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Thursday, 27 August 2020, 12:30 HKT/SGT
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Source: Redsun Properties Group Limited
Redsun Properties 1H2020 Revenue Surges 146.3% to RMB9.6 Billion, Core Attributable Profit Up 30.7% to RMB656.6 Million
Implements "Dual-driven" and "Quality and Efficacy Enhancement" Strategies
Continues to Promote Nationwide Strategic Layout

HONG KONG, Aug 27, 2020 - (ACN Newswire) - Redsun Properties Group Limited ("Redsun Properties", or the "Group", stock code: 1996), a leading comprehensive property developer in Mainland China, announced its interim results for the six months ended 30 June 2020. The Group has continued to achieve synergic development, maintained a solid financial position and promoted a nationwide layout under its "Property + Commercial" dual-driven strategy.




Results Highlights:
- Contracted sales up 4.4% to RMB31.6 billion. Contracted average selling price increased by 13.6% to RMB14,642 per sq.m.
- Revenue surged 146.3% to RMB9.6 billion in 1H2020
- Gross profit amounted to approximately RMB2.43 billion, surged 115.0%; Gross profit margin was 25.3%
- Core net profit jumped 80.7% to approximately RMB874.2 million, core net profit margin was 9.3%
- Core profit attributable to owners of the parent grew 30.7% year-on-year to approximately RMB656.6 million
- Maintained healthy financial position, net gearing ratio decreased 1.7 percentage points to 68.7% with sufficient cash on hand of approximately RMB18.3 billion, up 8.5% against the year-end of 2019
- Land bank increased by 8.5% when compared with the end of 2019 to approximately 18.4 million sq.m., supporting nationwide development layout in the future
- Revenue from commercial operations increased 14.2% to approximately RMB212.8 million

Establishes nationwide layout: Achieves stable sales performance and rise in quality via intensive development
Redsun Properties implements investment strategy of "penetrating the Greater Jiangsu Region, strengthening foothold in major metropolitan areas and expanding into core cities", and has maintained sustainable growth in the first half of 2020. Contracted sales amounted to approximately RMB31.6 billion in the first half year, representing a year-on-year increase of 4.4%. According to CRIC's statistic, sales of the Group increased its rank to 46th nationwide. Average contracted selling price increased by 13.6% to RMB14,642 per sq.m. Revenue of the Group reached approximately RMB9.6 billion, representing an increase of approximately 146.3% as compared with the same period last year, mainly generated from the sale of developed residential properties and supporting retail stores, rental income from commercial property investments and operations, and service fee income from its hotel operations. Business from commercial operation continue to bring in stable income to the Group. During the review period, the Group operated three Hong Yang Plazas, which are located in Nanjing, Changzhou and Yantai respectively. This segment has generated total sales income of around RMB212.8 million, which was 14.2% more than the last corresponding period. The increase was mainly due to contributions from the newly opened Pavilion C2C3 of the Nanjing Hong Yang Plaza in 2H of 2019. During the review period, the Group's gross profit margin was 25.3%. Core net profit jumped 80.7% to approximately RMB874.2 million, while core net profit attributable to owners of the parent grew by approximately 30.7% to RMB656.6 million. Basic earnings per share were RMB0.20.

During the review period, the Group entered new cities such as Anqing, Huai'an, Suqian, Xianyang and Wuhu, thus forming a nationwide layout. As at 30 June 2020, the aggregate gross floor area of the Group's land bank was approximately 18,374,029 sq.m., representing an increase of 8.5% compared with the end of last year, which is sufficient for future development. Comprehensive view of the Group's national layout, its coverage has reached more than 43 cities nationwide, covering 169 projects, 76% of the land reserves are located in first- and second-tier cities.

The Group is also preparing to open 11 Hong Yang Plazas, located respectively in Hefei, Hengyang, Yangzhou, Xuzhou, Yanjiao, Jining, Fushan in Yantai, Lekai in Yantai, Dacheng in Changzhou, Fenghuangdong in Changzhou, and Anqing, signifying the promotion of the "Hong Yang Plaza" brand. With regard to the hotel operation, in addition to its present two hotels, the Group is owning an Ibis Hotel that under entrusted management model, so as to continuously optimize its business mix.

Continuous improvement on financial structure, achieved capital market recognition
In the first half of 2020, the Group's net gearing ratio was improved to 68.7%, the proportion of short-term debt dropped to 36.8%. The Group maintained a healthy cash position with cash and bank balances increasing to approximately RMB18.3 billion (31 December 2019: approximately RMB16.8 billion). Total assets exceeded RMB100 billion for the first time as of 30 June 2020.

Implements strategy of "penetrating into the Greater Jiangsu Region, strengthening foothold in major metropolitan areas and expanding into core cities"
The Group boasts a unique business model that emphasizes differentiated and quality development and fosters a "dual-driven" business strategy. In the second half of 2020, the Group will also adhere to "Quality and Efficacy Enhancement", which is the main theme of its operations. In respect of property development, the Group will persist in its nationwide strategic layout and further strengthen its foothold in key areas, such as Greater Jiangsu Region, Yangtze River Delta Region, Greater Bay Area and Chengyu, along with raising the quality of products and services, enhancing operational quality and efficiency, and improving profitability and capacity to withstand risks. With regards to commercial real estate, the Group will stress both expansion of scale and enhancement of operational efficiency. While exploring high-quality projects through diversified models, such as entrusted management, leasing and ownership, the Group will also constantly optimize and upgrade its business portfolio and foster innovation as well as enhance consumer experience, so as to create benchmark commercial property projects, thereby creating better return on assets of its commercial real estate business. In addition, it will endeavor to enhance its linkage with the property development business to achieve dual-driven synergic development.

About Redsun Properties Group Limited ("Redsun Properties") (stock code: 1996)
Redsun Properties Group Limited ("Redsun Properties" or "The Group") is a leading comprehensive developer in China, focusing on development of residential properties and the development, operation and management of commercial and comprehensive properties. The Group has established a steady regional leading position in Jiangsu Province by taking root in Nanjing, Jiangsu and Yangtze River Delta. Since the incorporation of Nanjing Redsun in 1999, Redsun Properties has worked in the sector of property development and sales for 20 years, established the Hong Yang brand and received widespread recognition for the development capacity and industry position. Redsun Properties has been ranked the 47th property developer in China in 2020.

While developing residential properties, Redsun Properties also operates commercial complexes covering shopping malls, amusement parks and community centers, hotels and office buildings. Most of the commercial property buildings are adjacent to the Group's residential property projects, providing ancillary services for the residents and also increasing the value of the Group's residential property projects.



Topic: Press release summary
Sectors: Daily Finance, Daily News
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