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Modern Land Announces 2017 Interim Results; Achieved Stable Growth

PR-Inside.com: 2017-08-15 04:05:21
HONG KONG, Aug 14, 2017 - (ACN Newswire) - China's leading green technology real estate developer and operator Modern Land (China) Co., Limited ("Modern Land", the "Company"), together with its subsidiaries (the "Group"), stock code: 1107.HK, is pleased to announce the Group's unaudited operating statistics for the 2017 Interim Results.

HIGHLIGHTS

- Achieved contracted sales of approximately RMB9,036.3 million, representing an increase of approximately 21.3% as compared to the corresponding period in 2016.

- Revenue increased to approximately RMB4,294.4 million and profit for the period increased to approximately RMB534.7 million as compared to the corresponding period in 2016.

- The Group's total asset as at 30 June 2017 amounted to RMB37,349.3 million, an increase of approximately 31.0% as compared to the figure as at 31 December 2016.

- Gross profit margin increased to 20.7%, net profit margin increased to 12.5%.

- As at 30 June 2017, bank balances and cash (including restricted cash) was RMB8,693.5 million.

- The weighted average borrowing cost of the Group decreased to 7.5% as at 30 June 2017 (as at 31 December 2016: 8.07%).

- Net debt to equity ratio decreased to 63.5% as at 30 June 2017 (as at 31 December 2016: 68.0%).

- Declared interim dividend of HK2.3 cents per ordinary share and proposed a bonus issue of one bonus share for every ten existing ordinary shares held.

In 2017, the Chinese government tightened control over the real estate market. Many property market regulation and control policies were published in different cities. Besides, real estate industry financing was tightened while local governments increased land supply. The Group has maintained steady growth with innovative mode and efficient operation in the tightening environment of macro-control. As of 30 June 2017, contracted sales of the Group amounted to approximately RMB9.036 billion, representing a year on year growth of 21.3%, which grows constantly and steadily. The Group pre-sold 893,425 sq.m. in total gross floor area("GFA") and 2,370 units of car parking spaces, representing an increase of 35.6% and 75.3% respectively over the same period in 2016.

The Group's revenue from delivered sale of properties amounted to approximately RMB4,185.7 million in the first half of 2017. The Group delivered 243,515 sq.m. of property in terms of total GFA and 1,019 units of car parking spaces during the period. Recognised delivered average selling price ("ASP") was RMB16,832 per sq.m., which witnessed a growth of 196.0% compared to the corresponding period last year. And ASP for car parking spaces was RMB85,124 per unit for the six months ended 30 June 2017. The profit of the Group for the period attributable to owners of the Company amounted to approximately RMB506.0 million for the six months ended 30 June 2017. Diluted earnings per share was RMB20.2 cents. In respond to shareholders with a stable dividend, the company declared interim dividend of HK2.3 cents per ordinary share and proposed a bonus issue of one bonus share for every ten existing ordinary shares held.

In addition to strong sales growth, the Group constantly improved the land layout, explored new cities in terms of land reserves and acquired new projects in Wuhan, Zhangjiakou, Quanzhou and Foshan which perfected the layout in the middle and lower reaches of the Yangtze River, Bohai Sea Rim and the Pearl River Delta. The Group continued to apply the balanced strategy as its general direction towards land acquisitions. The Group continued to maintain regional cultivation with a focus on the tier-one and high-end tier-two cities, increasing its market shares in the four major regions of Central China, Eastern China, Northern China and Southern China. The Group acquired six new projects with a total gross floor area of approximately 1,503,816 sq.m. at a total consideration of RMB3.88 billion in the first half of 2017.

The Group entered the U.S. market since 2012, and accumulated certain experiences in the U.S. property market. As at 30 June 2017, the Group wholly owns a parcel of land located in Pearland, Texas, the U.S., and two parcels of land located in Seattle, Washington, the U.S., in the form of a joint venture. The parcels of land are at the preliminary preparation stage. The Company has announced in November 2016 that the Group formed a fund with Great Wall Pan Asia International Investment Co., Limited. The total fund size reaches US dollar 90 million. The Group is optimistic about the development of overseas business, and actively seek overseas property project development opportunities, in order to strive for a higher return for the shareholders.

Borrowing costs continued to decrease because of the good credit standing of the Group. The weighted average borrowing cost of the Group decreased to 7.5% as at 30 June 2017 (as at 31 December 2016: 8.07%). Net debt to equity ratio has been improved and decreased to 63.5% (as at 31 December 2016: 68.0%).

During the first half of the year, the Company was awarded a number of honors and accolades, for example, Shang Pin Ge MOMA (Changsha) obtained "Three-star Certificate of Green Operations Label", making the Company the only enterprise in China that has obtained 3 "Three-star Certificate of Green Operations Label". On 10 June 2017, the Company was rated as "Top 1 of 2017 China Green Property Operations" and "Top 10 Green Real Estate Developers" by Standard Ratings, a domestic authoritative media platform, while Wan Guo Cheng MOMA (Tongzhou, Beijing) was awarded Top 1 2017 China Green Property.

For the outlook of the second half of 2017, the Company will establish an extensive land resource platform and fund platform clustering. The Company will proactively explore opportunities with properties developers, branded developers and fund platform, while the regional companies will establish fund pools and explore more channels to introduce new business partners. Efforts will be made to diversify land acquisition methods, such as participation in urban redevelopment projects, acquisition of all types of equity interests and assets, entrusted construction, projects with minority interest and public tendering, etc. In the second half of the year, the Company will continue to innovate in its business model, and complete the transition into the "industry, city, human and culture-oriented" business model, creating more jobs for the local communities and implementing crowd flow direction and cultural introduction in the towns. The Company has launched the MOMA unique towns in the first half of the year and it will establish the green town development model and operation mode in the second half of the year. Besides, the Company will constantly focus on innovation in order to offer more high-quality buildings and green habitat solutions. The Company will adhere to the strategy of differentiated core competitiveness and green technology strategic plan, in order to realize the annual strategic business objectives in 2017, provide better returns for our shareholders and reciprocate the society.

Topic: Press release summary

Sectors: Daily Finance, Real Estate, Const/Eng

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From the Asia Corporate News Network

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