comes from its adherence to strategy, always keeping the bottom line in mind, being in awe, guarantees and opportunities coexist, and being stable. Is the best step forward.

Past reports show that in 2021, Longfor has set a sales target of 310 billion yuan, a year-on-year increase of about 15%.

Regarding this goal, Shao Mingxiao mentioned, “The company’s overall salesable value for the year is 470 billion, and the overall sales rate has reached 66%. In the next few months, our overall layout and preparations are still very sufficient, with a goal of 310 billion yuan. There is no problem, and we are very confident.”

The data shows that in the first half of 2021, Longfor Group achieved contracted sales of 142.63 billion yuan, a year-on-year increase of 28.4%, contracted sales area of ​​8.26 million square meters, and the payment collection rate continued to remain above 90%.

In the first seven months, the company achieved contracted sales of RMB 161.65 billion, a year-on-year increase of 22.4%, and completed 52.15% of the 310 billion sales target.

“Longhu has always insisted on quality growth and the signing of the payment.” According to Zhao Yi, as of the end of June 2021, the company has sold but unsettled contract sales of 375.3 billion yuan, covering an area of ​​22 million square meters.

For Longfor, the real estate development business is currently the main source of income contribution. In the first half of 2021, the company achieved a turnover of 60.62 billion yuan, an increase of 18.5% over the same period of the previous year. Among them, the property development turnover was 51.84 billion yuan, accounting for 85.52%.

In this view, the real estate business is still its main source of income contribution, and the company’s management is full of expectations for this business.

It is worth noting that on July 8, Longfor Group issued an internal announcement announcing the establishment of a real estate channel. The group headquarters was renamed the group empowerment platform, and the strategic research department, brand department, digital technology department, etc. were established.

Subsequently, in August, Longhu Real Estate Waterway added four new marketing theaters, namely the North China Theater, the South China Theater, the East China Theater, and the Central China Theater.

“We have listed the real estate development channel separately. At the same time, we not only do residential buildings, but also our other channels, including commercial, crown apartments, and asset-related businesses. All land acquisitions, including construction, are basically equipped with platform functions. In the real estate fairway.”

Land is the cornerstone of real estate enterprises. In the first half of the year, Longfor still maintained a steady pace of land acquisition.

During the period, Longfor acquired a total construction area of ​​12.92 million square meters of land reserves, an equity area of ​​7.23 million square meters, and an average equity acquisition cost of RMB 5,382 per square meter.

“In the first half of the year, the overall pace was relatively stable and did not catch up. Therefore, the overall land cost is relatively controllable. In the second half of the year, strive to seize the opportunity of the second and third “two episodes”.”

As of the end of the reporting period, Longfor’s land reserves totaled 77.17 million square meters and the equity area was 53.67 million square meters. Analysed by region, the contracted amounts of the Yangtze River Delta, Bohai Rim, Western, Southern China and Central China accounted for 27.6% of the total group, respectively. 24.3%, 22.7%, 15.2% and 10.2%.

The data shows that at the end of the reporting period, the average financing cost of Longfor Group was 4.21%, a new low. In terms of liabilities, the company’s debt-to-asset ratio after excluding advance receipts is 68%, net debt ratio is 46%, cash in hand at the end of the period is 99.47 billion yuan, a year-on-year increase of 28%, total interest-bearing debt is 191.8 billion yuan, and the cash short-term debt ratio is 5.48 times. After excluding the pre-sale regulatory funds, the cash short-term debt ratio is close to 4 times, and it is still firmly in the green position of the “three red lines”.

Regarding the financing strategy in the second half of the year, Zhao Yi mentioned that he will constantly look for iterative replacement of the company’s financing products, and make the company’s debt structure better, so that the company’s account period will be longer and the cost will be lower.

Multi-channel empowerment

In 2018, Longfor Group put forward the “space as a service” strategy for the first time. Since then, the company has gradually built more future-oriented capabilities. In early 2021, Longfor officially announced the new brand “Gan Goose”, adding housing rental and sales and housing decoration as the group’s new main channel business.

Up to now, Longfor’s main channel business has been further iterated into six sectors: C1 real estate development, C2 commercial operation, C3 rental housing, C4 smart service, C5 housing rental and sale, and C6 housing decoration.

Shao Mingxiao mentioned that the company cultivates multiple typical businesses and develops multiple channels not only to avoid risks, but more importantly, to seize opportunities.

In fact, as the real estate industry enters the era of stocks, the traditional golden age of “one production, one sales, one profit” has long ceased to exist. In the era of strong competition and high supply, stock properties, commercial services, and leasing must be revitalized and operated. Services, property services, etc. have become the next huge outlet.

Longfor has already made relevant arrangements. Judging from the situation in the first half of the year, Longfor achieved 4.78 billion yuan in rental income from its property investment business, a year-on-year increase of 42.4%. Shopping malls, rental housing, and other income accounted for 76.6%, 22.3% and 1.1% respectively.

Among them, in terms of commercial operations, the impact of the epidemic in the first half of the year has gradually subsided. With the momentum of the nation’s business recovery, Longfor Commercial has made rapid progress and continued to open 5 new streets in Beijing, Suzhou, Changsha, Wuhan, and Chengdu. The occupancy rate is Both are close to 100%. In the second half of the year, another 7 shopping malls will open one after another. Next year, 17 shopping malls are expected to appear in high-energy cities.

Up to now, Longfor has more than 110 businesses and 54 projects have opened, covering 13 cities.

“In the next few years, we will open more than 10 steadily every year, focusing on the layout of mainstream traffic nodes in first- and second-tier cities.”

In addition to commerce, Longfor’s rental housing business is also picking up. In the first half of the year, “Guan Yu” has deployed more than 30 high-level cities, with 94,000 rooms opened, rental income of 1.07 billion yuan, and occupancy rate at the end of the period. Up to 94.1%.

In addition, the new media of Viewpoint Real Estate learned that at the beginning of this year, Longfor Smart Services has begun a relatively large-scale merger and acquisition. In March, Longfor Smart Services acquired 100% equity of Yida Services for 1.273 billion yuan.

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According to data, Yida Services is the largest and most influential property service company in Northeast China. Its products cover residential, commercial, high-speed rail stations, universities and other types of businesses, and it has accumulated rich operating experience in industrial parks and public construction.

Up to now, the actual management area of ​​Longfor Smart Services has exceeded 200 million square meters. It is estimated that the actual management area will exceed 270 million square meters throughout the year and the contracted area will exceed 500 million square meters. According to the management, C4 business development will grow by more than 30% every year, part of which is the organic growth of the business under its management, and part of it through extensional mergers and acquisitions.

“But mergers and acquisitions are not for scale. The first criterion is that we hope that the city will highly overlap with us. Second, it is hoped that the quality of users, including the possibility of future value-added services, is relatively large.”

In addition to real estate, commerce, apartments, real estate, etc., Longfor this year added two main channel businesses, C5 housing rental and sales, and C6 housing decoration. The profits bring new endogenous power.

“The gross profit margin of the C1 channel in the future is expected to be between 20-25%. We hope to empower through other channels, including commercial and property. Through its contribution, the overall combination will be 25-30%. This is the future gross profit margin of Longfor normal.”

Data show that in the first half of the year, Longfor achieved a gross profit of 16.78 billion yuan, a year-on-year increase of 6.5%; gross profit margin was 27.7%. The core after-tax profit rate was 13.6%, and the core equity profit rate was 10.2%.

The following is the live record of Longfor Group’s 2021 interim results conference:

On-site questioning: This year, the regulator’s regulation on the real estate industry has been fully tightened. How does Longfor see the future development of the industry and changes in the corporate structure? How to judge the current and future real estate market?

Shao Mingxiao:Under the basic tone of the housing policy, the past year can be said to be the first year of the long-term real estate mechanism. A lot of policies have been intensively introduced: The first is the three red lines, whether it is the asset-liability ratio, the net debt ratio, and the shortfall in cash. The requirement for debt ratio is still the upper limit of 40% of the amount of land acquired in sales, and the auxiliary indicator that the net cash flow is positive; second, the double concentration that has occurred this year, the centralized land supply policy in 22 cities; also includes The management of second-hand housing and the governance of practitioners’ behavioral norms, etc., a series of policies revolve around the systematic establishment of major policies and long-term mechanisms for housing housing and non-speculation, which have a profound impact on the industry and are conducive to the healthy and orderly development of the industry.

For Longfor itself, we have been guiding our behavior in accordance with such rules five years ago, including in 2017, we obtained investment grade ratings from three overseas rating agencies including Moody’s, Standard & Poor’s and Fitch. ; In the past five years, there have been three red lines and green files, but these did not start today.

Including that we have been providing customers with high-quality products and services in the cities covered; we established the strategy of commerce as a company in 2011, and today Longfor has reached 110 in Shoutian Street, and will open close to 60 by the end of this year; We started to do rental housing in 2017. At present, Guanyu has become the top three in the industry. It is very positive in terms of reputation, scale, and profitability, and has become a brand that young people are very yearning for. For Longfor, we proactively follow national policies to create value for users, employees, society, and shareholders. We have been practicing in this regard.

Speaking of the future of the industry, we are happy to see and fully support and fully support the government’s guidance and regulations on this industry. We believe that after two or three years, by 2024, practitioners in the entire industry will be more self-disciplined and financially more stable. Able to provide customers with better products and services, so we are still full of confidence in this industry. Longfor will also provide our users with better products and services in accordance with its own principles and rhythm.

On-site questioning: The amount of land purchased by key real estate companies is included in the supervision, and the land-to-sales ratio is required to not exceed 40%. What is Longfor’s index in this respect, and what is Longfor’s land acquisition strategy in the second half of the year?

Zhao Yi:In the first half of the year, we still grasped the pace relatively stably and did not catch up, so our overall land cost is relatively controllable. At the same time, we have also set aside some funds for the second half of the year, in accordance with the requirements of the three red lines and the requirements of the net debt ratio, to capture high-quality investment opportunities on the basis of maintaining the company’s health.

On-site question: In July, Longfor established a new real estate channel, and then added four major marketing battlefields. What are the considerations for this adjustment? After the organizational change, will the sales ranking still strive to return to the first echelon? In what aspects will the real estate channel achieve higher development quality in the future?

Shao Mingxiao:Everyone knows that Longfor’s current business is not limited to the development of new houses, it is the so-called real estate channel. It also includes commercial operations, rental housing, and smart services. In addition, we have also opened two new channels, one is the rental service around the community, and the hardcover business. Our business fence is constantly expanding, and our user fence is also It is constantly widening.

In order to make all waterways more refined management, better serve users, and do a good job of products and services, under the proposal of the board of directors and chairman of the board, we decided to use the C1 channel as a separate channel and put it in the entire large business system. . And we also selected Chen Xuping as the vice president of the group and the general manager of C1 Channel within the entire group. Xuping was an official student in Longhu in 2008. He came from the Civil Engineering Department of Tsinghua University. After graduation, he joined the Chengdu company. He started as a first-line engineer of the project. At the same time, he also worked as the general manager of the investment company, and served as the general manager of the Chengdu company in 2016. From 2016 to now, the entire Chengdu company, whether it is our residential development or TOD-based commercial development, rental housing, smart services and other main channels, as well as dim sum businesses such as elderly care, have achieved outstanding results. The forefront of the group.

In addition, Xuping is also an executive with a very comprehensive knowledge structure, very hardworking, and strong leadership. He is very young. He was born in 1982. He is a very rare for Longhu. We have cultivated young executives from the system. So he takes the lead in the C1 channel, and we look forward to it very much. In the future, we hope that the business of C1 Channel, whether it is from the product positioning on the user side, to the acquisition of land, to the positioning of operations, the speed of turnover, the speed of delivery, and the quality of service after delivery, can further increase the granularity and fineness. promote.

In addition, I hope that facing the future, more innovations will come from business systems. At the same time, C1 is not only for residential buildings, but also for our other waterways, including commerce, crown apartments, and assets-related businesses. All land acquisitions, including the construction of these platform functions, are basically placed in the real estate waterway, from Xuping. As the leader, I also believe that under his leadership, better results will be achieved in the future.

Chen Xuping:After the independence of the C1 channel, as the main contribution to the cash flow and profit of the entire group, we will continue to adhere to our investment scale and adhere to the signing of quality growth and payment. We will also continue to build high-quality spaces around other channels, including our own customers. Finally, we will also cultivate more and better talents for other channels. The entire channel will definitely continue to adhere to the performance of the group’s strategy.

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On-site questioning: According to the annual sales target of 310 billion yuan, there are still close to half of the tasks to be completed in the end. However, in the second half of the year, the epidemic repeated and the policy increased, and some areas were greatly affected. How did Longfor arrange the tasks for the last half of the year? Is there pressure on sales throughout the year?

Shao Mingxiao:Everyone knows that as of the end of July, we have completed sales of 161.65 billion, which is an increase of 20% compared with last year. However, in terms of the goal for the whole year, we are the target of 310 billion, and we are very confident now. Our overall saleable value for the whole year is 470 billion. In the next few months, our overall layout and preparations are still very sufficient, and we are very confident to complete the 310 billion target.

On-site questioning: In the first half of the year, Longfor disclosed the first independent sustainability report. Last year, the Longfor Charity Foundation and volunteer organization were formally established. What specific measures does the company have in terms of charity practice?

Shao Mingxiao:In this regard, we have done a systematic layout. In terms of corporate governance, we have adhered to it for 3 to 5 years. All systemic risks, technical risks, and contingency have been systematically laid out and controlled. In terms of corporate governance, it is also very stable and clear. Longfor is a real team of professional managers, very professional and very efficient, and the company governance is also very clear. Longfor will make it clearer, including the continuous cultivation of attracting young people to enter middle and senior management.

The second is low-carbon green, which is part of Longhu genes. Especially the young colleagues in the frontline, they are very interested in this in the original knowledge structure. Longfor itself has a relatively high intensity of innovation in the front line, and the atmosphere is also very good. So far, we have done more than 80 million square meters of green construction. Mi, continue to do this.

The third point is to treat employees kindly. We have a saying, “Be kind to your life”. In addition to users, we are more to internal colleagues. The core is to be in a healthy and positive corporate atmosphere. Through continuous creation Opportunity to train young people to grow continuously.

Everyone knows our official career plan. Our officials and students will be able to manage a project in about two or three years. They will reach the middle level in 3-5 years, or even in 6-8 years, they may become senior executives in 10 years. This is very smooth in our system. of. Including that we also attract some outstanding talents in the industry and even across industries, who can survive and develop steadily after joining the company. Treating employees well has always been our principle.

Another one is to be kind to society. We have always been talking about the principle of fellow travellers, and we have been very friendly to suppliers, including support, training, payment, and co-creation and empowerment for suppliers. We have been doing this for so many years. In August 2020, we established the Longfor Charity Foundation, which mainly revolves around helping schools and teaching, helping the elderly and poverty alleviation, as well as anti-epidemic and disaster relief.

As you all know, we donated more than 1.7 million materials in Wuhan last year. Not just donating money. In fact, some of our colleagues in Wuhan bought some materials from overseas and shipped them to Wuhan on January 28 last year. A batch of materials were cleared, and our Wuhan team sent them directly to the local hospital one by one, which was affirmed by the local people, hospitals and relevant government departments.

Including the heavy rain disaster in Zhengzhou this year, Longfor took the lead in launching donations in the real estate industry. At the same time, our colleagues from the Zhengzhou company directly contacted the Wuhan company to purchase a lot of relief supplies, which were transported from Wuhan to Zhengzhou, and they were also affirmed by the people. In terms of disaster relief, everyone has always had a very clear plan in their hearts.

Of course, there is another, that is, many of our volunteer teams have also been established one after another under the guidance of the Longfor Charity Foundation.

Since our entire business fence involves labor-intensive industries, we have a very important plan for the next step. The company, including the founder, the chairman, and the senior management of Longfor, will provide some support to the employees for everyone. Do some work within your capacity in terms of common prosperity.

Wu Yajun:Thank you everyone. Since its establishment, Longfor has always maintained a passion for technology, including new processes, construction methods, and continuous R&D and investment in green buildings. From its establishment to the present, it has done a lot of patents, technical inventions and software copyrights. At present, we have about 200 patents and five technology companies that have done a lot of work that is conducive to environmental development.

As you all know, the world’s largest ultra-low-energy residential project reported in the focus interview two days ago was built by Longfor. The focus interview gave an introduction to the Gaobeidian New Train City project. It can combine heating in winter, air conditioning in summer and anti-smog, reducing energy consumption and carbon emissions by more than 50%, and heating costs to one-third. For residents, we are very happy to be able to achieve such an effect without affecting or even improving comfort, and we will vigorously promote it in future buildings.

In fact, we have done a lot of practical and experimental work for the technology of rainwater reuse and reclaimed water reuse in the southwest region a dozen or twenty years ago, including participating in the preparation of national regulations. , Longhu has always had a group of teams. Some outstanding talents from our school recruits every year, and we have been continuously doing research and development. This is a very important contribution for us to be environmentally friendly and socially friendly.

The second is in the area of ​​public welfare and social responsibility. Longfor has always taken social responsibility as part of its work. Everyone knows that Longfor is a company famous for its gardens and landscapes. You don’t know that many technologies are developed by Longfor. In the southwest, including Beijing, the technology of transplanting whole trees and keeping trees alive is practiced by Longfor. We have passed the ISO9000 and ISO14000 assessments as early as the 90s. At present, we have to pay more in this area.

We have been doing charity work. From the earliest days when the company was established, we sponsored children of laid-off workers to get admitted to college. Now we are also funding poor college students, primary and middle school students, including the disabled, and helping rural disabled people build houses. Help them do some industrial guidance and poverty alleviation, such as selling their special agricultural products in our Tianjie. This is what we can do.

Personally, I have always been interested in technology and child rescue in the past, so I have made some donations. Like my alma mater, Northwestern Polytechnical University, I donated 200 million to reward poor students and outstanding students, as well as funding for young teachers, retired teachers, and outstanding teachers. Including the Future Science Award and West Lake University, we also give funding.

In the face of the call of the times, I feel that we have not done enough, and we must increase our pace and intensity. We have been practicing in the past, but we still have to do it in the future and do better.

Shao Mingxiao:In addition, this year we will recruit 1,200-1,500 official students (graduate students) and nearly 10,000 undergraduate students. We will continue to increase the recruitment of young students. In addition, we also have a mutual assistance program for employees. Mr. Zhao will introduce it.

Zhao Yi:In the future, we will launch a mutual assistance program for employees, called the “Great Same Origin” program, the world is one and the same source. We will cover nearly 50,000 employees, plus their spouses and children. The source of this mutual aid plan is mainly donations from the founders, shareholders and senior management. Deduct a small amount of expenses from his salary to make such a plan that is very effective for their family protection. Basically, some medical visits at home, and even major illnesses and disasters can be covered. We are very determined to do this well, help employees get out of their difficulties, and solve their worries. We will continue to do this.

On-site questioning: In the middle of this year, the industry’s overall gross profit and core net profit margin decline has further appeared, and Longfor’s gross profit margin has also declined. What caused this? How does the company predict the future trend of industry profit margins?

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Zhao Yi:I think this should be a trend. Under the general price limit environment, the industry’s gross profit margin has returned to a reasonable range. Last year, Longfor was 20%-30%, which is also a reasonable range. Maintaining a gross profit margin of 20-25% in the future may be the trend of the entire industry.

This will instead enable the industry to develop more steadily and sustainably. Under the background of controllable housing prices and reasonable land prices, do a good job of products and services, and systematically reduce the cyclical and systemic risks of the industry. On this basis, the industry will obtain a better and more sustainable development.

On-site questioning: Longfor has established two new waterways this year. Does the multi-channels intend to diversify risks? What are the goals for the development of operational business?

Shao Mingxiao:The function of risk diversification is there, and more importantly, it is to focus on opportunities. The business fence of our C4 Smart Service is relatively wide, and the contracted management area will exceed 500 million square meters throughout the year, and the scale is still relatively large. Users have such demands, so we provide rental and sales services (gannet rental and sales) around customers, as well as productized services.

Our C3 is also, from 2017 to now, in the first year or two, we are actually polishing our business to be more efficient and more quality.

Another is smart decoration. Based on the B2C business of the supply chain, we have our own factories, but they are not traditional factories but smart ones. We seize the needs and services of users, including personalized services, and promote this product and service through supply chain capabilities. The starting point is to solve social pain points. Because we see that our customers, especially young customers, hardcover is both a rigid demand and a pain point for them. We have done something in response to this. The two channels are like this.

On the whole, Longfor focuses on space, not diversification, but a grand strategy of space as a service, and strives to do better based on our user fences, user pools, and product and service supply capabilities.

Wu Yajun:I especially add about the wisdom decoration channel. This channel is based on the needs of customers, as Mr. Shao said. But we started from the source of the materials. Everyone knows the reason. Everyone is very afraid of decoration because of the presence of formaldehyde and other harmful substances.

We are a responsible company, and we are afraid that the use of unqualified materials will affect our overall decoration effect. So we started with the manufacturing of materials. In Anhui, we have our own production plant, and all the plates are our own patents and research and development. We cooperate with enterprises in Guangdong to ensure that the bulk of the main materials are green and environmentally friendly, with very little material consumption, and reducing carbon emissions.

Including why some of our gannets rented and sold stores are mainly close to the community. The reason is to serve customers well nearby. This is also a low-carbon consumption action, so we are also working closely around this direction that is beneficial to society and the environment. this matter.

In particular, I would like to introduce to you our C6 business of house decoration. Our current crown apartments are all assembled crafts provided by C6, which can be installed and live, and the decoration time is shortened. The decoration can be completed in 90-100 days. Compared with the traditional craftsmanship, we install one A house can basically be completed within 72 hours, which is a leader in the industry at this point.

On-site questioning: In the first half of the year, including commercial, Guanyu and other channels, all proposed light asset strategies. What is the original intention of the company’s light asset expansion? Is there any case to share?

Wu Yajun:The capacity output of rental housing and the capacity output of C2 business is an asset-light project, but it is not a deliberate effort for us, but a natural copy.

We have about five asset-light projects in hand, and we will open the first one in Wuhan in the second half of the year. Now there are many inefficient and idle assets in the market. Through our ability to export operations, we can also revitalize these assets, and we can also get some value-added benefits here.

On-site questioning: Longfor has always been in the leasing field. Some time ago, the General Office of the State Council issued an opinion on accelerating the development of affordable rental housing, stating that it will speed up the improvement of public rental housing, affordable rental housing and common property housing as the main housing Security System. How does Longfor understand this policy and what measures will it take at the same time?

Shao Mingxiao:The keynote is still around the simultaneous implementation of rent and purchase, and multiple channels to solve the housing problem, especially in some large cities and central cities. Therefore, in 2016, we saw this pain point. We saw that in some central cities, young people, including students who just graduated from university, needed some residential services before buying a house, so we decided to start this business firmly.

In the first half of this year, Crown Apartments opened 94,000 rooms, with revenue of 1.07 billion in the first half of this year, and revenue of more than 2.5 billion in the whole year. It will be profitable from this year. This business should be said to be more in response to the policy of simultaneous rental and purchase and the improvement of the housing security system. At the same time, we have also participated in the compilation of the national standard “Rental Housing Construction and Operation Standards”, which is also an affirmation of our Longfor’s rental housing.

In fact, from the perspective of our business practice, in many cities such as Hefei, the industrial layout in the Yangtze River Delta, including the whole country, is very leading in recent years. There are about hundreds of thousands of engineers and university graduates who settle here every year. Guan Yu still has a very good reputation in the local area. We do not only provide living space, but also a space for young people to have more beautiful experience in life. Through better community operation, we provide a large number of humanized and personalized services, and the user experience is also very good. In addition, our entire Guanyu has taken all the online technology from the beginning. Whether it is toC or toB, it is not a traditional business of providing residential products, and the ratio of people to rooms is very high.

We also use a lot of IoT technologies, including public areas, door locks, etc., whether it is from word-of-mouth, brand, young people’s preference, including our own business indicators and financial indicators in the next step, we are all developing towards a good side. .

What’s more gratifying is that now there are some supporting policies, whether it is taxation or some subsidies. We still have to do this business very firmly, and strive to achieve 30% growth every year.

On-site questioning: Since the beginning of this year, Longfor Smart Services has also made some acquisitions. Will it consider acquiring a property company in the future? What are the selection criteria for the label?

Shao Mingxiao:Of course, we will definitely continue to intensify acquisitions. I also shared just now that the growth rate of smart services is still relatively fast compared to last year. From the point of view of the selected target, the acquisition is not entirely for acquisition. We must see that it can match the overall layout of the company and the needs of our users, and can match our culture, values, and quality requirements. of. So we definitely do not scale for scale.

In the first half of the year, we acquired several high-quality products, such as Yida Services in Northeast China, Kailin Business Services in Zhengzhou, and Hong Kong-owned property companies such as New World. They may sell the properties for their own cash or income considerations. More importantly, they also consider the bargaining power of users if the newly developed houses are handed over to Longfor in the future, so Longfor has an advantage.

Therefore, in general, we will maintain a certain speed. The development of C4 business will grow by more than 30% every year. Some of the growth will be through extensional mergers and acquisitions. However, we are still very sophisticated in mergers and acquisitions. Quality depends on our conversion and the quality of users, not simply from the perspective of scale, thank you!Return to Sohu to see more

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