2019.08.06

On August 6, 2019, Times Property Holdings Limited (Times China, stock code 01233.HK) made its 2019 interim results announcement in Hong Kong. According to the data upon which the results were based, Times China maintained strong but sound development during the first half of 2019--particularly with growth in multiple core indicators, including contact sales volume, turnover, gross profit, net profit and core net profit attributable to shareholders--thus evidencing solid progress.

▲ Announcement of Times China's 2019 Interim Results

▲ Mr. Shum Chiu Hung, the board chairman of Times China, attends the conference

Times China Sees Benefits from the In-depth Development in the Greater Bay Area and Records Outstanding Results

▲ Mr. William Wong, CFO of Times China, announces the results

Construction in the Greater Bay Area officially kicked off with the official release of the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area in the first half of 2019. Times China has made in-depth development in the Greater Bay Area and achieved prominent growth in terms of benefits from regional investment, value and development potential, with several core indicators including sales and profit stepping into a new level.

Times China recorded contracted sales revenues of RMB 31.2 billion during the first half of 2019, marking a year-on-year increase of 20%.

Steady improvement was noted in regard to the company's profitability. In the first half of 2019, Times China's turnover reached RMB 15.9 billion for a year-on-year increase of 52%, while the gross profit was RMB 5.2 billion for a year-on-year increase of 76%. The gross margin grew by 4.3% to 32.5% year on year. The net profit was RMB 1.7 billion, increasing 50% over the previous year. The core net profit attributable to shareholders was RMB 1.7 billion, a year-on-year increase of 44%.

Times China has always implemented a wise financial strategy. As of June 30, 2019, the company's net debt ratio stood at 70.8%, representing a low level in comparison to the overall industry. The total cash and bank balance reached RMB 25.8 billion, an amount sufficient to cover short-term liabilities and indicate good liquidity.

Thanks to smooth financing channels in the domestic and overseas capital markets, Times China's financial costs were relatively stable, even registering a slight decline. The average financing cost in the first half of 2019 was 7.55%.

Times China's credit rating in the first half of 2019 was upgraded to "BB-" by Standard & Poor's and to "AAA" by United Ratings and China Chengxin Securities Rating Co., Ltd., which confirmed its recognition of and confidence in the company's development and credit from the capital market.

Additionally, Times China further optimized its capital structure and shareholder structure so as to promote the continuous growth and sustainable development of the company. Since it joined the HK Stock Connect in September 2018, Times China's shares held through HK Stock Connect have increased to 5%, accounting for nearly 14% of the outstanding shares (as of August 2, 2019), and the shareholder structure became more comprehensive in terms of geographical distribution and type.

Due to its good business performance and growth space, Times China's stocks enjoyed great popularity and active trading. In the first half of 2019, the company's average daily share turnover rose to HKD 94.07 million (as of June 30, 2019), an increase of 118% relative to the average daily share turnover throughout the year of 2018.

The Strategic Layout Sees Continuous Optimization

▲ Site of the 2019 interim results announcement

Times China acquired a total of 21 new land plots during the first half of 2019, combining for a floor area of approximately 5.17 million square meters. As of June 30, 2019, the company had a total land reserve of 23.08 million square meters in 15 cities, an increase of 25% relative to the end of 2018, sufficient to support Times China's development for the next three to five years. The land reserve is mainly distributed in the economically developed first- and second-tier cities of China and the land reserve in the Guangdong-Hong Kong-Macao Greater Bay Area accounts for approximately 90% (including Qingyuan).

Times China not only continues with in-depth development in the Greater Bay Area while vigorously increasing its market share in the region but it's also making gradual arrangements in other economically developed cities of Guangdong Province as well as other regions with high growth potential. Times China made its presence in Chengdu and Hangzhou in late 2018 and early 2019, respectively, and gradually implemented the established regional layout.

Times China meanwhile hastened the progress of its urban renewal operation. During the first half of 2019, four urban renewal projects were successfully transformed, with a total value of RMB 31.9 billion. It is expected that more projects will be launched in the short-to-medium term so as to continuously create more benefits and returns for the company.

Times China's Board Chairman Chum Chiu Hung stated in the conference that 2019 was the twentieth anniversary of the company's establishment. He went on to say that Times China would not only ensure the continuous and rapid development of its core business but would also spur urban renewal, commerce, community service, home improvement, education and other services, and that Times China would provide customers with better products and services, generate larger returns for shareholders and help more people live the lifestyle they are longing for.