"Discouraged" Sun Hongbin which are emboldened? 80 million land bank 69.8 billion in cash


In (019,183 May 28.HK) 2016 annual results meeting, the financial record of the Board Chairman of China Sun Hongbin publicly expressed their pessimism about the real estate industry。"I believe this round of regulation will be particularly far-reaching impact, since more and more policy tightening, more and more stringent limit, the second half of impact, the impact will be particularly large for next year。"Sun Hongbin expressed。  Nevertheless, on the basis of 2016 sales amounted to 150.6 billion yuan contract on financial innovation in China or the 2017 Annual sales target at 210 billion yuan。  Financial record management said in 2016, get a lot of financial record of the lowest quality land bank, and are in a very strong liquidity line, ring and core tier cities, which laid a solid foundation for sustainable future growth of the company, in 2017 in full-year financial record-to-market resources can be sold up to 418.5 billion yuan the year is expected or exceeded sales targets。  About 80 million square meters of land bank current industry, for developers, the cash position and soil storage is probably equally matched。In the case of high-quality resources increasingly scarce, access to the tickets in this market long-term survival。  At the press conference March 28, the Chinese vice president and chief financial record high board secretary Xi revealed a set of data: the financial record total land bank of 79.12 million square meters, supply of reserves up to 1.2 trillion yuan。 – It is not hard to understand, although the industry appears pessimistic, but still increase the financial record reasons in mid-2017 performance targets located。  According to reports, in 2016 the total land bank financial record received a total of 53.94 million square meters of land reserves, mainly concentrated in the second half to take, accounting for up to 60%。  If the dial back the clock last June, will find Sun Hongbin decisive at the time of mentality, high-profile announcement to suspend apply for financial innovation to take place in the country。Although the beginning of last fall, the property market to launch a new round of regulation, but Sun Hongbin concerns did not stop the land market。  At the press conference March 28, the Sun Hongbin introduced, he said financial record from last year began Oct. 1, temporarily stopped to buy land on the open market。The reason for this approach, Sun Hongbin explained that the only logic is to buy land for future prices also soared。"But now according to government price controls, skyrocketing housing prices, the logic is not established, so now buy your land, it will lose money。"Sun Hongbin expressed。  Public information, after pausing to take to the open market, the second half of last year by way of financial innovation in action mergers and acquisitions frequently。That time, the Chinese land market school of high fever, frequent the king, and through mergers and acquisitions financial record managed to avoid land auction market of intense competition, which is typical in September acquisition of its interest in 42 property projects。  "Land acquired in 2016 obtained through the acquisition of 68% of the time mainly concentrated in the first three quarters, from the beginning of the fourth quarter, we get to the speed, volume has been down to get to, especially in auction。"Chinese financial record, Vice President and Secretary of the Board expressed high Xi。  In fact, in addition to the size, financial record of quality land bank rather Aspect, these lands are in line, ring and core tier cities。In addition, financial record 2016 annual report, the total land reserves of 79.12 million square meters, the completion of the unsold portion of only 6%, to be built and the construction of some accounting for up to 94%, which means there is a strong the sales momentum realizable。  Industry analysts believe that the financial record and get to the line of high-end boutique product positioning promising, according to the current land bank size, distribution area and the scale of resources available for sale, the sales target of 210 billion yuan a bit too conservative。  Holding 69.8 billion in cash balances from the financial data disclosed in a Chinese financial point of view, in 2016, while increasing the layout, expand the scale, still maintained a good operating level。  Earnings data show that financial innovation in China by 2016 to realize an annual revenue of 353.400 million yuan, an increase of 54%, gross profit 48.500 million yuan, an increase of 70%; gross book 13.7%, rose 1.3 percent, if excluding the fair value of the provision and the impact of property acquisitions Impairment of property re-measured the impact, gross 23.4%, real gross margin rose 4.4 percentage points of profit 29.400 million yuan。  In addition, the report shows that financial innovation in China significantly reduced short-term liabilities, short-term loans accounted for less than one year loan rate has increased from 40% in 2014 down to 29% in 2016。For 2016, the net debt ratio increased financial record insiders said that this year in the country to get to a large number of mergers and acquisitions have a great relationship, but considering the company has a more relaxed cash balances sufficient to meet short-term debt, so the debt is still at healthy levels。  The balance in interpreting data, high-Xi think this is derived from the "seize the opportunity in the short term, leverage has increased."。He also pointed out that the net debt ratio does not represent all the risks, internal financial record is more concerned about cash flow management。  "By the end of last year the company cash 69.8 billion, the fourth quarter to buy land has been reduced, on account of the accumulated large amounts of cash, 69.8 billion yuan in cash to cover short-term liabilities reached 2.1 times, flowability is very good。"Xi represents a high。  Financial record management believes that, in view of the company in 2016, a large number of industry mergers and acquisitions, bringing short-term financial impact on the company, but with the corresponding floor and realized the project will bring excellent performance of the company in return, I believe will be gradually reflected in future performance reports。  As the real estate industry M & Wang, Sun Hongbin recent action is a big investment in January this year, investment in music as a。Holding a huge amount of cash, but also whether the outside world will continue to create a number of cross-border financial speculation。  In this regard, financial innovation in China Executive Director and Chief Executive Officer Wang Mengde said the next three to five years, the main industry financial record must be the most crucial and most main industry, accounting for at least 98% share。"For we are studying other industries, are looking at, when we make decisions very carefully, to ensure that our investment decisions in any industry is right。"Said Chief Executive Officer Wang Mengde。  Interpretation of current industry market regulation continue to overweight has become the industry's "normal"。  For the country and more intensive introduction of the property market policies, Wang Mengde said, we believe that this regulatory direction is good, if real estate prices continue to rise, the real estate industry, including for real estate companies is not a good thing。  "A thing is not possible prices continued to rise, the price relations from the entire market, the adjustment policies on the development of the industry continues to improve。"Said Wang Mengde。  Wang Mengde mentioned again in October last year, when the financial record paused to take in the open market, he admits that the financial record since then judge the impact of regulation and the extent of the seriousness of the industry has exceeded expectations。  "From the fourth quarter of last year, according to this regulation direction to go, including this year or next to the first half of next year, real estate hot urban housing prices certainly will not rise。"Wang Mengde stressed that judgment but we will not fall because of financial innovation in the last year or earlier time to take the land, so there is no impact on sales。  At the press conference, Sun Hongbin repeatedly referred to the "pessimistic" attitude of the industry, in his view, the current industry particularly at risk, the risk that the market is not big bad, but that policy tightening is very powerful, industry cash flow will tighten up。  The real estate industry paranoia, where should we invest heavily in hand?Sun Hongbin answer is: "Now I do not vote, because the ground is too expensive。"Sun Hongbin stressed pessimistic called logic of the market is that market prices will definitely not fall, but to buy expensive land, skyrocketing housing prices in order to make money, skyrocketing housing prices can now control policy, monetary policy is not supported。"Personally, I have money, I think I will buy shares of financial innovation。"He added。  However, for the future policy easing will not appear skyrocketing, Sun Hongbin give a negative answer, he believes, because the price is already at a high level on。"If the relatively tight monetary income, or the government for the land a little more, I do not believe that will surge。"Said Sun Hongbin。(Original title: "pessimistic" Sun Hongbin emboldened in which?80 million land bank 69.8 billion in cash) (Editor: DF309)