China Evergrande : ANNOUNCEMENT OF RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018

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CHINA EVERGRANDE GROUP 中 國 恒 大 集 團

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 3333)

ANNOUNCEMENT OF RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2018

FINANCIAL HIGHLIGHTS

• 1. Revenue increased by 49.9% to RMB466.20 billion for the year ended 31 December 2018 (the

• Year) as compared with 2017.

• 2. Gross profit increased by 50.5% to RMB168.95 billion for the Year as compared with 2017. Gross profit margin was 36.2%, an increase of 0.1 percentage point.

• 3. Net profit excluding exchange gains or losses increased by 106.4% to RMB72.21 billion for the Year as compared with 2017. Net profit margin excluding exchange gains or losses was 15.5%, an increase of 4.2 percentage points.

• 4. Core business profit1 increased by 93.3% to RMB78.32 billion for the Year as compared with 2017. Core business profit margin was 16.8%, an increase of 3.8 percentage points.

• 5. Profit attributable to shareholders increased by 53.4% to RMB37.39 billion for the Year as compared with 2017.

• 6. Contracted sales during the Year amounted to RMB551.34 billion, representing an increase of 10.1% as compared with 2017. The gross floor area of contracted sales was 52.435 million square meters, representing a growth of 4.2% as compared with 2017. The average price of contracted sales was RMB10,515 per square meter, representing an increase of 5.6% as compared with 2017.

1 Core business profit represents net profit excluding fair value gains on investment properties, exchange gains or losses, fair value gains or losses on financial instruments, gains or losses on disposal of financial instruments, donation and certain non-property development businesses losses.

The board of directors (the ''Board'') of China Evergrande Group (the ''Company'') is pleased to announce the consolidated results of the Company and its subsidiaries (the ''Group'') for the year ended 31 December 2018. The annual results have been reviewed by the audit committee of the Company.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Year ended 31 December 2018 2017

NoteRMB million RMB million

Revenue	4	466,196	311,022
Cost of sales	7	(297,249)	(198,760)
Gross profit	168,947	112,262
Fair value gains on investment properties, net	4	1,343	8,513
Other gains/(losses), net	5	2,645	(6,022)
Other income	6	6,694	5,547
Selling and marketing costs	7	(18,086)	(17,210)
Administrative expenses	7	(14,813)	(12,176)
Impairment losses on financial assets	4	(137)	(70)
Other operating expenses	7	(5,179)	(5,599)
Operating profit	141,414	85,245
Share of (losses)/gains of investments accounted for using
equity method	4	(874)	1,402
Fair value gains/(losses) on financial assets at fair value
through profit or loss	4	51	(437)
Fair value gains/(losses) on derivative financial liabilities	4	797	(820)
Finance costs, net	8	(14,623)	(7,917)
Profit before income tax	126,765	77,473
Income tax expenses	9	(60,218)	(40,424)
Profit for the year	66,547	37,049

Year ended 31 December 2018 2017

Note

RMB million RMB million

Other comprehensive income

(Item that may be reclassified to profit or loss)

Change in fair value of available-for-sale financial assets,

net of tax	-	2,165
Share of other comprehensive income of investments
accounted for using the equity method	81	2,391
Currency translation differences	457	(695)
(Item that may not be reclassified to profit or loss)
Change in fair value of financial assets at fair value through
other comprehensive income, net of tax	(383)	-
Other comprehensive income for the year, net of tax	155	3,861
Total comprehensive income for the year	66,702	40,910
Profit attributable to:
Shareholders of the Company	37,390	24,372
Non-controlling interests	29,157	12,677
66,547	37,049
Total comprehensive income attributable to:
Shareholders of the Company	37,502	27,432
Non-controlling interests	29,200	13,478
66,702	40,910
Earnings per share for profit attributable to shareholders of
the Company for the year (expressed in RMB per share)
- Basic earnings per share	10	2.849	1.833
- Diluted earnings per share	10	2.765	1.795

CONSOLIDATED BALANCE SHEET

31 December	31 December
2018	2017
Note	RMB million	RMB million
ASSETS
Non-current assets
Property, plant and equipment	40,794	32,898
Land use rights	9,466	7,935
Investment properties	162,322	151,950
Goodwill	1,595	1,402
Intangible assets	424	253
Trade and other receivables	12	6,029	4,352
Prepayments	13	1,677	1,202
Investments accounted for using equity method	67,046	30,376
Financial assets at fair value through other
comprehensive income	1,570	-
Financial assets at fair value through profit or loss	8,965	-
Available-for-sale financial assets	-	4,565
Deferred income tax assets	4,389	3,872
304,277	238,805
Current assets
Inventories	-	126
Available-for-sale financial assets	-	1,520
Properties under development	971,802	851,363
Completed properties held for sale	121,971	102,158
Trade and other receivables	12	123,141	120,782
Contract costs	3,587	-
Prepayments	13	138,752	146,923
Income tax recoverable	11,116	9,203
Financial assets at fair value through profit or loss	1,173	3,150
Restricted cash	74,845	135,714
Cash and cash equivalents	129,364	152,008
1,575,751	1,522,947
Total assets	1,880,028	1,761,752

31 December	31 December
2018	2017
Note	RMB million	RMB million
EQUITY
Capital and reserves attributable to shareholders
of the Company
Share capital and premium	1,205	1,270
Other reserves	65,998	57,292
Retained earnings	65,792	56,210
132,995	114,772
Non-controlling interests	175,631	127,436
Total equity	308,626	242,208
LIABILITIES
Non-current liabilities
Borrowings	354,857	376,244
Derivative financial liabilities	5,647	2,840
Other payables	14	1,543	4,049
Deferred income tax liabilities	49,899	51,556
411,946	434,689
Current liabilities
Borrowings	318,285	356,381
Trade and other payables	14	554,313	399,459
Contract liabilities	185,586	-
Receipt in advance from customers	-	267,555
Current income tax liabilities	101,272	61,460
1,159,456	1,084,855
Total liabilities	1,571,402	1,519,544
Total equity and liabilities	1,880,028	1,761,752