2017 Interim Results Announcement | In the first half of 2017, Times Property recorded sales volume of over RMB17 billion, accomplishing 52.4% of the annual targets, and core net profit of RMB940 million, a year-on-year increase of 81.4%
Times Property Holdings Limited (stock code: 01233.HK) issued the 2017 Interim Results Announcement on August 3, 2017, and held a conference the next day in Hong Kong. The announcement of results showed that, during the first half of 2017, Times Property achieved steady growth in contract sales volume, turnover, profit and other core indicators as part of its program designed to maximize the implementation of the company's strategy of seeking in-depth development in the Greater Bay Area and building a solid foundation for future development.
Steadily increasing core indicators
In the first half of 2017, despite the intensive launch of regulatory policies, Times Property attained remarkable growth momentum by virtue of its outstanding operational capacity.
The company's sales volume continued to increase as well. For the first half, the contract sales volume was RMB17.03 billion, growing 27.5% year-on-year and fulfilling 52.4% of the annual target, which is RMB32.5 billion.
The Group's profitability continued to improve. Profit for the first half was approximately RMB800 million, representing an increase of 51.3% over the corresponding semester of the previous year. Core net profit was recorded at RMB940 million, rocketing upward 81.4% year-on-year. The gross profit margin and core profit margin were 26.4% and 10.7%, respectively.
The Group's financing cost was reduced during the period of reporting, and its financial stability was sound. Significantly, the average financing cost of Times Property was reduced from 8.32% in 2016 to 7.30% at the end of June 2017. Given the reduction in financing cost, Times Property also maintained steady liquidity. As of June 30, 2017, the Group held a RMB 13.1 billion cash balance, representing an increase of 10.5% as compared to that of December 31, 2016, this amount being sufficient to cover short-term liabilities due within the course of the year.
Times Property has also increased its reserve of prime land, doing so through multiple channels. During the first half of 2017, the Group acquired nine projects covering a total planned floor area of 1,886,000 square meters. As of June 30, 2017, it had a total land reserve of 14,500,000 square meters, an amount sufficient for the next three to five years of development.
As of June 30, 2017, Times Property had expanded its layout to cities in the Pearl River Delta region such as Guangzhou, Shenzhen, Foshan, Dongguan, Zhuhai, Huizhou, Zhongshan and Qingyuan, and Changsha (in Hunan) as well as other developed cities, thus amassing a total of 62 projects at various phases of development. The projects on the market have been very well received, and consequently market share has grown.
· Times Property Group Chairman Shum Chiu Hung (right) and CFO Lui Wai Pang (left) answer questions from reporters
Focusing on the Guangdong-Hong Kong-Macao Greater Bay Area and increasingly prominent investment value
In terms of regional layout, Times Property has upheld a strategy of regional focus and continues to invest in the metropolitan area of the Pearl River Delta. In 2017, the central government positioned the Guangdong - Hong Kong - Macao Greater Bay Area as a world-class region, which not only affirms the foresight of Times Property's strategic layout but also brings vast development opportunities for the Group, which has for many years pursued in-depth development in the Pearl River Delta. In fact, most of the land reserve, urban renewal projects and Smart Town projects of Times Property are concentrated in the Guangdong - Hong Kong - Macao Greater Bay Area. With emergence of the location advantages, the value of existing projects and projects to be developed will greatly increase. Thus the Group's investment value and development potential in this region will become even more significant.
· Times Property Group CFO Lui Wai Pang makes Results Announcement for the first half of 2017
Sticking to in-depth development in cites and establishing a regional leading role
Times Property will continue to engage in-depth development in the markets where it is already present, expand its land reserve through various channels such as bid tenders, auctions, listings, acquisitions, mergers and cooperation. Most importantly, it will participate in the renewal of major cities in the Pearl River Delta. With rich experience accrued over years, combined with abundant resource channels, it will obtain high-quality and lower-priced land resources to lay the foundation for future sustainable development. With increasing investment in cities where it is already present, and through the continuous expansion of market share and influence, Times Property will solidify its dominance in the market.
· Times Property Group Chairman Shun Chiu Hung answers reporters' questions
Realization of diverse development and extension of business prospects
Times Property also actively develops community services, commerce, innovative office parks, smart towns, and other businesses and projects, including those related to home furnishings.
According to the announcement, during the first half of 2017, thanks to the expansion of the management scale and the construction of an integrated life-service platform, revenue from the property-management sector increased to RMB179 million for 2016, moving up from the previous year's figure of RMB108 million for a surge of 65.9%. Revenue from commercial property leasing and subleasing stood at RMB147 million.
Additionally, Times Property actively supports China's supply-side reform and new urbanization development. Since it launched the "Times Smart Town" strategy in 2016, great progress has been made in its active construction of smart towns. To date it has signed over ten framework agreements on cooperative development of Times Smart Town projects with the local governments of Guangzhou, Foshan, Dongguan, Zhuhai, Huizhou, Zhongshan, Changsha and others
Clearly the business value chain of Times Property has been enriched. Its development space and prospect has also been expanded.
Times Property will continue its plan of in-depth development in the Guangdong - Hong Kong - Macao Greater Bay Area as it responds to market changes. In the process, it will continue an abiding commitment to providing residential, commercial, office, industrial and other whole-chain product and service solutions for cities.