Another quasi - 100 - billion real estate companies impact the listing jinhui to the Hong Kong stock exchange to submit IPO application

Release Time:2020-04-03 Source:

After four years of unsuccessful attempts to list a-shares, jinhui group finally chose to switch to Hong Kong shares. Jinhui group has filed an IPO application with the stock exchange of Hong Kong (hkex) as jinhui holdings (hereinafter referred to as "jinhui") limited. On the evening of March 25, the hkex updated the version of the company's application, and jinhui's ipo prospectus appeared in the updated information, confirming the rumors of jinhui's listing in Hong Kong. Jinhui is a large-scale real estate developer with a nationwide layout. It was founded in fuzhou in 1996, formerly known as fujian jinhui real estate co., LTD., and its actual controller is Lin dingqiang. Since 2004, jinhui has carried out a nationwide layout, stationed in chongqing, and moved its headquarters to Beijing in 2009. So far, jinhui has entered 30 cities in China. According to the TOP200 list of sales of real estate enterprises in China in 2019 released by c&r, jinhui holdings' total sales volume has reached 88.86 billion yuan in 2019, ranking the 40th. Jinhui is one of the top 40 real estate enterprises in China, and only one of the two unlisted real estate enterprises. As an atypical fujian enterprise housing enterprise, jinhui does not have obvious fujian department label, in the industry impression is relatively low-key, steady. Market analysis believes that if the successful landing of the Hong Kong stock exchange, through listing financing to improve the status of corporate capital chain, will help jinhui break through 100 billion, to achieve a jump in size. In recent years, jinhui has been seeking for scale expansion, from investment to sales. According to the data of China index academy, in 2019, jinhui acquired land worth 27.2 billion yuan, ranking 35th in the industry, and ranked 40th in the group's sales in the same period. The active expansion of land reserve shows jinhui's demand for scale. According to the prospectus data, jinhui's assets, sales volume and revenue have maintained a large growth rate in the past three years. Among them, jinhui's full-caliber sales volume is RMB 44.51 billion, RMB 74.68 billion and RMB 88.86 billion respectively, ranking around the top 40 in the industry in terms of sales volume. The income from continuing operations was RMB 11.777 billion, RMB 15.971 billion and RMB 25.963 billion, representing a compound annual growth rate of 48.5%, among which the annual growth rate in 2019 reached 62.56%. Net profit was 2.221 billion yuan, 2.03 billion yuan and 2.69 billion yuan, representing a compound annual growth rate of 10%, among which the growth rate in 2019 was 16.96%. (source: jinhui prospectus) the asset size soared from 33.883 billion yuan in 2017 to 149.345 billion yuan in 2019; The total liabilities of the company and the asset-liability ratio also went up. The total liabilities of the company in the past three years were 72.163 billion yuan, 103.08 billion yuan and 127.965 billion yuan, respectively. The asset-liability ratio was 83.18%, 85.46% and 85.68%, respectively. Among them, the total contract liabilities of the company (that is, the house payment received in advance which has not been completed) were 24.6 billion yuan, 41.935 billion yuan and 56.685 billion yuan respectively in the last three years. In terms of the asset-liability ratio after deducting the amount of liabilities under contracts, jinhui holdings' figure in 2019 is 47.73%. From the perspective of the specific debt structure, by the end of 2017, 2018 and 2019, the total amount of bank loans, other loans and corporate bonds of jinhui holdings was RMB 33.51 billion, RMB 38.72 billion and RMB 42.75 billion. The total amount of bank loans, other loans and corporate bonds due within one year was 12.75 billion yuan, 23.16 billion yuan and 18.02 billion yuan, respectively. The one-year ratio was 38%, 59.8% and 42.1%, respectively. The company's short term debt structure was optimized. From 2017 to 2019, the weighted average interest rates of corporate financing were 7.25%, 7.65% and 7.76%, respectively. Although performance growth is stable, but the expansion of the sequelae are also showing. In the past three years, jinhui's gross profit was 3.792 billion yuan, 4.826 billion yuan and 5.662 billion yuan, respectively. Gross margin plummeted from 32.2 percent in 2017 to 21.8 percent in 2019. Jinhui explained that the decline in gross profit margin is mainly due to the increase in land acquisition costs of the delivered projects, such as nanjing and Shanghai, where land acquisition costs are higher. In addition, due to the increase of property development activities and intensified land acquisition, the company also USES a large amount of net cash in operation. From 2017 to 20193, the company's net cash flow from operating activities is about -7.756 billion yuan, 1.434 billion yuan and -5.697 billion yuan. It is understood that jinhui plans to raise funds to expand its share capital and supplement the company's cash flow, which is mainly used for the allocation of existing projects, partial repayment of existing trust loans, as well as general business operations and working capital. Jinhui believes that the listing of the company will help jinhui obtain more financing channels and lower financing interest rates, which will help jinhui further reduce its debt level and improve its operating capacity. The amount of the offering was not disclosed in the prospectus, and the exact number and price of the offering are yet to be determined. Earlier, jinhui hit the a-share market and planned to issue no more than 600 million shares in the Shanghai stock exchange, raising 6 billion yuan. Last year, dexin China, zhongliang holdings, sne holdings and others successfully went public, and helenburg, aoshan holdings, sanxun holdings, dragon properties, datang properties and others have also filed their prospectus. Check the fund-raising data of some real estate enterprises, among which, zhongliang has raised hk $2.77 billion, midea hk $3.06 billion, and sne hk $1.96 billion. Based on this, jinhui may raise a similar amount to the same tier of real estate enterprises. According to yan yuejin, research director of e-house research institute think tank center, under the current situation, real estate enterprises hope to complete listing, speed up land acquisition, do large-scale, reduce debt is a few important work. Jinhui holding in these three have a prominent performance. Listing itself will also help real estate enterprises to obtain follow-up development opportunities, such as obtaining new platforms and bringing more financing opportunities to real estate enterprises. Jinhui's management has previously alluded to the 100-billion-yuan target on various occasions over the past few years, although no official timeline has been set. But jinhui estimates internally that it expects to reach that goal by 2020, according to people familiar with the matter. According to the data, as of December 31, 2019, jinhui has a total of 144 property development projects at different development stages, including 102 projects of affiliated companies and 42 projects of joint ventures and associated companies. By the end of 2019, jinhui land reserve was 26,674,400 square meters. From the perspective of city-level energy, jinhui holdings should account for 93.4% of the total floor space in second-tier cities and core third-tier cities. Covering the layout of the Yangtze river delta, bohai rim, south China, southwest and northwest regions, it has settled in 30 cities, including Beijing, Shanghai, tianjin, chongqing, fuzhou, hangzhou, nanjing, wuhan, xi 'an, suzhou, shijiazhuang and other first-tier, strong-second-tier and first-tier cities.