Performance summary
Total revenue: $22.9 billion
Real estate development revenue: 17.74 billion yuan
Shopping mall operating revenue: RMB 4.08 billion
On the evening of March 27, Baolong Real Estate (HK.1238) released its 2023 annual results report. In a situation where the real estate market is in the adjustment stage, Baolong Real Estate adheres to corporate credit and takes active action. On the one hand, it follows the trend to adapt to changes in the supply and demand relationship in the market, focus on core areas of core cities, and grasp mainstream market demand and policy window periods to accelerate elimination. At the same time, the overall liquidity of the enterprise is improved by increasing operating income from the holding business and its stable cash flow. In 2023, the company achieved contract sales of 27.52 billion yuan, total revenue of 22.9 billion yuan, real estate development revenue of 17.74 billion yuan, and shopping mall operating revenue of 4.08 billion yuan.
1. Commercial sales/customer traffic both increased, and the number of members/online sales reached a record high
According to the annual report, 10 new commercial projects will be opened in 2023, with an additional opening area of about 840,000 square meters. The average opening rate of the newly opened Baolong Plaza exceeds 90%. As of December 31, 2023, the operating area has exceeded 10 million square meters, the operating revenue of the mall is 4.08 billion yuan, and the occupancy rate has stabilized at over 90%. The average sales volume of the same store has increased by about 18% compared to 2022, and the average number of visitors to the same store has increased by about 23% compared to 2022.
The company is deeply involved in commercial operations. In 2023, the total operating revenue of 11 shopping malls exceeded 100 million yuan, the total sales of 10 shopping malls exceeded 1 billion yuan, the total number of members increased by about 40% compared to 2022, online sales increased by about 35% compared to 2022, and 4 new third-party projects were signed by Outreach, with a contract area of about 450,000 square meters.
At the same time, “Baolong Four Seasons”, “Baolong Imprint”, and “Baolong Business Annual Meeting” have gradually formed three iconic brand events, and IP influence continues to expand, building a commercial value ecosystem. Measures such as AI engines based on commercial real estate jointly developed with Tencent drive automation of core business scenarios, marking the beginning of a comprehensive transformation of operations with AI capabilities.
2. Focus on dominant core cities and actively promote marketing to accelerate elimination
In 2023, Baolong Real Estate achieved total contract sales of 27.52 billion yuan, of which the Yangtze River Delta region accounted for 64.2% of sales, the average contract sales price was 13,901 yuan/square meter, accounting for nearly 80% of first-tier and second-tier city-level sales. As of December 31, 2023, Baolong Real Estate had 17.39 million square meters of saleable land storage, with a saleable value of about 2006 billion yuan. The Yangtze River Delta region accounted for 64.3% of its land reserves.
This year's government work report still lists mitigating risks in the real estate industry as one of the government's tasks, and proposes to optimize real estate policies. Whether viewed from the housing enterprise side or the demand side, it is expected that this year's real estate support policy will continue to be strengthened to ensure market stability.
Baolong Real Estate plans to launch goods worth about 63 billion yuan in 2024, of which 68.5% are located in the Yangtze River Delta, accounting for 80.7% of the first-tier and second-tier cities. It also plans to open 10 Baolong Plaza and 2 Baolong Tiandi.
Baolong Real Estate will generally take steady operation and guaranteed delivery as the core goal, focus on advantageous areas and regions, give full play to its competitive advantages, adjust business strategies according to the new real estate situation, and achieve more efficient and sustainable development.
Source: WeChat Official Account “Baolong Channel”