HONG KONG, Oct. 23, 2020 /PRNewswire/ -- Sinic Holdings (Group) Company Limited ("Sinic Holdings" or the "Company", together with its subsidiaries, the "Group", stock code: 2103.HK) announces that Lianhe Ratings Global Limited ("Lianhe Global") has assigned the Company a global scale Long-term Issuer Credit Rating of 'BB-' with a Positive Outlook.
Lianhe Global believed that Sinic's management expects to further grow its scale by deepening the city coverage and expanding into new regions through the twelve regional offices/teams. Sinic uses cash received from its project development to partly fund the growth plan of its market franchise into the provincial cities in the Yangtze River Delta, Greater Bay Area, and Central and West China Region of higher potential. Sinic managed the average time required before presale for high-turnover projects down to about six months in 2019 from approximately eight months in 2018. The change sheds light on the results of its internal benchmarks and indicators that Sinic employed to monitor the status of each development phase.
The Shanghai headquartered developer redesigned the product type by series and modularized its development approach to shorten the average construction duration, which lowered the operating costs and paved the way for its ambitious expansion. More than 90% of Sinic's high-turnover projects under development at end-2019 were on the new standardized model, somewhat expediting the completion of certain projects.
Lianhe Global expected Sinic to moderately improve its tight liquidity profile with various funding sources – including bank loans, trust loans, bond offerings, and other financing tools such as ABS products, etc. – to fund its expansion blueprint. Sinic is able to tap the onshore fixed-income market. Listed on the Hong Kong Stock Exchange since November 2019, the Company has gained access to the offshore capital market, which further diversified its funding source.
The Chairman and Executive Director of Sinic Holdings, Mr. Zhang Yuanlin said, "The 'BB-' Rating with a Positive Outlook assigned by Lianhe Global is evidence of our long-term investment value, and highlights the recognition of the rating agency of the Company's performance, stable financial position and high-quality development model. It will also be conducive to the financing of Sinic Holdings in the capital market at a lower cost in the future. Looking forward, in terms of sales, we will adopt a more active and agile product sales and pricing strategy in response to the market change. In terms of operations, we will adjust the delivery cycle in a timely manner according to market demand. In terms of finance, we will carry out a more prudent financial policy and strengthen cash flow management with an aim of securing steady development with a healthy financial condition. Sinic Holdings will consolidate its current market position and further accelerate development of its business, striving to achieve the strategic development of 'laying a solid foothold in Jiangxi for nationwide development."
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 over 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 (including all income) 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 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, the "Wan" Series, the "Yuan" Series and the "Yue" 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 138 projects at various stages of development.
