Great Reward from Bay Area Development: Times China Enjoys Tremendous 2018 Interim Results
· Times China 2018 interim results are announced
On August 1, 2018, Times China Holdings Limited (01233.HK) held the 2018 interim results announcement in Hong Kong, giving credit to the strategic advantages of the development in the Guangdong-Hong Kong-Macao Greater Bay Area for Times China's outstanding first-half core performance indicators.
· Mr. Shum Chiu Hung, board chairman, executive director and CEO of Times China
Gratifying performance in the first half, including sales volume of RMB 26 billion, an increase of 52.7% over the previous year
· Mr. Lui Wai Pang, CFO and co-secretary of Times China, announces the results
Times China's first-half financial results indicated brilliant performance by all involved. Profitability increased significantly, and international credit ratings improved.
Contracted sales of Times China totaled RMB 26.003 billion for the first half of 2018, an increase of 52.7% over the same period of the previous year. Turnover reached RMB 10.48 billion, an increase of 20.1% over the same period of last year, and gross profit was RMB 2.96 billion for a year-on-year increase of 28.5%. Meanwhile, the gross profit margin increased by 1.8% to 28.2% year-on-year, and net profit recorded RMB 1.135 billion, rising 42.2% year-on-year. Profit attributable to shareholders was RMB 1.184 billion, an increase of 137.9% over the previous year, while core profit attributable to shareholders totaled RMB 1.183 billion, an increase of 86.1% over the same period of the previous year. The basic earning per share was RMB 0.65, an increase of 124.1%.
As of June 30, 2018, Times China had sufficient liquidity with bank deposits and cash reaching RMB 20.66 billion, a 20% increase compared to the end of last year. Since the net debt/asset ratio was 67.2%, which was lower than the industry average, the financial performance was stable.
In the first half of 2018, Times China's average financing cost was 7.6%, which was the same as 2017. Against the tightening financing channels and rising financing costs, Times China has a smooth domestic and overseas capital market financing channels and maintains a relatively stable financing level.
A bright future awaits, thanks to continuous development in the Guangdong-Hong Kong-Macao Greater Bay Area
Times China had a total of 87 major projects at different development phases as of June 30, 2018. The majority of those projects are located in the economically developed cities of the Guangdong-Hong Kong-Macao Greater Bay Area.
Times China acquired a total of 11 new projects during the first half of 2018, representing a planned gross floor area of 1.69 million square meters. By June 30, 2018, the total land reserve of Times China reached 18.2 million square meters, with a value of approximately RMB 300 billion.
Additionally, in terms of urban renewal and renovation, by the end of June 2018, Times China had 70 urban renewal projects, which will collectively contribute approximately 19.5 million square meters of land reserves with a total value approaching RMB 500 billion. Moreover, several projects will be completed during the second half of 2018 and thereby create a new profit-growth opportunity for Times China.
Times China has also made remarkable progress in the sectors of industry, commerce, community services, education, home decor and furniture, logistics and warehousing.
Times China's Board Chairman and CEO Shum Chiu Hung stated that the company, as China's leading provider of services for urban development, will continue to develop the Guangdong-Hong Kong-Macao Greater Bay Area, actively participate in urban renewal and expand its operations so as to fulfill the "100-billion goal" as soon as possible. Thus, Times China continues its mission to become a Fortune 500 company.