Greenland Hong Kong’s Core Business Continues Performing Well in 2020, Leads High-quality Development with ‘Two Wings in One’ Strategy

HONG KONG, Mar 26, 2021 – (ACN Newswire via – Greenland Hong Kong Holdings Limited (“Greenland Hong Kong”, HKG: 00337) held an online 2020 annual results conference in Shanghai, Mr. Chen Jun (Chairman and Chief Executive Officer of Greenland Hong Kong), Mr. Chen Zeng Li (Vice President) and Mr. Lei Yu (Secretary of the Board) attending the press conference.

Business Highlights (as of 31 December, 2020):

— Revenue was approximately RMB33.73 billion
— Total Assets was approximately RMB164.99 billion
— Net Profit were approximately RMB3,459 million
— Profit for the year attribute to the owners of the Company was approximately RMB2,608 million
— Gross Profit was approximately RMB8,249 million. Gross Profit Margin reached 24.5%.
— Earnings per share amounted to RMB0.94 per share
— Contracted Sales reached approximately RMB54.53 billion, increase 13% year-on-year
— The Board of Directors have recommended the payment of a final dividend of HK$[-] per Ordinary Share for the year ended 31 December 2020
— As at the date of the annual results announcement, Greenland Hong Kong has added approximately 12.15 million square meters of gross floor area (GFA) that costed 149.6 billion from 54 new parcels of land in 20 cities

Mr. Chen Jun, the Chairman and Chief Executive Officer of Greenland Hong Kong said, “2020 was an extraordinary year. Under the novel coronavirus (COVID-19) pandemic, Greenland Hong Kong still made efforts, worked hard, took initiatives, and adopted effective measures and strategies in this hard time, and achieved a remarkable performance by improving our core business and product quality.”

The improvement of core business and the integration of financial structure

The Group’s total contracted sales amounted approximately RMB54,535 million, representing a year-on-year increase of 13%. The revenue was RMB33.73 billion, total assets amounted RMB164.99 billion and the total profit reached RMB3,459 million. Gross profit was RMB8,249 million and the gross profit margin achieved 24.5%, earnings per share amounted to RMB0.94. While maintaining a high level of profitability, the Company’s financial structure has been continuously optimized. The net interest-bearing debt ratio of the Company accounted 49% and the current interest-bearing debt was RMB24.689 billion. The weighted average financing cost drop to 5.5% that maintaining at a low level in the industry. Meanwhile, the Company continued to strengthen the cash flow control. While ensuring a high de-conversion rate of project, it also focused on the sales collection that the total sales collection rate of the whole year exceeded [90%]. Up to now, the Company’s book cash stock is RMB13.853 billion, and the cash to debt ratio is 1.3 times, which fully covers the short-term interest-bearing liabilities. It shows the Company’s strong operation ability and risk resistance ability, and provides strong guarantee for the further development of the Company.

The continuous of increasing reserve and the strategic layout of “two wings in one” has deepen the Company development

As of the performance announcement date, Greenland Hong Kong has added 54 new projects, 12.15 million cubic meters of land reserves and nearly RMB150 billion of new goods value through various ways such as “group capital injection, strategic land acquisition, cooperative merger and open market”, further consolidating the Company’s sustainable development momentum. Through the capital injection of Greenland Group, the major shareholder, Greenland Hong Kong obtained 35 projects in the Guangdong-Hong Kong-Macao Greater Bay Area at one time, increasing the construction area by 8.33 million cubic meters. These projects are concentrated in the core cities with large population introduction, high industrial concentration, rapid economic development and competitive advantages. This capital injection has realized the rapid and deep layout of the Guangdong-Hong Kong-Macao Greater Bay Area, formed the strategic pattern of “two wings in one” of the Yangtze Delta and Greater Bay Area, and laid a solid foundation for a new round of development in the future.

Improving quality and efficiency under the lean management. Providing innovative products that is recognized by the market

Comprehensively optimize the large operation system and comprehensively improve the fine management. Greenland Hong Kong has over 5 million square meters of new construction area, nearly 4 million square meters of new supply area, over 4 million square meters of newly completed equipment, and about 4.5 million square meters of completed delivery. At the same time, around the original intention of creating a better lifestyle for customers, we revere every inch of land, adhere to the product concept of “going home is the beginning of vacation”, and constantly update the products, so as to build every project into an IP work with green Hong Kong attribute. The annual one-time delivery rate of projects reached 92%, and 75 awards were won, including 20 international awards, 53 national awards and 2 provincial and municipal awards, which were deeply recognized by the market. In the future, Greenland Hong Kong will stick to its ingenuity and set up the competitiveness of the enterprise with the quality benchmark.

In-depth layout “Real Estate +” strategy, continuous expansion and improvement of the industrial layout

Recently, the Company has established an industrial development group, which focusing on the four major business sectors of industrial parks, comprehensive healthcare, long-term rental apartments, and asset management, while strategically coordinate resources, empower energy and improve efficiency, and continuously improve industrial operation capabilities. Last year, the occupancy rate of Morange Fox Mansion exceeded 100%, and the next step will be replicated in Haikou and Wuxi; the occupancy rate of long-term rental apartments is over 90%; together with Huimei Capital which focuses on medical and health care, under Hillhouse Capital’s to create a “base + fund + operation” health industrial park Model; Signed a strategic contract with German Medical Valley to import the world’s top health technology resources. The Shanghai International Education Park was opened as a whole, and Shanghai Jiaotong University and Gaoteng Innovation School moved in and started school. Greenland Hong Kong has accumulated unique understanding and practice in the rent, occupancy rate, cooperative brand of the park, or the introduction of avant-garde technology, the innovation of smart equipment or service operation mode. Through a series of successful industrial operations, the value of assets has been further enhanced, and a new level of growth has also been created for the development of the enterprise!

Reform and innovation of mechanism and system, continue to stimulate team vitality

In 2020, Greenland Hong Kong boldly promoted system and mechanism innovation, broke the original incentive model and project management method, and comprehensively implements innovative mechanisms such as “project follow-up investment”, “management cost contract”, “marketing cost contract”, etc., so that all employees can form a community which sharing risks and benefits, fully stimulating the vitality of the team, effectively improving the prudence and accuracy of project decision-making and thence to further reducing costs and increasing efficiency, and leaving room for improving corporate operating efficiency.

At the same time, the digital transformation has achieved initial success. Greenland Hong Kong actively embraced digital technology, took the data-centered thinking as its creed, and relied on digital technology to continually provide Greenland Hong Kong full-life-cycle project online digital management support, that to achieve four aspects of Company management, including control, cost reduction, efficiency increase and empowerment, in order to empower the enterprise.

Bravely assume the mission of social responsibility and actively contribute to charity

While focusing on the healthy development of the Company, Greenland Hong Kong also actively pays attention to charity and public welfare undertakings and fulfills its corporate social responsibility and mission. During the COVID-19 pandemic, 2846 Company’s caring employees voluntarily organized and donated nearly RMB800,000 in one day, sourcing anti-epidemic materials around the world to help the frontline; fighting the “epidemic” to help farmers, poverty alleviation by industry, overcoming difficulties with farmers; the “Red Coat Village Children’s Charity Project” passed the love of owners, customers, employees and their families to left-behind children in poor mountainous areas. There were 35 rural primary schools in 9 provinces, and more than 5,000 poor students benefited. Greenland Hong Kong practicing the corporate mission of “ideal, warm, and sentimental” with practical actions.

Looking forward to the future, Mr. Chen Jun said, “2021 will be the eighth year of the establishment of Greenland Hong Kong and the beginning of the ’14th Five-Year Plan’. In the past eight years, Greenland Hong Kong has carried out a better life with diversified businesses, strategically located in the Yangtze River Delta, Guangdong-Hong Kong-Macao Greater Bay Area and other domestic key areas, adhered to the ‘real estate +’ development strategy, continued to develop with high quality, and reached a new level of comprehensive strength. In the face of the new economic situation and industry structure, Greenland Hong Kong will face up to challenges, actively adapt to the new situation and new changes, run with energy, and will never slacken its efforts to promote the high-quality and rapid development of Greenland Hong Kong.”

About Greenland Hong Kong Holdings Limited

Greenland Hong Kong Holdings Limited (337.HK) is a subsidiary of Greenland Holdings, one of the top 500 companies in the world. Ever since its establishment 27 years ago, Greenland Holdings has created a diversified development pattern of “focusing on the development of real estate market and placing equal stress on Big Infrastructure, Big Finance, Big Consumption, medical and healthcare and scientific innovation” with a global presence. By adhering to the development strategies of capitalization, popularization and internationalization, Greenland Holdings has secured its market presence in more than 100 cities of domestic and overseas countries such as China, the United States, Britain, Germany, Australia, Canada, South Korea, Thailand and Malaysia. Leveraging Greenland Holdings’ mature brand image, rich resources, large scale and system, advanced management and passionate corporate culture, Greenland Hong Kong will comprehensively consolidate the existing assets and fully utilize the advantages of the capital platform in Hong Kong to establish itself as a benchmark in the Hong Kong capital market for mainland China real estate players.

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