建发，根本停不下来

Core Insights - In 2022, Jianfa Co., a major state-owned developer in Xiamen, achieved a historical sales high of approximately 210 billion, ranking among the top ten in the industry, but its profits began to decline significantly [2] - The real estate segment contributed over 60% to the company's profits, with net profits dropping to 7 billion due to asset impairment losses exceeding 5.1 billion [2] - Jianfa's subsidiary, Xiamen Hengrongchen Real Estate Development Co., reported revenues of over 16.6 billion and net profits of 2.2 billion, accounting for 12% of Jianfa's real estate revenue and 31% of its profits [2] - Jianfa's strategy of acquiring high-priced land has paid off, as seen in the two major projects in Xiamen, which significantly contributed to its revenue and profits [2] Financial Performance - Jianfa's overall revenue from real estate was 136.5 billion, with a net profit of 7 billion, indicating a low overall gross margin of less than 15% [3] - The company anticipates a significant profit drop to around 3 billion due to weak commodity trading, necessitating reliance on real estate for profit generation [3] Land Acquisition Strategy - Jianfa has aggressively pursued land acquisitions across major cities, including Beijing, Chengdu, and Hangzhou, achieving record land prices [3] - In Hangzhou, Jianfa acquired a plot for 3.4 billion, with a premium rate exceeding 115%, setting a new record for land prices in the city at an average floor price of 88,000 per square meter [3] - The company also secured a land parcel in Chengdu for 3.3 billion, with a floor price of over 41,000 per square meter, marking it as the highest in the area [3] - Jianfa's strategy of acquiring "land kings" has become a straightforward approach to generating profits, with the belief that high land prices equate to higher profits [3] Market Impact - Jianfa's aggressive land purchases have raised concerns among other developers, leading to competitive pressures in the market [4] - The company's actions have significantly influenced land price levels across major cities, pushing them to new heights [3][4]