Total Revenue and Net Profit Gained Significant Growth
Balanced Development and Steady Growth
Financial Highlights
HONG KONG, Sept. 2, 2020 /PRNewswire/ -- Sinic Holdings (Group) Company Limited ("Sinic Holdings" or the "Company", and its subsidiaries, collectively referred to as the "Group"; Stock Code: 2103.HK) is pleased to announce its unaudited consolidated results for the six months ended 30 June 2020 (the "Period").
In the first half of 2020, the Group recorded revenue of RMB 8,703.4 million, representing an increase of approximately 24.6% as compared with RMB 6,983.2 million for the corresponding period of last year. Gross profit was RMB 2,629.9 million, representing a growth of approximately 13.8% as compared with RMB 2,310.2 million for the corresponding period of last year. Profit for the Period was RMB 871.0 million, representing an increase of approximately 76.2% as compared with RMB 494.3 million for the corresponding period of last year. Core profit attributable to the owners of the parent was RMB 679.6 million, representing an increase of approximately 71.5% as compared with RMB 396.4 million for the corresponding period of last year. The Group's basic earnings per share for the Period was RMB 0.23.
In terms of contracted sales, for the six months ended 30 June 2020, the Group's total contracted sales and attributable contracted sales were RMB43,544.4 million and RMB21,061.1 million respectively, representing a year-on-year increase of 1.6% and 6.8% compared with RMB42,873.2 million and RMB19,721.7 million for the same period last year. The slowdown in growth was mainly attributable to the pandemic in early 2020. The attributable contracted sales took place in four major regions across China, with approximately 40.5% in Jiangxi Province, approximately 15.5% in the Greater Bay Region, approximately 27.5% in the Yangtze River Delta region, and approximately 16.5% in core cities in Central and Western China and other regions with high growth potential. For the six months ended 30 June 2020, the Group's attributable contracted average selling price was RMB14,264 per sq.m., representing an increase of approximately 9.7% from RMB12,999 per sq. m. for the six months ended 30 June 2019.
In terms of land reserve, the Group attaches importance to the diversified geographical distribution of its land reserve in first-and second-tier cities and the acquisition of high-quality land reserve. As at 30 June 2020, the total attributable land reserve amounted to 15.3 million sq.m.. Such distribution and amount of land reserve show that the Group not only possesses tremendous high-quality land reserve, but is also determined to promote nationwide development through greatly increasing its land reserve in the Greater Bay Region and in core cities in the Yangtze River Economic Belt where the Group has expanded its business. The Guangdong-Hong Kong-Macao Greater Bay Region benefits from the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Region as well as the policy of pioneering demonstration zone for socialism with Chinese characteristics, and core cities in the Yangtze River Economic Belt are the most active core regions in China's economy. These positive factors will help the Group to grow faster.
The land reserve newly acquired by the Group was mostly located in cities in the four major regions. During the Period, the Group acquired a total of 22 parcels of high-quality land through public auctions, mergers and acquisitions as well as joint ventures and associates, including 7 in Jiangxi Province, 1 in the Guangdong-Hong Kong-Macao Greater Bay Area, 12 in the Yangtze River Delta region and 2 in core cities in Central and Western China and other regions with high growth potential. The Group focused on acquiring land plots in the Yangtze River Delta region, resulting in a more balanced distribution of the Group's land reserve among the four major regions at the end of the Period. The total planned GFA of land parcels acquired during the Period was approximately 2.30 million square meters, of which approximately 1.70 million square meters of planned GFA was attributable to the Group. The total attributable consideration of land parcels acquired during the Period was approximately RMB9,294.5 million. The average land cost for land parcels during the Period was approximately RMB5,601 per sq.m.. In view of the Group's existing land reserve, the proportion of revenue contributed by markets outside Jiangxi Province is expected to increase further in the future，and a balanced development of the four major regions can be achieved gradually.
The Group has sufficient capital liquidity. As at 30 June 2020, the Group's cash and bank balances amounted to RMB17,743.0 million (31 December 2019: RMB16,598.6 million). The Group's net gearing ratio was 66.2%, representing a decrease of 0.8% as compared with that of 31 December 2019. The Group's weighted average cost of indebtedness as at 30 June 2020 was approximately 9.4% (31 December 2019: 9.2%).
The Group has gained widespread support and recognition from the market since its listing on the Stock Exchange of Hong Kong Limited in November 2019. It also received overall positive comments from a number of domestic and overseas investment banks such as CMB International, CCB International, BNP Paribas, BOCI, Guotai Junan, Standard Chartered Bank and Barclays Bank. In addition, on 9 March 2020, the Group was officially included in both the Hang Seng Composite Index and Mainland-Hong Kong Stock Connect. During the reporting period, the Group was assigned global scale long-term issuer corporate credit ratings of "B+" (Outlook "stable"), "B" (Outlook "stable") and "B2" (Outlook "stable") respectively by the international credit rating agencies, Fitch, Standard & Poor's and Moody's for the first time. In addition, the domestic credit rating agency, United Ratings, has maintained the Company's corporate credit rating of "AA+" with rating outlook of "Stable", and has also maintained facility credit rating of "AA+".
In addition, the Group has actively optimized and broadened its financing channels, and further expanded and deepened its cooperation with existing banking partners. The Group has actively optimized and broadened its financing channels, and further expanded and deepened its cooperation with existing banking partners. During the Period, the Group obtained credit lines of approximately RMB75,300 million from a number of financial institutions, with about 68% being unutilized as at 30 June 2020, and it completed the issuance of the first tranche of an asset-backed securities ("ABS") in 2020 with a principal amount of RMB516 million at a maximum interest rate of 7.0%. The Group will keep exploring new financing channels to achieve the diversification of financing and lower financing costs. During the Period, the Group successfully issued two tranches of US Dollar bond , with a principal amount of US$280 million ("USD Bonds due in 2021") and a principal amount of US$210 million ("USD Bonds due in 2022").
Looking forward to the second half of 2020, the outbreak of the coronavirus pandemic has had a wide-ranging impact on the country's macro economy, the production and operation of all sectors as well as everyone's daily life. The pandemic itself and some of the related prevention and control measures have inevitably affected economic activities. The real estate sector has been one of the most affected sectors, but where they are challenges, there are opportunities. The pandemic has changed the lifestyle of many people, and the uncertainty of its duration has promoted digital economy, e-commerce as well as online services. Many home buyers have begun to accept online viewings and sales, which has prompted many companies to develop new business models and speed up the transformation and upgrade of their business. On the policy side, it is expected that targeted loosening measures will dominate. Under the principle of "One City One Policy", cities in deficit may continue to be suppliers of quality land parcels, while cities facing high inventory pressure may introduce talent attraction and household registration policies that support demand in order to speed up the destocking of the property market. The Group will closely monitor the developments of the pandemic and the market and devise appropriate market strategies to respond to current changes.
Mr. ZHANG Yuanlin, Co-chairman and Executive Director of Sinic Holdings (Group) Company Limited said: "Sinic, as a large-scale real estate developer in China, owns abundant land reserves throughout the country, and persists in adopting the operational strategies of planting roots in the cities and high turnover. In the future, the Company will continue to focus mainly on first- and second-tier cities, with third-tier cities as its secondary target. The Company will put more effort in its business expansion in the Yangtze River Delta region and the Greater Bay Region, while making full use of the advantages in its Jiangxi headquarters, and will plan its business layout in regions with high growth potential in core cities in Central and Western China, thus forming a definite strategic layout in the four major regions. With respect to land acquisition policies, the Group will ensure the profitability of individual projects, control land prices, increase profits, monitor the scope of land acquisition and achieve quick turnover; it will also encourage cooperation and appropriately diversify cooperation methods. With respect to sales, the Group will actively speed up the sale process, while strengthening its cashflow management, expanding financing channels and optimizing debt structure. The Group is confident in continuing to maintain its growth in scale."
Mr. CHEN Kai, Co-chairman, Chief Executive Officer, and Executive Director of Sinic Holdings (Group) Company Limited also said: "2020 not only marks the 10th anniversary of the founding of Sinic, but also represents the first year since the listing of Sinic. In 2020, Sinic will start on a new journey. Through the transcendental quality empowered by three major assertions: security, care for customers of all ages, and fineness and delicacy, living experience will continue to be upgraded. Aiming at the full-service cycle from home purchasing to living, Sinic strives to upgrade and create an industry-leading customer service system, thereby letting the capital market and customers to have full confidence in the Company's future development. Moreover, the Company will continue to assume corporate social responsibility by delivering love to the public. With the unique attitude of a craftsman, Sinic will always be able to find its own right path and will forge ahead in the rapidly changing real estate industry."
Notes: |
(1) Core profit attributable to the owners represents profit attributable to the owners less the changes in fair value of investment properties (net of tax) and changes in fair value of financial assets/liabilities (net of tax). |
(2) Cash and bank balances comprise restricted cash, pledged deposits and cash and cash equivalents. |
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About Sinic Holdings (Group) Company Limited
Sinic Holdings (Group) Company Limited is a large-scale and comprehensive property developer in the PRC, focusing on the development of residential and commercial properties. Through nearly 10 years of operations, the Company has successfully established a leading position among residential property developers in Jiangxi Province and expanded its property development business into the Yangtze River Delta Region, the Greater Bay Region and the Central and Western China core cities and other regions with high-growth potential. According to the rankings of CRIC, China Index Academy and EH Consulting, the company ranked 36th, 32nd, and 31st in terms of sales amount (full scale) among real estate development enterprises of China in 2019.The Company was recognized as one of the China's Top 50 Real Estate Developers jointly by the China Real Estate Industry Association, Shanghai Yiju Real Estate Research Institution and China Real Estate Appraisal Center in 2018 and 2019, and one of the China's Top 30 Real Estate Developers in 2020 and Growth Top 10 in 2020 by the China Real Estate Top 10 Research Committee and China Index Academy in 2020.
The Company residential properties can be categorized into three major series, namely, its "Bay" Series, the "Garden" Series and the "Joy" Series, which target first-time home purchasers, home upgraders and extended families or high-income households, respectively. As of June 30, 2020, the total land bank attributable to the Company amounted to approximately 15.3 million sq.m., and the Company had 137 projects at various stages of development.
This press release is issued by Wonderful Sky Financial Group Limited on behalf of Sinic Holdings (Group) Company Limited.
