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Tianbao Group Announces 2019 Annual Results Profit for the year rose 193.6% to RMB317,710,000
Adheres to the Pioneering Strategy of “Building first, Real estate keeps up”, Give full play to the synergy of real estate development business and construction contracting business

(Hong Kong, 24 March) A renowned property developer and construction company based in Zhuozhou, a city in Hebei Province, China - China Tianbao Group Development Company Limited (“Tianbao Group” or the “Company”, together with its subsidiaries, the “Group”, stock code: 1427.HK), today announced its annual results for the year ended 31 December 2019 (‘for the year under review’). This is also the first performance report announced by the group after its listing.

In 2019, the performance of the Tianbao Group increased rapidly, with total revenue increasing by 66.1% to RMB 2,660,037,000. Gross profit rose by 259.3% to RMB682,420,000, and gross profit margin rose to 25.7% (2018: 11.9%). Profit for the year rose 193.6% to RMB317,710,000, and net profit margin was 12.0% (2018: 6.8%). The net gearing ratio was 41.4% in 2018. As of December 31, 2019, the group's net gearing ratio was 31%, which was significantly lower than the industry average. Basic and diluted earnings per share were RMB2.2. The Board of Directors does not recommend the payment of a final dividend for the year ended December 31, 2019.

During the year under review, the total contract revenue of construction contracting customers increased from RMB 1,201,480,000 to RMB 1,365,498,000 in 2018; the total revenue of real estate development and other customer contracts increased from RMB 391,709,000 to 2018, to RMB 1,284,671,000.

Mr. Li Baotian, Chairman of the Board, Executive Director and Chief Executive Officer of China Tianbao said, “In 2019, the main tone of policy regulation in the real estate market was established as "adhering to the residential properties of housing". Local governments implement the urban main responsibility and continue to optimize policies in accordance with the actual market conditions to promote the stable and healthy development of the real estate market. In the context of strict regulation of the property market, facing the ever-changing market environment and increasingly fierce competition in the industry, the Group adheres to the pioneering strategy of “building first, real estate keeps up”, and continuously improves the synergy between the real estate development business and the construction contracting business, enabling the Group to launch a diverse project portfolio Improve the business structure.”

As of December 31, 2019, the Group has a diversified portfolio of 19 real estate projects, including 17 residential properties, an investment property and a hotel, all of which are owned and developed by the Group. 6 of these projects are in Zhuozhou, and the remaining 13 projects are in Zhangjiakou. 8 are completed projects, 5 are projects under construction, and 6 are held for future development.

As of December 31, 2019, the Group had land reserves with a total gross floor area (“GFA”) of approximately 1,606,812.8 square meters (“sq.m.”), including (i) completed properties with a total unsold saleable GFA of approximately 196,611.3 sq.m. and a rentable GFA held for property investment of approximately 44,336.1 sq.m., accounting for approximately 15.0% of the Group's total land reserves; (ii) properties under development with a total planned GFA of approximately 614,978.1 sq. m., accounting for approximately 38.3% of the Group's total land reserves; and (iii) properties held for future development with a total planned GFA of approximately 750,887.3 sq.m., accounting for approximately 46.7% of the Group's total land reserves. The Group's acquired land reserves are mainly located in Zhuozhou and Zhangjiakou which have high development potential.

The Group has been engaged in construction contracting business since 1998. The Group has completed 972 construction projects, most of which are general contractors for building, infrastructure and industrial and commercial construction projects, such as steel structure and ancient building renovation. The Group is also responsible for engaging subcontractors to provide construction services and labor for construction projects, coordinating and cooperating with engineering parties, providing major equipment and machinery, purchasing raw materials and ensuring that construction projects are completed on time.

The Group believes that undertaking construction projects as a general contractor demonstrates the Group's overall capabilities and is extremely important to the Group's continued success. After being awarded with Premium Class Certificate in 2017, the Group is able and expects to continue to be able to undertake large-scale building construction projects with high levels of complexity and returns across the country and can charge a premium for the services of the Group. The value of new contracts entered by the Group was RMB 3,431.1 million. During the year, the Group expanded its construction contracting business to areas other than the Beijing-Tianjin-Hebei region. The value of new contracts in other regions (including Sichuan, Anhui and Xinjiang) entered by the Group was RMB 1,798.6 million.

Looking ahead into 2020, China is still in the critical period of industry structural adjustment and maintains a generally stable economic performance while securing progress. For property industry, different policies will be implemented in different cities to form a long-term management and regulation mechanism to stabiles the prices of lands and residential properties and the market expectation. The Coronavirus disease (COVID-19) outbreak in early 2020 will bring a certain impact on the overall economy. The Group has no business in Hubei Province, and it is expected that COVID-19 has no significant impact on the business of the Group.

Mr. Li Baotian concluded, “Faced with new situation and new challenges, the Group will fully utilise the synergies between property development business and construction contracting business to continue develop a diverse project portfolio. For construction contracting business, the Group will follow the development trend of China, expand to the Guangdong-Hong Kong-Macau Greater Bay Area, and put great efforts in construction of the Beijing-Tianjin-Hebei region in Northern China, Sichuan, Chongqing and Hunan Province in Southwestern China, Shaanxi, Gansu and Xinjiang Province in Northwestern China, and Xiong’an New Area. The Group will expand its business under development, strengthen the human resources of design institutes, enhance the qualifications of infrastructure business, and make nationwide expansion in construction market, thereby enhancing the comprehensive strength of its construction contracting business. Meanwhile, the Group will deeply implement the expansion strategy of “construction first and property development to follow”, focus on Zhuozhou and the satellite cities of Beijing, strengthen the cooperation with local government entities and property developers for construction contracting projects, and continuously expand its property development business.”

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About China Tianbao Group Development Company Limited
China Tianbao Group Development Company Limited is a property developer and construction company based in Zhuozhou, a city in Hebei Province, China. A wide range of businesses, including planning and design, construction engineering, property sales, investment and operations. As of December 31, 2019, the Group has a diversified portfolio of 19 real estate projects, including 17 residential properties, an investment property and a hotel, all of which are owned and developed by the Group. 6 of these projects are in Zhouzhou, and the remaining 13 projects are in Zhangjiakou. As of December 31, 2019, the Group had land reserves with a total gross floor area (“GFA”) of approximately 1,606,812.8 square meters (“sq.m.”). The Group's acquired land reserves are mainly located in Zhuozhou and Zhangjiakou which have high development potential. The Group was listed on the main board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) on November 11, 2019.
For more information about Tianbao Group, please visit the company's website at http://www.chinatbjt.com

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