Lianhe Credit Rating Maintained Rating for Helenbergh as “AA+” with a Stable Outlook

On June 23, China Lianhe Credit Rating Company Limited claimed to maintain Helenbergh China Holdings Limited (hereinafter referred as Helenbergh) the long-term credit rating of AA+ with a stable outlook, after tracking, analysis and evaluation on the corporate and relevant bonds. Lianhe also assigned the stock “18Hailun02” a credit rating of AA+.

According to the rating implications of Lianhe, Helenbergh has a strong solvency capacity as the company is affected little by the unfavorable economy, so it has a low likelihood of default, a stable credit status, and a higher possibility of maintaining its credit rating in the future.

Helenberg had a non-public corporate bond with a total capital amount of 800 million yuan,  and the company had deposited the repayment fund with interest and principal up to 863 million yuan into the corresponding account in advance on June 17.

The credit report of Helenbergh issued by the People's Bank of China says that as of May 17, 2022, there is no concerned or non-performing record in the company’s outstanding and closed credit information, marked Lianhe. Moreover, Helenbergh’s past principal and interest repayment records of its debt financing instruments issued in the open market indicate that the company registers good performance without overdue or default records.

The rating agency also noted that Helenbergh is an experienced real estate developer. By the end of 2021, Helenbergh’s total consolidated assets amounted to 169.613 billion yuan, up 11.09% from the end of the previous year, with a continuous net cash inflow from operating activities.

Sales-wise, the subscribed area of Helenbergh’s property for sale in 2021 increased by 14.71% year-on-year, the sales amount climbed by 8.99% year-on-year, with a relatively stable average price of subscribed sales and incremental carried-forward area and amount both increased. The average price of carried-forward area was also stable. Between January to May 2022, Helenbergh achieved a rise in sales outstanding, up 3% from the same period last year, and registered a sales of 18.78 billion yuan. The sustained cash inflow from core businesses is expected to be sufficient to satisfy its financial and operational needs.

As for land reserves, Helenbergh owned a total landmass of 30.26 million square meters counted in equity caliber (including portions sold). The abundant land reserves can support its development demand for some time to come.

Centering on residential development and sales, Helenbergh has formed a diversified development model of residences, villas, stores and office buildings, and currently it holds part of the property management for its own commercial properties. By the end of 2021, Helenbergh owns 26 commercial properties, many  of which are located in Guangzhou, Kunming, Hefei, Nanjing and other major cities in China.

Lianhe Credit Rating points out that as these commercial properties are developed and put into operation one after another, the rental income of Helenbergh is expected to grow as such.

Materials also show that Helenbergh businesses cover a wide range of property development, commercial operation, and creative technology. As of December 31, 2021, its presence spread across more than 50 cities in 16 provinces and municipalities, owns more than 200 high-quality boutique real estate projects and boasts land reserves worth nearly 400 billion yuan.