2021.08.18

Times China Holdings Limited (stock code 01233.HK) published its 2021 interim results announcement online on August 18, 2021.

Times China enjoyed steady growth in its several core indicators during the first semester of 2021, along with a steady decline in its leverage level. Its urban-renewal business stably topped the industry. Thanks to a stronger regional presence, Times China 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

Steady growth in the sales scale and stable profitability

Times China, during the first half of 2021, followed the development direction specified in national policies, abode by the long-termism, pursue high-quality development, and forged ahead to secure long-term development.

The organization also experienced growth in the scale of its sales activity. In the first half of 2021, Times China recorded RMB45.38 billion of contract sales, a year-on-year increase of 39.3%.

The Company maintained stable profitability. In the first half, the consolidated income of Times China (based on the equity method) was RMB18.19 billion, a year-on-year increase of 21.8%. The consolidated gross profit (based on the equity method) was RMB5.62 billion, a year-on-year increase of 39.8%. The net profit was RMB1.92 billion, a year-on-year increase of 6.2%. The core net profit was RMB1.93 billion, a year-on-year increase of 5.7%.

A decline in the leverage level and improvement in the risk tolerance capability

Times China consistently reduced its leverage level and optimized the debt structure in the first half of the year. As at June 30, 2021, the interest-bearing debt of Times China decreased by RMB6.6 billion over the end of last year. The debts to be due in the year accounted for approximately 20% of the interest-bearing debt, down by 9% over the end of last year. At the same time, the financing cost declined gradually. During the first semester, the average financing cost of Times China was approximately 7.0%, down by 0.3% from the figure for 2020.

In terms of “three red lines”, in the first half, the net debt ratio of Times China was 68.7%, with prudent control. The ratio of cash to short-term debt, excluding funds under regulation, was 2.0, indicating favorable liquidity. The debt-asset ratio, excluding accounts received in advance, was 76.6%, a decrease of 2% from the end of 2020. Times China witnessed continuous growth in its risk tolerance capability. The management of Times China stated that the Company would further reduce its leverage level and was confident of achieving the liability control objective of shifting from “yellow” to “green”.

Urban-renewal business facilitated high-quality urban development

When ensuring the quality growth of residential project development, Times China maintained its competitive advantages in urban renewal, and experienced coordinated development of commercial business and industrial parks.

On the basis of first-mover advantages and years of efforts, Times China has become a leader in the domestic sector of urban renewal. By the end of June 2021, Times China had approximately 160 urban-renewal projects under different development stages in seven domestic cities, and the total potential area available for sale was approximately 53.40 million square meters.

Based on the principals of urban renewal, Times China facilitated high-quality development in cities so as to provide constant momentum for sustainable development.

Continue in-depth development in the Guangdong-Hong Kong-Macao Greater Bay Area while reaching out to other metropolitan zones

Times China, in compliance with the strategy of corporate development, conducted its activities throughout the Greater Bay Area while gradually increasing investment in the Yangtze River Delta, the middle reaches of the Yangtze River, the Chengdu-Chongqing City Cluster and other regions offering high growth potential.

As of June 30, 2021, Times China had land reserves in 16 cities or regions, representing a total floor area of approximately 21.66 million square meters. The amount is sufficient to support the coming three years of development.

The land reserves of Times China in the Greater Bay Area (including Qingyuan) accounted for nearly 90%. Moreover, Times China gradually reached out to other metropolitan circles, obtaining land reserves in Chengdu, Nanjing, Hangzhou, Wuhan and Changsha.

▲ Board Chairman Shum Chiu Hung of Times China answered questions from attendees

Mr. Shum Chiu Hung, board chairman of Times China, stated the following at the conference: In 2021, it was predicted that the overall macroeconomic status would be stable, and China’s monetary policy would continue to be reasonable and encouraging of affluence, with greater emphasis on fiscal precision and effectiveness. Thus, Times China will adapt to the national policy and orientation as it continues on the path of consistent, reliable growth.