CCTV Beijing, July 1 (Reporter Chen Yue) On June 28, BII Development Co., Ltd. (hereinafter referred to as "BII Development") held the 2023 annual and 2024 first quarter performance briefing, and Gao Yixuan, vice chairman and president of the company, attended the meeting.
According to public information, BII Development was listed in 1993 and is a comprehensive enterprise with real estate development as its main business and involved in the development of diversified industries. In recent years, the company has successively set foot in residential, high-end complex, commercial, villa, hotel, regional development and other fields, forming a strategic layout of "Beijing as the center and rail transit as the backing".
On May 16, BII Development Co., Ltd. held the first meeting of the 12th board of directors and announced the appointment of Gao Yixuan as president. It is worth noting that Gao Yixuan has been the president and vice chairman of BII Development since July 2015, and under his leadership, BII Development's revenue has been hovering around 5 billion yuan for many years.
In 2023, BII's revenue will climb to 10 billion yuan for the first time since the name change, reaching 10.641 billion yuan, a year-on-year increase of 91.65%; However, the net profit loss attributable to shareholders of listed companies was 659 million yuan, a year-on-year decrease of 426.04%, and the profit turned into a loss. During the reporting period, BII Development's basic earnings per share was -1.33 yuan, and the weighted average return on equity was -41.72%. The total operating cost was higher than the revenue, reaching 11.745 billion yuan, and almost all expenses were increasing significantly, and the sales expenses were about 203 million yuan, an increase of 26.3% year-on-year; management expenses were about 190 million yuan, an increase of 13.26% year-on-year; Financial expenses were about 155 million yuan, an increase of 154.58% year-on-year.
(Screenshot from BII Development's 2023 annual report)
According to the annual report, the loss in 2023 is mainly due to the fact that the projects that are delivered and settled are basically limited to competition, the gross profit margin is low, and at the same time, due to the impact of the liquidation of land value-added tax, the provision of land appreciation tax and the company's asset impairment loss in 2023.
In the first quarter of this year, BII's development revenue was 256 million yuan, a year-on-year decrease of 91.96%; The net profit loss attributable to shareholders of listed companies was 75 million yuan, a year-on-year decrease of 161.05%.
(Screenshot from BII Development's first quarter report of 2024)
"In the market where the policy has been continuously increasing, can we turn from loss to profit in 2024, and is there a dividend plan. Regarding this issue, at the performance briefing on June 28, Zhang Yulai, secretary of the board of directors and chief financial officer of BII Development, said that the company will formulate a dividend plan in strict accordance with the dividend rules according to the completion of annual profits and its own sustainable development requirements.
In response to the above performance, CCTV sent an interview letter to BII Development to request explanation, but as of press time, BII Development did not respond.
While the performance is poor, BII Development will add about 13 billion yuan of new borrowings in 2023. In terms of liabilities, at the end of the reporting period, BII Development's interest-bearing liabilities totaled 38.32921 billion yuan, accounting for 76.50% of the total liabilities, and the company's various borrowings increased by 13.025 billion yuan, or 51.49%, in 2023. The balance of the company's controlling shareholder's borrowings at the end of the period was 30.419 billion yuan, accounting for 60.73% of the total liabilities and 79.38% of the interest-bearing liabilities. In recent years, BII Development has a tight capital flow and a lot of external borrowings, and the reporter asked how to control the operational risks and borrowing risks, but BII Development has not yet responded. In terms of solvency, BII Development's asset-liability ratio at the end of 2023 was 84.12%, an increase of 3.96 percentage points from the end of the previous year, and the interest-bearing asset-liability ratio was 55.29%, an increase of 9.22 percentage points from the end of the previous year.
At the same time, BII's development subsidiaries also need financial support. Previously, BII Development announced that the company intends to extend the financial assistance provided by the shareholding company with an asset-liability ratio of 271% for two years, with an extension amount of 600 million yuan, and after the extension of financial assistance, the company provides a total balance of 6.668 billion yuan in financial assistance, accounting for 75.66% of the company's latest audited net assets; The total balance of financial assistance provided by the company and its holding subsidiaries to units outside the consolidated statements was 7.642 billion yuan, accounting for 86.46% of the company's latest audited net assets.
From the demand side, policies such as reducing down payments, reducing loan interest rates, recognising houses without recognising loans, relaxing purchase restrictions, transferring ownership with mortgages, and deferring replacement tax rebates have been implemented one after another, supporting rigid and improved housing demand and helping to release housing demand; From the perspective of the supply side, relief measures such as renewing the "16 Financial Measures", "Three Not Less", "White List of Real Estate Enterprises", and optimizing the supervision of pre-sale funds have been proposed one after another to alleviate the financial pressure of real estate enterprises. The policy continues to increase, can BII Development get out of the loss as soon as possible under the leadership of Gao Yixuan? Journalists will continue to pay attention.
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