Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
CHINA VANKE CO., LTD.*
萬科企業股份有限公司
(A joint stock company incorporated in the People's Republic of China with limited liability)
(Stock Code: 2202)
2019 THIRD QUARTERLY REPORT
The board of directors (the "Board") of China Vanke Co., Ltd.* (the "Company" or "Vanke") is pleased to announce the unaudited quarterly report (the "Quarterly Report" or the "Report") of the Company and its subsidiaries (collectively, the "Group") for the three months and nine months ended 30 September 2019, which has been prepared in accordance with International Financial Reporting Standards ("IFRSs"). This announcement is made pursuant to the inside information provisions set out in Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and the requirements under Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
§1 IMPORTANT NOTICE
- The Board, the supervisory committee and the directors (the "Director(s)"), supervisors and senior management of the Company guarantee the truthfulness, accuracy and completeness of the contents of the Report, and that there is no false representation, misleading statement or material omission in the Report, and accept full legal responsibilities for the Report jointly and severally.
- The Quarterly Report was approved at the twenty-third meeting of the eighteenth session of the Board (the "Meeting") of the Company. Mr. KANG Dian, an independent non-executive Director, was not able to attend the Meeting in person due to business engagements and authorised Ms. LIU Shuwei, an independent non-executive Director, to represent him and vote on his behalf at the Meeting. All other Directors attended the Meeting in person.
- Mr. YU Liang, the Chairman of the Board, Mr. ZHU Jiusheng, the President and Chief Executive Officer of the Company, and Mr. WANG Wenjin, an Executive Vice President and Financial Principal of the Company declare that the financial statements contained in the Quarterly Report are warranted to be true, accurate and complete.
1
- The financial and accounting statements contained in the Quarterly Report of the Group have been prepared in accordance with the IFRSs and have not been audited.
- Unless otherwise indicated, Renminbi is the reporting currency in the Quarterly Report. The "Reporting Period" refers to 1 July to 30 September of 2019.
- This Report includes forward-looking statements of future plans and development strategy, which does not constitute the Group's actual undertakings to investors. Investors are advised to exercise caution towards investment risks.
§2 BASIC CORPORATE INFORMATION
2.1 Major accounting data and financial indicators
Unit: RMB'000 | ||||
As at | As at | |||
30 September | 31 December | |||
2019 | 2018 | Change | ||
Total assets | 1,638,837,123 | 1,528,663,415 | 7.21% | |
Total equity attributable to equity | ||||
shareholders of the Company | 167,273,827 | 155,764,132 | 7.39% | |
Share capital | 11,302,143 | 11,039,152 | Increase of | |
262,991,000 | ||||
shares | ||||
Jul. to Sep. | Jan. to Sep. | YOY | ||
2019 | YOY change | 2019 | change | |
Revenue | 84,594,680 | 21.74% | 223,914,757 | 28.43% |
Profit for the period attributable | ||||
to equity shareholders of the | ||||
Company | 6,398,993 | 31.64% | 18,240,745 | 30.43% |
Net cash (used in)/generated | ||||
from operating activities | (7,118,699) | 66.85% | 1,734,411 | 106.74% |
Basic earnings per share (RMB) | 0.566 | 28.58% | 1.631 | 28.73% |
Diluted earnings per share | ||||
(RMB) | 0.566 | 28.58% | 1.631 | 28.73% |
Weighted average return | 3.91% | Increased | 11.16% | Increased |
on equity | by 0.37 | by 1.12 | ||
percentage | percentage | |||
point | points |
Note: The equity and earning/return used in the above calculation refer to the net equity attributable to equity shareholders of the Company and the profit for the period attributable to equity shareholders of the Company respectively.
2
2.2 Total number of shareholders and shareholdings of the top 10 holders of non-restricted shares as at the end of the Reporting Period
Unit: Share | |||
Total number of ordinary | 290,546 (including 290,500 | Total number of preference | 0 |
shareholders as at the end | holders of A shares and 46 | shareholders with restored | |
of the Reporting Period | holders of H shares) | voting rights at the end of the | |
Reporting Period (if any) |
Shareholdings of the top 10 shareholders | ||||||
Number of | Pledged or lock-up | |||||
Classification of | Percentage of | Total number | restricted | Share | Number | |
Name of shareholder | shareholder | shareholdings | of shares held | shares held | status | of shares |
Shenzhen Metro Group Co., Ltd. | Domestic state-owned | 28.69% | 3,242,810,791 | 0 | - | 0 |
("SZMC") | legal person | |||||
HKSCC NOMINEES LIMITED | Overseas legal person | 13.96% | 1,577,885,274 | 0 | - | 0 |
Note 1 | ||||||
Shenzhen Jushenghua Co., Ltd. | Domestic non-state- | 7.08% | 799,741,909 | 0 | Pledged | 799,334,627 |
("Jushenghua") Note 2 | owned legal person | |||||
Anbang Life Insurance Co., Ltd. | Others | 4.29% | 484,693,983 | 0 | - | 0 |
- Conservative Investment | ||||||
Portfolio Note 3 | ||||||
Guosen Securities -Industrial and | Others | 4.04% | 456,993,190 | 0 | - | 0 |
Commercial Bank of China - | ||||||
Guosen Jinpeng No.1 Classified | ||||||
Collective Asset Management | ||||||
Plan | ||||||
Hong Kong Securities Clearing | Others | 3.73% | 421,222,293 | 0 | - | 0 |
Company Ltd. Note 4 | ||||||
CMS Wealth -CMB - De | Others | 2.91% | 329,352,920 | 0 | - | 0 |
Ying No. 1 Specialised Asset | ||||||
Management Plan | ||||||
Foresea Life Insurance Co., Ltd. - | Others | 2.86% | 323,100,542 | 0 | - | 0 |
Hai Li Nian Nian | ||||||
Central Huijin Asset Management | Domestic state-owned | 1.68% | 189,566,000 | 0 | - | 0 |
Co., Ltd. | legal person | |||||
Industrial and Commercial Bank | Others | 1.51% | 170,960,200 | 0 | - | 0 |
of China Limited-Ping An Zhong |
Zheng Trading Index Securities
Investment Open-ended Fund
On Development Of The
Guangdong-HongKong-Macao
Greater Bay Area
3
Shareholdings of the top 10 holders of non-restricted shares
Number of | |||
Name of shareholder | non-restricted shares held | Class of shares | |
SZMC | 3,242,810,791 | Ordinary RMB-denominated | |
shares ("A shares") | |||
HKSCC NOMINEES LIMITED | 1,577,885,274 | Overseas listed foreign shares | |
(H shares) | |||
Jushenghua | 799,741,909 | A shares | |
Anbang Life Insurance Co., Ltd. - Conservative | 484,693,983 | A shares | |
Investment Portfolio | |||
Guosen Securities - Industrial and Commercial | 456,993,190 | A shares | |
Bank of China - Guosen Jinpeng No.1 | |||
Classified Collective Asset Management Plan | |||
Hong Kong Securities Clearing Company Ltd. | 421,222,293 | A shares | |
CMS Wealth -CMB - De Ying No. 1 | 329,352,920 | A shares | |
Specialised Asset Management Plan | |||
Foresea Life Insurance Co., Ltd. - Hai Li Nian | 323,100,542 | A shares | |
Nian | |||
Central Huijin Asset Management Co., Ltd. | 189,566,000 | A shares | |
Industrial and Commercial Bank of China | 170,960,200 | A shares | |
Limited-Ping An Zhong Zheng Trading Index | |||
Securities Investment Open-ended Fund | |||
On Development Of The Guangdong-Hong | |||
Kong-Macao Greater Bay Area | |||
Remarks on the connected relationship or | 1. | Jushenghua holds 51% equity interests in Foresea | |
action in concert of the aforementioned | Life Insurance Co., Ltd. | ||
shareholders | 2. | Save as aforesaid, it is not known to the Company as | |
to whether there are connections or persons deemed |
to be acting in concert under the Measures for the Administration of the Takeover of Listed Companies among the abovementioned shareholders.
4
Top 10 ordinary shareholders involved in | Nil |
margin trading business (if any) | |
Statements on the transaction of shares under | Nil |
agreements to repurchase of the top 10 holders | |
of ordinary shares and top 10 holders of non- | |
restricted ordinary shares during the Reporting | |
Period (if any) |
Notes:
- HKSCC NOMINEES LIMITED is the nominee holder of non-registered shareholders of the H shares of the Company.
- On 13 October 2019, Jushenghua disclosed the change of its holding of interest in Vanke at website of HKExnews (www.hkexnews,hk). Jushenghua, together with its person acting in concert, held 1,352,836,874 shares of the Company, representing 11.97% of total share capital of the Company as at 11 October 2019.
- In August 2019, Anbang Life Insurance Co., Ltd. has been renamed as Dajia Life Insurance Co., Ltd*, after obtaining the approval from China Banking and Insurance Regulatory Commission.
- Hong Kong Securities Clearing Company Ltd. is the nominee holder of A shares of the Company held by non- registered shareholders through the Shenzhen-Hong Kong Stock Connect.
- "The 290,500 holders of A shares" in the above table refers to the number of shareholders combining the securities margin trading credit accounts.
As of 30 September 2019, the total number of shares of the Company was 11,302,143,001, including 9,724,196,533 A shares and 1,577,946,468 H shares.
2.3 Number of preferred shareholders and shareholdings of top 10 preferred shareholders
Applicable | ✓ Not Applicable |
5
§3 OPERATIONS DISCUSSION AND ANALYSIS
1. Property market in the third quarter
During the Reporting Period, pursuant to the requirement of the principle of "houses are for living in, not for speculation", local governments introduced policies aligning with local conditions with an aim to "stabilize housing price, land premium and expectation" to promote the stable operation of the property market.
According to the statistics of National Bureau of Statistics, from January to September, the sales area of commodity housing in China amounted to 1,190 million sq m, representing a 0.1% year-on- year decrease, with a sales amount of RMB11.1 trillion, up by 7.1% year-on-year; among which the sales area of commodity housing in China in the third quarter increased 2.9% year-on-year and the sales amount increased by 9.7% year-on-year.
In the third quarter, for the 14 cities1 under the Company's ongoing and focused observation, the area of commodity housing sold increased by 2.5% year-on-year. As at the end of the Reporting Period, the digestion cycle of the inventory of new housing available for sale (area with sales permits but had yet to be sold) in the above-mentioned cities was about 10.2 months.
The total investment in property development in China from January to September increased by 10.5% year-on-year, which was 0.4 percentage point lower than the growth rate of the first half of 2019. The area of new housing construction in China increased by 8.6% year-on-year, which was 1.5 percentage points lower than the growth rate of the first half of 2019.
The land market cooled down. According to the statistics from China Index Academy, the average premium rate of residential land in 300 cities in the third quarter was 11.6%, which was 8.6 percentage points lower than the average premium rate of the first half of 2019.
Financial supervision targeted at the property industry continued to be tightened. According to the report of the People's Bank of China, as at the end of September, the balance of property loans recorded a year-on-year growth rate of 15.6%, which was 4.4 percentage points lower than the growth rate at the end of last year.
1 Beijing, Shanghai, Shenzhen, Guangzhou, Tianjin, Shenyang, Hangzhou, Nanjing, Chengdu, Wuhan, Dongguan, Foshan, Wuxi, Suzhou
6
2. Business development of the Group during the Reporting Period
-
Key financial guidance
In the third quarter, the revenue of the Group amounted to RMB84.59 billion, representing a year-on-year increase of 21.7%; the net profit attributable to equity shareholders of the
Company amounted to RMB6.40 billion, representing a year-on-year increase of 31.6%. The booked area of the property development business amounted to 6.087 million sq m, with
- revenue of RMB79.58 billion, representing year-on-year increases of 5.1% and 20.8% respectively.
From January to September, the accumulated revenue of the Group amounted to RMB223.91 billion, representing a year-on-year increase of 28.4%; the net profit attributable to equity shareholders of the Company amounted to RMB18.24 billion, representing a year-on-year increase of 30.4%; the booked area of the property development business amounted to 14.550 million sq m, with a revenue of RMB212.57 billion, representing year-on-year increases of 13.6% and 28.5% respectively.
From January to September, the estimated gross profit margin of the Group's property development business was 27.0%, representing a decrease of 1.2 percentage points when compared with that of the same period last year.
In view of the property market adjustments in certain cities, the Group made inventory impairment provision for individual projects with risks. As of the end of September, the balance of the Group's inventory impairment provision amounted to RMB3.06 billion. During the Reporting Period, the Group appropriated inventory impairment provision of RMB1.14 billion, which led to an impact on net profit attributable to equity shareholders of the Company of RMB0.78 billion.
The Group insisted on the creation of true value with emphasis on liquidity, and maintained sound financial and capital positions. As at the end of September, the cash and cash equivalents held by the Group amounted to RMB107.24 billion, much higher than the sum of short-term borrowings and interest-bearing liabilities due within one year of RMB59.08 billion; among the interest-bearing liabilities, 74.0% was long-term liabilities.
-
Major operations
The Group has always adhered to a proactive sales strategy. During the third quarter, the Group's property development business achieved a contracted sales area of 9.115 million sq m and a contracted sales amount of RMB141.61 billion, representing year-on-year increases of 5.2% and 11.6% respectively. From January to September, the Group achieved an accumulated contracted sales area of 30.616 million sq m and contracted sales amount of RMB475.61 billion, representing year-on-year increases of 5.5% and 10.2% respectively.
7
As at the end of September, the resources sold but not completed for recognition in the Group's consolidated financial statements amounted to 44.743 million sq m, with a total contracted amount of approximately RMB636.24 billion, representing increase of 20.6% and 19.9% respectively as compared to those at the beginning of the year.
The Group continued to adhere to its prudent investment strategies, and on the premise that prices were reasonable, actively explored various potential investment opportunities. In the third quarter, the Group acquired 62 new property development projects, with a total gross floor area ("GFA") of approximately 14.790 million sq m and a planned GFA attributable to the Company's equity holding of approximately 11.553 million sq m; from January to September, the Group acquired a total of 116 new property development projects, with a total GFA of 28.321 million sq m and a planned GFA attributable to the Company's equity holding of 20.420 million sq m. In terms of equity investment amount, 81% was located in first and second tier cities.
As at the end of September, the total GFA of the Group's projects under construction was approximately 105.878 million sq m, of which the GFA attributable to Vanke's equity holding was approximately 62.754 million sq m; the total GFA of projects under planning was approximately 55.942 million sq m, of which the GFA attributable to Vanke's equity holding was approximately 36.294 million sq m. In addition, the Group also participated in certain urban renewal projects, of which the aggregate GFA attributable to the Company's equity holding was approximately 3.414 million sq m according to current planning.
From January to September, the floor area of new construction of the Group amounted to 32.434 million sq m, and accounting for 89.9% of the floor area of new construction planned for the full year; completed floor area was 16.401 million sq m, representing a year-on-year increase of 5.5% and accounting for 53.3% of the planned floor area to be completed for the full year.
The Group adhered to the strategic position of a "city and town developer and service provider". While consolidating its edges in residential development, the Group had been actively developing businesses such as property services, rental housing, retail property development and operation, logistics and warehousing services, standard office and industrial park and ski resort, addressing people's growing demands for better life quality.
During the Reporting Period, the brand value of Vanke Service Development Co., Ltd. ranked first in the "2019 Property Service Brand Value Study Results List" from China Index Academy. At the same time, it won a number of awards, including "2019 Specialized Operational Leading Brand of China Property Service Companies", "2019 Leading Brand of China Property Service Companies in terms of Service Quality" and "2019 Platform Leading Brand of China Property Service Companies" as well as the title of "2019 Most Influential Property Service Brand of Property Developers".
8
As at the end of September, the rental housing business of the Group had accumulated approximately 98,000 units in operation; during the Reporting Period, the Group had successfully issued the second phase of the 2019 corporate bonds designated for rental housing, with an issue size of RMB2.5 billion and a coupon rate of 3.55%.
SCPG Holdings Co., Limited ("SCPG") is the retail property development and operation platform of the Group. During the Reporting Period, SCPG was awarded the name of "2019 Leading Brand of China Retail Property Companies" in the 2019 China Real Estate Brand Value Study Results Presentation.
During the third quarter, the Group's logistics and warehousing services business acquired 4 new projects, with a total GFA (GFA of leasable properties) of approximately 270,000 sq m. As at the end of September, the total GFA of logistics and warehousing services business amounted to approximately 9.98 million sq m.
The Group constantly paid attention to the development of stakeholders and practically fulfilled its social responsibilities. Due to the contribution in terms of targeted poverty alleviation and rural revitalization, Mr. YU Liang, Chairman of the Board of the Company was awarded the "Anti-poverty Effort Contribution Award in China of 2019" by the State Council Leading Group Office of Poverty Alleviation and Development.
§4 SIGNIFICANT EVENTS
4.1 Significant changes and reasons for such changes in major items of the accounting statements and financial indicators
Unit: RMB'000 | |||||
Change | |||||
Item | 30 Sep. 2019 | 31 Dec. 2018 | (+/-) | Remarks | |
Deferred tax assets | 21,582,290 | 15,749,205 | 37.04% | Increase in provision for | |
settlement of Land | |||||
Value-added Tax | |||||
Contract assets | 2,919,536 | 1,364,127 | 114.02% | Growth in entrusted | |
construction business | |||||
Other current assets | 2,386,432 | 12,600,806 | -81.06% | Wealth management due | |
for redemption | |||||
Cash and cash equivalents | 96,061,793 | 175,668,164 | -45.32% | Increase in construction and | |
land premium | |||||
Deferred tax liabilities | 409,177 | 622,971 | -34.32% | Decrease in deferred tax | |
liabilities in respect of the | |||||
contract costs | |||||
Investment properties | 93,669,117 | 25,897,948 | 261.69% | Effect of change in accounting | |
Lease liabilities | 23,362,180 | - | N/A | ||
policy | |||||
Other non-current assets | 6,384,228 | 35,982,967 | -82.26% | ||
9
Unit: RMB'000 | ||||
Jan. - Sep. | Jan. - Sep. | Change | ||
Item | 2019 | 2018 | (+/-) | Remarks |
Other net income | 3,602,611 | 2,185,504 | 64.84% | Decrease in exchange losses |
Administrative expenses | (10,626,645) | (7,910,657) | 34.33% | Expansion of operation scale |
of the Company | ||||
Other operating expenses | (1,637,153) | (3,759,696) | -56.46% | Decrease in provisions |
Income tax | (30,961,459) | (20,169,144) | 53.51% | Increase in taxable profit |
4.2 Update on significant events and analysis of their effects and solutions
No. | Description of Item |
- Arrangements for payment of 2018 final dividend. The Company proposed to pay a final dividend for the year ended 31 December 2018 in cash of RMB1.045102 per share (inclusive of applicable tax) to the shareholders of the H shares of the Company whose names appear on the register of members of the H shares of the Company at the close of business on Wednesday, 24 July 2019. Such payment has been completed on 15 August 2019.
- "19 Vanke 02" corporate bonds specialized in rental housing with a final issue size of RMB2.5 billion and a term of five years (attached with option for the Company to adjust coupon rate and option for investors to sell back at the end of the third year), and a coupon rate of 3.55% was issued between 25 September 2019 and 26 September 2019.
- On 16 October 2019 to 17 October 2019, the Company issued the first tranche of super and short term commercial papers of 2019 in the amount of RMB500 million, a coupon rate of 3.18% and a term of 270 days.
4.3 Overdue undertakings of the Company's de facto controller, shareholders, connected parties, purchasers and the Company during the Reporting Period
Applicable | ✓ Not Applicable |
During the Reporting Period, there were no overdue undertakings of the Company's de facto controller, shareholders, connected parties, purchasers and the Company.
10
4.4 Estimates on the operating results of the year of 2019
Warnings on any potential loss in accumulated net profits from the beginning of the year to the end of the next reporting period or any material change as compared with that in the same period of last year and the reasons
Applicable | ✓ Not Applicable |
4.5 Investment of securities
Unit: RMB'000 | |||||||
Book Value | Change of | ||||||
Initial | Shareholding | ownership | |||||
Stock | at the end of | Gain or Loss in | |||||
Stock Name | Investment | Percentage in | interest during | ||||
Code | the Reporting | the year | |||||
Amount | the company | the Reporting | |||||
Period | |||||||
Period | |||||||
0267.HK | CITIC | 509,673 | approximately | 491,511.85 | (95,508.76) | - | |
Limited | 0.19% | ||||||
Total | 509,673 | approximately | 491,511.85 | (95,508.76) | - | ||
0.19% | |||||||
4.6 Investment in Derivatives
Remarks on risk analysis and management of derivative positions during the Reporting Period (including but not limited to market risk, liquidity risk, credit risk, operational risk and legal risk, etc.)
As of the end of the Reporting Period, the Group's derivative financial instruments mainly included Cross Currency Swap (CCS) and Interest Rate Swap (IRS). The risks faced by CCS are related to exchange rate market risks and the certainty of the Group's future foreign currency debt cash flows. The risks faced by IRS are related to the interest rate market risk and the certainty of the Group's future foreign currency debt interest cash flow. The Group's control measures on derivative financial instruments are mainly reflected in: For derivatives trading, the Group strictly regulates the authorization and business operation procedures, carefully selects and determines the types and quantities of new derivative financial instruments, and strictly controls the credits level of the Group and related entities.
With regards to the change in market price or fair value of the derivatives invested during the Reporting Period, specific method, related assumptions and parameters for analysis of the fair value of derivatives should be disclosed
During the Reporting Period, CCS due for settlement this year brought a profit of RMB4.3759 million to the Company.
11
The fair value of IRS and CCS at the end of the Reporting Period was determined by reference to the market quotation of external financial institutions.
Remarks on whether there has been a material change in the accounting policy and accounting measurement principles for the Company's derivatives during the Reporting Period as compared with those of the previous reporting period
NIL.
Specialized opinion of the independent non-executive Directors on derivative investment and risk control of the Company
The independent non-executive Directors of the Company are of the view that the Company standardizes derivatives investment, follows the principle of prudence and mitigates possible losses associated with foreign currency loans in the event of significant change in exchange rates or interest rates via IRS, CCS and other financial derivatives, in accordance with the actual situation of business operations and the relevant regulations of the regulatory authorities. The relevant arrangements of the Company had been prudent and reasonable.
Derivative positions as at the end of the Reporting Period
Unit: RMB'0000 | ||||
Contract amount as | ||||
Contract amount as at | Contract amount | Profit or loss during | a percentage of the | |
Type of contracts | the beginning of the | as at the end of the | Company's net assets | |
the year | ||||
year | Reporting Period | as at the end of the | ||
Reporting Period | ||||
IRS | 438,600.00 | 455,550.00 | - | 1.86% |
CCS | 2,017,208.16 | 2,078,832.43 | 437.59 | 8.49% |
DF | 601,177.50 | - | - | - |
Total | 3,056,985.66 | 2,534,382.43 | 437.59 | 10.35% |
Note: During the Reporting Period, there was no change to amount of the IRS and CCS. But due to exchange rate fluctuation, there was a minor difference in the contract amount at the end of September 2019 as compared to the amount at the beginning of the period when converted into RMB.
12
4.7 Meetings with researchers, communications activities and visits during the Reporting Period
Type of meeting | Time | Location | Approach | Type of investors | Issues discussed and | |
Information provided | ||||||
Haitong Securities Meeting | 2019.7 | Shanghai | Face to Face | Investors including securities | ||
companies, funds and etc. | ||||||
Interim Results Presentation | 2019.8 | Shenzhen (Shanghai, Beijing), | Face to Face | Investors including securities | ||
Hong Kong | companies, funds and etc. | |||||
CLSA Meeting | 2019.9 | Hong Kong | Face to Face | Investors including securities | ||
companies, funds and etc. | ||||||
Note: The abovementioned meetings included one-on-one meetings, small group meetings and large group presentation. The Company received | ||||||
or met with investors from over 50 companies. | 1. | Major issues | ||||
discussed: | ||||||
Securities companies | During the | Anshan, Beijing, Chengdu, Dalian, | Small Group | Changjiang Securities, CITIC | ||
1) | The Company's | |||||
Reporting | Dongguan, Foshan, Fuzhou, | or one-on- | Securities, CICC, Tianfeng | |||
daily operations; | ||||||
Period | Guangzhou, Guiyang, Harbin, | one | Securities, Mitsubishi UFG | |||
2) | The Company's | |||||
Hangzhou, Jinan, Jiaxing, Kunming, | Securities, Ping An Securities, | |||||
development | ||||||
Lanzhou, Nanjing, Ningbo, Qingdao, | Huatai Financial Holdings (Hong | |||||
strategies; | ||||||
Shanghai, Shenzhen, Shenyang, | Kong), Haitong Securities, | |||||
3) | The Company's | |||||
Suzhou, Taiyuan, Tianjin, Wuxi, | Guotai Junan, GF Securities, | |||||
opinions about the | ||||||
Wuhan, Xi'an, Yantai, Changchun, | Okasan Securities, Orient | |||||
industry. | ||||||
Changsha, Zhengzhou, Chongqing, | Securities, Founder Securities, | |||||
Zhuhai | Shenyin Wanguo, Guosen | 2. | Major information | |||
Securities, Credit Suisse Founder | ||||||
Securities, Pacific Securities, | provided: | |||||
published | ||||||
Citi Research, BCP Securities, | ||||||
information | ||||||
etc. | ||||||
including the | ||||||
Funds and other investment | During the | Zhuhai, Harbin, Changchun, | Small Group | Greenwoods Asset, BOCOM | Company's regular | |
companies and individual | Reporting | Shanghai, Beijing, Chengdu, | or one-on- | Fund, Baoying Fund, Orient | reports. | |
investors | Period | Dalian, Dongguan, Suzhou, Foshan, | one | Securities Asset Management, | ||
Changsha, Fuzhou, Guangzhou, | Danske Bank, ABC-CA Fund, | |||||
Guiyang, Hangzhou, Jinan, | J.P. Morgan, UBS Asset | |||||
Kunming, Lanzhou, Nanjing, | Management, Brilliance Capital | |||||
Ningbo, Qingdao, Shenzhen, | Management, etc. | |||||
Shenyang, Taiyuan, Tianjin, | ||||||
Wuxi, Wuhan, Xi'an, Zhengzhou, | ||||||
Chongqing | ||||||
13
-
Illegal external guarantees
The Group had no illegal external guarantees during the Reporting Period. - Non-operatingcapital of the Group attributable to the controlling shareholders and their related parties
The Company has no controlling shareholder. During the Reporting Period, the Group had no capital which was non-operating attributed to the largest shareholder and its related parties.
§5 APPENDIX - FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH THE IFRSS
The financial statements prepared in accordance with the IFRSs are set out in Appendix I to this announcement.
By order of the Board
China Vanke Co., Ltd. *
YU Liang
Chairman of the Board
Shenzhen, the PRC, 24 October 2019
As at the date of this announcement, the Board comprises Mr. YU Liang, Mr. WANG Wenjin and Mr. ZHANG Xu as executive Directors; Mr. LIN Maode, Mr. CHEN Xianjun and Mr. SUN Shengdian as non- executive Directors; and Mr. KANG Dian, Ms. LIU Shuwei, Mr. NG Kar Ling, Johnny and Mr. LI Qiang as independent non-executive Directors.
- For identification purpose only
14
APPENDIX I
The unaudited consolidated results of the Group for the three months ended 30 September 2019 and the comparative figures for the corresponding period in 2018 are as follows:
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2019
Three months ended | ||||
30 September | ||||
2019 | 2018 | |||
RMB'000 | RMB'000 | |||
(Unaudited) | (Unaudited) | |||
Revenue | 84,594,680 | 69,485,935 | ||
Cost of sales | (55,640,751) | (45,352,422) | ||
Gross profit | 28,953,929 | 24,133,513 | ||
Other net income | 1,191,842 | 497,257 | ||
Selling and marketing expenses | (2,127,088) | (1,677,175) | ||
Administrative expenses | (3,587,077) | (3,179,924) | ||
Other operating expenses | (743,234) | (2,931,185) | ||
Profit from operations | 23,688,372 | 16,842,486 | ||
Finance costs | (2,153,824) | (2,468,363) | ||
Share of profits less losses of associates and joint ventures | 192,146 | 1,810,417 | ||
Profit before taxation | 21,726,694 | 16,184,540 | ||
Income tax | (12,421,954) | (7,909,342) | ||
Profit for the period | 9,304,740 | 8,275,198 | ||
Attributable to: | ||||
Equity shareholders of the Company | 6,398,993 | 4,860,817 | ||
Non-controlling interests | 2,905,747 | 3,414,381 | ||
Profit for the period | 9,304,740 | 8,275,198 | ||
Basic earnings per share (RMB) | 0.57 | 0.44 | ||
15
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2019
Three months ended
30 September
2019 2018
RMB'000 RMB'000 (Unaudited) (Unaudited)
Other comprehensive income for the period
(after tax and reclassification adjustments) | ||||
Items that will not be reclassified to profit or loss: | ||||
Equity investments at fair value through other comprehensive income | ||||
- net movement in fair value reserve | 123,687 | (121,380) | ||
Items that may be reclassified subsequently to profit or loss: | ||||
Exchange differences on translation of financial statements of overseas | ||||
subsidiaries | 21,936 | (20,572) | ||
Cash flow hedge: net movement in the hedging reserve | 11,695 | 147,059 | ||
Share of other comprehensive income of associates | - | (2,899) | ||
Other comprehensive income for the period | 157,318 | 2,208 | ||
Total comprehensive income for the period | 9,462,058 | 8,277,406 | ||
Attributable to: | ||||
Equity shareholders of the Company | 6,525,960 | 4,838,343 | ||
Non-controlling interests | 2,936,098 | 3,439,063 | ||
Total comprehensive income for the period | 9,462,058 | 8,277,406 | ||
16
The unaudited consolidated results of the Group for the nine months ended 30 September 2019 and the comparative figures for the corresponding period in 2018 are as follows:
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2019
Nine months ended | ||||
30 September | ||||
2019 | 2018 | |||
RMB'000 | RMB'000 | |||
(Unaudited) | (Unaudited) | |||
Revenue | 223,914,757 | 174,345,060 | ||
Cost of sales | (144,473,960) | (114,840,718) | ||
Gross profit | 79,440,797 | 59,504,342 | ||
Other net income | 3,602,611 | 2,185,504 | ||
Selling and marketing expenses | (5,313,612) | (4,485,487) | ||
Administrative expenses | (10,626,645) | (7,910,657) | ||
Other operating expenses | (1,637,153) | (3,759,696) | ||
Profit from operations | 65,465,998 | 45,534,006 | ||
Finance costs | (7,013,706) | (6,142,025) | ||
Share of profits less losses of associates and joint ventures | 1,099,584 | 2,574,961 | ||
Profit before taxation | 59,551,876 | 41,966,942 | ||
Income tax | (30,961,459) | (20,169,144) | ||
Profit for the period | 28,590,417 | 21,797,798 | ||
Attributable to: | ||||
Equity shareholders of the Company | 18,240,745 | 13,984,560 | ||
Non-controlling interests | 10,349,672 | 7,813,238 | ||
Profit for the period | 28,590,417 | 21,797,798 | ||
Basic earnings per share (RMB) | 1.63 | 1.27 | ||
17
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2019
Nine months ended
30 September
2019 2018
RMB'000 RMB'000 (Unaudited) (Unaudited)
Other comprehensive income for the period
(after tax and reclassification adjustments) | ||||
Items that will not be reclassified to profit or loss: | ||||
Equity investments at fair value through other comprehensive income | ||||
- net movement in fair value reserve | 507,973 | (136,332) | ||
Items that may be reclassified subsequently to profit or loss: | ||||
Exchange differences on translation of financial statements of overseas | ||||
subsidiaries | 126,286 | (51,516) | ||
Cash flow hedge: net movement in the hedging reserve | 290,505 | 353,989 | ||
Share of other comprehensive income of associates | - | (2,899) | ||
Other comprehensive income for the period | 924,764 | 163,242 | ||
Total comprehensive income for the period | 29,515,181 | 21,961,040 | ||
Attributable to: | ||||
Equity shareholders of the Company | 19,133,022 | 14,120,882 | ||
Non-controlling interests | 10,382,159 | 7,840,158 | ||
Total comprehensive income for the period | 29,515,181 | 21,961,040 | ||
18
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2019
At | At | |||
30 September | 31 December | |||
2019 | 2018 | |||
RMB'000 | RMB'000 | |||
(Unaudited) | (Audited) | |||
Non-current assets | ||||
Property, plant and equipment | 28,123,678 | 22,645,383 | ||
Intangible assets | 813,688 | 1,015,426 | ||
Investment properties | 93,669,117 | 25,897,948 | ||
Interest in associates and joint ventures | 126,860,647 | 129,527,656 | ||
Other financial assets | 3,144,819 | 2,688,915 | ||
Other non-current assets | 6,384,228 | 35,982,967 | ||
Deferred tax assets | 21,582,290 | 15,749,205 | ||
280,578,467 | 233,507,500 | |||
Current assets | ||||
Inventories and other contract costs | 864,260,644 | 754,310,077 | ||
Contract assets | 2,919,536 | 1,364,127 | ||
Trade and other receivables | 376,804,275 | 331,838,827 | ||
Other current assets | 2,386,432 | 12,600,806 | ||
Pledged and restricted deposits | 11,178,453 | 12,749,283 | ||
Cash and cash equivalents | 96,061,793 | 175,668,164 | ||
Assets held for sale | 4,647,523 | 6,624,631 | ||
1,358,258,656 | 1,295,155,915 | |||
Current liabilities | ||||
Bank loans and borrowings | 46,205,082 | 69,620,501 | ||
Bonds payable | 14,277,525 | 24,918,488 | ||
Trade and other payables | 506,955,197 | 485,370,555 | ||
Contract liabilities | 587,345,960 | 504,711,414 | ||
Lease liabilities | 2,347,982 | - | ||
Current taxation | 45,167,518 | 37,292,979 | ||
1,202,299,264 | 1,121,913,937 | |||
Net current assets | 155,959,392 | 173,241,978 | ||
Total assets less current liabilities | 436,537,859 | 406,749,478 | ||
19
At | At | ||
30 September | 31 December | ||
2019 | 2018 | ||
RMB'000 | RMB'000 | ||
(Unaudited) | (Audited) | ||
Non-current liabilities | |||
Bank loans and borrowings from financial institutions | 119,448,514 | 120,929,055 | |
Lease liabilities | 21,014,198 | - | |
Bonds payable | 48,351,104 | 47,095,146 | |
Deferred tax liabilities | 409,177 | 622,971 | |
Provisions | 153,189 | 143,528 | |
Other non-current liabilities | 2,309,782 | 2,338,048 | |
191,685,964 | 171,128,748 | ||
NET ASSETS | 244,851,895 | 235,620,730 | |
CAPITAL AND RESERVES | |||
Share capital | 11,302,143 | 11,039,152 | |
Reserves | 155,971,684 | 144,724,980 | |
Total equity attributable to equity shareholders of the Company | 167,273,827 | 155,764,132 | |
Non-controlling interests | 77,578,068 | 79,856,598 | |
TOTAL EQUITY | 244,851,895 | 235,620,730 | |
20
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2019
2019 Jan-Sep | 2018 Jan-Sep | |||
RMB'000 | RMB'000 | |||
(Unaudited) | (Unaudited) | |||
Operating activities | ||||
Cash generated from operations | 32,312,773 | 3,572,282 | ||
Income tax paid | (30,578,362) | (29,303,457) | ||
Net cash generated from/(used in) operating activities | 1,734,411 | (25,731,175) | ||
Investing activities | ||||
Acquisitions of property, plant and equipment and investment properties | (3,461,193) | (8,385,685) | ||
Other cash flows used in investing activities | (8,561,321) | (62,750,101) | ||
Net cash used in investing activities | (12,022,514) | (71,135,786) | ||
Financing activities | ||||
Dividends and interest paid | (28,292,417) | (23,881,601) | ||
Other cash flows (used in)/arising from financing activities | (41,582,352) | 79,077,576 | ||
Net cash (used in)/generated from financing activities | (69,874,769) | 55,195,975 | ||
Effect of foreign exchange rate changes | 556,501 | 461,377 | ||
Net decrease in cash and cash equivalents | (79,606,371) | (41,209,609) | ||
Cash and cash equivalents at 1 January | 175,668,164 | 164,326,007 | ||
Cash and cash equivalents at 30 September | 96,061,793 | 123,116,398 | ||
21
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China Vanke Co. Ltd. published this content on 24 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 October 2019 10:45:15 UTC