Mar 30, 2022 | Business
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 annual results for the year ended 31 December 2021 (“FY2021” or “the Year”).
Results Highlights:
— Contracted sales (including contracted sales from joint venture) increases by approximately 3.9% to RMB8.0 billion in 2021
— Revenue increases by 3.0% year-on-year to approximately RMB5,309.3 million
— Net profit amounted to approximately RMB550.4 million; net profit margin was 10.4%
— Gross profit totaled RMB1,666.9 million, gross profit margin was 31.4%
— Adequate high-quality land reserves, with approximately 582,000 sq.m. added in 2021
— Proposed final dividend of HK2.48 cents per share was recommended by the Board
Continuous growth in contracted sales and steady improvement in results
For the year ended 31 December 2021, the Group has maintained growth in its results by adhering to its precisely targeted “one focus, one core and two wings” quality property mix and professional services in the Greater Bay Area. Contracted sales have amounted to approximately RMB8.0 billion, representing a year-on-year increase of 3.9%. Contracted gross floor area (“GFA”) sold of approximately 981,997 sq.m., representing an increase of approximately 29.6% compared to the year ended 31 December 2020. Gross profit was approximately RMB1,666.9 million with gross profit margin at 31.4%. Net profit totaled approximately RMB550.4 million, with net profit margin at 10.4%. Basic earnings per share were RMB0.05. The Board of Directors (the “Board”) has proposed to distribute a final dividend of HK2.48 cents per share.
During the Year, the Group has recorded a revenue of approximately RMB5.31 billion, an increase of 3.0% from the corresponding period last year. Total GFA recognised has climbed over 30% to approximately 758,749 sq.m., mainly from projects including The 1st Mansion, Nine Miles Bay, Yongjinlan Bay, Huijing Yanhu International Resort, and Hefei Huijing City Centre.
Expansion of land bank and progress in development of urban renewal projects
During the Year, the Group continued to develop regions with high growth potential, such as Western and Northern China, and consolidated it market leadership position based on the the strategy of “Maintain a foothold in the Greater Bay Area, penetrate Dongguan and sustain coverage in the Southern, Central and Eastern China areas”. As of 31 December 2021, the Group had land reserves with a total area of approximately 3,146,831 sq.m., with 21 projects and 4 parcels of land located in 11 cities all over Mainland China. During the Year, the Group added a total GFA of around 582,000 sq.m. to its land reserves, which were assigned to 5 projects. It also marked the first time that the Group penetrated Fuyang, Anhui and Chengdu, Sichuan, which has become an important pillar for expansion of its business presence.
The Group’s urban renewal projects have also realized good progress. During the Year, the Group has obtained the qualification of preparatory services provider for 9 urban renewal projects and is also working on a preparatory services provider qualification and promoting the change of land use for 9 projects. As of 31 December 2021, the Group met the land supply target for the Shatian Renzhou Area Project. The Zhangmutou Baoshan Area Project and Humen Xinwan Area Project were also proceeding well. Meanwhile, the Group also secured news projects, including the Hongmei Hongwugao Area Project and Wangniudun Project in Dongguan. The Group will continue to expand its land bank and advance the development of urban renewal projects so as to extend its brand influence and lay a solid foundation for its sustainable growth.
Breakthrough development of scientific and innovative technology industry towns drives regional economic development
Amid the emerging trend of innovation ecosystems in the industry, the “scientific and innovative technologies industry towns,” an important part of the Group’s “one core, one focus and two wings” business strategy, also achieved breakthrough development in 2021. During the Year, Huijing . Greater Bay Area 5G Intelligent Manufacturing Park helped the enterprises to undergo transformation and upgrade, marking a new milestone for smart factories in the Dongguan Eco-Environmental Industrial Park. Huijing Wisdom Valley is to be built into an integrated scientific and innovative technology park and become a high-end innovative technology ecosystem with office space and commercial ancillary facilities.
In terms of new projects, the Group has entered into a letter of intent with the Shatian Town Government in relation to the development planning of an AI enabled smart town in Shatian alongside the Guangzhou-Shenzhen Science and Technology Innovation Corridor, and thereby construct an integrated industry and city through effective deployment of technology. The Hongmei Hongwugao Area Project is planned as an industry park with 5G at the core to promote the development of a new generation in the information technology industry and in intelligent manufacturing. These projects have demonstrated how the Group has established a presence in Dongguan over many years, and how it has gradually delivered results in its research on applying artificial intelligence in industrialization and innovative technologies, in its bid to achieve progress in high-quality development.
Healthy financial position and stable capital structure
The Group benefits from a stable financial position, with a net gearing ratio of 42.6% and gearing ratio (excluding contract liabilities) of 54.4%. Thanks to its overall market analysis, the Group recorded a continuous improvement in revenue, with total assets increasing 19.2% year-on-year to RMB15.2 billion. Looking forward, the Group will continue to strengthen its cash flow management and boost the rate of capital turnover, so as to generate momentum for its growth across different industries with a stable capital structure.
Future strategies: To seize opportunities, make progress while maintaining stability, integrate industry and the city, and improve project quality
Mr. Lun Zhao Ming, CEO and Executive Director of Huijing Holdings, said, “Leveraging our advantages in the Greater Bay Area, in 2021, the Group continued to execute the ‘one core, one focus and two wings’ strategy, with ‘residential development as the main business, urban renewal as the core, and cultural tourism along with health care, and the science and technology sector as the two wings.’ This was aimed at enriching the diversity of the profit structure and has continuously improved the capabilities of projects and services, thereby enhance the Group’s core competitiveness and capacity for sustainable development. Looking ahead, the Group will adhere to its business presence closely monitor changes in the market environment and proactively address policy changes. The Group is confident that it will continue to seize opportunities arising from urban development. By developing the projects on land parcels with strategic advantages and devoting greater effort to the layout of urban renewal projects, we remain committed to maintaining our leading position in the urban renewal industry across the Greater Bay Area, with the aim of adding value to cities there and bringing sustainable returns to our shareholders.”
About Huijing Holdings Company Limited (Stock code: 9968)
Huijing Holdings Company Limited (“Huijing” or the “Group”) is an integrated residential and commercial property developer in the PRC with its foothold in the Greater Bay Area, gradually expanding its presence to the Yangtze River Delta Urban Cluster and the Yangtze Mid-Stream Urban Cluster. It focuses on urban renewal projects, covering residential, integrated and industry-specific property projects. Besides, the Group has been included as one of the constituent stocks of the MSCI China All Shares Small Cap Index, Hang Seng Composite Index and Hang Seng Stock Connect Hong Kong Index Series. For more information about the Group, please visit http://www.huijingholdings.com.
Topic: Press release summary
Aug 26, 2021 | Business
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.
Topic: Press release summary
Mar 29, 2021 | Business
Huijing Holdings Company Limited (“Huijing Holdings” or the “Group”; Stock code: 9968), an integrated residential and commercial property developer in the PRC, with foothold in the Guangdong-Hong Kong-Macau Bay Area (“Greater Bay Area”), has announced its annual results for the year ended December 31, 2020 (“FY2020” or “the Year”),
Contracted sales another record high and maintained steady growth in results
For the year ended December 31, 2020, the Group was able to realize quality growth in its results amid adversities by capitalizing on its strategic business presence in the Greater Bay Area, and its quality properties and professional services. Contracted sales amounted to approximately RMB7.71 billion, a year-on-year increase of 75.5%. Net profit grew by 19.4% year-on-year with net profit margin at 14.4%. Basic earnings per share were RMB0.10. The Board of Directors has proposed to distribute an annual dividend of HK4.95 cents per share.
Strong foothold in Greater Bay Area and property sales continue to develop
The Group continued to actively expand business by focusing on delivering the mission of “Maintain foothold in Greater Bay Area, based in Dongguan, and service covering Southern, Central and Eastern China”. During the Year, the Group’s revenue soared by 42.9% year-on-year to approximately RMB5.15 billion. Total GFA delivered increased by approximately 78.7% against last year, from such projects as Marina City in Dongguan, Nine Miles Bay in Heyuan and Huijing Riverside Villa.
Actively replenished land reserves and continued to push forward development of urban renewal projects
In 2020, the Group’s land reserves amounted to approximately 1,219,000 sq.m., the area total in seven projects. During the Year, apart from devleoping and operating property projects with strategic advantages in the Greater Bay Area, the Yangtze River Delta Urban Cluster and the Mid-Stream Urban Cluster, it also took its projects in Western and Northern regions in China, including Xichang in Sichuan and Bazhou in Hebei provinces.
As for urban renewal projects, the Group has today secured preparatory service contracts of seven projects (total site area of approximately 1.56 million sq.m.) in Dongguan. During the year under review, the projects in Zhangmutou, Baoshan Area, in Humen Xinwan Area and Shatian Renzhou Area were ready for launch, and for another 12 projects, efforts were made to obtain preparatory services provider qualification or change land use, involving the proposed total site area of approximately 2.13 million sq.m. for three-old transformation. The Group will continue to seize urban development opportunities, acquire land parcels with strategic geographical advantages and optimize the layout of urban renewal projects, so as to become a leading developer in the urban renewal project realm in the Greater Bay Area.
Financial position stable and liquidity kept improving
The Group’s financial position remained stable, with net gearing ratio at approximately 18.0%. 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 structure and reduce finance costs. In addition, it will continue to strengthen cash flow management, speed up receivables turnover and increase capital turnover rate.
Future strategies: To seize opportunities, Maintain foothold in Greater Bay Area, Integrate industry and city, Improve product quality
Mr. Lun Zhao Ming, CEO and Executive Director of Huijing Holdings, said, “2021 marks the beginning of the country’s ’14th Five-Year Plan’. In the new economic environment with new policies in place, we will adopt more aggressive sales strategy and timely adjust our marketing plans, increase investment in marketing drawing on our own edges and rich resources, to help us make breakthroughs in the constantly changing market environment. Looking ahead, the Group will continue to focus on the main business of developing residential properties, and work from its “one focus, one core and two wings” blueprint – urban renewal projects as the core, taking the cultural tourism-healthy living towns and the scientific and innovative technologies industrial towns as the two wings, plus build a high quality development path that can bring together and foster upgrade of the industry, city development and the quality of living of people, thus , creating greater value for cities. Boasting stable business growth, sufficient land reserves, prudent investment strategy and active sales operations, we are confident of our ability to boost sales as well as our competitiveness for delivering sustainable returns to shareholders.”
Topic: Press release summary
