Sinic Holdings Announces 2019 Annual Results

Annual Results Recorded New Highs with Steady Development

Laying a Solid Foothold in Jiangxi for Nationwide Development

ANNUAL RESULTS HIGHLIGHTS

Total contracted sales and attributable contracted sales in 2019 reached a record high of RMB91,422.7 million and RMB45,109.1 million respectively,representing a year on-year increase of approximately 28.6% and 30.1%,respectively. Total revenue increased significantly by approximately 220.7% year-on-year to RMB26,984.9 million in 2019.

Gross profit amounted to RMB7,998.5 million,representing a year-on-year increase of approximately 154.5%.

Gross profit margin was 29.6%.

Profit for the year hit a record high,with a year-on-year increase of approximately 263.0% to RMB2,014.3 million in 2019. The profit attributable to the owners of the parent was RMB1,957.8 million,representing a year-on-year increase of approximately 373.4%.

Net profit margin increased by 0.9 percentage points to 7.5% in 2019.

Core profit attributable to the owners of the parent(Note 1) was RMB1,852.7 million,representing a year-on-year increase of approximately 485.2%.

The Board proposed a final dividend of RMB13 cents per share,representing a payout ratio of approximately 25.1% of the core profit attributable to owners of the parent in 2019.

On 15 November 2019,the Company's shares were listed on the Main Board of the Stock Exchange,raising gross proceeds of approximately HK$2.3 billion (including the exercise of the over-allotment options).

Cash and bank balances(Note 2) were RMB16,598.6 million as at 31 December 2019,representing a year-on-year increase of approximately 64.9%.

Net gearing ratio was significantly reduced to 67.0% as at 31 December 2019.

Weighted average cost of indebtedness as at 31 December 2019 was 9.2%,representing a decrease of 0.1 percentage points as compared to 2018.

Return on average equity was 20.2%,representing an increase of 8.7 percentage points as compared to 2018.

HONG KONG,March 31,2020 -- Sinic Holdings (Group) Company Limited ("SinicHoldings" or the "Company",together with its subsidiaries,the "Group",stock code: 2103.HK) announces its audited annual results for the year ended 31 December 2019 (the "Reporting Period").

During the Reporting Period,the Group recorded revenue of RMB26,984.9 million,representing an increase of approximately 220.7% as compared with the previous year (RMB8,415.7 million). Gross profit amounted to RMB7,representing a year-on-year increase of approximately 154.5% as compared with the previous year (RMB3,143.0 million).Profit for the year was RMB2,014.3 million,representing a year-on-year increaseof RMB1,459.3 million or approximately 263.0%(RMB555.0 million).The profitattributable to the owners of the parentwas RMB1,representinga year-on-year increase of approximately 373.4%. Core profit attributable to the owners of the parentwas RMB1,representing a year-on-year increaseof approximately 485.2% as compared with the previous year (2018: RMB316.6 million). The basic earnings per share of the Group was RMB0.64 per share.

2019 marked a milestone year of the Group. On November 15,2019,the Group was successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange"),symbolizing a new era for the Company as one of the youngest property developers listed on the Stock Exchange. The listing has enhanced the brand awareness of the Company and enabled the Group to continue its pursuit of opportunities in the capital market to further advance its business expansion and financial flexibility. With respect to the capital market,the Company has been selected by Hang Seng Index Company Limited as a constituent of the Hang Seng Composite Index,which took effect from 9 March 2020. At the same time,the Company has been selected as one of the eligible stocks included in Southbound Trading under Shenzhen Connect on 9 March 2020.

In terms of contracted sales,for the year ended 31 December 2019,total contracted sales and attributable contracted sales of the Group reached a record high of RMB91,representing a year-on-year increase of approximately 28.6% and 30.1% as compared with RMB71,080.9 million and RMB34,681.1 million in 2018,which was mainly attributable to the increase of the Group's saleable GFA. The attributable contracted sales amount arose from four major regions across China,with approximately 54.3% in Jiangsu Province,approximately 23.9% in theGreater Bay Region,approximately 11.1% in the Central and Western China core cities and other regionswith high-growth potential and approximately 10.7% in the Yangtze River Delta Region,covering over 30cities.

In terms of land reserve,the Group emphasizes diversified regional distribution in second-tier cities and acquisition of high-quality land reserves. As at 31 December 2019,the Group had 117 property projects at different development stages,including 80 projects developed by its subsidiaries,37 projects developed by its joint ventures and associates; and the total land bank attributable to the Group reached approximately 15.09 million sq.m.,with both development scale and land bank displayinga rapid growth. From the perspective of the land bank locations,the equity value attributableto the Group in Jiangxi Province,the Yangtze River Delta Region,the Greater Bay Areaand other core cities in Central and Western China accounted for approximately 33.1%,17.3%,32.5%,and 17.1%,respectively. In terms of saleable value,approximately 88% of the land bank was located in the first- and second-tier cities.

Majority of the land reserve the Group acquired was in the first-tier and the second-tier cities of the four major regions. During the Reporting Period,the Group obtained 36 parcels of high quality land with a land premium of RMB19.45 billion through various approaches including public tender,mergers and acquisitions,and joint ventures and associates. The total planned gross floor area (the "GFA") was 4.8 million sq.m.,of which 2.8 million sq.m. of planned GFA was attributable to the Group,of which 43.6% were in theCentral and Western China and other regions,24.4% in the Yangtze River Delta Region,19.4% inJiangxi Province,and 12.6% in the Greater Bay Area,across 21 cities. The percentage of newlyadded land bank in the first- and second-tier cities reached 92% during the Year.The average land cost for the lands acquired in 2019 was approximately RMB7,051 per sq.m..

The Group has the sufficient liquidity. As at 31 December 2019,the Group had bank balances and cash of RMB16,598.6 million (2018: RMB10,065.6 million),representing a year-on-year increase of approximately 64.9%; net debt-to-equity ratio was significantly reduced to 67.0%; weighted average cost of indebtedness as at 31 December 2019 was 9.2%,representing a decrease of 10 basis points as compared to the lastyear.

The Co-Chairman and Executive Director of SinicHoldings,Mr. Zhang Yuanlin said,"2020 marksthe tenth anniversary of the establishment of Sinic. During the past ten years,Sinichas committed to creating a happyand better life for our customers.

Looking forward to 2020,in terms of sales,we will adopt a more active and agile product sales and pricing strategy in response to the market change. In terms of operations,we will adjust the delivery cycle in a timely manner accordingto market demand. In terms of finance,we will carry out a more prudent financial policy and strengthen cash flow management with an aim of securing steady development with a healthy financial condition. The sudden outbreak of the epidemic early this year has had a short-term impact on the economy of PRC. We are confident of the epidemic prevention and control capability as well as relevant measures of the PRC government,and are positive on the future economic prospect. At the same time,the government has successively introduced relevant economic supporting and stimulus policies. With regards to this,we will pay close attention to any changes concerning the epidemic,and will proactively respond to relevant epidemic prevention measures imposed by the government,while still implementing existing investment development strategy and specific plan. Looking ahead,the Group is confident that we will benefit from the growth in the demands for residential and commercial properties in the Jiangxi Province,Yangtze River Delta Region,the Greater BayRegion,the core cities in the Central and Western China and other regions with high-growthpotential. In 2020,the saleable property value of the Group is abundant and mainly in four regions. Sinic Holdings will consolidate itscurrent market position and further accelerate nationwide development of its business,strivingto achieve the strategic development of 'laying a solid foothold in Jiangxi for nationwidedevelopment'."

Notes:

(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) Cash and bank balances comprises restricted cash,pledged deposits and cash and cash equivalents.

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About Sinic Holdings (Group) Company Limited

Sinic Holdings (Group) Company Limited is a large-scale and comprehensive property developer in the PRC,focusing on the development of residential and commercial properties. Through nearly 10 years of operations,the Company has successfully established a leading position among residential property developers in Jiangxi Province and expanded its property development business into the Yangtze River Delta Region,the Greater Bay Region and the Central and Western China Core Cities and Other Regions with High-Growth Potential. According to the rankings of CRIC,China Index Academy and EH Consulting,the company ranked 36th,32nd,and 31st in terms of sales amount (including all income) among real estate development enterprises of China in 2019.The Company was recognized as one of the China's Top 50 Real Estate Developers jointly by the China Real Estate Industry Association,Shanghai Yiju Real Estate Research Institution and China Real Estate Appraisal in 2018 and 2019,and one of the China's Top 30 Real Estate Developers in 2020 and Growth Top 10 in 2020 by the China Real Estate Top 10 Research Committee and China Index Academy in 2020.

The Company residential properties can be categorized into three major series,namely,its "Wan" Series (灣系),the "Yuan" Series (園系) and the "Yue" Series (悅系),which target first-time home purchasers,home upgraders and extended families or high-income households,respectively. As of July 31,the total land bank attributable to the Company amounted to approximately 15.09 million sq.m.,and the Company had 117 projects at various stages of development.

This press release is issued by Wonderful Sky Financial Group Limited on behalf of Sinic Holdings (Group) Company Limited.