On March 29, Sunac China announced its 2017 annual report. The company achieved operating revenue of 65.87 billion yuan, an increase of 86.4% year-on-year; net profit attributable to shareholders of listed companies increased by 344% year-on-year; gross profit margin was 20.7%. Year-on-year 13.7% increase by 7 percentage points.
In terms of sales revenue, in 2017, Sunac achieved a contractual sales amount of 3620.1 billion yuan, a year-on-year increase of 140.3% from the previous period of 150.6 billion yuan, and an equity contract sales amount of 265.6 billion yuan, an increase of 155.5% year-on-year. In 2018, the value of saleable goods was 674.5 billion yuan, and the sales target for this year was 450 billion yuan.
In the face of the RMB 450 billion goal, Sunac was a bit conservative. “When I was a kid, I liked to be the first. I don’t like to fight. I don’t like to go to the first class in the class of reading. It’s not necessarily very good.” Faced with the question of scale, Sun Hongbin, chairman of Sunac, said.
Affected by the regulation of the property market, Sunac is continuously strengthening its cash flow management. This reporter learned that Sunac achieved an average financing cost of 6% in 2017, a slight increase from the end of the previous year. As of December 31, 2017, Sunac had book cash and cash equivalents. 96.72 billion yuan, a year-on-year increase of 38.5%.
'The financial costs of Sunac have increased, mainly due to the changes in the previous market. Sunac's plan for the next two years is to reduce debt. The goal of this year (2018) is to speed up destocking, ensure cash flow from Sunac, and control financial innovation. Investment strategy and rhythm. ' Rong Chong CEO Wang Mengde told the reporter of the First Financial Affairs.
In terms of land reserves, in 2017, Rongxin added about 67.84 million square meters of land reserves, and the equity land bank was about 52.53 million square meters. As of March 26, 2018, including the earth reserves of the old agreement and other agreements, Rongchuang The land bank has a total of about 218 million square meters, and the total value of goods is about RMB 3 trillion.
After the acquisition of Wanda Assets by Sunac, it holds 9.57 million square meters of cultural and tourism business. The current opening area is 2.71 million square meters.
Wang Mengde believes that the cultural and tourism sector will become a growth point for financial innovation. It is expected that this sector will release profitability in the next three years and become an innovative business growth point.
In the annual report, Rongchuang provided a total of 9.98 billion yuan in impairment provision for the company’s investment in LeTV, and provided a provision of 2.1 billion yuan for bad debt losses due from LeTV-related companies and their related parties. The investment of LeTV-related companies was recorded as an investment loss of RMB 4.48 billion according to the equity method and the total amount was RMB 16.56 billion.
Sun Hongbin admits: 'Lokse is a failed investment, with 16.5 billion yuan all losing money. This is not a broken arm, but a broken one.'
Wang Mengde said that regarding LeTV’s investment provision of 16.56 billion yuan, it is based on the principle of prudence and made a one-off treatment. It is a report that does not want the investment to affect the future.
'I believe the value will not be zero, and there will be a residue left, right?' Sun Hongbin quipped.
In January 2017, Sunac became a strategic shareholder in LeTV, becoming LeTV's second largest shareholder, as well as a major shareholder in LeTV's Super TV and Film Industry segment.
The performance report of the listed company LeTV.com showed that the pre-incomes in 2017 amounted to 11.6 billion yuan, which was more than 6 times the net profit of LeTV.com for seven years. From 2010 to 2016, LeTV.com achieved a net profit of only 2.142 billion yuan. .
'The logic we invest in LeTV is right. It was called consumption upgrade before it was called for a better life. This is our logic. We are not afraid to do something wrong. Just follow the logic.' Sun Hongbin said.
Sun Hongbin said that Sunac had previously invested 1 billion yuan in new LeTV Entertainment, and will again increase its capital from May to July this year. New LeTV Entertainment is a video content production company under the LeTV.
In fact, the ever-expanding Sunac is looking for more Yuan's business development.
'In the future, the direction of investment in the world is technological innovation. One is consumption upgrade. I have no culture to read and understand, but I can understand the consumption upgrade. Although investment in LeTV failed, but the direction of our investment is right, this investment Big logic is right. There are always losers and wins in doing business so that you can seize the opportunity. ' Sun Hongbin said.