An established property developer in the PRC focusing on developing quality residential properties in the Yangtze River Delta Megalopolis for customers of all ages, Yincheng International Holding Co., Ltd. (“Yincheng International Holding” or the “Company”, together with its subsidiaries, the “Group”, Stock code: 1902) is pleased to announce its unaudited consolidated interim results for the six months ended 30 June 2021 (the “Period”).
During the Period, the Group achieved contracted sales amount of approximately RMB 16.5 billion, representing an increase of 170% YoY. Revenue of approximately RMB 3.79 billion. The gross profit was approximately RMB 689.3 million with gross profit margin increased by 2.5 percentage points YoY to 18.2%. The profit for the period was approximately RMB 298.1 million, and the net profit margin increased by approximately 1.3 percentage points YoY to 7.9%.
Ample Land Reserve Resources Enable Precise Key Market Deployment
Yincheng International Holding consistently adhered to the development strategy of “based in Nanjing, cultivate the Yangtze River Delta Megalopolis”. During the period, the Group has acquired a total of 12 high-quality land parcels with GFA of over 2.4 million sq.m., which are mainly located in the core cities of the Yangtze River Delta Megalopolis such as Nanjing, Wuxi and Hangzhou, marking its further development in the five regional markets and commitment to its existing strategies. The Group’s first foray into Huai’an at the beginning of the year acquired high-quality land parcels with a total GFA of nearly 130,000 sq.m., achieving more balanced business presence in the Yangtze River Delta Megalopolis. Leveraging on the Group’s efficient development and operation capabilities, some of the projects will be launched within this year, contributing to the contracted sales for the year.
Under “Dual-concentrations” policy, it continues to benefit the expansion of Yincheng International Holdings in such region as a leading enterprise in such region. At the same time, the Group made an early layout, appropriately adjusted its investment and expansion strategy, proactively acquired high-quality land parcels with suitable location which meet the investment criteria in the centralised land supply, in order to prepare for the next development. As at 30 June 2021, the Group had a land bank with an aggregate estimated GFA of over 7.57 million sq.m., out of which the land bank with interests attributable to the Group amounted to approximately 5.22 million sq.m.. As at 30 June 2021, the Group had 58 projects located in 10 cities in the PRC, of which 37 projects were developed and owned by the Group and the remaining 21 projects were developed and owned by the Group’s joint ventures and associates.
Adjusted Project Launch Schedule in a Timely Manner to Achieve Rapid Growth in Business
With the positive results of the epidemic prevention and control measures since 2021, the real estate market has been gradually recovering and has shown a stable growth trend. In response to the recovery of the market, Yincheng International Holding adjusted its project launch schedule in a timely manner and promoted its business through both online and offline channels. The Group has developed the ability of its sales staff to analyse project strengths, discover project highlights and expand customer base. In response to the trend of information transparency in the Internet era, the Group has been using various methods of digital marketing such as online mini-programs, social software and short-video live streaming platforms to achieve rapid growth in contract sales. During the six months ended 30 June 2021, the Group recorded total contracted sales of approximately RMB16,535.5 million, representing a significant increase of approximately 170.1% YoY. The total contracted sales GFA amounted to approximately 811,589 sq. m. with a contracted ASP of approximately RMB20,374 per sq.m., representing an increase of approximately 141.3% and 11.9% YoY, respectively. While Yincheng International Holding continues to cultivate the five regional markets, it has also increased its sales efforts in the first tier cities. The projects in Nanjing and Hangzhou contributed a total contracted sales of over RMB11.5 billion, accounting for approximately 70% of the total contracted sales. Among them, the projects Jin Ling Jiu Yuan and Yunwangfu in Nanjing, Guan Hu Zhi Chen and Qingshanhupan in Hangzhou continued to have good sales performance, with the four projects contributing in aggregate approximately 59% of the total contracted sales.
Obtained High Recognition from the Capital Market by Stable Comprehensive Strength and Excellent Projects
Yincheng International Holding maintains diversified financing channels and continues to strengthen and enhance both of our domestic financing strength and overseas financing capability to reduce financing risks. Relying on the stable business growth, excellent financial performance and results of operations, the Group has gained recognition from the capital market. On the second anniversary of its listing, the Group successfully issued US$165 million one-year senior notes in March 2021, marking the third successful issuance of US$ debt financing instrument. While the cost of such issuance continues to decline, the subscriber base has become more diversified, which fully reflected market’s recognition of the Company’s comprehensive strength and financial position. With the solid corporate strength and stable and substantial investment returns on US$ denominated senior notes, the Group was listed by BNP Paribas as one of the five recommended investment targets for US$ denominated bonds in the real estate sector and the shares of the Company were also given “buy” ratings among B-rated real estate companies, which fully demonstrated the affirmation of the capital market to the Group’s future development prospects.
The Group pursued placing equal emphasis on both quality and service and received various awards during the period, including “2021 Top 100 Listed Real Estate Enterprise in China” and “2021 Outstanding Human Resources Management Award”. In addition, a number of projects of the Group, including Peaceful Paradise and KINMA Q + Community, were granted various rewards in the selection of the “2020 Provincial Urban and Rural Construction System Outstanding Survey and Design Award” as announced by Housing and Urban-Rural Development Office of Jiangsu Province, which reflected excellent design quality and engineering capabilities of the Group, as well as its determination to develop quality residential properties for customers of all ages.
Strive to Achieve All of the “Three Red Lines” and Insist on Optimising Financial Indicators
Mr. Huang Qingping, the Chairman of Yincheng International, said “In 2021, under the complex economic environment and increasingly stringent regulatory requirements, our group member collectively endeavour to enhance our strengths as a regional real estate enterprise and maintain a rapid and steady growth. In the first half of the year, our sales achieved robust growth while the contracted amount and payment collection marked a record high. In addition, we continued to cultivate the deployment of the new first-tier cities such as Nanjing and Hangzhou, thus acquired profitable core land parcel. At the same time we expanded into Huai’an, achieved a breakthrough in cultivation and coverage, to further consolidated our leading position in the Yangtze River Delta Megalopolis. Following the promulgation of the ‘three red lines’ policy, the introduction of the ‘dual-concentrations’ policy further encouraged the plan to stabilise land prices, housing prices and market expectations’. Looking forward, we will continue to reduce and control leverage levels, reduce financing costs and optimise the debt structure, in order to gradually meet the control requirements under the ‘three red lines’ policy. We will actively adjust our development under the ‘dual-concentrations’ policy, maintain our existing land acquisition strategy to acquire high-quality land through the use of both pre-investment analysis and post-investment control, and making use of our diversified land acquisition experience to continuously improve project profitability. At the same time, we will focus on the rate of project realisation and improve the collection of receivables, gradually slow down the pace of land acquisition after achieving stable growth in scale to improve cashflow turnover. Furthermore, our Group is determined to enhance capabilities in all aspects according to our long-term development strategies, and shall continue to strive with the goal of becoming a leading real estate enterprise and generating more fruitful returns for our Shareholders.”
Today, Yincheng International held the 2021 interim results presentation online. Total of 115 fund managers, equity analysts and reporters participated in the event. The management gave the introduction of annual results and answered the participants’ questions.
About Yincheng International Holding Co., Ltd.
As an established property developer in the PRC focusing on developing quality residential properties in the Yangtze River Delta Megalopolis for customers of all ages, Yincheng International commenced its property development operations in Nanjing and successfully expanded its footprint to other cities in the Yangtze River Delta Megalopolis, including Wuxi, Suzhou, Zhenjiang, Hangzhou, Ma’anshan, Hefei, Xuzhou, and Taizhou. Adhering to the core development strategy of “leading quality, excellent services and Innovation” with an aim to developing quality property products “with healthy, comfortable, smart and convenient living environment for customers of all ages”, Yincheng International has been recognized by the Jiangsu Real Estate Association as one of the top 50 enterprises in the property development industry of Jiangsu Province in terms of comprehensive strength consecutively for 18 years since 2002 and ranked 1st on such list in 2019.
As at 30 June 2021, the Group had 58 projects located in 10 cities in the PRC, including Nanjing, Wuxi, Hefei, Suzhou, Hangzhou, Zhenjiang, Ma’anshan, Xuzhou, Taizhou, Wenzhou and Huai’an). The Group’s land bank with an aggregate estimated GFA of over 7.57 million sq.m., out of which the land bank with interests attributable to the Group amounted to approximately 5.22 million sq.m.. The high-quality land bank has laid a solid foundation for the Company’s future growth.
Topic: Press release summary