2012 Annual Results Review:
Operating revenue was 2,396 million yuan, up 42% year on year, and the financial situation was relatively stable:
The company's operating revenue during the period was about RMB 2,396 million, an increase of 42% over the previous year. The increase was mainly contributed by property sales; gross profit increased 15% to 919 million yuan, and gross margin was 38%, down 9 percentage points from 2011. This was mainly due to changes in product structure. In 2012, the profit attributable to owners of the parent company was RMB 336 million, the same as last year; the core net profit was RMB 345 million, up 34% year on year, and the core net interest rate was 14%, the same as last year. The basic profit per share was RMB 0.14. The Group's net debt ratio is 54.6%, which is at a reasonable level in the industry. The group's average borrowing cost was 8.2%, cash increased 86% to 1.12 billion yuan, and banks granted credit capital of 2.4 billion yuan, which is quite well-funded.
High quality and low cost land reserves:
The company currently has a land reserve of about 7.19 million square meters, and the average land cost is only 927 yuan/square meter. The existing land is mainly distributed in Zhejiang, Jiangsu, and Anhui (Pan-Yangtze River Delta) areas. The geographical location is relatively good, and the cost performance ratio is very high. Some high-profile projects have been slow to be put on sale mainly because management wants to wait until the supporting facilities surrounding the project are more complete and can better reflect the value of the project before selling.
Accelerate turnover, improve decontamination, bring in talents, optimize management:
Since 2007, the company has developed slowly, which is very different from the style when the company was first founded in 1997. Management intends to reverse this situation, promote a “two square, two fast” operating model, speed up asset turnover, increase disposal, and gradually achieve “3? 6? 8? The best development goal for “12”. In order to improve operational efficiency and promote sales, the company carried out active performance management optimization and organizational structure adjustments, and introduced outstanding talents.
Future outlook: Management believes that government regulation is beneficial to the healthy development of the real estate market in the long run, and that China's real estate market has developed to a relatively stable level. The company will continue to focus on the Pan-Yangtze River Delta, a region with promising development prospects in the future. The company is expected to accelerate turnover, improve decentralization, improve its own operating capabilities through organizational restructuring, optimization of talent and management, and achieve profitable growth in the future through brand and management advantages