2022 Highlights of intermediate results:
| For the six months ended June 30
|Profit attributable to owners of the parent company||1,274|
|Cash and bank balances||18,138|
|Net debt ratio||79.8%|
|Weighted average financing cost||7.0%|
HONG KONG SAR – Media outreach – 31 August 2022 – China SCE Group Holdings Limited (“China ECS” or the “Company”with its subsidiaries, “Band”HKEX Stock Code: 1966), an integrated real estate developer in China, is pleased to announce its unaudited interim results for the six months ended June 30, 2022 (the “Period”).
In the first half of 2022, the real estate sector experienced unprecedented challenges. Overall, contract sales were affected by the downward trend in the market. The Group, together with its joint ventures and associates, achieved contract sales of approximately RMB 32.6 billion and contract sales area of approximately 2.6 million sqm during the period. The average selling price during the period was RMB 12,600 per sqm.
Due to delays in project construction due to the implementation of pandemic control measures in a number of cities in mainland China, and a concomitant decrease in the area of properties delivered during the Period, the Group recorded recognized property sales proceeds of approximately RMB 14.2 billion and sales of approximately RMB 15,385 million. Gross profit margin was 22.2% while gross profit was RMB 3,418 million. Due to the loss of joint venture projects and an increase in finance charges during the period, profit attributable to parent company owners was approximately RMB 1,274 million, while basic earnings per share were 30.2 cents RMB.
Prudent investment in land and expansion to maintain liquidity
Given the difficult operating environment, the Group suspended its land investments during the first half in order to maintain its liquidity. However, as of June 30, 2022, the Group, together with its joint ventures and associates, had a land reserve with a total planned gross area of approximately 36.7 million m², representing a total of salable resources of 390 billion of RMB, the existing land reserve should support the commercial performance of the Group in the next two to three years.
The Group maintains the principle of prudent financial management. It continuously optimizes its debt structure and meets its debt repayment obligations on time. In January 2022, the Group successfully issued additional senior bonds with an aggregate principal amount of $150 million in the offshore market, which demonstrated bond investors’ confidence in the Group. In addition, the Group paid funds in February 2022 to the trustees in advance to repay the US$500 million senior bond maturing on March 10, 2022. As of June 30, 2022, the net debt ratio of the Group was 79.8%, the unrestricted cash to short-term debt coverage ratio was 1.1 times, and the liabilities/assets ratio (excluding contract liabilities) was 68.3%. The Group has successfully stayed in the “green camp” under the “three red lines” regulations.
As the COVID-19 pandemic is gradually brought under control and the government continues to implement policies aimed at stimulating the economy, the Group expects the confidence of property buyers to gradually recover and the volume of real estate transactions is steadily increasing. Mr. Wong Chiu Yeung, Chairman and CEO of China SCE Groupsaid: “Looking forward, China SCE will continue to maintain the ‘dual track’ strategy at its core. For the residential development business, the group will strengthen its presence around first-tier and second-tier cities, by focusing on guaranteed delivery at the heart of its operation to maintain operational sustainability. For the investment property business, the Group will continue to focus on managing the “SCE Funworld” and “Funlive” brands, optimization of shopping center operations and increasing the asset and market value of apartments to further strengthen the Group’s differentiated competitiveness The Group will continue to maintain and strengthen the stability and resilience of its organization, and will work in the direction of reducing indebtedness, controlling debt, adjusting the financing structure and improving liquidity, in order to improve its operational efficiency and as secure its financial stability.
The issuer is solely responsible for the content of this announcement.
About China SCE Group Holdings Limited (HKEX stock code: 1966)
China SCE Group Holdings Limited was established in 1996, with a key value proposition of “We build to inspire” and a mission of “Create intelligent life to help achieve happiness”. The Group’s main businesses are property development, commercial management, property management and apartment rental. The group’s head office is in Shanghai, while implementing a key targeted strategy in the Yangtze River Delta Economic Zone, Guangdong-Hong Kong-Macao Greater Bay Area, Bohai Rim Economic Zone, Western Taiwan Strait Economic Zone and Mid-West Region. . Its real estate projects are located in 63 cities, covering a wide range of properties, including high-rise residential buildings, offices, shopping centers and long-term rental apartments. In 2022, China SCE Group was honored as “2022 Best 30 of China Real Estate Listed Companies with Comprehensive Strengths”, “2022 TOP 50 of China Real Estate Developers” and “Fortune China 500”. The Group will continue its commitment to the “Dual-track” strategic plan to secure its position as a regional leader by implementing more proactive and prudent development strategies, striving to become a more competitive real estate developer in China.
For more information, please visit China SCE Group website： www.sce-re.com