On March 28, Zhengrong Real Estate (06158.HK) announced its 2023 annual results. In 2023, the company achieved operating income of 38.775 billion yuan, an increase of 49.7% over the previous year; gross profit of 2,179 billion yuan, an increase of 24.5% over the previous year. Meanwhile, by the end of 2023, Zhengrong Real Estate had pre-sold homes but had not yet confirmed revenue of 45.469 billion yuan, and subsequent revenue carry-over resources remained sufficient. By the end of 2023, Zhengrong Real Estate had a land reserve with a construction area of 12.98 million square meters.
As the industry continues to be deeply adjusted, the operating performance of housing enterprises in 2023 will continue to be under pressure, and losses will generally be lost. Zhengrong Real Estate also recorded a loss attributable to the owner of the parent company of $8.468 billion. At the same time, due to an increase in gross profit and a decrease in impairment losses in 2023, losses attributable to parent company owners narrowed by 34.2% year-on-year.
In 2023, in the face of complex situations and serious challenges, Zhengrong Real Estate focused on the two major tasks of “stable operation” and “guaranteed delivery” to overcome various adverse factors, achieve the company's continuous and stable operation, and at the same time insisted on creating high-quality products to meet customer needs. A total of 69 projects/batches and about 43,600 new housing units were delivered throughout the year. In the “2023 China Urban Residents' Living Satisfaction Survey” of the China Index Research Institute, Zhengrong Real Estate's customer satisfaction score was 86.5 points, which is significantly higher than the industry average of 72.3 points. As a local insurance delivery demonstration project, Zhengrong Binjiang Zique Station in Changsha received attention and coverage from CCTV's news channel.
In 2023, in order to address capital liquidity risks, Zhengrong Real Estate implemented a series of liquidity management and cost saving measures. Among them, significant progress has been made in advancing the overall overseas debt management plan. According to the announcement issued on January 25, participating creditors holding more than 79% of the existing debt have joined the restructuring support agreement.