2016.02.24

Sales Target Overachieved, Revenue Greatly Increased

On February 23, 2016, Times Property Holdings Limited (stock code 01233.hk) made its annual announcement of results in Hong Kong for the 2015 fiscal year. In every respect, the statistics show that the company, in just its second year as a listed firm, has maintained consistent forward momentum. Additionally, with its progressive strategies, market-driven product-development structure, proactive sales strategies and prudent but flexible financial strategies, Times Property has been an outstanding performer in China's real-estate market throughout 2015. 

·Scene of the 2015 Annual Results Announcement of Times Property

Times Property recorded a contract sales volume of approximately RMB 19.508 billion and a total sold area of about 2.165 million square meters for the 2015 operating year, representing increases of 28.1% and 55.1% relative to 2014. The company has, since its IPO, enjoyed sales volume surpassing the industry average. Moreover, it has had a high compound growth rate for contract sales volumes of 40.95% between 2012 and 2016. With the steady delivery of sold real estate, confirmed sales revenue has risen dramatically so that, as of December 31, 2015, turnover was RMB 13.64 billion, an increase of 30.9% from the previous year. 

Profits Growing Rapidly and Sustainably, Dividends Increasing Steadily 

The profitability indexes all show evidence of the company's strong performance, too. Times Property's gross profit for 2015 was RMB 3.55 billion, up by 11.3% from the prior year. Overall, the Group's profit came to RMB 1.55 billion, while net profit-- attributable to equity holders--was approximately RMB 1.42 billion. Thus there were year-on-year increases of 14.6% and 11.1%, respectively. Basic earnings per share (EPS) reached RMB 0.82, rising by 10.8% compared to the previous year. Accordingly, the board of directors has recommended a final-dividend distribution of RMB 0.1563 (0.1434 in 2014) per share. 

·Scene of the 2015 Annual Results Announcement of Times Property

Abundant Cash Reserve, with Land Reserve Exceeding Hundreds of Millions of Square Meters

China's proactive monetary policy and improved financing environment in 2015 has facilitated convenient, low-cost financing for real-estate companies. Thus, Times Property seized the day when inland corporate bonds could at last be issued in China, whereupon it issued two corporate bonds--one each in July and October--securing a total financing volume of RMB 5 billion and low interest rates of 6.75% and 7.85%, respectively. Moreover, the opening of RMB corporate bond channels nationwide can benefit the Group in collecting capital at low cost, free of currency-exchange risk. These opportunities will effectively reduce the Group's financing cost, increase profitability and optimize the debt structure. 

Strong cash flow and healthy financial standing are conducive to growth in business and profits. Accordingly, they can support corporate activity, including efforts to secure the next phase of comparatively rapid growth for China's residential real estate, taking an active part in government public auctions and company acquisitions. As part of such efforts, Times Property has purchased a total of 13 plots of land in economically developed regions throughout the Pearl River Delta, including those in Guangzhou, Foshan, Zhuhai and others. Collectively, the land acquisitions offer a total planned floor area of 1,957, 000 square meters. 

As of December 31, 2015, the Group had a total land reserve of approximately 10,560,000 square meters, sufficient for the next three to five years of development activity. 

Flexibly Employing Strategies for Financing and Land Purchase While Actively Developing Business Extended from Real Estate

The People's Bank of China reduced interest five times in 2015, and the government issued several supportive policies for the industry. Thus the monetary policy is expected to be loose in 2016. Prior to Spring Festival in 2016, China again reduced the down-payment threshold for first-time buyers, and recently the Ministry of Finance released a policy outlining its plan to continue honoring preferential policies with respect to the real-estate deed tax and business tax. The collection of these favorable policies will help lower consumers' home-purchase costs and thereby encourage potential buyers. The real-estate markets in first- and second-tier cities are expected to recover in due time. 

·Scene of the 2015 Annual Results Announcement of Times Property

Times Property Chairman, Executive Director and CEO Mr. Shum Chiu Hung holds that the real-estate industry will welcome brand-new development opportunities. He adds that Times Property will stick to its comprehensive strategy for land purchasing, actively participate in the reform and reconstruction of Pearl River Delta cities, secure high-quality land reserves and optimize the Group's financial profile by making full use of China's more relaxed financial and tax policies and low-interest environment. Concurrently, Times Property will push forward in the rapid development of extended businesses from real estate, create new growth generators, and increase the overall value of the Group.