2014-10-26 16:00Financial Performance - Net profit attributable to shareholders rose by 4.84% to RMB 6.46 billion for the first nine months of 2014, compared to the same period last year[3]. - Basic earnings per share for Q3 2014 was RMB 0.150, reflecting a 2.74% increase year-on-year[3]. - The company reported a net profit attributable to shareholders of RMB 1.65 billion in Q3, a year-on-year increase of 2.8%[11]. - The company’s investment income for the first nine months was RMB 1.629 billion, up 216.1% year-on-year[11]. - The weighted average return on equity decreased by 1.03 percentage points to 8.28% for the first nine months of 2014[3]. - The company does not anticipate significant changes in cumulative net profit compared to the same period last year[19]. Asset and Shareholder Information - Total assets increased by 8.51% to RMB 519.97 billion as of September 30, 2014, compared to RMB 479.21 billion at the end of 2013[3]. - The total number of shareholders reached 619,759 as of September 30, 2014[7]. - The largest shareholder, China Resources Co., Ltd., holds 14.94% of the shares, totaling 1.65 billion shares[8]. - The company’s total share count increased by 2,097,050 shares due to stock option exercises in the first nine months of 2014[5]. - The net asset per share attributable to shareholders increased by 2.10% to RMB 7.13 as of September 30, 2014[3]. Sales and Construction Activity - In Q3, the company achieved a sales area of 4.426 million square meters and a sales amount of RMB 48.15 billion, representing year-on-year growth of 15.8% and 7.4% respectively[10]. - For the first nine months, the cumulative sales area reached 12.638 million square meters with a sales amount of RMB 149.06 billion, showing year-on-year growth of 15.0% and 16.0%[10]. - The company’s new construction area for the first three quarters was 13.672 million square meters, accounting for 61.1% of the annual planned construction area[10]. - As of the end of September, the company had 19.031 million square meters of sold but uncompleted resources, with a total contract amount of approximately RMB 219.37 billion, increasing by 32.4% and 35.1% compared to the beginning of the year[11]. Financial Position and Debt Management - The company maintained a net debt ratio of 26.2%, a decrease of 4.4 percentage points from the beginning of the year, indicating a strong financial position[12]. - The company plans to issue debt financing instruments not exceeding RMB 15 billion, with a maximum term of 10 years, to support operational needs and adjust debt structure[23]. Risk Management and Financial Instruments - The company utilized IRS and NDF to mitigate risks associated with foreign currency borrowings, effectively avoiding significant losses from interest and exchange rate fluctuations[25]. - The fair value change of IRS contracts for the period from January to September 2014 was RMB 280.44 million, while the NDF contracts had no impact on the company's profit or loss[26]. - The independent directors of the company believe that the use of IRS and NDF financial instruments is a prudent and reasonable arrangement to avoid excessive losses from currency and interest rate fluctuations[25]. - As of September 30, 2014, the company held interest rate swap contracts (IRS) with a total amount of RMB 142,454.99 million, down from RMB 182,815.55 million at the end of 2013, resulting in a loss of RMB 280.44 million for the period from January to September 2014, representing 1.34% of net assets[27]. - The company entered into non-deliverable forward contracts (NDF) amounting to RMB 199,956.25 million as of September 30, 2014, compared to RMB 0.00 million at the end of 2013, with no impact on profit or loss for the period[27]. - The total derivative contracts held by the company as of September 30, 2014, amounted to RMB 342,411.24 million, which is 3.22% of the company's net assets[27]. Market and Industry Context - The land supply area for residential land decreased significantly by 54.1% year-on-year, with transaction area down by 59.7%[13]. - The company added 27 new projects in the first nine months, with a total land area of approximately 1.316 million square meters, ensuring future development needs[13]. - The company engaged in multiple investor meetings throughout 2014, discussing daily operations and industry outlook with over 50 investors in various cities[21][22]. - The inventory turnover period for major cities increased from 15.3 months at the end of June to 16.4 months by the end of September[10]. Corporate Governance and Commitments - The company has committed to supporting Vanke's development and maintaining neutrality in any competition-related disputes with Vanke, as per the commitment made by its largest shareholder, China Resources Group, since 2001[18].