The net profit of 42 listed housing companies increased by only 5% in 2014 and declined by nearly 50%.

China Paint Network
: As of March 16, according to Wind information statistics show that according to the Shenyin Wanguo industry classification, a total of 42 listed housing enterprises in Shanghai and Shenzhen announced the 2014 annual report, of which 19 housing enterprises attributable to the parent company's shareholders' net profit fell, accounting for nearly 50 percent, which to a certain extent reflects the real estate industry's overall profit margin downward phenomenon.
In fact, at the beginning of 2014, in the absence of psychological preparation for housing enterprises, housing prices in second- and third-tier cities led by Hangzhou sharply turned down, and then the first-tier cities were swept away by the tide of price cuts, the real estate market continued to decline throughout the year. In view of this, under the pressure of oversupply and sky-high inventory, listed housing enterprises are forced by capital pressure and performance requirements, have adopted a "price-for-volume" sales strategy, but land, capital costs are still high, so many housing enterprises profits have been eroded.
National 50% of housing enterprises' net profit fell
Securities Daily reporters based on Wind information statistics calculated that the above 42 listed housing enterprises in 2014 total operating income of 289.08 billion yuan, in 2013 was 243.814 billion yuan, an increase of 18.57 percent year-on-year. However, in terms of net profit, the total net profit attributable to shareholders of the parent company of the 42 housing enterprises was RMB32,498 million, up only 5% year-on-year. Among them, 19 enterprises' net profit fell, accounting for nearly 50%.
reporters compared found that even the 100 billion yuan Poly Real Estate, 2014 net profit growth rate of only 13.36 percent, compared with 27.36 percent year-on-year growth rate in 2013, down 14 percentage points;
To this, Shanghai Yi-residential Real Estate Research Institute researcher Yan Yuejin told the Securities Daily reporter, from the current release of the 2014 annual report of the performance of housing enterprises, the differentiation is more obvious, even large housing enterprises net profit growth level is also rapidly declining, small and medium-sized enterprises are directly into the net profit decline channel.
Yan Yuejin believes that this has nothing to do with the layout and business structure of the enterprise project. Among them, some housing enterprises are not professional real estate companies, there are diversified industries to support, so in 2014 the real estate market is relatively depressed, operating income rose year-on-year. However, some housing enterprises' real estate project layout is relatively concentrated, and the region's property market continues to cool sharply, its operating income and net profit situation is not ideal. In addition, from the real estate industry as a whole, the profitability of listed housing enterprises generally declined.
It is worth noting that two of the 42 listed housing companies that reported their 2014 annual reports were loss-making, with Tongda Ventures and New Wave Industries reporting a 110 per cent year-on-year decline in net profit and 211.75 per cent. Meanwhile, Riverside Group, the second-largest company in Hangzhou's real estate sector in nearly a decade, reported a decline in net profit of more than 41.23 percent year-on-year in 2014. In 2014, Binjiang Group achieved sales of 15.7 billion yuan overall, and the second-largest position in Hangzhou's real estate sector was overtaken by Vanke to third place.
To this, there are industry insiders to this reporter straight, in 2014 Hangzhou market housing prices fell significantly, developers in order to speed up inventory digestion speed, increase marketing cost input, the use of "price-for-volume" and other business strategies, the net profit indicators have a certain impact.
Profitability suffered
securities daily reporter based on Wind information statistics calculated that the above 42 listed housing enterprises in the past three years, the total net profit attributable to the parent company shareholders has been on an upward trend, but the growth rate slowed rapidly.
2014, the net profit of the 42 listed companies was RMB32,498 million, RMB30,784 million in 2013 and RMB24,664 million in 2012, an increase of 5%, 24.81% and 16.7%, respectively. Clearly, this means that the profitability of real estate companies fell last year.
In fact, the reasons for the decline in net profit or loss-making enterprises' performance changes are basically related to this year's decline in the real estate industry, sales prices down, gross margin reduction, weak sales led to an increase in project inventory, which in turn increased the pressure on corporate capital, further eroding the net profit quota.
Industry insiders say that one side is difficult to digest inventory, on the other hand is not able to complete the sales target, many housing enterprises in these two important indicators on the trend of the opposite direction, which will undoubtedly increase the risks faced by housing enterprises. In view of this, small and medium-sized housing enterprises are subject to cash flow and layout is too concentrated and other factors can not compete with large housing enterprises, and may even face the fate of the disappearance of mergers and acquisitions.
" re-investment in high-end slow-moving projects, early radical land acquisition, leading to higher-cost enterprises, blind expansion of diversified enterprises, difficult to obtain financing enterprises will face the risk of capital fracture, or even bankruptcy. "An industry insider has said that if these companies can't grasp this year's policy stimulus window, the days won't be better.
" say this year is better than last year, but in fact I am more anxious. "Trading a high-end project in Beijing sales director told this reporter, "We have felt the pressure to find customers, in the past is the customer chasing the property contract, now we are holding the contract chasing the customer to sign, in the past rely on the land premium to earn profit advantages have no."
, however, Yan Yuejin said that with the second half of 2014 to gradually liberalize the purchase policy, housing enterprises will be released from operating pressure, housing enterprises are expected to increase investment in 2015.