China SCE Group Announces 2022 Interim Results and Maintains Cautious Capital Structure and Maturity

2022 Highlights of intermediate results:

For the six months ended June 30
(million RMB)
Revenue 15,385
Gross profit 3,418
Gross margin 22.2%
Profit 1,543
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 property 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 remained 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 Group, said: “In the future, 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 cities and second-tier city centers, emphasizing guaranteed delivery at the heart of its operations to maintain operational sustainability. For the investment property business, the Group will continue to devote itself to operating the “SCE Funworld” and “Funlive” brands, optimizing the operation of shopping malls and increasing the value property and market value of the 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 towards reducing indebtedness, controlling debt, adjusting the financing structure and improving liquidity, in order to improve its operational efficiency and ensure its financial stability.

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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 “Creating intelligent life to help achieve happiness”. The Group’s main businesses are property development, commercial management, property management and apartment rental. The group’s headquarters is in Shanghai, while implementing a key targeted strategy in Yangtze River Delta Economic Zone, Guangdong-Hong Kong-Macao Greater Bay Area, Bohai Rim Economic Zone, Economic Area of ​​Western Taiwan Strait 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 awarded 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: