Sinic Holdings Announces 2020 Annual Results

Sinic Holdings Announces 2020 Annual Results

Financial Highlights

  • Total contracted sales and attributable contracted sales in 2020 reached a record high of RMB113,735.9 million and RMB50,420.6 million respectively, representing a year-on-year increase of approximately 24.4% and 11.8% respectively.
  • Total revenue increased by approximately 4.0% year-on-year to RMB28,069.0 million in 2020.
  • Gross profit amounted to RMB6,859.6 million, gross profit margin was 24.4%.
  • Profit for the year hit a record high, with a year-on-year increase of approximately 1.2% to RMB2,038.5 million in 2020. The profit attributable to the owners of the parent was RMB1,960.4 million, representing a year-on-year increase of approximately 0.1%. Net profit margin was 7.3%.
  • Core profit attributable to the owners of the parent (Note 1) was RMB1,868.2 million, representing a year-on-year increase of approximately 0.8%.
  • The Board proposed a final dividend of RMB14 cents per share, representing a payout ratio of approximately 26.8% of the core profit attributable to owners of the parent in 2020.
  • Cash and bank balances (Note 2) were RMB17,535.1 million as at 31 December 2020, representing a year-on-year increase of approximately 5.6%.
  • Net gearing ratio decreased by 3.4 percentage points to 63.6% as of 31 December 2020.
  • Weighted average cost of indebtedness as at 31 December 2020 was 9.1%, representing a decrease of 0.1 percentage points as compared with 2019.

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.

HONG KONG, April 1, 2021 /PRNewswire/ — Sinic Holdings (Group) Company Limited (“Sinic Holdings” or the “Company”, together with its subsidiaries, the “Group”, stock code: 2103.HK) announces its audited annual results for the year ended 31 December 2020 (the “Reporting Period”).

Sinic Holdings Chairman, CEO and Executive Director Mr. Zhang Yuanlin, Executive Vice President Mr. Liu Xiang, Executive Director and Deputy General Manager of Operation Management Center Ms. Tu Jing in Shanghai office; Sinic Holdings Chief Financial Officer Mr. Ryan Hui, and Ms.Venus Zhao, Deputy General Manager of the HK office, General Manager of Capital Markets in Hong Kong office.
Sinic Holdings Chairman, CEO and Executive Director Mr. Zhang Yuanlin, Executive Vice President Mr. Liu Xiang, Executive Director and Deputy General Manager of Operation Management Center Ms. Tu Jing in Shanghai office; Sinic Holdings Chief Financial Officer Mr. Ryan Hui, and Ms.Venus Zhao, Deputy General Manager of the HK office, General Manager of Capital Markets in Hong Kong office.

During the Reporting Period, the Group recorded revenue of RMB28,069.0 million, representing an increase of approximately 4.0% as compared with the previous year (RMB26,984.9 million). Gross profit amounted to RMB6,859.6 million, representing a year-on-year decrease of approximately 14.2% as compared with the previous year (RMB7,998.5 million). Profit for the year was RMB2,038.5million, representing a year-on-year increase of RMB24.2 million or approximately 1.2% (RMB2,014.3 million). Core profit attributable to the owners of the parent was RMB1,868.2 million, representing a year-on-year increase of approximately 0.8% as compared with the previous year. The basic earnings per share of the Group was RMB0.55 per share.

In terms of contracted sales, the Group’s total contracted sales and attributable contracted sales reached a record high of RMB113,735.9 million and RMB50,420.6 million respectively, representing a year-on-year increase of approximately 24.4% and 11.8%, as compared with RMB91,422.7 million and RMB45,109.1 million last year, which was mainly attributable to the increase of the Group’s attributable contracted average selling price. The attributable contracted sales arose from four major regions across China, with approximately 30.8% in Jiangxi Province, approximately 23.9% in the Greater Bay Area, approximately 28.7% in the Yangtze River Delta Region, and approximately 16.6% in the Central and Western China core cities and other regions with high-growth potential.

In terms of land reserve, the Group emphasizes diversified regional distribution in first-tier and second-tier cities and acquisition of high-quality land reserves. As of 31 December 2020, the total attributable land reserve reached 15.2 million sq.m., covering 39 cities in total, which satisfy the development requirements of about 3 years in the future. In view of the Group’s existing land reserve, it was located in the four regions, with 30.7% was in Jiangxi Province, 32.6% in the Guangdong-Hong Kong-Macao Greater Bay Area, 20.1% in the Yangtze River Delta Region, and 16.6% in the Central and Western China core cities and other regions with high-growth potential, respectively. Such distribution and land reserve showed that while building a large high-quality land reserve, the Group also greatly improved the proportions of land reserves in the Greater Bay Area and core cities of the Yangtze River Economic Belt where the Group latest expanded its businesses, through which, the Group also manifested its steadfast determination of promoting nation-wide development. The Greater Bay Area, greatly benefiting from the Outline Development Plan for the Guangdong– Hong Kong-Macao Greater Bay Area and the ”policy of pioneering demonstration zone for socialism with Chinese characteristics”, and core cities of the Yangtze River Economic Belt are the most active core regions of China’s economy, and these positive factors will stimulate the Group to grow faster.

During the Reporting Period, majority of the land reserve the Group acquired in 2020 was in the first-tier and the second- tier cities of the four major regions. During the year, the Group acquired 35 parcels of high-quality land through various approaches including public tender, mergers and acquisitions, joint ventures and associates and land acquisition by consolidating industries. In respect of land acquisition by consolidating industries, in 2020, Sinic obtained a new construction site to the south of Nanchang New City, and Sinic Services headquarter was close to the newly established area. The land acquired is in the new city Economic Development Zone of the newly built area of Wangcheng, and there will be no less than 70,000 sq.m. of commercial construction to be built, which represents another success case of land acquisition of the Group by consolidating industries. The total planned GFA of the land parcel acquired during the year was 5.8 million sq.m., of which 3.5 million sq.m. of planned GFA was attributable to the Group. The total attributable consideration of the land acquired during the year was approximately RMB15,736.6 million. The average land cost for the lands acquired in 2020 was approximately RMB4,527 per sq.m.

The Group has sufficient capital liquidity. As at 31 December 2020, the Group’s cash and bank balances amounted to RMB17,535.1 million, representing a year-on-year increase of approximately 5.6%. The Group’s net gearing ratio was 63.6%, representing a decrease of 3.4 percentage points as compared with that of 31 December 2019, and the cash short-term debt ratio was 1.24 times. The Group’s weighted average cost of indebtedness as at 31 December 2020 was 9.1%, representing a decrease of 0.1 percentage point as compared with that of 2019.

The Group has actively optimized and broadened its financing channels, and further expanded and deepened its cooperation with existing banking partners. The Group obtained credit lines of approximately RMB90,700 million from a number of financial institutions, with about 72% being unutilized as at 31 December 2020, and the Group in 2020 completed the issuance of the two tranches of asset-backed securities with a principal amount of RMB490 million and RMB690 million at an interest rate from 6%–7.5%. The Group successfully issued three series of USD bonds, all of which were oversubscribed, and its interest rate was gradually reduced. It also successfully issued refinancing corporate bonds of RMB300 million with an interest rate of 7.0%. The Group will keep exploring new financing channels to achieve the diversification of financing and lower financing costs.

Mr. ZHANG Yuanlin, Chairman and Executive Director of Sinic Holdings (Group) Company Limited said: “2020 was an extraordinary year for everyone. Along with the outbreak of COVID-19, trade frictions and the pushing of the multilateral political and economic landscape, 2020 was destined to be an extraordinary year in history. However, the epidemic also gave rise to new opportunities, and the online sale of properties became exceptionally hot. The Company actively adopted a strategy to cope with the situation and opened a cloud sales model to strengthen its capability for reducing inventory. At the same time, the Company is committed to further improving its management and development model through ”Real estate + Internet”. 

2020 is the 10th anniversary of the founding of Sinic, and also the first anniversary of its listing. After ten years’ hard-working, we get to a new height.  

Looking ahead to 2021, the strategic layout of the future development of Sinic Holdings is firmly based on the four regions, with the development of first and second-tier cities as the main focus, and the strong third-tier cities as a supplement and the four regions will be expanded in a deeper cultivation way so that the brand will have more opportunities and development space to earn the popular support. The company will consistently pursue quality and services and our refinement management strategy. The Group will continue to maintain steady and quality growth, and improve its operational capability and expand its business development through sales collection. The Group will further establish headquarters-to-headquarters strategic cooperation with banks, and optimize the terms of debts. The Group will adopt a prudent financial policy, actively reduce the leverage through various financing channels, and control the three red lines at a reasonable level.

Last but not least, as a new force in the industry, the Company is committed to continuously enhancing its market influence and brand competitiveness through high standards of corporate governance and ESG governance to safeguard the Group’s compliance and sustainable development, and to build an all-round lifestyle platform underpinned by a happy community. In 2020, we announced the Green, Socially Responsible, Sustainable Development Finance Framework (the ”Framework”), which reinforces Sinic’s commitment to sustainable development and aligns our financing strategy with global best practices in ESG bond issuance.”

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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 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 35th, 32nd, and 34th in terms of sales amount (full scale) among real estate development enterprises of China in 2020.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, the “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 at December 31, 2020, the total land bank attributable to the Company amounted to approximately 15.2 million sq.m., and the Company had 150 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.