100plasticplayingcards| In the "black iron era" of the property market, why can Huafa be "evergreen"?

In 2024, although the real estate market continued to operate at a low level, Huafa shares made good news.

In mid-March, the Central finger Academy released a list of China's top 100 real estate companies in 2024, and Huafa shares jumped to 11th place.

At the end of March, Kerry released the "sales list of Chinese Real Estate Enterprises from January to March 2024". The sales amount of Huafa shares with equity is 134.100plasticplayingcards60 million yuan, ranking the TOP10 of the national housing enterprise.100plasticplayingcards, up 4 places from the end of 2023. Just passed.100plasticplayingcardsDuring the May Day short holiday, Huafa shares continued the legend of hot sales in the property market with a record of 3 billion.

Huafa ranks TOP10 on the list of real estate enterprises.

A series of bright data, let Huafa shares to the strength of the interpretation, what is the property market "black iron era" of the "evergreen tree".

In mid-late April, it successively launched "Huafa Technology + New Generation good House Product system Technical Standard" and "Huafa Technology + New Generation good House" new products in the industry, which were promoted at a high level and landed on the ground with high standards.

01

The sales are stable and the performance is better than the general trend.

Since the beginning of 2024, studies such as Kerry and Yihan think tanks have shown that the property market has adjusted in depth and continued to decline.

A number of Huafa projects, such as Nanjing Lifa Jia and Washington, Xi'an Huafa Lijun City Center, Hangzhou Binyue Yunfu, Chengdu Yuetian Fu, etc., have really injected vitality into the depressed market because of hot sales. The bright achievement is the continuation of the performance of Huafa shares in the past year.

Reality picture of Nanjing Lianfa Hua Fa Jia and Washington

On April 26, Huafa shares disclosed its 2023 annual report.100plasticplayingcardsIn 2023, Huafa shares reached a contracted sales value of 125.99 billion yuan, an increase of nearly 5%, ranking firmly in the camp of hundreds of billions of real estate enterprises for four consecutive years, and ranked 14th in Kerry's national full-caliber sales list of real estate enterprises, up 4 places from 2022, and the industry ranking reached a record high. Operating income increased to 72.145 billion yuan, an increase of 19.35% over the same period last year.

In 2023, Huafa also adjusted and optimized its organizational structure, forming the "31st" strategic layout of East China, South China, Zhuhai and North China.

East China completed sales of 69.271 billion yuan, accounting for 55.0%, becoming the main cornerstone of performance; South China completed sales of 31.019 billion yuan, accounting for 24.6%, with a marked increase; Zhuhai completed sales of 19.127 billion yuan, accounting for 15.2%, firmly occupying the leading position in Zhuhai; and the northern region completed sales of 6.572 billion yuan, accounting for 5.2%.

A number of projects have become one of the local hot sellers. Hengqin Huafa City has a strong sales of about 7.5 billion, ranking first in Zhuhai; Shenzhen Qianhai Huafa has four wins in the ice and snow world, with a strong sales of about 7.25 billion, making it the "triple crown" of Shenzhen's talent room area, amount of money, and the number of sets; Shanghai Huafa has sold out two riverside in four seasons, selling 6.6 billion; and the upper court of Jinjiang in Chengdu has sales of about 5 billion.

Shenzhen Qianhai Huafa Ice World Huafa New City

Each region ran out of acceleration against the wind, so that Huafa shares in the downturn in the market, still be able to maintain steady and progressive performance.

02

The return of funds to maintain a steady situation, multiple and unimpeded financing channels

In recent years, subject to the "three red lines" debt restrictions and other policies, some housing enterprises have fallen into difficulties such as debt extension and stagnant investment due to capital problems. "take good care of the money bag", so that Huafa shares to maintain the "three red lines" continue to be all green, tamping the foundation of steady development and achieving high-quality scale growth.

Huafa, as the background of state-owned assets, has always put controlling the return of funds, financing innovation and optimizing the debt structure in the important position of the company's strategy.

According to the 2023 annual report, Huafa shares made a rebate of 84.689 billion yuan in 2023, an increase of 17.2 percent over the same period last year, and the net operating cash flow was 50.544 billion yuan, an increase of 31.12 percent over the same period last year. By the end of 2023, the amount received in advance reached 100.818 billion yuan, an increase of 15.66% compared with the beginning of the year, laying the foundation for its future performance growth.

At the same time, constantly optimize the debt structure. By the end of December 2023, the long-term liabilities of Huafa shares accounted for more than 80% of all interest-bearing liabilities, and the debt maturity structure was reasonable. Since 2019, the asset-liability ratio has been declining year by year.

In addition, financing costs have been further reduced. According to the 2023 annual report, the average financing cost of Huafa shares during the reporting period was 5.48%, down 28BPs from the same period last year; constantly innovating financing methods to invigorate assets, the first rental housing Pre-REITs project and the resale of secondary shares of similar BPs were successively landed; and successfully completed the issuance of shares to specific targets, raising more than 5.1 billion yuan, becoming the second successful case of equity financing in the industry after the release of the "third Arrow" new policy.

03

Science and technology plus a new generation of good house products can break through the encirclement and empower high-quality development.

With the end of the era of high turnover, the house gradually breaks away from the financial attribute and returns to the essence of residence. Huafa shares, famous for its quality, products are always the foundation of Huafa, and are widely recognized and trusted by property buyers.

In April 2023, Huafa launched a new excellent + product system version 5.0, the product system was further improved, and the product strength was improved in an all-round way. Its projects have won 1 national quality award, 28 provincial awards and 30 municipal awards, including Guangxia Award, REARD Global Real Estate Design Award, AIIDA International Innovation Design Award, Kerry's "National Top Ten quality works", Yihan think tank "National Youju 100 Project" and other domestic and foreign design awards.

In April this year, Huafa launched "Huafa Technology + New Generation good House Product system Technical Standards" in the industry, together with leading enterprises such as Huawei, Shun Feng and Yihang, to implant AI era technologies such as Hongmeng system and drone distribution into the construction of a new generation of good houses and fourth-generation houses, so as to create a "Zhuhai model" for the high-quality development of China's real estate industry and leading the development of new-quality productive forces.

Huafa Co., Ltd. issued "Huafa Technology + New Generation good House Product system Technical Standard"

At the same time, a new generation of good house projects such as Huafa Hengqin Xi, Huafa Wan Xi No. 1, Huafa Tianluan, Huafa four Seasons Yunshan, Huafa Golden Bay House and other new generation good house projects were quickly launched in the industry for the first time, indicating that the "good house" respected by the state has a "Zhuhai model" that can be used for reference.

In short, Huafa shares can grow against the trend through the cycle, more is the victory of product power.

04

The strategy focuses on core cities with multiple measures and precise development.

"Grab good land" is one of the important indicators to measure the development potential of a real estate company. In 2023, Huafa will further focus on first-tier and second-tier core cities and acquire 26 high-quality projects, all located in high-energy cities such as Shanghai, Guangzhou, Hangzhou, Nanjing, and Chengdu.

In particular, most of the high-quality land plots with high hotspots and price-limited prices in core areas of high-energy cities such as Shanghai and Hangzhou can be "sold out at the opening". The Huafa Peninsula Huating Project in Tangzhen, Shanghai sold well for 7.11 billion yuan. It opened when it opened, sold out that year, and paid back that year; Shanghai Huafa Jing 'an Huafu, two opened and two chimes, with a sales volume of 6.8 billion yuan; Hangzhou Feiyun Runfu,