- Proposed interim dividend of HK11 cents per share
- Contracted sales and cash collection for first seven months both exceeded RMB 100 billion
CHINA – Media OutReach – 28 August 2020 – CIFI Holdings (Group) Co. Ltd. (“CIFI” or the “Group”, HKEx stock code: 884), a leading real estate developer engaged in the property development and investment business in the first-, second- and robust third-tier cities in China, is pleased to announce its interim results for the six months ended 30 June 2020.
Achieved quality sales and strong execution capability; continued to generate long-term returns to shareholders:
- In 1H, contracted sales amounted to RMB80.73 billion with cash collection ratio from property sales achieved over 95%, maintaining a leading position in the industry. Contracted sales in June amounted to RMB25.13 billion, which hit the monthly sales record high.
- Revenue was RMB23.02 billion, an increase of 11.3 % yoy.
- Core net profit attributable to equity owners was RMB3,194 million, an increase of 11.2% yoy.
- Gross profit margin and core net profit margin stood at 25.6% and 13.9% respectively.
- Core return-on-equity (ROE) was 23.2% and maintained a leading position in the industry.
- Declared interim dividends for six consecutive year. Proposed interim dividend was RMB9.8 cents per or equivalent to HK11 cents per share. (2019 Interim dividend: RMB8.9 cents or equivalent to HK10 cents)
- Abundant cash on hand amounted to RMB59.4 billion as at 30 June 2020. (As at the end of 2019: RMB59.0 billion)
Diversified and quality land bank to fuel future business growth:
- New GFA of 4.65 million sq.m was added in 1H while attributable equity interest increased to 69%. More than 90% of land located in first-, second-tier cities and new saleable resources of RMB84.0 billion were added.
- Acquired nine land projects with a zero land premium through diversified channels in 1H, which are located at Qingdao, Changsha, Chonqing, etc.. Aggregate saleable resources to invested land premium ratio cost is 3.3x. Land acquisition through diversified channels accounted for nearly 40% of the total land acquisition, in terms of attributable GFA.
- Acquired multiple mixed-use projects year-to-date, steadily developing CIFI premium commercial property or real estate.
Decreased in financing costs and strengthened the debt structure:
- Prudent financial management, high risk resistance and sound debt control. In 1H, net debt-to-equity ratio was 63.2%, with an improvement of 2.4 percentage points compare with the end of 2019. As at 30 June 2020, total indebtedness amounted to RMB105.27 billion which was similar to that of last year.
- Continued to optimize finance costs. Weighted average interest cost of indebtedness was 5.6% in 1H, with an improvement of 0.4 percentage points compare with the end of 2019.
Enhanced financial strength and further optimized shareholder structure:
- In June 2020, the Group issued 185 million news shares at HK$6.28 per share, which generated net proceeds of approximately HK$1,153 million. The share placement introduced long-term shareholders and further optimize the shareholder structure and enhance the liquidity of shares.
- Completed the consolidation of Ever Sunshine Lifestyle Services (HKEx stock code: 1995). The consolidation will drive the dual branding development of property development and management businesses, create higher value for both shareholders and bring positive contribution towards the Group’s medium and long-term credit rating.
Abundant Saleable Resources in 2H to ensure to accomplish the annual contracted sales target in 2020:
- For the seven months ended 31 July 2020, the Group’s contracted sales and cash collection exceeded RMB100 billion. Contracted sales for the first seven months amounted to RMB102.72 billion which accounted for 45% of its 2020 full year contracted sales target.
- High-quality land bank has covered over 80 cities in different geographical regions, over 90% of which was located at first- and second-tier cities with positive outlook as well as robust third-tier cities with continuous economic development. The expected saleable resources in 2H 2020 are over RMB280.0 billion. The Group is confident of completing its 2020 full year contracted sales target.
Persist in carrying out corporate social responsibility, won the regonition from capital market:
- In July 2020, the Group published its first standalone Environmental, Social and Governance (ESG) report, which the formulation and implementation of the annual targets of ESG are incorporated into the long-term development strategic planning of the Group. The persistent enhanced green construction, proactive promotion of anti-corruption and integrity, great emphasis on the occupational safety and health of the employees, and proactive performance of social responsibility to achieve high standard of ESG management.
- Include as a constituent of the Hang Seng Corporate Sustainability Benchmark Index and Hang Seng China (Hong Kong-listed) 100 Index and futhur enhance its investment value.
- Won multiple awards for the fourth consecutive year in the “All-Asia Executive Team Rankings” organized by Institutional Investor, an international financial magazine. CIFI has been ranked as top 3 of several categories in property sector in 2020, and named as one of the “Honored Companies” in Asia.
2020 is the 20th anniversary of the establishment of CIFI. The Group has exceeded the sales amount of RMB200 billion in 2019, and has become one of the top 20 developers in China’s real estate industry. Looking forward, the management of the Group will uphold the long-term development strategy, persistently improve the corporate operation efficiency, follow the principle of prudent management of finance, and build up the soft and hard powers to defend the market volatility. Meanwhile, the Group puts great significance on promoting its management standard on environmental protection, social responsibility and corporate governance, which will be uplifted to the level of the Group’s strategic planning. We pledge full commitment to forge CIFI as one of the top 500 enterprises in the world with outstanding results, persistent performance of social responsibility and excellent corporate governance.
Mr. Lin Zhong, Chairman and Executive Director of the Group said, “As a large-scale developer with national coverage, CIFI have proven our ability to achieve efficient and high asset-turnover operating strategies. Our efficient operations stress short development cycles, high cash turnover, defensive debt positions as well as balanced profitability. We believe we will continue to generate encouraging returns to our shareholders.”
About CIFI (Group):
Headquartered in Shanghai, CIFI is one of China’s top real estate developers. CIFI principally focuses on developing high-quality properties in first-, second- and robust third-tier cities in China. CIFI develops various types of properties, including residential, office and commercial complexes.
