HONG KONG, Apr 1, 2020 - (ACN Newswire) - An established property developer in the PRC focuses on developing quality residential properties in the Yangtze River Delta Megalopolis for customers of all ages, Yincheng International Holding Co., Ltd. ("Yincheng International" or the "Company", together with its subsidiaries, the "Group", Stock code: 1902), announced its unaudited annual results for the year ended 31 December 2019 (the "Year").
From left to right: Mr. Zhu Li - Executive Director and Vice President, Mr. Huang Qingping - Chairman of the Board and Non-executive Director, Mr. Ma Baohua - Executive Director and President, Ms. Wang Yingning - Chief Financial Officer
Against an industry environment full of pressure and challenges, the Group has leveraged on its market advantages in the Yangtze River Delta Economic Zone, improved its overall competitiveness in product development, operation services, and brand quality, overcame growth bottlenecks with high-quality turnover. The Group continued to strive ahead, achieved scale expansion and pushed for steady development of various businesses.
During the Year, the Group recorded a revenue of approximately RMB9.01 billion, representing a significant increase of 77.8% YoY, which indicates the effect of the Group's heightened turnover strategy. Due to the decrease in gross profit margin of delivered properties and the corresponding increase in land value-added tax accrued due to the increase in delivered properties, the Group's net profit and total comprehensive income for the Year decreased by 26.3% YoY to approximately RMB365.2 million. The profit and total comprehensive income attributable to owners of the Company during the Year dropped by 64.9% YoY to approximately RMB155.1 million, mainly due to the fact that the shareholding percentages of the Group in delivered cooperative development project were in general lower than that in 2018. The Group's gross profit slightly decreased by 2.1% YoY to approximately RMB1.44 billion, gross profit margin and net profit margin amounted to 16.0% and 4.1%, respectively.
Leading sales performances of multiple projects, total contracted sales hit record high
During the Year, the contracted sales and the sales GFA of the Group together with its joint ventures and associates amounted to approximately RMB19.82 billion and nearly 1.13 million sq.m., respectively, representing a YoY increase of 107.7% and 125.1%, respectively, both hitting record highs. The CAGR of the contracted sales from 2017 to 2019 was 83.2%. In addition to the increase in contracted sales of Nanjing, Wuxi, Suzhou, Zhenjiang and Ma'anshan, there were unprecedented sales in Hangzhou, Xuzhou and Hefei, which demonstrates that the Group's development strategy has gained market recognition. Moreover, some projects have made new breakthroughs. For example, the Group's residential project of Honor Mansion in Nanjing hit the history high of contracted sales for a single project, the residential project of Huijian Weilai in Nanjing marked an insurmountable leading position in the regional market. Many other projects were sold out once launched.
Focus on five major regional markets, acquired a number of core and high-quality land parcels
Adhering to the development strategy of "based in Nanjing, cultivate the Yangtze River Delta and radiate the urban area", the Group further invested in the five major regional markets, being Nanjing, Southern Jiangsu, Zhejing, Huaihai and Anhui. In 2019, the Group acquired a total of 10 parcels of lands, including high-quality land parcels with great potential for development in Xuanwumen in Nanjing, Qingshan Lake in Hangzhou, and Liuhe in Nanjing. As at 31 December 2019, the Group had a land bank with a total GFA of approximately 5.22 million sq.m., out of which the land bank attributable to the Group amounted to approximately 4.30 million sq.m., which were mainly located in the core cities of the Yangtze River Delta Economic Zone, including Nanjing, Wuxi, Suzhou, Hangzhou, Hefei, Zhenjing, Ma'anshan, Xuzhou and Taizhou. The Group gradually established itself with residential properties as its focus and with development capabilities in various properties, such as commercial buildings, apartments, hotels and health and wellness properties. During the Year, the Group was awarded the "Top 20 Growing Enterprises in China's Real Estate Industry in 2019". In 2020, the Group ranked 90th among the "Top 100 Real Estate Developers in China in 2020", and recognized as one of the top 50 enterprises in the real estate development industry of Jiangsu Province for 17 consecutive years, further highlighting the Group's developmental strength and industry position have been recognized by the industry.
Continuous improvement in comprehensive strength with diversified financing channels
The Group promotes quick turnover and efficient operating strategies. While striving to shorten the development cycle, it also stresses human centered design and quality control to strike a balance between quantity and quality. In 2019, the Group's project operation efficiency has improved significantly, the average duration required to obtain the "Four Permits" has shortened to 4.8 months, and the average duration for the initial sale has been shortened to 7.2 months. Meanwhile, the Group's customer ratings continued to maintain at an industry benchmarking level, with an overall satisfaction of 91 points and customer loyalty of 74 points.
On 6 March 2019, the Group was listed on the Main Board of the Hong Kong Stock Exchange, which opened up new financing channels and helped the Group to optimize its financial structure, enhance corporate governance and brand influence, as well as promote the rapid development of the Group. In November 2019, the Group was included in the MSCI China All Shares Small Cap Index, which shows recognition of the Group's performance and value in the capital market. It is anticipated that the Company's shareholder base shall expand and the Company's trading volume shall increase. Also, the Group successfully issued US$100 million senior notes for the first time to further expand its overseas financing platform in December 2019.
Mr. Huang Qinping, the Chairman of Yincheng International, said "Last year, Yincheng International successfully listed on the main board of the Hong Kong Stock Exchange, marking the beginning of a new developmental milestone on an enhanced platform for the Group. The Group's excellent goodwill and reputation in the market, historical and deep-rooted economic development potential in the region, strong market foundation, solid established developmental and operational capabilities, and quality property products 'with healthy, comfortable, smart and convenient living environment for customers of all ages' have laid a sound foundation for sustainable and stable development.
In the future, external environment is full of uncertainties. Opportunities and challenges coexist, so do hopes and difficulties. The Group will continue to focus on the high-growth regional market along the Yangtze River Delta, and gradually establish Yincheng International's product and brand advantages in regional markets through the strategy to enhance market penetration. We will also seize opportunities that are in line with our investment strategy to focus on the development of small and medium-sized projects with great development potentials, and to achieve large-scale developments through the rapid turnaround model. Looking forward to 2020, on one hand, the Group will continue to capture development opportunities and minimize various risks through self-reform and innovation. On the other hand, we will adhere to our original culture of 'Create platform and cultivate talents' and has been implementing the talent training policy of 'to invest is to invest in talents', keeping up with changes by improving quality and efficiency, thus achieving sustainable and high-quality development over time."
Today, Yincheng International held the 2019 annual results online briefing in Nanjing headquarter. Nearly 150 fund managers, equity analysts and reporters participated in the event. The management gave the introduction of annual results and answered the participants' questions.
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