With Solid Realty Performance, Helenbergh Witnesses Periodic High Growth

The second half of 2021 has begun, and real estate enterprises handed in their mid-term papers successively. Recently,“China’s TOP200 Real Estate Enterprises in Sales Performance in the First Half of 2021” was issued, and the sales amount of Helenbergh ranked the 50th. As a robust and steady real estate enterprise with low profile, what is the real strength of Helenbergh?

Helenbergh has been adhering to the brand concept of “Flourish with You” and the strategy of national layout and deep regional developing. As of Dec. 31, 2020, Helenbergh has covered 45 cities of 15 provinces and municipalities, including the Pearl River Delta Region, the Yangtze River Delta Region, the Jing-Jin-Ji Region, the Western China Region, and the Central China Economic Region, with nearly 200 projects in different developing stages.

With Financial Soundness, Helenbergh’s Financing Cost is Lower than Industry Level

According to the statistics released by China Index Academy for the first half of 2021, the average sales of TOP100 real estate enterprises was 69.3 billion yuan, with a year-on-year growth of 40.0%, and the equity sales of TOP100 real estate enterprises totaled 5 trillion yuan, with a market share of 56.6%, up 2.1%. The sales performance is growing steadily. According to CRIC statistics, all sales amount of Helenbergh reached 78.39 billion yuan in 2020, with a year-on-year growth of about 47%, and the compound growth rate in recent five years has exceeded 40%. Helenbergh has risen to the 40th in the equity sales list.

In 2020, Helenbergh has seized opportunities, promoted actively, and collected payment, with a significant year-on-year growth of sales performance. As of the end of December 2020, Helenbergh has been holding abundant cash, with the net asset liability ratio less than 100%, the cash short-term debt ratio more than 1 time. None of them touched the “three red lines”, indicating that Helenbergh has healthy fund situation.

In the first half of 2021, Helenbergh witnessed an increase of the credit financing in the forms of dollar debt and private debt in financing channel, with a decrease in trust and estate management loan. The overall financing cost was kept below 10%, far below industry level.

In 2020, Helenbergh had consolidated financial performance, winning recognition of many international rating agencies. The company obtained the rating of “B⁺” and “B2”from international authoritative credit rating agencies, such as Fitch Ratings and Moody’s Credit Rating, with the prospect of “stable”.

With Active Investment, Helenbergh Obtained Many Quality Lands

Under the background of “three red lines”, “two red lines”, and “two focuses and three batches”, Helenbergh adhered to the strategy of national layout and deep regional developing with further optimization of land reserving structure. The company has obtained dozens of quality lands in many cities including Nanjing, Chengdu, Suzhou, Chongqing, Zhongshan, Foshan, Jinhua, and Guiyang.

According to public information, as of Dec. 31, 2020, the land reserving area of Helenbergh has reached 31.57 million square meters, with in-depth layout in the Pearl River Delta Region, the Yangtze River Delta Region, the Jing-Jin-Ji Region, the Western China Region, and the Central China Economic Region, among which the land reserving area of Greater Bay Area accounted for more than 30%.

CRIC statistics show that, in “China’s TOP100 Real Estate Enterprises in New Value from January to June 2021”, the new value of Helenbergh reached 38.63 billion, ranking the 34th.

According to Fitch Ratings, Helenbergh implemented the strategy of national layout and deep regional developing, obtaining lands in a variety of ways including acquisition, public auction and old city renovation projects. Meanwhile, the company also had cost advantage of land reserving with strong competitiveness, so as to support the company’s development in the future four to five years, enabling the profit margin of average EBITDA to grow steadily.

Moody's Credit Rating, the famous bond rating agency, pointed out that Helenbergh has outstanding advantages in land purchase. Especially, its rich experience in project acquisition will help the company maintain the gross profit margin of around 30% in the future one year or one and a half years.

From the evaluation of international on Helenbergh, it is easy to see that the future development of Helenbergh is quite positive and full of advantages.

With Diversified Development and Robust Achievements, Helenbergh Engages in Healthy Living

Currently, real estate enterprises are facing the challenges of transformation and innovation. At the turn of new and old industry rules, cultivating a second growth curve by developing the large cash flow of the main business and exploring new business fields are the most important parts for real estate enterprises.

For more than 20 years, Helenbergh kept developing, with constant thinking of relationships between people and architecture, architecture and city, city and life, engaged in research on quality living, and proposed concepts of “Health⁺”, so as to become the leader in healthy residence.

As the concept of “houses returning to the essence”takes root, Helenbergh believed that healthy living community would be the future developing trend, from the perspectives of sustainable development and long-term needs. Helenbergh engaged in creating a harmonious living place where people can rest the body and heart with community life. In 2016, Helenbergh systematically proposed the concept of “Health⁺”and put into product practice.

In 2017, Helenbergh proposed the concept of “Health⁺”, taking residents’ needs and life value as guidance, and specifying that “Health⁺”system standards contain three sections including health+ecological planning, health+fine decorated apartments, and health+intelligent community. In 2018, Helenbergh upgraded and proposed “Health⁺2.0”. In 2020, “Health⁺”was promoted into “Health⁺2.0 upgraded version”.

Helenbergh took development of residential property as the core business, along with the development of other two business sections including commercial property and innovative technology park, actively promoting the development of new business areas of urban renewal with commercial industrial investment, and building the three commercial brands of Helen World, Helen City, and Helen Park in strategic view.

There are 15 commercial projects under construction and operation by Helenbergh, distributed in many key cities including Shanghai, Guangzhou, Kunming, Chengdu, and Nanjing.

The innovative technology parks are located in cities of the Pearl River Delta Region and the Yangtze River Delta Region, such as Shanghai, Nanjing, Guangzhou, and Zhongshan. As the key creative industry base in Guangdong, Guangzhou Helenbergh innovative park has attracted more than ten listed enterprises including Baidu, Alibaba, Zhejiang CHINT, Germany Deckel, Guangdong PAK, and Jomoo commercial. It incubated more than 100 innovative enterprises and over 3000 innovative achievements, with the annual output value exceeding 50 billion yuan.

On June 28, Helenbergh’s project of “Intelligent Jinshan and Ecological Green Valley”started, which was located in the core position of economic corridor of Shanghai Jinshan Avenue. Helenbergh’s Intelligent Jinshan and Ecological Green Valley has the total land area of about 229 mu, the total building area about 530,000 square meters, and the total investment of about 5.15 billion yuan. It will be built into a highland of science and technology research to gather R&D talents and industrial innovation, a developing cluster of ecological industry chain to serve the entire life cycle of enterprises, and a technology service area with complete functions and diversified life experience. After the projects are completed and reach target output, the annual output value will reach 1.35 billion yuan, with 6300 new employees.

Recently, China Real Estate Index System and China Index Academy issued “Summary of Real Estate Market in the First Half of 2021 & Trend and Outlook in the Second Half”. It is estimated that the national real estate market in 2021 will have the characteristics of “expected new highs in sales, gentle decrease in newly-commenced projects, and medium-high rate of growth in investment”. The sales of national real estate market is expected to have new breakthroughs, and the annual sales of commercial housing will continue to set new records.

Under this background, Helenbergh’s development will be sure to benefit from the overall situation. Helenbergh adheres to the idea of “Flourish with You”, along with the strategies of comprehensive development, balanced development of three sections, and paying equal attention to real estate and property. The company will continue to give play to the featured resources and construct “Health⁺”residence, so as to form differentiated competitiveness and achieve robust and steady growth of sales performance.