On March 27, Sunac China Holdings Co., Ltd. (01918.HK) released its 2023 annual report. In 2023, Sunac completed the handover of 310,000 units, which led to an increase in carry-over revenue. Annual revenue reached 154.23 billion yuan, an increase of 59.4% over the previous year.
“In the tough market environment last year, Sunac handed over an extremely difficult property security guarantee record. It is very rich and has also set a benchmark for the industry!” A market analyst commented.
According to data, Sunac delivered 310,000 units in 101 cities across the country last year, ranking third in Yihan's 2023 delivery list. Behind its huge delivery volume, Yangzhou Yin and Qingdao Sunac Yingdu 1 won the China Civil Engineering Zhan Tianyou Award. Beijing Sunac Xiangshan No.1 Hospital and Shanghai Sunac Future Finance City each won the National Insurance Delivery Benchmark Real Estate and Perfect Delivery Benchmark Project selected by Yihan.
How to support an insured housing enterprise to maintain high quality delivery during the “Property Transfer Guarantee” operation? It is inseparable not only from strong policy support, but also from the efforts of enterprises.
According to information, Sunac has always taken “guarantee the transfer of buildings” as its core task. At the same time, it is actively undertaking policies. It has not only received strong support from local governments, but also received financial support from high-quality assets and excellent product strength. By the end of last year, it had received more than 26 billion yuan in bailout funds and supporting financing approval funds. Currently, there are more than 120 projects that have entered the “white list” of financing coordination mechanisms. Various parties have joined forces to effectively guarantee the smooth delivery of quality and quantity of national projects.
This year, Sunac will continue to actively accept the housing guarantee support policy, take multiple measures, and make every effort to achieve the delivery target of more than 200,000 households.
At the beginning of the year, Sunac made every effort to deliver a “good start”. As of March 25, the number of projects that had resumed work nationwide reached 349, with a total of about 39,000 production workers on the job, with an overall resumption rate of nearly 80%. Many projects in more than 80 cities, including Beijing, Shanghai, Guangzhou, Chengdu, Chongqing, Tianjin, Xi'an, Kunming, Zhengzhou, Taiyuan, and Nanning, are under construction in an orderly manner.
Meanwhile, Sunac's relatively high-quality and abundant soil storage has also been converted into sales one after another, contributing a steady stream of cash flow to the company and further assisting delivery work.
According to reports, Sunac added nearly 100 billion dollars in supplies in 2024, with over 85% distributed in Tier 1 and 2 core cities. Among them are two new projects, Shanghai Dongjiadu and Huangpu Yalong, as well as two major hot markets, Beijing Sunac No.1 and Shanghai Future Finance City. High quality and sufficient value of goods will lay the foundation for future performance.
The analysts mentioned above said that the length and depth of impact of this round of adjustments to the real estate industry have all exceeded market expectations. Currently, the pressure on housing enterprises to sell, convert debt, and resume operations continues to increase. However, with the effectiveness of policies and the restoration of confidence, the general direction of industry recovery has been determined. Against this background, Sunac has made remarkable progress in securing property rights, revitalizing assets, and resuming operations through hard work and taking the lead, which has also greatly boosted industry confidence. I believe that after the foundation of the future industry is actually completed, it can take the lead in getting out of trouble.