On March 25, BGY released its 2020 financial report. Under the background of last year's severe impact of the new crown epidemic on the economy and society, as well as the continued tightening of real estate regulatory policies, the company still achieved ideal business performance, further enhanced financial soundness, and maintained a strong hematopoietic function, with a decline in interest-bearing liabilities and financing costs, and an abundance of capital, which allowed BGY to have the backing to comfortably cope with the fluctuations in the market.
According to the data, the Company achieved contracted sales attributable to the Company's shareholders' equity of about 570.7 billion yuan, an increase of 3.3% year-on-year, and sales performance reached a new record high, and continued to maintain the industry's leading level. During the period, the Company realized total revenue of approximately RMB 462.9 billion; gross profit of approximately RMB 100.9 billion, net profit of approximately RMB 54.1 billion, and core net profit attributable to shareholders of approximately RMB 35 billion.
As of December 31, 2020, BGI*** achieved an equity contracted sales return of approximately RMB519.3 billion, with an equity return rate of 91%, higher than 90% for five consecutive years. Total interest-bearing liabilities decreased to RMB326.5 billion, down 11.7% compared to the end of last year. The Company's available cash balance on hand amounted to RMB183.6 billion, providing sufficient capital security. The weighted average cost of borrowing at the end of the period was 5.56%, down 78 basis points from the end of the previous year.
Analysis suggests that in the context of a new era of stabilized industry development, strengthened regulation, and overall market space still exists, China's real estate industry has entered the era of management dividend, which requires real estate enterprises to follow the direction of the general policy, intensive cultivation, as well as insights into the market opportunities, shaping the new kinetic energy of enterprise development, which in turn shifts from the scale of development to high-quality development.
BGG management at the 2020 annual results conference
Follow the pace of new urbanization, accurate layout and step on the policy dividend
Since last year, the real estate market has been under pressure on many fronts. Into the industry adjustment and maturity period, the face of complex uncertainty, real estate enterprises pay more attention to the scale, efficiency and risk of the balance. How to accurately study the market direction, prudent and reasonable layout, has become a real estate enterprises must face a "big test".
From the annual results, real estate enterprises have shown an accelerated trend of differentiation. since March, China Merchants Land, China Jinmao, Rongxin China, Zhengshang Industrial successive profit warning, but the main head of the real estate enterprise performance is solid, the strong strong competition pattern tends to be stabilized. 2020 BIGGUYUAN realizes the equity of the contracted sales amount of the first exceeded 570,700,000,000 yuan, hitting a record high. Zhongda Securities believes that the reasonable layout of BGN to grasp the dividends of urbanization, the layout of most of the goods value of the land reserves in line with the trend of population movement, unique business strategy to support the company's sales growth.
"China's urbanization still has a long way to go, this is a good opportunity for us." At the latest BGG management meeting in March this year, Yang Guoqiang, Chairman of the Board of Directors of BGG, once again expressed his long-term optimism on the road to new urbanization. He believes that, in the process of urbanization construction, people's demand for a better life remains fervent, and BGG will continue to be a leader in the journey of urbanization for a hundred years and a hundred years, with the key to improving competitiveness.
The new urbanization strategy has long been a hot topic of social concern. This year's government work report puts forward the "14th Five-Year Plan" period, China's resident population urbanization rate increased to 65%. At the same time, it is clear that we need to further promote the new urbanization strategy centered on human beings, accelerate the democratization of the agricultural transfer population, develop and expand urban agglomerations and metropolitan areas, promote the construction of urbanization with the county as an important carrier, and improve the quality of urbanization development.
Kerry's analysis suggests that new urbanization is still the biggest institutional dividend for the real estate industry. According to statistics, the urbanization rate of the resident population during the "14th Five-Year Plan" period will increase by about 4 percentage points, and about 56 million people will be relocated from rural areas to urban areas, which is expected to lead to a substantial incremental demand for purchasing homes, and thus provide solid demand support for the real estate market.
Panoramic view of BGY Galaxy City project
Following the pace of new urbanization, BGY's land bank has both breadth and depth, especially its forward-looking in-depth layout of the Yangtze River Delta, Pearl River Delta, Bohai Rim, middle reaches of the Yangtze River, and Chengdu-Chongqing city clusters, which is a good fit for the country's major regional development strategy. According to the results release, as of December 31 last year, the Company has acquired and potential equity saleable resources totaling RMB2.25 trillion, which can fully support the sales demand for more than 3.5 years. 511 new land acquisitions were made by the Company in 2020, with an equity land value of RMB209.2 billion, of which 75% are located in the five major metropolitan areas, and this high-quality land reserve can strongly support the Company's future performance and sound development, as well as locking up a larger shareholding for the Company. development, and also locks up more room for the company's future growth.
"The current market of China's urbanization remains vast, and the company will continue to respond to the national new urbanization strategy by focusing on deep cultivation." Speaking at the results conference, Mo Bin, president of Cinnamon Group, said he was confident of recording an equity sales growth of more than 10% per year for the next three years and maintaining the synchronized growth of various operating indicators.
New business development speeds up, synergy and momentum
In recent years, as the growth rate of the real estate industry has slowed down, more and more real estate enterprises have extended their tentacles to diversified fields other than real estate in order to seek new growth points while strengthening their main business.Since 2018, BGG has laid out robots, modern agriculture, new retail and other new businesses. The management revealed at the annual results conference on March 25 that the diversified new business segments have made significant progress, and the synergy of high-tech industries has a good momentum.
According to the disclosure, BGL's wholly-owned subsidiary, Bozhilin, has 18 construction robots that have entered commercialization. As of February 2021, Bozhilin robots have been applied in more than 15 projects on a pilot basis, with a cumulative construction area of 800,000 square meters. Relying on a team of more than 4,000 outstanding R&D talents at home and abroad, Bozhilin has 46 models of construction robots under research and development, and has filed nearly 3,000 patent applications in February 2021, with nearly 1,000 authorized.
"We have spent a lot of effort, hoping that in the field of construction, the use of technology and robotic equipment to change the industry, all products in the future are standardized, good quality, safety and security." Yang said that the company's operating costs will also be greatly reduced after the massive adoption of robots and intelligent construction technology.
The exterior wall spraying robot developed by BGL Robotics in construction
BGL is actively exploring construction robotics and intelligent construction system, related products and technologies to achieve many "zero" breakthroughs, filling a number of industry gaps. Professor Zhang Cymbal, academician of the Chinese Academy of Sciences and president of the Institute of Artificial Intelligence at Tsinghua University, said, "In just three years, BGI has been at the forefront of intelligent construction and construction robotics in the country and the world."
The catering robot segment is also accelerating its layout. At present, BGI's Thousand Seals robot has entered a number of provinces and cities across the country, and as of now*** there are 80 stores officially open to the public, and more than 10 provinces and cities, such as Guangdong and Guangxi, have put more than 580 sets of stand-alone equipment. Casserole robots, ice cream robots, food delivery robots and other 6 projects have entered the mass production stage, coffee robots, burger robots and other 5 projects have entered the small batch trial production stage.
Since its inception, wholly-owned subsidiary BGI Agriculture Holdings Limited has focused on the layout of the entire agricultural industry chain, committed to becoming a modern agricultural system solutions provider and service provider, and has formed five core business sections, such as research and development services, intelligent seed industry, modern agricultural science and technology parks, overseas big agriculture, community fresh stores. At the market end, BGI Modern Agriculture will combine with BGI Preferred retail channels to reduce the flow of agricultural products, and truly achieve healthy food "from field to table", to create a complete industrial ecological closed loop.
In 2020, Cinnamon set up a wholly-owned retail section Biyouxuan, adopting the business model of production and sales integration, and through the combination of three-dimensional modes, such as community fresh food stores, living supermarkets, online shopping malls, and trading companies, to provide consumers with specialty fresh food, daily necessities, and healthy living services. While meeting the needs of the general public's life, Bi Youxuan builds a bridge between urban and rural areas to create a better life for people. According to reports, in 2021, Biyouxuan will explore the business in Guangdong, Beijing and Shanghai, through a variety of business models to form an omni-channel sales, and then layout of other key cities, looking at the national market.
Unique full industry chain coverage advantage to build a modern residential ecosystem
In December last year, the meeting of the Political Bureau of the Central Committee of the **** to focus on the supply-side structural reforms, while focusing on the demand-side reforms, through the production, distribution, circulation, and consumption of all links, the formation of a demand-driven supply, the supply of demand to create higher levels of dynamic balance, to enhance the overall national economic system, the supply of the supply side, and to create demand for the supply of the supply of the supply side. Dynamic balance, to enhance the overall effectiveness of the national economic system. This year's "14th Five-Year Plan" further proposes that the innovation-driven, high-quality supply should lead and create new demand, and promote domestic and international double-cycling.
Standing on the wind of the times, BGI has long been laying out the whole industry chain upstream and downstream, forming a unique "whole industry chain coverage" capability, creating a unique sample benchmark in production and operation efficiency, product quality standards, resource integration and deployment, and so on, and the pattern of the whole industry chain within the cycle of the enterprise has appeared.
Due to the vertical integration of various links from planning and design, material supply, construction, to gardening, decoration, marketing, property, hotel, school, commercial, medical, etc., BGI, with the "one-stop" development model covering almost all aspects of real estate development, it is easier to achieve the standardization of the relevant links of the work process, the production and operation efficiency is higher, and the quality is better. Higher production and operation efficiency and more controllable quality also mean that resources can be quickly deployed, implemented and integrated in a short period of time to serve all aspects of the owner's life. This powerful integration of resources greatly enhances the value of the community, both in the special moments of the epidemic crisis and in the daily lives of the people.
If the new business exploration progresses smoothly, the diversified businesses such as robotized house building, robotized catering, modern agriculture and Beyoncé and other diversified businesses form a more effective linkage with the main business, which will form Beyoncé's unrepeatable core competitiveness, and in turn inject a new impetus for sustained long-term development.
Burger robot developed by BGI's Thousand Seals Robotics Group is at work
In addition, BGI also enters the trillion-dollar market by way of industrial investment, and has invested in a large number of enterprises with representative head enterprises in various industries, such as Shell Housing, Qinhuai Data, Rapid Technology, Zilight Spreading Rui, and Blue Arrow Aerospace, etc., around upstream and downstream industrial chain of human life as well as intelligent manufacturing, semiconductor, and new infrastructure, which is the first time in the world to have invested in the industry. We have invested in a large number of representative headline enterprises in various industries, which mutually empower our parent company's business and contribute to the continuous innovation of the whole industrial chain. As of March 20, 2021, BGI has invested in four successful IPOs.
American management scholar Adrian Slewski, in his book Demand: The Fundamental Power of Creating Great Business Legends, suggests that a great business lies in the creation of demand, and that scientific and technological innovation is the foundation of demand creation. Relying on the wings of science and technology, from the intelligent construction of the real estate sector, modern agricultural smart farms, to the consumer side of the smart food and beverage, new retail, etc., BGIYUAN develops diversified business to form a complete closed-loop around the scene of people's needs, and depicts a richer imagination for the construction of a unique modern ecosystem of living in the world.