HONG KONG, Aug. 26, 2021 /PRNewswire/ —
Summary of 2020/21 Annual Results
- Admist unprecedented challenges brought about by the COVID-19 pandemic, the Group recorded a good increase in profit attributable to shareholders.
- Increase in underlying profit attributable to shareholders of 126% to HK$10.3 billion for the financial year.
- Revenue increased by 317% to HK$24.5 billion from HK$5.8 billion last year, bolstered by property sales growth.
- Final (HK41 cents) and special (HK28 cents) dividends per share. Together with interim dividend paid, the total amount of dividend for the financial year is HK83 cents per share, representing an increase of 51%.
- Strong and healthy balance sheet with net cash of HK$38.8 billion as of 30 June 2021.
- With a strong financial position and sustainable business growth strategy, the Group is well placed to meet the challenging economic environment and to grasp opportunities.
Business Highlights
Sino Land Company Limited (Stock Code: 83) today announced its annual results for the year ended 30 June 2021 (“Financial Year”). Despite the challenges brought about by the COVID-19 pandemic, the Group recorded a good increase in its underlying profit attributable to shareholders of 126.3% to HK$10,315.8 million for the Financial Year. Underlying earnings per share increased to HK$1.42, compared with HK$0.65 in the previous financial year of 2019/2020.
After taking into account the non-cash item of revaluation loss (net of deferred taxation) on investment properties of HK$642.8 million, the Group reported a net profit attributable to shareholders of HK$9,646.0 million for the Financial Year, 471.4 % higher than that in 2019/2020. Earnings per share for the Financial Year was HK$1.33, compared with HK$0.24 in 2019/2020.
Final and special dividends
The Board recommended a final dividend of HK41 cents per share, unchanged from last year. In addition, in view of the good increase in profit for the financial year, the Board recommended a special dividend of HK28 cents per share to shareholders. Together with interim dividend of HK14 cents per share paid, the dividend for the full year is HK83 cents per share.
The Group’s balance sheet has remained strong and healthy. As of 30 June 2021, the Group had net cash of HK$38,883.2 million, an increase of HK$469.3 million compared to a year ago. With the strong financial position, the group is well placed to meet the challenging economic environment and to grasp opportunities.
Property sales fueled by rich pipeline of projects
Benefitting from the booking of new completion projects, as well as with an improved profit margin of 52.5% as compared to 35.2% last year, the Group’s property sales (including attributable share of associates and joint venture) for the Financial Year grew 759.9% year on year to HK$20,403.3 million. The increase in property sales at subsidiary level was mainly due to the booking of the sales of residential units in Grand Central in Kwun Tong. The sales of residential units in other projects completed during the Financial Year, namely Madison Park in Cheung Sha Wan, 133 Portofino in Sai Kung, and Dynasty Park Phase III in Zhangzhou, China, also contributed to the sales growth.
The Group launched four new projects for sale during the Financial Year, including St. George’s Mansions in Ho Man Tin, Silversands in Ma On Shan, Grand Victoria in South West Kowloon and ONE SOHO in Mong Kok. Sales have been good with total attributable contracted sales (including sales of remaining stocks of residential units and car parking spaces in completed projects) of over HK$13.5 billion not yet recognised.
For the financial year 2021/2022, the Group has an exciting sales pipeline of new upcoming launches, including a residential project on Peel Street in Central and three other residential projects atop MTR stations across the city, namely La Marina in The Southside, Wong Chuk Hang, Kam Sheung Road Station Package One Development and LOHAS Park Package Eleven Development.
The Group has also secured the development right of LOHAS Park Package Thirteen, the largest project atop LOHAS Park Station. Located on the scenic Tseung Kwan O waterfront, the project will yield a total of over 1.5 million sq.ft. of residential plot ratio area in approximately 2,550 units.
Growing investment properties portfolio to providing a steady stream of recurrent rental income
Due to the impact of the COVID-19 over the entire Financial Year, the Group’s gross rental revenue (including attributable share from associates and joint venture and excluding minority interest) on a full year basis decreased by 9.8% over the previous year to HK$3,664.6 million, mainly due to a decrease in occupancy rate, negative rental reversion rate and rental relief granted to selected tenants. The Group, however, saw a narrowed decline of 6.8% in its gross rental revenue in the second half of the Financial Year, compared with a decline of 12.5% in the first half.
China accounted for 7.5% of the Group’s gross rental revenue, and reported an increase of 4.6% for the full Financial Year.
The Group’s diversified and balanced portfolio of investment properties is providing a steady stream of recurrent rental income. The Group will be adding approximately 1.5 million sq.ft. in attributable space to its investment properties portfolio over the next three years, providing approximately 12% increase in terms of space, that should help fuel the growth of its recurrent rental income.
Sustainability integrated into every aspect of operations
The Group is committed to ‘Creating Better Lifescapes’, and strives to integrate sustainability into every aspect of its operations through three interconnected areas, namely Green Living, Innovative Design and Community Spirit. The Group announced its Sustainability Vision 2030 further highlighted commitments to reducing carbon emissions and single-use plastics, adopting renewable energy, and redefining our property developments to focus on green living and wellness.
In 2020, the Group was made a constituent member of the Hang Seng ESG 50 Index, and for the second consecutive year, it has been among the top ten of the Hong Kong and Greater Bay Area Business Sustainability Indexes in 2021.
Positive outlook supported by sustainable business growth strategy
While uncertainty remains about the duration of the pandemic and the effect it will have on the economies, the Group has a sustainable business growth strategy supported by:
- A sizable quality land bank adequate for the next 5 years.
- Over HK$13.5 billion of total attributable contracted sales yet to be recognised, with approximately HK$9 billion for recognition in FY2021/2022.
- A rich sales pipeline.
- Diversified and growing investment properties portfolio providing steady recurrent income.
- Committed to Sustainability and to promote positivity in the community as we grow with it.
- Strong financial position with net cash of HK$38.8 billion.
“Supported by a solid rebound in the economy of Mainland China, Hong Kong’s economy is recovering and gathering pace. Despite the volatile local epidemic situation and the corresponding economic disruption, the residential market in Hong Kong remains resilient and fundamentally sound,” said Mr. Robert Ng Chee Siong, Chairman of Sino Land.
“This year marks the 50th anniversary of the founding of the Sino Group in Hong Kong. Our strong commitment to the city and Mainland China remains robust and we are committed to promote positivity in the community as we grow with it. With our strong financial position and sustainable business growth strategy, the Group is well placed to meet the challenging economic environment and to grasp opportunities,” he concluded.