On March 31, time China Holdings (01233. HK) released its 2021 annual report and held a performance conference. In 2021, time China Holdings recorded contract sales of 95.59 billion yuan, a year-on-year decrease of 4.8%; The operating revenue reached 43.64 billion yuan, a year-on-year increase of 13.1%; The core net profit reached 4.8 billion yuan, a year-on-year decrease of 10.9%; The core net profit margin was 11.0%, down 3 percentage points year-on-year.
The announcement shows that in 2021, times China Holdings continued to decline its leverage level through active debt management. By the end of 2021, the company’s interest bearing bonds had decreased by 8.12 billion yuan compared with the end of the previous year. The indicators of the company’s “three red lines” also continued to improve, among which the net debt ratio and cash short debt ratio were 76.7% and 1.9 respectively, both of which were better than the regulatory requirements; After excluding the assets and liabilities at the end of 2020, the collection rate decreased by 4.4%. The company’s financing cost is also continuously optimized. The average cost in 2021 is about 6.6%, down 0.7 percentage points from 7.3% in 2020.
In terms of soil storage, by the end of 2021, time China Holdings had a land reserve with a total construction area of about 19.94 million square meters, of which soil storage accounts for nearly 90% in the economically developed Guangdong Hong Kong Macao Bay area, which is enough to support the development of the company in the next three years.
In terms of urban renewal, at present, time China Holdings has about 135 urban renewal projects at different stages of development in 9 cities, with a potential total saleable area of about 40 million square meters and an estimated total value of more than 1 trillion yuan. It is mainly distributed in key cities in Dawan District, such as Guangzhou, Foshan, Dongguan and Shenzhen. In 2021, the company successfully transformed 6 urban renewal projects, with a total construction area of about 1.28 million square meters, of which 3 were converted to soil storage, with a total construction area of about 990000 square meters.
In addition, since 2021, times China Holdings has continuously passed confidence to the market through repurchase and other measures. The Company repurchased 6.48 million shares in 2021, with a total amount of HK $60.45 million; For the US dollar bonds due at the end of April 2022, the company has repurchased about US $82.78 million by the end of February 2022.
The management of the company said that in the future, China Holdings will more actively adapt to national policies and directions, adjust the company’s business model, take a new development model with quality and stability, and promote the sustainable development of the enterprise. The company will continue to maintain its strategic focus, focusing on residential development business and urban renewal business, and maintain an appropriate scale and high-quality land reserve; Focus on the high-value areas in the Great Bay area of Guangdong, Hong Kong, Macao, and steadily develop high potential areas such as the Yangtze River Delta, the middle reaches of the Yangtze River and Chengdu Chongqing urban agglomeration to achieve quality development.
