SMC(SH:600823)2019-03-21 16:00Financial Performance - In 2018, the company's operating revenue reached CNY 20,674,232,949.58, an increase of 10.74% compared to CNY 18,668,587,481.52 in 2017[22] - The net profit attributable to shareholders was CNY 2,403,819,190.87, reflecting a growth of 7.96% from CNY 2,226,566,295.68 in the previous year[22] - The basic earnings per share for 2018 was CNY 0.64, an increase of 8.47% compared to CNY 0.59 in 2017[23] - The total assets of the company as of the end of 2018 amounted to CNY 108,320,247,287.93, representing a growth of 17.84% from CNY 91,918,888,925.92 in 2017[22] - The net cash flow from operating activities was CNY 3,978,209,038.07, a decrease of 6.36% compared to CNY 4,248,570,698.33 in 2017[22] - The net profit after deducting non-recurring gains and losses was CNY 2,015,996,032.71, which is a 20.05% increase from CNY 1,679,324,567.35 in 2017[22] - The company's total equity attributable to shareholders reached CNY 23,676,184,097.97 at the end of 2018, an increase of 8.79% from CNY 21,764,135,648.04 in 2017[22] - The weighted average return on equity decreased by 0.2 percentage points to 10.44% in 2018, while the return on equity excluding non-recurring gains increased by 0.73 percentage points to 8.76%[24] Revenue and Sales - Total revenue for the first quarter was approximately RMB 2.67 billion, with net profit attributable to shareholders at RMB 249 million, and cash flow from operating activities was negative at RMB -349 million[25] - The company reported a total revenue of RMB 30.63 billion for the year, with a net profit attributable to shareholders of RMB 2.73 billion, reflecting a significant increase in profitability[30] - The company achieved operating revenue of 20.67 billion RMB, a year-on-year increase of 10.74%[41] - Net profit reached 4.73 billion RMB, reflecting a year-on-year growth of 27.17%[41] - The company reported a signed contract amount of 27.1 billion RMB, up 25% compared to the same period in 2017[42] - The company’s property sales revenue was 19.28 billion RMB, while non-property sales revenue accounted for 6.74% of total revenue[41] Investments and Acquisitions - The company acquired 100% equity of Shanghai Danxin Enterprise Management Co., Ltd. for RMB 5 million, which holds a 60% stake in a key development project in Shenzhen[33] - The company successfully bid for a land use right in Shenzhen for RMB 23.943 billion, covering an area of 321,900 square meters with a total construction area of 1.3645 million square meters[34] - The company completed the issuance of corporate bonds totaling 3.5 billion RMB, facilitating future financing[43] - The company has a total of 21 million square meters of land for future development, with various ongoing projects across multiple regions[64] Financial Management and Debt - The company’s financial expenses increased by 66.08% due to a larger loan scale[45] - The company’s investment activities generated a net cash flow of -11.01 billion RMB, primarily due to increased investment in self-owned properties[46] - The total financing amount at the end of the period is 1,971,954,910 RMB, with an average financing cost of 5.79%[73] - The total amount of guarantees provided by the company, including those to subsidiaries, is RMB 32.10 million, which accounts for 13.56% of the company's net assets[104] - The company has provided a joint liability guarantee of RMB 150 million for a loan taken by its wholly-owned subsidiary, with an outstanding balance of RMB 150 million as of the reporting period[105] Shareholder Information and Dividends - The company plans to distribute a cash dividend of CNY 2.60 per 10 shares, totaling CNY 975,303,747.86, based on a total share capital of 3,751,168,261 shares[5] - In 2018, the company distributed a cash dividend of 2.6 RMB per 10 shares, with a total profit attributable to ordinary shareholders of approximately 975.3 million RMB, representing a payout ratio of 40.57%[81] - The total number of ordinary shareholders at the end of the reporting period was 53,974, an increase from 52,276 at the end of the previous month[113] Operational and Strategic Focus - The company operates in over 20 cities, focusing on commercial real estate development and management, with a business model emphasizing both rental and sales[32] - The company has a strategic focus on expanding its commercial real estate portfolio, with multiple projects in key urban areas[67] - The company plans to achieve contract sales of 30 billion RMB and a contract sales area of 1.53 million square meters in 2019, with capital expenditures estimated at 19.4 billion RMB[77] - The company is committed to strategic financial management to mitigate risks associated with its substantial liabilities and ensure long-term growth[101] Governance and Compliance - The company has committed to ensuring timely disclosure of information that may affect its operations, with strict adherence to agreements regarding non-competition and trademark usage[82] - The company has no significant litigation or arbitration matters during the reporting period, indicating a stable legal standing[87] - The company has maintained a positive integrity status, with no significant debts or court judgments pending against it[88] - The board of directors actively fulfilled their responsibilities, ensuring compliance with laws and regulations, and provided constructive opinions for decision-making[142] Employee and Management Information - The total number of shares held under the employee stock ownership plan was 2,313,168, representing 0.062% of the company's total share capital[89] - The total pre-tax remuneration for Liu Saifei, the president, was RMB 3.4353 million[125] - The total pre-tax remuneration for Zhang Jie, the vice president and CFO, was RMB 2.1762 million[125] - The company has introduced leadership development courses for senior management through renowned consulting firms[135] Risks and Future Outlook - The company has outlined potential risks in its future development strategies, which investors should be aware of[6] - The company faces complex and severe risks in the domestic and international environment but remains optimistic about long-term economic trends[78] - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2020[128]