Revenue and Profitability - For the six months ended June 30, 2019, the total revenue of Sunac China Holdings Limited was RMB 76.84 billion, a significant increase of 64.9% compared to RMB 46.58 billion for the same period in 2018[11]. - The property sales revenue for the same period was RMB 73.42 billion, representing a 65.6% increase from RMB 44.34 billion in the previous year[12]. - The total revenue, including joint ventures and associates, was RMB 129.27 billion, an increase of approximately 82.4% from RMB 70.89 billion in the previous year[11]. - The company achieved a net profit attributable to owners of RMB 100.48 billion, a substantial increase of 71.0% from RMB 58.75 billion in the same period of 2018[11]. - The company's gross profit for the six months ended June 30, 2019, was RMB 19.35 billion, an increase of RMB 7.82 billion (approximately 67.9%) compared to RMB 11.53 billion for the same period in 2018[16]. - The net profit attributable to the company's owners reached approximately RMB 10.29 billion, a year-on-year increase of 61.7%, while adjusted net profit was approximately RMB 12.66 billion, growing about 128.4% year-on-year[44]. - The company reported a net profit for the period of RMB 11,291,109 thousand, up from RMB 6,777,728 thousand in 2018, marking a significant increase of 66.9%[104]. Costs and Expenses - The group's sales cost for the six months was RMB 57.48 billion, up 64.0% from RMB 35.05 billion in the same period of 2018, primarily due to the increase in delivered property area[15]. - Sales and marketing costs increased by 33.5% to RMB 2.56 billion for the six months ended June 30, 2019, compared to RMB 1.92 billion for the same period in 2018[17]. - Administrative expenses rose by 38.9% to RMB 4.07 billion for the six months ended June 30, 2019, compared to RMB 2.93 billion for the same period in 2018[17]. - Other income and gains decreased to RMB 5.19 billion for the six months ended June 30, 2019, from RMB 5.35 billion for the same period in 2018[18]. - Other expenses and losses increased to RMB 1.06 billion for the six months ended June 30, 2019, primarily due to impairment provisions for the investment in LeEco amounting to RMB 700 million[19]. Assets and Liabilities - The total assets as of June 30, 2019, amounted to RMB 870,318,117 thousand, compared to RMB 716,659,990 thousand at the end of 2018, an increase of 21.5%[102]. - Total liabilities reached RMB 790,621,628 thousand, compared to RMB 643,553,421 thousand in 2018, indicating an increase of 22.9%[102]. - The total borrowings increased from RMB 229.41 billion as of December 31, 2018, to RMB 302.08 billion as of June 30, 2019[35]. - The net debt to total assets ratio increased to 18.9% as of June 30, 2019, compared to 15.2% as of December 31, 2018[36]. - The total land reserve of the group, including joint ventures and associates, was approximately 204 million square meters, with equity land reserves of about 136 million square meters as of June 30, 2019[52]. Cash Flow and Financing - The company recorded a net cash inflow from operating activities of RMB 43.08 billion, primarily due to increased property pre-sale revenue[34]. - The cash and cash equivalents increased by 14.8% from RMB 120.20 billion as of December 31, 2018, to RMB 138.00 billion as of June 30, 2019[33]. - The company plans to maintain liquidity and aims to reduce the debt ratio by controlling land investments and increasing operational cash flow in the second half of 2019[36]. - The company successfully issued $600 million 8.375% preferred notes due in 2021 and $800 million 7.875% preferred notes due in 2022 during the reporting period[90]. - The company has a financing agreement with ICBC (Asia) for a term loan of RMB 1 billion, with a duration of 3 years[92]. Corporate Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange and has complied with all applicable provisions as of June 30, 2019[57]. - The audit committee, consisting of four independent non-executive directors, has reviewed the company's financial reporting procedures and internal controls for the six months ended June 30, 2019[98]. - The independent auditor has reviewed the interim financial information and found no significant issues, confirming compliance with Hong Kong Accounting Standards[100]. - The company emphasizes the importance of good corporate governance and regularly discusses performance and operational strategies at board meetings[57]. Employee and Stock Options - As of June 30, 2019, the group had a total of 43,100 employees in mainland China and Hong Kong, with employee costs amounting to RMB 4.21 billion for the six months ended June 30, 2019[96]. - The company has adopted stock option plans in 2011 and 2014 to attract and retain talent, allowing eligible employees to purchase shares[96]. - The total number of stock options granted under the 2011 stock option plan is 99.9 million, with 96.46 million options exercised[62]. - The stock option plans aim to motivate employees and recognize their contributions to the company[58]. - The company recognized a total expense of RMB 59.12 million for share options granted to directors and employees for the six months ended June 30, 2019, down from RMB 146.52 million in the same period of 2018[180]. Market Presence and Strategy - Sunac has established a nationwide layout in first, second, and strong third-tier cities, managing operations across eight major regions in China[11]. - The company continues to expand its market presence and enhance its competitive advantage in the real estate sector[4]. - The group expects to have over 420 projects for sale in the second half of 2019, with total saleable resources estimated to exceed RMB 570 billion, over 80% of which are located in first and second-tier cities[47]. - The group aims to maintain a long-term downward trend in leverage while ensuring sufficient liquidity and controlling investment scale[47]. - The group will continue to focus on enhancing the operational and profitability capabilities of its non-real estate businesses, aiming to cultivate new growth points for the future[47].
融创中国(01918) - 2019 - 中期财报