Since 2016, the Group has taken the lead in entering Guangdong-Hong Kong-Macao Greater Bay Area, and has successively obtained a number of quality projects in Shenzhen, Jiangmen and Macau. In 2018, it established a joint venture company in Hong Kong to formally enter the Hong Kong real estate market; and purchased the quality properties of Shanghai from Mr. Shum Tin Ching, Chairman of the Group, thus enhancing its brand influence in the Yangtze River Delta Region. In addition, the Group also succeeded in expanding its business coverage to key provincial capital cities, including Guiyang and Urumqi. The Group also ventured into countries and regions along the “Belt and Road” initiative, such as acquiring fine and parcels in Cambodia, signifying a new level in the Group’s international development.
Looking back in the first half of 2018, under the category specific and city-specific adjustment and control measures of the central government, the growth of the national property market gradually slowed down, but the sales still hit record high time and again. During the Reporting Period, the investment in national property development increased by 9.7% year-on-year to RMB5.6 trillion. For commodity properties, the sales amount reached RMB6.7 trillion, representing an increase of 13.2% as compared to the same period last year, and the sold area was 770 million sq.m., representing an increase of 3.3% as compared to the same period last year. The Group sustained a steady growth in sales by precisely capturing the home purchase demand in second-tier and third-tier cities and adopting proactive sales tactics in response to the regional coordinated development strategy of the PRC.
During the first half of 2018, the Group persisted in its region-focused development strategy and achieved significant growth in its key performance indicators. For the six months ended 30 June 2018, the Group’s revenue increased by approximately 42% to approximately RMB4.13 billion as compared to the same period in 2017. Profit attributable to the owners of the Company increased by approximately 89% to RMB970 million as compared to the same period in 2017, and the earnings per share amounted to approximately RMB39.70 cents.
During the first half of 2018, despite tightening control policies imposed on the industry, the Group achieved good results by making timely adjustments to its sales strategy and quickening the recovery cycle in light of the specific conditions in different markets. For the six months ended 30 June 2018, the Group’s contracted sales amounted to approximately RMB7.36 billion, representing a periodon-period increase of 90%, and the contracted sales area amounted to approximately 719,000 sq.m., representing a period-on-period increase of 54%. The average contracted sales reached RMB10,226 per sq.m., representing a periodon-period increase of 23%.
During the first half of 2018, the Group ventured into certain key cities with high growth potentials and acquired 12 premium projects at a low premium in 8 regions, including Hong Kong, Guangdong, Shanghai, Taizhou, Changzhou, Guiyang, Urumqi and Cambodia, through project merger and acquisition, tender and bidding in the public market, joint development and so on. In terms of regional development strategy, the Group will strictly follow the “13th Five-Year Plan” of the PRC and maintain its focus on three main regions, namely the Guangdong-Hong KongMacau Bay Area, Yangtze River Delta Economic Zone and key provincial capital cities, as well as cities along the “Belt and Road” initiative.
The Group expects to see a steady and orderly property market in the second half of 2018 under the continuous stringent property control policies in the PRC. The accelerated integration of the property sector will present a good opportunity for project merger and acquisition in the second half of 2018. Against the backdrop of credit crunch and more intensive industrial concentration, the Group will get well prepared and make timely adjustment to its land acquisition strategy to acquire premium land reserves at a low premium and plan ahead for valuable lands in order to drive its performance growth in the future. Looking forward to the second half of 2018, the Group will persist with its strategic goal of “expansion and strengthening” (「做大做強」) while actively taking opportunities for project merger and acquisition to increase its premium land reserves in a diversified manner and fully enhance its core competitiveness in each segment of the property value chain. The Group will continue to pursue a sustainable growth strategy with a view to creating shareholders’ value.