Focus on
High-Quality Growth
Profit Attributable to
Owners of the Parent up by 33.1%
Deep
Penetration in First- and Second-Tier Cities
Sound Financial Performance
Financial
Highlights:
RMB mn
|
For the six months ended 30 June
|
Changes
|
|
2021
|
2020
|
|
Revenue
|
16,011
|
14,542
|
+10.1%
|
|
Profit for the Period
|
1,504
|
1,275
|
+18.0%
|
|
Core profit 1
|
1,541
|
1,312
|
+17.4%
|
|
Profit attributable to owners of the parent
|
1,166
|
876
|
+33.1%
|
|
Core profit attributable to owners of the parent 1
|
1,203
|
913
|
+31.7%
|
|
|
|
2021.06.30
|
2020.12.31
|
Changes
|
|
Cash and cash equivalent
|
44,450
|
42,973
|
+3.4%
|
|
Net debt to total equity ratio
|
57.2%
|
64.7%
|
-7.5pts
|
|
Cash to short-term debt ratio
|
2.2x
|
2.2x
|
No Change
|
|
Liabilities to asset ratio (Exclude
contracted liabilities)
|
72.4%
|
76.6%
|
-4.2pts
|
|
Short-term debt to total debt ratio
|
28.5%
|
29.1%
|
-0.6pts
|
|
Weighted average cost of borrowings
|
6.35%
|
6.5%
|
-15bps
|
|
HONG KONG SAR - Media
OutReach - 23 August 2021 - Zhenro
Properties Group Limited ("Zhenro Properties" or "the Group"; stock code: 6158), a leading PRC property
developer, announced its unaudited interim results for the six months ended 30
June 2021 (the "Period").
Results
During the Period, the Group achieved a solid growth
in results. Its revenue increased by 10.1% year-on-year to RMB16.01 billion. Profit for the Period was RMB1.50 billion, representing a year-on-year
increase of 18.0%. Net profit margin went up to 9.4%. The core
profit1 was RMB1.54 billion, representing
a year-on-year increase of 17.4%. Core profit margin was 9.6%. The profit attributable to owners
of the parent increased significantly by 33.1%
year on year to RMB1.17 billion; and the core profit attributable to owners of the parent1 increased significantly by 31.7%
year on year to RMB1.20 million. The Board has resolved not to distribute interim
dividends for the six months ended 30 June 2021.
Steady
Growth in Contracted Sales
In the first half of
2021, the impact of the novel coronavirus pandemic on the national real estate
market gradually weakened, and the abundant liquidity continuously unlocked the
previously accumulated essential housing demand. With the Group's precise
project development plan, high-quality products, sufficient saleable resources
and efficient sales and marketing strategies, it successfully achieved
contracted sales of RMB82.299 billion during the period, representing a
year-on-year increase of 47.0%, and achieved 54.9% of the annual sales target
of RMB150 billion.
Sound Investment Focusing on Deep Penetration in First- and Second-Tier
Cities
The Group adhered to the
strategy of "regional penetration", focused strategically on first- and
second-tier cities with strong fundamentals, and forayed into two core cities,
namely Guangzhou and Hangzhou, further pushing the national layout development
and laying a foundation for sustainable high-quality development in the future.
During the period, the total gross floor area ("GFA") of the Group's newly
acquired land bank was approximately 3.56 million sq.m., of which 33%, 28% and 24%
were located in three core regions, namely the Yangtze River Delta Region,
Western Taiwan Straits Region and the Pearl River Delta Region, respectively,
while the rest was located in the Central and Western China Region and Bohai
Rim Region. In terms of the tiers of cities, 90% of the newly acquired land
bank were located in first- and second-tier cities which had a vibrant economy
and considerable population. As at 30 June 2021, the Group had a land bank with
an aggregate GFA of about 29.30 million sq.m. in 35 cities in the PRC, of which
82% was located in first- and second-tier cities.
Decreased Financing Cost and Sound Financial Performance
In
the first half of 2021, the Group successfully
seized several financing opportunities and continued to lead the industry in
green financing practice. During the period, the Group issued new green senior
notes with an aggregate amount of US$1.26 billion and the average financing
cost declined to 6.7%. At the same time, the Group repaid and early redeemed
senior notes with an aggregate amount of approximately US$1.08 billion. The
Group's weighted average financing cost of borrowings was further reduced to 6.35% at the end of the Period (end of 2020: 6.5%)
through the abovementioned debt swaps. As at 30 June 2021, the Group's major
credit ratios remained at an industry healthy level, including short-term debt
to total debt ratio of 28.5% (end of 2020: 29.1%), net debt-to-equity ratio of 57.2%
(end of 2020: 64.7%), cash-to-short term borrowing ratio of 2.2 times (end of
2020: 2.2 times) and liabilities to asset ratio (excluding advanced sales
proceeds) of 72.4% (end of 2020: 76.6%), it is expected that all "three red
lines" will be fulfilled.
The Group has been recognized
by credit rating agencies for its prudent financial management and overall
strength. During the Period, Fitch Ratings, an international rating agency,
upgraded the Company's rating outlook to "positive" and affirmed the Company's issuer
credit rating at "B+". Moody's maintained the Company's credit rating of B1
(stable). In terms of domestic market, Zhenro Property Holdings Company
Limited, a wholly-owned subsidiary of the Company, was assigned "AAA" corporate credit rating (which is the highest
rating) with a "stable" outlook respectively by China Chengxin International
Credit Rating Co., Ltd. and Dagong Global Credit Rating Co., Ltd.
Good Corporate Governance and Exploration of ESG Practice
As a pioneer in implementing ESG philosophy in
the real estate industry, the Group has incorporated ESG objectives into its
strategic plan for long-term development. In terms of green development and
environmental protection, the Group has set the construction of
environment-friendly and green buildings as the focus of its internal
environmental protection policy, and invested in supporting innovative product
design, so as to effectively utilize materials, energy and space, etc., thus
protecting the environment from the source. As at 30 June 2021, a total of 16
projects of Zhenro Properties were granted "China 2 or 3-star green building
certificates" with a total GFA of 1.69 million sq.m. In terms of green
financing, as at 30 June 2021, the Group issued green senior notes with an
aggregated amount of US$1.81 billion to support the refinancing of its green
projects covering green building, energy efficiency, renewable energy,
prevention and management of pollutants and management of sustainable water
management. During the period, the Group received a BBB ESG rating from China Chengxin Lvjin (Beijing) Co.,
Ltd., which was the highest rating given among the real estate enterprises
assessed in the year. In addition, the Post-issuance Stage Certificate from
Hong Kong Quality Assurance Agency and a green evaluation score of E1/86 (where
E1 was the highest rating) from S&P were granted for two green senior notes
issued in September and November 2020, respectively, which shows the
significant environmental benefits reaped from the green projects of the Group.
Besides, the Group also obtained several international awards and honors,
reflecting the Group's investment value has been well recognized by all parties.
Looking ahead, Mr. Huang Xianzhi, Chairman of the Board said,
"In the second half of the year, "stabilizing the land prices, property prices
and expectations" remains the main keynote of government policies. The recent
continuous adjustment and optimization of land supply policy are expected to
slow down the growth of land price, stabilize the housing price trend and
promote the long-term healthy development of the real estate industry.
Considering the rigid housing demand arising out of the continuous advancement
of new urbanization and the demand for improved housing resulting from the
increase in the proportion with stable income group, the prospect of the real
estate market remains promising in the long term. In addition, under the
influence of the policies of "three red lines" and two caps on real estate
loans and individual housing loans, the real estate industry will continue to
deleverage comprehensively, and a differentiated financing environment has
gradually taken shape with the real estate enterprises with high leverage and
those of small and medium size being under greater capital and financing
pressure. In order to achieve the goal of "high quality growth", the Group put
forward the "four focuses" policy, and will continue to give full play to our
product, brand, capital, talent and operation advantages. Meanwhile, the Group
will continue to fulfill its corporate social responsibility, strengthen its
ESG work, and strive to become a high-quality and socially responsible
enterprise."
1 Defined as net profit excludes changes
in fair values of investment properties and financial assets, exchange gain or
loss, impairment losses and the relevant deferred taxes
Penerbit bertanggung jawab penuh atas isi pengumuman ini