Entering 2020, how will real estate companies develop new businesses, and what new arrangements are there? After sorting through the annual reports of some real estate companies, a reporter from Nanfang Daily found that many companies have clear goals for the layout of new businesses and new formats in their business outlook, while some real estate companies have not disclosed more directional information in their annual reports.
However, judging from new businesses such as technology manufacturing, urban renewal, health care, cultural tourism, and housing rentals, real estate companies may continue to play new tricks in 2020, and some well-developed new businesses that can generate income for companies are just around the corner.
Technology manufacturing
New products have timetable
When it comes to entering the manufacturing industry, Country Garden and Evergrande, two leading real estate companies, cannot avoid it. In the past 2019 years, Country Garden’s robots and Evergrande’s new energy vehicles have announced to the world that real estate companies can also enter the field of technology manufacturing.
Country Garden announced through its annual report that the Bozhilin Robot Project focuses on the research and development, manufacturing and application of construction robots. It has recruited 3,256 outstanding domestic and foreign R&D talents. There are currently 50 construction robots under development, 32 of which have been put into construction site testing. A total of 1843 patent applications have been submitted and 327 patent applications have been authorized. It has a number of independent core technologies in key fields.
Compared with the catering robots that have been put on the market, the outside world has been paying attention to the new progress of Country Garden's construction robots. At the 2019 results conference held on March 27, Country Garden President Mo Bin said that Country Garden spent about 1970 million yuan on robot research and development last year and hopes that construction robots can be mass-produced by this time next year.
Regarding the vision of robots, Country Garden’s annual report stated that it hopes to combine robot applications with advanced construction technologies and ultimately form the world’s leading smart construction capabilities.
Evergrande's new energy automobile industry has maintained a state of continuous buying and investment in 2019, and announced that the automobile brand is called "Hengchi". Evergrande's goal is to unite leading companies in various fields of the global automotive industry, integrate R&D and manufacturing capabilities, and create the world's largest and most powerful new energy vehicle group. Although R&D investment caused Evergrande Health, which is responsible for new energy vehicles, to suffer a large loss, at the Evergrande performance meeting, management stated that R&D investment in new energy vehicles was controlled at 20 billion yuan last year and will continue to control it in the future.
According to the annual report, Evergrande is currently developing 14 new models simultaneously, among which "Hengchi 1" is planned to be unveiled in 2020, and the entire range of Hengchi products will be fully mass-produced from 2021. According to Evergrande Chief Financial Officer Pan Darong at the results conference, with the completion of the new energy vehicle industry chain layout, the debut of Hengchi No. 1 and the full mass production of Hengchi products, Evergrande’s operating data and financial data in the automotive field All indicators in the report will be greatly improved.
city ??renovation
Actively acquire projects
Different from other diversified businesses, urban renewal and real estate development business are closely linked. In recent years, favorable policies for urban renewal in many places have been continuously strengthened, providing favorable conditions for real estate companies to enter urban renewal. In addition, the urban renewal areas are mostly in the core of the city. Prime locations are extremely attractive to real estate developers.
Therefore, even if the urban renewal business is much more difficult than the ordinary "getting land to build a house" model, it cannot stop real estate companies from focusing on the urban renewal business. For example, Evergrande stated in its annual report that as of the end of 2009, it had 101 renovation projects, including 6 projects in Shenzhen totaling 1220,000 square meters, which have been included in its land bank. R&F said it has transformed 1790,000 square meters of land bank through urban renewal projects in three cities. New World China also acquired a renovated plot of land in Tagang Village, Zengcheng District, Guangzhou in September last year, becoming one of the Hong Kong-funded real estate companies active in the urban renewal field on the mainland.
While laying out urban renewal business, some real estate companies are also innovating. China Jinmao continues to build two major business segments, real estate funds and PE investment, to consolidate its core competitiveness, give full play to the role of financial empowerment, explore the blue ocean of urban renewal business, and at the same time expand its investment layout around the urban operation industry chain.
Some real estate companies have written the layout of urban renewal into their future prospects in their annual reports. Yuexiu Real Estate's annual report stated that it will actively acquire projects in the "three old" renovation to lay the foundation for acquiring high-quality land reserves in the medium and long term. Times China stated that it will maintain a prudent investment strategy, actively participate in urban renewal and transformation, and ensure that it has sufficient and high-quality land reserves. Chairman of the Board of Directors, Shun Zhaoxiong, also pointed out at the performance meeting that as the proportion of old renovation projects gradually increases, the company's gross profit margin will be expected to continue to improve.
Wellness Culture and Tourism
Many projects may come online this year
Industries such as health, senior care, and cultural tourism have been the investment targets of some real estate companies in recent years. Wanda had previously launched a major cultural tourism project in Guangzhou. After Sunac took over, it was renamed "Sunac Cultural Tourism City" and officially opened in June 2009. This year, Sunac’s cultural tourism cities in Wuxi and Kunming also opened their doors to welcome guests. This has caused the cultural tourism segment's revenue to increase by approximately 41% to RMB 2.85 billion, but this figure does not account for a large proportion of Sunac's total revenue.
As one of the few companies to enter the field of medical beauty, Aoyuan Healthy Life Group, a subsidiary of Aoyuan, has established its own medical beauty brand and cosmetics brand, and opened three medical beauty clinics to provide skin care, micro-surgery and plastic surgery services. It also cooperates with Korean companies have jointly developed five new cosmetics including hyaluronic acid hydrating masks.
Aoyuan Health plans to launch more high-end functional cosmetics this year by further improving the existing medical management system and incubating the cosmetics business through the platform of medical beauty institutions. It also plans to join hands with world-renowned medical equipment companies to enter the upstream end of the medical beauty industry and enter the scientific and technological medical field. beauty field.
Although Evergrande Health has received much attention on new energy vehicles, it is undeniable that its "health management distribution" revenue was 4.948 billion yuan, a huge year-on-year increase of 58.38%. This comes from Evergrande Health Care Income from the valley project, while new energy vehicles have not yet achieved profitability, the big health industry has contributed huge gross profits to Evergrande Health.
As of the end of last year, Evergrande Health had launched 23 Evergrande Health Valley projects. Entering 2020, Evergrande Health plans to open to the public at least 11 health valleys in four major parks, 4 large medical care complexes and 4 Traveling Apartments has deployed health care display and experience centers at multiple locations across the country. In the field of senior care, Xi'an Evergrande Nursing Home is expected to be officially put into trial operation by the end of this year, becoming Evergrande's first benchmark project for senior care.
housing rental
Pioneers are still in the climbing phase
Up to now, long-term rental apartment brands such as Vanke Boyu, Longfor Crown Apartment, and Xuhui Domain have formed a certain scale in the industry.
Vanke's annual report stated that in 2009, 56,000 new rental housing units were opened in 2009, and as of the end of the reporting period, a total of 11 units were opened. 81% of those opened were located in 14 core cities such as Beijing and Shanghai. In the mature period, The average occupancy rate of projects (opened for six months or more) is about 90%, and 35,000 new long-term rental apartments have been opened in urban villages.
Longfor also pointed out through its annual report that Longfor Crown Apartments has opened 75,000 units, leading the industry in scale, with an overall occupancy rate of 77.4%, of which the occupancy rate of projects open for more than six months is 87.3%. Xuhui's annual report stated that its domain international has completed coverage in more than 20 cities, and the number of contracted rooms has exceeded 68,000.
Judging from this year's outlook, Longfor said that Crown Apartments is one of the main channel businesses. It has been opened and operated in first- and second-tier cities last year and will steadily advance in the future as market demand grows.
The annual reports of Vanke and CIFI did not specify the development plans for this year's leasing business. However, at the Vanke results conference held last month, director Zhu Xu said that Vanke is optimistic about the future of long-term rental apartment business in the long term, but there are currently some objective restrictions on the development of the industry. For example, many housing units in the housing stock need to be converted into residential properties, and some cities The detailed rules for commercial and housing reform have not been fully promulgated, which has hindered product construction and opening.
Zhu Xu also said that Vanke’s ability to do operating business needs to be improved, and its service awareness also needs to be improved. Both objective and subjective factors have led to the fact that Vanke’s long-term rental apartment business should be the largest in the country, but it is still in the climbing period. and exploration period.