(For immediate release)
Guorui Properties Announces 2019 Interim Results
With an increase of 40.7% in gross profit,
principal business rendered brilliant performance
Highlights of 2019 Interim Results：
||For the six months ended
|Profit Attributable to
Owners of the Company
|Basic EPS (RMB fen)
(28 August 2019, Hong Kong) Guorui Properties Limited ("Guorui" or the "Group", stock code: 2329.HK) announced that in the six months ended 30 June 2019 (the "Period"), the Group proactively responded to the new market situation and focused on the core business. At the same time, the Group expanded the redevelopment of shanty town and projects developed under the "Urban Redevelopment" policy, taking the strategy of "Real estate + Technology" as the Group's new driving force.
The Group's total contracted sales for the Period were approximately RMB12,828 million, representing an increase of 87.5% year-on-year. Its revenue was approximately RMB3,775 million, representing an increase of 68.6% year-on-year. Revenue from property development was RMB3,412 million, representing an increase of 74.4% as compared to the corresponding period of last year. The Group's gross profit was RMB1,075 million, representing an increase of 40.7% year-on-year. Gross profit of property development was RMB805 million, representing an increase of 43.4% as compared to the corresponding period of last year. The net profit was RMB570 million, of which RMB429 million was attributable to the owners of the Company.
Different policies for different cities, steadily promote"Focusing on both residential and commercial properties"
During the Period, China's real estate market continued to show a distinct differentiation trend in regional performance, adhering to the principle of "The house is for living, not for speculating" and "Different policies for different cities with differentiated approaches adopted in regulating the housing market". In line with the changes in the situation, the Group adopted flexible strategies to promote rapid growth in sales. The Group adhered to the development strategy of "Focusing on both residential and commercial properties" and was committed to constantly improving its operation capabilities.
During the Period, the Group continued to apply specific policies in specific places while constantly optimizing its product mix to meet different market needs and striving to grow its market share. During the Period, total contracted sales for property were approximately RMB12,828 million, and total GFA sold was approximately 604,636 sq.m.. Among them, Beijing, Suzhou and Chongming Island and other urban projects have become backbone of performance.
During the Period, the total rental income of the Group was RMB285 million, and it is expected to maintain steady growth over the next five years, which is mainly benefited from the Group's investment properties situated at the prime locations of 7 core cities including Beijing and Shenzhen with total planned GFA of approximately 971,300 sq.m.. Hademen Plaza was included in "China New Hundred Urban Landmark Architecture".
Expanded the redevelopment of shanty town and "Urban Redevelopment" Continuously Optimized Debt Structures
During the Period, the policies of redevelopment of shanty town and "Urban Redevelopment" were gradually implemented, and the Group's high-quality land reserves continued to increase. The Group actively undertook primary land development projects, adhered to the growth of quality, and increased the requirements for profit rate and risk control of project investment. During the Period, the total planned GFA for land reserves of the Group was 16.08 million sq.m. During the Reporting Period, the development area of the primary land development projects and projects developed under the "Urban Redevelopment" policy reached 5.8 million sq.m., of which Shenzhen accounted for 51.6%. In addition, land reserves in the Guangdong-Hong Kong-Macao Greater Bay Area have reached 9.28 million sq.m., accounting for 42% of the total land reserves. In the future, the Group's Renovation of Old Towns and urban renewal projects will turn into sales and become its new profit growth drivers.
Leveraging the diversified domestic and overseas financing channels, the Group continuously optimized its capital management to reduce financing costs, optimize its debt structures and effectively control exchange rate risks. As of June 30, 2019, the Group's interest-bearing liabilities due within one year decreased by 23.6% as compared to December 12, 2018. During the Period, the Group's net debt to equity ratio decreased by 3% year-on-year.
Grasping the industry's adjustment opportunities, achieving strategic breakthrough and product transformation breakthrough
The real estate industry will step into a period of adjustment in the next 3-5 years. The traditional real estate development experiences will be gradually refreshed and upgraded. The regulation policy on the real estate market will maintain its continuity and stability. In the second half of 2019, the Group will continue to accelerate destocking, collect sales proceeds and take the "Real estate + Technology" as the driving force to create its first generation of smart residential products. Mr. Zhang Zhangsun, Chairman of the Board of Directors of Guorui Properties, said that, "The Group is in the process of making strategic breakthrough and brand upgrading, and will focus on three key guidelines, i.e. urban development, village rejuvenation and consumption upgrading, while leveraging its expertise to explore for new business expansion, concentrating on deeper regional exploitation under the principle of "Product + Service" as well as quality growth."
About Guorui Properties Limited
Guorui Properties Limited (stock code: 2329.HK) is a leading developer focusing on boutique residences and city center area projects with an annual development capacity reaching over 5 million sq.m. Currently, Guorui Properties has more than 50 different real estate projects in 20 cities with substantial economic growth, including Beijing, Shenzhen, Hebei, Suzhou, Haikou, Zhengzhou, Langfang, Foshan, Shantou, Xi'an and Shenyang. Its businesses cover the Beijing-Hebei-Tianjin Economic Zone, the Yangtze River Delta Economic Zone and the Pearl River Delta Economic Zone. The Company adheres to the strategy of providing consistent high-quality products and professional services and has built the brand awareness of "Guorui" in the market.
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28/08/2019 Dissemination of a Marketing Press Release, transmitted by EQS Group.
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