Ever Reach Group Announces 2018 Annual Results

March 28, 2019 - 16:12
Ever Reach Group Announces 2018 Annual Results

Profit Attributable to the Owners of the Company Increased by 51.9% to RMB224.5 Million Contracted Sales Increased by 17.5% to RMB2,658.0 Million


Financial Highlights:


For the year ended 31 December 2018

RMB Million








Gross Profit




Gross Margin




Profit for the year




Profit Attributable to the Owners of the Company




Earnings per Share (RMB cents)




Proposed Final Dividend (HK cents)




HONGKONG, CHINA - Media OutReach  - 28 March 2019 - Ever Reach Group (Holdings) Company Limited("Ever Reach Group" or the "Company"; together with its subsidiaries, the"Group", Stock Exchange stock code: 3616), one of the leading real estatedevelopment companies in Xuchang City, Henan Province, announce today itsannual results for the year ended 31 December 2018 (the "Year").


For the year ended 31 December 2018, the Group's total revenue increasedby 21.5% from RMB1,549.9 million in 2017 to RMB1,883.6 million in 2018. Duringthe Year, the gross profit increased by 55.6% to RMB629.9 million. Gross profitmargin was approximately 33.4% in 2018, representing an increase of 7.3percentage points from 26.1% in 2017. The profit attributable to the owners ofthe Company increased by 51.9% to approximately RMB224.5 million. The basicearnings per share increased by 50% to RMB24 cents as compared with 2017. TheBoard of Directors recommended a final dividend of HK5.9 cents per share.

During the year under review, sales of properties contributed to 99.9%(2017:99.8%) of the Group's total revenue. The sales of residential propertiesamounted to RMB1,247.4 million, accounting for 66.3% of the sales ofproperties; sales of commercial properties amounted to RMB548.6 million,accounting for 29.2% of the sales of properties. The increase in sales ofresidential properties was mainly due to the effect of increase of recognisedASP per sq.m from approximately RMB4,012 in 2017 to approximately RMB5,336 in 2018.The increase in the sales of the commercial properties was primarily due to thejoint effect of the increase of approximately 44.1% in GFA recognised forcommercial properties and the increase in recognised ASP per sq.m. fromRMB9,325 in 2017 to RMB10,054 in 2018.


During the Year, the Group actively launched different real estate projects.Among them, the sales of Mingmen Xijun, Changge Sunshine City and King of theNorth achieved satisfactory results. The total contracted sales increased by 17.5%to RMB2,658.0 million as compared with 2017.


For land reserves, the Group acquired several parcels of land reservesin Yanling County and Yuzhou City with a site area of approximately 94,364sq.m. during the Year. As at 31 December 2018, the total land reserves of theGroup amounted to 3,462,634 sq.m., out of which 181,451 sq.m. was completed, 1,509,500sq.m. was under development, and 1,771,683 sq.m. was planned GFA held forfuture development.


For financial, the Company raised a net proceed of RMB309.8 million fromthe IPO after deducting underwriting commissions and related expenses. Coupledwith the growth in contracted sales and satisfactory collection of proceedsfrom property sales, the capital adequacy ratio was significantly improved. Asof 31 December 2018, the Group's cash and cash equivalents amounted to approximatelyRMB 419.5 million (at 31 December 2018: RMB165.0 million)and caused the Group's debt to equity ratio to decrease to 65.3%.


Looking ahead, Mr.Li Xiaobing, Chairman and Executive Director of Ever Reach Group said, "2018marked a milestone in the development history of the Group. The Group was successfullylisted on the Main Board of The Stock Exchange of Hong Kong Limited on 12November 2018, becoming the fourth real estate company in Henan Province which waslisted in Hong Kong, as well as the first listed real estate company in XuchangCity listed on the Stock Exchange. We will continue to enhance the brandawareness and influence of Ever Reach, consolidate the industry position of theGroup, further enhance the corporate governance level of the Company, and fullyleverage on the strength of the international capital market to achieve betterand more rapid development of the Company. The Group plans to expand itsbusiness through mergers, acquisitions, investments, joint ventures and businesscooperation. With the Group's strong strength in grasping market opportunities,its sound brand awareness in the industry, and the growth potential of the realestate market in Xuchang City, it is believed that the business of the Groupwill continue to grow."

About Ever Reach Group

Ever Reach Group one of the leading real estate development companies inXuchang City, Henan Province. It primarily focuses on developing residentialprojects and is involved in the development of commercial properties to alesser extent. In addition, it engages in urban redevelopment schemes initiatedby local government in order to access potentially available land reserves forits property development. It commenced its property development business with aprimary focus on Xuchang City and expanded in other strategically targetedareas in Henan Province. With a strong track record of more than 26 years inproperty development, it has been specialising in developing medium-scale to large-scaleproperty projects in Henan Province.