Kaisa Group Wechat

  • For enquiries related to Kaisa investors, please contact:

    Investor Relations

    Email:ir@kaisagroup.com

  • For enquiries related to human resources, please contact:

    Human Resources

    Email:hr@kaisagroup.com

  • For media enquiries, please contact:

    Public Relations

    Email:jtprir@kaisagroup.com

  • For enquiries related to corruption report, please contact:

    Auditing & Supervision

    Email:audit@kaisagroup.com

  • For enquiries related to projects for investment, please contact:

    Investment Department

    Email:tzms@kaisagroup.com

  • Kaisa Group Headquarter

    Suite 2001, 20/F, Two International Finance Centre, No.8 Finance Street, Central, Hong Kong

    33/F, Kerry Centre, Renmin South Road, Luohu, Shenzhen

Back
Kaisa Group Announces 2017 Annual Results
Release Time:2018-03-27 | Source:Kaisa Group

Highlights of 2017 Annual Results:

  • Total revenue increased by 84.4% to approximately RMB32,779.3 million from 2016

     

  • Gross profit during the year remarkably escalated by 286.4% to approximately RMB8,934.2 million, and gross profit margin increased by 14.3 percentage points to 27.3% from 13.0% in 2016

     

  • Profit for the year amounted to approximately RMB3,043.8 million. A loss of approximately RMB347.5 million was recorded in 2016

 

  • Core net profit (excluding changes in fair value of investment properties and financial derivatives, net of deferred tax, and gain on extinguishment of financial liabilities) amounted to RMB2,446.4 million 2017, as compared to core net loss of approximately RMB4,163.2 million in 2016

     

  • The Board recommends a final dividend of HK$11.8 cents per share

     

  • Core property business maintained rapid growth with contracted sales hit a record high, amounting to RMB44,714 million which represented 112% of sales target; recognized sales increased approximately 86%, demonstrating the speedy recovery and growth of the Group’s core business 

     

  • As of 31 December 2017, total land bank amounted to over 22.0 million sq. m., of which 58% was located in Bay Area

     

  • Following the inclusion into the MSCI China Small Cap Index in May 2017, and being selected as a constituent of the Hang Seng Composite Index, Hang Seng Stock Connect Hong Kong Index, Hang Seng Stock Connect Hong Kong Mid Cap & Small Cap Index and Hang Seng Stock Connect Hong Kong Small Cap Index in September 2017, the Group has been selected as a constituent of Hang Seng Composite LargeCap & MidCap Index since 5 March 2018, reflecting investors’ affirmation and recognition of the Company’s value


(27 March 2018, Hong Kong) Kaisa Group Holdings Limited (“Kaisa” or the “Group”, SEHK stock code: 1638), an integrated property developer established in Shenzhen with a nationwide presence in China, is pleased to announce its annual results for the year ended 31 December 2017 (the “Year”).


During the Year, the Group recorded a turnover of RMB32,779.3 million, representing an increase of 84.4% year-on-year, and the Group’s gross profit escalated by 286.4% to RMB8,934.2 million. Gross profit margin increased by 14.3 percentage points from 13.0% in 2016 to 27.3% in 2017. Profit attributable to equity holders and basic earnings per share were RMB3,284.9 million and RMB60.2 cents, respectively. Core net profit during the year amounted to approximately RMB2,446.4 million, as compared to core net loss of approximately RMB4,163.2 million in 2016. The Board recommends a final dividend of HK$11.8 cents per share.


In 2017, the Group achieved contracted sales of approximately RMB44,714 million, representing an increase of 49.8% year-on-year, while aggregated GFA sold for the year surged by 22.8% year-on-year to 2,786,289 sq. m. Contracted average selling price increased by approximately 22.0% to RMB16,048 per sq. m. as compared to the year of 2016. 


As of 31 December 2017, the Group’s total land bank amounted to over 22.0 million sq. m., of which 58% was located in Bay Area. During the Year, the Group successfully made its first foray into the property markets of Zhongshan in Guangdong province, Jiaxing and Shaoxing in Zhejiang province and Zhengzhou in Henan province to further consolidate the Group’s strategic presence in Bay Area and core cities surrounding Shanghai and Beijing.


In terms of urban renewal business, the Group actively tapped into the national urban renewal markets, and newly established its presence in Zhongshan, Huizhou, Dongguan and Foshan to capture the potential opportunities arising from the economic development in the Bay Area. Meanwhile, the Group continued to expedite land supply for existing urban renewal projects. In particular, the pre-sale of Shenzhen Kaisa Future City commenced in late 2017 and achieved satisfactory results. The pre-sale of Shenzhen Pinghu Kaisa Plaza is scheduled within the year of 2018 while Shenzhen Yantian City Plaza is currently under construction. Given the urban renewal projects will commence pre-sale successively, the Group is well-prepared for its future sales.


In face of the changes in China’s economic structure, the Group actively explored new opportunities under the new economic normal, and developed new businesses that are supported by national policies with promising prospects, such as new technology, comprehensive health, culture and sports and tourism industries. During the Year, the Group successfully acquired interests in Nam Tai Property Inc., Guangdong Mingjia Lianhe Mobile Technology Co. Ltd. and Zhenxing Biopharmaceutical & Chemical Co., Ltd. The Group also gained control over Kaisa Health Group Holdings Limited (formerly known as Mega Medical Technology Limited), to strengthen its operation and management capabilities, so as to lay a solid foundation for the Group’s sustainable development in the new economic landscape.


The Group actively seized opportunities in overseas markets. On 30 June 2017, the Group completed an Exchange Offer and successfully issued new senior notes amounting to a total of US$3.45 billion, including 7.25% senior notes due 2020, 7.875% senior notes due 2021, 8.50% senior notes due 2022 and 9.375% senior notes due 2024. Subsequently, in August, September and November 2017, the Group issued additional new senior notes of US$285 million, US$805 million and US$619 million, respectively, for refinancing existing debt, financing existing and new property projects and general corporate purposes. The financing arrangements enabled the Group to extend the maturity of its indebtedness while strengthening the Group’s cash flow management. As for domestic financing, the Group will continue to deepen cooperation with all major banks to secure funding for subsequent development.


Following the inclusion into the MSCI China Small Cap Index in May 2017, and being selected as a constituent of the Hang Seng Composite Index, Hang Seng Stock Connect Hong Kong Index, Hang Seng Stock Connect Hong Kong Mid Cap & Small Cap Index and Hang Seng Stock Connect Hong Kong Small Cap Index in September 2017, the Group has been selected as a constituent of Hang Seng Composite LargeCap & MidCap index since 5 March 2018, reflecting investors’ affirmation and recognition of the Company’s value.


Looking ahead, Mr. Kwok Ying Shing, Chairman and Executive Director of Kaisa Group, said, “In 2018, the Group will continue to exploit its advantage as an early mover in Bay Area, also seize opportunities to launch projects and accelerate de-stocking and collection of sales proceeds, while closely monitoring changes of market conditions and flexibly adjusting its sales strategies, so as to attain rational growth. Meanwhile, with our diversified businesses, we will also strengthen our capabilities in operation management to confront the challenges under the new market trends.”


“As the Central Government endeavours to emphasize on both rental housing and home purchasing, the rental market shall become an indispensable part of the property market. The Group will devote to exploring a feasible business model in the long-term rental market, while speeding the penetration of the rental apartment and co-working fields in Tier 1 and major Tier 2 cities, in order to optimize the operation of housing stock and provide new urban immigrants of young and middle ages and new class with comprehensive high-quality space and services.”


Mr. Kwok continued, “To correspond to the needs of optimization of China’s economic structure as well as upgrade and transformation of the industry, the Group will capitalize on its achievements in business diversification and explore the suitable business model for the Group’s development of characteristic towns, in order to establish its nationwide presence. Currently, the Group had initially formed four product lines for towns with distinctive features. In the future, the Group will continue to identify resources with local characteristics within the five major city clusters and along the ‘Belt and Road’ in China, in which the economic base and population would be able to support its project development, so as to lay a sound foundation for the Group’s development in the new economic era.”