Guangzhou Daily (all-powerful media reporter Zhang Zhong’an) According to the 2018 results announced by Yuexiu Property, a Chinese mainland property company listed on Hong Kong stock market on Feb 27, Yuexiu Property has overfulfilled its targeted sales for last year and achieved contracted sales of 57.78 billion Yuan, with a growth of 41.4% year-on-year; operation revenue of over 26 billion Yuan (excluding the sales of nearly 64 billion Yuan not paid by the end of last year), both of which laid a foundation for sustainable growth of results in the future.
Lin Zhaoyuan, the chairman of Yuexiu Property said, in this year, Yuexiu Property would go all out to meet sales target, make superior and stronger its core businesses including residential and commercial development, and focus on the incubation of some new businesses such as urban renewal, senior care and apartment long-term rental to promote the realization of Yuexiu Property’s rapid and high-quality development.
It’s worth noting that, at the beginning of last year, the targeted sales Yuexiu Property set is 55 billion Yuan. This means that Yuexiu Property overfulfilled the targeted sales for last year with a completion rate of 105.1% even in an environment with a slower growth of real estate sales throughout the country, among which, subtotal contracted sales in Pearl River Delta, Yangtze River Delta and Central Region reached about 53.68 billion Yuan, accounting for 92.9% of total contracted sales. Hence it sets its 2019 sales target as 68 billion Yuan, with a growth of about 20% year-on-year.
Good sales performance added brilliance to other financial indexes. As the financial report for 2018 shows, Yuexiu Property’s operation revenue reached 26.43 billion Yuan, representing a year-on-year growth of 11.1%; gross profit 31.8%, representing a year-on-year growth of 6.1%; profit attributed to shareholders 2.73 billion Yuan, representing a year-on-year growth of 20.7%; core net profit 2.81 billion Yuan, representing a year-on-year growth of 19.6%.
In addition, Yuexiu Property announced its acquisition of Pinxiu •Xingtu, a garden built on the subway line 13 at Zengcheng, Guangzhou at a cost of 14.1 billion Yuan and its acceptance of Guangzhou Metro as a shareholder through Guangzhou Metro purchasing 3.081 billion shares of Yuexiu Property it issued at a price of 2 HKD per share.
Compared to the closing share price of Yuexiu Property on Feb 27, Guangzhou Metro purchased such shares at a premium of 22%. It is stated that, Guangzhou Metro’s being a shareholder of Yuexiu Property by purchasing a so large portion of shares of Yuexiu Property at a so high premium reflects its confidence in Yuexiu Property’s managerial capacities and future development prospects.
In consideration of its continuously steady and healthy financial performance, Yuexiu Property’s Board of Directors proposed a final dividend of 0.051 HKD per share for 2018. With the addition of the interim dividend, the total dividend per share within the year would be 0.093 HKD per share, representing a year-on-year growth of 1.1%. Yuexiu Property said, as for funding liquidity, interest rate and exchange rate risks, it would focus on the recovery of sales and make full use of various financial instruments to optimize fund management for the realization of the targets including lower financing cost, diversified investment channels, reasonable debt structure and controllable exchange rate risk to protect for its higher-quality development.
In recent days, members of Yuexiu Group including Yuexiu Property and Yuexiu REIT Fund take a lot of measures. It is thought that, Yuexiu Group, as a state-owned enterprise, is advancing by dint of multiple drivers from several sectors which would create greater synergies.
Link 1: Chong Hing Bank achieved sales revenue of 3.686 billion HKD in 2018
Guangzhou Daily (all-powerful media reporter Zhang ZHong’an)
On Feb 28, Chong Hing Bank announced its 2018 results. As the announcement shows, its 2018 operation revenue and profit both reached a historical high, business in mainland developed steadily with a good profitability and a continuously increasing contribution to Yuexiu Group’s revenues. On Feb 14, 2014, Yuexiu Group acquired 75% of equity interests of Chong Hing Bank, becoming an actual controller of the latter. As at Dec 31, 2018, Chong Hing Bank’s total assets reached 190.6 billion HKD, representing a growth of 16% compared to that of last year and 2.2 times of that of 2013; operation revenue 3.686 billion HKD, representing a growth compared to that of last year; profit attributed to shareholders 1.760 billion HKD, representing a growth of 12% compared to that of last year; return on equity 9.47%; and non-performing loan ratio fell to 0.35%, much less than that of the industry in Hong Kong.
Furthermore, Chong Hing Bank’s plan to set a branch in Shanghai has been approved by China Banking and Insurance Regulatory Commission, this means Chong Hing bank has taken its first step toward expanding national presence.
Link 2 Yuexiu Financial Holdings sells Guangzhou Friendship
Guangzhou Friendship (all-powerful reporter Lin Xiaoli)
On Feb 28, Guangzhou Yuexiu Financial Holdings Group Co., Ltd. published “Announcement on the Sale of 100% of Equity Interests of Wholly-owned Subsidiary Guangzhou Friendship”, intending to transfer its 100% of equity interests of Guangzhou Friendship to Guangshang Capital, a wholly-owned subsidiary of Guangbai Group at a price of 3,831,947,900 Yuan.
