COUNTRY GARDEN HOLDINGS COMPANY LIMITED (6 January 2016 - Hong Kong) Country Garden Holdings Company Limited (the "Company", SEHK stock code: 2007, or "Country Garden" or the "Group" together with its subsidiaries), the largest urbanization specialist developer in China, announces that the Group, together with its joint ventures and associates, has achieved contracted sales of approximately RMB140.2 billion with contracted GFA of approximately 21.53 million sq.m. in 2015, representing a year-on-year increase of 9% and 12% respectively. In particular, the Group seized the opportunity and strived to promote sales during the second half of the year. During such period, the Group realized contracted sales of approximately RMB85.6 billion, representing a surge of approximately RMB31.0 billion and 57% growth compared to the first half of the year. The 2015 contracted sales exceeded the Group's full-year target and hit a record high. This is the third consecutive year for Country Garden to generate over RMB100 billion in contracted sales and the seventh consecutive year of beating its full-year contracted sales target.
The solid growth is attributable to the Group's precise judgement of market opportunities, as well as the product advantages from its premium land reserve and differentiation strategy. In addition, the Group attaches great importance to operating cash flow management. Cash generated from property sales for the year amounted to approximately RMB117.0 billion, marking its second time to have generated over RMB100 billion since 2014 with a steady increase in the amount.
As urbanization continues to deepen, with favorable policies step-up and financing environment, Country Garden actively adapted to the market consolidation trend, enhanced land acquisition to build momentum for future growth. In 2015, the Group acquired lands with an estimated GFA of
38.21 million sq.m. for a total consideration of RMB55.9 billion (including minority interests). The newly-acquired lands cover China with cities at different stages of development, which is in line with the trend of urbanization with strong market demand, providing a vast amount of quality saleable resources in 2016 and allowing the Group to persistently improve performance in the year of 2016
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The Group strives to optimize its shareholding structure, broaden financing channels and reduce financing costs on the basis of ensuring stable operation. In 2015, the Group successfully introduced Ping An China as its strategic investor and raised proceeds of approximately HK$6.3 billion. In February 2015, the Group issued US$900 million senior notes which carried a coupon rate of 7.5% and were due in 2020. On 31 July 2015, the Group has taken out a syndicated loan of an amount equivalent to US$800 million, which was further raised to US$975 million in December, with an annual interest rate of HIBOR / LIBOR +3.1%. In August 2015, Zengcheng Country Garden Property Development Co. Ltd. ("Zengcheng Country Garden"), the Company's domestic wholly-owned subsidiary, issued two tranches of domestic corporate bonds amounting to RMB6 billion with a coupon rate of 4.2%. In November 2015 and December 2015, Zengcheng Country Garden issued two tranches of non-public domestic corporate bonds amounting to RMB8 billion with the coupon rate of 4.95% and 5.1%, respectively. On 29 December 2015, the Company completed the issue of the first tranche of non-public corporate bonds amounting to RMB1 billion with a coupon rate of 4.99%. On 30 December 2015, the Group successfully priced its first tranche of Malaysian Ringgit 115 million worth of bond with a coupon rate of 6%, which is the first of its kind issued in Malaysia by a Hong Kong-listed mainland property company. Such financing arrangement has fully demonstrated the Group's capabilities of resources allocation and financial innovation in both domestic and overseas capital markets as well as the Group's determination on lowering its financing costs.
Country Garden has been striving to enhance its competitiveness with the aim of achieving stable growth even in a volatile market. In order to adapt to the new development trends, the management of the Group has introduced a partnership scheme, which aligns the interests of the professional managers with those of the Group and the shareholders. The scheme has been showing satisfactory progress since its introduction in October 2014. As of the end of 2015, the scheme had been introduced to 168 projects, among which 73 projects are on sale, accounting for contracted sales of RMB33.8 billion. The scheme has significantly contributed to the growth of the Group's results and has laid a sound foundation for future results.
Looking forward in 2016, with the deepening of urbanization, further consolidation of the real estate market, as well as continuous improvement in Country Garden's operational standards, new opportunities have emerged with the Group's expectation for consistent growth in the future. The Group will actively capitalize on the opportunities, overcome obstacles and create greater values for investors to live up to expectations from the capital market.
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Country Garden is one of China's leading integrated property developers. It has standardized operations with business comprising property development construction, installation, fitting, property management, property investment, as well as hotel development and management. In addition, "Country Garden" has been named by the PRC State Administration for Industry and Commerce as "China's Well-Known Trademarks" in the property sector in 2006. The Group became a constituent stock of MSCI Global Standard Indices on 1 September 2007. It also became a constituent stock of Hang Seng Composite Index 200 and Hang Seng Mainland Composite Index on 10 September 2007.
This press release contains forward-looking statements. These forward-looking statements are based on current expectations. These statements are not guarantees of future events or results. Future events and results involve some risks, uncertainties and assumptions that are difficult to predict. Actual events and results could vary materially from the description contained herein due to many factors including changes in the business and financial condition of the Company and its subsidiaries, changes in the condition of the PRC economy and property market, and changes in the capital markets in general.
For further information, please contact:
Callis Lau/ Maggie Chui/ Natalie Tang
Tel: (852) 2136 6952/ 2136 8059/ 3920 7640
Fax: (852) 3170 6606
Email: cg@iprogilvy.com
Country Garden Holdings Company Limited issued this content on 2016-01-06 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-06 11:15:09 UTC
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