WORLDUNION(002285)2019-03-28 16:00Revenue Performance - In 2018, the company's revenue from "large transactions" such as agency and e-commerce business decreased by 18.63% due to policy restrictions and slower developer payments [7]. - Revenue from "post-transaction finance and renovation" increased by 20.12%, "asset operation of apartments and shared offices" grew by 89.83%, and "asset management of office buildings" rose by 7.12% [7]. - The company reported a significant increase in revenue, with a total of 1.2 billion RMB for the year, representing a growth of 15% compared to the previous year [25]. - The company's total revenue for 2018 was CNY 7.53 billion, a decrease of 8.26% compared to 2017 [36]. - The revenue from the transaction service segment was CNY 5.29 billion, a decrease of 18.63% year-on-year [36]. - The revenue from the post-transaction service segment grew by 20.12% to CNY 1.01 billion [36]. - The asset operation service segment saw a revenue increase of 89.83%, reaching CNY 634 million [36]. - Internet+ business revenue was 1.681 billion yuan, a year-on-year decrease of 28.58% due to tightening policies in the real estate e-commerce sector [39]. - Financial services revenue increased by 5.74% to 767 million yuan, with a loan balance of 3.967 billion yuan [41]. - Renovation services revenue grew by 108.14% to 247 million yuan, covering 46 cities with a signed area exceeding 700,000 square meters [42]. - Apartment business revenue reached 406 million yuan, a year-on-year increase of 94.85%, with an occupancy rate of over 90% for projects operating for more than six months [44]. - The office brand "Shijian Space" generated revenue of 194 million yuan, up 118.04%, with projects in 15 cities covering nearly 600,000 square meters [45]. - Property management services revenue was 515 million yuan, reflecting a year-on-year growth of 13.18%, managing 116 projects with a total area of 5.9318 million square meters [46]. Profitability and Financial Metrics - Net profit attributable to shareholders was CNY 415.72 million, down 58.59% year-on-year [36]. - The net profit after deducting non-recurring gains and losses was CNY 368.75 million, a decline of 61.69% from the previous year [36]. - The gross profit margin improved to 35%, up from 32% in the previous year, indicating better cost management [25]. - The company's total gross profit for 2018 was 163,191.48 million yuan, with a gross margin of 21.66%, down from 26.53% in 2017 [87]. - The agency sales business reported a gross profit of 104,522.90 million yuan, a decrease of 23.42% year-over-year, with a gross margin decline of 4.59 percentage points [88]. - The financial services generated a gross profit of 47,053.28 million yuan, a slight increase of 2.12% year-over-year, with a gross margin decrease of 2.18 percentage points [88]. - The consulting planning service reported a gross profit of 2,887.62 million yuan, down 71.73% year-over-year, with a significant gross margin decline of 20.48 percentage points [89]. - The asset investment service had a gross profit of 1,738.10 million yuan, down 24.31% year-over-year, but the gross margin increased by 8.92 percentage points [89]. Cash Flow and Financial Stability - The cash flow from operating activities was CNY 967.49 million, an increase of 131.97% compared to 2017 [36]. - The company has maintained a stable debt-to-equity ratio of 0.5, ensuring financial stability for future investments [25]. - The company's asset-liability ratio improved to 59.02% in 2018 from 61.94% in 2017, indicating a stable capital structure [52]. - The company achieved a net cash flow from operating activities of CNY 96,749.31 million, a 131.97% increase compared to the previous year [53]. - The company has a total of 89,603,183.88 CNY in various bank deposits and guarantees, including 37,250,171.45 CNY as loan guarantee deposits and 30,880,000.00 CNY as pledged time deposits [108][109]. Strategic Initiatives and Future Outlook - The company aims to enhance its core asset capabilities to improve performance in 2019, focusing on customer needs and integrated service solutions [13]. - The company anticipates that the market will provide broader opportunities for genuine service providers in 2019 [13]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12% [25]. - New product launches are expected to contribute an additional 200 million RMB in revenue, with a focus on technology-driven real estate solutions [25]. - The company is expanding its market presence, planning to open 10 new offices in key cities across China by the end of the next fiscal year [25]. - A strategic acquisition of a local competitor is anticipated to enhance market share and operational capabilities, expected to close by Q3 2019 [25]. - The company is investing 50 million RMB in R&D for innovative real estate consulting technologies over the next two years [25]. - The company aims to enhance its digital platform, targeting a 30% increase in online service usage by the end of the next fiscal year [25]. Dividend Policy - The company plans to distribute a cash dividend of 0.21 yuan per 10 shares (including tax) based on a total of 2,042,970,972.00 shares [4]. - For 2018, the cash dividend was set at RMB 0.21 per 10 shares, amounting to RMB 42,902,390.41, representing 10.32% of the net profit attributable to ordinary shareholders [159][161]. - The cash dividend payout ratio for 2018 was lower compared to 2017, indicating a potential shift in capital allocation strategy [159][161]. - The company has maintained a consistent cash dividend policy over the past three years, with dividends paid in cash only [160][161]. Market Challenges and Adjustments - The company anticipates challenges in the real estate market due to increased household leverage, with the debt-to-GDP ratio reaching 57.0% [140]. - The company notes that the financial environment has changed significantly since 2008, impacting the real estate sector [141]. - The company expects that the current economic environment will require stability in the real estate sector rather than aggressive expansion [143]. - The company has implemented a comprehensive service strategy focusing on "service, entry, openness, and platform" to provide integrated solutions for clients [149]. - The company is focused on adjusting its business scale to control risks associated with market fluctuations and economic changes [120]. Subsidiary Performance and Investments - The subsidiary "Pioneer Home" generated a revenue of CNY 1,579.95 million and a net profit of CNY 468.39 million [133]. - "Shenzhen Small Loan" reported a revenue of CNY 531.39 million with a net profit of CNY 149.13 million [133]. - "Shandong Shilian" achieved a revenue of CNY 713.30 million and a net profit of CNY 107.53 million [133]. - The company has established a significant number of subsidiaries in the decoration service sector, with 80% ownership in multiple new firms across various regions [179]. - The company is pursuing a strategy of market expansion through both new establishments and acquisitions, focusing on asset services and real estate consulting [178].