CIFI Group Announces 2021 Interim Results

Revenue grew by 58.0% year on year to RMB36.4 billion and

Interim dividend amounted to HK12 cents per share

Rental income grew significantly by 79% year on year to RMB391 million

Contracted sales increased by 53% year on year to RMB157.03 billion for the first seven months, representing 59% of full year target

Net debt-to-equity ratio and weighted average cost of indebtedness improved to 60.4% and 5.1% respectively

Results Highlights:

Revenue and net profit increased continuously and declared dividend for seven consecutive years since IPO

• Recognised revenue increased by 58.0% year on year to RMB36.4 billion. Rental income grew significantly by 79.0% year on year to RMB391 million.
• Core net profit to equity owners of the Company increased by 4.8% year on year to RMB3.35 billion.
• Gross profit margin and core net profit margin stood at 20.7% and 9.2% respectively.
• Core return on average equity was 22.3%, maintaining the industry’s leading level.
• Proposed interim dividend of RMB10.0 cents or equivalent to HK12 cents per share (2020 Interim results: RMB9.8 cents or equivalent to HK11 cents per share). Achieved sustainable earnings growth since IPO, with accumulated dividends of HK$1.96 per share.

Ensuring the achievement of annual sales targets with abundant quality land bank

• Proactive implementation and deepening of diversified channels to acquire lands, deep cultivation in advantageous regions and expansion in potential cities.
• For the first seven months of 2021, the Group achieved contracted sales of RMB157.03 billion, increased by 53% year on year, representing 59% of its 2021 full year contracted sales target of RMB265 billion. The contracted average selling price was approximately RMB17,800 per sq.m. ^{(excluding car parks and storage spaces)}.
• Achieved a cash collection ratio of over 90% from contracted sales, maintaining the industry’s leading level.
• Since the beginning of 2021, the Group has strategically entered 8 new cities, including Yancheng, Luan, Xuancheng, Liaocheng, Dezhou, Rizhao, Putian and Zhuzhou.
• Its high-quality land bank has covered 85 cities in different geographical regions, over 90% of which was located at first-, second- and prosperous third-tier cities with sustained economic recovery. The Group expects the saleable resources in the second half of the year to be approximately RMB260 billion. Management is confident of completing its 2021 contracted sales target.

Continued to optimize a healthy debt structure and debt maturity

• Carried out the major financing transactions, optimized the debt maturity structure and reduced financing costs through increasing the issuance of green US Dollar Bonds, which was expected to be sufficient to meet our needs of refinancing.
• Abundant cash on hand, reaching RMB52.41 billion.
• Net debt-to-equity ratio and weighted average cost of indebtedness improved to 60.4% and 5.1% respectively, comparing with those as at the end of 2020.

Diversified real estate plus business layout with continuous implementation to drive growth

• By the end of July, CIFI Commercial has entered 16 cities, and opened 9 shopping malls, with a total GFA of 630,000 sq.m., and over 30 commercial complexes reserved in total laid a solid foundation for achieving rapid rental income growth in the next three years.
• As of August, LingYu International, a long-term leasing apartment business company, has entered more than 10 cities, focusing on 6 core cities, with nearly 80,000 rooms. It was ranked TOP3 in the development category of long-term leasing brands.
• Recently, CIFI has signed benchmarking projects under entrusted development, including the headquarters of the world’s top 500 companies and commercial complexes, as well as residential projects.
• Successfully obtained the Wuzhou Hospital project in Chaoyang District, Beijing, which will converge Beijing’s outstanding medical rehabilitation resources to create the features of intensive rehabilitation. Accordingly, a duel project layout of “medical care + elderly care” has been completed in Beijing.

Recognized by international and onshore credit rating agencies

• Standard & Poor, Fitch and Moody’s maintained the Company’s credit ratings at “BB” (with “Stable” outlook), “BB” (with “Stable” outlook) and “Ba2” (with “Stable” outlook) respectively. Lianhe Global maintained the Company’s credit rating at “BBB-” (with “Stable” outlook).
• China Chengxin Credit Rating, United Ratings and China Lianhe Credit Rating, each assigned “AAA” onshore credit ratings to the Company and CIFI PRC.

Fulfilled high standards of ESG management and become a model of ESG enterprise

• CIFI issued the first green finance report, proactively disclosing the use and allocation of proceeds from the green bonds and the environmental benefits generated, and obtaining independent third-party’s assurance, which set another benchmark among industrial peers.
• In August, Hang Seng Indexes announced that CIFI would be included to Hang Seng ESG 50 Index for the first time.
• Issued its first syndicated green loan of nearly HK$2.8 billion.
• In May 2021, the Company issued two batches of green US dollar senior notes with an aggregate amount of US$500 million. The 5.25-year maturity green senior notes bore an interest rate of 4.45% per annum with an amount of US$350 million; while the 7-year maturity green senior notes bore an interest rate of 4.8% per annum with an amount of US$150 million, representing the longest maturity among offshore bonds issued by CIFI.
• Donated RMB100 million to Xiamen University to establish the “CIFI Education Development Fund” to support university education.
• After a devastating rainstorm disaster hit in Zhengzhou City, Henan Province, CIFI Charity Foundation announced a donation of RMB10 million to urgently assist the local flood prevention and disaster relief work and actively participate in post-disaster reconstruction.

Received various domestic and international awards and recognitions; CIFI’s market position in the industry has been further enhanced

• CIFI was ranked at 766th in the “Forbes Global 2000 List”, 142 places higher than last year. In the list, a total of 395 companies come from Mainland China, Hong Kong, Macao and Taiwan.
• CIFI was listed in the top 13 of “Comprehensive Competitiveness List of 2021 Listed Real Estate Enterprises in China”, 2 places higher than last year.
• CIFI was ranked 38th in the “2021 Forbes China Philanthropy List”, and the rankings had improved for three consecutive years.
• CIFI has won multiple awards in the “2021 All-Asia Executive Team” of real estate industry comprehensive ranking held by the international financial magazine Institutional Investor for the fifth consecutive year, and also won the third position of “Honored Companies in Asia”.

Financial Summary:

	For the six months ended 30 June
	2021	2020	YoY Growth
Contracted sales
Contracted sales (RMB’ million)	136,150	80,730	+68.6%
Contracted GFA (sq.m.)	7,973,300	4,895,900	+62.9%
Contracted ASP (RMB/sq.m.)	17,100	16,500	+3.6%
Key financial performance (RMB’ million)
Recognized revenue	36,373	23,022	+58.0%
Gross profit	7,525	5,901	+27.5%
Profit for the period attributable to equity owners	3,603	3,369	+6.9%
Core net profit attributable to equity owners	3,346	3,194	+4.8%
Core basic earnings per share, RMB cents	41	41
	As at 30 June 2021	As at 31 Dec 2020
Key balance sheet data (RMB’ million)
Total assets	439,991	379,299	+16.0%
Bank balances and cash	52,406	51,155	+2.4%
Total indebtedness	110,747	104,715	+5.8%
Total equity	96,528	83,642	+15.4%
Equity attributable to equity owners	37,369	36,052	+3.7%
Net debt-to-equity ratio	60.4%	64.0%	-3.6 p.p.
Weighted average cost of indebtedness	5.1%	5.4%	-0.3 p.p.
Land bank (GFA, million sq.m.)
– Total	58.4	56.5	+3.4%
– Attributable	32.3	30.8	+4.9%

HONG KONG SAR – Media OutReach – 26 August 2021 – CIFI Holdings (Group) Co. Ltd (“CIFI” or the “Group”, HKEX stock code: 884), a leading real estate developer engaged in property development and investment business mainly in the first-, second- and quality-third-tier cities in China, is pleased to announce its interim results for the six months ended 30 June 2021.

Looking forward to the second half of 2021, with the solid progress in the national systematic pandemic prevention and control and the development of economy and society, the resilience of economic development will continuously be shown. However, the global pandemic deteriorated due to new varieties of COVID-19, and the overall environment at home and abroad is still complex and severe. It is expected that the central government will adhere to prudent real estate financial management policies in order to prevent financial risks. Furthermore, regulatory measures system at the supply end will be continuously improved and deepened, and irregular flow of funds into the real estate market will be strictly monitored to ensure the realization of the goal of stabilizing land prices, housing prices and the expectations.

For the seven months ended 31 July 2021, the Group already achieved contracted sales of RMB157.03 billion, representing 59% of its 2021 full year contracted sales target. Thanks to the Group’s proactive implementation and deepening of diversified channels to acquire lands, deep cultivation in advantageous regions and expansion in potential cities, its high-quality land bank has covered 85 cities in different geographical regions, over 90% of which was located at first-, second- and prosperous third-tier cities with sustained economic recovery. The Group expects the saleable resources in the second half of the year to be approximately RMB260 billion, and its management is confident of completing its 2021 contracted sales target.

Mr. Lin Zhong, Chairman and Executive Director of the Group said, “2021 is the closing year of the Group’s “Second Five-Year Plan”. Through the unremitting efforts of all employees, the Group continued to pursue steady and high-quality development, and achieved balance among scale expansion, profitability, and financial safety, and consolidated CIFI’s leading position as a top developer in China’s real estate industry. Looking forward, CIFI is still firmly optimistic about its principal business of property development, and is committed to incubating property related businesses to help development and to complement each other. Meanwhile, the management is also optimistic about the development of self-owned rental generating properties. The management will continue to explore the transformation from solely residential development to development + investment properties, and adheres to the commercial development route of “pursuing high quality in first- and second-tier cities and pursuing scale in third-tier cities”. The Group also puts great significance on promoting its management standard on environmental protection, social responsibility, and corporate governance. From the level of the Group’s strategic planning, we pledge full commitment to forge CIFI as one of the Fortune Global 500 enterprises with outstanding results, persistent performance of social responsibility and excellent corporate governance.”

About CIFI (Group)

Headquartered in Shanghai, CIFI is one of China’s top real estate developers. CIFI principally focuses on developing high-quality properties in first-, second-, and quality-third-tier cities in China. CIFI develops various types of properties, including residential, office and commercial complexes.

To learn more about the Company, please visit CIFI’s website at: http://www.cifi.com.cn

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