Economic Observer Network reporter Cheng Luyang Rongxin China (03301.HK, hereinafter referred to as”Rongxin”) released the 2019 results announcement. Rongxin President Yu Lijuan handed in his first transcript after taking office.
The annual contracted sales amount was 141.317 billion yuan. , To achieve the annual goal, but entering the second year of the 100 billion club, Rongxin’s strategic focus is more on ensuring profitability and reducing leverage.
Key data of Rongxin China Annual Report
Gross profit in 2019 was 12.475 billion yuan, a year-on-year increase of 54.68%; profit was 5.894 billion yuan, a year-on-year increase 69.78%.
As early as 2019, the chairman of the board of directors of Rongxin Ou Zonghong stated that Rongxin China’s main task is to reduce its leverage. His goals are to reduce short-term debt from 20 billion yuan to about 8 billion yuan, and reduce the net debt ratio from 105% to 70% -90%.
On December 31, 2019, Rongxin locked the net debt ratio at 70%.
The former”Di King” strategy has raised industry awareness for Rongxin, but It also brought a lot of problems. From the perspective of land expansion in 2019, Rongxin’s land acquisition strategy has become prudent. It emphasizes grasping the cycle and acquiring land at low prices. At the same time, it continues to make efforts on urban renewal projects. Linking land development projects to reduce land acquisition costs. In 2019, 46 new projects with a construction area of 7.13 million square meters and a consideration of equity of 16.3 billion yuan will be obtained.
Rongxin currently confirms the rights of the old land. There are 4,263,300 square meters, of which 2,003,500 square meters will be added in 2019.