HONG KONG SAR –
Media OutReach – 31 March 2023 –
China SCE Group Holdings Limited (“China SCE” or the
“Company”, together with its subsidiaries, the
“Group”, HKEX Stock Code: 1966), an integrated property developer in China, announced its audited annual results for the year ended 31st December 2022 (the “Year”).
Over the past year, in the face of industry risks and the impact of the pandemic, the confidence of domestic property purchasers has plummeted, dealing a blow to contracted sales. During the year, the Group recorded a contracted sales amount of approximately RMB59.023 billion, with a contracted sales area of approximately 4.91 million sq.m. The average selling price was RMB12,016 per sq.m. The Group together with its joint ventures and associates had an aggregate of over 120 projects for sale in over 50 cities, mainly in second-tier cities and core areas of high potential in third- and fourth-tier cities. As a result of the popular sales of Woven City in Hangzhou and the launch of a number of new properties by the Group in the Yangtze River Delta Economic Zone, this region has accounted for the largest share of contracted sales of the Group together with its joint ventures and associates, amounting to RMB24.609 billion or approximately 41.7% in 2022.
Balanced Land Bank and Liquidity While Maintaining a Record of “No Breach of Contract”
During the Year, the Group recorded a revenue of RMB26.71 billion and a profit attributable to owners of the parent of RMB24.5 million. The financial position remained robust and maintained a record of “no breach of contract”. The Group has also successfully implemented financing strategies to optimize the capital structure. Since December 2022, the Group has successively signed strategic cooperation agreements with several commercial banks to provide necessary financing services for the Group, receiving more than RMB43 billion in loans. In addition, benefited from national policies, the Group became one of the first private real estate enterprises backed by China Bond Insurance Co., Ltd. (“CBIC”) in 2023 and successfully issued bonds, which was a mark of the confidence of both investors and regulators in the Group’s development. The Group will keep communicating with financial institutions and stepping up its efforts to secure financing guarantee from CBIC and bond issue, so as to ease the pressure on cash flows through various channels.
As a result of the continued sluggish contracted sales of commodity house and difficulties in financing in the capital market, the Group suspended land acquisition in 2022 in order to maintain sufficient liquidity. Nevertheless, the Group together with its joint ventures and associates had a land bank with an aggregate planned GFA of approximately 33.87 million sq.m as of 31st December 2022, which is expected to be available for the Group’s development in the next two to three years.
Going forward, as the central government optimizes and adjusts real estate policies, the industry is poised to adopt a new development model. The Group will be committed to raising the operational safety margin, building a commercial business driven by cash flow and operational quality in order to maintain a solid financial foundation. At the same time, the Group will develop its asset management model, lower its reliance on financing, increase synergy with the property industry, as well as strengthen the symbiotic operational model with Funworld.
Mr. Wong Chiu Yeung, Chairman and CEO of China SCE Group, said, “Looking ahead, the Group will continue to adhere to the ‘Dual Track’ synergistic development strategy and strengthen the synergy between shopping malls and rental apartments with residential development, concentrating on core cities and dominant regions. We will focus on our market, our clients and our products. The Group will also take heed of clients’ needs and attach greater importance to product research and development with the aim of further expanding its differentiated competitiveness to create greater value.”
The issuer is solely responsible for the content of this announcement.