June 25, 2021 (China Knowledge) – Last month, the 2021 conference of the top 100 listed real estate companies in China was held in Shenzhen and awarded Jiangsu Zhongnan Construction (000961) the No. 1 place for most service innovative and one of the most complete. suppliers.

In recent years, Jiangsu Zhongnan Construction has experienced steady and continuous growth in its business performance. Data show that the company achieved a turnover of 78.06 billion RMB in 2020, with year-on-year growth of 9.4%, and recorded a net profit of 7.08 billion RMB, with a 70% year-on-year growth. Despite the Covid-19 outbreak that damaged most sales of all developers in the first and second quarters of last year, its return on equity (ROE) in 2020 recorded an impressive 28.18%, a 6.60% year-over-year increase and basic earnings per share (EPS) increased 67.5% year-on-year. Notably, Jiangsu Zhongnan Construction plans to pay a cash dividend of RMB 5.56 (tax included) for 10 shares to all shareholders. This reveals a dividend payout rate of 30%, the highest since its IPO in 2009.

Behind these impressive figures and the payment of generous dividends lie the remarkable results of continuously improving the quality and efficiency of the company, reducing leverage and maximizing profitability. According to the 2020 annual report, Jiangsu Zhongnan Construction’s total debt ratio was 86.54%, down 4.23% from 2019. Contractual debt without repayment risk recorded RMB 120.29 billion , or 38.69% of the company’s total debt; thus, ensuring that its debt scale remains relatively lower than that of its peers.

In other areas of improving its profitability and efficiency, Jiangsu Zhongnan Construction has continuously promoted product standardization, increased product competitiveness, and strengthened its supply chain. At the same time, through sustainable development, the growth rate and quality of operations are effectively balanced, through downward optimization of budget, capital, investments, financing and other financial management systems , to achieve a good balance between development and quality.

In marketing, innovation is also one of the means for the company to achieve sustainable development and quality growth. Last year, Jiangsu Zhongnan Construction launched an online flagship store with Tmall during the “Double Eleven” online shopping session and closed the event with a total GMV of RMB 11.7 billion, ranking at the forefront of cooperative housing enterprises.

For more than 33 years since its founding, Jiangsu Zhongnan Construction’s business approach has always imparted passionate warmth and warmth to the company. As the first private enterprise in Jiangsu Province to set up a charitable foundation, it has relentlessly fulfilled its social responsibility of charity, tax contribution, and keeping good records of quality housing and quality. security. To date, the company has donated over 1 billion RMB and directly created over 100,000 jobs.

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