SHIMAO GROUP(00813)2019-04-18 10:26Financial Performance - The company reported a total revenue of RMB 70,426 million for the year 2018, representing a year-on-year increase of approximately 22.5%[10]. - The net profit attributable to shareholders was RMB 21,430 million, reflecting a growth of 17.5% compared to the previous year[13]. - The gross profit for 2018 was RMB 18,225 million, with a gross margin of approximately 25.9%[12]. - The basic earnings per share for the year were RMB 264.7, an increase from RMB 232.4 in 2017[15]. - The total revenue for the group in 2018 was approximately RMB 85.513 billion, an increase of 21.4% compared to RMB 70.426 billion in 2017[67]. - The gross profit for 2018 was RMB 26.949 billion, up from RMB 21.430 billion in 2017, reflecting a significant growth in profitability[67]. - The operating profit for 2018 reached RMB 23.209 billion, compared to RMB 17.679 billion in 2017, indicating improved operational efficiency[67]. - The net profit attributable to shareholders was RMB 8.835 billion in 2018, an increase from RMB 7.840 billion in 2017[67]. - The total revenue from self-owned hotels reached RMB 1.91 billion, an increase of 11.7% year-on-year, with EBITDA of RMB 590 million, up 5.4%[53]. - The group achieved a total rental income of RMB 1,091 million in 2018, compared to RMB 992 million in 2017, reflecting a growth in commercial and office properties[52]. Sales and Market Expansion - The total contract sales for the year 2018 reached RMB 176.15 billion, a 75% increase year-on-year, exceeding the target of RMB 140 billion by 126%[20]. - The average selling price was RMB 16,482 per square meter, with a total sales area of 10.687 million square meters[20]. - The company plans to launch approximately 14.2 million square meters of saleable area in 2019, totaling about 19.45 million square meters of saleable area including existing inventory[42]. - The company plans to continue enhancing its financial policies and focus on cash flow management in 2019[31]. - The company plans to enhance its market presence by entering three new cities in 2019, aiming for a 25% increase in market share in these regions[194]. - The company is exploring potential mergers and acquisitions to diversify its portfolio, with a focus on acquiring companies in the hospitality sector[192]. Land Acquisition and Development - The company has a land bank of approximately 55.38 million square meters across 264 projects in 87 cities as of December 31, 2018[4]. - The company increased land reserves by 16.15 million square meters in 2018, with 48% acquired through base price bidding, acquisitions, and partnerships[27]. - The average land cost for new land reserves is approximately RMB 5,099 per square meter, which is lower than the average land cost of RMB 5,386 per square meter as of December 31, 2018, providing effective assurance for future profit margins[46]. - The company has maintained a prudent approach to land reserve expansion, balancing development and risk control[46]. - The company acquired multiple land parcels in May and June 2018, with a total planned construction area of approximately 1,322,000 square meters for the Jiaxing Pinghu project, costing RMB 8,996 per square meter[31]. Operational Efficiency and Strategy - The company aims to improve operational efficiency and reduce costs through strategic initiatives and technology integration[3]. - The management has provided guidance for 2019, expecting revenue growth to continue in the range of 15% to 20%[3]. - The company is focusing on enhancing its product offerings through the development of new technologies and sustainable building practices[3]. - The company has optimized its management structure since 2017, enhancing operational capabilities and innovation[25]. - The company is committed to sustainability initiatives, with plans to reduce carbon emissions by 20% over the next five years through energy-efficient building practices[196]. Corporate Governance and Risk Management - The company is committed to high standards of corporate governance, adhering to the relevant codes and regulations[142]. - The board of directors consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors[144]. - The company has implemented a risk management and internal control system to identify, assess, manage, and report significant risks, aiming to enhance shareholder value and maintain the company's reputation[165]. - The audit committee has conducted an annual review of the effectiveness of the company's risk management and internal control systems, confirming their adequacy and effectiveness[172]. - The company has established a shareholder communication policy to ensure timely access to comprehensive information for shareholders[182]. Employee and Community Engagement - The total employee count as of December 31, 2018, was 9,814, with total salary expenses for the year amounting to approximately RMB 2.08 billion[102]. - The group reported a charitable donation of RMB 64,500,000 for the year, a decrease from RMB 267,873,000 in 2017[110]. - The company has implemented various measures for environmental protection, focusing on resource conservation and ecological sustainability throughout its operations[109]. - The company has established a clear process for the appointment and reappointment of directors, with a minimum term of three years for each[151]. Future Outlook - Future guidance indicates a continued emphasis on new product development and market expansion strategies to drive growth[73]. - The company has set a target for a net profit margin of 18% for the upcoming fiscal year, reflecting a strategic focus on cost management and operational efficiency[196]. - The company aims to achieve a return on equity of 12% in the upcoming year, driven by strategic investments and improved operational performance[195].