20210330 2020AR PPT EN v14 (with scripts)
38
2020 Annual Results Briefing 31 March 2021
Transcript of 20210330 2020AR PPT EN v14 (with scripts)
2020 Annual Results Briefing31 March 2021
Contents1.Highlights
2.Business Operation
3.Financial Performance
4.Future Development
Appendix
1
By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations:The information in this presentation has been prepared by representatives of Sinic Holdings (Group) Company Limited (the "Company", and together with itssubsidiaries, the "Group") for use in presentations by the Group at investor meetings for information purposes. No part of this presentation should form thebasis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever.No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness ofthe information, or opinions contained herein. Neither the Company nor any of its directors, supervisors, officers, partners, employees, affiliates, agents,advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use ofthis presentation or its contents or otherwise arising in connection with this presentation. The information set out herein may be subject to updating,completion, revision, verification and amendment and such information may change materially.This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequentdevelopments may affect the information contained in this presentation, which neither the Company nor any of its directors, supervisors, officers, partners,employees, affiliates, agents, advisors or representatives is under an obligation to update, revise or affirm.The information communicated in this presentation contains certain statements that are or may be forward-looking. These statements typically contain wordssuch as "will", "may", "expects", "forecasts", "plans" and "anticipates" and words of similar import. By their nature forward-looking statements involve riskand uncertainty because they relate to events and depend on circumstances that will occur in the future. There may be additional material risks that arecurrently not considered to be material or of which the Company and its advisors or representatives are unaware. Against the background of these uncertainties,readers should not rely on these forward-looking statements. The Company assumes no responsibility to update forward-looking statements or to adapt them tofuture events or developments.This presentation and the information contained herein does not constitute or form part of any offer for sale or subscription of or solicitation or invitation ofany offer to buy or subscribe for any securities of the Company or any of its subsidiaries or affiliates in any jurisdiction. This presentation and the informationcontained herein is highly confidential and being furnished to you solely for your information and may not be reproduced or redistributed in any manner to anyother person, in whole or in part. In particular, neither the information contained in this presentation nor any copy hereof may be, directly or indirectly, takenor transmitted into or distributed in the United States, Canada, Australia, Japan, Hong Kong or any other jurisdiction which prohibits the same except incompliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of U.S. or other national securities laws. Nomoney, securities or other consideration is being solicited, and, if sent in response to this presentation or the information contained herein, will be accepted.By attending this presentation, you acknowledge that you will be solely responsible for your own assessment of the market and the market position of theGroup and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business ofthe Group. Any decision to purchase securities in the context of a proposed offering of securities, if any, should be made solely on the basis of informationcontained in an offering circular or prospectus prepared in relation to such offering.By reviewing this presentation, you are deemed to have represented and agreed that you and any customers you represent are outside the United States. Youare also deemed to have represented and agreed that you and any customers you represent are professional investors as defined in the Securities and FuturesOrdinance (Chapter 571 of the Laws of Hong Kong) and any rules made thereunder.
Disclaimer
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1.Highlights
WuxiFeicuiwan3
2020 Annual Results Highlights
Revenue 28.1 billion
Net gearing Ratio 63.3%
Total facilities 90.7 billion
Dividend payout ratio 26.8%
Robust Financial Policy
Robust Financial Position
• The net gearing ratio decreased to 63.6%,maintaining the level within 80%
• The cash-to-short-term debt ratio was 1.2x
• The weighted average cost of indebtedness was 9.1%, decreased by 0.1 ppt YoY
Diversified financing channels
• H-to-H strategic cooperation established with banks; the total credit facilities obtained from financial institutions was RMB90.7 billion, increase 22.7% YoY.
• Existing onshore RMB corporate bonds of RMB 750 million and offshore corporate bonds of USD 740 million
• Existing ABS of RMB1,180 million
Strong growth in revenue and net profit
• Recognised revenue approximately RMB28.07 billion, up 4.0% YoY
• The core profit attributable to owners of the parent(1) was approximately RMB1.87 billion, up 0.8 % YoY
Clear dividend policy
• Annual dividend per share RMB14 cents per share
• Dividend payout ratio is 26.8% of core attributable to owners of the parent
(1) Core profit attributable to the owners represents profit attributable to the owners less the changes in fair value of investment properties (net of tax) and changes in fair value of financial assets/liabilities (net of tax).
(2) The calculation of net gearing ratio is based on total indebtedness less cash and bank balances divided by total equity at the end of the year and multiplied by 100%. 4
SINIC 5S
• SINIC 5S landed and products fully upgraded
• Won 52 product awards, including 27 awards in the 15th Kinpan Awards
• The Group’s customers satisfaction rate is 89.9%; ranking 8 out of 110 real estate companies by FG
• Sustainable development: established governance mechanisms and procedures for the issuance of green, socially responsible, sustainable development bonds, loans and other debt instruments
Adherence to qualityand provision ofcomplete services
Total land reserve
15.21 million sq.m
• As of December 31, 2020, the Company has 150 projects
• Total attributable land reserve is about 15.21 million square meters, first-tier and second-tier cities account for about 85.6%
• 35 new projects in 2020, with attributable planned area of 3.47 million square meters, a total attributable investment of approximately RMB15.7 billion, and an average land price of approximately RMB4,527 per square meter
• 60% of the value is in the Yangtze River Delta and the Greater Bay Area
Rigorous land acquisition strategy
• The efficiency, cost control, and operational capabilities have been further developed
• A total of three digital platforms have been built, which were digital operation platform, core data platform and Internet + procurement platform.
Delicacy operationmanagement
Total contracted sales113.74 billion
• Total contracted sales reached RMB113.74 billion;attributable contracted sales reached RMB50.42 billion, up 11.8% YoY
• Attributable contracted average selling price was RMB15,006 per sqm, up 14.7% YoY
Maintain high-qualitygrowth
2020 Operation Highlights
Three major digital platforms
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2.Business Operation
NanchangHeyuebingjiang 6
Jiangxi Province
31%
Greater Bay Area24%
Yangtze River Delta Region
28%
Central & Western China and Others
17%
Contracted sales maintained significant growth with a more balanced structure
RegionAttributable Sales（RMB Million）
Percentation of total
attributable sales
Attributatble GFA（m2）
Attributable ASP (RMB/m2)
Jiangxi Province 15,551 31% 1,128,690 13,778 Greater Bay Area 12,041 24% 854,583 14,090 Yangtze River Delta region 14,443 28% 798,848 18,080 Central & Western China and others 8,385 17% 577,982 14,508 Total 50,420 100.0% 3,360,103 15,006
In 2020, the total contracted sales and the attributable contracted sales reached RMB113.7 billion and RMB50.4 billion respectively, representing a YoYincrease of 24.4% and 11.8% respectively, in which the Greater Bay area and Yangtze River Delta region accounted for 52%, Tier-1 and Tier-2 cities’ salesrepresented 90%.The attributable sales area was 3,360,103 sq.m., and the attributable contracted average selling price was RMB15,006 per sq.m.,representing a YoY increase of 14.7%. Attributable sales breakdown by regions
Attributable sales by city tier
（1）
(1) New Tier-1 cities include Chengdu, Chongqing, Nanjing, Suzhou, Hangzhou, Wuhan, Qingdao, Hefei
Jiangxi Province
54%Greater Bay
Area24%
Yangtze River Delta region
11%
Central & Western China and others
11%
45.1billion
50.4 billion
2019 2020
Tier-264%
Tier-3 and others10%
New Tier-1 cities18%
Tier-18%
7
Central and
Western China
Jiangxi Province
The Yangtze
River Delta
region
The Guangdong-Hong Kong-Macao Greater Bay Area
Core cities in Central and Western China and other regions with high growth potential
Number of Projects 28
Attributable GFA (㎡) 2,520,987
Jiangxi Province
Number of Projects 61
Attributable GFA (㎡) 4,672,898
(The number of projects in Nanchang City accounted for 23.5%
of the total number of projects in Jiangxi Province)
The Yangtze River Delta region
Number ofProjects
35
Attributable GFA (㎡)
3,060,163
The Guangdong-Hong Kong-Macao Greater Bay Area
Number of Projects 26
Attributable GFA (㎡) 4,959,353
Diversified Geographic Distribution and High-quality Land Bank
Jiangxi Province
31%
Greater Bay Area33%
Yangtze River Delta region20%
Central & Western China
and others16%
By attributable area
Attributable area by city tierTier-1
3% Tier-3 and others14%
Tier-268%
New Tier-1 cities15%
（1）
New Tier-1 cities include Chengdu, Chongqing, Nanjing, Suzhou, Hangzhou, Wuhan, Qingdao, Hefei
• As of 31 December 2020, 150 projects were distributed in 4 regions• The attributable land reserve area was 15.21 million sq.m., sufficient for almost
3 years’ development• Tier-1 and Tier-2 cities accounted for 85.6% of the total attributable area• Attributable saleable resources reaches 260 billion
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Regions Projects GFA(Thousand m2)
Attributable GFA(Thousand m2)
Attributable land cost (RMB’0,000)
Land cost/(RMB/m2)
Estimated average saleable price
(RMB)
Jiangxi Province 14 2,928 1,486 565,945 3,810 11,892
Greater Bay Area 3 1,235 1,086 311,051 2,858 13,754Central and Western China and other regions
3 375 257 109,705 4,262 12,230
The Yangtze River Delta region 15 1,219 646 586,957 9,090 20,177
Total 35 5,756 3,474 1,573,658 4,527 14,039
Newly Acquired Land Bank Diversified the City Layout
•35New projects
•RMB 1.57 billionAttributable Investment
•3.47 million m2Attributable GFA
•RMB 4,527 /m2Average Land Cost
（1）
(1) New Tier-1 cities include Chengdu, Chongqing, Nanjing, Suzhou, Hangzhou, Wuhan, Qingdao, Hefei
Greater Bay area31%
Central & Western
China and others
7%
Jiangxi Province
43%
Yangtze River Delta
region19% Tier-3 and
others22%
Tier-272%
New-Tier 1 Cities6%
• A total of 35 new projects in 2020, with a total planned GFA of 5.76 million sq.m. and attributable ratio of 60%, among which tier-1 andtier-2 cities represented 78%. Equity investment accounted for about 40% of the sales return in 2020.
• Increased saleable resources of RMB47.4 billion New land reserve area by region New land reserve area by city tier
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Persevere in Quality and All-around Services
(1) Third-party project quality assessment agencies: Shanghai Zhenchen, Shanghai Pingda, Yangzhou Chenli
• Won 60+ brand and product awards: 2020 is the year for the launch of SINIC4.0 products. At the same time.we launched the ‘‘Sinic’s 5SHealthy Residential District’’, a new healthy residential system driven by five standards, which will give owners and customers a new livingexperience through fresh craftsmanship, experience, guarantee, services, namely over 800 items of 5S residential district standards in fivecategories.
• Project quality evaluation score(1) 83.4, representing an increase of 2.2 points year-on-year
The 2nd (2020) LAIAWARD Real Estate Landscape Award Gardener's CupWuxi Sinic ·Emerald Bay (Excellence Award)
2020 World Habitat Architecture Planning and Design AwardHefei·Sinic·Hongyang·Huyu Time-Double Gold Award for Architecture and LandscapeChengdu·Sinic·Xiyue——Double Gold Award for Architecture and LandscapeNanchang Sinic East Park-Comprehensive Gold AwardNanchang·Hongdaxinli·Heyue Riverside-Comprehensive Gold AwardPingtan·Sinic·Dingxin·Golden Bay-Comprehensive Gold AwardChengdu·Sinic·Dongyuan-Comprehensive Gold AwardWuxi·Sinic·Emerald Bay-Comprehensive Gold AwardHefei·Sinic·East Park-Double Gold Award for Architecture and Interior
2019-2020 Meishang Award FinalistsHefei Sinic·Hongyang Shiguang——Extreme Architectural Aesthetics (Excellence Award)Pingtan Sinic·Dingxin Golden Bay——Extreme Architectural Aesthetics (Excellence Award)Nanchang Sinic·Jiang Yue-Landscape Design Special (Excellence Award)
2019-2020 6th CREADAWARD Real Estate Design AwardPingtan·Sinic·Dingxin·Golden Bay-Residential Project, Interior Design (Excellence Award)Pingtan·Sinic·Dingxin·Yuehai Bay-Landscape Design (Excellence Award)Nanchang·Sinic·Shuitou Jinyao Mansion-Landscape Design (Excellence Award)Nanchang·Sinic·Jiang Yue-Landscape Design (Excellence Award)
Other Excellent Design AwardsPingtan·Sinic·Dingxin Golden Bay Sales Office——APDC Design Award|Interior Space Excellence AwardChengdu·Sinic·Dongyuan-2020 Kerui Top 30 Cost-Effective Products EvaluationWuxi·Sinic·Emerald Bay——Top 30 Quality Works Evaluation in 2020Chengdu·Sinic·East Park——Chengdu Housing and Real Estate Association Product Innovation Benchmark Project
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Customer Satisfaction Ranking among Top Ten in the Industry
(1) According to the 2020 survey results of the third-party research organization Saiwei Consulting
Overall customer satisfaction has remained stably high: has maintained basically the same in 2019 and 2020The industry ranking has remained at the forefront: has stayed top 10 in the industry for the three years from 2018 to 2020, reaching top 10% in the industryGetting close to the benchmarks: Since 2018, the gap has been reduced to less than 5 percentage points
82 86 90 90
89 90 92 93
85 86 89 89
2017 2018 2019 2020
Sinic
Benchmark
Industry
top 10%
Changes in industry ranking 13/69 9/80 6/93 8/110
-7 -4 -2 -3Gap with
benchmark
As of 2020, Sinic has conducted customer satisfaction surveys for 6 consecutive years, enabling customers to evaluate every key service touchpoint
In 2020, Sinic Holdings’ customer satisfaction score was 89.9points, and customer satisfaction continued to rise for 5 consecutive years. In 2020, Sinic's overall satisfaction ranks 8thamong the 110 companies in Saiwei industry database, and it has maintained a continuously excellent customer reputation in the industry.
• Property service satisfaction is 94.8, ranking 1st among 112
real estate companies in Saiwei database
• Maintenance service satisfaction is 86.1, ranking 5th among
104 real estate companies in Saiwei database
Total tracking74,777
valid customer sample in 2020
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• Included in the Hang Seng Composite Index after only 3 months of listing on February 22, 2020
• Included in the Southbound Trading under Shenzhen Connect on 9 March 2020
• Positive analyst coverage
Well Recognized by the Capital Markets
Investment bank / broker Rating Target price (HK$)
Equity research reports:
CMBI Buy 4.95
CCBI Buy 5.00
BOCI Buy 5.14
Guotai Junan Buy 4.80
Credit research reports and reviews:
BNP Paribas, Bank of China International, CMB International, Guotai Junan, Standard Chartered, Barclays, Citi, Bofa.
Award Date Awards Awarding agency
29 Dec 2020 Titanium AwardSocial Responsibility-Affordable Housing The Asset
29 Dec 20202020 Galaxy International Annual Report Awards: "Annual Report-Graphic/Text-Silver Award" and "Corporate Image-Silver Award"
International Galaxy Annual Report Awards
21 Dec 2020 Top 50 Newly Listed Companies Top 100 Research Centers in Hong Kong Stocks
10 Dec 2020
Best Investor Relations (Med-cap Enterprise)Best Investor Relations-Finance (Including Real Estate)Best Investor Relations-ChinaBest Investor Relations Officer (Mid-cap Enterprise)-Ms. Venus Zhao
IR Magazine
16 Nov 2020 Best Listed Company in Greater China-Best IR Team Award 2020 Gelonghui
24 Sep 2020The 34th International ARC Annual Report Awards:"Property Development: Residential" Category Bronze Award-Chairman/Chairman's Report
International ARC Annual Report Awards
23 Sep 2020
Four awards at the 6th Investor Relations Awards:Best Investor Relations Company (Newly Listed Company)Best Investor ConferenceBest Investor Relations Officer-Ms. Zhao HuiBest Investor Relations Team-Ms. Venus Zhao and Ms. Olivia Zhao
HKIRA
13 Jan 2020 Best Investor Relations Innovation AwardBest Leader Award-Ms. Venus Zhao
The 3rd China Excellent IR Selection
9 Jan 2020 2019 Golden Hong Kong Stocks Most Popular IPO Companies by Investors
Zhitong Finance, Tonghuashun Finance
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ESG – Commitment to Sustainable Development
Insisting on the strategy of deeper cultivation in cities and regions, consistently pursuing quality and services and service productization strategy. And continue to improve and improve the management of environmental, social and corporate governance matters, and promote the company's sustainable development process.
• Fight the COVID-19 together, donated supplies to Wuhan anti-epidemic personnel to meet their daily needs
• Supported disaster relief, carried out material disaster reliefoperations in Poyang, Duchang, and Pengze counties in JiangxiProvince, and promoted post-disaster reconstruction
• Industrial poverty alleviation, such as establishing a white lotusindustry support base to increase local white lotus productionand sales.
• Poverty alleviation through education, improve the learningability of children in poverty-stricken areas; implement thecollege student scholarship program.
• Social poverty alleviation and promotion of housing renovationin old communities
• Continue to improve ESG risk management andinternal control mechanisms
• Maintain communication with stakeholders andpromote materiality assessment
• Regular anti-fraud training is held to strengthen theawareness of legal compliance
• Continue to optimize investor communicationmechanisms and channels
Commitment to sustainable development
Green Finance• Announced the Green, Socially Responsible, Sustainable
Development Finance Framework• Established a sustainable development financing working
group to supervise project selection and ensure strongmonitoring and governance
• Successfully issued 250 million 364-day US dollars bonds,which were subscribed by more than 110 institutional investorsfrom multiple countries and regions, and the senior notes wererated "B+" by the international rating agency Fitch (with a"stable outlook") and rated BB- by Lianhe Ratings Global.
Green Promise• Built green standard chemical sites, standardize
sewage discharge, dust and noise control ofconstruction projects, and promote construction wastereduction and reuse
• Created a central park project in the Shanghai-Jiangsuarea to realize rainwater utilization
• Carried out the Sinic Jinyuan photovoltaic powergeneration project in Qingyunpu District to achieveenergy efficiency improvement and emission reduction
• Cixi Dibo Bay and other projects implementedprefabricated construction to reduce on-site operationsand material waste
Harmonious Society Responsible ManagementGreen, Socially Responsible, Sustainable Development Finance Framework
Sustainalytics Second party opinion
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3.Financial Performance
GuangzhouHaishizhouyue 14
Summary of Income Statement
(RMB million) 2020 2019 Change(%)
Revenue 28,069 26,985 +4.0%
Gross profit 6,860 7,999 -14.2%
Gross profit margin 24.4% 29.6% -5.2 ppt
Net profit 2,038 2,014 +1.2%
Net profit margin 7.3% 7.5% -0.2 ppt
Net profit attributable to owners of theparent 1,960 1,958 +0.1%
Core net profit attributable to owners of the parent(1) 1,868 1,853 +0.8%
EBITDA(2) 7,467 8,296 -10.0%
EBITDA margin(3) 26.6% 30.7% -4.1 ppt
(1) Core net profit attributable to shareholders represents profit attributable to shareholders less changes in fair value of investment properties (net of tax) and changes in fair value of financial assets/liabilities (net of tax)(2) Earnings Before Interest,Taxes,Depreciation and Amortization (EBITDA) represent operating profit less fair value gains and losses of investment properties, fair value gains and losses of financial assets or liabilities at fair value through current gains and losses, and interest income plus depreciation, amortization expenses and borrowing interest(3) EBITDA margin = EBITDA / Total income
15
1,119,603
2,699,724 2,491,283
7,493 9,929
11,004
2018 2019 2020
Area
ASP
Steady Profit and Profit Margin
RMB million
Recognized GFA and ASP
6,857
25,053 25,9981,376
1,592
728
156
161688
8,389
26,806 27,414
2018 2019 2020
Parking
Commericals
Residential
Recognized revenue from sale of propertiesRMBbillion
8,416
26,985
2018 2019 2020
Revenue
28,069
Jiangxi Province, 67.6%
Greater Bay Area, 15.0%
Yangtze River Delta region,
7.9%
Central & Western China and others, 9.5%
Area: m2 / ASP: RMBRecognised revenue from sale of properties (by region)
16
2,867
8,296 7,46734.1%30.7%
26.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
0 18 36 54 72 90 108 126 144 162 180 198 216 234 252 270 288 306 324 342 360 378 396 414 432 450 468 486 504 522 540 558 576 594 612 630 648 666 684 702 720 738 756 774 792 810 828 846 864 882 900 918 936 954 972 990 1,008 1,026 1,044 1,062 1,080 1,098 1,116 1,134 1,152 1,170 1,188 1,206 1,224 1,242 1,260 1,278 1,296 1,314 1,332 1,350 1,368 1,386 1,404 1,422 1,440 1,458 1,476 1,494 1,512 1,530 1,548 1,566 1,584 1,602 1,620 1,638 1,656 1,674 1,692 1,710 1,728 1,746 1,764 1,782 1,800 1,818 1,836 1,854 1,872 1,890 1,908 1,926 1,944 1,962 1,980 1,998 2,016 2,034 2,052 2,070 2,088 2,106 2,124 2,142 2,160 2,178 2,196 2,214 2,232 2,250 2,268 2,286 2,304 2,322 2,340 2,358 2,376 2,394 2,412 2,430 2,448 2,466 2,484 2,502 2,520 2,538 2,556 2,574 2,592 2,610 2,628 2,646 2,664 2,682 2,700 2,718 2,736 2,754 2,772 2,790 2,808 2,826 2,844 2,862 2,880 2,898 2,916 2,934 2,952 2,970 2,988 3,006 3,024 3,042 3,060 3,078 3,096 3,114 3,132 3,150 3,168 3,186 3,204 3,222 3,240 3,258 3,276 3,294 3,312 3,330 3,348 3,366 3,384 3,402 3,420 3,438 3,456 3,474 3,492 3,510 3,528 3,546 3,564 3,582 3,600 3,618 3,636 3,654 3,672 3,690 3,708 3,726 3,744 3,762 3,780 3,798 3,816 3,834 3,852 3,870 3,888 3,906 3,924 3,942 3,960 3,978 3,996 4,014 4,032 4,050 4,068 4,086 4,104 4,122 4,140 4,158 4,176 4,194 4,212 4,230 4,248 4,266 4,284 4,302 4,320 4,338 4,356 4,374 4,392 4,410 4,428 4,446 4,464 4,482 4,500 4,518 4,536 4,554 4,572 4,590 4,608 4,626 4,644 4,662 4,680 4,698 4,716 4,734 4,752 4,770 4,788 4,806 4,824 4,842 4,860 4,878 4,896 4,914 4,932 4,950 4,968 4,986 5,004 5,022 5,040 5,058 5,076 5,094 5,112 5,130 5,148 5,166 5,184 5,202 5,220 5,238 5,256 5,274 5,292 5,310 5,328 5,346 5,364 5,382 5,400 5,418 5,436 5,454 5,472 5,490 5,508 5,526 5,544 5,562 5,580 5,598 5,616 5,634 5,652 5,670 5,688 5,706 5,724 5,742 5,760 5,778 5,796 5,814 5,832 5,850 5,868 5,886 5,904 5,922 5,940 5,958 5,976 5,994 6,012 6,030 6,048 6,066 6,084 6,102 6,120 6,138 6,156 6,174 6,192 6,210 6,228 6,246 6,264 6,282 6,300 6,318 6,336 6,354 6,372 6,390 6,408 6,426 6,444 6,462 6,480 6,498 6,516 6,534 6,552 6,570 6,588 6,606 6,624 6,642 6,660 6,678 6,696 6,714 6,732 6,750 6,768 6,786 6,804 6,822 6,840 6,858 6,876 6,894 6,912 6,930 6,948 6,966 6,984 7,002 7,020 7,038 7,056 7,074 7,092 7,110 7,128 7,146 7,164 7,182 7,200 7,218 7,236 7,254 7,272 7,290 7,308 7,326 7,344 7,362 7,380 7,398 7,416 7,434 7,452 7,470 7,488 7,506 7,524 7,542 7,560 7,578 7,596 7,614 7,632 7,650 7,668 7,686 7,704 7,722 7,740 7,758 7,776 7,794 7,812 7,830 7,848 7,866 7,884 7,902 7,920 7,938 7,956 7,974 7,992 8,010 8,028 8,046 8,064 8,082 8,100 8,118 8,136 8,154 8,172 8,190 8,208 8,226 8,244 8,262 8,280 8,298 8,316 8,334 8,352 8,370 8,388 8,406 8,424 8,442 8,460 8,478 8,496 8,514 8,532 8,550 8,568 8,586 8,604 8,622 8,640 8,658 8,676 8,694 8,712 8,730 8,748 8,766 8,784 8,802 8,820 8,838 8,856 8,874 8,892 8,910 8,928 8,946 8,964 8,982 9,000
2018 2019 2020
EBITDA EBITDA margin
Profitability remains stable
(1) CAGR represents the compound average growth rate of total operating income(2) Earnings Before Interest,Taxes,Depreciation and Amortization (EBITDA) represent operating profit less fair value gains and losses of investment properties, fair value gains and losses of financial assets or liabilities at fair value through current gains and losses, and interest income plus depreciation, amortization expenses and borrowing interest(3) EBITDA margin = EBITDA / Total income
317
1,853 1,868
3.8%
6.9% 6.7%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
2018 2019 2020Core net profit Core net profit margin attributable to owners of the parent
Gross profit and gross profit margin EBITDA(2) and EBITDA margin(3)
RMB millionRMB million
Net profit and net profit marginRMB million
Core net profit and profit margin attributable to ownersof the parentRMB million
17
555
2,014
2,038
6.6%
7.5%7.3%
6.0%6.2%6.4%6.6%6.8%7.0%7.2%7.4%7.6%
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 110 115 120 125 130 135 140 145 150 155 160 165 170 175 180 185 190 195 200 205 210 215 220 225 230 235 240 245 250 255 260 265 270 275 280 285 290 295 300 305 310 315 320 325 330 335 340 345 350 355 360 365 370 375 380 385 390 395 400 405 410 415 420 425 430 435 440 445 450 455 460 465 470 475 480 485 490 495 500 505 510 515 520 525 530 535 540 545 550 555 560 565 570 575 580 585 590 595 600 605 610 615 620 625 630 635 640 645 650 655 660 665 670 675 680 685 690 695 700 705 710 715 720 725 730 735 740 745 750 755 760 765 770 775 780 785 790 795 800 805 810 815 820 825 830 835 840 845 850 855 860 865 870 875 880 885 890 895 900 905 910 915 920 925 930 935 940 945 950 955 960 965 970 975 980 985 990 995 1,000 1,005 1,010 1,015 1,020 1,025 1,030 1,035 1,040 1,045 1,050 1,055 1,060 1,065 1,070 1,075 1,080 1,085 1,090 1,095 1,100 1,105 1,110 1,115 1,120 1,125 1,130 1,135 1,140 1,145 1,150 1,155 1,160 1,165 1,170 1,175 1,180 1,185 1,190 1,195 1,200 1,205 1,210 1,215 1,220 1,225 1,230 1,235 1,240 1,245 1,250 1,255 1,260 1,265 1,270 1,275 1,280 1,285 1,290 1,295 1,300 1,305 1,310 1,315 1,320 1,325 1,330 1,335 1,340 1,345 1,350 1,355 1,360 1,365 1,370 1,375 1,380 1,385 1,390 1,395 1,400 1,405 1,410 1,415 1,420 1,425 1,430 1,435 1,440 1,445 1,450 1,455 1,460 1,465 1,470 1,475 1,480 1,485 1,490 1,495 1,500 1,505 1,510 1,515 1,520 1,525 1,530 1,535 1,540 1,545 1,550 1,555 1,560 1,565 1,570 1,575 1,580 1,585 1,590 1,595 1,600 1,605 1,610 1,615 1,620 1,625 1,630 1,635 1,640 1,645 1,650 1,655 1,660 1,665 1,670 1,675 1,680 1,685 1,690 1,695 1,700 1,705 1,710 1,715 1,720 1,725 1,730 1,735 1,740 1,745 1,750 1,755 1,760 1,765 1,770 1,775 1,780 1,785 1,790 1,795 1,800 1,805 1,810 1,815 1,820 1,825 1,830 1,835 1,840 1,845 1,850 1,855 1,860 1,865 1,870 1,875 1,880 1,885 1,890 1,895 1,900 1,905 1,910 1,915 1,920 1,925 1,930 1,935 1,940 1,945 1,950 1,955 1,960 1,965 1,970 1,975 1,980 1,985 1,990 1,995 2,000 2,005 2,010 2,015 2,020 2,025 2,030 2,035 2,040 2,045 2,050 2,055 2,060 2,065 2,070 2,075 2,080 2,085 2,090 2,095 2,100 2,105 2,110 2,115 2,120 2,125 2,130 2,135 2,140 2,145 2,150 2,155 2,160 2,165 2,170 2,175 2,180 2,185 2,190 2,195 2,200 2,205 2,210 2,215 2,220 2,225 2,230 2,235 2,240 2,245 2,250 2,255 2,260 2,265 2,270 2,275 2,280 2,285 2,290 2,295 2,300 2,305 2,310 2,315 2,320 2,325 2,330 2,335 2,340 2,345 2,350 2,355 2,360 2,365 2,370 2,375 2,380 2,385 2,390 2,395 2,400 2,405 2,410 2,415 2,420 2,425 2,430 2,435 2,440 2,445 2,450 2,455 2,460 2,465 2,470 2,475 2,480 2,485 2,490 2,495 2,500
2018 2019 2020
净利润 净利率
3,143
7,999
6,860
37.3%
29.6%24.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000
2018 2019 2020
毛利润 毛利率
(RMB million) 2020.12.31 2019.12.31 Change
Total assets 96,628 96,224 +0.4%
Cash and bank balances 17,535 16,599 +5.6%
Total debt 29,662 26,573 +11.6%
Net interest-bearing liabilities 12,127 9,974 +21.6%
Total equity 19,064 14,896 +28.0%
Equity attributable to owners of the parent 9,865 8,167 +20.8%
Net gearing ratio (1) 63.6% 67.0% -3.4 ppt
Current ratio (x) 1.2 1.2 -
Summary of Balance Sheet
(1) Net gearing ratio = (total debt - cash and bank balances) / total equity18
EBITDA(1) /Interest on borrowing Cash(2)/Short-term debt
Total Income /Total debt
7.7x
3.2x4.0x
2018.12.31 2019.12.31 2020.12.31
38.1%
101.6%94.6%
2018.12.31 2019.12.31 2020.12.31
2.4x
3.8x3.1x
2018.12.31 2019.12.31 2020.12.31
1.1x
1.4x1.2x
2018.12.31 2019.12.31 2020.12.31
Obviously Improved Financial Ratios
Total debt/EBITDA(1)
(1) Earnings Before Interest,Taxes,Depreciation and Amortization (EBITDA) represent operating profit less fair value gains and losses of investment properties, fair value gains and losses of financial assets or liabilities at fair value through current gains and losses, and interest income plus depreciation, amortization expenses and borrowing interest(2) Including cash and cash equivalents, restricted cash and secured deposits 19
25,694 96.7%
23,862 80.4%
812 3.0%
5,637 19.0% 67
0.3%
163 0.6%
2019.12.31 2020.12.31港币 USD RMB
RMB millionTotal borrowings by currency Secured vs unsecured
67.0%
63.6%
2019.12.31 2020.12.31
(1) Net gearing ratio = (total borrowings - cash and bank balances) / total equity(2) Including channel financing
Continuously Improving Financial Structure
Net gearing ratio
48%
31%
21%
<1y 1-2y 2-5y
Total debt29,662
30% 34%
57% 34%
7% 25%
5% 7%
RMB Corporate Bonds
USD Senior Notes
Trust and Asset Management
Banks(2)
Short-term debt
57% 51%
36% 26%
4% 7%
3% 16%
2019.12.31 2020.12.31
USD Senior Notes
RMB Corporate BondsTrust and Asset ManagementBanks (2)
RMB million 29,66226,573
11,645 14,095
Debt maturityRMB million
24,801 93.3% 23,824
80.3%
1,771 6.7% 5,839
19.7%
2019.12.31 2020.12.31Secured Unsecured
Debt channel structure
20
Diversified Financing Channels
Diversified financial channels
•Newly entered whitelist in 2020: Agricultural Bank of China, Postal Savings Bank of China, Huaxia Bank, Shanghai Pudong Development Bank•As of 31 December 2020, the company’s total credit facilities from financial institutions wereRMB90.7 billion, including 72% of unused and undrawn credit facilities of RMB65.2 billion
•Bond issuance：
•Onshore：RMB751 billion corporate bonds; debt repayment through refinancing
•Offshore：US$990 million senior notes were publicly issued
Issue time Size (100 million) Term (year) Issuance rate Rating agency Rating
results Rating time
RMB2018.10 34 2+1 7.00% Lianhe Credit Rating AA+ 2020.062019.04 417 2+1 7.50% Lianhe Credit Rating AA+ 2020.062020.12 300 3+2 7.00% Lianhe Credit Rating AA+ 2020.12
Post- year end 2021.03 255 2+1 7.00% Lianhe Credit Rating AA+ 2021.03
US$2020.03 280 364 days 11.75% - - -2020.06 210 2 10.50% Fitch B+ 2020.062020.10 250 364 days 9.50% Fitch B+ 2020.10
Post- year end 2021.01 250 364 days 8.50% Fitch/Lianhe Ratings Global B+/BB- 2021.01
Time Size (100 million) Term (year) Issuance rate Rating agency Rating results Rating time
2020.07 4.9 1 6%/7% Lianhe Credit Rating AAA/AA+ 2020.07
2020.10 6.9 2 7%/7.5% Lianhe Credit Rating AAA/AA+ 2020.10
Four credit ratingsWith excellent operation, stable financial position and good credit prospects, the Group was well recognized by four major international rating agencies in 2020
Credit rating：B+（Stable）Granted in June 2020
Credit rating：B（Stable）Granted in June 2020
Credit rating：B2（Stable）Granted in June 2020
Credit rating: AA+（Stable）Granted in June 2020
Credit rating：BB-（Positive）Granted in October 2020
242 255
497652
739907
2019.12.31 2020.12.31
Unused
Used
ABS：1.18 billion ABS with interest rate of 6-7.5%
Diversified financial channels
21
First issued USD senior notesin 364 days with a coupon rateof 11.75%, which wasoversubscribed more than 1billion U.S. dollars, get 4 timesover-subscription
First issued USD 210 million 2-year senior notes with a couponrate of 10.5%, with ordersexceeded US$ 1.5 billion dollarsand received 7 times over-subscription
Second issued USD seniornotes in 364 days with a couponrate of 9.5%, The book’s peakwas over US$1.5 billion,achieving close to 6 timesoversuscription
First issued Green USD bondswith a coupon of 8.50%. Ordersexceeded 2 billion U.S. dollarsand received over-subscriptionof over 8 times.
March 2020 June 2020 October 2020 January 2021
Corporate Bond Coupon Rate 7% - 7.5%
ABS Coupon Rate 6% - 7.5%
Onshore RMB corporate bonds keep in low costs and developed new financing channels ABS
Three red lines- Level Yellow
Financing costs continue to decrease
Continuous optimization of overseas financing costs, widely recognized by offshore investors
11.75%
10.50%
9.50%
8.50%
ü The average financing cost was 9.1%, down 0.1 percentage point
ü Onshore financing costs decreased by 50 basis points YoY to 8.7%
ü The financing cost of new overseas borrowings decreased by 200 basis points YoY to 10.5%
ü Strive to achieve all three indicators green within one yearü Diversified financing channels
42%
58%
ESG investors
Other investors
China
Germany
HK
Israel
Korea
Singapore
Switzerland
Taiwan
UK
ü Lower financing costsü Improve credit conditions
Index Currentlevel
Whether it meetsthe standard
ChangeYoY
Net debt-to-equity ratio 63.6% √ -3.4ppt
Debt-to-asset ratio (excluding presales) 73.2% X -2.8ppt
Debt-to-cash ratio 1.2x √ -
22
4.Future Development
FuzhouSinic-Yuerongshoufu 23
ü Project positioning, product allocation, customer selection with locality as the principle (project centered on the range of 3-5 km)
ü Jumping out of regional positioning, targeting upstream plate, and introducing external customer groups should be fully demonstrated, such as clear spillover effects, outstanding attractiveness of urban planning and cash timetable (such as rail transit, school district value, etc.).
ü Pay attention to the relationship between supply and demand, especially the competition between supply and demand during the listing period
Market safety Strict Standard Control 2:8 Principles Cash Flow Firstü Speed up the landing of standardized products and
configurations, so as to synchronize polishing areasü Standardization of operations, decision nodes of
pre-investment evaluation, cycle, localization and delivery
ü Control of land cost and avoid high premium and high land price；
ü Tamping before investment to improve the convertibility of regional project management indicators
ü Strictly control the positioning, configurations and product selection before investment
ü Priority projects which contribute to the Group ’s cash flows
ü Priority in fast-paced projects
ü Location selection: 80% in the Yangtze River Delta, Greater Bay Area, 20% in other key cities
ü City selection: 80% in primary and secondary lines, 20% in third-tier and other cities
ü Selection of product lines: 80% for first and second-time upgrader projects, 20% for first-time buyer and top products
Strict land acquisition standards
Diversified land acquisition methods
Future Development Strategy-deeper cultivation in cities and regions
Investment priority work
Quarterly nationwide clean-up data ( provincial capitals, prefecture-level cities, counties)Establish the calibration relationship between the conclusion of city map and the assessment of project profit margin.
Improve plate map and investment map
Establish customer sample databaseCustomer demand list, dig into customer value sensitive pointsFurther get through the market cognition and judgment of the investment-marketing line and form a more effective circle system.
Forming a standardized system of productsReverse Verification of “Product” Value Based on “Land-Customer”
Standardizing product recommendations and working together to enhance product competitiveness
Ø Consolidate Jiangxi's market position and deepen the existing Yangtze River Delta area, Greater Bay area, Central and Western China core cities and other regions.
Ø No longer simply pursuing business scale but placing equal importance on the quality of operation and economic efficiency, and further optimizing the Company’s land reserve structure through continuous optimization of investment methods and cooperation models.
Public tender 50%
Mergers and acquisitions
30%
Land acquisition by consolidation
industries20%
24
High-quality property management services enable us to gain wide market recognition and high customer satisfaction
桐乡濮园珠海翠湖香山桃花源
Onsite and related servicesDisplay and visitor management services
Co-marketing serviceRecommend potential buyers to developers
Pre-delivery serviceMaterial preparation, staffDispatch and delivery, and inspection assistance
Preliminary planning and Design Consulting ServiceSecurity, energy saving, fire safety, etc.
2018
FG Consulting’s surveys on customer satisfaction 1
2020
95.7% 92.7% 94.8%Ranked among all Chinese property management companies in the same period of investigation：
1st 4th 1st
High-quality service brings high level-of customer satisfaction, brand image and expansion capabilities
Many properties under management have been recognized by many city-level signature properties
ü Wuhan Jinyintan Hospitalü Sinic Center……
Note：1. The source of the information is the annual survey conducted by Beijing FG Consulting Co., Ltd. (a leading customer satisfaction survey and research company in China)
Future Development Strategy-consistently pursuing quality and services
Syndergies with property management business
Ø Insist on the ‘‘craftsman’’ sentiment and spirit of Sinic’s products, polishing every project. Insist on ‘‘Sinic’s 5S Healthy Residential District’’ standards, adhere to the creation of a customer-oriented product and service system. While considering scale, cost, and speed, further improve product landing quality, customer service capabilities, and service innovation capabilities.
Ø Insist on continuous hard work in products + services, do more and harder in the market. Persevere in focus, and become ingenuity, as always, polish every detail of the product with ingenuity, and stick to every promise to customers with the original intention
2019
25
Jiangxi Province Greater Bay Area Yangtze River Delta Region
Central, Western China and others
Nanchang-Xinlicheng
Huizhou-Xinlihuayuan
Guangzhou-Zhouyue
Hangzhou-Cixijiangyuechaoqi
Changsha-Xinliboyuan
Wuhan-Xinlicheng
武汉-新力城
Located in the West African purchase-restricted section of Jiulong Lake, along Longxing Street, and next to Metro Line 4 (under construction) Yufeng Street Station, the location is superior, the transportation is convenient, and the supporting resources are surrounded. Enjoy 8 ideals and let life fall in love.
GFA：About 750,000 sq.mPlot area：44,331 sq.mUnit type：90-141 sq.mASP：RMB 17,782 per sq.m
Located in the Binjiang area of Nanchang, the core area of Nanchang in the future, it enjoys the river view of Ganjiang River. Only about 200 meters away from the Dongxin Station of Metro Line 4 and is located on the Yanjiang Express Road. 5 commercial parcels and high-quality medical resources an multiple schools nearby
GFA： About 230,000 sq.mPlot area：70,000 sq.mASP：RMB 14,500 per sq.m
Located at the intersection of Shuikou Crown Road and Qinghu Road in Huicheng District, Huizhou City, it has convenient transportation and close to the Third Ring East Road. It also has rich river view park resources., four Sceneries in two districts, such as Wetland Municipal Park
GFA： About 1.23 million sq.mPlot area：550,000 sq.mASP：RMB 19,235 per sq.m
Located in Xintang Town on the west extension of the central axis of Zengcheng, Guangzhou. It is the core of the Guangdong-Hong Kong-Macao Greater Bay Area and the hub of the eastern Guangzhou transportation hub. It takes 30 minutes to the Zhujiang New Town CBD and 30 minutes to the Guangzhou-Shenzhen International Airport.
GFA：About 420,000 sq.mHigh-rise bungalow ：93-138 sq.mASP： To be determined
Located in the Taihu Lake National Tourism Resort in Wuzhong, Suzhou, backed by Qionglong Mountain and facing the vast TaihuLake, with a beautiful and pleasant environment. The project is close to Central West Line and Metro Line 5, with convenient transportation.
GFA：About 185,000 sq.mPlot area：About 90,000 sq.mVolume rate：1.5ASP：RMB 24,638 per sq.m
Suzhou-Yunyuboyuan
Located at the intersection of Xiangjiang Middle Road and Yinjiachong Road, Tianxin District, Changsha City, 100 meters to the east, GuangshaRoad in the east, Gancheng Garden in the north, Xiangjiang River in the west, Jiangwan Community
GFA：About 280,00028 sq.mUnit type: 115-159 sq.mLand cost：About RMB 6,300 per sq.mASP: RMB 15,826 per sq.m
Located at the intersection of Nanjiao Road and Third Ring Road in Hongshan District. Convenient transportation is the third ring road at the entrance, close to the double subway, and the surrounding education, commerce, and medical resources are complete
GFA：About 490,000 sq.mUnit type：114-130 sq.mASP: RMB 20,211per sq.m
Nanchang-Heyuebinjiang
Located in Cixi Xionghushan Street, next to XinchengAvenue, the main axis of the city, surrounded by abundant educational resources; beside Wuyue Plaza, it enjoys about 700,000 square meters of bustling commercial center; close to about 18,000 square meters of municipal park
GFA：About 220,000 sq.mPlot area：120,000 sq.mASP：RMB 20,000 per sq.m
Future Development Strategy-consistently pursuing quality and services
Insist on quality management- main projects
26
6.1%
5.5%
2019 2020
Selling and Administrative expenses rates dropped
Ø We are committed to further improving our management and development model through ‘‘Real Estate + Internet’’, to improve per capita efficiency, establish effective incentive mechanism and management mechanism.
Ø Through the implementation of digital modules and setting higher industry management standards, with the efforts of refined management, further improve operating efficiency.
Overall management
Virtuous optimization cycle
Improved development efficiencySpeed up the first opening cycle
Increased profit marginsCash flow breakeven is acceleratingPeak funding reduction
Get more quality projectsCompany growth
Increase in profitIncrease in available funds
Improved ability to acquire land and bid
In July 2020, the digital operationplatform was launched to achieve theeffect of promoting turnover, lockingprofits, fine management and control, toreduce costs and increase efficiency withthree dimensions of comprehensivebudget management, business planning,and digital risk control.
In August 2020, Sinic signed a tripartitestrategic cooperation agreement withSAP and Deloitte to jointly build a smartenterprise/project-level master dataplatform to realize the unification of corebasic data of companies, projects,organizations, etc., and provide a solidfoundation for company datastandardization
In August 2020, Sinic signed a strategiccooperation agreement with Alibaba, andlaunched the Internet procurement platform(New Tesco) in November, which improved theprevious pain points such as difficulty inbidding, complicated warehousing, and longprocesses, and greatly improved efficiency, itwas the first in the industry. Sinic will work withAlibaba in the future to carry outcomprehensive cooperation in the digitaltransformation of future communities, smartparks, new retail, and real estate companies
In 2020, a total of three digital platforms was built-digital operation platform, core master data platform, Internet + procurement platform
"Real Estate + Internet" Digital Transformation
Future Development Strategy-Refine management strategy
27
Central, Western China
and others19%
Greater Bay area22%
Jiangxi Province
29%
Yangtze River Delta Region
30%
n In 2021, the total attributable saleable value is expected to be RMB 85 billion, and the regional layout will be more diversified, among which tier-1 and tier-2 cities accounts for 93%.
70%
30%
New Old
57%
43%
1H 2H
Nanchang-Bocui Zhongyang
Huizhou-Zhenyuan
Hangzhou-Yuyingfengyuan
Changsha-Yuehujun
Yangzhou-zhenyuan
Guangzhou-zhouyue
Tier-270%
Tier-3 and others
7%
New Tier-123%
Future Development Strategy-Refine management strategy
28
Prudent financial policies, More optimized financing management
Ø Actively optimize and broaden its financing channels: successfully issued three onshore USD bonds in 2020, andthe coupon rate has been gradually reduced;
Ø The four major rating agencies have successively given a “stable” or “positive” outlook to Sinic Holdings, continueto increase H-to-H cooperation with financial institution, and maintain an excellent credit image.
Ø Further expand and deepen its cooperation with banks on the basis of the existing banking cooperation- obtainedcredit facilities from a number of financial institutions in 2020 and developed new financing channels asset-backedsecurities (“ABS”).
Insist on high standards of corporate governance and ESG governance
Ø Continue to enhance its market influence and brand competitiveness through high standards of corporategovernance and ESG governance to safeguard the Group’s compliance and sustainable development, and tobuild an all-round lifestyle platform underpinned by a happy community.
Ø The Company’s Green, Socially Responsible, Sustainable Development Finance Framework (the‘‘Framework’’) reinforces Sinic’s commitment to sustainable development and aligns our financing strategy withglobal best practices in ESG bond issuance.
Future Development Strategy
29
Appendix
NanchangHongda-Sinic: Heyuebingjiang 30
Shareholding Structure
Source: Company Prospectus and Disclosure1 The investment decision maker and property grantor of the Family Trust is Mr. Zhang Yuanlin (the chairman and Executive Director of the Company), and the
beneficiaries of the Family Trust are Mr. Zhang and his family members2 Shanghai Daichuang Industrial Co., Ltd., a wholly-owned subsidiary of Sinic Holdings, holds 20% of Jiangxi Sinic Land
Sinic Management (China)
Offshore
Onshore
Sinic Real Estate (China)
Jiangxi Sinic Land2 (China)
Chengdu Sinic
(China)
Guangzhou Sinic
(China)
Huizhou Lichuang (China)
Hunan Zaiyue (China)
Suzhou Sinic
(China)
Sinic Holdings (Group) Co., Ltd. (2103.HK)(Cayman Islands)
78.99%
Employee Incentive Trust Public InvestorsFamily Trust1
4.20% 16.81%
100.0%
100.0%
100% 100% 100% 100% 100% 100%
Li Yue Co., Ltd.
Li Yue (HK) Holdings Ltd.
Forest Resources Developments Limited
Icons Electronics Limited
100% 100%
100% 100%
31
6,639 6,225 6,955 7,707 8,106 8,276
12,016
13,257
2013 2014 2015 2016 2017 2018 2019 2020
Stable Real Estate Market in Jiangxi Province
Real Estate Market Potential in Jiangxi Province(1)
Rooted in Jiangxi Province, where the economy is growing rapidly, the Company will continue to plant roots in local market and further strengthen its market position
2013-2020 GDP of Nanchang(2)
Unit: RMB 100 million
Population of Nanchang City at the End of the Period of 2013-2020(3)
Unit: 10 thousand people
Average selling price in the main urban area of Nanchang in recent years(4)
Sources: (1) Provided by Wind Information and Company; (2) National Bureau of Statistics; (3) National Bureau of Statistics; (4) National Bureau of Statistics
● Sound economy, population base and market development
– In 2020, Jiangxi Province's GDP reached RMB 2.60 trillion, an increase of 3.6% over theprevious year, higher than the national level– In recent years, the permanent population of Jiangxi Province has increased year byyear, and the trend of net population inflow has laid a good foundation for the developmentof the real estate market– The average price of commercial housing in Nanchang in 2020 was RMB 13,257 persquare meter, and the transaction area was 4.52 million square meters
● 2021 real estate market outlook:
– Integrated City Connections: The policies will continue to be optimized and thetransportation construction will continue to play its role in Jiangxi. The investment intransportation construction will continue to operate at a high level; the effect oftransportation upgrades will be further significant, and foreign exchanges will continue todeepen– Nanchang Development Plan: The Jiangxi Provincial Government has launched the"Greater Nanchang Urban Development Plan", with the center of Nanchang city andGanjiang District as the core, the urban construction has embarked on a rapiddevelopment track– Policy Environment of Nanchang: Still adhere to the positioning of "Houses are forhabitation, not for speculation", and implement policies such as "Three restrictions inhousing" to ensure the rigid demand of residents and maintain market stability. In April2020, Nanchang fully relaxed its household registration policy and became the firstprovincial capital city with a “zero threshold” for household registration in China. This actionwill have a positive impact on the property market.
● SINIC's advantages in Jiangxi are second to none:
– Performance of Real Estate Enterprises in commercial housing transaction inNanchang: SINIC ranked first
– As of December 31, 2020, the Company’s attributable land reserve in Jiangxi was 4.67million square meters, accounting for 30.7% of the total land reserve, which wasmainly located in core areas, such as Nanchang and Honggutan New District, wherethe location is superior, and the development potential is huge.
Unit: RMB/ M2
32
530
537
546
554 560
566
2015 2016 2017 2018 2019 2020
4,000 4,355
5,003 5,275 5,596 5,794
2015 2016 2017 2018 2019 2020
Huge Potential in the Greater Bay Area
Sources: (1) Provided by Wind Information and Company; (2) National Bureau of Statistics; (3) National Bureau of Statistics; (4) National Bureau of Statistics (5) Ranks of CRIC, CREIS and EH Consulting and some local media in 2019
Focusing on developing other areas with high economic growth, especially in the rapidly developing Greater Bay Area, which has a large amount of high-quality land resources
● The Greater Bay Area plan is incorporated into the national strategy:
– At the “NPC & CPPCC Sessions” held in March 2017, the “Guangdong-Hong Kong-Macao Greater Bay Area” was included in the State Council’s government workreport, and was raised to the national strategic level
● The prospects of the Greater Bay Area are highly anticipated:
– The Guangdong-Hong Kong-Macao Greater Bay Area had a GDP of RMB 11.5trillion in 2020, accounting for 10% of the national GDP. It is positioned as a world-class bay area in policy, but its per capita GDP is still significantly lower than that ofthe world’s three major bay areas. In the future, the industrial innovation andincreasingly enhanced road network are expected to improve coordinateddevelopment and lead the rapid economic growth of the Guangdong-Hong Kong-Macao Greater Bay Area
– Accelerating the coordinated development of the Greater Bay Area is expected toaccelerate the population migration to the Greater Bay Area city circle and increasethe number of permanent residents. At the same time, the Greater Bay Area'splanning for education and scientific research is also expected to improve thepopulation quality
– In 2020, the transaction volume of commercial residential buildings in the GreaterBay Area was approximately RMB 1.36 trillion, a year-on-year increase of 18%. Thetransaction volume was approximately 60 million square meters, flat with that of lastyear, with an average price of approximately RMB 22,368 per square meter.
– Huizhou is the only city in the Shenzhen-neighboring area with no restrictionson purchases. In addition, when the Shenzhen-Huizhou intercity rail is completed inthe future, Shenzhen-Huizhou will enter the "1 hour metropolitan circle" and bebenefited from the spillover benefits of Shenzhen.
● SINIC has seized land resources in the Greater Bay Area:
– As of December 31, 2020, the Company’s attributable land reserve in GreaterBay Area was 4.96 million square meters, accounting for 32.6% of the totalland reserve; most of the projects are located in core and high-growth areassuch as Guangzhou, Shenzhen, and Huizhou, where the geographicallocations are superior
– In 2020, The Company ranks fourth in Huizhou, with a market share of 3.7%(2)
Qingyuan
Zhuhai
Shenzhen
Huizhou
Zhongshan
Guangzhou
QingyuanAttributable GFA (thousand square meters)
29
Guangzhou Attributable GFA (thousand square meters) 233
HuizhouAttributable GFA (thousand square meters)
4,227
ShenzhenAttributable GFA (thousand square meters)
202
ZhuhaiAttributable GFA (thousand square meters)
180
ZhongshanAttributable GFA (thousand square meters)
88
The Greater Bay Area is included in the national strategy with prominent prospects(1)
33
Stable Development in Yangtze River Delta region
Sources: (1) Provided by Wind Information and Company; (2) National Bureau of Statistics; (3) National Bureau of Statistics; (4) National Bureau of
The Company has a large amount of high-quality land resources in the rapidly developing Yangtze River Delta region to support the sustainable long-term development in the future
● Strategic position of the Yangtze River Delta:
– As an important intersection of the "Belt and Road" and the YangtzeRiver Economic Belt, the Yangtze River Delta region is at anadvantageous position of important international trade routes andoccupies an important strategic position in the national modernizationand all-round opening up
– In 2019, the deliberation of the "Outline of the Integrated RegionalDevelopment of the Yangtze River Delta" confirmed the nationalstrategic position of the Yangtze River Delta
● Real estate market outlook:
– In 2020, the transaction volume in the Yangtze River Delta region was RMB 1.67 trillion, a transaction volume of 8,119 million square meters, and an average price of RMB 20,609 per square meter. The transaction volume increased by 7% year-on-year.
– City size: The GDP of the Yangtze River Delta urban agglomeration in 2020 reached RMB 20.5 trillion, accounting for 20.18% of the total of China, a year-on-year increase of 6.55%, which was 4 percentage points higher than the national growth rate. With a population of approximately 227 million people, it is also among the world’s six largest urban agglomerations
– City connections: The Yangtze River Delta region is promoting transportation integration. There are more than 200 high-speed rail train routes passing through many cities, which shows the high degree of connectivity between cities. In addition, the government service "Integrated Online Platform" is opened and the entire region will be benefited from the integration of the neighboring cities
– Policy environment: Implement the policy of stabilizing land prices and housing prices, and introduce policies to attract talents
● SINIC has seized land resources in the Yangtze River Delta:
– The Company expanded to the Yangtze River Delta region in 2017. Asof December 31, 2020, the Company's attributable land reserve in thisregion was 3.06 million square meters, accounting for 20.1%; most ofthe projects are located in core cities such as Shanghai, Suzhou,Hangzhou, Wuxi, Nanjing, and Wenzhou City, where the locations arefavorable
Source: (1) CRIC, 58 Anjuke Real Estate Research Institute and other market research reports
Suzhou
Wenzhou
Shanghai
XuzhouAttributable GFA (thousand square meters)
102
HangzhouAttributable GFA (thousand square meters)
114
NanjingAttributable GFA (thousand square meters)
136
SuzhouAttributable GFA (thousand square meters)
960
WenzhouAttributable GFA (thousand square meters)
100
ShanghaiAttributable GFA (thousand square meters)
59
NingboAttributable GFA (thousand square meters)
157
NanjingHefeiAttributable GFA (thousand square meters)
304
Zhuji
ZhujiAttributable GFA (thousand square meters)
463
Hefei
Wuxi Ningbo
HangzhouXuzhou
WuxiAttributable GFA (thousand square meters)
502
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Steady Improvement in the Central and Western Regions and Other Regions with High Growth Potential
● Strategic status of cities in the central and western regions:
– Wuhan: The only sub-provincial city in the six central provinces, a megacity in thecentral region, and one of the nine central cities approved by the State Council. In 2018,the State explicitly required to lead the development of urban agglomerations in themiddle reaches of the Yangtze River with Wuhan as the center.
– Changsha: The capital of Hunan provincial, an important central city in the middlereaches of the Yangtze River, a pilot zone of comprehensive supporting reform of"building environment-friendly and resource-efficient society” across the country, and anational comprehensive transportation hub.
– Chengdu: The capital of Sichuan Province, a sub-provincial city, a megacity, a core cityin the Chengdu metropolitan area, an important central city in western China approvedby the State Council, an important national high-tech industrial base, a commerciallogistics center and a comprehensive transportation hub.
● Real estate market outlook:
– Wuhan: In 2020, Wuhan suffered a decline in the first quarter due to the outbreak ofCOVID-19, and rebounded rapidly in the later period of the outbreak. As of December 31,2020, the transaction volume of Wuhan was 1.7 million square meters, and the averageprice was RMB 14,819 per square meter with an increase of 15.4% year-on-year.
– Changsha: In 2020, the transaction volume of Changsha was 1.3 million square meters,and the average transaction price was RMB 9,789 per square meter, with an increase of14.4% year-on-year.
– Chengdu: In 2020 the transaction volume of Chengdu was 2.4 million square meters, andthe average transaction price was 13,797 per square meter, with an increase of 14.2%year-on-year.
● SINIC has seized land resources in the Midwest:
– As of December 31, 2020, the Company's attributable land reserve was 2.52 millionsquare meters, accounting for 16.6%; most of the projects are located in core citiessuch as Changsha, Wuhan, and Chengdu, with superior geographical locations. Inaddition, the Company also developed other regions with high growth potential such asShandong and Fuzhou. Shandong as one of the provinces with the largest population,volume and price there have been stable. It is a typical close market.
After the outbreak of COVID-19, cities in the central and western regions recovered quickly, with average selling prices increasing significantly year-on-year
Wuhan
Changsha
Chengdu
ChengduAttributable GFA (thousand square meters)
352
WuhanAttributable GFA (thousand square meters)
727
Changsha Attributable GFA (thousand square meters)579
Sources: CRIC, 58 Anjuke and other market research reports
FuzhouAttributable GFA (thousand square meters)
233
Fuzhou
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New Land Reserve in 2020
Projects Equity interest Planned GFA(Thousand sq.m) Attributable planned GFA (Thousand sq.m)
Greater Bay Area 88% 1,235 1,086 203 mu, Xuetangpai, Huizhou City 80% 530 424 242 mu, Lin Village, Fang Village, Huizhou City 100% 490 490 127 mu, Zhongkai District, Huizhou City 80% 215 172
Central, Western China and others 69% 375 257 Yuerongshoufu, Changle District, Fuzhou City 100% 140 140 51.5 mu, Beihai Road, Fangzi District, Weifang City 48% 86 42 Dawangling Project, Furong District, Changsha City 51% 149 76
Jiangxi Province 51% 2,928 1,486 Nancheng Yujing Wan, Fuzhou City 100% 139 139 100.84 mu, Chongren County, Fuzhou City 43% 161 70 115.36 mu, Tourist Highway, Jinxi County, FuzhouCity 50% 159 79 Dongyuan, Ganzhou City 100% 159 159 25 mu, Taihe County, Jian City 100% 38 38 Project of 231 mu, Leping City 45% 275 124 Phase 1 of Changhuyignyue, Jixian County, Nanchang city 52% 142 73
70 mu, east of Fengling Road, Qinglan New District, Jinxian County, Nanchang City 52% 84 43
258 mu, Jiulong Lake, Nanchang City 18% 874 157 98.75 mu, Yingbin Avenue, Nanchang County, Nanchang City 50% 175 87 238 mu, Wangcheng Town, Xinjian District, Nanchang City 52% 373 192 73 mu, Xinjian District, Nanchang City 100% 115 115 92 mu, Xinjian District, Nanchang City 100% 183 183 40mu, Zhangshu, Yichun City 50% 52 26
Yangtze River Delta Region 53% 1,219 646 183mu, South of Cixi, Ningbo City 40% 147 59 Project of 70 mu, Haimen, Nantong City 25% 64 16 Project of 40 mu, Pingyao, Yuhang District, Hangzhou City 100% 37 37 Project of 84 mu, Pingyao, Yuhang District, Hangzhou City 100% 77 77 Jianghusiji, Suzhou City 50% 137 69 70.95 mu, Guanting, Beishan Road, Songyang County, Lishui City 25% 79 20 Duhuichengpin, Nanjing City 33% 263 87 50 mu, Yuyao City 100% 59 59 20 mu, Tangxia Town, Ruian City 51% 39 20 55 mu, Hailing District, Taizhou City 100% 50 50 Land parcel B5 of 32 mu, South of Taihu Avenue, Xinzhuang, Yixing, Wuxi City 50% 38 19 Land parcel B5 of 37 mu, South of Taihu Avenue, Xinzhuang, Yixing, Wuxi City 50% 49 25 Land parcel B5 of 59 mu, South of Taihu Avenue, Xinzhuang, Yixing, Wuxi City 50% 58 29 Haiyangguan East Road, Gulou District, Xuzhou City 50% 80 40 Puyuan, Yangzhou City 100% 40 40 Total 60% 5,756 3,474
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