Profit for the year increased significantly to RMB489.4 million by 234.0%
HONG KONG, Apr 1, 2019 - (ACN Newswire) - The board (the "Board") of directors (the "Directors") of DaFa Properties Group Limited (the "Company", together with its subsidiaries, the "Group") is pleased to announce the consolidated results of the Group for the year ended 31 December 2018 (Reporting Period).
- Revenue was RMB5,946.0 million, representing an increase of approximately 30.1% over the same period of 2017
- Profit for the year increased significantly to RMB489.4 million by 234.0% for the year ended 31 December 2018?
- Gross profit was RMB1,582.0 million, representing an increase of 140.7% over 2017
- Properties under development increased by 39.0% to RMB11, 003.3 million.
During the Reporting Period, the Group achieved a comprehensive improvement in Gross profit and gross profit margin and a significant increase in profit for the year. The Group's total revenue increased by 30.1% from RMB 4,569.6 million for the year ended 31 December 2017 to RMB5, 946.2 million for the year ended 31 December 2018. The increase was mainly attributable to the increase in revenue from sales of properties. The Group's gross profit increased by 140.7% to RMB1, 582.1 million for the year ended 31 December 2018. Profit for the year increased significantly to RMB489.4 million by 234.0% for the year ended 31 December 2018. The Group diligently improved their abilities in using their own capital resources and showing a high standard of business management to lay a solid foundation for the company's long-term development.
Property lease income
The Group actively explored diversified financing channels and optimized the debt structure. In the Reporting period, the Group's net gearing ratio decreased from 270.8% as at 31 December 2017 to 107.2% as at 31 December 2018. The financial stability of the company has increased year by year as the group prioritized projects that can be co-operated or financed and standardized the development process to effectively shorten the development and cash flow cycle and achieve enhancement in both profitability and efficiency. On the other side, the Group focused on exploiting the synergy effect between business and housing and using rental income generated from commercial projects as a supplement to the company's cash flow which reduces the operational risks of the company. The Group's rental income recorded approximately RMB 65.2 million for the year ended 31 December 2018.
Property under development
During the Reporting Period, due to the commitment to property development and sales and continuous expansion of business, The Group's properties under development increased by 39.0% from RMB7, 916.2 million as of 31 December 2017 to RMB11, 003.3 million as of 31 December 2018. As of 31 December 2018, the Group proactively expanded its business landscape to the southwest region and Guangdong-Hong Kong-Macao Greater Bay Area while intensively penetrating into the Yangtze River Delta Region. At present, the Group together with the associates has 43 projects under development, completed projects and purchased external projects in the Yangtze River Delta Region, 2 projects under development in the southwest region, and 1 project under development in Guangdong- Hong Kong-Macao Greater Bay Area. In order to strengthen the market positioning strategy, the Group has created eight Yue scenario systems based on the scenario experience in the residential property projects under construction, namely, Yue H,loome, Yue Walk, Yue Life, Yue Growth, Yue Neighborhood, Yue Accompaniment, Yue Control and Yue Sports and we have built a "scenario system" for "Yue" Series products based on such product concept, to provide system solutions for customers who pursue residential quality.
Looking forward into 2019, the Group believes in the immense potentials in real estate industry in China. The continuation of urbanization and pursuits for better and improved living environment would be propelled by the increasing population of middle class and high net wealth market segments. The pillars of success lie in the ability to understand customer needs and effective execution of product and service delivery to meet their expectations. The Group will continue its customer-oriented design approach and the breakthrough concept of situational styles in its project developments. With increased brand awareness and recognition, the Group expects its customer base and customer satisfaction to be enhanced further, along with lifetime value of its customers. The Group is well placed for long-term sustainable growth in the future given its leverage to key demand drivers including population growth, urbanization, wealth accumulation and infrastructure improvement.
About DaFa Properties Group Limited
DaFa Properties Group Limited is an expanding real estate developer in the Yangtze River Delta Region focusing on the development and sales of residential properties. Headquartered in Shanghai, At present, the Group together with the associates have 43 projects under development, completed projects and purchased external projects in the Yangtze River Delta Region, 2 projects under development in the southwest region, and 1 project under development in GuangdongHong Kong-Macao Greater Bay Area.
During the Track Record Period, business operations of the Group consisted of (i) property development and sales, (ii) commercial property investment and operations and (iii) property management services. The Company positions its brand as "Designing for Life" with a vision of providing high-quality properties and creating specific living scenes for its customers. In the meantime, the Company is an advocate of situational real estate and a practitioner of quality real estate, providing housing and leading people to a better life.