Tag: Huijing Holdings Company Limited

Huijing Holdings 2021 Interim Results Contracted Sales Increases Strongly by Over 162%

  • Persists with “One Focus, One Core and Two Wings” Strategy
  • Continues to build a high-quality development road that integrates “industry, city and people”

Huijing Holdings Company Limited (Huijing Holdings or the Group; Stock code: 9968), an integrated residential and commercial property developer in the PRC, with a strong presence in the Greater Bay Area, has today announced its unaudited interim results as at 30 June 2021.

Strong growth of contracted sales and steady improvement of results
For the six months ended 30 June 2021 (“period”), the Group’s strategic blueprint of a “one focus, one core, and two wings” quality property mix and professional services has enabled it to record solid growth against a backdrop of adversity, achieving contracted sales of approximately RMB6,411.0 million, representing a year-on-year growth of around 162.0%. In the period, significant projects launched by the Group included Nine Miles Bay, Xingfu District in Pinghu, Huijing Yanhu International Resort and Hefei Huijing City Centre. The Group recorded net profit of approximately RMB453.4 million in the period, a gain of 48.2% from the previous corresponding period, while net profit margin was 14.7%.

In the period, the Group recorded a revenue of approximately RMB3,092.7 million, representing an increase of approximately 35.8% from the previous corresponding period. Total GFA delivered surged by 67.2% from the same period last year to approximately 399,443 sq.m., mainly from the projects including Nine Miles Bay, Huijing Yanhu International Resort and Hefei Huijing City Centre.

Continued expanding land bank and advancing development of urban renewal projects
In the period, the Group grasped the trend and emphazised the development potential of the city guided by its strategic direction of “Maintain foothold in the Greater Bay Area, penetrate Dongguan, and sustain coverage of high-valued cities in the Southern, Eastern and Central China areas”, thus continuously increasing its land reserve and the development potential of urban areas. As at 30 June 2021, the Group’s land reserves amounted to approximately 3,578,982 sq.m., within 26 projects and 5 parcels in 12 cities. During the period, it added a total GFA of around 582 thousand sq. m., for five projects.

The Group’s urban renewal projects have realised good progress. In the period, the Group secured the land for one urban renewal project which is Shatian Renzhou Area Project with a total site area of approximately 77,321 sq.m.; Project Zhangmutou Baoshan Area and Humen Xinwan Area were also processing well, the land supply target is expected to be completed within the year. Meanwhile, 1 urban renewal project which is Hongmei Hongwugao Area, Dongguan, with a site area of 485,300 sq.m. was secured by the Company to serve as preparatory services provider. As of now, the Company has secured a total of 8 related projects with a site area of 2.04 million sq.m.. It is also working on 12 projects with a total site area for renewal unit of approximately 2.8 million sq.m..The Group will continue to seize urban development opportunities, acquire land parcels with strategic geographical advantages and optimise the layout of urban renewal projects, so as to become a leading developer in the urban renewal project realm across the Greater Bay Area.

Financial position remained stable with ongoing improvement in capital structure

The Group’s financial position has remained stable. In the period, total assets amounted to RMB 16.27 billion, with a net gearing ratio of 14.0%. The Group was given a “B+” rating with a positive outlook by Lianhe Ratings Global, a research institute. Going forward, the Group will use the cash generated from its operating activities, available banking facilities and net proceeds from the global offering to further improve its financial and debt structures, and reduce finance costs. In addition, it will continue to strengthen cash flow management, speed up turnover pf receivables and increase the rate of capital turnover.

Future strategies: To seize opportunities, maintain the foothold in the Greater Bay Area, integrate industry and the city, and improve project quality
The eocnomic development in the PRC has graudally revived as the severity of the pandemic has been easing. The Group has adopted more active sales and marketing strategies to reinforce its strategic positioning and faciliate both industrial and economic upgrades. Looking ahead, the Group will continue to “focusing on residential development projects, while taking the urban renewal projects as the core, taking the cultural and tourism-healthy living towns and the scientific and innovative technologies industrial towns as the two-wing”, and work from its “one focus, one core and two wings” blueprint. In addition, the Group will strive to bring integrated renewal in residential and industrial development to the city by linking the upstream and downstream industrial chains, providing customers with a more comprehensive and diversified way of “new production” and “new life”. In the future, the Group will keep strengthening our overall competitiveness for delivering sustainable returns to shareholders.

Huijing Holdings Company Limited Announces First Annual Results after Listing

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.”