Financial Performance - Longfor Group reported a significant increase in revenue, achieving a total of RMB 100 billion in 2018, representing a year-on-year growth of 20%[7] - Longfor Group's net profit for the year reached RMB 15 billion, reflecting a 25% increase compared to the previous year[7] - The Group achieved contracted sales of RMB200.64 billion in 2018, representing a year-on-year growth of 28.5%[41] - Revenue increased by 60.7% year-on-year to RMB115.80 billion, with rental income from investment properties amounting to RMB4.09 billion, a year-on-year increase of 57.7%[43] - Core net profit was RMB12.85 billion, reflecting a 31.5% increase compared to 2017, with a core net profit margin of 14.7%[43] - The gross profit margin for property development increased by 0.4% to 33.2%[52] - The Group's core net profit margin decreased to 14.7% from 18.3% in the previous year, while the core net profit margin attributable to shareholders fell to 11.1% from 13.6%[73] Market Expansion and Strategy - The company plans to expand its market presence in Central and Western China, targeting cities such as Wuhan and Chongqing for future developments[8] - Longfor Group is actively exploring potential mergers and acquisitions to strengthen its market position and diversify its portfolio[8] - The company is expanding its market presence with multiple projects across major cities, including Beijing, Shanghai, and Xi'an[15] - The company aims to leverage its land acquisitions to drive future growth and enhance its competitive position in the real estate market[82] - The company plans to maintain strong financial capabilities and disciplined investment strategies in response to market volatility[50] Project Development - The company has a total of 22 ongoing projects in Chongqing, with a completed gross floor area (GFA) of 22,250 square meters and 93,280 square meters under development[11] - The project "Longfor Ideal City" in Chongqing is expected to be completed by December 1, 2023, with a remaining unsold GFA of 32,574 square meters and 564,596 square meters under development[11] - The "Times Paradise Walk" project in Chengdu has a completed GFA of 108,972 square meters and 316,360 square meters under development, expected to be completed by December 1, 2022[13] - The company has a total of 1,200,000 square meters of GFA under development across various projects, with a significant portion located in Qingdao and Hangzhou[19] - The company has completed multiple projects in Chongqing, with a total completed Gross Floor Area (GFA) of 1,200,000 square meters across various developments[31] Financial Management - The average funding cost for the year remained competitive at 4.55%, supported by a credit line of over RMB200 billion[45] - The cash collection ratio exceeded 85%, demonstrating strong financial management during a challenging market environment[44] - The Group's dividend payout ratio was 45% of core net profit, reflecting a commitment to returning value to shareholders[43] - The Group's total borrowings amounted to RMB119.82 billion, with a net debt to equity ratio of 52.9%[99] - The average cost of borrowing for the Group was 4.55% per annum, with fixed interest debt accounting for 38% of total debt[100] Corporate Governance - The Company is committed to achieving a high standard of corporate governance to improve results and corporate image[186] - The Board has established various committees, including the Audit Committee, Remuneration Committee, and Investment Committee, to delegate specific responsibilities[191] - The independent non-executive directors confirmed compliance with non-competition undertakings by controlling shareholders and directors for the year ended December 31, 2018[142] - The Company has adopted share option and share award schemes to recognize and reward employee contributions[136] - The Board currently comprises four executive directors and four independent non-executive directors, ensuring a strong independence element[187] Social Responsibility - The company committed a total donation of RMB300 million to support education through the "Guangcai-Longfor Special Fund for Education and Poverty Alleviation"[46] - The Group made donations amounting to approximately RMB 49,056,000 during the year, compared to RMB 22,540,000 in 2017[136] - The company emphasizes compliance with relevant environmental laws and regulations, ensuring adherence by staff and contractors[180] - The company reported no material breaches of applicable laws and regulations during the year[180] Customer Satisfaction and Market Position - The company reported a 15% increase in customer satisfaction ratings, attributed to improved service and product quality[7] - The total sales volume in the Chinese real estate market reached RMB15 trillion in 2018, indicating a significant market size despite challenges[44] - The company maintains a diverse portfolio with residential, commercial, and office properties across multiple cities, enhancing its market position[22]