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HONG KONG, Aug 29, 2013 - (ACN Newswire) - Yuzhou Properties Company Limited ("Yuzhou Properties" or the "Company"; stock code: 01628.HK) is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (collectively, the "Group") for the six months ended 30 June 2013 (the "Period").
During the period, turnover of the Group was RMB1,032.20 million, representing an increase of 8.1% as compared with the corresponding period of the previous year. The contracted sales recorded RMB5,699.11 million, representing a strong period-on-period growth of 50%. Profit attributable to shareholders soared by 43.6% to RMB150.45 million. Basic earnings per share was RMB4.35 cents.
In the period under review, the Group recorded upbeat sales data thanks to a rebound in sales which was mainly driven by home buyers coming back to the market, indicating huge solid demand in Mainland China. Sales increase not only drew down stocks but generated cash inflows, improved financial conditions, enhanced bargaining power and increased profit margin. We expect sales to remain robust in the next few months. Therefore, the Group raised the annual sales target by 12.5% to RMB9 billion.
In the first half of the year, the Group adopted flexible strategies for project development and marketing and launched a number of projects meeting solid demand including Yuzhou Shoreline, Yuzhou Central Coast and Yuzhou Skyline. As a result, contracted sales reached RMB5,699.11 million, a significant increase of 50.0% as compared with the same period last year. We are proud of excellent performance of market share for Xiamen and Heifei. For instance, in terms of saleable GFA sold, the Group ranked number one in Xiaman and our project, Yuzhou Skyline, ranked top three in Heifei.
In addition, the Group believes execution, sell-through rate and profit ratio are very important for investment decisions. During the period, leveraging on the depression period of the property market, the Group acquired three parcels of land with the average land cost of RMB1,280 per sq.m. and the aggregate GFA of approximately 1.84 million sq.m. which average cost is far below the market level. We expect this investment will provide satisfactory returns to the Group in the future.
Attributable Land Reserves
The Group possesses quality land reserves with low land cost. As at 30 June 2013, the aggregate GFA of the Group's saleable land reserves was 8.40 million sq.m. with an average land cost of approximately RMB1,476 per sq.m. and are located in nine first and second tier cities in the West Strait Economic Zone, the Yangtze River Delta Region and Bohai Rim Region. The Group believes that its land reserves currently held and managed are sufficient for the next five to six years future development.
Awards
The Group also received a number of widely recognized honours and awards during the period, including "The 2013 China Mainland Real Estate Company Top 10 Listed in Hong Kong in terms of Investment Value Ranking" from China Real Estate Top 10 Research Team, consisting of Enterprise Research Institute of Development Research Center of the State Council of P.R.China, Institute of Real Estate studies of Tsinghua University and China Index Academy. The Group was also awarded "2013 Top 50 China Real Estate Listed Companies with Strongest Comprehensive Strengths" from China Real Estate Research Association, China Real Estate Association and China Real Estate Appraisal. Our brand image has been getting further strengthening.
Outlook and Development Strategies
Looking into the second half of the year, amid the increasing rigid and ameliorative housing demand in domestic property market as well as the deepening urbanization movement, the Group is cautiously optimistic about the prospect of the mainland property market. The Group has geared up for the sales campaign for all our projects in a bid to seize opportunities brought by market changes.
With Yuzhou Cloud Top International in Xiamen, Yuzhou Castle above city in Longyan, Yuzhou Jade Lakeshire in Hefei and Yuzhou Prince Lakeshire in Bengbu, which are expected to be launched in the second half of 2013, along with existing projects including Yuzhou Shoreline, Yuzhou Central Coast Yuzhou Skyline Phase III and Yuzhou Golf, we are confident of exceeding the target for this year's contracted sales. The Group will adopt prudent strategies for financial management and maintain healthy financial position based on cash flow status and different circumstances.
The Group will continue to identify suitable projects with ideal returns in line with the needs of business development of the Group. On the other hand, we will seize market opportunities to replenish our high-quality land reserves in a timely manner. It is envisaged that the West Strait Economic Zone will remain as the key region for our future development, with the proportion in land reserves at or above 50%. For areas outside the West Strait Economic Zone that we have gained a foothold in, we will appropriately allocate resources to increase local land reserves and to develop the Group's brand equity, with an ultimate aim to solidify our presence in the region.
Looking forward, Lam Lung On, Chairman of Yuzhou Properties said, "With urbanization continuously pushing the property market forward, we believe that the property market outlook in the PRC will continue to be positive. For the mid-to-long term, upholding our philosophy of "Build Cities with Heart, Build Homes with Love", we will continue to conduct our business with integrity and utilize our brand equity and resources. We will pay greater attention on execution, sell-through rate and profit margin. In particular, efforts will be made to strengthen our dominance in the West Strait Economic Zone, progressively expand our presence in the economic zone of Yangtze River Delta Region and further intensify our penetration in the Bohai Rim Region, so as to achieve the Group's objective of the business development of the Group nationwide. Therefore, we are optimistic in achieving the annual target of contracted sales."
Topic: Press release summary
Source: Yuzhou Properties Co Ltd
Sectors: Daily Finance, Daily News
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