Jia Zhaoye, The Old King Of Change: A Hundred Million Unknown Journey

If it were not the lock and debt crisis 5 years ago, Jia had already reached 100 billion housing companies, but it was not until 2019 that it was 100 billion.

This late "gift" has encouraged the company and Jia Zhao has been relocated to the housing company to sell TOP30. After 5 years of debt restructuring and business restructuring, Jia Zhao is returning to the main camp.

But the side effects of the crisis can not be completely eliminated. At present, the net debt ratio of Jia Zhao industry is still high in the industry, and the risk of diversification expansion still exists.

Benefiting from the deep ploughing layout in Guangdong and Shenzhen, Guangdong, Hongkong and Macau, the biggest weight of the industry is known as its huge Bay area old change reserve. This is also one of the reasons why CITIC and Ping Ping launched a rescue operation.

Bumpy road

Among the 36 billion housing enterprises in 2019, Jia Zhao is the most special one.

According to Kerri data, Jia Zhao achieved 115 billion 200 million of the total caliber sales last year, and first entered 100 billion, ranking from 37 in 2018 to 29, ranking TOP30.

This is the company's first 30 return to the industry after 5 years.

Many Jia Zhao people are deeply impressed by the crisis at the end of 2014. At that time, a number of projects in Shenzhen were suddenly banned, and then capital chain breakage, debt default, and over 30 billion of domestic and foreign debts once dragged the company to the brink of bankruptcy.

At the last moment, Guo Yingcheng, who had been looking for mergers and acquisitions, had withstood pressure to abandon acquisitions and turned to financial institutions for support.

At the beginning of 2016, many financial institutions such as Ping An Bank and China CITIC Bank transfusions, and Ping An Bank reached a strategic cooperation with Jia Zhao industry, with a contract amount of up to 50 billion.

However, the crisis stopped Jia Zhao from trading for 727 days until March 2017. In the past two years, Jia Zhao missed the golden period of the rapid development of the industry, and missed the billion.

Before the accident, in 2013, Jia Zhao industry ranked twenty-fifth in terms of sales volume of 23 billion 900 million yuan; in the first half of 2014, Jia Zhao's sales were 11 billion 200 million, ranking 19, and a thriving picture; after the accident, the company's ranking dropped sharply, and even failed to enter the top 100 in 2015.

Fortunately, the resumption of Jia Zhao's industry has caught up with the bull market for 2016-2018 years, especially in the big bay area of Guangdong, Hongkong and Macau. The annual compound growth rate of the three year contracts has reached 53%, but the ranking is still 30.

In 2016, Jia Zhao sold 31 billion 700 million yuan in 46 place, 46 billion 700 million yuan in 2017, ranked 39, and ranked 37 in 2018.

Jia Zhao has not conceal the ambition to enter the list of 100 billion housing companies quickly after resumption. After returning in 2017, Guo Yingcheng said, "we are confident about the future of Jia Zhao. The contract sales target is 40 billion this year, and it is expected to be 100 billion yuan in 3 years".

Two years later, through cooperation and the development of its own projects, the sales of caliber caliber for the first time exceeded 100 billion, which is one year ahead of Guo Yingcheng's plan.

In the past few years, the housing prices of the same level with Jia Zhao have rushed to the front, and many rising stars have surpassed Jia Zhao, such as Xuhui, sunshine city, Rongxin China, etc.

However, China Securities believes that as the business returns to normal, the release of quality resources and upgrading of the industry will form a virtuous circle. Liquidity is expected to continue to improve, and the gap between market value and asset value is expected to gradually reduce.

Continuing to reduce liabilities

For the first time in the past century, Jia Zhao industry, which was over 100 billion, has just crossed the ridge. In the past three years, Jia Zhao, who has come to terms with the crisis, has been committed to resolving the plight of high debt.

In the past three years, the net debt ratio of the company dropped from 308% to 236%, down to 236% at the end of 2018, down 64% from the same period last year.

By the end of 6 2019, the net debt ratio of the group was 191%, down 45 percentage points from the end of last year.

Although the annual report is not available, according to the target set by the board, it is hoped that the liabilities can be reduced to below 200% in 2019 and is expected to be achieved.

Guo Yingcheng, chairman of Jia Zhao Ye, said that the company would undertake equity cooperation through project level and reduce its liabilities by selling non core assets.

Huang Zhuowei, an international analyst, pointed out that the decline of leverage has been successful. As of 2019, the total interest rate liabilities and net debt amount increased by 6 billion 700 million yuan and 900 million yuan to 115 billion 500 million yuan and 87 billion 200 million yuan respectively, while the total interest rate increased by 8 billion 500 million yuan to 44 billion 900 million yuan, which led to a drop in leverage.

A noteworthy problem is that the resumption of normal operation of Jia Zhao industry began to diversify, called "small Hengda", from football, style to health, and so on, the funds have formed a certain occupation, and income and profits have not yet appeared.

Taking the soccer industry as an example, at the 2018 performance meeting, executive director and executive director, Mai Fan revealed that Jia took over the football club from 2016, and spent more than 2 billion years in the first three years, including transfer and operation expenses.

The investment scale of the football industry is large and the capital is slow to return. For many years, the Hengda football club, which has been running the Asian champions, is still losing money.

In 2018, Jia Zhao realized 38 billion 705 million yuan in total revenue and 36 billion 81 million yuan in real estate sales, accounting for 93.2%.

Jia hopes that through the promotion of football clubs and venues, and other cultural industries, it will be a difficult process to form its own competitive edge.

In 2019, Jia Zhao industry, which was short of money, launched several financing and issued a total of no less than 9 or 3 billion US dollars of preferred notes with interest rates between 10.875%~11.95%. Among them, after entering October, the cumulative issuance of 3 US dollar bills, the coupon has reached 11.95%, is high in the industry.

But Jia Zhao has his own killer. Jia Zhao, known as the "king of old change", is a forerunner of Guangdong, Hong Kong and Macau. The company established its competitiveness and "moat" in the old urban renewal and urban renewal.

According to the financial report, as of last June, the total storage area of Jia Zhao industry was about 25 million 800 thousand square meters, with an estimated total value of about 500 billion yuan (excluding the old one that did not confirm the right). Among them, the area of large bay area and the value of goods accounted for 55% and 69% respectively. At the municipal level, the value of the first and second tier cities accounts for about 90% of total land reserves, of which Shenzhen accounts for about 1/4.

According to Anxin securities, the quality of Jia Zhao's land storage is relatively good, and its ability to exiscate and realizable is stronger, and it has more advantages in the real estate reverse cycle.

In addition, the company still has 32 million square meters of land area stock project to be converted to the official soil reserve, of which about 10 million square meters in Shenzhen, will bring 450 billion of the value of goods, all the big bay area project reserves are expected to bring about 1 trillion and 800 billion yuan value, such reserves in the top 20 strong housing enterprises, is also very competitive.

Zhongda pointed out that the company's urban renewal business and diversified industrial layout catered to the core demands of the local government. Such a business mode of "win win by government and enterprises" can be used to acquire high-quality soil resources in the core cities at a low price. It is one of the few means to improve the core city market share.

Will Jia's future hit the top 20 or even the top 10? Guo Yingcheng did not disclose it, believing that he had an answer in his mind.