HNA Investment's real estate sales declined by 45% last year to 1.27 billion.
Release date:
Apr 28,2015
On April 27, HNA Investment Group Co., Ltd. announced that in 2014, the company achieved operating revenue of approximately RMB 2 billion, a year-on-year decrease of 22.81%. Net profit attributable to shareholders of the listed company reached about RMB 192 million, down 10.21% from the previous year—primarily due to reduced revenue and lower profit margins on certain settlement projects. Specifically, real estate revenue amounted to RMB 1.978 billion, marking a 23.39% drop compared to the prior year; contracted sales totaled RMB 1.27 billion, representing a significant 45.8% decline year-over-year; construction-in-progress area stood at 355,000 square meters, a sharp 55.63% decrease from the previous year; and inventory reached RMB 5.948 billion, also showing a year-on-year reduction.
On April 27, HNA Investment Group Co., Ltd. announced that in 2014, the company achieved operating revenue of approximately RMB 2 billion, a year-on-year decrease of 22.81%. Net profit attributable to shareholders of the listed company reached about RMB 192 million, down 10.21% from the previous year—primarily due to reduced revenue and lower profit margins on certain settlement projects.
Among these figures, real estate revenue stood at 1.978 billion yuan, a year-on-year decrease of 23.39%; contracted sales totaled 1.27 billion yuan, down 45.8% from the previous year; construction area under development reached 355,000 square meters, representing a year-on-year decline of 55.63%; and inventory amounted to 5.948 billion yuan, a year-on-year reduction of 19.59%.
HNA Investment stated that the primary reason for the year-on-year decline in sales performance was the transfer of Beijing Yanxi Huafu during the reporting period, which significantly reduced the company’s available inventory for sale. Meanwhile, the Suzhou market experienced sluggish demand, leading to a drop in sales. In Tianjin Yicheng Tangting, the remaining inventory mainly consists of larger-sized units, resulting in slower sales absorption compared to other properties.
Meanwhile, the decline in construction area was primarily due to the transfer of Beijing Yanxi Huafu, which resulted in a reduction, as well as the completion and filing of part of Phase 2 at Tianjin Yicheng Tangting and the full completion and filing of Suzhou Yicheng Tianzhu.
Additionally, in June 2014, HNA Investment signed a Memorandum of Cooperation with a wholly-owned subsidiary of Singapore-based Frasers Property Limited, planning to jointly invest in a logistics and warehousing project. The two parties are currently discussing the specifics of the project and the details of their collaboration.
In August, the company signed a framework cooperation agreement with Han Sheng Capital China Co., Ltd., planning to jointly invest in and operate retirement-related businesses. The joint venture has now been established, and both parties are actively advancing the implementation of specific projects.
HNA Investment stated that the company is entering the rapidly growing logistics warehousing and elderly care industries, which are expected to become new drivers of profit growth, supporting the company’s strategic transformation and long-term development. Additionally, after acquiring 100% equity of Xinsheng Medical using funds raised through a non-public issuance of shares, investments in the healthcare sector and elderly care industry will create synergistic effects, jointly fostering a comprehensive platform for the greater health industry.
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