Over-fulfilled Various Operational Targets Seized Market Opportunities Replenished its Land Bank with High-quality Lands
Consolidated its Existing Regional Advantages
Revenue Jumped by 97% to RMB20.8 billion
Cash Surges by 217% to RMB12.3 billion
HONG KONG, March 26, 2013 /PRNewswire/ --
| Financial Highlights |
For the year ended 31 December | ||
| 2012 (RMB'000) |
2011 (RMB'000) |
Changes |
|
| Revenue | 20,842,592 | 10,604,047 | +97% |
| Gross profit | 5,382,450 | 3,566,473 | +51% |
| Operating profit | 4,687,289 | 3,721,610 | +26% |
| Profit | 2,614,740 | 2,383,072 | +10% |
| Profit attributable to owners of the Company | 2,607,300 | 2,356,168 | +11% |
| Earnings per share - Basic (RMB) - Diluted (RMB) |
0.868 0.859 |
0.785 0.784 |
+11% +10% |
| Cash | 12,262,739 | 3,867,105 | +217% |
| Net gearing ratio | 78.89% | 104.07% | -24% |
Sunac China Holdings Limited ("Sunac China" or the "Company" and together with its subsidiaries, the "Group", HKEx Stock code: 1918), an integrated residential and commercial property developer in China, announced its audited annual results for the year ended 31 December 2012 ("the year under review").
Strong Result Performance with Steady Increase in All Financial Figures
In fiscal year 2012, Sunac China continued to deliver a solid performance, achieving satisfactory growth in its core businesses, and through the cooperation with Greentown Real Estate and new land acquisitions in Hangzhou, the Group has strategically penetrated into Shanghai and Hangzhou, and commenced its strategic layout in Yangtze River Delta. Accordingly, the Group will focus on the development of real estate properties in five zones of the PRC, namely Beijing, Tianjin, Shanghai, Chongqing and Hangzhou. As at 31 December 2012, Sunac China's revenue increased by 97% to approximately RMB20.8 billion; gross profit increased by 51% to approximately RMB53.8 billion; profit attributable to owners of the Company went up by 11% to approximately RMB26.1 billion; while basic earnings per share increased by 11% to RMB0.868. Most importantly, the Group effectively reduced its net gearing ratio to 79%, and increased its cash dramatically by 217% to RMB122.6 billion.
Adhered to its Strategy of Regional Focus and High-end Properties
Over-fulfilling Various Operational Targets
In 2012, the government's control policies over real estate industry remained tight. Against such background, through adherence to its strategy of regional focus and high-end properties and with support from a team with superior execution, Sunac China remarkably achieved its 2012 operational tasks, enabling a continuously steady and fast growth in its results. While over-fulfilling various operational targets, the Company seized market opportunities to replenish its land bank with high-quality lands at suitable prices. While consolidating its existing regional advantages, the Company strategically penetrated into Shanghai and Hangzhou in 2012, with an aim to optimize its regional coverage. As at 31 December 2012, the land bank of the Group was approximately 13,600,000 sq. m., of which attributable land bank amounted to approximately 8,290,000 sq. m.
Continuously strengthening the Company's advantages in Existing Regions
Entered Shanghai Market at a High Starting Point
Strategically Penetrating into Hangzhou
In fiscal year 2012, other than its close cooperation with Greentown Real Estate, the Company also cooperates on projects with prominent enterprises such as Poly (Beijing) Real Estate Development Co., Ltd., the Wharf (Holdings) Limited, China Gezhouba Group Real Estate Co., Ltd. and Tianjin TEDA Group Company Ltd. While ensuring the landbank reserves and development in the existing regions such as Beijing, Tianjin and Chongqing, the cooperation with Greentown allowed the Company to penetrate into Shanghai at a high starting point, thereby optimizing its strategic coverage and strengthening its strategy of delivering high-end products as well as enabling the Company to enhance its systematic abilities in creating high-end properties. In November 2012, the Company made its debut in Hangzhou by winning the bid for the land parcel of Xixi Wetland at Yuhang District at an aggregate consideration of RMB620 million. In future, the Company will regard Hangzhou as an integral part of its regional coverage to cultivate this market.
Taking Suitable Chances to Further Optimize Regional Coverage
Consistently Emphasize on the Build-up of its Management Capabilities
In 2012, with success in various aspects of the Company, Sunac China expects that the central government's control policies over real estate industry in 2013 will remain tight, although new policies will be more targeted and flexible. The Company believes this will be conducive to the industry's healthy development in long run. The property market mainly depends on regional supply and demand as well as customers' expectations. The Company estimates that the overall market in 2013 will remain steady, while market differentiation will further exacerbate and performance of different cities, property developers and projects will show clear difference.
In 2013, Sunac China will continue to keep an eye on the land market, and seize all opportunities therein, to take advantage of the opportunities arising from different cities and parcels of lands. The Company will strictly follow the Company's rules on land acquisition to replenish its land bank provided that the Group has sufficient cash flows and the prices are suitable. In respect of selection of the cities, the Company will focus on consolidating its existing cities and, under prudent consideration, taking suitable chances to further optimize regional coverage.
Looking forward, the Company will consistently emphasize on the build-up of its management capabilities so as to continuously improve the Company's comprehensive and integrated management and control platform, and enhance its management capabilities before scaling up, to well guarantee the steady and fast development of the Company's business, and most importantly, to ensure better shareholders returns.
About Sunac China Holdings Limited
Sunac China Holdings Limited (Stock code: 1918) is an integrated residential and commercial property developer. To date, the Company has engaged in project developments in the Bohai-rim, South Jiangsu and Chengdu-Chongqing regions, which are currently in different phases and has covered a diverse range of property types, such as high-rise and mid-rise residences, detached villas, retail properties, offices, etc. Since its successful listing on the Main Board of the Stock Exchange of Hong Kong Limited on 7 Oct 2010, Sunac China has been guided by its brand positioning as "To perfect, to reach far". The Company has long been providing high-end products to customers with the aim of becoming leader of real estate industry in China. Since its establishment, Sunac China has being awarded various well-known industry prizes.
Media Enquiry:
Trinity Financial Communications Limited
Ms. Connie Fu
+852-3758-2284
connie.fu@tri-hk.com
