Profit Attributable to the Owners of the Company Increased by 51.9% to RMB224.5 Million Contracted Sales Increased by 17.5% to RMB2,658.0 Million
For the year ended 31 December 2018
Profit for the year
Profit Attributable to the Owners of the Company
Earnings per Share (RMB cents)
Proposed Final Dividend (HK cents)
HONG KONG, CHINA - Media OutReach - 28 March 2019 - Ever Reach Group (Holdings) Company Limited ("Ever Reach Group" or the "Company"; together with its subsidiaries, the "Group", Stock Exchange stock code: 3616), one of the leading real estate development companies in Xuchang City, Henan Province, announce today its annual results for the year ended 31 December 2018 (the "Year").
For the year ended 31 December 2018, the Group's total revenue increased by 21.5% from RMB1,549.9 million in 2017 to RMB1,883.6 million in 2018. During the Year, the gross profit increased by 55.6% to RMB629.9 million. Gross profit margin was approximately 33.4% in 2018, representing an increase of 7.3 percentage points from 26.1% in 2017. The profit attributable to the owners of the Company increased by 51.9% to approximately RMB224.5 million. The basic earnings per share increased by 50% to RMB24 cents as compared with 2017. The Board of Directors recommended a final dividend of HK5.9 cents per share.
During the year under review, sales of properties contributed to 99.9% (2017:99.8%) of the Group's total revenue. The sales of residential properties amounted to RMB1,247.4 million, accounting for 66.3% of the sales of properties; sales of commercial properties amounted to RMB548.6 million, accounting for 29.2% of the sales of properties. The increase in sales of residential properties was mainly due to the effect of increase of recognised ASP per sq.m from approximately RMB4,012 in 2017 to approximately RMB5,336 in 2018. The increase in the sales of the commercial properties was primarily due to the joint effect of the increase of approximately 44.1% in GFA recognised for commercial properties and the increase in recognised ASP per sq.m. from RMB9,325 in 2017 to RMB10,054 in 2018.
During the Year, the Group actively launched different real estate projects. Among them, the sales of Mingmen Xijun, Changge Sunshine City and King of the North achieved satisfactory results. The total contracted sales increased by 17.5% to RMB2,658.0 million as compared with 2017.
For land reserves, the Group acquired several parcels of land reserves in Yanling County and Yuzhou City with a site area of approximately 94,364 sq.m. during the Year. As at 31 December 2018, the total land reserves of the Group amounted to 3,462,634 sq.m., out of which 181,451 sq.m. was completed, 1,509,500 sq.m. was under development, and 1,771,683 sq.m. was planned GFA held for future development.
For financial, the Company raised a net proceed of RMB309.8 million from the IPO after deducting underwriting commissions and related expenses. Coupled with the growth in contracted sales and satisfactory collection of proceeds from property sales, the capital adequacy ratio was significantly improved. As of 31 December 2018, the Group's cash and cash equivalents amounted to approximately RMB419.5 million (at 31 December 2018: RMB165.0 million) and caused the Group's debt to equity ratio to decrease to 65.3%.
Looking ahead, Mr. Li Xiaobing, Chairman and Executive Director of Ever Reach Group said, "2018 marked a milestone in the development history of the Group. The Group was successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited on 12 November 2018, becoming the fourth real estate company in Henan Province which was listed in Hong Kong, as well as the first listed real estate company in Xuchang City listed on the Stock Exchange. We will continue to enhance the brand awareness and influence of Ever Reach, consolidate the industry position of the Group, further enhance the corporate governance level of the Company, and fully leverage on the strength of the international capital market to achieve better and more rapid development of the Company. The Group plans to expand its business through mergers, acquisitions, investments, joint ventures and business cooperation. With the Group's strong strength in grasping market opportunities, its sound brand awareness in the industry, and the growth potential of the real estate market in Xuchang City, it is believed that the business of the Group will continue to grow."
About Ever Reach Group
Ever Reach Group one of the leading real estate development companies in Xuchang City, Henan Province. It primarily focuses on developing residential projects and is involved in the development of commercial properties to a lesser extent. In addition, it engages in urban redevelopment schemes initiated by local government in order to access potentially available land reserves for its property development. It commenced its property development business with a primary focus on Xuchang City and expanded in other strategically targeted areas in Henan Province. With a strong track record of more than 26 years in property development, it has been specialising in developing medium-scale to large-scale property projects in Henan Province.