Zhong An Real Estate : Announcements and Notices - Announcement of Results for the Year Ended 31 December 2018

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ZHONG AN REAL ESTATE LIMITED ଺τגପϞࠢʮ̡

(incorporated in the Cayman Islands with limited liability)

(Stock code: 672)

ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED

31 DECEMBER 2018

SUMMARY

• • The recognised income in 2018 was approximately RMB5,169.4 million, representing an increase of 17.6% as compared to that of 2017

• • The gross profit and gross profit margin in 2018 were RMB1,698.1 million and 32.8% respectively, which increased by 68.1% and up 9.8 percentage points as compared to those of 2017

• • The profit for the year attributable to the owners of the parent in 2018 was RMB286.9 million, representing a decrease of 47.6% as compared to that of 2017, which was mainly due to the changes in fair value of investment properties which stayed flat in 2018 while a substantial gain in fair value of investment properties in 2017

• • As of the end of 2018, the Group's total gearing ratio and net gearing ratio were 61.9% and 27.5% respectively, representing the increases of 2 and 15.1 percentage points as compared to those of 2017, which was due to further development of the business of the Group

• • 5 plots of land were acquired in 2018 with a total GFA of 1,602,803 sq.m. and an average floor price of RMB1,981 per sq.m.

• • The awards and accolades issued by the PRC government and recognised authorities to the Group during the year include Star of 2018 Top 100 China Real Estate Developers, 2018 Top 10 Hong Kong Listed Domestic Property Companies with Financial Stability, etc.

The board of directors (the "Board" or the "Directors") of Zhong An Real Estate Limited (the "Company") is pleased to announce the audited consolidated results of the Company and its subsidiaries (collectively the "Group") for the year ended 31 December 2018 (the "year" or the "year under review"), together with the comparative figures for the corresponding year ended 31 December 2017, and such annual results have been reviewed by the audit committee of the Company:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Year ended 31 December 2018

2018	2017
Notes	RMB'000	RMB'000
Revenue	4	5,169,369	4,395,117
Cost of sales	(3,471,274)	(3,385,190)
Gross profit	1,698,095	1,009,927
Other income and gains	4	81,546	109,276
Selling and distribution expenses	(259,158)	(269,631)
Administrative expenses	(429,205)	(302,104)
Other expenses	(86,523)	(25,517)
Finance costs	5	(114,693)	(41,426)
Fair value (loss)/gain upon transfer
to investment properties	(25,030)	523
Changes in fair value of investment properties	21,169	825,362
Share of profits and losses of:
Joint ventures and an associate	(2,629)	(4,371)
Profit before tax	6	883,572	1,302,039
Income tax expense	7	(520,509)	(493,635)
Profit for the year	363,063	808,404
Attributable to:
Owners of the parent	286,881	547,435
Non-controlling interests	76,182	260,969
363,063	808,404
Earnings per share attributable to
ordinary equity holders of the parent	8
Basic	RMB5 cents	RMB10 cents
Diluted	RMB5 cents	RMB10 cents

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year ended 31 December 2018

2018

RMB'000

2017

RMB'000

Profit for the yearOther comprehensive income

Other comprehensive income that may be reclassified to profit or loss in subsequent periods:

Exchange difference:

Exchange differences on translation of foreign operations

363,063

808,404

23,868 (2,545)Net other comprehensive income that may be reclassified to profit or loss in subsequent periodsOther comprehensive income that will not be reclassified to profit or loss in subsequent periods:

Equity investments designated at fair value through other comprehensive income: Changes in fair value

Income tax effect

23,868 (2,545)

9,000 (2,250)

- -

Net other comprehensive income that will not be reclassified to profit or loss in subsequent periods

6,750

-

Total comprehensive income for the yearAttributable to:

Owners of the parent Non-controlling interests

393,681 805,859

318,763 541,870

74,918 263,989

393,681 805,859

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 December 2018

2018	2017
Notes	RMB'000	RMB'000
Non-current assets
Property and equipment	2,116,482	2,059,812
Investment properties	5,502,607	5,475,911
Properties under development	1,157,623	1,857,179
Restricted cash	49,558	139,927
Available-for-sale investments	-	367,653
Equity investments designated at fair value
through other comprehensive income	423,605	-
Long term prepayments	706,929	236,665
Investments in joint ventures	-	629
Deferred tax assets	52,745	101,062
Total non-current assets	10,009,549	10,238,838
Current assets
Completed properties held for sale	4,231,066	3,528,806
Properties under development	7,352,963	4,416,081
Inventories	29,731	17,431
Trade and bills receivables	9	56,029	64,239
Prepayments, other receivables and other assets	950,141	764,020
Financial assets at fair value through profit or loss	76,635	72,298
Loans to a joint venture	67,304	-
Loans to an associate	175,300	-
Restricted cash	551,461	790,733
Cash and cash equivalents	1,539,762	2,502,367
Investment properties classified as held for sale	25,993	202,889
Total current assets	15,056,385	12,358,864
Current liabilities
Advance from joint ventures	228,293	108,520
Trade payables	10	1,700,198	1,747,904
Other payables and accruals	916,793	636,930
Contract liabilities	4,452,309	-
Advances from customers	-	4,573,014
Interest-bearing bank and other borrowings	1,384,960	1,627,419
Tax payable	1,198,762	785,661
Total current liabilities	9,881,315	9,479,448
Net current assets	5,175,070	2,879,416
Total assets less current liabilities	15,184,619	13,118,254

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

31 December 2018

2018	2017
RMB'000	RMB'000
Non-current liabilities
Interest-bearing bank and other borrowings	3,383,125	2,932,000
Deferred tax liabilities	995,486	1,127,090
Other non-current liabilities	1,255,889	-
Total non-current liabilities	5,634,500	4,059,090
Net assets	9,550,119	9,059,164
Equity
Equity attributable to owners of the parent
Share capital	514,342	516,469
Reserves	7,240,868	6,934,889
7,755,210	7,451,358
Non-controlling interests	1,794,909	1,607,806
Total equity	9,550,119	9,059,164