Sinic Holdings Announces 2021 Interim Results

Focused on Quality and Delicacy Management

Revenue Gained Nearly 30% Growth and Net Profit Maintained Steady Growth

FINANCIAL HIGHLIGHTS

Total contracted sales and attributable contracted sales for the Period reached RMB58,789.3 million and RMB27,039.6 million respectively,representing a year-on-year increase of approximately 35.0% and 28.4% respectively.

Total revenue increased by approximately 28.9% year-on-year to RMB11,218.9 million for the Period.

Gross profit amounted to RMB2,438.4 million,and the gross profit margin was 21.7%.

Profit for the Period was RMB891.7 million,representing a year-on-year increase of approximately 2.4%.

Net profit margin was 7.9%.

Core profit attributable to the owners of the parent (Note 1) was RMB730.1 million,representing a year-on-year increase of approximately 7.4%.

Cash and bank balances (Note 2) amounted to RMB19,349.5 million as at 30 June 2021,representing an increase of approximately 10.3% as compared with 31 December 2020.

Net gearing ratio decreased by 13.1 percentage points,from 63.6% as at 31 December 2020 to 50.5% as at 30 June 2021.

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 comprise restricted cash,pledged deposits and cash and cash equivalents.

HONG KONG,Aug. 30,2021 -- Sinic Holdings (Group) Company Limited ("Sinic Holdings" or the "Company",and its subsidiaries,the "Group",stock code: 2103.HK) is pleased to announce its unaudited interim results for the six months ended 30 June 2021 (the "Period").

During the Period,the Group recorded revenue of RMB11,218.9 million,representing an increase of approximately 28.9% as compared with RMB8,703.4 million for the corresponding period of last year. Gross profit amounted to RMB 2,representing a decrease of approximately 7.3% as compared with RMB2,629.9 million for the corresponding period of last year. Profit for the Period was RMB891.7 million,representing an increase of approximately 2.4% as compared with RMB871.0 million for the corresponding period of last year. Core profit attributable to the owners of the parent was RMB 730.1 million,representing an increase of 7.4% as compared with RMB679.6 million for the corresponding period of last year. The Group's basic earnings per share for the Period was RMB0.21 per share.

In terms of contracted sales,for the Period,the Group's total contracted sales and attributable contracted sales were RMB58,representing a year-on-year increase of 35.0% and 28.4% compared with RMB43,544.4 million and RMB21,061.1 million for the same period last year. The slowdown in growth was mainly attributable to the slow recovery of domestic real estate industry during this period after the impact of COVID-19 epidemic in 2020. The attributable contracted sales took place in four major regions across China,with approximately 26.7% in Jiangxi Province,approximately 12.9% in the Greater Bay Region,approximately 37.2% in the Yangtze River Delta region,and approximately 23.2% in core cities in Central and Western China and other regions with high growth potential.

In terms of land reserve,the Group attaches importance to the diversified geographical distribution of its land reserve in first- and second-tier cities and the acquisition of high-quality land reserve. As at 30 June 2021,the total attributable land reserve amounted to 14.4 million sq.m.. In terms of regions,the headquarter in Jiangxi Province accounted for 33.6%,the Yangtze River Delta region accounted for 21.5%,the Great Bay area accounted for 29.5%,and the core cities in Central and Western China accounted for 15.4%. Such distribution and amount of land reserve show that the Group not only possesses tremendous high-quality land reserve,but is also determined to promote nationwide development through greatly increasing its land reserve in the Greater Bay Region and in core cities in the Yangtze River Economic Belt where the Group has expanded its business. The Guangdong-Hong Kong-Macao Greater Bay Region benefits from the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Region as well as the policy of pioneering demonstration zone for socialism with Chinese characteristics,and core cities in the Yangtze River Economic Belt are the most active core regions in China's economy. These positive factors will help the Group to grow faster.

For the Period,the land reserve newly acquired by the Group was all located in cities in the four major regions. During the Period,the Group acquired a total of 5 parcels of high quality land through public auctions,mergers and acquisitions as well as joint ventures and associates,including 2 parcels in Jiangxi Province and 3 parcels in the Yangtze River Delta region. The Group focused on acquiring land plots in the Yangtze River Delta region,resulting in a more balanced distribution of the Group's land reserve among the four major regions at the end of the Period. The total planned GFA of land parcels acquired during the Period was approximately 1.0 million sq.m.,of which approximately 0.5 million sq.m. of planned GFA was attributable to the Group. The total attributable consideration of land parcels acquired during the Period was approximately RMB2,182.1 million. The average land cost for land parcels acquired during the Period was approximately RMB4,255.8 per sq.m..

The Group has sufficient capital liquidity.As at 30 June 2021,the Group's cash and bank balances amounted to RMB19,349.5 million (31 December 2020: RMB17,535.1 million). Excluding other restricted cash and pledged deposits,the cash and cash equivalents amounted to RMB14,037.0 million. As at 30 June 2021,the Group's net gearing ratio was 50.5%,above the average level in the industry; the cash short-term debt ratio improved to approximately 1.4 times,the assets to liabilities ratio after excluding receipts is around 73.5%. The Group's weighted average cost of indebtedness as at the end of the period decreased to 8.7%.

The Group has actively optimized and broadened its financing channels,and further expanded and deepened its cooperation with existing banking partners. In the first half of 2021,it entered the whitelist of China Guangfa Bank,and obtained new credit lines offered by several banks,including ICBC,China Everbright bank,etc. During the Period,the Group obtained credit lines of approximately RMB95,200 million from a number of financial institutions,with approximately 73.7% being unutilized as at 30 June 2021. The Group has adopted multi-channel financing methods,with existing asset-backed securities of RMB813.7 million at a maximum interest rate of 7.0%. The Group successfully issued two series of bonds,including:

In January 2021,the Company completed the issuance of green bonds in the principal amount of US$250 million bearing interest at a rate of 8.5% per annum and due on 24 January 2022.

In March 2021,Sinic Real Estate Group Co.,Ltd a subsidiary of the Group,completed the issuance of its 3-year corporate bonds in the principal amount of RMB255 million bearing interest at a rate of 7.0% per annum.

In the future,the Group will continue to actively optimize and broaden financing channels,adjust the financing structure and reduce financing costs to achieve long-term and stable development.

Looking forward to the second half of the year,Mr. ZHANG Yuanlin,Chairman and Executive Director of Sinic Holdings (Group) Company Limitedsaid: "Facing the new development situation,Sinic Holdings,as a large-scale real estate developer in China,will seize the opportunity,persist in adopting the operational strategies of planting roots in the citiesand high turnover,unlock the value of all of the Group's businesses and serve to reinforce its marketleadership. In respect of the regional layout,the Group will continue to focus mainly on first- andsecond-tier cities,with third-tier cities as its secondary target. The Company will put more effort in itsbusiness expansion in the Yangtze River Delta region and the Greater Bay Region,while making fulluse of the advantages in its Jiangxi headquarters,and will plan its business layout in regions with highgrowth potential in core cities in Central and Western China,thus forming a definite strategic layout inthe four major regions. With respect to land acquisition policies,the Group will continue to study andjudge the market on the premise of ensuring the continuous optimization of the capital structure,theGroup will ensure the profitability of individual projects,control land prices,increase profits,monitorthe scope of land acquisition and achieve quick turnover; it will also encourage cooperation andappropriately diversify cooperation methods,and promote the landing of more high-quality cooperationprojects. With respect to sales,the Group will continue to upgrade its marketing and service system andactively speed up the sale process. With sufficient supply of saleable value and balanced region layout,the Group is confident to achieve the contracted sale target of the whole year. With respect of financialmanagement,the Group will continuously strengthen its cash flow management,enhance cashcollection and actively expand financing channels and optimize debt structure to maintain a stable andhealthy financial situation. In terms of product enhancement,through the transcendental qualityempowered by three major assertions: security,care for customers of all ages,and fineness anddelicacy,Sinic Holdings will continue to upgrade living experience. Meanwhile,aiming at the full servicecycle from home purchasing to living,Sinic Holdings strives to upgrade and create an industry leadingcustomer service system.

With respect of the new journey,the Group will gather a brand-new momentum,driven by quality andwith continuous focus on high-quality development,assume corporate social responsibility bydelivering love to the public,thereby letting the capital market and customers to have full confidencein the Company's future development. With the unique attitude of a craftsman,Sinic Holdings willalways be able to find its own right path and will forge ahead in the rapidly changing real estateindustry."

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 over 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 35th,32nd,and 34st in terms of sales amount (full scale) among real estate development enterprises of China in 2020.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 Center 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.

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