Aoyuan Group profit remains flat YoY at RMB2.843b in H1 2021

It posted RMB2.84b profit in the same period last year. 

China Aoyuan Group Limited’s profit in the first half of 2021 remained flat at RMB2.843b from RMB2.84b in the same period last year.

Its revenue rose 15% year-on-year in the first half to RMB32.5b from 28.2b, whilst its cost of sales also rose to RMB24.4b from RMB20b in the same period last year. Its core net profit rose 1% to RMB2.9b YoY in the first half from RMB2.82b in the first six months of 2020.

Aoyuan had more than 70 urban development projects at different phases as of 30 June and is expected to provide more saleable resources of around RMB754.3b; RMB748.7b of which are located in the Greater Bay Area, it said in a statement.

The company’s covered saleable resources from urban redevelopment were around RMB13.5b in the first half, with saleable resources of about RMB242b expected to be converted from urban redevelopment projects from 2021 to 2024.

“Aoyuan maintained prudent land acquisition whilst leveraging its traditional strengths in merger and acquisitions, urban redevelopment, etc. with a focus on tier 1 and 2 cities,” it said, noting that during the period, newly added saleable resources amounted to RMB17.8b, 76% of which were converted from urban redevelopment projects.

It also said the proportion of new acquisitions located in tier 1 and 2 cities rose to 92%. As of 30 June, the total gross floor area of its landbank was at around 53.58 million square metres, with total saleable resources of about RMB593.9b.

The total saleable resources including urban redevelopment projects are worth about RMB1.3t, with the proportion of projects in tier 1 and 2 cities rising to 84%.

“Aoyuan will continue to deepen its strategy of ‘one core business with vertical development’ and drive synergies between Quality Living and Joyful and Healthy Lifestyle. This gives full play to the company’s comprehensive competitiveness, achieving sustainable and high-quality development, and thereby delivering stable and long-term returns to shareholders and investors,” it said.

The company established the Quality Living segment for its core property business, whilst the Joyful and Healthy Lifestyle is for its non-property business.

It said total credit facilities were around RMB242.6b as of 30 June, RMB128.3b were unutilised, with cash collection rate was stable at 87%, and its liquidity was ample with total cash of around RMB68b.