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CFLD's Net Profit Growth Triples, Maintaining its Number 1 Position in the Industry

August 16, 2016标签:廊坊、京津冀协同发展

Model-oriented: industry leading profitability

CFLD’s sales volume of RMB58.434 billion and its industry-leading growth rate of 75% (in 2015) ranks No.7* in the industry. Benefiting from the rapid progress of the collaborative development among Beijing, Tianjin and Hebei, the model of new industrial cities has been successfully copies in different areas. During January and June, 2016.

In April 2016, Wuhan released its Outline of the 13th Five-year Plan of Wuhan for the Development of National Economy and Society, detailing its efforts to build “three updated versions” of the economy, the city and the social standing of its people. This is achieved by forming a governance system for a central metropolis with Wuhan’s characteristics and building the infrastructure for a national central city, so as to solidify the city’s status as a tier-one city and rank amongst the top cities in terms of comprehensive economic strength, and in turn solidify the city’s prominence as a central city in central China.

As an operator and new industrial cities, CFLD has been making investing in popular domestic economic areas and has dedicated itself to building new industrial cities.

With its focus on industrial development in the first half of 2016, CFLD’s revenue from industrial development services was RMB7.659 billion, a 69.4% increase as compared to 2015.

Tier-2 parks like Sujiatun, Huailai, Bazhou, Jiashan, Xianghe and Yongqing have rapidly risen, contributing to over 30% of the sales volume and over 40% of CFLD’s contractual investment amount. This not only validates the duplicability of CFLD’s business model and the accuracy of its strategic layout, but also keeps creating new sources of performance and profitable growth.

Benefiting from the growth in the share of high-profit industrial parks in the first half of 2016, CFLD experienced a gross profit rate of 45.3%, a 12.7% jump from 2015; and the sales net profit rate of 22.5%, a 4.5% improvement from 2015.

The report also shows that by the end of June 2016, the company’s balance of payment in advance was approximately RMB 88.6 billion, a 31.7% increase from the beginning of the year, and this amount is estimated to be carried over as the company’s operating revenue and profit, which is beneficial to securing the company’s continuous growth in its operating performance in the next 3 years.

Layout planning acceleration: highly in line with the national strategies

According to analysts, CFLD’s development momentum is a direct result of its revolutionary model of new industrial city and its leadership role in industrial development ability.

In the first half of 2016, CFLD had always adhered to the model of new industrial cities, following the three national strategies, and achieving accelerated layout planning.

CFLD has also consolidated its position in Beijing, Tianjin and Hebei, planned the layout in the Yangtze River Economic Belt and has actively broken through the Pearl River Delta and the “The Belt and Road” area, has secured overall layout planning projects around popular cities at home and abroad and has signed cooperation agreements for new industrial cities with 10 zones in just the first half of the year alone.

In May 2016, the company signed a cooperation memorandum with the administrative committee of Jiangmen Hi-Tech Industrial Development Zone, Guangdong and the people’s government of Jiangmen Jianghai District. With its first breakthrough in the Pearl River Delta in June, the company also signed an agreement with AS, the flagship company of the Argo Manunggal Group of Indonesia. This has resulted in the formal agreement to build Indonesia’s first international new industrial city. Apart from this, there were layout breakthrough achieved in Zhengzhou, Hangzhou and Wuhan as well.

CFLD also won the bid for the Langfang-Zhuozhou-Gu’an-Baoding inter-city railway project as a social investor in mid-May, becoming the first private company to invest in and hold shares of an inter-city passenger railway project. This signals CFLD’s foray into transit resources to be part of the platform of new industrial cities, realizing major innovation and upgrading of its model of platform of new industrial cities, promoting the collaborative development of industries along the line, driving along the economic development of areas along the line, thus having important meaning for accelerating the harmonious development among Beijing, Tianjin and Hebei.

Industrial upgrading: driven by science and technology and investment

While achieving a monumental breakthrough in terms of strategic layout planning, CFLD has been building on its own capabilities and constructing the “fosse” for core abilities of industrial development.

To drive regional industrial upgrading and innovative development, CFLD has been adhering to the idea of “one industrial park as an industrial cluster”, actively integrating resources around the whole world, taking measures suiting local conditions to create high-end industrial clusters with high science and technology content as models for local areas.

CFLD introduced 212 new companies to new industrial cities invested by the company, showing a sharp YoY growth of 226%; increased the contractual investment amount of RMB58.153 billion, eclipsing 2015’s estimates of RMB53.7 billion with a YoY growth of 129%.

CFLD has also collaborated with Fortune 500 companies and industrial leaders like Voestalpine, BOE, Faurecia and Jinhaian Industry, to drive the assembly and clustering of upstream and downstream companies on the industrial chain. As for science and technology driving engines, the company agreed to the “Industry-Academia-Research” cooperation with universities and research institutes like Tsinghua University and Korea’s Chungnam National University and built the 4-in-1 “Industry-Academia-Research” cooperation platform integrating “innovative R&D, project incubation, technology transfer and supporting services”. For drive innovation, the company collaborated with Techcode to set up over 10 incubators in global innovation highlands; Torch Makers Incubator, which is under Suzhou Torch, an affiliate of the company, has achieved layout planning in over 30 cities nationwide. To drive capital investment, the company signed an investment framework agreement with Kunshan Govisionox Optoelectronics Co., Ltd, to invest in the construction of a sixth-generation AMOLED panel product line and AMOLED display modules in Bazhou, and through capital-driven introducing technologies of industrial investment type, the double-wheel driving model of “Technology + Capital” has achieved major breakthroughs.

During this period, CFLD also invested in and controlled shares of Shenzhen Partners Industrial Service Co., Ltd., thus joining its industrial Big Data and powerful resources and investment-attractive ability to the new industrial city platform for rapid introduction of project resources and industrial clusters to the new industrial cities and assisting the company in resource integration and overall planning for industries around the country.