Author: Cao Anxun.

In today's weather is good. Today's weather is good.

After becoming the largest new Fujian-style real estate developer, Xiamen C&D Inc has accelerated its expansion pace.

On June 14th, Xiamen C&D Inc. spent 5.76 billion yuan to acquire a land parcel in Wuyuan Bay, Xiamen. This is a reflection of Xiamen C&D Inc.'s nationwide expansion.

According to CRIC data, Xiamen C&D Inc's new land value in the first five months of 2023 is 43.54 billion yuan, ranking third in the country, second only to China Res Land and the third-to-first-place dark horse in recent years, China State Construction One品. The land acquisition footprint covers Longyan, Hangzhou, Wuhan, Changsha and other places.

Especially in Hangzhou, according to Wall Street News incomplete statistics, Xiamen C&D Inc's land acquisition amount has reached 15.8 billion yuan in the first five months.

Under the recent large-scale land acquisitions, Xiamen C&D Inc.'s sales in Hangzhou have also soared.

According to CRIC's statistics for Zhejiang region, Xiamen C&D Inc.'s overall sales in Hangzhou in the first five months were 6.401 billion yuan, ranking third in Hangzhou, second only to Greentown and Binjiang, and surpassing local players such as Kaiyuan Real Estate. It has reached Xiamen C&D Inc.'s historical high in Hangzhou.

Among them, Xiamen C&D Inc.'s Langyun with China Resources sold for 6.7 billion yuan in the first five months and was crowned as the best-selling project in Hangzhou.

CRIC Real Estate Research Institute pointed out that as a national green corporate real estate developer, Xiamen C&D Inc has become one of the buyers' preferred real estate developers after multiple real estate developers encountered difficulties. On the other hand, most of Xiamen C&D Inc.'s projects are for improving residences, which have a clear advantage in the current market where uplift improves.

Xiamen C&D Inc.'s achievements in real estate have also boosted its parent company Xiamen C&D Inc.'s shares.

Financial reports show that in 2023, Xiamen C&D Inc. achieved operating income of 7636.78 billion yuan, of which Xiamen C&D Inc.'s real estate business unit of Xiamen C&D Inc. and Lianfa Group achieved operating income of 1664.50 billion yuan, a year-on-year increase of 21.94%; The net cash flow from operating activities of the real estate business unit is 18.2 billion yuan, a year-on-year increase of 25.46%.

In addition, Xiamen C&D Inc. has reserved land reserves worth billions of yuan in first-tier and second-tier cities for future growth. Lin Weiguo, general manager of Xiamen C&D Inc., said in a conference call in March that the company's goal this year is to maintain its ranking in the industry.

However, Xiamen C&D Inc. cannot avoid the problem of declining profit margins in the real estate industry. In 2023, the real estate business unit of Xiamen C&D Inc. achieved a net profit of 191 million yuan attributable to the parent company, a year-on-year decrease of 2.075 billion yuan.

As the golden age of the real estate industry has passed, how to improve profits and enhance quality and efficiency has become the key to whether Xiamen C&D Inc.'s real estate business can continue to grow bigger and stronger. Developing new key cities, creating "product moats" with brand reputation, and enhancing product premiums are one of the directions.

In recent years, regional leaders such as Yuexiu Property, Zhuhai Huafa Properties, Xiamen C&D Inc., Xiangyu Real Estate, and Hangzhou Binjiang Real Estate Group have expanded beyond their home bases and set their sights on key cities such as Beijing, Hangzhou, and Shanghai.

Yan Yuejin, director of research at the E-House Research Institute, said that in 2024, the market will further differentiate, and the recovery of core first- and second-tier cities will be relatively fast, making them the first choice for real estate developers' investment.

As the current round of industry reshuffling sees many large-scale real estate developers encounter difficulties, some regional leaders have seized the opportunity to develop through reputation and a secure capital chain. Moreover, the land acquisition threshold and qualifications have dropped, paving the way for them to gradually establish themselves in new cities.

Saying goodbye to the era of rapid urbanization, regional cultivation will be the new survival mode of real estate developers in the future. The stories of regional leaders emerging from different places will become more and more frequent in the future.