During the Year, the Group recorded a revenue of approximately RMB8.75 billion. Gross profit was approximately RMB1.51 billion, representing an increase of 30.1% YoY. Gross profit margin was approximately 17.2%, representing an increase of 6.4 percentage points. The Group's profit for the year increased by 25.7% YoY to approximately RMB48.5 million, net profit margin was approximately 5.5%, representing an increase of 1.9 percentage point. Profit attributable to owners of the parent for the Year was approximately RMB142 million.
Precise Deployment in Key Cities with Sales and Payment Collection Recording a Record High
In 2021, under the influence of the COVID-19 pandemic and the downturn in the industry, commencement of construction, investments and sales of the real estate industry were susceptible to certain constraints. Nevertheless, the Group responded proactively and in a timely manner by adjusting the project launch schedule and promoting the business through multiple measures, including increasing its efforts on online marketing channels and external channels via the use of channels such as "Yin Yuan Bao". Through such approaches, the Group could develop the online customer base and undergo digital transformation on the other hand. Leveraging on its steady project launch strategy throughout the year, as well as its good brand image and high market recognition accumulated over the years, the Group achieved a record high in total contracted sales for the year. During the Year, the Group recorded a record high in total contracted sales, increased by 9.0% YoY to approximately RMB25.3 billion, and the compounded growth rate from 2018 to 2021 was 38.4%. During the year, total contracted sales gross floor area amounted to approximately 1,136,045 sq. m., the contracted average selling price increased by 10.6%. to approximately RMB22,265 per sq. m..
The Group continued to unleash its significant advantages in the Yangtze River Delta region, the projects that mainly contributed to the contracted sales were located in core cities such as Nanjing and Hangzhou. A number of projects in core cities that were newly launched during the year achieved excellent sales performance. For example, all 914 residential units in the Nanjing Yunwangfu project were immediately sold out after its launch in three phrases. The Hangzhou Qingshanhupan project launched 310 additional units in May, with excellent sales performance, ranking first in the transaction volume of the Lin'an market in the first half of the year. The Guan Hu Zhi Chen project and Yue Hu Zhi Chen project have achieved excellent sales performance of "seven launches and seven sold out" from May to September 2021 upon their first launch in November 2020, with contracted sales of RMB4,112 million and sales proceeds of RMB3.8 billion after 1,439 units were sold. By the end of 2021, the residential units of Nanjing Jin Ling Jiu Yuan project, which was first launched at late December 2020, were sold out during the three launches, making it the No. 1 residential transaction in Nanjing's midtown area in 2021 and the No. 1 in Nanjing in terms of area, number of units and total sales amount of residential units sold with a total price of over RMB20 million, leading the residential sales market in Nanjing. At the same time, the Group achieved the fifth consecutive year of growth in receivables collection last year, while the consolidated recovery rate hit a record high for the Group, which was also an above par achievement in the industry.
Precise and Efficient Investment and Prudent Expansion of Quality Land Reserves
In 2021, the Group was committed to the existing strategies of serving the markets in the Yangtze River Delta Megalopolis. During the year, we further developed the five regional markets of Nanjing, Southern Jiangsu, Zhejiang, Huaihai and Anhui. The Group had acquired a total of 14 land parcels within the year by continuing to adopt a diversified land acquisition channels, which contributed to an increase of approximately 2.97 million sq.m. in total GFA. As at 31 December 2021, the GFA of the Group's total land bank amounted to approximately 7.25 million sq. m., of which, approximately 4.71 million sq. m. was attributable to the Group. The Group adjusted its investment strategy in a timely manner to return to the very essence of its operation. Adhering to the principle of long-term investment, the Group has implemented strict control before, during and after investment, and maintained control with the operational indicators of new projects from multiple perspectives, with a positive cash flow-back cycle of 18 months for new project targets and a positive fund back cycle of 9 months. This not only brought a guarantee for future development in terms of scale, but also provided strong support for the Group's future profits and sustainable operation in the long run.
Industry-leading Development and Operation Efficiency due to Significant Improvement in Production and Sales
The Group continued the strategy of stable and efficient development to ensure the sustainable operation of the enterprise. Acquisition of four certificates required for land parcels takes approximately 3.8 months and the initial sales period was approximately 6.9 months. Particularly for the first time in 2021, "50% of the target sales were achieved after half of the sales period" during the first half of the year, thus more supply and sales were concentrated in the first half of the year. The Group's focus on key projects have yielded significant results, including projects such as Qingshanhupan in Lin'an and Qingyunfu in Xuzhou, which exceeded the progress of contracting and payment collection in 2021. In addition, a number of projects were delivered successively during the year, with an overall on-time delivery rate of 100%, and therefore no delivery was delayed.
In addition to maintaining its industry-leading development and operation speed, the Group also maintained high standards in product engineering quality and customer satisfaction indicators. The Group's overall loyalty rating for 2021 was 72, a slight increase from 71 in 2020, and the Group is ranked in the top 20% of the industry. The Group achieved an overall annual customer satisfaction of 88%, an annual delivery satisfaction rate of 87% and an overall housing inspection service satisfaction rate of 95%, all of which were at the industry benchmark level.
By the end of 2021, the Group's total resources at the end of the year amounted to approximately RMB70 billion, of which the aggregate inventory resources reached approximately RMB25 billion, including those pending the collection of issued licenses and those which are eligible for obtaining licenses. The resources in transit will be released gradually this year, approximately 90% of which would be distributed in the first-tier cities and second-tier cities so that the comparatively high overall safety margin provides reliable sources for future contracted sales.
Mr. Huang Qingping, the Chairman of Yincheng International Holding, said "the decline in profitability of real estate enterprises is an industrial trend underway and is a result from factors such as the tightened macro-control and the lagging effects brought by various policies. In the real estate industry, the development model where real estate companies previously achieved rapid expansion through high debt, high leverage, and high turnover is no longer sustainable. In this context, the real estate industry is transitioning from incremental development to stock operation. In active response to challenges, the Group will continue to maintain a safe threshold for future development, and control business risks. By utilizing the advantages of our own brands, products and services, the Group will actively secure room for survival and development in the regional market, and move forward to lean operation and high-quality development. As an important growth area for China's economic development, the Yangtze River Delta region where we are located remains as one of the most dynamic and robust markets in China, with a population continuing to concentrate in the cities. The scale of the real estate industry will continue to exist, and the demand which has not disappeared will be gradually released as the inhibitory factors disappear. In the future, we will continue to focus on the market in the Yangtze River Delta region by utilizing the established compound advantages such as real estate, property, and healthcare. On the basis that the Group has sufficient capital, our Group will rationally expand the business scale, improve the quality of operations, and achieve steady and stable growth in profitability, as well as stable and robust business development, to seize the development opportunities brought by the accelerated consolidation of the real estate industry."
Today, Yincheng International Holding held the 2021 annual results presentation online. Total of 96 fund managers, equity analysts and reporters participated in the event. The management gave the introduction of annual results and answered the participants' questions.
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