Recently, the latest financial report of Vantone Development showed that the net profit attributable to the owners of the parent company was RMB 0.51 billion, a decrease of 91.59% year-on-year. The company has been transforming for many years and still cannot get its way. The main business is not operating well after de-propertying, and no land has been acquired for six years. And the emerging business cultivated is not yet enough to support the company’s development.
Revenue is less than the level of ten years ago
In 2020, Vantone Development achieved revenue of RMB 1.362 billion, up 23.55% from the previous year; net profit attributable to shareholders of the listed company was RMB 51 million, down 91.59% from the previous year; net profit attributable to shareholders of the listed company was RMB 15 million, down 91.89% from the previous year.
In 2020, Vantone Development’s real estate projects had a contracted sales area of 51.9 thousand square meters, contracted sales amount of 1.043 billion yuan and an inventory area of 153.2 thousand square meters. The real estate sales projects were mainly the residential products of Tianjin Vantone Xinxin Yishu, the office products of Hangzhou Vantone Center, the integrated products of Hangzhou Future Science and Technology City and the residential products of Beijing Tianzhu Xinxin Home.
Although Vantone’s operating income increased by 20% year-on-year in 2020, the revenue figure is not as high as its own level 10 years ago. The Huaxia Times reporter found that as early as 2008, Vantone achieved an annual operating income of 4.84 billion yuan and a net profit attributable to shareholders of the listed company of 527 million yuan.
No land acquisition for six years
Vantone is going farther and farther on the road of de-realization. In the financial report, Vantone said that it is firmly committed to the strategic transformation of the company, and the traditional real estate development and sales business will be strategically contracted in 2020, and no incremental real estate development business will be done. The existing real estate stock of saleable properties will be converted to self-owned and operated properties, showing the determination of transformation.
As a development company, land reserve is the basic production material for the future development of the company, but Vantone has rarely appeared in the land market, and the land reserve is in urgent need. Public information shows that Vantone last acquired land in 2014, earning a plot of land for the Future Science and Technology City project in Hangzhou. Vantone still has no new land in 2020, and in its latest financial report, Vantone has deleted the land reserve item.
After bidding farewell to the land market for many years, Vantone not only does not consider land acquisition, but also sells its projects in recent years, transferring most of its equity in Xianghe project to Shimao in 2019. 2020, Vantone completed the transfer of 70% equity in Xianghe Vantone, Vantone holds 30% equity in Xianghe Vantone, and the company received a total of 769 million yuan for the transfer of 100% equity, 181 million yuan for the transfer of some debts The company received a total of RMB769 million for the 100% equity transfer, RMB181 million for the partial transfer of debts, and RMB80 million for the restitution of Xianghe Wantong.
Diversification frequently falters
The company, founded by Feng Lun, has experienced several changes of the actual controller over the years, and has also conducted several transformation explorations, but it still has not found a way out for the future.
In October 2014, Feng Lun introduced Jiahua Holdings. in 2015, the board of directors of Vantone was reorganized, and the Feng Lun system announced its withdrawal. in 2016, Jiahua Holdings acquired Vantone shares, and its shareholding ratio reached 35.66% after the completion of the acquisition, getting a controlling stake in Vantone, and Wang Yi would become the de facto controller of Vantone. in 2019, Vantone introduced GLP, which became the third largest shareholder of the company.
Vantone’s transformation path was not smooth, and it did not make a substantial breakthrough after multiple explorations. In 2016, Vantone clearly transformed and upgraded from real estate business to the tertiary industry of real estate and financial services. In 2018, Vantone also attempted to acquire Xingheng Power to test the new energy business, but the two sides did not reach an agreement after a few months, and the attempt to venture into the new energy business ended in failure.
After the transformation layout in recent years, in Vantone’s planning, it has gradually formed a diversified urban operation ecological model of “real estate + N” with the original core real estate development and operation business as the carrier. Vantone implements the overall development strategy of “New Vantone, New Empowerment, New Development” and focuses on new city operation and management, new technology, new consumption and new culture, etc. The company will build a new city development with city as the main body, digital technology as the driving force and “sustainable development” as the goal. The company will build a new type of integrated urban development industry with the city as the main body, digital technology as the driving force, and “sustainable development” as the goal, and is committed to becoming a future-oriented urban renewal operator.
In July 2020, Beijing Vantone Real Estate Co., Ltd. officially changed its name to Beijing Vantone New Development Group Co. “Vantone Development”.
However, up to now, these new businesses have not yet formed a climate. According to its financial report, Vantone’s operating income mainly consists of four parts, namely real estate sales, housing leasing and asset management, and other businesses. However, judging from the performance of each business, real estate sales remained the largest business type of Vantone, with real estate sales business achieving revenue of 1.056 billion yuan, up 70.4% from the previous year, accounting for 77.53% of total revenue, while the remaining business types together accounted for less than 30% of revenue.
Recent Comments