China News Network, March 27. Country Garden Holdings Co., Ltd. (02007.HK) handed in the 2019 transcript on March 27. Various indicators show that the group's operating style has become more stable on the basis of continued growth in profits.

At the same time, Country Garden continued to strengthen its cash flow management. At the end of the period, the cash balance was close to 268.35 billion yuan, with ample positions. At the same time, the company's net borrowing ratio dropped to an industry low of 46.3%, and it actively implemented the development strategy of "stability and stability".

In view of Country Garden's good operating and financial performance, the international rating agencies have given higher recognition to the Group. Fitch rated the company as BBB- with a stable outlook and investment grade; S & P rated the company as BB + with stable outlook; Moody's rated the company as Ba1 with a positive outlook.

Revenue increased 28.2% year-on-year

The results disclosed by Country Garden show that the Group's total operating income for the whole year of 2019 is approximately 485.91 billion yuan (RMB, the same below), an increase of 28.2% year-on-year; gross profit is 126.64 billion yuan, an increase of 23.6% year-on-year; net profit is approximately 61.2 billion RMB, a year-on-year increase of 26.1%; core net profit attributable to shareholders was approximately 40.12 billion yuan, a year-on-year increase of 17.6%; basic earnings per share was 1.85 yuan, a year-on-year increase of 14.9%.

The Board of Directors recommended the payment of a final dividend of RMB 34.25 cents per share, an increase of 13% year-on-year. After the interim dividend was added, the total annual dividend per share was 57.12 cents, an increase of 17% year-on-year. The annual dividend amount was approximately 12.4 billion, continuing to give back to investors.

From its listing in 2007 to 2018, Country Garden has implemented cash dividends 12 times, with a cumulative cash dividend of 46.582 billion yuan and an average dividend rate of 32.82%. Adding in the 12.4 billion dividends in 2019, Country Garden's total dividends have reached 58.982 billion. Regardless of the dividend rate or the cumulative dividend amount, they are at a relatively high level in the industry.

At the same time, in 2019, the Group has achieved a total tax payment of 70.2 billion for all taxes, solemnly fulfilling its commitment to give back to society.

Equity recovery rate up to 96%

As of December 31 last year, Country Garden Group and its joint ventures jointly realized contracted sales attributable to the shareholders of the group of approximately RMB 552.2 billion, a year-on-year increase of 10.0%; contracted sales area attributable to the shareholders of the group amounted to approximately 62.37 million Square meters, a year-on-year increase of 15.2%; the rate of de-allocation of equity sales is as high as 72%, and the sales volume of equity contracts continues to lead the industry.

Last year, Country Garden's equity sales grew steadily, and its cash management level further improved. The Group's consolidated real estate sales cash repayment was approximately 589.86 billion yuan, of which the equity sales cash withdrawal was approximately RMB 530.1 billion. The equity sales repayment rate was as high as 96%. The repayment rate increased by 5 percentage points from the 91% in 2018, which is much higher. To the industry average.

In view of the substantial increase in sales repayments, Country Garden's net operating cash flow has been positive for four consecutive years, which to a certain extent reflects Country Garden's strong financial control capabilities and strong fund security.

As of December 31 last year, Country Garden's book had a cash balance of 268.35 billion yuan, accounting for 14.1% of total assets. Another 316.79 billion yuan bank credit line has not been used.

In 2020, the Group will continue to adopt a business strategy to promote sales and collect funds. The total value of sales for the whole year is expected to reach 906.6 billion. At the same time, it will continue to make ends meet and maintain a prudent investment strategy to ensure adequate cash flow and absolute financial leverage. Safety.

Net borrowing ratio further drops to 46.3%

In 2019, the financing environment for domestic real estate companies has tightened, and financing costs have risen significantly. However, Country Garden has always adhered to the bottom line of “stable operations”, and the level of leverage and financing costs are still low in the industry.

As of the end of last year, Country Garden's net borrowing ratio was only 46.3%, a year-on-year decrease of 3.3 percentage points. Especially commendable is that after a period of rapid growth in the past few years, Country Garden has maintained a net loan ratio of less than 70% for many years, which is very rare in the domestic front-line real estate army.

In the middle of last year, the "2019 China Real Estate Listed Company Evaluation Research Report" jointly released by the China Real Estate Association and the China Real Estate Evaluation Center of Shanghai E-House Real Estate Research Institute revealed that there are 125 listed real estate companies in Shanghai and Shenzhen and 83 real estate companies listed in Hong Kong. As well as 2 overseas listed companies, a total of 210 real estate companies at the end of 2018 increased the average net debt ratio by 2.65 percentage points year-on-year to 92.52%. As a head real estate enterprise, Country Garden maintained a net borrowing ratio of less than 70% for 12 years, showing the company's thick financial security mat.

The data shows that Country Garden's total interest-bearing liabilities as of the end of 20198 were approximately 369.6 billion (including bank and other borrowings, senior notes, corporate bonds and convertible bonds), of which short-term interest-bearing debts to be repaid within one year were 11,63 billion, It accounts for 31% of total interest-bearing liabilities, and most of the rest are long-term liabilities with a term of more than one year.

At the same time, the Group's cash balance of approximately 268.35 billion covers 2.3 times of short-term interest-bearing debt, showing a stable operating state. The Group's unsold carry-over income without value-added tax reached 715.8 billion yuan. With the delivery of these resources carried forward, the Group's net profit and shareholders' equity will also be steadily increased to ensure that financial leverage is at a low level.

Based on the rapid growth of the company's operating performance and sound financial management and control, Country Garden has performed well in the capital market and has been recognized and supported by rating companies and major financial institutions.

Last year, Country Garden was selected to the Fortune Global 500 companies for the third consecutive year, and its ranking climbed 176 to 177 compared to 2018.