DaFa Properties Group Limited (“DaFa Properties” or the “Company”, together with its subsidiaries, the “Group”; stock code: 6111.HK) is pleased to announce its first anniversary of listing on the Main Board of the Hong Kong Stock Exchange since 11th October 2018. Reviewing the year after listing, the Company had a lengthy parade of highlights in its business results, which included the marked enhancements and increases of its operational capabilities and various profit indicators, and its widening recognition in the international capital markets. In the year, with its united efforts, the Company successfully delivered commendable business results in celebration of its first anniversary of grand listing.
In the first half of 2019, in its first interim report, the Company announced increases in both revenue and profit. As of 30th June 2019, it recorded revenue was RMB3,974 million, representing an increase of 303% over the same period of 2018.Gross profit was RMB961 million, representing an increase of 228% over the same period last year. For the first time, the Company declared an interim dividend of 8.5 HK cents per share, which represented a dividend payout ratio of 20% and indicated a considerable increase in profitability. Compared with the corresponding period last year, the Company’s contracted sales soared 41%, 96.2% of which derived from the Yangtze River Delta region, and contracted GFA grew 133%.
Earn Perennial Recognition from Capital Market with High-quality Development
In 2019, the Company notched up a series of awards including the “China’s Top 5 Fast-growing Real Estate Listed Companies 2019”, “2019 Most Recognised Real Estate Companies by the Capital Market”, “Top 10 Corporate Governance of Chinese Listed Real Estate Companies for 2019”, “Top 100 Comprehensive Strength Listed Real Estate Enterprise of China for 2019”, “Real Estate Companies with Excellent Investment Value for 2019”, “Emerging Outstanding Listed Company Award 2015” and “China’s Valuable Listed Real Estate Company for 2019”, which reflect that the Company has gained market attention and recognition with its capabilities.
In addition, by formulating “Big Finance” construction plans, the Company strictly controls risks, closely monitors various financial indicators, pays attention to cash flow and repayment and increases financing channels using its stable and healthy financial status, in order to maintain the normal and efficient flow of its corporate finances. In the first half of 2019, the Company was assigned a “B2” rating with stable outlook by Moody’s and another “B” with stable outlook by S&P. Between April and July 2019, the Company issued notes worth a total of US$300 million.
Focus on “1+5+X” Strategies and Specify Layout for More Land Reserves
As of the first half of 2019, the Company possessed land reserves totalling approximately 4.32 million sq.m., which included 13 new plots of land and 1.28 million sq.m. newly obtained land reserves. Concurrently, the Company was committed to its prudent investment principles and carried out strict measurement and discussions on all the newly added land.
Under industry trends and its development needs and strategic guidance for deep penetration of the Yangtze River Delta region and presence in the golden metropolitan clusters nationwide, the Company further specified its “1+5+X” layout system by intensively penetrating the Yangtze River Delta region while extending its presence into the five major urban clusters of Chengdu and Chongqing, areas around Xi’an, North China, Bohai Rim and Guangdong-Hong Kong-Macao-Greater Bay Region, as well as maintaining its strategic focus on other key cities with high development potential. The Company’s deep penetration of its key target areas and strategic expansion help the sustainable development of its land reserves.
Follow Trend of Pleasurable Home Creation and Lead Industry with Situational Properties
Since its inception, the Company has been persistently committed to innovation; on 19th December 2018, its brand and the “Bliss” product series were launched worldwide. Through technological empowerment, the Company has established the diverse Yue scenes – “Eight Yue Scenario Systems”. By complying with the “80% standardisation + 20% personalisation” principle, the Company integrates regional cultures into its product design concepts to create products in line with the city context and temperament. At present, the concept of a “Yue Lifestyle with Chinese characteristics” has been realised one after another in the “Bliss Series” and “Metropolitan Series” projects.
In the first half of 2019, the Company achieved an average sales percentage of over 80% in its first project, beating its competitors in terms of the prices and sales rate. Apart from that, the Company was awarded the Real Estate Design China Award (Merit) for its Zhoushan Dafa-Bliss Xinjie Residence and Wenzhou Dafa-6 The Metropolis Drive projects. Moreover, it has received recognition from the real estate industry for its operational capabilities, claiming awards such as the “Mall China Golden Mall Awards 2018 Format Innovation Award” and “2018 Most Innovative Enterprise Award” for its innovation and widespread trend influence in the Nanjing IST Mall.
Mr. Ge Yiyang, Chairman of DaFa Properties, said that “After 23 years of continuous efforts, DaFa Properties finally welcomes its first listing anniversary. Looking forward, based on the four major principles of excellent operation, scenario experience, technological empowerment and pleasurable home creation, the Company will continue to be oriented towards national police, follow city development trends and conduct deep penetration and exploration in entering more cities and achieving exponential growth. Besides, in implementing its brand concept of ‘life-driven innovation’ and ‘1+5+X’ strategic layout guidance, the Company will continuously explore new needs for human residences, and fully utilise its competitive and development advantages by way of IP creation for its ‘Bliss’ product series with ingenuity, as well as its forward strategic layout and stable financial policies, so as to realise extensive development and steady growth.”
About DaFa Properties Group Limited
Establiahsed in 1996 and headquartered in Shanghai, DaFa Properties is a real estate developer in the Yangtze River Delta Region focusing on the development and sales of residential properties. Over the years, the group has positioned its brand as “Designing for Life” and adhered to the business philosophy of “Pursuing Excellence with Integrity and Innovation”, providing customers with top quality properties and specific living scenes through the development and construction of premium properties. As of June 30, 2019, the group had a total of 38 projects under construction, completed and acquired in the Yangtze River Delta Region, 2 projects under construction in Chengyu Metropolitan Cluster, and 1 project under construction in the Guangdong Region. As the creator of “Situational Real Estate” and with 23 years of experience in the industry, DaFa Properties has built a solid reputation upon exceptional product quality and product offering. In the future, it will continue to uphold the goal of building a better life for people, improving their living environment and enhancing their living quality.