SRE Group 2016 annual performance conference: a successful turn from deficits to profit
On March 28, 2017, SRE Group 2016 annual performance conference was held in Hong Kong. Board of Directors, management executives and senior executives introduced the operation and performance in 2016.
The company made up the deficits and got surpluses
Year 2016 was the first year after the reorganization of SRE Group. It is also the time when the group stopped sustained losses since 2014. The total net profit achieved in 2016 was about 343 million yuan. SRE Group believed that the improved performance was mainly due to the increase in operating efficiency and the stripping of inessential main assets.
The group focused on principal works, stripped the auxiliary business and expanded overseas market
After the change of major shareholders, SRE Group accelerated its transformation in 2016 via various channels to optimize its asset structure. It started stripping non-strategic assets by transferring SRE Internet finance, SRE trade, SRE property and other projects successively. These loss-making projects were inconsistent to the developing direction of SRE Group. According to introduction of insider, disposal of these assets could not only decrease losses and obtain cash flow, but also effectively reduce the risk of business operations. Therefore, the transition burden of SRE Group can be reduced.
At the same time, SRE Group strengthened the efforts to obtain qualified projects. It is introduced that last year, SRE Group acquired three projects—— Shanghai Meilan Lake Asset Package, Beijing, Shanghai and Shenzhen Asset Package and Changsha. The type of business covers primary land development, merchant-operation and residence. Among these three projects, Beijing, Shanghai and Shenzhen Asset Package was the first landing project for light assets; Shanghai Meilan Lake Asset Package explored the development pattern of featured small towns. These all provided new development path for the transition.
In the field of overseas project development, SRE Group made important breakthroughs by distributing successively four projects in London and Sydney, including the headquarters of the Societe Generale; this February, SRE Group successfully acquired the San Francisco project with 88 million U.S. dollars that achieved a landing project in North American. In addition, the atelier project in London's traditional brownstone district — Kensington District was officially sold in Shanghai on March 13, 2017. Inside news went that two introduction and marketing conference was held successfully that the turnover rate was significant. Meanwhile, SRE was also actively promoted the market development of "One Belt And One Road". Some of the project negotiations had made important breakthroughs. On the basis of localization development, SRE Group shared its resources, drew lessons from domestic urbanization development, seized the advantages of domestic industry and capacity and captured the development opportunities in accelerated period of national urbanization for “One Belt And One Road” and adjusted measures to local conditions.
Operation ideas on Real Estate Financing
In 2016, the group achieved sales contract of 7.6 billion yuan and completed sales outstanding of 8.4 billion yuan. The operating income was about 3.4 billion yuan, grown greatly compared with that in 2015.
Compared with this achievement, more attention is paid to the financial real estate operation of the group. After the change of major shareholders, the strategic transformation began. It no longer just skimpily pursued the development business of traditional real estate to obtain profits. Instead, it unloaded the equity in the appropriate time or transferred assets to capitalize the future proceeds in advance. On one hand, it collected cash flow. On the other hand, it reduced the potential market risk in the future.
As in December 2016, SRE Group signed a cooperation agreement with Zhongchong Binjiang Company by transferring its 49% equity in price of 2.25 billion yuan. Through this transaction, the group raised the cash and achieved high investment income. Moreover, it could continue to share the profits of follow-up development project. Indeed, the group achieved many things at one stroke.
According to the introduction of the group, the next step, it will walk on two legs by taking the strategy of developing traditional real estate business and real estate finance. Focusing on three major markets — — “first-tier cities in domestic, core cities in developed countries and B&R high-growth area”, the group can create an international financial real estate platform.
It will give full play to its advantages in resource integration, project acquisition and real estate professional competence. By gathering talents, capital and partners, SRE Group grasps the opportunity of global economic integration, builds global asset allocation and management capability and completes the strategic transformation.