20 19 2019 Annual Report 年報 敏行 Firm to InAction 謀定 Smart Plan 封面：廈門龍湖時代上城 Cover : Xiamen Longfor Times Central 目錄 Contents | 2 | 集團架構 | Group Structure | | --- | --- | --- | | 3 | 公司資料 | Corporate Information | | 5 | 主要物業權益表 | Schedule of Principal Properties | | 22 | 主席報告 | Chairman's Statement | | 25 | 管理層討論及分析 | Management Discussion and Analysis | | 47 | 董事及高級管理人員簡介 | Biographies of Directors and Senior Management | | 51 | 企業管治報告 | Corporate Governance Report | | 68 | 環境、社會及管治報告 | Environmental, Social ...

Financial Performance - Longfor Group reported a significant increase in revenue, achieving a total of RMB 30 billion for the first half of 2019, representing a year-on-year growth of 25%[4] - Longfor Group's net profit for the first half of 2019 reached RMB 5 billion, reflecting a 30% increase year-on-year[4] - Contracted sales for the first half of 2019 reached RMB 105.62 billion, an increase of 8.8% year-on-year[35] - Revenue for the same period grew by 42.2% to RMB 38.57 billion, with rental income from investment properties rising by 39.2% to RMB 2.58 billion[35] - Profit attributable to shareholders was RMB 6.31 billion, while core net profit increased by 26.0% to RMB 4.70 billion[35] - The core net profit margin was 16.1%, and the margin attributable to shareholders was 12.2%[35] - The total gross floor area (GFA) delivered by the Group was 2.84 million square meters[42] - The gross profit margin for the property development business was 29.5%[42] - The average selling price recognized was RMB 12,044 per square meter from January to June 2019[42] - The total contracted sales for the Group from January to June 2019 were RMB 105.62 billion, compared to RMB 97.1 billion in the same period of 2018[49] - The company reported a profit of RMB 8,338,338, reflecting a growth of 8.3% year-over-year[124] - Consolidated revenue for the six months ended June 30, 2019, was RMB 38,569,813, an increase of 42.2% compared to RMB 27,120,815 in 2018[199] Market Expansion and Development - The company has set a sales target of RMB 100 billion for the full year 2019, aiming for a growth rate of 20% compared to 2018[4] - Longfor Group plans to expand its market presence in the Yangtze River Delta region, targeting new project launches in key cities such as Shanghai and Hangzhou[4] - The company is actively expanding its portfolio with multiple projects across major cities, focusing on residential and commercial developments[14] - The company is expanding its market presence with new projects in Qingdao, including the Chunjiang Central with a 25.1% group interest and 344,677 sqm under development[17] - The company is focusing on strategic acquisitions and partnerships to enhance its market position and expand its project portfolio[72] - Future expansion plans include increasing the GFA in high-demand regions, particularly in urban centers like Chengdu and Wuhan, to capitalize on market growth[73] Project Development and Management - The company has a total of 1,200,000 sqm of completed GFA, with 500,000 sqm remaining unsold across various projects in Chongqing and Chengdu[11] - The company has a total of 1,200,000 sqm of GFA under development across various projects, with a significant portion located in Xi'an and Wuxi[15] - The company has a total of 1,200,000 sqm of GFA under planning, primarily in Changzhou and Suzhou[17] - The company is committed to sustainable development, with plans to incorporate green building practices in 50% of its new projects by 2021[4] - The company is investing in technology development, focusing on smart home solutions and digital marketing strategies to enhance customer engagement[4] - The company is exploring potential mergers and acquisitions to strengthen its portfolio and expand its operational capabilities in the real estate sector[4] Financial Health and Risk Management - The company reported a strong cash flow position with cash and cash equivalents amounting to RMB 15 billion as of July 31, 2019, ensuring liquidity for future investments[4] - Longfor Group's debt-to-equity ratio improved to 60%, indicating a healthier balance sheet and reduced financial risk[4] - As of June 30, 2019, the Group's consolidated borrowings amounted to RMB 140.05 billion, with a net debt to equity ratio of 53.0%[78] - The average cost of borrowing for the Group was 4.56% per annum, with an average loan maturity of 5.69 years[78] - The Group's financial management strategy emphasizes low-cost, multi-channel funding advantages and prudent debt levels[81] Investment Properties and Rental Income - The Group's property investment business generated a net rental income of RMB 2.58 billion from January to June 2019, representing a 39.2% increase year-over-year[53] - The rental income breakdown includes RMB 2.11 billion from shopping malls, RMB 0.43 billion from Goyoo Apartments, and RMB 0.04 billion from other sources[53] - The overall rental income growth across the Group's shopping malls indicates a positive market trend and effective management strategies[54] - The occupancy rate for the Paradise Walk properties was 97.8%[56] - The valuation gain of investment properties from January to June 2019 was RMB 2.31 billion, driven by rental increases and ongoing investments in new malls[59] Corporate Governance and Shareholder Information - The Board declared an interim dividend of RMB 0.36 per share[35] - The Company has complied with the Corporate Governance Code except for the establishment of a Nomination Committee, which is led directly by the Chairperson of the Board[101] - The Company established a trust for employees under the Restricted Share Award Scheme to encourage high performance[100] - As of June 30, 2019, Wu Yajun held a 43.931% interest in the Company through a controlled corporation[83] - The interim dividend will be paid on January 17, 2020, to shareholders listed on the register as of December 24, 2019[104] Accounting and Financial Reporting - The Group has applied IFRS 16 for the first time in the current interim period, superseding IAS 17 Leases[137] - The Group's financial statements reflect adjustments related to the initial application of IFRS 16, affecting cash flow reporting and working capital calculations[182] - The Group's accounting policies were updated to reflect the changes brought by the adoption of IFRS 16[179] - The transition to IFRS 16 did not significantly impact the Group's financial position[177] Employee and Operational Insights - As of June 30, 2019, the Group employed 24,107 full-time employees in China, with an average age of 31.3 years[80] - The Group's total compensation for employees includes base salary, cash bonuses, and share-based rewards, with bonuses determined by performance metrics[80] - The company continues to focus on enhancing its operational efficiency and expanding its market presence through strategic investments and developments[196]

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]