16.03.2021, 19:00

Datang Announces 2020 Annual Results

Property Sales Revenue Increases   Net Profit Hit a New High

Breakthrough in Business Expansion

Quantity and Quality of Land Bank Significantly Improved

 

Financial Review


 

(RMB'000)


For the year ended December 31


2020


2019


Change (%)


Revenue


10,588,379


8,108,026


+30.6%


Gross Profit


2,695,925


2,185,373


+23.4%


Net Profit


949,949


627,413


+51.4%


Profit Attributable to Owners of the Company


715,372


710,256


0.7%


Basic Earnings Per Share (RMB)


0.70


0.90


-22.2%


Proposed Final Dividend (RMB cents)


11


N/A


N/A


 

HONG KONG SAR - Media OutReach - 16 March 2021 - Chinese property developer ─ Datang Group Holdings Limited ("Datang" or the "Company"; together with the subsidiaries, the "Group"; HKEx stock code: 2117) is pleased to announce today the annual results of the Group for the year ended 31 December 2020 (the "year").

 

"The layout of urban agglomerations and the deep cultivation of metropolitan areas" is Datang's basic strategy. During the Year, the Group achieved stable growth in results. Revenue increased 30.6% year-on-year to RMB 10.59 billion; net profit was RMB 950 million with a year-on-year growth rate of 51.4%; profit attributable to owners of the Company increased to approximately RMB 715 million. Basic earnings per share were RMB 0.70. In return for the trust and support of shareholders, the Board of Directors proposed the distribution of a final dividend of RMB 11 cents per share.


In 2020, the Group followed the geographical layout of 2+1+X, focused on existing areas, consolidated existing layout in the two urban agglomerations of the Haixi and Beibu Gulf Region, and established a relatively stable scale advantage. Meanwhile, we seized the opportunity of establishing the headquarters in Shanghai, by taking root quickly in the Yangtze River Delta Region, as well as successively entered into 14 nodal core cities with economic vitality, such as Ningbo, Taizhou, Wenzhou, Changzhou, Nantong, Wuxi and others. We have strengthened strategic cooperation with leading companies in the industry, all of which will lay a solid foundation for the Group to become a national comprehensive real estate company.

 

The Group continued to efficiently supplement land bank, through various land acquisition methods such as public bidding, auction and listing and joint ventures, a total of 44 high-quality land parcels were obtained, with a total planned gross floor area ("GFA") of 8.39 million sq.m. As of 31 December 2020, the Group had a total of 123 real estate projects in various stages of development in six large economic zones, with a total GFA of approximately 20.44 million sq.m. in landbank, providing sufficient support for future development.

 

Besides real estate business, the Group has businesses in investment and operation of commercial properties and hotel operation, thus diversifying the Group's businesses. For the year ended 31 December 2020, the Group achieved rental income of approximately RMB 56.4 million, representing an increase of 38.9% compared to that in 2019. The increase was mainly attributable to the additional rent from commercial space of Nanning Dynasty Tiancheng Phases I and II. The Group has ten commercial property projects mainly located in Xiamen, Fujian and Nanning, Guangxi, respectively.

 

For the year ended 31 December 2020, the Group achieved sales revenue from hotel operation business of approximately RMB 47.8 million, representing an increase of 37.6% compared with that in 2019. The increase was mainly attributable to the improvement of performance of Xiamen Dynasty Jinglan Jia Hotel and Nanning Dynasty Congyue Hotel. The Group has two hotels opened, namely Xiamen Dynasty Jinglan Jia Hotel and Nanning Dynasty Congyue Hotel.

 

2020 is a milestone for the Group to achieve a capital breakthrough. In December, the Group listed on the Main Board of the Hong Kong Stock Exchange, successfully setting foot in the international capital market. As of December 31, 2020, the Group's cash and bank balances were approximately RMB 5.66 billion, an increase of 38% as compared with the year end of 2019, showing sufficient cash on hand. Gearing ratio and net gearing ratio were at a stable level of 83.2% and 58.7%, respectively (2019: 91.7% and 119.2%), a significant improvement compared with those in the previous year.

 

Looking ahead to 2021, Mr. Wu Di, Chairman of the Group concluded, "Looking forward, the Group will always adhere to the 'customer-focused, high-quality and large-scale development theme, two-wheel drive of platform strategy and product power improvement' to achieve further growth in performance. In terms of specific businesses, we will continue to firmly implement the platform strategy, broaden the circle of friends, and accelerate the gathering of resources. We insist to focus on the customer's value perception, and continue to promote the improvement of product power. In addition, the Group will actively promote the construction of headquarters in Shanghai, and is determined to create a more open and compatible platform, introduce more high-quality resources, and achieve a national layout with a better brand image.

 

"The Group will continue to follow closely on the '14th Five-Year Plan' development strategy of China, implement the strategy of 'making the layout of urban agglomeration, taking root in metropolitan area', and adhere to open cooperation. We will grasp the structural and trending opportunities in the new era of China's real estate development, steadily expand to cities with high-quality strategic opportunities, and strive to open up a broader development space to further consolidate our industry and market position, and achieve sustained and steady business growth, in order to return shareholders and investors with better performance, satisfy the needs of customers, return the trust of customers with better products, and build Datang into a high-quality listed company with sustainable growth."