After the profound adjustment of the real estate industry, the major real estate enterprises have actively carried out transformation and upgrading, and in this industry reformOverseas Chinese Town Asia (3366.HK)With its unique business model, it has become the vanguard of high-quality development in the post-real estate era.

Recently, the company released the 2023 interim report, overseas Chinese Town Asia still maintained a relatively sound and safe operation in the complex external environment, verifying the forward-looking of its strategy and business model.

According to the financial report, in the first half of 2023, overseas Chinese Town Asia achieved revenue of 194 million yuan, gross profit of 61.153 million yuan, and gross profit margin of about 31.6%.

(1) the ability of financial management and control is outstanding, and all major business sectors are stable.

Oct Asia has a wide range of business sectors, including comprehensive development, equity investment and fund management, industrial park projects, etc.

Specifically, take a look at the performance of the major business sectors in the first half of the year.

Integrated development business:

Overseas Chinese Town Asia key layout Triangle, Guangdong-Hong Kong-Macau Greater Bay Area core metropolitan area regional cities, in Hefei, Shanghai, Chongqing, Zhongshan and other places hold comprehensive development projects. At present, the Hefei airport international town project is the largest, which is the core of the future plate performance growth.

In the first half of the year, while the property market was still under great pressure, overseas Chinese Town Asia achieved a full-caliber sales area of 52300 square meters, with a full-caliber sales amount of 811 million yuan, and rights and interests sales amount of 284 million yuan. In terms of carry-over, the income of the comprehensive development business reached 189 million yuan in the first half of the year.

Looking forward to the future, with the policy in the second half of the year ushering in a heavy positive, supporting the sustained recovery of the real estate market, the follow-up performance of Oct's Asian comprehensive development business is expected, which is expected to lead to a reversal of performance.

It is worth mentioning that various localities are actively exploring the housing ticket placement policy, and Hefei began to follow up in July this year. In this context, overseas Chinese Town Asia's Hefei Airport International Town uses "industrial group purchase + government room tickets" as the engine to provide housing concessions for enterprise talents. Overseas Chinese Town Asia has taken many measures to promote elimination, which also means that its follow-up is expected to continue to achieve performance growth.

Equity investment and fund management business:

OCW Asia manages a large number of fund assets. by the end of June 2023, OCW Asia managed and participated in investment funds with a total size of 4.37 billion yuan, of which 1.5 billion yuan was actively managed.

In the first half of the year, OCW Asia funds demonstrated excellent investment strategy and portfolio management. On the one hand, actively seek new opportunities in the field of investment, focusing on the field of culture and technology. In the first half of the year, the parent fund managed by Oct Asia successfully invested in Nanshan Phase III Fund.

On the other hand, its funds invest in Mojie Technology and Yitou Technology to achieve varying degrees of valuation growth. This series of achievements reflect the insight and growth potential of Oct Asia in the high-tech field.

It is worth mentioning that the companies invested by its investment funds have stepped into the stage of listing, one of which has completed Science and Technology Innovation Board's initial public offering meeting. By opening up the main channel of exit in the future, this has also laid a solid foundation for the follow-up return of Oct Asia.

It is particularly noteworthy that shortly after the release of the results, that is, September 8, the overseas Chinese Town (Asia) participating fund-Shenzhen Yuanfuhai emerging Industries Fund Investment medium Giant Core Technology Co., Ltd. (688549.SH) officially listed on the Shanghai Stock Exchange Kechuang Board, with a closing price of 14.61 yuan per share, Yuanfuhai emerging Industries Fund invested in the project book return of more than 14 times. This also demonstrates once again the investment performance of Oct Asia in the high-tech sector.

Industrial Park Project:

With the extinction of the epidemic and the recovery of the economic environment, the operation of the overseas Chinese Town Asian Industrial Park continued to resume, with rental income of about 14.7704 million yuan in the first half of the year, an increase of about 10.62 percent over the same period last year. Up to now, the rentable area of the industrial park is about 154700 square meters, with an occupancy rate of 98%.

It is worth mentioning that the construction of the mass entrepreneurship and innovation Industrial Park in Huizhou started in April this year and is expected to be completed in 2024. Upon completion of the construction, the leased area will be increased by about 93000 square meters, which will also become an important focus for the follow-up performance growth of Oct Asia.

At present, Oct Asia is also actively exploring the light asset operation mode of the industrial park, which is expected to play a positive role in promoting business growth, reducing risks, improving efficiency and bringing more new opportunities for its development.

In addition to the steady development of major business sectors, Oct Asia's financial control capability is also impressive in its financial statements. In the complex internal and external market environment, Oct Asia still adheres to a sound financial foundation, effectively controls debt risks, maintains a good financial position, and shows a strong ability to resist risks.

In the first half of the year, Oct Asia maintained a healthy level of liquidity, with current assets rising 9.49 per cent over the same period last year to 18.315 billion yuan, with a current ratio of 1.23, maintaining a healthy level. In terms of financing costs, the interest rates of its banks and other loans are 3.55% and 6.57% per annum respectively, maintaining a low-cost advantage. In addition, as of the first half of the year, Oct Asia's capital-to-debt ratio was 48.6%. It is worth mentioning that in July and August, it redeemed $500 million in priority guaranteed perpetual capital securities and $300 million in priority guaranteed sustainable capital securities, respectively. Further reduce the level of debt, optimize the capital structure, and improve financial flexibility.

With the change of real estate business model, how can overseas Chinese Town Asia practice high-quality development?

With the arrival of the second half of the industry, the foreseeable trend is that in the future, the industry will no longer pursue the supremacy of scale, but pay more attention to the building of boutique projects and the construction of a benign business ecology. In this context, enterprises with sound management ability, ecological resources advantages and strong anti-risk ability will have more opportunities for development.

Obviously, Oct Asia is also the follower and beneficiary of this trend.

Supported by investment business, enabling comprehensive development, building industrial parks, actively exploring the light asset model and other aspects of layout, with the help of investment business to enable comprehensive development, overseas Chinese Town Asia can achieve the optimal allocation of resources and the effective use of funds.

From the perspective of equity investment and fund business, Oct Asia gives full play to its strong ability to mobilize industrial and financial resources, especially the construction of culture, tourism and science and technology industry ecological circle to form organic coordination. Based on this, it not only achieves diversification in investment, but also continues to play a role in promoting the development and growth of the invested enterprises to achieve a win-win benign ecology.

In this process, the real estate development business and the industry and investment layout of Oct Asia have achieved close integration and coordination and created a strong joint force, so that it can better resist external risks and achieve sustainable business development.

3 conclusion

From the perspective of capital markets, with the high-level meeting in July, the release of a series of important benefits such as stabilizing the economy, especially with the reduction of reserve requirements in September to open a new round of policies such as non-recognition of housing loans, reduction of down payment, lifting of purchase restrictions and sales restrictions, the real estate sector has now come out of its darkest moment. Looking to the future, market opportunities will appear more in those enterprises with sound business ability, unique business model and performance flexibility.

Oct Asia has good financial fundamentals and the steady development of major business sectors, showing its dominant position in the industry. It can be predicted that in the post-real estate development era, Oct Asia is expected to become a benchmark for the high-quality development of the real estate industry, and its valuation and repair potential and growth space will continue to be recognized by the market.