freeslotscomslotmachine| State-owned real estate developer Power Construction Real Estate has lost money and has started frequent personnel adjustments

Another real estate developer of a central enterprise lost money.

Wen / Leju Finance and Economics Li Yihe

A few days agoFreeslotscomslotmachinePower Construction Real Estate held an internal meeting in the Beijing Valley.

Members of the board of directors, the Strategy and Investment Committee, and the Audit and risk Management Committee of DMC Real Estate are here at this holiday destination, which is 10km east of Miyun and created by DMC Real Estate Group itself.

Led by Wang Haibo, chairman of Power Construction Real Estate, and Li Duan, general manager, the most talked about at the meeting was the arrangement of the company's budgetary funds, risk prevention and control, invigorating the stock, optimizing increments, and so on.

As the only platform of the real estate development business of Fortune 500 Power Construction Group, Power Construction Real Estate has a high positioning.

Its goal is to "strive to become a first-class urban development operator in China".

In order to achieve this goal, since it became a subsidiary directly owned by the Power Construction Group through asset swap in 2021, Power Construction Real Estate has first initiated frequent adjustments in terms of organization and personnel.

In November 2021, the chairman of Power Construction Real Estate was changed from Xia Jin to Wang Haibo, and a group of directors of the former board of directors also experienced a change of defense.

In May 2022, the general manager of Power Construction Real Estate was also replaced. Due to job changes, Li Duan replaced Xue Zhiyong as General Manager of Power Construction Real Estate.

In a short period of half a year, the chairman and general manager of Power Construction Real Estate have been replaced.

Wang Haibo has worked in Henan Electric Power installation Company, Henan second Thermal Power Construction Company, China Electric Power Construction Group Henan Engineering Co., Ltd. Li Duan is also a veteran of the power construction system, has worked in many fields of the system, and has working experience in real estate development.

Today, Wang Haibo and Li Duan have been building real estate for the shortest time for two years.

This is the two years of deep adjustment of real estate.

Judging from the current performance, even after the change of personnel and the internal restructuring to get rid of the problem of inter-industry competition, the power construction real estate still faces a lot of challenges in the continuous downward industry environment.

In 2023, the operating income of Power Construction Real Estate was 173.Freeslotscomslotmachine.66 billion yuan, compared with 377 in 2022Freeslotscomslotmachine7.8 billion yuan "halved", down 54.03%. The net profit realized is-1.245 billion yuan, and the net profit returned to the mother is-671 million yuan, from profit to loss. In 2022, the net profit of power construction real estate is 947 million yuan, and the net profit of its mother is 151 million yuan.

In the first quarter of 2024, the company's operating income was 552 million yuan, down 43.03% from the same period last year.FreeslotscomslotmachineThe net profit is-513 million yuan, and the loss continues to expand compared with the same period last year.

From a business point of view, last year, due to the periodicity of the carry-over income of the real estate industry, the number of projects and the amount of interest that met the settlement conditions in the reporting period decreased compared with the same period last year, and the income of the residential sector totaled 16.307 billion yuan, down 41.67%.

At the same time, the real estate projects in Nanjing, Shenzhen and Chongqing, which were listed in Nanjing, Shenzhen and Chongqing in the same period of last year, paid profits, and the number of real estate settlement projects in the current period decreased, resulting in an income of only 1.059 billion yuan in the commercial sector, down 89.22%.

Under the larger decline in revenue, the profitability of power construction real estate has also been challenged.

In 2023, the overall gross profit margin of power construction real estate was only 1.85%, down from 11.31% in 2022. Among them, the gross profit margin of the residential sector is 5.54% and that of the commercial sector is-55.03%.

The reason is that, like many peers, in the depressed market environment, it has become a helpless choice for electric power construction real estate to speed up the elimination of inventory and withdraw funds by reducing the price of the project.

Take the Wuhan Yueyue Changan project of electric construction property as an example. According to media reports, in April this year, the project sparked a heated discussion because of the price reduction that led to the angry smashing of the sales department by the owners who had already bought the property.

In the external publicity, Yueyue Changan is also known as the first future community project brought by Electric Power Construction Real Estate to Wuhan. As the highest-end product "Yueyue Department" made by Electric Construction Real Estate in Wuhan, it has high hopes.

In September 2022, the first batch of pre-sale certificates of Wuhan Yue Chang'an project were unveiled, reaching 26000 yuan per square meter, but the market response was lukewarm. Subsequently, the project was closed and adjusted, the fine decoration was cancelled, and the opening price was adjusted to about 18000 yuan / square meter after the blank discount in July 2023.

The recent activity price of the project has been reduced to 14500-15000 yuan per square meter, with free parking spaces at the same time. The sharp price reduction of the project eventually led to the dissatisfaction of some owners.

In addition to the decline in profitability, the loss of power construction real estate is also related to its existence of large accounts receivable and other receivables.

According to the consolidated balance sheet, in 2023, the accounts receivable of DMC real estate was 1.211 billion yuan, an increase of 257% from 339 million yuan in 2022. Other receivables totaled 20.992 billion yuan, a decrease over the previous year, but on a larger scale.

During the period, the company set aside 32.6822 million yuan for bad debts for accounts receivable and 1.575 billion yuan for other receivables.

This eventually led to a credit impairment loss of 681 million yuan in the consolidated profit statement of Power Construction property. And this figure has exceeded the absolute value of its return net profit.

In the specific credit impairment loss, the company's other receivables of bad debt losses amounted to 583 million yuan.

Last year, power construction real estate also recorded a fair value change loss of 126 million yuan, asset impairment loss of 356 million yuan, the impact of superimposed credit impairment losses, to a large extent dragged down its net profit performance.

On the one hand, there is a decline in revenue and a loss in net profit, on the other hand, the debt pressure during the real estate period of power construction has also increased. Last year, the overall salary of Power Construction property fell to 885 million yuan. It was 944 million yuan in 2022, down 6.25% as a whole.

In 2023, the company's short-term interest liabilities, including short-term loans, notes receivable, long-term loans due within one year and bonds payable, totaled 8.616 billion yuan, up 30 per cent from 2022. Among them, bonds payable maturing within one year had the largest increase, reaching 493%.

As a result, the cash-to-debt ratio of power construction property has also fallen to 1.15 from 1.25 in 2022. If the timeline is lengthened, the asset-liability ratio of DMC property will increase from 71.68% in 2022 to 74.39% in 2023. In the first quarter of 2024, its asset-liability ratio further increased to 75.12%.