After spending nearly 50 billion to acquire land in 2019，OCT has opened a new round of financing。

Shenzhen Stock Exchange news on March 2nd，The status of OCT Group Co., Ltd.’s public issuance of corporate bonds to qualified investors in 2020 has changed to accepted。

The bond is planned to be issued in installments，The first phase shall not exceed 10 billion yuan，The term does not exceed 10 years (including 10 years)。

One day later，March 3，According to information from Shangqing Institute，OCT Group Co., Ltd. plans to issue the second phase of ultra-short-term financing bonds in 2020，Issue amount 1.5 billion yuan，Issue period 270 days。

Just two days，OCT Group launched a massive financing plan of 21 billion yuan，Become one of the real estate companies with the largest bond issuance during the year。

OCT Express，The funds raised from the bonds are intended to be used to repay loans from financial institutions、Repay previously issued corporate bonds and interest、Supplementary working capital。

It is worth mentioning，Affected by the new coronavirus epidemic，Oct.com, whose main businesses are real estate and cultural tourism, can be said to be attacked from both sides。

Except development property sales are affected，January 25，OCT closes all tourist attractions nationwide，It is the first large enterprise in the country 188bet sports betting app download to completely close its scenic spots，Stop holding various New Year activities at the same time。

Industry insiders pointed out，The epidemic has the greatest impact on pure tourism enterprises，Especially for companies that mainly operate theme parks，The company is not only unprofitable，Also bear the cost of equipment and asset maintenance。

Perhaps in response to questions from investors and the market，February 27，OCT Group issued an announcement for the first time to announce its operating conditions in 2019，includes sales、Sales area、New land reserves, amount of land acquired, etc.。

OCT also emphasized，We will do our best to minimize the adverse impact of the epidemic on the company's economic development，The epidemic will not have a significant impact on the company’s performance in the first quarter of 2020。

In fact，Insufficient information disclosure has always been a source of dissatisfaction among OCT A shareholders，Resulting in OCT’s weakness in market value management。

“I hope OCT can proactively disclose some information。”After repeated questioning by shareholders last year，The management has also stated that it will strengthen the management of information disclosure in the future。

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Looking back on the past 2019，Continuous buying, buying and selling of projects has become the most distinctive feature of OCT。Expanding and adjusting business along the way，OCT’s debts are also rising。

Data display，2019，A total of 47 new land projects in OCT A，Total equity building area 833.90,000 square meters，Decreased by about 4% compared with the same period last year.46%。The total land price is about 747.7.5 billion yuan，Equity consideration is approximately 492.6.7 billion yuan，Equity accounted for about 66%。

According to incomplete statistics from Guandian Real Estate New Media，October 2019 only，OCT 188bet app download spent 111.4.7 billion yuan，In Nanjing、Jiangmen、Wuhan and other cities have more than 39 reserves.560,000 square meters。Among them，OCT 66.400 million won the comprehensive land plot in Qingshan District, Wuhan，Premium rate reaches 21.88%。

Meanwhile，OCT A has a total of 53 major sales projects in 2019，Total sales area 251.960,000 square meters，An increase of 22 compared with the same period last year.05%，Contracted sales amount reaches 862.4.2 billion yuan，Equity sales amount reaches 641.5.5 billion yuan。

Calculate based on this，2019，Oct.com’s land-to-sales ratio reaches 77%，Much higher than the industry average of 50%。

To this end, OCT is also working non-stop on financing.

Data display，Last three years and the end of September 2019，The total liabilities of OCT Group are 1182 respectively.9.3 billion yuan、2167.1.2 billion yuan、3047.3.9 billion yuan and 3804.0.8 billion yuan。End of the last three years，The amount of interest-bearing liabilities is 508.0.2 billion yuan、1013.8 billion yuan and 1462.8 billion yuan，The proportion of total liabilities is 42.95%、46.78% and 48.00%。

Also，Last three years and the end of September 2019，OCT Group’s asset-liability ratio is 67.96%、67.22%、68.63% and 71.81%，The asset-liability ratio after deducting advances from accounts is 58.60%、57.15%、58.64% and 58.90%。

To alleviate financial pressure，Accelerate project turnover rate at the same time，OCT also had to sell off its project equity one after another。

2018，OCT transferred the equity of 18 subsidiaries and 1 asset package，More than double the number in 2017。

2019，OCT continues to sell and sell at a pace。According to incomplete statistics from Guandian Real Estate New Media，During the period, OCT announced its intention to transfer its location in Kunming、Chongqing、Xiangyang、Qinhuangdao、Shenzhen、Shanghai、A total of 19 subsidiaries in Xi'an and other cities，The total transfer price exceeds 10 billion。

Among them，OCT 22 late last year.The Shanghai Suhewan project was transferred for NT$2.8 billion to the Shun Tak Group headed by He Chaoqiong, the daughter of the gambling king；Also，OCT also plans to transfer 100% equity of Chongqing Yuelan Real Estate，base price 40.5.4 billion yuan；31.2.9 billion transfer of 80% interest in 5 commercial and residential properties in Xixian New District, Shaanxi Province, etc.。

Nevertheless，In the short term，OCT Group still faces debt repayment pressure。

Data display，Last three years and January-September 2019，The net cash flow generated by OCT Group’s operating activities is 9.7.3 billion yuan、-152.4.4 billion yuan、-173.2.1 billion yuan and -127.9.6 billion yuan，

Also，Last three years and the end of September 2019，OCT Group’s short-term borrowings、The total of other current liabilities and non-current liabilities due within one year is 188 respectively.9 billion yuan、373.8.5 billion yuan、442.2.1 billion yuan and 519.9.6 billion yuan。

To this end, OCT still needs continuous financing and blood transfusion.

Cultural travel asceticism

Meanwhile，The accelerated layout of cultural tourism business in recent years is also one of the sources of financial pressure in OCT。

Previously，For frequent equity transfers，OCT has stated that this is the company’s specific measure to speed up turnover，Ensure that the company has more energy and resources to focus on the development and construction of the cultural tourism industry。

Data display，In tourism，Oct owned by OCT in Beijing、Shanghai、Tianjin、Chongqing、Chengdu、Wuhan、There are 18 scenic spots in more than ten cities including Nanjing，24 hotels，1 travel agency and 2 open tourist areas，A total of 52.09 million tourists were received in 2019，12% year-on-year increase。

Industry insiders pointed out，Cultural tourism projects all have long investment cycles、Large amount of investment，So 188bet Online Sports Betting and Casino the payback period is longer，Will increase the risk of the company’s capital turnover。

From the data point of view,Whether it is revenue or gross profit margin，The performance of tourism business is far inferior to that of real estate，Therefore，Real estate supporting tourism is still OCT’s current cultural tourism model。

Data display，January-September 2019、2018 and 2017，OCT Group’s real estate business income is 206.3.5 billion yuan、280.7.9 billion yuan and 226.4.7 billion yuan，Achieve gross profit 153.2.8 billion yuan、194.8.1 billion and 129.0.5 billion yuan，Gross profit margin is 74.28%、69.38% and 55.24%。

Within the same period，OCT Group’s comprehensive tourism business income is 151.9.9 billion yuan、255.7.5 billion yuan and 226.4.7 billion yuan，Achieve gross profit 61.8.6 billion yuan、103.4.6 billion yuan、96.5.8 billion yuan，Gross profit margin 40.70%、40.45% and 42.65%。

Nevertheless，OCT has not slowed down its pace in the layout of cultural tourism projects。

According to the official website of OCT Group，Only in the Guangdong-Hong Kong-Macao Greater Bay Area，The company plans to develop a total of 26 cultural and tourism comprehensive projects，The total investment is expected to exceed 100 billion yuan in the future。

Also，The first anniversary of the 2019 OCT "Yunnan Conference"，37 new signed projects in OCT，New investment of 49 billion yuan，Includes 16 cultural tourism projects、9 urbanization projects、6 industrial projects and 6 beautiful rural projects。Previously，OCT has signed 60 projects in Yunnan，The contract amount exceeds 100 billion yuan。

Obviously，Seems quite determined to focus on cultural tourism in OCT，But on this long road of reward，OCT still needs to continue to practice asceticism，Only then can we usher in the real spring。

*Source of this article: Real Estate Viewpoint Network,Author: Li Qian, original title：《Solution|OCT21 billion financing and cultural tourism asceticism》.