SMC(SH:600823)2018-03-22 16:00Financial Performance - In 2017, the company's total revenue reached ¥18,666,770,430.23, representing a 36.17% increase compared to ¥13,708,025,120.81 in 2016[19]. - The net profit attributable to shareholders was ¥2,225,271,290.04, a 5.17% increase from ¥2,115,814,268.99 in the previous year[19]. - The company's cash flow from operating activities significantly improved to ¥4,249,524,031.71, compared to only ¥118,815,093.77 in 2016, marking a substantial increase of 3,476.59%[19]. - Total assets increased to ¥91,917,905,956.44, an 11.34% rise from ¥82,558,642,318.63 in 2016[19]. - The basic earnings per share rose to ¥0.59, reflecting a 5.36% increase from ¥0.56 in 2016[20]. - The weighted average return on equity improved to 10.64%, up by 1.88 percentage points from 8.76% in 2016[20]. - The company achieved operating revenue of 18.67 billion RMB, a year-on-year increase of 36.17%[41]. - Net profit reached 3.71 billion RMB, reflecting a growth of 35.92% compared to the previous year[36]. - The company’s property sales revenue was 17.38 billion RMB, while non-property sales revenue accounted for 6.88% of total revenue, amounting to 1.29 billion RMB[36]. - The total contracted sales amount was 21.6 billion RMB, representing a 45% increase year-on-year, with a contracted area of 1.1 million square meters, up 28%[37]. Asset Management - The net assets attributable to shareholders at the end of 2017 were ¥21,747,283,988.63, a 9.80% increase from ¥19,806,665,500.09 in 2016[19]. - The total assets of the company included CNY 563.41 million in overseas assets, accounting for 0.61% of total assets[30]. - The company held land reserves exceeding 10 million square meters, providing strong support for future development[38]. - The company completed the acquisition of 100% equity in Shanghai Danqing Investment Management Co., Ltd. for CNY 48.97 million, gaining a 51% stake in the "Nanjing Shimao Yuhua" project[30]. - The company has a long-term equity investment balance of CNY 2,063 million[71]. - The company reported a total of 168.88 million square meters of available area for sale, with 110.50 million square meters already pre-sold[65]. Revenue Streams - The company recorded non-operating income of CNY 23.72 million from government subsidies in 2017, compared to CNY 19.27 million in 2016[24]. - The gross profit margin for property management services was 97.17%, with revenue of ¥365,030,872.03, reflecting a year-on-year increase of 44.28%[44]. - The hotel services segment achieved a revenue of ¥230,165,678.86, with a gross margin of 43.32%, marking an increase of 83.15% in revenue[44]. - The commercial real estate segment saw a revenue decline of 66.40%, with sales amounting to ¥1,531,020,087.22 and a gross margin of 21.07%[44]. Operational Highlights - The company operates in over 20 cities, focusing on commercial real estate development and management, with a business model emphasizing both rental and sales[29]. - The company completed the acquisition of the Nanjing Yuhua project and secured multiple new projects in Wuhan, Fuzhou, and Shenzhen[38]. - The company is focusing on commercial projects, with a significant portion of its investment directed towards urban development in Jiangsu and Shandong provinces[63]. - The company has ongoing projects in 12 provinces, including Jiangsu, Zhejiang, and Shandong, with significant commercial developments[64]. Financing Activities - The company issued short-term financing bonds and medium-term notes totaling 80 billion RMB, enhancing its financing capabilities[39]. - The total financing amount at the end of the period was CNY 1,714,955.56 million with an average financing cost of 5.37%[69]. - The company issued three tranches of corporate bonds in 2017, totaling RMB 40 billion with interest rates of 4.95%, 5.15%, and 5.19% respectively[127][130]. - The company maintained a loan repayment rate of 100% and an interest payment rate of 100% during the reporting period[186]. Corporate Governance - The company has a strong focus on corporate governance with a well-structured board of directors and supervisory board[144]. - The company’s independent directors play a crucial role in providing unbiased perspectives and enhancing decision-making processes[144]. - The company maintains independence in operations, personnel, assets, institutions, and finances, ensuring no interference from controlling shareholders[172]. - The company has established a scientific governance structure in compliance with relevant laws and regulations, ensuring the protection of shareholder rights[155]. Future Outlook - The company plans to achieve contract sales of CNY 24 billion and a sales area of 1.08 million square meters in 2018, with capital expenditures estimated at CNY 21 billion[77]. - Future guidance indicates a projected revenue growth of 12% for the next fiscal year, driven by new projects and market expansion strategies[106]. - The company is exploring acquisition opportunities to enhance its portfolio, targeting a 20% increase in market share through strategic mergers[106]. Employee and Management - The company employed a total of 1,820 staff, with 1,381 in technical roles, 214 in sales, and 187 in finance[149]. - The company has established training programs for senior management, middle management, and entry-level employees to enhance leadership and professional skills[152]. - The total pre-tax compensation for Liu Saifei, the President, was 4.0738 million CNY[142]. Related Party Transactions - The total amount of related party transactions for the year reached RMB 194.85 million, with significant transactions including RMB 8.14 million for purchasing goods from Ning'an Huiying Building Materials Trading Co., Ltd., accounting for 100% of similar transactions[98]. - The company’s related party transactions are expected to continue without affecting its independence[98].