Aoyuan materials in the first and second tier cities are under pressure

Ma Jun, president of Aoyuan (03883), said that the current property market regulation policy continues, and the market is likely to deteriorate or differentiate in the second half of the year. Therefore, it is not intended to raise sales targets. However, it is believed that the market should continue to perform in the first half of the year. Continue to increase, the growth rate slows down year by year, property prices are under downward pressure in China’s first- and second-tier cities, and third- and fourth-tier cities will still rise.

Sales up to 63% unintentionally raised

Aoyuan announced earlier that the core net profit of the first half of the year was 1.392 billion yuan (RMB. The same below), an increase of 67.3% year-on-year. The contract sales during the period was 40.291 billion yuan, and the first seven months totaled 46.31 billion yuan, a 1.4-fold increase. The annual sales target was 63.4% of the 73 billion yuan.

The company’s land purchase budget this year is 35 billion to 36 billion yuan. In the first half of the year, 31 new plots of land were purchased, involving 7.27 million square meters of floor space. The total floor space of the land reserve was expanded to 31.01 million square meters. The value of goods was about 327.5 billion yuan, enough for the future. 3 to 4 years of development. Guo Yining, vice chairman and chief executive officer, pointed out that the budget for land purchases has not changed throughout the year and will pay attention to market changes in the third and fourth quarters.

Chen Jiayang, vice president and director of corporate finance and investor relations, revealed that the land purchase expenditure in the first half of the year was 12.6 billion yuan, and the amount payable was 5.3 billion yuan, maintaining the land price of 40% to 50% of the annual sales.

The Banking Regulatory Bureau suspended the reporting of new real estate trust projects in Shanghai, Jiangsu, Fujian and other places. Aoyuan Chairman Guo Yuwen said that the trust accounted for at least 6% of the company’s debt financing, and the proportion of domestic and overseas financing channels was smooth. The financing cost is still ideal.

Aoyuan acquired a 12-storey industrial building in Kwai Chung for HK$950 million in June. Chen Jiayang pointed out that the revitalization project has a value of HK$1.4 billion and plans to sell it in the second half of the year, with a target sales of HK$900 million and sales of the remaining 5 next year. HK$100 million, the project is expected to be completed and delivered next year. Due to the acquisition of Hang Seng Bank financing and structured financing, the financing rate is less than 3%, and the company only invested more than 100 million Hong Kong dollars. Aoyuan’s core business is still in the Mainland. Overseas sales accounted for 4% to 5% of the year. The overseas market is mainly engaged in the development of existing projects and no intention to make new investments. In addition, the company is in the process of splitting the property management business.