New world development emphasizes cash is king

category:Finance
 New world development emphasizes cash is king


Ahead of the holiday, New World Development announced the results of the previous fiscal year.

New world developments performance for the fiscal year 2019 / 2020 released on September 30 shows that during the period, revenue reached HK $59.007 billion, a year-on-year decrease of 23.13%; and gross profit of HK $19.931 billion, a year-on-year decrease of 20%. During the period, the profit was HK $3.266 billion and the net profit attributable to shareholders was HK $1.096 billion, a sharp decrease of 93.96% over the same period of last year.

According to the financial report released, the performance of this old brand Hong Kong funded real estate enterprise will inevitably decline under the multiple influences of social events, epidemic spread and international trade disputes in the past year.

In terms of property sales, the overall property contract sales area in the mainland is about 800000 square meters, the total sales amount is 18.18 billion yuan, and the average sales price is 38000 yuan / square meter, which is significantly higher than the average price of 311500 yuan / square meter in the mainland last year. Affected by the epidemic situation in the first half of the year, the sales volume of projects in the mainland this year dropped slightly by 8% compared with that of last year, and failed to achieve the original planned sales target of 20 billion yuan.

In terms of distribution, Dawan District, which is a heavy warehouse in the new world, is the main force contributing to the sales. The sales volume in the southern region, including Dawan District, accounts for more than 60%, that of the northeast region accounts for 16%, and that of the central region accounts for 14%. At the same time, the gross profit of property development in Dawan District reached 70%.

In Hong Kong, the groups share of property contract sales in Hong Kong during the year was HK $13.162 billion, up 25.35% over the same period last year. The groups property development revenue in Hong Kong in the fiscal year, including cooperative development projects, was HK $4.542 billion, with segment performance of HK $2.592 billion.

Compared with the changes in performance, new worlds disposal of a number of assets in this financial year is more eye-catching. As a matter of fact, the performance of the Hong Kong market has been widely concerned by the market this year. As a result of social events last year, the spread of this years epidemic in Hong Kong has had a serious impact on Hong Kongs tourism, business, employment and other economic aspects. As one of Hong Kongs traditional four big families, the new worlds handling measures are even more remarkable.

According to the financial report, during the financial year, new world sold the proceeds of the second phase shopping mall of Delphi Plaza in Jiulong Bay, the income right of popcorn2 shopping mall in Tseung Kwan O for HK $3 billion, the new world new world project of Changsha new city for RMB 2.4 billion, and the shares of Beijing Capital International Airport, 60% equity of new world first round Service Co., Ltd., Happy Valley service type residential building, and shanghuanxin A number of property companies in decenter have 45% equity interests and sold assets worth 10.4 billion yuan in total.

Earlier, Zheng Zhigang, the third-generation leader of new world development and executive vice chairman and chief executive of new world group, once said that the current sale is mainly for the purchase of non core assets with a relatively small proportion of shares many years ago, mainly for the optimization of asset allocation. At the online performance meeting on September 30, Zheng Zhigang disclosed that there were about HK $10.6 billion in non core asset sales in fiscal year 2020, and asset disposal will continue in 2021, with a target of about HK $13 billion-15 billion.

At a time when the general environment is full of uncertainty, Zheng Zhigang said that cash is king in the adverse situation, emphasizing the importance of cash flow again, and he was very confident in selling non core assets, and the cash flow collected would be used to invest in better assets.

With regard to the mainland property sales plan for next year, the new world is still conservative and stable at the scale of 20 billion yuan. However, Zheng Zhigang said that it will maintain a double-digit compound growth rate in the next two or three years. He hopes to maintain a target sales volume of more than 20 billion yuan from 2021 to 2023: in the current environment of low interest rates, the prices of small and medium-sized properties will remain stable, and the medium and high-end properties will have a 5% increase, right In the future, the property market will remain cautious and optimistic.

For the mainland market, new world development has continued to increase its investment in Dawan district and Yangtze River Delta in recent years. In September last year and June this year, the new world won the old land of Tagang village, Yongning Street, Zengcheng, Guangzhou, and the old renovation project of Wenjin ferry in Luohu, Shenzhen, with a total construction area of more than 1.32 million square meters.

At the end of July last year, it won the king of commercial and residential land in Hangzhou with 9.8 billion yuan, becoming the land king of the whole country at that time. It has also become a rare case of Hong Kong funded real estate enterprises taking the land king at a high price in the mainland in recent years.

As the new generation leader of the new world, Zheng Zhigang attaches great importance to his own K11 project, which is different from the traditional New World Department stores, and the increment of new art commercial formats is also accelerating. Since the opening of k11musea in Tsim Sha Tsui, Kowloon, Hong Kong last year, it has been highly praised by the market. According to the financial report, under the influence of social events and epidemic situation, the monthly average passenger flow of k11musea cultural shopping and Art Museum still exceeded 1.4 million, and the passenger flow rebounded by 12% in the second quarter of this year. K11, located in Wuhan, is expected to open in phases at the end of this year and will become the second shopping center project in Wuhan.

It is worth noting that in August this year, new world won 130000 square meters of core commercial land in Huaihai Middle Road, Huangpu, Shanghai with 4.1 billion yuan, which is close to the first project of K11 in the mainland. It can be seen that new world has great confidence in the retail and residential markets in the mainland.

In Hong Kong, the traditional business main battlefield, Zheng Zhigang said that he still had confidence in the Hong Kong market and had deep feelings: Hong Kong will recover soon after the economic pain, and will go further. We will continue to invest in Hong Kong. As far as the mainland market is concerned, retail sales have recovered greatly. Therefore, the economic challenges and pressures in property investment may not be as bad as expected.

At the same time, he said that the epidemic has fundamentally changed the global operation mode. We call this repeated situation W-type epidemic situation: the group will not wait here, we will seize the miracle of the epidemic situation, others fear that we will forge ahead, attack the new economy after the epidemic, combine the real economy and virtual economy, connect the online and offline, and make new breakthroughs in different businesses after the epidemic.

Source: interface news Author: Sun Meixin editor: Wang Xiaowu_ NF