Redsun Services Group Limited (“Redsun Services” or the “Group”, stock code 1971), a fast-growing comprehensive community services provider focusing on the Yangtze River Delta, today announces the Group is expected to record an increase of not less than 50% in the adjusted profit attributable to equity owners of the Company (which is a non-HKFRS measurement and is calculated by excluding the effect of one-off listing expenses) during the six months ended 30 June 2020 as compared to that of the same period of last year.
Redsun Services recorded a substantial increase for its interim profit is mainly attributable to (i) the increase in the number of the Group’s projects under management; and (ii) the increase in income from value-added services to non-property owners and community value-added services.
Despite the challenging business environment under the COVID19 pandemic, Redsun Services still recorded encouraging results, fully demonstrates its solid business foundation and excellent prospects. Shortly after the successful listing of the Group in July, the positive profit alert announced today posted another joy for the Group. In the future, the Group will continue to execute the strategy to “penetrate Jiangsu province, explore the Yangtze River Delta and expand into urban agglomerations”, strengthening its leading position in Jiangsu province and expanding into selected key urban agglomerations and leveraging its current position in cities to explore neighborhood areas. It also plans to evaluate suitable acquisition opportunities in the Yangtze River Delta, Southwest China, South China and Central China.
About Redsun Services Group Limited Established in Nanjing in 2003, Redsun Services Group Limited is a fast-growing comprehensive community service provider focusing on the Yangtze River Delta. With a vision of “making lives warmer,” the Group has provided and endeavor to continue to “provide customers with high-quality services with sincerity” to serve its customers. The Group has established the regional leading position in the property management market of Jiangsu province and is well-recognised nationwide. The Group was recognized as one of the Top 100 Property Management Companies by CIA for four consecutive years since 2017 and ranked 25th among the 2020 Top 100 Property Management Companies in terms of overall strength.
(Left to right) Mr. Eddy Tang, Founder and CEO of Union Medical Healthcare; Ms. Ada Wong, CEO of Champion REIT and Mr. Louie Chung, Group Owner of LUBUDS F&B Group shared their personal insights
Champion Real Estate Investment Trust (“Champion REIT”) (Stock Code: 2778), owner of Three Garden Road and Langham Place, is pleased to have received overwhelming responses for its first-ever entrepreneur programme, “The Real Champion – Entrepreneur in Action”. More than 270 students have signed up for the programme while an online sharing and briefing session was held last Friday.
During the sharing session, business leaders including Ms. Ada Wong, CEO of Champion REIT; Mr. Eddy Tang, Founder and CEO of Union Medical Healthcare; and Mr. Louie Chung, Group Owner of LUBUDS F&B Group reflected upon their pathways to success. In particular, Ms. Ada Wong highlighted her career change from an iBanker to a CEO, and discussed the summer job experiences at Champion REIT. Mr. Eddy Tang, on the other hand, shared his insider story of choosing to run a business rather than being a doctor, and also mentioning the trainee opportunities available at Union Medical Healthcare. Moreover, Mr. Louie Chung talked about his road to successfully establishing a “F&B empire” and challenges encountered throughout the years.
Mr. Eddy Tang, Founder and CEO of Union Medical Healthcare, said, “While it was a tough decision to change my role from being a doctor to a business owner, I believe this was an absolutely right move when I look back. We focus in IT, service and brands, and consider continuous value creation is vital to the sustainability of every company. I do hope participants of this programme will be able to better develop their personal attributes and potential, the winners might also have a chance to be selected for our management trainee programme where the trainees will be offered opportunities to have management as their mentors.”
Mr. Louie Chung, Group Owner of LUBUDS F&B Group, said, “As an entrepreneur, I regard networking and doing what you have genuine interest in as the prime attributes of achieving success. Prior to my entrepreneurial career, I have already started investing in various businesses and continued to accumulate experiences for future possibilities. I do hope participants of this programme can understand what they are heading into and have a successful career in the future.”
Ms. Ada Wong, Chief Executive Officer of Champion REIT, said, “In my career, my professional roles as an iBanker and a CEO have both taught me the indispensable quality of perseverance and passion for career success. Needless to say, nurturing a splendid network with various parties to forge long-term relationship is also crucial. In my view, the programme will provide a good platform for students to acquire practical marketing skills, and I do hope that our sharing today have inspired the participants in one way or another. Moving forward, we will strive for providing youth development support while creating shared values for our business and stakeholders.”
“The Real Champion – Entrepreneur in Action” aims to provide tertiary students the opportunity to acquire practical business skills through the guidance of successful business leaders. Successful applicants will participate in a competition to boost the sales of Langham Place cash coupons by executing their marketing plans. The competition is taking place in July while the announcement of winners will be made in mid-August.
About Champion REIT (Stock Code: 2778) Champion Real Estate Investment Trust is a trust formed to own and invest in income producing office and retail properties. The Trust focuses on Grade-A commercial properties in prime locations. It currently offers investors direct exposure to 2.93 million sq. ft. of prime office and retail properties by way of two landmark properties, Three Garden Road and Langham Place, one on each side of the Victoria Harbour. Website: www.championreit.com
Champion Real Estate Investment Trust (“Champion REIT”) (Stock Code: 2778), owner of Three Garden Road and Langham Place, regards sustainability as a core part of its business strategy and culture. The Trust will therefore be organising The Real Champion – Entrepreneur in Action programme this summer to support youth development despite the challenging business environment. Its aim is to provide tertiary students the opportunity to acquire practical business and marketing skills through the guidance of successful business leaders.
As part of the programme, successful applicants will engage in a competition to boost sales of Langham Place cash coupons, specifically by devising and executing their own business and marketing plans, which will be conducted mainly online to allow greater flexibility. Winners will gain cash coupons as reward and various opportunities for further development, including CEO shadowing and mentoring. Ahead of the campaign, an online introduction and sharing session will be held on 3 July 2020. Business leaders, including Ms. Ada Wong, CEO of Champion REIT; Mr. Eddy Tang, CEO of Union Medical Healthcare; and Mr. Louie Chung, Group Owner of LUBUDS F&B Group, will offer personal insights into entrepreneurialism as well as marketing tips to participants. Details of the programme can be found here. https://stg.championreit.com/files/en/Champion%20Entrepreneur%20in%20Action_Programme_final.pdf
Ms. Ada Wong, Chief Executive Officer of Champion REIT, said, “In view of the limited internship and job opportunities available to students on the market due to the impact of pandemic this year, we strive to empower tertiary students through our first-ever entrepreneur programme. While growing our business, we recognise our responsibility to contribute to society. Going forward, we will do our utmost to integrate sustainable development into our business strategy, creating long-term value not only for our business, but also for the communities in which we serve.”
About Champion REIT (Stock Code: 2778) Champion Real Estate Investment Trust is a trust formed to own and invest in income producing office and retail properties. The Trust focuses on Grade-A commercial properties in prime locations. It currently offers investors direct exposure to 2.93 million sq. ft. of prime office and retail properties by way of two landmark properties, Three Garden Road and Langham Place, one on each side of the Victoria Harbour. Website: www.championreit.com
On June 11th, 2020, DL Holdings (1709.HK) announced a MOU for a significant transaction involving a capital of approximately $40 million HK dollars. According to the announcement, DL Holdings Group Ltd. will invest $5 million US dollars in Carmel Reserve LLC for a 28.5% stake in the company. Carmel Reserve LLC owns 891 acres of land in Carmel Valley which is located at San Francisco Bay Area in California, US. This project, ONE Carmel, planes to develop a premier community with 73 ultra-high-end residential lots. After acquiring securities business and establishing fund investment business, DL Holdings further added real estate development and global fund portfolios to expand its total asset and business lines.
U.S. real estate has always been an important part of global asset allocation, especially in San Francisco Bay Area and Silicon Valley. These places have been the favoured region in recent years. Due to the impact of the COVID-19, property prices in some areas have witnessed declines. However, both the volume and value of transactions of High-end houses and prime land lots have increased as more people chose to work from home. Particularly, in Bay Area and Silicon Valley, the new tech billionaires and wealthy families are actively purchasing land and even moving their corporate headquarters to more suitable areas for future working and living environment.
The core business of DL Holdings is the Multi-family office services for ultra-high-net-worth family clients and it has been in stable operation for nearly 10 years. The growing demand for real estate investments from Asian clients have prompted the firm to look around the World for high quality properties. This investment transaction will accelerate the expansion of DL Holdings, serve more family office clients, and contribute to the development and sales of the ONE Carmel project. DL Holdings is expected to benefit from the long-term asset appreciation and penetrate into a broader set of real estate investment opportunities globally. Headquartered in Hong Kong, DL Holdings has also established offices in San Francisco, Singapore, and Shanghai, to serve the global investment needs of family offices and family businesses.
For more details, please refer to WeChat official account: ONE Carmel
– Residential Properties segment under the Space Optimisation Business registered a revenue growth of 294.2% in 1H2020 as compared to 1H2019 due to increase in revenue from the co-work co-live business at 31 Boon Lay Drive and the new serviced residence project in Myanmar. – The Group’s Logistics Services Business continue to deliver consistent revenue growth of 7.9% in 1H2020.
Real estate management services group LHN Limited (“LHN”, and together with its subsidiaries, the “Group”) achieved a net profit after tax of approximately S$3.5 million for the six months ended 31 March 2020 (“1H2020”).
The Group’s revenue decreased by 3.7% from approximately S$53.6 million in 1H2019 to approximately S$51.6 million in 1H2020, due to decrease in revenue from the Industrial Properties and Commercial Properties from the Space Optimisation Business and the Facilities Management Business. The decrease was partially offset by the increase in revenue from the Residential Properties of our Space Optimisation Business and Logistics Services Business.
Cost of sales decreased by 28.3% from approximately S$41.4 million in 1H2019 to approximately S$29.7 million in 1H2020, due to a decrease in (i) manpower cost under the Facilities Management Business as a result of the disposal of the security services business in May 2019; and (ii) rental costs due to the adoption of IFRS 16 on 1 October 2019. The decrease was partially offset by the increase in (i) depreciation of right-of-use assets due to adoption of IFRS 16; (ii) upkeep and maintenance costs mainly from the Facilities Management Business and Logistics Services Business; and (iii) depreciation of property, plant and equipment.
Space Optimisation Business contributed 56.5% of the Group’s total revenue for 1H2020. Residential Properties segment contributed a rise of 294.2% in revenue mainly due to increase in revenue of approximately S$3.2 million mainly from the co-work co-live business at 31 Boon Lay Drive Singapore which started to generate revenue from the second quarter of our financial year ended 30 September 2019 (“FY2019”); and (ii) revenue of approximately S$0.6 million from our new serviced residence project in Myanmar which started to generate revenue in the fourth quarter of FY2019.
However, revenue from Industrial Properties declined by 21.1% in 1H2020 as compared to 1H2019 mainly due to derecognition of revenue of approximately S$5.1 million from subleases classified as finance lease and the net gain was recognised to retained earnings on 1 October 2019 upon adoption of IFRS 16.
The decrease for the Industrial Properties was partially offset by (i) increase in rental income as a result of higher occupancy rates; and (ii) the contribution of rental income from one new property acquired and tenanted since the second quarter of FY2019.
The average occupancy rate of the Group’s Industrial Properties increased by 2.1 percentage points to approximately 89.9% in 1H2020 as compared to 87.8% in 1H2019.
For the Commercial Properties, revenue declined by 16.7% in 1H2020 as compared to 1H2019 mainly due to (i) the movement of tenants due to expiry of subleases; (ii) renewal of subleases at lower rate; and (iii) derecognition of revenue of approximately S$0.8 million from subleases classified as finance lease and the net gain was recognised to retained earnings on 1 October 2019 upon adoption of IFRS 16.
The average occupancy rate of the Group’s Commercial Properties decreased by 6.0 percentage points to approximately 84.5% in 1H2020 as compared to 90.5% in 1H2019.
The Group’s Facilities Management Business declined by 7.8% in 1H2020 from approximately S$10.5 million in 1H2019 to approximately S$9.7 million in 1H2020 due to the absence of revenue of approximately S$2.6 million from the security services business as a result of the completion of the disposal of the security services business as disclosed in the announcement dated 31 May 2019. This was partially offset by the increase in (i) revenue of approximately S$1.5 million from the management of new carparks in Singapore and Hong Kong; and (ii) revenue of approximately S$0.3 million from the increase in facilities management services provided.
The Group’s Logistics Services Business continued to produce incremental revenue growth, rising 7.9% from approximately S$11.8 million in 1H2019 to approximately S$12.7 million in 1H2020 mainly due to increase in transportation services provided from the trucking business and an increase in demand for storage and repairs of leasing containers in Thailand.
The coronavirus (“COVID-19”) pandemic has led to a severe contraction in economic activity both in Singapore and globally, due to the combination of supply chain disruptions, travel restrictions imposed in many countries and a sudden decline in demand. The Singapore economy will enter a recession this year, with GDP growth projected at -4% to -1%[1].
Based on advance estimates as announced in the press release dated 26 March 2020 issued by the Ministry of Trade and Industry Singapore[2], the Singapore economy contracted by 2.2% on a year-on-year basis in the first quarter of 2020, reversing the 1.0% growth in the preceding quarter. On a quarter-on-quarter seasonally-adjusted annualised basis, the economy shrank by 10.6%, a sharp pullback from the 0.6% growth in the previous quarter.
As announced on 29 April 2020, the Group is assessing the potential impact of the circuit breaker measures announced by the Singapore Government on 3 April 2020[3] and 21 April 2020[4] and the Covid-19 (Temporary Measures) Act 2020 which was passed on 7 April 2020. For further details, please refer to the Company’s announcement dated 29 April 2020.
In view of the abovementioned, the Group expects that rental collections under its Space Optimisation Business are likely to be affected, in particular, for rental collections for subleases of the Group’s commercial and industrial properties.
For our overseas projects under the Space Optimisation Business, the spread of COVID-19 around the world has also resulted in the delay of the renovation of our leased property in Nanan City, Quanzhou, Fujian Province, the People’s Republic of China and the construction of our Axis Residences property in Cambodia. However, the Group expects both projects to be operational by the end of our financial year ending 30 September 2020.
As announced on 4 February 2020, Work Plus Store (Kallang Bahru) Pte. Ltd., a joint venture company of the Group, has completed the acquisition of a property at 202 Kallang Bahru in Singapore and is expected to commence renovations on or after 1 June 2020 due to the circuit breaker measures and subject to any further directive(s) from the Singapore Government.
With respect to the Facilities Management Business, the Group continues to seek more external facilities management contracts by providing integrated facilities management services covering repair, maintenance and cleaning of buildings and offices, pest control and fumigation.
For the carpark business in Singapore, the Group expects a potential decrease in parking activity in view of the circuit breaker measures and safe distancing measures implemented by the Singapore Government since March 2020.
With respect to the Logistics Services Business, the Group remains cautious as a decrease in logistics services and a delay in collection of receivables may be possible in the coming periods given the decline in global economic activity.
Looking ahead, the Group will monitor the situation carefully and will make further announcement(s) as and when there are material development(s) to the abovementioned matters.
LHN Limited (the “Company”, and together with its subsidiaries, the “Group”) is a real estate management services group, with the ability to generate value for its landlords and tenants through its expertise in space optimisation, and logistics service provider headquartered in Singapore.
The Group currently has three (3) main business segments, namely: (i) Space Optimisation Business; (ii) Facilities Management Business; and (iii) Logistics Services Business, which are fully integrated and complement one another.
Under its Space Optimisation Business, the Group primarily secures master leases of unused, old and under-utilised commercial, industrial and residential properties and through re-designing and planning, transforms them into more efficient usable spaces, which are then leased out by the Group to its tenants.
Space optimisation generally allows the Group to enhance the value of properties by increasing their net lettable area as well as potential rental yield per square feet.
The Group’s Facilities Management Business offers car park management services and property maintenance services such as cleaning, landscaping, provision of amenities and utilities, and repair and general maintenance principally to the properties it leases and manages, as well as to external parties.
Under its Logistics Services Business, the Group provides transportation services, container depot management services and container depot services. The Group transports mainly ISO tanks, containers, base oil and bitumen, provides container depot management services and provides container depot services which include container surveying, container cleaning, on-site repair and storage of empty general purpose and refrigerated containers (reefer).
The Group currently operates mainly in Singapore, Indonesia, Thailand, Myanmar, Malaysia and Hong Kong.
Issued for and on behalf of LHN Limited For more information please contact: Jess Lim Bee Choo Group Deputy Managing Director E-mail: jess.lim@lhngroup.com.sg
Huijing Holdings Company Limited (“Huijing Holdings” or the “Group”; Stock code: 9968), an integrated residential and commercial property developer in the PRC, with a foothold in the Greater Bay Area, has announced that the Group will be included as a constituent of the MSCI China All Shares Small Cap Index effective after the market close on 29 May 2020.
MSCI Indexes cover companies with good operational results and solid potential. Those stocks selected meet various criteria including market capitalisation, liquidity and free float and thus are benchmarks in global equity markets.
Being selected as a constituent of the MSCI China All Shares Small Cap Index demonstrates recognition to the market of the Group’s business development. As an integrated residential and commercial property developer in the PRC with a foothold in the Greater Bay Area, leveraging the advantages of a successful presence in the Guangdong-Hong Kong-Macau Greater Bay Area, rich quality land reserves and an excellent product and strong service capability, the Group has thereby achieved a remarkable performance. Looking ahead, the Group will continue to regard urban renewal projects as its central focus and consider cultural and tourism health care towns and scientific and technology innovation industrial towns as complementary concerns in order to consistently seize development opportunities in the market. In line with the Group’s mission “inspiring growth together”, the Group will strive to strengthen its overall competitiveness and generate promising returns for shareholders.
In light of COVID-19, its effect on SMEs in Singapore and the extension of the Circuit Breaker, Found8 has launched a membership relief of 30% for the months of May, June and July to all of their active members. Found8 understands that this is the largest and longest relief passed to coworking users in Singapore to date
Found8 is a curated, innovation-focused, coworking provider with over 1000 members across Singapore and Kuala Lumpur, Malaysia. It is the leading coworking space for the startup and innovation community. Offering capacity-building programs, corporate innovation services, and access to capital, Found8 enables its game-changing members to collaborate and grow.
Found8 co-founder Grace Sai commented, “Although we’ve received support from only some of our landlords, we have decided to take on the bulk of responsibility of supporting our members by taking this relief primarily out of our own pocket. We are a community that has a set of strong values that includes ‘Care Beyond Profit’ and that has not wavered, even during a crisis. In fact, a crisis like this tests the values system of coworking operators, and whether they truly are member-centric as most claim to be, in good times.”
Found8 co-founder Michelle Yong commented and continued “And this is our gesture to do just that; back our members, through good times and bad. This is a crucial time for startups and SMEs. We hope that with this relief, Found8 members will be able to see through these difficult times and stay with us as they continue to innovate with solutions for the local and global community.”
Found8 continues to support the community with a free Resource Pack, conducting research on the challenges faced by business owners and employees via an Ecosystem Survey, as well as launching the F8 Virtual Community online.
For the members of Found8 KL Sentral in Malaysia, Found8 is currently working on a relief package in line with its landlord and the Malaysian government’s relief schemes.
About Found8
Found8 is over 1000 members strong across KL and Singapore. It is the leading coworking space provider and innovation community, enabling their game-changing members to collaborate and grow by providing the right network, knowledge, and environment.
Their 6 locations in central business locations in KL and Singapore including Amoy Street, Orchard, Tanjong Pagar, Prinsep and High Street Center and in the heart of KL at KL Sentral makes them one of the widest spread Singaporean coworking players on the market. Found8’s goal is to support the development and creation of innovative companies of all sizes.
Transitioning Africa’s Government marine and real-estate departments to Blockchain
As blockchain technology is taking the market by storm and creating exponential growth, Africa would not be exempted. Delivering blockchain-as-a-service (BaaS) and AI enabled SaaS designed to increase the efficiency of marine services and land department real estate services for government agencies, blockchain startup Domineum.io and its founder, serial entrepreneur Geoffrey Weli Wosu, managed to create more than US$5 million for several African governments during the final 11 months of fiscal 2019.
What makes blockchain technology so powerful? Blockchain’s data structure, immutability and tamper detection, data protection, distributed ledger technology, relative user anonymity, the promise of ever-increasing IT spend, to name a few. Blockchain technology is already changing the way many segments operate, while its technology market is expected to grow from US$1.2B in 2018 to US$23.3B by 2023, an annual growth rate of 80.2%.
Ken Griffin, Citadel founder and philanthropist, says, “Blockchain’s a very interesting technology that will have very profound applications for society over the years to come.” Vitalik Buterin, co-founder of Ethereum, says, “Whereas most technologies tend to automate workers on the periphery doing menial tasks, blockchains automate away the center. Instead of putting the taxi driver out of a job, blockchain puts Uber out of a job and lets the taxi drivers work with the customer directly.”
Blockchain technology allows users to participate in peer-to-peer transactions without involving central mediators, Financial Services and Insurance (BFSI) logically emerged as an early adopter. But many believe the true value of this revolutionary technology will be best felt across the developing world. From elections to international remittances, energy services to alternatives to banking, many issues could potentially be solved by a few principles inherent to blockchain: transparency and decentralization.
As a distributed ledger, or blockchain, technology company, Domineum Blockchain Solutions was established to assist Governments and Companies integrate Blockchain into their operations. Headquartered at Level39, London, with an R&D unit in San Francisco, a technology resource centre in Tallinn, and a current operational base in Nigeria and Sierra Leone, Domineum aims to disrupt several sectors in the emerging markets and leapfrog the current infrastructure with blockchain technology.
Domineum.io has quickly become a major developer of AI-enabled Blockchain Solutions for government agencies, financial institutions, and real estate and marine authorities interested in achieving the agility and capability needed to compete in current and future markets. In 2019, Weli Wosu and Domineum signed strategic Government alliances with Sierra Leone and Nigeria’s Abia State, producing revenues of more than $5 million within the fiscal year for the Government agencies.
No stranger to the markets, Geoffrey co-founded Voguepay.com, a payment processing platform established in 2012 with over 100,000 global merchants today; and invested (Level39) in Analytics Intelligence, an artificial intelligence (AI) technology start-up that provides solutions for data collection and analysis to a wide variety of customers in Europe, America and Africa.
Geoffrey studied Business (2006) and Law (2009) at the University of Bolton in the UK, he’s an Associate Member of the British Computer Society (AMBCS), Member of Level39, and author of “E-Government Solutions for the Developing World”, “How to Simplify the Work of Governments in Developing Countries”, and “Combining Blockchain and AI to Grow the Global Digital Economy” (ref: academia.edu).
For more information on the project pipeline, or to enter the discussion, please visit:
Contracted Sales Rose to Exceed RMB 4,390 Million in 2019; Net Profit Increased by 54.6% to RMB 620 Million
Huijing Holdings Company Limited (“Huijing Holdings” or the “Group”; Stock code: 9968 ), an integrated residential and commercial property developer in the PRC, with a foothold in the Greater Bay Area, has announced the first annual results for the year ended 31 December 2019 (“FY2019” or “the Year”), since the Group was listed on the Main Board of The Stock Exchange of Hong Kong Limited (“HKEX”) on 16 January 2020.
Highlights： – Contracted sales (including contracted sales from joint venture) reached approximately RMB 4,390 million in 2019, increasing 71.4% year-on-year – Net profit was RMB 620 million, surging 54.6% year-on-year; net profit margin was 17.2% – Effectively controlled the land acquisition cost and construction cost, thereby improving profitability. Gross profit was RMB 1,645 million, representing a strong year-on-year increase of 37.9%; and gross profit margin was 45.6% – The total land reserve1 GFA reached 2.94 million sq.m.1, creating a solid foundation for sustainable development in the future
Optimal operational structure and steady growth in performance In FY2019, leveraging the advantages of a successful presence in the Guangdong-Hong Kong-Macau Greater Bay Area, rich quality land reserves and an excellent product and strong service capability, the Group has recorded all-round growth in its business results. During the Year, the Group has recorded contracted sales (including contracted sales from joint venture) of approximately RMB 4,390 million with a year-on-year increase of 71.4%, and a contracted gross floor area (“GFA”) sold of approximately 338,370 sq.m., representing an increase of 57.9% compared with 2018. For the year under review, the Group’s overall revenue and profit achieved stable growth with revenue amounting to RMB 3,610 million, representing a year-on-year surge of 61.1%, mainly attributed to sales of properties. Gross profit was approximately RMB 1,645 million, a strong year-on-year increase of approximately 37.9% and gross profit margin was approximately 45.6%. Profit for the year surged by 54.6% year-on-year to approximately RMB 620 million in 2019, and net profit margin was 17.2%. The basic earnings per share were RMB 0.14. The Board of Directors proposed the distribution of an annual dividend of HK 4.5 cents per share.
Mr. Lun Rui Xiang, Chairman and Non-Executive Director of Huijing Holdings, said, “The year 2019 has been an important year for Huijing Holdings, and its successful listing marks a milestone for the Group. Leveraging the successful presence in the Greater Bay Area with excellent products and strong service capabilities, the Group recorded dynamic growth in its business results. Contracted sales (including contracted sales from joint venture) reached RMB 4,390 million, a record high. Adhering to the robust and balanced development strategy and the mission to ‘Maintain a Foothold in the Greater Bay Area,’ the Group primarily focused on developments in the Pearl River Delta, while expanding elsewhere into the Central China Region and East China Region. It has continuously improved its own business structure and enhanced its overall brand influence, winning the recognition of the industry and its customers while achieving satisfactory operational results.”
Strong presence in the Greater Bay Area, gains fruitful results in property sales The Group adheres to the strategy of steady and balanced development as it strives to achieve the mission to “Maintain a Foothold in the Greater Bay Area” based in Dongguan and also continued to extend its reach into the Pearl River Delta, Central China Region and East China Region. As of 31 December 2019, the Group owns or has agreed to acquire 18 property projects in five cities across three provinces, with the planned GFA after completion of approximately 5.08 million sq.m.. During the Year, the Group’s revenue from sales of properties soared by around 60.9% year-on-year to approximately RMB 3.6 billion, accounting for around 99.9% of the total revenue. The Group recognized a total GFA of approximately 323,795 sq.m., an increase of approximately 53.1% as compared with last year. The average selling price (“ASP”) was approximately RMB 11,121 per sq.m., representing an increase of around 5.0% year-on-year.
Actively expands land reserves focusing on urban renewal projects During the year under review, the Group’s total land reserves GFA was 2.94 million sq.m., with 18 projects located in five cities within the Greater Bay Area, Pearl River Delta, Central China Region and East China Region. Such ample high quality land reserves strongly guarantee and support a better balanced and steady development of the Group in the future. In addition, the Group continued to grasp land development opportunities through acquisition of land parcels at strategic and advantageous locations in those regions in order to further develop its business in aspects including core urban renewal projects, forming partnerships and company acquisitions, etc.
In terms of urban renewal projects, during the year under review, the Group has commenced official procedures for three urban renewal projects and has begun official discussions with relevant government parties over the acquisition of related land parcels Area (with total site area of approximately 240,000 sq.m). Furthermore, it has obtained preparatory service provider qualifications for six urban renewal projects (with total site area of approximately 1.31 million sq.m.) and is commencing work on eight urban renewal project (with total site area of approximately 380,000 sq.m.). In the future, the Group intends to enlarge and strengthen the resources of the urban renewal team, implement the “blue ocean” strategy on the urban renewal projects with huge potential, acquire highly cost-competitive land tracts or projects in a rational, systematic, efficient and sustainable way. At the same time, it continues to expedite its existing urban renewal projects at a faster pace, thus maintaining its position as a leading developer of urban renewal projects in the Greater Bay Area.
Stable financial development based on a solid foundation On top of the adequate land reserves and inventories for sales, the Group’s finances are stable, enabling it to further improve its financial structure and reduce finance costs. In 2019, the total assets of the Group were RMB 8.62 billion with net gearing ratio declining from 243.2% in 2018 to 82.6% in 2019. The Company’s assets are in good condition, and it has a total cash and bank balance of approximately RMB 450 million (2018: RMB 160 million). Going forward, the Group will use the cash generated from its operating activities, available banking facilities, and the net proceeds received from the Global Offering to further improve its financial structure and reduce finance costs. In addition, it has adopted sound financial strategies for future development.
Future Strategies: Inspiring Growth Together The year 2020 represents the first year since the Group’s successful listing. In the face of great challenges and development opportunities, the Group will continue to implement its mission of “Maintain a Foothold in the Greater Bay Area”, and strive to further develop the market in Dongguan. The Group will primarily focus on developments in the Pearl River Delta and continue to expand into regions such as Central China and East China Region. Furthermore, the Group will “regard urban renewal projects as its central focus, and consider cultural and tourism health care towns and scientific and technology innovation industrial towns as complementary concerns”, so as to ensure its short-term and mid- to long-term land supply through urban renewal projects, mergers and acquisitions and land tenders.
Mr. Lun Rui Xiang, Chairman and Non-Executive Director of Huijing Holdings, said, “The outbreak of the novel coronavirus pandemic has affected the domestic property market requiring the Group to adjust its strategies accordingly so as to enhance the online pre-sales and selling service and revise the marketing plan in a timely manner. In this way it can thus provide customers with the most professional and customized services, while enhancing our ability to counter the adverse effects of the pandemic. Looking ahead, despite the complicated and changing macro-environment, we still have confidence in fully seizing emerging development opportunities from adjustments in the market, expediting the development pace of urban renewal projects, as we further enlarge our share of urban renewal markets in Dongguan and the Greater Bay Area. We will do so by capitalizing on our steady business growth, extensive land bank, professional sales operation and highly efficient financial management. By adhering to our mission ‘inspiring growth together,’ the Group will strive to strengthen its overall competitiveness and generate promising returns for shareholders.”
Redsun Properties Group Limited (“Redsun Properties”, or the “Group”, stock code: 1996), a leading comprehensive property developer in Mainland China, announced its annual results for the year ended 31 December 2019. The Group maintained a healthy financial position under its “Property + Commercial” dual-driven strategy, which helped it realise synergies and build diversified competitiveness.
Results Highlights: – Business continued to grow under the Group’s “Property + Commercial” dual-driven strategy. Contracted sales amounted to RMB65.15 billion in 2019, surging around 37.6%. – Net profit strongly increased by 23.6% to RMB1.64 billion. Net profit margin was 10.8% – Recommended the payment of a final dividend of RMB11.1 cents per share, a year-on-year growth of 22.0% – Healthy financial position with net gearing ratio of approximately 70.4%. Cash and bank balances were approximately RMB16.84 billion, an increase of 35.2% when compared with the end of 2018. – Land bank increased by 29.4% when compared with the end of 2018 to 16.93 million sq.m., supporting future development – Rapid enhancement in brand and scale of commercial segment with year-on-year growth of 14.6% to RMB411.4 million in rental income from commercial operation. The growth was mainly attributable to the opening of three shopping centre projects during the year. In addition, the Group plans to open 11 new Hong Yang Plaza to promote the “Hong Yang Plaza” brand.
Highly efficient operation: Continuous growth in three key businesses The Group maintained sustainable growth in 2019. Contracted sales amounted to RMB65.15 billion, representing a year-on-year surge of 37.6%. The contracted sales in gross floor area was approximately 4.905 million sq.m., with a year-on-year increase of 39.0%. Net profit was approximately RMB1.64 billion, climbing by 23.6% (2018: RMB1.32 billion), while net profit attributable to owners of the parent increased by approximately 3.9% to RMB1.47 billion (2018: RMB1.41 billion). Basic earnings per share were RMB0.44. The Board of Directors recommended the payment of a final dividend of RMB11.1 cents per share (2018: RMB9.1 cents). The Group’s total assets amounted to approximately RMB95.4 billion, soaring nearly 40.5% when compared with 2018. Net profit margin was 10.8%, reflecting the continuously improving operation efficiency of the Group.
The Group’s three distinctive segments, namely property business, commercial property operations and hotel operations continued to grow. Revenue from property development which accounted for 97.0% of total revenue amounted to RMB14.72 billion, soared 66.4% mainly owing to the Group’s rapid expansion. Rental income from commercial operation and hotel operation was RMB411.4 million and RMB39.8 million respectively, representing a growth of 14.6% and 8.3% accordingly. The growth was mainly due to the grand opening of Pavilion C2 and C3 at Nanjing Hong Yang Plaza in August 2019, the increase in contribution from Changzhou Hong Yang Plaza as a result of an improved performance and the additional contribution from Yantai Hong Yang Plaza and Tengzhou Hong Yang Plaza after their openings. The increase in revenue from hotel operations was mainly attributable to the increase in contribution from Nanjing Hong Yang Hotel and Wuxi Hong Yang Lakefort Hotel as a result of the improvement of their performance.
“Penetrating the Greater Jiangsu Region, strengthening foothold in the Yangtze River Delta Region and expanding into major metropolitan areas” During the reporting period, the Group’s land bank rose by 29.4% compared with same period last year to approximately 16.93 million sq.m. (2018: 13.08 million sq.m.). The Group strictly implemented the regional strategy of “penetrating the Greater Jiangsu region, strengthening foothold in the Yangtze River Delta region and expanding into major metropolitan areas”, focusing on the existing regions and expanding to dynamic hub cities. In 2019, it entered 17 cities including Jinan, Qingdao, Xi’an, Changsha, Wenzhou and Zhengzhou, while gearing up its strategic cooperation in acquiring land with proven results shown in commercial land acquisition. The Group also focused on implementing its dual-driven strategy, realising synergies through commercial/residential duel structure as well as enhancing quality and greater effectiveness in its operation.
Adhered to business operation model comprising both asset-light and asset-heavy elements in development The Group adhered to the commercial operation model including both asset-light and asset-heavy elements in its development. Rental income from commercial operations increased 14.6% year-on-year to RMB411.4 million. Three of the Group’s shopping centre projects, namely Pavilion C Nanjing Hong Yang Plaza, Yantai Zhifu Hong Yang Plaza and Tengzhou Hong Yang Plaza were opened during the year. Up to now, the Group has opened four Hong Yang Plazas, located in Nanjing and Changzhou in Jiangsu, Yantai and Tengzhou in Shandong respectively. It is currently planning to expand the commercial operation business by taking advantage of the asset light model, thereby further promoting the “Hong Yang Plaza” brand.
Healthy financial position recognised by credit rating agencies The Group has a healthy cash position with cash and bank balances surging notably by 35.2% year-on-year to approximately RMB16.84 billion (2018: RMB12.46 billion). Net gearing ratio was 70.4%. The Group successfully issued senior notes several times in 2019, which were subscribed by renowned international long-term funds. In January 2020, the Group, for the first time, secured a commercial bank club loan amounting to US$70 million, providing adequate funding for its future development. Fitch Ratings, an international rating agency, upgraded the Group’s corporate rating to “B+” with a stable outlook; while Moody’s assigned a “B2” corporate rating to the Group for the first time, with a positive outlook. The ratings from the two agencies reflected their recognition of the Group’s high-quality land bank and solid operation and financial performance.
Future strategies: “Dual-Driven” together with “Quality and Efficacy Enhancement” The Group believes the impact of the outbreak and spread of coronavirus on the economy and the real estate market is temporary, and the epidemic will not have significant impact on the economy and real estate market in China in the medium- and long-term.
Looking ahead, the Group will continue to foster the “Dual-Driven” business strategy, while “Quality and Efficacy Enhancement” will become the main theme of its operation. For property development, under the guidance of the general strategic direction of “penetrating the Greater Jiangsu region, strengthening foothold in the Yangtze River Delta region and expanding into major metropolitan areas”, the Group will adhere to its nationwide strategy and further solidify its business development efforts in key regions in Jiangsu and Yangtze River Delta, as well as uplifting the quality of products and services and the quality and efficiency of operation. It will also strengthen its profitability and improve its risk management capability. As for commercial real estate, the Group will emphasize both expansion of scale and enhancement of operation quality. While exploring high-quality projects through diversified models such as entrusted management, leasing and self-holding, the Group will also continuously optimise and upgrade its business portfolio, foster innovation and enhance consumer experience so as to create benchmark commercial property projects and generate better returns on assets from its commercial real estate business.
About Redsun Properties Group Limited (“Redsun Properties”) (stock code: 1996) Redsun Properties Group Limited (“Redsun Properties” or “The Group”) is a leading comprehensive developer in China, focusing on development of residential properties and the development, operation and management of commercial and comprehensive properties. The Group has established a steady regional leading position in Jiangsu Province by taking root in Nanjing, Jiangsu and Yangtze River Delta. Since the incorporation of Nanjing Redsun in 1999, Redsun Properties has worked in the sector of property development and sales for 20 years, established the Hong Yang brand and received widespread recognition for the development capacity and industry position. Redsun Properties has been ranked the 47th property developer in China in 2020.
While developing residential properties, Redsun Properties also operates commercial complexes covering shopping malls, amusement parks and community centers, hotels and office buildings. Most of the commercial property buildings are adjacent to the Group’s residential property projects, providing ancillary services for the residents and also increasing the value of the Group’s residential property projects.
