2017.02.28

Times Property Holdings Limited (stock code: 01233.hk) issued the 2016 Annual Results in Hong Kong on February 28, 2017, in which is real-estate development operation Times Property recorded contract sales volume of RMB 29.33 billion and a contract sales area of 2.473 million square meters for the year in review, thus representing year-on-year increases of 50.3% and 14.2%, respectively, and continuing the steady momentum the company has enjoyed since it was listed on the stock exchange.

Times Property Group Chairman Shum Chiu Hung (right) and Times CFO Lei Weibin (left)

Outstanding performance and steadily increasing financial indicators

The real-estate industry achieved new records in the volume and price of market transaction during 2016, recording increases for both in the first half of the year and steadily regaining momentum in the second half, thanks in part to the introduction of regulatory policies in key cities. As the result of an initial surge, the trend for the year could be characterized as one of stability.

Times Property, in 2016, achieved a contract sales volume of RMB 29.33 billion, rocketing upward by 50.3% year-on-year. The contract sales area was 2.473 million square meters, representing an increase of 14.2% over that of the preceding year. Annual revenue amounted to RMB 16.21 billion, a year-on-year increase of 18.8%. Annual profit was RMB 1.98 billion, up 27.8% by comparison to the preceding year. Core net profit was recorded as RMB 1.83 billion, growing by 24.1% year on year. The gross profit margin and core profit margin were 26.2% and 11.3%, respectively. The earning per share was RMB 113 cents, representing a year-on-year increase of 37.8%. The diluted EPS was RMB 107 cents, representing a surge of 44.6%.

Additionally, thanks to continuous improvement in profitability and a sound financial policy in 2016, Times Property continued the enhancement of its debt structure and the reduction of financial costs. The company's net debt ratio had decreased to 54.7% by December 31, 2016, from the ratio of 77.3% recorded on the same calendar date of the preceding year. The results show that, as of December 31, 2016, Times Property still held RMB 11.9 billion cash and bank deposits, with such a figure exceeding its amount for December 31, 2015, by 27.1%. Moreover, the company was sufficient in terms of cash and bank deposits.

Q&A of conference

Times Property entered Shenzhen, Dongguan, Huizhou and other cities in 2016 as part of an effort to further perfect its overall layout in the Pearl River Delta region. As of December 31, 2016, the company had 54 major projects at different phases throughout the region (Guangzhou, Shenzhen, Foshan, Dongguan, Zhuhai, Huizhou, Zhongshan, and Qingyuan) as well as in Changsha and other developed cities of Hunan Province. The projects on the market were very well received, and consequently market share grew.

"The Times Property Group will continue its development in the region as we actively participate in urban renewal and improvement in order to vigorously enhance our market share in the region," read an official statement. It is also reported that Times will flexibly respond to market changes, actively promote sales, continue to identify and analyze market risks, and enhance cash-flow management. Accordingly, Times Property has increased its land reserve through multiple channels, in the process of which it has acquired 14 projects covering a total planned floor area of 3,440,000 square meters. As of December 31, 2016, the Group had a total land reserve of approximately 13,060,000 square meters, such an amount being sufficient for the next three to five years of development.

In 2016, thanks to the increase in the number of properties and properties area under Times' property management arm, as well as the construction of integrated life service platform, revenue from the property management sector increased to RMB 288 million for 2016, moving up from the previous year's figure of RMB 168 million. Revenue from commercial property leasing and subleasing increased to RMB 298 million from RMB 245 million recorded in the preceding year. Going forward, Times Property will expand its business to community services, commercials, innovation office parks and other businesses as it continues to fortify its main business, thus ensuring balanced growth with respect to size and profit.

Photo of the conference

Active construction of "Smart Towns" to support national industrial upgrading

Times Property, based on years of solid foundation in urban renewal, launched the "Times Smart Town" strategy in 2016 as part of its effort to participate wholeheartedly in China's urbanization process. The strategy was enthusiastically welcomed by local governments, and to date the company has signed a number of framework agreements on cooperative development of Times Smart Town with the local governments of Guangzhou, Foshan, Zhongshan, Dongguan and other places. It will continue to participate in the construction of smart towns in order to support the country's mission of industrial renewal.

Future prospects

According to Times Property, the real-estate market will gradually become stable in 2017, which will be beneficial to the long-term healthy development of the industry and enterprises. The real-estate industry, with its gigantic volume, and the nationwide program of new urbanization development will continue as a pillar industry that supports the stable development of the nation's economy.

Times Property will continue to expand in scale and increase its market share. Amid the constant upgrading of cities and industries, the real-estate market will continue to flourish, and the company will seek in-depth development in the markets where it is already present. Thus, Times Property will provide residential, commercial, office, industrial and other whole-chain product and service solutions to meet the requirements of urban development.