FOSHAN: Country Garden Holdings Company Ltd, China’s biggest property developer by sales, targets a 10% sales growth in the next three years. Despite the adverse impact of the Covid-19 epidemic, the company expressed much satisfaction with its results due to a well-balanced portfolio and sound capital management.
For the year ended Dec 31, 2020, the organisation achieved contracted sales attributable to approximately RMB570.7bil (RM360.3bil) with contracted sales gross floor area (GFA) attributable to the shareholders of the company of about 724.7 million sq ft.
The group recorded total revenue of RMB462.9bil (RM292.2bil) and a net profit of approximately RMB54.1bil (RM34.2bil) for the full year. As of Dec 31, 2020, the group’s total debt had decreased by 11.7% to approximately RMB326.5bil (RM206.1bil) from RMB369.6bil (RM233.3bil) a year earlier.
Its net gearing ratio stood at 55.6%, lower than the redline of 70% for several consecutive years. During the reporting period, the company had good working capital capability, with an available cash balance reaching 183.6bil yuan (RM115.9bil), in tandem with a cash and short-term debt ratio of 1:9.
As of Dec 2021, the total number of projects contracted or already removed from the market due to being fully sold out in mainland China reached 2,958, having gained footholds in 289 cities and 1,350 townships across 31 provinces, autonomous regions and self-governing municipalities. The firm continues to top the industry in terms of the breadth of its portfolio.
Country Garden still has properties in mainland China estimated to be worth 2.25 trillion yuan (RM1.42 trillion). In 2020, Country Garden acquired 511 parcels of land for a total attributable cost of RMB210bil (RM132.6bil), with 65% of the land located in third-tier and fourth-tier cities. More than 90% of the projects approved for sale during the reporting period achieved annual returns on investment exceeding 30%.