(Hong Kong, 17 March 2011) Sino-Ocean Land Holdings Limited ( Sino-Ocean Land or the Company , HKSE stock code: 3377) today announced audited annual results of the Company and its subsidiaries (collectively referred to as the Group ) for the twelve months ended 31 December 2010 ( Review Period ).
During the Review Period, the Group s revenue substantially grew by 55% year-on-year to RMB13.7 billion. Profit attributable to equity holders of the Company soared 54% year-on-year to RMB2.44 billion. Basic earnings per share were RMB39.8 cents, up 18% from the preceding year. The Board of Directors proposed paying a final dividend of HK8 cents per share. Together with the interim dividend of HK5 cents per share, total dividend for the year was HK13 cents per share. Payout ratio for the year was 26%. The Company s dividend policy is to maintain the payout ratio at not less than 20%.
The Board also recommended offering to shareholders the right to elect the Scrip Dividend Scheme as an alternative, to receive the 2010 final dividend wholly or partly by allotment of new shares credited as fully paid up in lieu of cash.
Contracted sales jumped 51%
Although China s property market is faced with various challenges, still the Group has achieved record contracted sales every year. Its contracted sales for 2010 increased 51% year-on-year to RMB21.6 billion, overshooting its target sales for the year by approximately 20%. Since its listing in 2007, the Group has seen its contracted sales increase at an annual compound growth rate of about 52%.
Solid financial strength
As at 31 December 2010, the Group possessed cash resources of approximately RMB15 billion, which RMB1.1 billion was restricted. Net gearing ratio reached 46% and stayed at the market level, while unutilized credit facilities amounted to RMB31.9 billion. Moreover, contracted sales amount of approximately RMB20.4billion has been locked-in for booking in 2011 and 2012. The Group s strong financial position and abundant cash resources ensure steady business expansion amid the challenging environment.
Effective expansion strategy in second and third-tier cities
Sino-Ocean Land has commenced sales in second and third-tier cities in China since two or three years ago. During the Review Period, operating performance in these cities was very encouraging. For instance, the Company enjoyed the second largest market share in Dalian, sales of its flagship projects ranked top in Shenyang and Zhongshang, while sales of its flagship project in Tianjin ranked third.
Mr. LI Ming, Chief Executive Officer of Sino-Ocean Land, commented, We are very pleased to see that the Group has realized outstanding performance in these cities within a span of only two to three years. This not only enhances our confidence in business expansion in coastal cities as well as cities along the Yangtze River, but also places us in a better position to capture business opportunities arising from the accelerating urbanization process.
In 2011, we will closely watch the peripheral areas of first-tier cities and second tier cities that are not over-heated. We will step up efforts to develop projects in cities with higher per-capita GDP and third and fourth tier cities well equipped with amenities.
Launching self-use properties in response to government policies
Mr. LI Ming added, We strongly support the government s austerity measures and believe that they will help China s property market sustain healthy growth in the long run. Our projects are aimed at addressing the owner-users housing needs. About 70% of purchasers of our projects who used mortgage loans were first-time home buyers acquiring the properties for self-use.
Looking ahead into 2011, we will speed up the development of our projects and launch them in the market as early as practicable. Moreover, we will dedicate ourselves to further enhancing the quality of our products, aiming at delivering value-for-money products to a wider range of customers in response to the government s efforts to promote healthy development of the housing market.
Actively improve landbank structure
As at 31 December 2010, the Group s land bank reached approximately21mn sq.m. and land bank with attributable interest amounted to 19mn sq.m. It has established presence in 16 rapidly developing cities, with about 79% of its projects located in Beijing and the Pan-Bohai Rim area, about 6% in the Yangtze River Delta, about 7% along the Yangtze River and about 7% in the Pearl River Delta. All of them are situated at either prime locations or transportation hubs. The Group s land bank can meet its development needs in the next 6-8 years.
The Group adhered to the development strategy of expanding business in coastal areas and along the Yangtze River. In 2010, approximately 7.95mn sq.m. was added to the land bank. About 80% of new land acquired from the government was bought at base price. Looking ahead into 2011, the Group will continue to look for suitable opportunities for business expansion prudently. It will boost its land bank at reasonable prices to meet future business requirements.
As regards commercial property business, the Group holds five investment properties with a gross leasable area of 237,000 sq.m. primarily in grade A office buildings. There is close to 3 million sq.m. of commercial land under development. The Group plans to boost its investment property portfolio and the revenue contribution from this business, with the intention of generating reliable and constant income and cash flow.
About Sino-Ocean Land (stock code: 3377)
We are one of the leading property developers in Beijing and the Pan Bohai area and actively implementing our national strategic plan with a coastal and viparian focus. We focus on developing mid-to-high end residential properties, premium office premises, serviced apartments and hotels. We have over 48 development projects in various stages of development in high-growth cities across the country, including Bejing, Tianjin, Dalian, Shenyang, Qingdao, Qinhuangdao and Changchun in the Pan Bohai Rim Area, Shanghai and Hangzhou of the Yangtze River Delta, Zhongshan of the Pearl River Delta, Wuhan, Chongqing and Chengdu along Yangtze River and several tourist spot cities including Huangshan and Hainan.
On the back of its dedication to high-quality products and professional services, Sino-Ocean Land has built up a strong brand in Bejing, Pan Bohai Rim and Pearl River Delta regions. As of 31 December 2010 total land bank was about 20 million sqm and about 79% of the land bank is located in Beijing and the Pan Bohai Rim.
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