| (RMB million) || For the year ended December 31 || || |
| || 2021 || 2020 || Change (%) |
| Revenue || 11,254 || 10,588 || +6.3% |
| Gross Profit || 2,699 || 2,695 || +0.1% |
| Net Profit || 1,026 || 949 || +8.0% |
| Net Profit Attributable to Owners of the Company || 726 || 715 || +1.5% |
HONG KONG SAR - Media OutReach - 30 March 2022 - Chinese property developer ─ Datang Group Holdings Limited ("Datang" or the "Company"; together with the subsidiaries, the "Group"; HKEx stock code: 2117) is pleased to announce today the audited annual results of the Group for the year ended 31 December 2021 (the "year").
In 2021, under the circumstances of the intertwined influence of century-old changes and the pandemic of the century, real estate developers in China have faced unprecedented challenges. Under the new situation and new challenges, the Group can only adhere to the original intention, return to the essence of the enterprise, pay attention to the quality of operation, and create value by putting customers as the center. During the year under review, the Group achieved stable growth in results. Revenue increased by 6.3% year-on-year to RMB 11.25 billion due to the increase in delivery of projects during the year; gross profit was RMB 2,699 million. Net profit amounted to RMB 1,026 million with a year-on-year growth of 8.0%; net profit attributable to owners of the Company slightly increased to approximately RMB 726 million as compared with that of 2020. Basic earnings per share were RMB 0.53. The Board of Directors does not recommend the payment of final dividend for the year ended 31 December 2021.
In 2021, the Group followed the geographical layout of 3+X, continued to focus on existing areas, consolidated the two urban agglomerations of the Western Taiwan Strait Economic Zone and Beibu Gulf Economic Zone, and established a relatively stable economies of scale. Meanwhile, the Group seized the opportunity of relocating the headquarters to Shanghai, and adopted various methods to expand into new cities including Guangzhou, Nanjing and Nanchang to further improve its regional layout in the Yangtze River Delta as well as the national layout. At the same time, the Group implemented a precise marketing strategy, and strengthened the integration of online and offline marketing methods. The Group also accelerated the pace of development and achieved rapid growth in contracted sales during the year, with contracted sales reaching a new high. For the year ended 31 December 2021, the Group's contracted sales (including the contributions from projects of joint ventures and associates) amounted to approximately RMB50.58 billion. The average contracted selling price was approximately RMB10,255 per sq.m.
In response to the changes in the way of centralized land supply in key cities during the year, on the one hand, the Group actively studied the changes to the centralized land supply policy and its impacts; on the other hand, it also adhered to the investment standard of giving priority to cash flow indicators to efficiently replenish land reserves. During the year, the Group adopted land acquisition methods such as public bidding, auction and listing, and by forming joint ventures, to obtain a total of 24 pieces high-quality land parcels with a total planned gross floor area ("GFA") of 6.08 million sq.m., successfully entering into the Yangtze River Delta region and Chengdu-Chongqing region and newly penetrated into three new cities, which further optimized the landbank distribution. As of 31 December 2021, the Group had a total of 146 real estate projects at different development stages in six major city clusters, with a total land bank of construction area of approximately 23.71 million sq.m., prepared for the Group's sustainable and stable development in the coming year.
Besides property development business, the Group has businesses in investment and operation of commercial properties and hotel operation, thus diversifying the Group's businesses. For the year ended 31 December 2021, the Group achieved a rental income of approximately RMB 91.10 million, representing an increase of 61.5% compared to 2020. The increase was mainly attributable to the additional rent from commercial space of Nanning Dynasty Tiancheng Phases I & II. The Group has eight commercial properties projects mainly located in Xiamen, Fujian province and Nanning, Guangxi province respectively. For the year ended 31 December 2021, the Group also achieved revenue from hotel operation of approximately RMB54.50 million, representing an increase of 14.0% compared to last year. The increase was mainly attributable to the improved performance of Xiamen Dynasty Ginlan Jia Hotel and Nanning Dynasty Congyue Hotel. Currently, the Group has two hotels in operation, namely Xiamen Dynasty Ginlan Jia Hotel and Nanning Dynasty Congyue Hotel.
While the performance has grown steadily in 2021, the Group continued to strengthen the cash collection from sales and the management of operating cash flow, the coordination capability of domestic and overseas funds, and improve the efficiency of capital utilization. The Group has maintained at least two fulfillments of the "Three Red Lines", and made full use of domestic and overseas diversified financing channels. The Group continued to optimize the liability structure and well-prepared for dynamic risk warning and prevention. As at 31 December 2021, the net gearing ratio was 51.6%, and the cash to short-term debts ratio was 1.13 times, maintaining at a stable level. The Group had sufficient cash of approximately RMB5.51 billion, showing sufficient liquidity in a healthy financial position.
Looking ahead to 2022, Mr. Wu Di, Chairman of the Group concluded, "The Group will follow closely on the '14th Five-Year Plan' development strategy of China and continue to firmly implement the strategy of deploying urban agglomerations and cultivating metropolitan areas. The Group will grasp the trending opportunities in the new era of China's real estate development and strive to open-up broader development room so as to further consolidate its industry and market positions and realize sustained and steady business growth. As housing demand for essential and improved housings will dominate the overall market, the Group anticipates that the Chinese government would continue to increase land supply and optimize the centralized land supply mechanism, which would lead to the overall performance of the land market becoming more rational and guide real estate enterprises into a development era of quality competition. Meanwhile, the Group will maintain good corporate governance, continuously improve comprehensive management capabilities, and enhance the construction of self-owned sales channels, ensuring that we achieve the annual sales target. Moreover, the Group will actively seek for promoting the Company to achieve steady development through introduction of strategic investors and platform resources, etc. in order to build a high-quality listed company with sustainable growth capabilities and to achieve a win-win situation for customers, employees, society, and shareholders."
About Datang Group Holdings Limited
Datang Group Holdings Limited is a property developer in China focused on the development of residential and commercial properties in selected economic regions. Headquartered in Shanghai, the Group has expanded its business into major regions in China, including Western Taiwan Strait Economic Zone , Beibu Gulf Economic Zone, Yangtze River Delta Region, Chengdu-Chongqing Region and neighboring cities, etc. As of 31 December 2021, the Group has 146 major projects in various stages of development in major cities of The People’s Republic of China (“PRC”) and was ranked 67th among the Top 200 Real Estate Property Developers in PRC in 2021 in terms of contracted sales by CRIC, a real estate research institute in PRC. The Group’s shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on 11 December 2020 and were included in the MSCI China Small Cap Index on 27 May 2021.
The issuer is solely responsible for the content of this announcement.