Providing Strong Impetus to the Paralleled Development of Real Estate Development, Internet Financing and Real Estate Fund Business
HONG KONG — Greenland Hong Kong Holdings Limited (“Greenland Hong Kong” or the “Company”, stock code: 337.HK), a subsidiary of Greenland Holdings Corporation Limited (“Greenland Holdings”), which is a leading global real estate company, today announced its unaudited interim results for the period ended 30 June 2017 (the “period under review”).
Business Highlights (As of 30 June 2017)
– Profit amounted to approximately RMB411 million, an increase of 856% from 1H2016
– Profit for the period attributable to owners of the Company reached approximately
RMB227 million, an increase of 125% from 1H2016
– Basic and Diluted EPS increased by 75% to RMB0.07
– Contracted sales hit approximately RMB16,250 million with 77% growth
– Issued US$400 million of 4.5% bonds due 2018 in July 2017
– “Greenland Guangcai:, the self-developed online wealth management platform, launched and promoted wealth investment products that totaled RMB4,857 million. Number of registered users surpassed 1 million, with turnover totaled over RMB10 billion and daily highest sales volume over RMB100 million
– Held a land bank of approximately 14,600,000 square meters as of 30 June 2017
For the period under review, the Company recorded a total revenue of approximately RMB4,754 million. Gross profit rose to approximately RMB994 million, gross margin rose from 9% to 21%, mainly driven by the delivery of projects with higher margin. The profit for the period amounted to approximately RMB411 million, a sharp gain of 856%. Net profit attributable to owners of the Company reached RMB227 million, representing an increase of 125% year-on-year.
Mr. Chen Jun, Chairman of the Board of Directors and Chief Executive Officer of Greenland Hong Kong, said, “The real estate market continued to maintain strong growth during the first half of 2017, especially in land purchase. Despite the influence of purchase limit policy, various indicators of first-tier and second-tier core cities have shown a slowdown in performance, the overall real estate market still sustained its general upward trend. During the period, total real estate inventory reduced considerably, in particular, the first-tier and second-tier cities made significant progress in trimming inventory. With the continuous growth of the real estate market, the overall performance of the Group was beyond expectations. Contracted sales achieved a 77% growth during the period under review.”
During the period under review, the contracted average selling price of Greenland Hong Kong was approximately RMB12,625 per square meter while the revenue derived from property sales was approximately RMB4,510 million.
Sustaining the cultivation of real estate major business and proactively exploring new projects
The Group leveraged the well-established brand image, abundant resources, massive scale and system as well as the advanced management standard of its parent company, Greenland
Holdings, to carry out a comprehensive consolidation of resources closely in line with its overall strategy by fully utilizing the advantages of the capital platform in Hong Kong in order to promote high-end projects proactively.
During the period under review, the total contracted sales GFA surged by approximately 85% to 1,287,098 square meters.
As in the past, the bulk of contracted sales derived from projects in Yangtze River Delta, including those in Jiangsu, Shanghai and Zhejiang, which accounted for 19%, 17% and 9% of the total contracted sales respectively. Other contracted sales included those derived from core projects in Hainan, Jiangxi and Guangxi, accounting for 27%, 11% and 11% respectively.
In the near future, the Group will persist in exploring key regions and cities through its differential strategy, increasing residential land reserve and developing more competitive products.
Exploring light asset transformations through strategic cooperation for mutual benefit
As a listed platform in Hong Kong under Greenland Holdings, the Group aggressively sought diversified opportunities for strategic cooperation and mutual benefit, and managed to make substantial progress.
In June 2017, the Company entered into the strategic cooperation on project regarding the Greenland Spring City Dian Lake International Model Town in Kunming, which involved a diversity of industries such as international health check, medical treatment and aesthetics, resort hotel and venture capital base for health research. The cooperation does not only echo with Greenland Holdings’ nationwide strategic layout of “themed town” as well as its commitment to innovation and transformation, but also conforms to the requirements of “stabilizing growth and promoting investment” of the central government, and Shanghai and Yunnan governments, and is expected to become another example for mutually beneficial cooperation between local government and enterprises.
Making significant progress in Internet financing business with turnover totaling over RMB10 billion again
Since its establishment, Shanghai Greenland Financial Information Services Co., Ltd (“Greenland Financial Services”) has been focusing on the three strategic directions – “Online Wealth Management, Assets Management and Information Services”for two years. The Company has become the leading player in the real estate internet finance sector.
In terms of assets management, during the first half of 2017, the size of the assets managed by Dao Kun Asset, a subsidiary of Greenland Financial Services, has reached nearly RMB10 billion. The stock assets amounted to RMB5,976 million. The model of Dao Kun Asset’s real estate fund further transformed from a mono bond investment fund to the diversified model of acquisitions and mergers etc.
In terms of online wealth management platform, Greenland Guangcai, an online wealth management platform self-developed by Greenland Financial Services, has shown steady growth. It released and issued financial products in the aggregate amount of RMB4,857 million in total, with over 1 million registered users and over 10 billion total transaction volume. The platform’s daily highest sales volume has surpassed RMB100 million while the monthly highest figure has already passed the RMB1 billion mark. Greenland Guangcai continuously optimized and innovated its platform construction and launched the pioneering “Coupons Search Function”, which enhanced the concept of social wealth management. Greenland Guangcai has always adhered to strict supervision and promoted construction according to rules and regulations. It became a formal member of National Internet Finance Association of China in April and entered into a bank deposit agreement with China CITIC Bank in June. Under strict risk control, Greenland Guangcai has been free from penalty for breach of contract, bad debt or deferred payment.
In addition, building on the foundation of big data, Greenland Financial Services has fully realized the value of CRM platform developed with its immense technological strength, covering over 90% of the new cases of the Company. Meanwhile, registered users have increased by 130%, fully demonstrating the success of precision marketing.
Possessing huge land bank, ensuring sustainable development
To further focus on key regions and to optimize investment structure, the Group continued to expand land reserves to ensure its sustainable development. As at 30 June 2017, the Group held a land bank of approximately 14,600,000 square meters, strategically located in the prime zones of major cities in the Yangtze River Delta and Pan-Pearl River Delta regions.
In January 2017, Greenland Hong Kong entered into an equity transfer agreement with Wuxi Metro Group Co., Ltd. to acquire 90% equity interest in Wuxi Guangcheng Metro Above-Station Property Development Co. Ltd. at a total consideration of approximatelyRMB2,340 million. Meanwhile, the Group successfully bid for a land parcel located in Nanning, Guangxi at a total consideration of approximately RMB535 million with Guangxi Baota Industrial Park Development Investment Company Limited and Haixia Capital Management Co., Ltd.
In May 2017, the Group acquired the property development projects situated in Wujiang city in Suzhou at an aggregate consideration of approximately RMB601 million. In June, the Group bid for a land parcel located in Jiangnan District, in Nanning, Guangxi at a total consideration of RMB904 million. In August, the Group successfully acquired a project in Foshan, Guangdong province at a total consideration of RMB1.18 billion, aiming at developing it into a high-end town with special characteristics, featuring with enrich eco-logical resources for developing tourism property. This marks the Group’s first successful step to enter into the Guangdong market.
On top of the land reserve, which is sufficient to support its development over the next 3 to 5 years, the Group will continue to seek additional high-quality land projects with promising potential of development.
Looking ahead, China will experience a more solid economic recovery as the market adaptability of corporates becomes even stronger and the economic structure continues to improve.
Greenland Hong Kong has always paid high attention to Yangtze River Delta and Pan-Pearl River Delta and is highly confident in the market potential of the area. It especially attaches high importance to the investment opportunities in core cities. The Group will stick to its active and steady project reserve strategy, under which the Group will focus on core factors such as economic development, population and industrial development to further allocate resources to key areas, key cities and key projects as well as gearing up its development efforts in Yangtze River Delta and Pan Pearl River Delta.
Meanwhile, the Group will continue to selectively replenish its land bank with quality land plots with promising development potential, further optimize its investment structure, effectively control costs and investment risks, make strenuous effort to develop regional strength and increase regional value with a view to achieving win-win.
In terms of finance business, Greenland Financial Services will constantly revolve around its core corporate development strategies, improving customers’ investment experience incessantly integrating the Group’s resources on a high level, enriching and innovating product design; building talent pool in a continuous manner, enhancing risk control and post-investment management. Our ultimate mission is to create an appealing and warm finance ecosystem characterized by “full online, light assets, personalized and socialized features”. Greenland Financial Services believes that the continuous optimization of the operation and management of online wealth management platform will provide strong impetus to the development of the three pillars of the Company – “the principal real estate business, internet finance and real estate fund”.
Greenland Hong Kong Holdings Limited
Greenland Hong Kong Holdings Limited (Stock Code: 337.HK) is the subsidiary of Greenland Group, a Fortune Global 500 company.
Greenland Holding Limited (“Greenland Holdings”, Stock Code: 600606) is a large state-owned mega enterprise under the management of the State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government. Founded on July 18, 1992, the company was headquartered in Shanghai, China.
For a development history of 25 years, Greenland Group has created the diversified development pattern of “focusing on the development of real estate market and placing an equal stress on the emerging sectors like Big Infrastructure, Big Finance and Big Consumption”, and implemented the strategy of capitalized, popularized and internationalized development. Greenland Group has secured its market presence across over 80 domestic cities including Beijing, Shanghai and Guangzhou, and across 12 cities of nine countries including the United States, Britain, Germany, Australia, Canada, South Korea, Thailand and Malaysia. Now Greenland Group has got listed at China Mainland’s A-share market (600606.SH) and partially listed at Hong Kong’s H-share market (00337.HK 01365.HK), building a capital platform which integrates domestic and overseas resources into one whole. Greenland Group ranked the 277th place in 2017 Fortune Global 500.
With the overall listing as a good opportunity, Greenland Group will fully utilize the function of capital market and grow into a China-based multinational enterprise with outstanding principal operation, diversified development, global presence, industry-finance combination, and leadership in multiple sectors like real estate, finance and subway, working hard to transform from “China’s Greenland” to the “World’s Greenland”. As Greenland Group’s international capital operation channel and brand display window, Greenland Hong Kong will boost the innovation, transformation and upgrading of capital platform and industry when Greenland Group’s overall strategy is treated as the guideline to offer the vigorous supports for the company’s sustainable development.
When further exploring the real estate market, Greenland Hong Kong spares no effort to push forward the “Big Finance” strategy by establishing Greenland Financial Information Services Limited (“Greenland Financial Services”) in Shanghai. By leveraging big data, cloud platform and mobile internet, Greenland Financial Services pumps much efforts into the vertical field of real estate market, adopts the innovation of services and products as the guiding principle, and works hard to build the Internet platform which covers wealth management and investment, social finance and community finance, so that Greenland Group can create an internet-based financial eco-system.
Based on Greenland Group’s mature brand image, abundant resources, large-scale system, advanced management level and passionate corporate culture, Greenland Hong Kong will comprehensively integrate all the existing resources, fully utilize the advantages of capital platform in Hong Kong, and actively carry out its first five-year plan, i.e., striving to grow into the real estate pacesetter at Hong Kong’s capital market.