Financial Performance - The company's revenue and gross profit for the first half of 2019 were approximately RMB 20,106 million and RMB 6,707.5 million, representing significant year-on-year increases of 33.8% and 41.6% respectively[7]. - Profit attributable to the company's owners reached RMB 2,837.2 million, with basic earnings per share of RMB 46.7, reflecting year-on-year growth of 66.5% and 66.2% respectively[7]. - The company's core net profit for the first half of 2019 was approximately RMB 2,753.2 million, an increase of 55.0% compared to RMB 1,775.9 million in the same period of 2018[7]. - The total comprehensive income for the period was RMB 2,745,448 thousand, compared to RMB 2,245,607 thousand in 2018, showing an increase of about 22.2%[193]. - The company reported a financial income of RMB 224,226 thousand, up from RMB 106,152 thousand in the previous year, indicating a growth of approximately 111.1%[190]. - The cost of sales for the period was RMB 13,398,448 thousand, compared to RMB 10,291,313 thousand in 2018, reflecting an increase of about 30.4%[190]. - The company's administrative expenses decreased to RMB 1,323,494 thousand from RMB 1,402,041 thousand year-on-year, indicating a reduction of approximately 5.6%[190]. Sales and Contracted Sales - The cumulative contracted sales amount for the first half of 2019 was approximately RMB 34,690 million, a year-on-year increase of 37%, with nearly 60% of sales contributions coming from the Greater Bay Area[9]. - Contract sales for the first half of 2019 amounted to approximately RMB 34,690 million, a growth of 37.0% compared to the first half of 2018[28]. - The total area sold during the same period was approximately 1,961,477 square meters, an increase of 38.5% year-on-year[28]. - The average selling price for contract sales in the first half of 2019 was approximately RMB 17,686 per square meter, slightly down from RMB 17,880 per square meter in the same period of 2018[28]. Land Acquisition and Reserves - The company acquired 15 land parcels for a total consideration of approximately RMB 16,206 million, with an average land cost of RMB 6,600 per square meter, adding approximately 2.5 million square meters to its land reserves[11]. - As of June 30, 2019, the company had a total land reserve of approximately 25.8 million square meters across 167 real estate projects in 47 cities, with 54.6% of this reserve located in the Greater Bay Area[11]. - The total land area for the projects listed is 1,646,000 square meters, with a total built-up area of 2,853,000 square meters[103]. Project Development - The company completed new projects with a total construction area of approximately 1.2 million square meters in the first half of 2019[30]. - The total construction area for various projects is approximately 3,000,000 square meters, with 1,200,000 square meters completed and 1,800,000 square meters under development[85]. - The company has a total of 36 ongoing property development projects, with a combined area of approximately 4,000,000 square meters[118]. - The company has ongoing projects totaling 1,653,000 square meters, which accounts for about 58% of the total built-up area[103]. Financial Management and Debt - The group successfully issued RMB 4.75 billion, RMB 6.85 billion, and RMB 5.55 billion in asset-backed securities during the reporting period, enhancing financing diversification and cash flow management[13]. - As of June 30, 2019, the group's cash and bank deposits reached RMB 29.9798 billion, with a current ratio of 1.3, indicating strong liquidity[18]. - The group repurchased USD 250 million of 7.25% senior notes due 2020, equivalent to approximately 31.65% of the outstanding principal, to optimize debt structure and reduce future interest expenses[17]. - The group's leverage ratio was 33.0% as of June 30, 2019, down from 37.5% on December 31, 2018[66]. - Total borrowing costs for the group amounted to RMB 5,050.1 million for the six months ended June 30, 2019, an increase of approximately RMB 271.6 million or 5.7% compared to the same period in 2018[67]. Market Outlook and Strategy - The group aims to maintain a "cash is king" strategy, focusing on rational growth and flexible sales strategies while continuing to seek low-cost, diversified financing channels[23]. - The group anticipates that the real estate market will continue to stabilize, driven by government policies aimed at maintaining land and housing prices[19]. - The Guangdong provincial government has implemented action plans to accelerate the development of the Greater Bay Area, providing more opportunities for the group's market expansion[20]. - Future expansion plans include entering new markets in central and western China, targeting a 15% increase in market share by 2025[98]. Employee and Shareholder Information - The group employed approximately 14,900 employees as of June 30, 2019, an increase from approximately 14,200 employees on December 31, 2018[72]. - Employee costs, including director remuneration, amounted to approximately RMB 852.4 million for the six months ended June 30, 2019[72]. - As of June 30, 2019, the major shareholder, Guo Yingcheng, held 1,551,098,756 shares, representing 25.51% of the issued share capital[175]. - The total issued shares as of June 30, 2019, was 6,080,907,697 shares, assuming all options granted under the scheme were exercised[178]. Stock Options and Incentives - A total of 51,700,000 stock options were granted under the existing stock option plan for the six months ended June 30, 2019[142]. - The new stock option plan allows for a maximum of 608,090,769 shares to be issued upon full exercise, representing 10.0% of the issued share capital as of the adoption date[158]. - The share option scheme is valid until June 18, 2029, after which no further options can be granted, but previously granted options remain valid[172].
佳兆业集团(01638) - 2019 - 中期财报