Developer CIFI Achieved Record Growth and Revenues in 2013

CIFI Holdings (Group) Co., Ltd., one of the 100 biggest real estate developers in China announced today that it had achieved contracted sales of RMB15.32 billion in 2013, representing a significant increase of 60.5 percent over the RMB9.54 billion it recorded the previous year.

The company also brought in revenue of RMB11.9 billion, representing an increase of 46.2 percent over the RMB8,14 billion recorded in the previous year.

Outperforming Stated Contracted Sales Targets

According to a statement released by CIFI, the Group’s core net profit attributable to equity owners also increased by 65.0 percent to RMB1,518.8 million in 2013 from RMB920.6 million in 2012.

The Board recommended payment of a final dividend of HK7 cents per share for the year ended 31 December 2013 (HK4 cents per share for the year ended 31 December 2012), representing a dividend payout ratio of approximately 21.9 percent on the core net profit attributable to equity owners.

Improved Profit Margins

Benefitting from a higher proportion of recognised revenue from sales of office projects, better profit margins from new projects, and lower interest costs as a proportion of sales, the Group’s gross profit margin and core net profit margin were 25.8 percent and 12.8 percent, respectively, in 2013, The profit margin figures were improvements respectively over the 23.7 percent and 11.3 percent margins achieved in 2012.

The Group delivered a core return on average equity of 20.0 percent in 2013, surpassing the 18.8 percent achieved in 2012.

Balance Sheet Moves

In recent months CIFI has been aggressively adding cash to its balance sheet to finance further expansion.

In October, Hong Kong-based private equity firm RRJ Capital agreed to buy 257 million newly issued CIFI shares at HK$1.52 per share. Also, in January this year the developer announced that it had issued its third tranche of five-year USD bonds with a coupon rate of 8.875 percent.

As at 31 December 2013, the Group’s net debt-to-equity ratio was 67.6 percent at the end of 2012.