LJZ(SH:900932)2019-03-29 16:00Financial Performance - In 2018, the company achieved a total operating revenue of CNY 12.639 billion, representing a growth of 35.54% compared to 2017[4]. - The net profit attributable to shareholders was CNY 3.350 billion, an increase of 7.04% year-on-year[4]. - The company's operating revenue for 2018 was CNY 12.64 billion, representing a 35.54% increase compared to CNY 9.32 billion in 2017[42]. - The net profit attributable to shareholders for 2018 was CNY 3.35 billion, up 7.04% from CNY 3.13 billion in 2017[42]. - The basic earnings per share for 2018 was CNY 0.9966, reflecting a 7.04% increase from CNY 0.9310 in 2017[43]. - The total assets at the end of 2018 were CNY 78.11 billion, a decrease of 3.78% from CNY 81.18 billion at the end of 2017[42]. - The net cash flow from operating activities for 2018 was CNY 4.32 billion, a significant recovery from a negative cash flow of CNY -5.36 billion in 2017[42]. - The company's net assets attributable to shareholders increased by 12.4% to CNY 16.09 billion at the end of 2018 from CNY 14.32 billion at the end of 2017[42]. - The weighted average return on equity for 2018 was 22.03%, slightly down from 22.19% in 2017[43]. - The company reported a quarterly revenue of CNY 5.31 billion in Q2 2018, which was the highest among the four quarters[45]. - The net profit attributable to shareholders in Q4 2018 was CNY 1.20 billion, marking a strong finish to the year[45]. Real Estate Operations - The average occupancy rate for mature Grade A office buildings in Shanghai was approximately 88%, with an average rent of CNY 8.47 per square meter per day, up over 6% year-on-year[6]. - The average occupancy rate for mature Grade A office buildings in Tianjin was around 58%, with an average rent of CNY 3.45 per square meter per day[6]. - The total building area of commercial properties exceeded 440,000 square meters, with occupancy rates for Lujiazui 96 Plaza and Lujiazui 1885 reaching 97% and 100% respectively[12]. - The company opened two L+MALLs in Tianjin and Shanghai in 2018, expanding its retail footprint[12]. - The company operates four business hotels, generating total revenue of CNY 158 million in 2018[14]. - The GOP rate for Mingcheng Hotel was 45.57% with an occupancy rate of 58.48%[14]. - The company has ongoing construction projects with a total building area of 302,354 square meters, expected to be completed in 2019[10]. - The company achieved a sales revenue of 1.041 billion RMB in 2018, reflecting an 8.94% year-on-year growth, with a venue utilization rate of 70.19%, up 5.60% from 2017[17]. - The residential property segment generated sales revenue of 5.91 billion RMB in 2018, primarily from the sale of residential projects in Shanghai, Tianjin, and Suzhou, with an overall sell-through rate of approximately 62%[20]. - The company has a land reserve totaling 808,134 square meters, with 244,802 square meters located in Shanghai[23]. Financial Strategy and Investments - The company plans to distribute cash dividends of 4.99 RMB per 10 shares, totaling 1.678 billion RMB, along with 672 million shares as bonus shares, pending shareholder approval[27]. - The financial services segment, including Lujiazui Trust and Lujiazui Guotai Life, is a key focus for the company, aiming for synergy between real estate and finance[54]. - The company plans to maintain a strategy of long-term holding of core properties while short-term selling or transferring non-core assets[55]. - The company aims to enhance project development and operational efficiency to maximize shareholder profits through a "real estate + finance" dual-drive strategy[55]. - The company plans to invest approximately ¥116.85 billion in real estate operations and ¥19.35 billion in financial services for the upcoming year[95]. - The company aims to enhance its financial capabilities and risk control measures, emphasizing a collaborative approach across its licensed financial institutions[94]. - The company is committed to exploring new business models that leverage both online and offline commercial opportunities in response to rapid technological advancements[154]. Market Trends and Challenges - The average transaction price for residential properties in Shanghai rose by 13% year-on-year to 53,377 yuan per square meter, driven by the influx of mid-to-high-end projects[134]. - The market for Grade A office buildings in Shanghai is expected to face further increases in vacancy rates, surpassing the highest levels seen during the 2008 financial crisis[128]. - The overall real estate market in Shanghai is anticipated to stabilize with ongoing government regulations aimed at controlling price increases and maintaining market balance[135]. - The company recognizes the need for personalized solutions for large tenants, aiming to attract more high-profile clients through tailored product designs[133]. - The commercial property sector faces challenges from e-commerce and intense competition, but there are opportunities for transformation through online and offline integration[146]. Corporate Governance and Compliance - The company ensures the independence of its financial accounting departments and decision-making processes[170]. - The company emphasizes the establishment of a complete and independent organizational structure for its subsidiaries[170]. - The company guarantees that its subsidiaries will operate independently without reliance on the parent company for business activities[170]. - The company aims to strictly control related party transactions to minimize ongoing related transactions[171]. - The company has not received a conclusion from the China Securities Regulatory Commission regarding an ongoing investigation[171]. - The company is committed to fair pricing for unavoidable related party transactions[171].