In China, the government ultimately owns the land. Therefore, the property development refers to housing and infrastructure construction on the land which was granted state-owned land use rights. The property development is not just the housing construction and commercial residence development but includes land and housing development as well as relevant operating activities.
According to CRI, the real estate industry involves a wide range of work with various forms. It contains the processes from land purchasing, development and construction to later marketing and sales. Additionally, it covers wide range of aspects and has complex operating procedures. Most enterprises adopt diversified development forms. The real estate industry is engaged in property management, building construction, decoration and other industries to avoid risks, which largely promotes the recycling and utilization of resources in the industry. The industry overall shows a developing trend combining both specialization and diversification.
In 2016, the investment in property development in China was CNY 10,258.1 billion, increasing by 6.9% over 2005. The housing investment was CNY 6,870.4 billion, increasing by 6.4% and taking up a proportion of 67.0% of total property development investment. In 2016, the property development investment in the eastern region was CNY 5,623.3 billion, up by 5.6% over the previous year; the investment in central China was CNY 2,328.6 billion, up by 10.7%; while the investment was CNY 2,306.1 billion in the western region, up by 6.2%.
In 2016, 74,897.5 million m2 of properties were under construction, increasing by 3.2% YOY. The residential floor space under construction was 5,213.1 million m2; the new housing construction area was 1,669.28 million m2; the completed area was 1,061.28 million m2. The floor space of commercial building sold was 1,573.49 million m2, up by 22.5% over the previous year; the floor space of residential sold increased by 22.4%; that of office building sold increased by 31.4%; that of commercial business building sold increased by 16.8%. The sales of commercial business building reached CNY 11,762.7 billion, up by 34.8%; the residence sales rose by 36.1%; the office building sales rose by 45.8%; the sales of commercial business building rose by 19.5%.
As the real estate industry is the core of the Chinese industry, it is estimated that in the coming years, the Chinese government will continue to enhance the development of real estate industry.
In this report, CRI analyzes 50 relevant property development enterprises listed in A-share market in China.
The report is composed of two parts: the first part is enterprise profiles and the second part is the operation status of these enterprises in the recent decade (presently 2006 to 2016, we will update it to the latest as time goes by).
The operation status is demonstrated from the following perspectives: (1) financial indexes, such as earnings per share, book value per share (BPS), sales per share, net cash flow per share, return on net worth and debt to asset ratio; (2) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (3) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (4) indexes on the balance sheet, such as liquid asset, fixed asset, current liability, non-current liability, capital reserve and shareholders’ equity.
(1) Financial Indexes
- Earnings per Share
- Book Value per Share (BPS)
- Sales per Share (SPS)
- Net Cash Flow per Share from Operations
- Net Cash Flow per Share (CNY)
- Return on Net Worth
- Net Profit Margin on Total Assets
- Return on Invested Capital (ROIC) (%)
- Gross Profit Margin on Sales (%)
- Net Profit Margin on Sales (%)
- EBIT Margin (%)
- EBITDA Margin (%)
- Debt to Asset Ratio (%)
- Total Asset Turnover (times)
- Cash/Operating Income Received from Sales of Goods or Services
- YOY Growth Rate of Operating Revenue (%)
- YOY Growth Rate of Operating Profit (%)
- YOY Growth Rate of Net Profit Attributable to Shareholders of Parent Company (%)
(2) Summary of Income Statement
- Gross Revenue (CNY, million)
- Total Operating Costs (CNY, million)
- Revenue (CNY, million)
- Operating Profit (CNY, million)
- Total Profit (CNY, million)
- Net Profit (CNY, million)
- Net Profit Attributable to Shareholders of Parent Company (CNY, million)
- Non-recurring Items (CNY, million)
- Net Profit Deducting Non-recurring Items (CNY, million)
- R&D Costs (CNY, million)
- Earnings Before Interest and Tax (EBIT) (CNY, million)
- Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (CNY, million)
(3) Summary of Balance Sheet
- Liquid Asset (CNY, million)
- Fixed Asset (CNY, million)
- Long-term Equity Investment
- Total Assets (CNY, million)
- Liquid Liability (CNY, million)
- Non-current Liability (CNY, million)
- Total Liability (CNY, million)
- Capital Reserve (CNY, million)
- Surplus Reserve (CNY, million)
- Undistributed Profit (CNY, million)
- Shareholders’ Equity (CNY, million)
- Equity Attributable to Shareholders of Parent Company (CNY, million)
(4) Summary of Cash Flow Statement
- Cash Received from Sales of Goods and Services (CNY, million)
- Cash Flow from Operations (CNY, million)
- Cash Paid to Purchase Fixed Assets, Intangible Assets and Other Long-term Assets (CNY, million)
- Cash Paid for Investments (CNY, million)
- Cash Flow from Investments (CNY, million)
- Cash Received from Investors (CNY, million)
- Cash Received from Borrowings (CNY, million)
- Cash Flow from Financing (CNY, million)
- Net Increase of Cash and Cash Equivalents (CNY, million)
- Cash and Cash Equivalents, End of Period (CNY, million)
- Depreciation and Amortization (CNY, million)