2021.03.24

On March 24, 2021, Times China Holdings Limited (stock code: 01233.HK, hereinafter referred to as "Times China") made its 2020 annual results announcement online. According to relevant data, Times China maintained steady development despite the pandemic and intense competition, recording contracted sales of RMB100.38 billion. This was the first time that the contracted sales of Times China exceeded RMB100 billion, and in fact sales increased by 28.1% year on year. Thus, Times China has entered a new chapter in its development.

Times China steadily improved its sales in 2020, continuously optimized its debt structure, further improved its regional layout, maintained abundant high-quality land reserves, and achieved high-quality development.

· Online Results Announcement of Times China (Guangzhou)

Board Chairman Shum Chiu Hung (middle), Executive Director Niu Jimin (left), and Joint President Zhou Siyang (right) of Times China

· Online Results Announcement of Times China (Hong Kong)

CFO Huang Sining (right), and Investor Relations Manager Zhou Ying (left) of Times China

The annual sales exceeded RMB 100 billion for the first time, an increase of 28.1% year-on-year

At the beginning of 2020, as the COVID-19 broke out, Times China immediately responded to the government's appeal, suspended the project construction, and shut down the sales offices. At the same time, Times China fulfilled its corporate social responsibilities, donated funds and supplies, and reduced rental or exempted tenants from rental to tackle the challenges. At the end of February, the company comprehensively resumed operations on the basis of enhanced pandemic prevention measures, which demonstrated the fulfillment of duties and social responsibilities.

In 2020, Times China recorded contracted sales of RMB100.38 billion in 2020, far surpassing the annual target of RMB82.3 billion with a completion ratio of 122%. It was the first time that the contracted sales of Times China exceeded RMB 100 billion, marking a 28.1% over the preceding year.

The delivery of some projects, however, was postponed due to the COVID-19 pandemic. Moreover, price-restriction measures were adopted in some popular cities during the real-estate regulation. Consequently, Times China recorded turnover of RMB38.58 billion and a net profit of RMB5.37 billion, registering minor year-on-year decreases of 9.1% and 3.5%, respectively. However, the net profit margin reached 13.9% in 2020, a year-on-year increase of 0.8%. The core net profit margin was 14.0%, a year-on-year increase of 0.3%.

Thanks to stable financial status and sound management, the debt ratio and financing cost continued to drop

Times China's consistent development is made possible by high-quality development. In 2020, the company adhered to its strategy of stability and prudence, maintained excellent operation quality, and continuously reduced its debt ratio and financing cost.

Statistically, in 2020 the net debt ratio of Times China was 65.6%, down 1.6% from 2019, which was low in the industry as usual. The cash-to-short-term liabilities ratio was 2.1, implying that Times China had favorable liquidity amid the enhancement of corporate scale.

Additionally, in 2020 Times China captured an opportunity to reduce its financing cost through debt replacement. The average cost of Times China's domestic corporate bonds was 5.6%, down 2.3% from the original cost of 7.9%. The average cost of medium- and long-term dollar bonds was 6.3%, down 1.7% from the original cost of 8.0%.

Given its consistent business performance and debt-ratio improvement, Times China maintained stable credit ratings among domestic and overseas entities despite the global pandemic and the implementation of new financing rules for real-estate enterprises.

· CFO Huang Sining of Times China announced the business results

A leading urban-renewal enterprise in the Greater Bay Area owned plenty of quality projects

Forward-looking strategic planning and abundant excellent land reserves also supported the high-quality development of Times China.

In view of China's current regional economic landscape, the five major urban clusters are the most active growth poles and energy sources for China's economy growth these days. Times China has been firmly developing its business in four of the urban clusters. In recent years, while making continuous and in-depth development in the Greater Bay Area and vigorously increasing the market share in the region, Times China gradually increases investment in the Yangtze River Delta, the middle reaches of the Yangtze River, the Chengdu-Chongqing City Cluster and other regions with high growth potential.

Times China acquired a total of 16 new land plots in 2020, representing a projected total floor area of approximately 3.6 million square meters. As of December 31, 2020, Times China had land reserves in 15 cities or regions, which represented a total floor area of approximately 21.59 million square meters. Those land reserves are mainly distributed in first- and second-tier cities and the Greater Bay Area. Specifically, land reserves in the Greater Bay Area (including Qingyuan) accounted for almost 90%, which was sufficient to support the company's stability and sustainable development over the next three years.

Times China, as a leading urban-renewal enterprise in the Greater Bay Area, has a wealth of quality projects, and throughout its history the company has demonstrated astonishing results in urban renewal. Thus, as the competitive advantage intensifies, the role of urban renewal in stimulating corporate development is increasingly apparent.

In 2020, Times China successfully transformed eight urban renewal projects, with a total floor area of 2.62 million square meters. Among them, five were converted into new land reserves with a total floor area of 2.2 million square meters, accounting for 60% of the new reserves in 2020.

As of December 31, 2020, Times China had over 160 urban renewal projects, with a potential total floor area of 53.37 million square meters approximately. Times China outperformed other peers in that regard.

Currently, Times China has leading experience in urban renewal. Against the backdrop of larger uncertainty in land acquisition, the value dividends of the urban renewal business of Times China can be obtained rationally, thus providing solid support for the improvement of operations and steady growth in scale.

· Board Chairman Shum Chiu Hung of Times China answers questions from the attendees

At the announcement conference, Times China Board Chairman Shum Chiu Hung stated that the company remains positive about of the development prospects of China's real-estate industry. He added that Times China would strive to ensure the quality growth of residential project development, develop its competitive advantages in regard to urban renewal, and collaborate in commercial business and industrial parks. This is a new beginning for Times China following its attainment of more than RMB100 billion in single-year sales and before it becomes a Global 500 company. Times China will continue the pursuit of high-quality development, strike a balance between growth, benefits and risk, continuously enhance its competitiveness and the capability of sustainable development, and fulfill its promise as a century-old enterprise.