CIFI Group Announces Annual Results 2014

HONG KONG, March 10, 2015 /PRNewswire/ --

Results Highlights and Outlook:

Impressive sales performance in 2014; outperforming peers:

• Contracted sales grew by 38.4% yoy to RMB21.2 billion, only very few mainstream developers achieved a growth of more than 30%; contracted sales growth rate outperformed peers.
• Contracted ASP and contracted GFA reached RMB12,235 per sq.m up 14.1% yoy.

Core net profit and dividend per share achieved record high:

• In 2014, recognised revenue was RMB16.18 billion, up 35.9% yoy, while core net profit attributable to equity owners was RMB1.94 billion, up 27.7% yoy.
• Gross profit margin and core net profit margin sustained at healthy levels of 25.9% and 12.0% respectively.
• 2014 annual dividend was HK 11 cents per share (2013: HK 7 cents per share). Dividend payout ratio accounted for 27% of core net profit.

Upgraded in credit ratings; strongly recognized by international market

• Achieved upgrades in credit ratings from three major international credit rating agencies:
  • Fitch upgraded issuer's credit rating of CIFI to "BB-" with "Stable" outlook;
  • Moody's upgraded issuer's credit rating of CIFI to "Ba3" with "Stable" outlook;
  • Standard & Poor's upgraded issuer's rating of CIFI to "BB-" with "Stable" outlook.

Maintained prudent and solid financial management; optimized debt structure aggressively:

• Gearing ratio improved to 58.2%, a significant decrease of 9.4 percentage points.
• Weighted average cost of indebtedness decreased to 8.3% (31 Dec 2013: 9.2%), reducing the Group's overall financing costs.
• Cash-on-hand was RMB7.12 billion.
• Proportion of onshore trust and other non-bank borrowings decreased to 6% (31 Dec 2013: 19%), while the proportion of unsecured offshore debt increased to 38% (31 Dec 2013: 31%).

Implement "balanced development and sustainable growth" strategy; strive to achieve better returns to the shareholders:

• Nationwide, high quality and low risk land bank: more than 60 projects in 14 cities of 3 major regions. At the end of 2014, total GFA was 9.6 million sq.m and attributable GFA was 7.4 million sq.m.
• Positive about sales and cash collection in 2015: place priority on Beijing, Shanghai as well as cities with strategic locations where are suitable for products targeted at "self-use upgraders".
• Contracted sales target for the full year of 2015 is RMB25 billion, representing an increase of approximately 18% yoy. 

Financial Highlights:

CIFI Holdings (Group) Co. Ltd. ("CIFI", or the "Group", HKEx stock code: 884), one of the top 100 real estate developers in China", focusing on the property development, property investment and property management business in the PRC, is pleased to announce its audited results for the year ended 31 December 2014.

The Group's outlook for the industry in 2015 remains cautiously optimistic with continued improvement. In the long run, benefit from sustained urbanization and growing population in big cities, housing demand is expected to remain intact in first-and second-tier cities in China. As the Chinese central government is expected to adopt more monetary easing policies, interest rate or bank requirement ratio will be further adjusted. The expectation of buyers have changed, lead to a rebound in the market demand.

Mr. Lin Zhong, Chairman and Executive Director of CIFI said, "We are positive about sales and cash collection in 2015 and have set contacted sales target for the full year of 2015 at RMB25 million, representing a year-on-year increase of approximately 18% in 2014. Looking ahead, we will further consolidate the leading position in first- and second-tier cities, enhance cooperation with other well-known developers, maintain cautious financial strategy to lower our financing costs as well as develop suitable products targeted at upgraders who are in rigid demand in the mainstream end-users' segment, so as to deliver better returns to our shareholders."

About CIFI Holdings (Group) Co. Ltd.

CIFI was ranked 30th nationally in terms of contracted sales by value in 2014 according to the "China Real Estate Enterprises Top 100 Sales Ranking in 2014" jointly published by CRIC Information Group and China Real Estate Appraisal Center. Headquartered in Shanghai, CIFI is engaged in the property development, property investment and property management businesses in the PRC. It is a strategy-oriented and shareholder value-focused real estate enterprise. The Group develops its business strategies in line with government policies related to the real estate sector in the PRC. In the area of residential property development, CIFI principally focuses on developing residential properties with small-to-medium unit sizes, comfortable living environments and mass quality projects in Shanghai and Beijing, as well as some second-tier cities where in better locations suitable for products targeted at first time self-users and upgraders. In the area of commercial property development, CIFI principally focuses on developing commercial properties for sale.

To learn more about the Company, please visit CIFI's website at: http://www.cifi.com.hk