Viewpoint Network Hong Kong Report Mainland real estate has gone through several years of adjustment, and domestic real estate companies have embarked on different fates. China Chongqing Land is one of the private companies that has successfully survived this survival battle.
Lin Xiaowen, vice chairman and managing director of Zhongyu Land, emphasized that the most important thing is to "eat according to the food", and investment projects must consider returns before deciding to sell or acquire them.
In 2017, Zhongyu Land began its global layout and purchased the entire equity of two investment properties, One Kingdon Street and Leadenhall in London, UK, for 292 million pounds and more than 1.1 billion pounds respectively, transforming into an international real estate company. .
html On the morning of March 26, Zhongyu Land held its 2023 annual results conference in Hong Kong.In the reporting year, Zhongyu Land's total revenue was HK$473 million, a year-on-year decrease of approximately 5.1%; its gross profit was HK$440 million, which was also down from HK$474 million in the previous year.
company pointed out that the decrease in revenue was mainly due to the increase in interest rates during the year, which resulted in a loss of approximately HK$2 billion in fair value of UK investment properties and an increase in financing costs. If non-cash and unrealized items are not taken into account, a profit of HK$61 million would have been recorded during the year. The board of directors of
does not recommend the payment of final dividends for the period ending December 31, 2023.
Regarding the lack of dividend payment, Lin Xiaowen explained at the performance meeting that "the management is still unclear about how cold and how long this winter will be" because global interest rates have not fallen back yet, although the market expects it to be in the second half of the year. There have been one or two interest rate cuts, but they are not expected to be significant.
Lin Xiaowen continued that it would be a wise move to maintain cash strength, so there was no dividend payment last year. "But it does not rule out that if the performance has good growth this year, the company will resume dividend payment."
was affected by the rise in global interest rates. , Zhongyu Real Estate’s financing costs increased significantly to HK$641 million, much higher than HK$429 million in 2022.
Lin Xiaowen said that the company's loan interest has been maintained at a low level, mainly due to the bank's confidence in the company and the chairman. "The industry knows that Chairman Zhang has a steady style and must repay what he borrows, so the loan conditions for the company are relatively reasonable. Therefore, we will definitely not make acquisitions that exceed our capabilities and will grow steadily and slowly."
Lin Xiaowen emphasized that the company's financial statements are very healthy and its consistent style is to maintain the debt ratio at a stable and safe level.
"Whether there are any good projects, we must keep an eye on our funding level, because interest rates are currently high, so we have to be very careful when investing." He is optimistic about the London market, and as for Hong Kong, he will have to wait and see for a while. "The most important thing is to look at the food to eat, and only consider the returns." Will be sold or acquired."
Regarding the Hong Kong office market, Lin Xiaowen said frankly: "The performance of Hong Kong's commercial properties is in decline. How long the situation will last depends on whether global companies will settle in Hong Kong to invest again. This depends on the government's promotion efforts. To enhance business activities."
As for whether he will invest in Hong Kong again, he said that he will do what he can. If there is a good return, he will not rule out cooperation with other developers.
According to information, Zhongyu Land currently still has two joint venture projects in Yancheng, Jiangsu Province and Jiangmen, Guangdong Province. Lin Xiaowen said that he understands that mainland real estate developers face many difficulties and hopes that they can overcome the difficulties and that the company can get the rewards it deserves. .
