On August 25, Country Garden (02007.HK) announced its interim results for the 
six months ended 30 June 2020.

Steady performance bolstered by consecutive monthly sales growth

Photo - https://photos.prnasia.com/prnh/20200827/2901195-1 

During the first half (1H) of 2020, Country Garden achieved contracted sales 
attributable to shareholders of approximately RMB266.95 billion (approx. 
US$38.68 billion [1]), representing a gross floor area (GFA) of about 31.85 
million square meters. According to the 1H sales ranking released by property 
research consultancy CRIC, Country Garden continued to hold the top position 
among major Chinese property developers with contracted sales of RMB372.31 
billion (US$53.95 billion)

The Company's contracted sales attributable to shareholders had increased 
year-on-year for five consecutive months since March. In July, the figure stood 
at RMB54.28 billion (US$7.87 billion), up 27.52% from a year earlier. 

During the reporting period, Country Garden recorded total revenue of RMB184.96 
billion (US$26.80 billion), gross profit of approximately RMB44.89 billion 
(approx. US$6.50 billion), net profit of approximately RMB21.93 billion 
(approx. US$3.18 billion) and core net profit attributable to shareholders of 
approximately RMB14.61 billion (approx. US$2.12 billion), which stands out 
among key players of the industry. 

Sufficient cash reserves and working capital 

Country Garden has continued to strengthen the assessment of its cash 
collection targets while further standardizing cash collection management 
procedures. During the first half of 2020, cash collected from attributable 
contracted sales was approximately RMB250.93 billion (approx. US$36.36 
billion), while the cash collection ratio reached 94%. This ratio has remained 
above 90% for five consecutive years. 

The Company has sufficient cash reserves and working capital. As of June 30, 
2020, available cash totaled RMB205.52 billion (US$29.78 billion), while unused 
credit lines from banks reached RMB328.81 billion (US$47.64 billion). 

Continued reduction in total debt in tandem with a stable financial outlook

Total debt and financing costs continued to fall. As of June 30, 2020, the 
Company's total debt including interest decreased to RMB342.04 billion 
(US$49.56billion), down 7.5% compared to the end of 2019. Weighted average 
borrowing cost shrank to 5.85%, down 49 basic points compared to the end of 
2019, reflecting investors' confidence in the credit standing and solvency of 
the Company. 

During the reporting period, Country Garden has continued to enhance efficiency 
and cut costs. The company's marketing and administrative expenses decreased by 
27.9% over the prior-year period. 

The board of directors declared an interim dividend of RMB20.55 cents per 
share. Total interim dividends accounted for 31% of the core net profit. The 
Company had been paying attractive dividends for many years to reward its 
shareholders. 

[1] Figures stated in USD are based on USD1 to RMB6.9013
 
SOURCE  Country Garden Holdings

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