On August 24, Country Garden released its 2021 interim results report.
In the first half of the year, the company's sales grew steadily, operating performance was satisfactory, and core profit indicators continued to improve.
During the reporting period, Country Garden achieved an equity contract sales amount of approximately 303.09 billion yuan, a year-on-year increase of 14%; the equity contracted sales area was approximately 34.51 million square meters, an increase of 8% year-on-year, sales performance increased steadily, and continued to lead the industry.
The interim report shows that in the first six months of 2021, Country Garden's operating income increased by 27% year-on-year to 234.93 billion yuan; gross profit, net profit, and core net profit attributable to shareholders increased to 46.28 billion yuan, 22.42 billion yuan, and 15.22 billion yuan, respectively.
A number of profit indicators performed well, demonstrating the operating strength of the industry leader.
Under the policy control of the "three red lines" and "two concentrations", industry financing has become tighter, and the hematopoietic function of the enterprise itself is particularly important.
During the reporting period, Country Garden’s equity property sales cash back was approximately 272.79 billion yuan, and the equity sales recovery rate was 90%. It has reached 90% or more for 6 consecutive years, leading the industry.
The sales collection rate remains at a high level, which represents the rapid turnover of funds and reflects the company's strong financial capital management and control capabilities.
It is reported that while sales have grown steadily, Country Garden’s leverage level has continued to remain low and its debt structure has been further optimized.
As of June 30, 2021, the company's total interest-bearing liabilities were 324.24 billion yuan, a further drop from the end of last year.
The company's net debt ratio is as low as 49.7%, which has been below 70% for more than ten consecutive years, which is rare in the industry.
The company's available cash balance reached 186.24 billion yuan, with ample cash flow.
The cash short-term debt ratio is 2.1 times, and short-term debt repayment is worry-free.
In addition, Country Garden once again achieved a positive net operating cash flow in the first half of the year, reflecting to a certain extent the company's financially strong internal control capabilities, fund security and high use efficiency.
With its stable financial situation, excellent operating capabilities and sustainable development expectations, Country Garden has been recognized by the world's top rating agencies.
At present, both Moody's and Fitch have given Country Garden an investment grade credit rating, and Standard & Poor's also upgraded the company's rating outlook to positive in 2020.
The continuous optimization of the financial structure and good credit ratings have made Country Garden favored by investors in the capital market, and its financing costs have continued to fall, with obvious advantages.
During the reporting period, the company's average financing cost was only 5.39%, a decrease of 17 basis points from the end of 2020.
As a blue-chip stock in the Hong Kong stock market, Country Garden has maintained a stable dividend payout year after year and continued to give back to investors. On the 24th, the Board of Directors of Country Garden Group announced the payment of an interim dividend of 20.98 cents per share. The total interim dividend increased by 4.2% year-on-year, accounting for 31% of the company’s total core net profit attributable to shareholders.