Tag: Redsun Properties

Redsun Properties 1H2020 Revenue Surges 146.3% to RMB9.6 Billion, Core Attributable Profit Up 30.7% to RMB656.6 Million

Redsun Properties Group Limited (“Redsun Properties”, or the “Group”, stock code: 1996), a leading comprehensive property developer in Mainland China, announced its interim results for the six months ended 30 June 2020. The Group has continued to achieve synergic development, maintained a solid financial position and promoted a nationwide layout under its “Property + Commercial” dual-driven strategy.

Results Highlights:
– Contracted sales up 4.4% to RMB31.6 billion. Contracted average selling price increased by 13.6% to RMB14,642 per sq.m.
– Revenue surged 146.3% to RMB9.6 billion in 1H2020
– Gross profit amounted to approximately RMB2.43 billion, surged 115.0%; Gross profit margin was 25.3%
– Core net profit jumped 80.7% to approximately RMB874.2 million, core net profit margin was 9.3%
– Core profit attributable to owners of the parent grew 30.7% year-on-year to approximately RMB656.6 million
– Maintained healthy financial position, net gearing ratio decreased 1.7 percentage points to 68.7% with sufficient cash on hand of approximately RMB18.3 billion, up 8.5% against the year-end of 2019
– Land bank increased by 8.5% when compared with the end of 2019 to approximately 18.4 million sq.m., supporting nationwide development layout in the future
– Revenue from commercial operations increased 14.2% to approximately RMB212.8 million

Establishes nationwide layout: Achieves stable sales performance and rise in quality via intensive development
Redsun Properties implements investment strategy of “penetrating the Greater Jiangsu Region, strengthening foothold in major metropolitan areas and expanding into core cities”, and has maintained sustainable growth in the first half of 2020. Contracted sales amounted to approximately RMB31.6 billion in the first half year, representing a year-on-year increase of 4.4%. According to CRIC’s statistic, sales of the Group increased its rank to 46th nationwide. Average contracted selling price increased by 13.6% to RMB14,642 per sq.m. Revenue of the Group reached approximately RMB9.6 billion, representing an increase of approximately 146.3% as compared with the same period last year, mainly generated from the sale of developed residential properties and supporting retail stores, rental income from commercial property investments and operations, and service fee income from its hotel operations. Business from commercial operation continue to bring in stable income to the Group. During the review period, the Group operated three Hong Yang Plazas, which are located in Nanjing, Changzhou and Yantai respectively. This segment has generated total sales income of around RMB212.8 million, which was 14.2% more than the last corresponding period. The increase was mainly due to contributions from the newly opened Pavilion C2C3 of the Nanjing Hong Yang Plaza in 2H of 2019. During the review period, the Group’s gross profit margin was 25.3%. Core net profit jumped 80.7% to approximately RMB874.2 million, while core net profit attributable to owners of the parent grew by approximately 30.7% to RMB656.6 million. Basic earnings per share were RMB0.20.

During the review period, the Group entered new cities such as Anqing, Huai’an, Suqian, Xianyang and Wuhu, thus forming a nationwide layout. As at 30 June 2020, the aggregate gross floor area of the Group’s land bank was approximately 18,374,029 sq.m., representing an increase of 8.5% compared with the end of last year, which is sufficient for future development. Comprehensive view of the Group’s national layout, its coverage has reached more than 43 cities nationwide, covering 169 projects, 76% of the land reserves are located in first- and second-tier cities.

The Group is also preparing to open 11 Hong Yang Plazas, located respectively in Hefei, Hengyang, Yangzhou, Xuzhou, Yanjiao, Jining, Fushan in Yantai, Lekai in Yantai, Dacheng in Changzhou, Fenghuangdong in Changzhou, and Anqing, signifying the promotion of the “Hong Yang Plaza” brand. With regard to the hotel operation, in addition to its present two hotels, the Group is owning an Ibis Hotel that under entrusted management model, so as to continuously optimize its business mix.

Continuous improvement on financial structure, achieved capital market recognition
In the first half of 2020, the Group’s net gearing ratio was improved to 68.7%, the proportion of short-term debt dropped to 36.8%. The Group maintained a healthy cash position with cash and bank balances increasing to approximately RMB18.3 billion (31 December 2019: approximately RMB16.8 billion). Total assets exceeded RMB100 billion for the first time as of 30 June 2020.

Implements strategy of “penetrating into the Greater Jiangsu Region, strengthening foothold in major metropolitan areas and expanding into core cities”
The Group boasts a unique business model that emphasizes differentiated and quality development and fosters a “dual-driven” business strategy. In the second half of 2020, the Group will also adhere to “Quality and Efficacy Enhancement”, which is the main theme of its operations. In respect of property development, the Group will persist in its nationwide strategic layout and further strengthen its foothold in key areas, such as Greater Jiangsu Region, Yangtze River Delta Region, Greater Bay Area and Chengyu, along with raising the quality of products and services, enhancing operational quality and efficiency, and improving profitability and capacity to withstand risks. With regards to commercial real estate, the Group will stress both expansion of scale and enhancement of operational efficiency. While exploring high-quality projects through diversified models, such as entrusted management, leasing and ownership, the Group will also constantly optimize and upgrade its business portfolio and foster innovation as well as enhance consumer experience, so as to create benchmark commercial property projects, thereby creating better return on assets of its commercial real estate business. In addition, it will endeavor to enhance its linkage with the property development business to achieve dual-driven synergic development.

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.

Redsun Properties’ Net Profit Up by 23.6% to RMB1.64 Billion in 2019; Final Dividend Increases by 22.0% to RMB11.1 Cents per Share

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.