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Balanced Growth Prudent Development
Core net profit of RMB2,870 million, increased by 17.3% yoy
Core net profit margin at 14.3%
Proposed interim dividend of HK10 cents per share, up 43% yoy
Ranked 14thnationally in terms of contracted sales of RMB88.44 billion in 1H 2019
Contracted sales soared by33.9% Cash collection ratio reached 95%
2019 INTERIM RESULTS HIGHLIGHTS:
- Core net profitreached RMB2,870 million, up 17.3% year-on-year. Adjusted gross profit marginand core net profit margin amounted to 34.5% and 14.3% respectively.
- Proposed interimdividend of RMB8.93 cents ( or equivalent to HK10 cents) per share, increased by 42.9% year-on-year.
- Contracted salesand contracted gross floor area reached RMB88.44 billion and 5,088,200 sq.m.respectively, representing strong year-on-year growth of 33.9% and 17.5%respectively. During the period, the average selling price was approximatelyRMB17,400/sq.m. The Group achieved a cash collection ratio of over 95% fromcontracted sales. In the first seven months of 2019, the Group alreadycompleted 54% of its full year 2019 contracted sales target of RMB190 billion.
- Abundant cash onhand amounted to RMB54.30 billion. Net debt-to-equity ratio was 69.5%. Weightedaverage cost of indebtedness was 5.9%, which was similar to that of last year.(As at the end of 2018: RMB44.62 billion, 67.2% and 5.8%)
- Strategicallyentered 3 new cities and expanded our geographical coverage and diversifiedinto cities with different tiers. CIFI was ranked 14th nationally in terms ofcontracted sales amount in the first half of 2019 according to the "China RealEstate Enterprises Sales Ranking in the First Half of 2019" published by CRICInformation Group.
- International andonshore credit rating agencies continued to endorse CIFI's efforts in sales,disciplined land-bank expansion and prudent financial management. Fitch andMoody's maintained the Company's credit rating at "BB" (with "Stable" outlook)and "Ba3" (with "Positive" outlook) respectively, while Standard & Poor'supgraded the Company's credit rating outlook to "BB" (with "Stable" outlook).China Chengxin Credit Ratings, United Ratings and China Lianhe Credit Ratingeach assigned "AAA" onshore credit ratings.
- Establish CIFIcommercial headquarter to develop featured business in core cities.
- The Group is confident that itwill exceed the full-year contracted sales target of RMB190 billion for 2019.
HONG KONG, CHINA - Media OutReach - 13 August 2019 - CIFI Holdings (Group) Co. Ltd.("CIFI" or the "Group", HKEx stock code: 884), a leadingreal estate developer engaged in the property development and investmentbusiness in the first-, second- and robust third-tier cities in China, ispleased to announce its interim results for the six months ended 30 June 2019.
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| Six months ended 30 June |
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| 2019
| 2018 | Year-on-year growth |
| Contracted sales |
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| Contracted sales (RMB'million) | 88,440 | 66,032 | +33.9% |
| Contracted GFA (sq.m.) | 5,088,200 | 4,331,800 | +17.5% |
| Contracted ASP (RMB/sq.m.) | 17,382 | 15,314 | +13.5% |
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| Selected financial information (RMB'million) |
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| Recognized revenue | 20,063 | 18,421 |
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| Profit for the period attributable to equity owners | 3,194 | 3,419 |
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| Core net profit attributable to equity owners | 2,870 | 2,446 |
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| Selected financial ratios |
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| Gross profit margin (adjusted) | 34.5% | 33.7% | +0.8p.p |
| Core net profit margin | 14.3% | 13.3% | +1.0p.p |
| Earnings per share (basic), RMB cents | 41 | 45 |
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| Core earnings per share (basic), RMB cents | 37 | 32 |
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| As at | As at |
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| Selected balance sheet data (RMB'million) |
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| Total assets | 302,041 | 241,061 |
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| Bank balances and cash | 54,300 | 44,618 |
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| Total indebtedness | 94,768 | 77,865 |
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| Total equity | 58,195 | 49,446 |
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| Equity attributable to equity owners | 27,369 | 25,604 |
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| Net debt-to-equity ratio | 69.5% | 67.2% |
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| Weighted average cost of indebtedness | 5.9% | 5.8% |
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| Land bank (GFA, million sq.m.) |
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| Land bank (GFA, sq.m.) at the end of period |
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| - Total | 46.8 | 41.2 |
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| - Attributable | 23.4 | 20.7 |
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The Group believes thatChina's real estate policies will remain tight in the second half of 2019 andintensity of the real estate control measures is likely to loosen dramatically.The current tight liquidity environment is expected to persist in the nearfuture. As a result, China's overall real estate sales volume could continue tosoften in the second half of 2019. In view of this, its proactive land-bankingstrategy last year and year-to-date in 2019 has effectively diversified the landbank to cover 63 cities in different geographical regions. The Group continuesto emphasize on first and second-tier cities, and its land bank now also coversgrowing number of selective third-tier cities which have strong real estatedemand and different policy cycles. Supply of saleable resources of the Groupare estimated to amount to over RMB350 billion for the full year of 2019. TheGroup is confident that its massive and well diversified portfolio of saleableresources acquired at reasonable land costs will be defensive in the currenttight real estate environment. The Group is confident that it will exceed thefull-year contracted sales target for 2019.
Mr. Lin Zhong, Chairman and Executive Director of the Group said, "As alarge-scale national real estate developer, CIFI possesses balanced and qualitysaleable resources and prudent financing management, which have demonstratedour resilience against a challenging policy environment. During the process ofmarket consolidation and concentration, the Group is also mindful on our brandrecognition and product quality enhancement, while we are gaining size in termsof sales. With that, we can achieve balanced development and qualitativeprosperity, hence generating decent returns to our shareholders."
About CIFI (Group)
Headquartered in Shanghai, CIFI is one of China's top real estatedevelopers. CIFI principally focuses on developing high-quality properties infirst-, second- and selective third-tier cities in China. CIFI develops varioustypes of properties, including residential, office and commercial complexes.
To learn more about theCompany, please visit CIFI's website at: https://www.cifi.com.cn
