Author | Anjou Cao

Editor | Zhou Zhiyu

After Hangzhou, the central bank and other departments introduced new real estate policies one after another, as the new “boss of private housing enterprises,” Binjiang also hopes to use this round of industry reshuffle to find future opportunities.

On May 21, at a performance briefing held by Binjiang Group, Qi Jinxing, chairman of Binjiang Group, in addition to emphasizing that “in terms of regional layout, we will focus on Hangzhou and deeply cultivate Zhejiang”, reiterated that Shanghai is Binjiang's main expansion city.

Qi Jinxing said that Binjiang has a large flat floor project of the Gubei Project on sale in Shanghai, and that the Daxing Street project is discussing follow-up cooperation matters with partners. “If there is an appropriate opportunity, they will take the opportunity to acquire land.”

The unprecedented attention paid to Shanghai. Apart from benefiting from the benefits of the New Deal, it is increasingly likely that first-tier cities will lift purchase restrictions and further relax the threshold for buying a home. Another major driving force is the high growth rate of the Binjiang Shanghai region last year.

Financial reports show that Binjiang's revenue in Shanghai last year was 167.334 million yuan, an increase of 506% over the previous year. Among regions outside of Binjiang Zhejiang Province, it ranked first in terms of revenue and growth rate.

In addition to emphasizing plans to get out of Hangzhou, Binjiang is still cautious in the face of the current market and policy environment. “Taking the initiative to lie down and move forward is the company's development strategy this year.”

Qi Jinxing hopes that Binjiang will continue to maintain a sales scale of more than 100 billion dollars, accounting for 1% of the national market share, and ranking within 15 in the industry.

To this end, on the one hand, Binjiang recently adjusted its remuneration structure to reward diligence and penalize laziness; on the other hand, it raised the equity ratio this year, improved profits, and “continues to maintain an excellent city, a high-quality location, and receive high-quality projects.” In the first half of 2024, around 20 properties are expected to be delivered in Binjiang.

Binjiang is also responding to a series of investor concerns and rumors. In the first quarter, Binjiang's operating cash flow was about -2377 billion yuan. In response, Qi Jinxing said that this is a phased phenomenon, and the cash flow situation will improve as the peak sales period approaches.

At the same time, in response to the question of “whether the controlling shareholder is planning a small share transfer, or whether the retired shares of Zhu Huiming are likely to be taken over by state-owned assets,” Qi Jinxing said that up to now, Binjiang Group, Binjiang Holdings, and the majority shareholders have not considered these issues.

Bank of China Securities pointed out that Binjiang is fully enjoying the dividends of the Zhejiang market combined with orderly expansion. At the same time, against the backdrop of tight liquidity in the industry and frequent credit risks of private enterprises, the company's financial security and financing costs are comparable to those of central state-owned enterprises, maintaining a strong advantage in industry clean-up, and the degree of future performance guarantee is high.

Looking forward to the future, how to achieve a balance of expanding the Shanghai market in addition to stabilizing its position as “the first brother of Hangzhou Real Estate” will be a must-answer question about whether Binjiang can reverse the market and open up new room for imagination.