Country Garden Announces 2020 Interim Results

FOSHAN, China, Aug. 27, 2020 /PRNewswire/ -- On August 25, Country Garden (02007.HK) announced its interim results for the six months ended 30 June 2020.

Steady performance bolstered by consecutive monthly sales growth

During the first half (1H) of 2020, Country Garden achieved contracted sales attributable to shareholders of approximately RMB266.95 billion (approx. US$38.68 billion ^[1]), representing a gross floor area (GFA) of about 31.85 million square meters. According to the 1H sales ranking released by property research consultancy CRIC, Country Garden continued to hold the top position among major Chinese property developers with contracted sales of RMB372.31 billion (US$53.95 billion)

The Company's contracted sales attributable to shareholders had increased year-on-year for five consecutive months since March. In July, the figure stood at RMB54.28 billion (US$7.87 billion), up 27.52% from a year earlier.

During the reporting period, Country Garden recorded total revenue of RMB184.96 billion (US$26.80 billion), gross profit of approximately RMB44.89 billion (approx. US$6.50 billion), net profit of approximately RMB21.93 billion (approx. US$3.18 billion) and core net profit attributable to shareholders of approximately RMB14.61 billion (approx. US$2.12 billion), which stands out among key players of the industry.

Sufficient cash reserves and working capital

Country Garden has continued to strengthen the assessment of its cash collection targets while further standardizing cash collection management procedures. During the first half of 2020, cash collected from attributable contracted sales was approximately RMB250.93 billion (approx. US$36.36 billion), while the cash collection ratio reached 94%. This ratio has remained above 90% for five consecutive years.

The Company has sufficient cash reserves and working capital. As of June 30, 2020, available cash totaled RMB205.52 billion (US$29.78 billion), while unused credit lines from banks reached RMB328.81 billion (US$47.64 billion).

Continued reduction in total debt in tandem with a stable financial outlook

Total debt and financing costs continued to fall. As of June 30, 2020, the Company's total debt including interest decreased to RMB342.04 billion (US$49.56billion), down 7.5% compared to the end of 2019. Weighted average borrowing cost shrank to 5.85%, down 49 basic points compared to the end of 2019, reflecting investors' confidence in the credit standing and solvency of the Company.

During the reporting period, Country Garden has continued to enhance efficiency and cut costs. The company's marketing and administrative expenses decreased by 27.9% over the prior-year period.

The board of directors declared an interim dividend of RMB20.55 cents per share. Total interim dividends accounted for 31% of the core net profit. The Company had been paying attractive dividends for many years to reward its shareholders.

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