Financial Performance - The company's unaudited consolidated revenue for the six months ended June 30, 2018, decreased by 4.6% to approximately RMB 6,518 million, compared to RMB 6,829 million for the same period in 2017[11]. - The profit attributable to equity holders of the company for the same period was approximately RMB 698.5 million, reflecting a slight increase of 0.5% from RMB 694.9 million in 2017[11]. - Basic and diluted earnings per share for the six months ended June 30, 2018, were RMB 11.5 cents, up 0.9% from RMB 11.4 cents in the previous year[11]. - The gross profit for the six months ended June 30, 2018, was approximately RMB 1,618.6 million, representing a 1.2% increase from RMB 1,599.2 million in 2017[16]. - The net profit attributable to equity holders of the company was RMB 698,481 thousand, representing a slight increase of 0.8% from RMB 694,943 thousand in the same period last year[186]. - Total comprehensive income for the period was RMB 954,485 thousand, compared to RMB 857,073 thousand in the previous year, reflecting an increase of 11.4%[189]. - The company's total assets as of June 30, 2018, amounted to RMB 71,675,575 thousand, an increase from RMB 67,192,831 thousand at the end of 2017[191]. - Total liabilities increased to RMB 56,710,231 thousand from RMB 52,776,561 thousand, indicating a rise of 7.4%[195]. - Cash and cash equivalents rose significantly to RMB 6,345,060 thousand, compared to RMB 2,849,226 thousand at the end of 2017, marking a growth of 123.7%[195]. - The gross profit margin improved to 24.8% in 2018 from 23.4% in 2017, while the operating profit margin increased to 24.7% from 17.1%[111]. - The net profit margin rose to 14.6% in 2018 compared to 12.5% in 2017[111]. Revenue and Sales - The decline in revenue was attributed to lower average selling prices of properties delivered to buyers during the reporting period[16]. - The average selling price per square meter for properties sold was RMB 8,550.4, a decrease of 11.5% from RMB 9,663.6 in 2017, mainly due to the delivery of lower-priced properties[6]. - The group achieved contracted sales of approximately RMB 9.605 billion, an increase from RMB 6.1143 billion in the same period of 2017, with an average selling price per square meter rising by 26.0% to RMB 9,558.0[20]. Expenses and Costs - For the six months ended June 30, 2018, the sales and marketing expenses were approximately RMB 269.6 million, a slight decrease of about 1.4% compared to RMB 273.5 million for the same period in 2017[6]. - General and administrative expenses for the same period were approximately RMB 288.5 million, a decrease of about 16.3% from RMB 344.5 million in 2017[6]. - The total unaudited employee costs for the six months ended June 30, 2018, amounted to approximately RMB 234.7 million, representing a 20.7% increase from RMB 194.5 million in the same period of 2017[171]. Investments and Property Development - Fair value gains from investment properties surged by 852.9% to approximately RMB 715.6 million, compared to RMB 75.1 million in the same period of 2017, primarily driven by new investment properties in Beijing[16]. - The group has ongoing projects with a total land area of 203,406 square meters in Anhui Province, expected to be completed by June 2018[49]. - The total estimated built-up area of ongoing projects is approximately 2,691,287 square meters, indicating significant growth potential for the group[51]. - The company has several properties under development, with varying completion rates, indicating ongoing market expansion efforts[64][71][75]. - The company has signed land use rights contracts for future developments, indicating a strategic focus on expanding its property portfolio[82]. Debt and Financing - The total bank loans and other borrowings due within one year are approximately RMB 5.2586 billion, while those due after one year are approximately RMB 7.3112 billion[108]. - The debt-to-asset ratio stands at 78.7% as of June 30, 2018, slightly up from 78.5% in the previous year[111]. - The company issued bonds with a principal amount of USD 200,000,000 at an interest rate of 15%, maturing in 2020[137]. - The net proceeds from the issuance of bonds due in 2019 amounted to approximately USD 58 million, intended for general corporate purposes[124]. Shareholder Information - As of June 30, 2018, the total issued share capital of the company was 6,093,451,026 ordinary shares[142]. - Huang Huanming holds 13,500,000 shares directly, representing 0.22% of the company's equity, and has control over 5,086,500,000 shares, representing 83.47%[142]. - The company has pledged a total of 1,602,948,000 shares, approximately 26.31% of the total issued share capital, as collateral for noteholders[157]. - The company’s major shareholder, Yincheng Limited, holds 5,086,500,000 shares, representing 83.47% of the equity[153]. Corporate Governance - The company has complied with all provisions of the corporate governance code as set out in Appendix 14 of the listing rules during the six months ended June 30, 2018[180]. - The audit committee reviewed the accounting principles and practices adopted by the group for the six months ended June 30, 2018[183]. Market Outlook - The company continues to monitor the real estate market, particularly in the Yangtze River Economic Belt, where growth is expected to exceed that of first-tier cities[15]. - The management remains focused on strategic investments and market expansion to enhance overall performance and shareholder value[18].
明发集团(00846) - 2019 - 中期财报