Zitong Financial App News, China Evergrande Group (03333) released the annual results for 2017.
In 2017, turnover increased by 47.1% over the same period last year to 311.02 billion yuan (same as below)
Gross profit increased 88.9% year on year to 112.26 billion yuan; gross profit margin rose 8 percentage points to 36.1%
Net profit rose 110.3% year-on-year to 37.05 billion yuan; earnings per share was 1.833 yuan.
It is worth mentioning that Evergrande's net debt ratio fell to 184 per cent from 432 per cent in 2016.
2018 the contract sales target is 550 billion yuan.
Of this total, the income from property development increased by 48.3% to 302.38 billion yuan, mainly due to a 29.0% increase in confirmed sales property area over 2016, while the average sales price of property increased by 15.0% over 2016. Property management income reached 3.024 billion yuan, an increase of 55.2% over 2016, mainly due to the increase in the area of management services provided by the Group in 2017. Investment property income reached 811 million yuan, an increase of 25.3%, mainly due to the rental of more investment properties in 2017.
According to the announcement, the profit of the core business was 40.51 billion yuan, an increase of 94.7 percent over 2016, and the profit margin of the core business was 13.0 percent, up 3.2 percent from 2016.
In 2017, contract sales totaled 500.96 billion yuan, up 34.2 percent over 2016; contract sales area was 50.299 million square meters, up 12.6 percent over 2016; and the average contract sales price was 9960 yuan per square meter, up 19.2 percent over 2016.
There are 178 new projects in Beijing, Shenzhen, Hefei, Changsha, Chengdu, Chongqing, Haikou, Sanya, Dalian, Changchun and other cities, with a total of 656 projects on sale. The steady growth in sales performance is mainly due to the Group's ability and measures to continuously improve the added value of its products, the large number of projects on sale and available resources, as well as its solid and pragmatic sales strategy and sales execution.
In 2017, the group's development model changed from "scale model" to "scale + benefit type", paying more attention to growth efficiency and quality, especially in the face of hot sales in third-and fourth-tier cities, focusing on absorbing a number of high-quality land reserves in third-tier cities. The urban layout of existing projects has been continuously optimized. In the whole year, the Group purchased 226 new land reserves and further purchased surrounding land for 39 existing projects. the new projects are evenly distributed in Shanghai, Shenzhen, Changsha, Nanjing, Chengdu, Hangzhou, Wuhan, Jinan, Taiyuan, Chongqing, Zhengzhou, Zhuhai, Zhongshan, Wuxi, Wenzhou and other first-and second-tier cities.
In the whole year, the construction area of newly purchased land reserve is 126 million square meters, and the average floor price is 1889 yuan ╱ square meters. As of December 31, 2017, the total number of land reserve projects of the group is 766, distributed in 228 cities in China, covering all first-tier cities, municipalities directly under the Central Government, provincial capitals (except Taipei and Lhasa) and most economically developed and potential prefecture-level cities, with a total planned construction area of 312 million square meters, an average land price of 1711 yuan ╱ square meters, and a land reserve plateau value of 533.6 billion yuan, of which 410.4 billion yuan has been paid The outstanding amount is RMB 123.2 billion. Among them, the land reserve plateau value of first-and second-tier cities reached 367.5 billion yuan, accounting for 69%, the average floor land price was 2210 yuan ╱ square meters, the third-tier city land storage plateau value was 166.1 billion yuan, accounting for 31%, the average floor price was 1141 yuan ╱ square meters.
In addition, the Group has taken a variety of measures to fully implement the "three low and one high" business model, and successfully reduced the debt ratio by introducing war investment, increasing profits and controlling expenses. By the end of 2017, the group's net assets increased to 242.2 billion yuan. At the same time, the Group offered to exchange a total of US $3.2 billion of existing priority notes maturing from 2018 to 2020 on June 8, 2017.
On June 28, 2017, US $2.54 billion was successfully exchanged, accounting for 79.3% of the total number of old bills, plus the exchange premium and accumulated interest payable into a total of US $2.82 billion of new notes maturing in 2021, 2023 and 2025, respectively. The Group has redeemed all the remaining US $660 million of old bills in August 2017. at present, there are no overseas priority notes due and returned by 2020.
It is worth noting that the scale continues to maintain moderate growth, with the group's contract sales target of RMB 550 billion in 2018. The Group will take a variety of measures to increase the efficiency of the enterprise, mainly to increase profits, reduce costs and control expenses.
Control the land cost from the land procurement stage, carry out strict profit calculation to ensure the gross profit level, continuously and deeply study practical and effective project marketing methods, improve management informatization, increase management efficiency, and reduce labor costs; systematically study the trends of the macro-economy and the real estate industry, do a good job in the overall capital planning and operation of the group, give full play to Evergrande's brand advantages and credit advantages, and strive to further control financing costs.