On January 13, Jiayuan International Holdings (HK:02768) released its 2020 sales briefing, stating that in December 2020, the group’s contracted sales amount was 3.503 billion yuan, the same year-on-year; the contracted sales area was about 297,900 square meters, an increase of 18 year-on-year. %.
As of the end of December 2020 (that is, the full year of 2020), Jiayuan International Holdings’ contracted sales amount was 30.828 billion yuan, up 7% year-on-year; contracted sales area was 2,743,400 square meters, up 12% year-on-year. Beduo Finance found that it has not completed its 2020 sales target.
Previously, on March 10, 2020, Zhang Yi, the vice chairman, president and executive director of Jiayuan International Holdings, announced that its 2020 sales target is 36 billion yuan. “The benchmark has a growth rate of 7 billion this year. In view of our current situation, we Have confidence and ability to achieve this goal."
The management of Jiayuan International Holdings believes that objectively speaking, the epidemic does have a certain impact on the real estate industry, but the impact is very limited and short-lived. With the easing and elimination of the epidemic, the suppression of the real estate industry will usher in release. The company continues to be optimistic and optimistic about the market and the future.
It is understood that Crane once commented in a report, “In 2020, the overall performance of real estate companies is not very satisfactory. The number of real estate companies with a target completion rate of over 110% is less than in 2019, and the target completion rate is 90%. The number of real estate companies between -100% has also increased."
In addition to Jiayuan International Holdings, real estate companies that have not completed their 2020 sales targets include Zhongnan Construction (SZ:000961), R&F Properties (HK:02777), Sino-Ocean Group (HK:03377), CCRE Properties (HK:00832), Beijing Capital Land (HK:02868), Country Garden (HK:02007), etc.
In terms of performance, Jiayuan International Holdings’ previously announced 2020 interim report showed that its revenue for the first half of 2020 was 8.559 billion yuan, an increase of 27% from 6.73 billion yuan in the same period in 2019; net profit was 1.462 billion yuan, compared with the same period in 2019. 1.384 billion yuan increased by 6%.
As of the end of the first half of 2020, Jiayuan International Holdings' net gearing ratio was 78%; financing costs were 154 million yuan, an increase of 102% from 76 million yuan in the same period in 2019. Jiayuan International Holdings stated that the increase in financing costs was mainly due to the increase in issued senior notes in the second half of 2019.
The financial report also shows that Jiayuan International Holdings has set a sales target of 36 billion yuan in 2020. Among them, 32.42% of the annual target will be completed in the first half of 2020. Shen Tianqing (Shen Yuxing), chairman of the board of Jiayuan International Holdings, said that in the second half of the year, he will focus on promoting the launch of new land reserves and is confident in the achievement of the annual sales target.
But in the end, Jiayuan International Holdings only completed 85.63% of its 2020 sales target.
According to Beduo Finance, Jiayuan International Holdings will also spin-off its property company Jiayuan Services (HK:01153) to be listed on the Hong Kong Stock Exchange in 2020. The issue price is HK$3.86. It intends to issue 150 million shares. The net amount is approximately HK$518 million.
However, on the first day of IPO, Jiayuan Service fell below the issue price. As of the close of Hong Kong stocks on January 13, 2021, Jiayuan Services closed at HK$3.99, a slight increase of 4.37% from its issue price. Based on the closing price, the total market value of Jiayuan Services is HK$2.441 billion.
According to the prospectus of Jiayuan Services, Jiayuan International Holdings held 100% of Jiayuan Services before the IPO and 75% after the IPO. The prospectus also shows that most of the property management service contracts of Jiayuan Services come from properties developed by Jiayuan Real Estate under Jiayuan International Holdings.
In 2017, 2018, 2019 and the first half of 2020, Jiayuan Real Estate contributed approximately 96.3%, 90.8%, 79.4%, and 70.1% of its total property management service income, respectively. As of the end of June 2020, 68.8% of Jiayuan Service's area under management comes from Jiayuan Real Estate.