the frequent safety accidents in country garden in 2018 provoked the controversial company to make such a statement

in 2018, the real estate market was in turmoil. As one of the leading companies in the real estate industry, country garden (02007, HK), one of the top 500 in the world, has repeatedly fallen into the public opinion vortex of safety accidents

how is the performance in the past year? On March 18, country garden released its 2018 annual report. The safety accidents did not seem to affect its performance at all. The annual operating revenue and profit were far better than expected. The annual operating revenue was 379.08 billion yuan, up 67.1% year on year, and the net profit was 48.54 billion yuan, up 68.8% year on year

at the same time, country garden said in its annual report that it would pay more attention to stability and safety, constantly reflect on and correct mistakes, ensure that country garden is on the right road, attach great importance to safety issues, thoroughly eliminate potential safety hazards, and grasp quality< On March 18, country garden released its annual report on the Hong Kong stock exchange. According to the annual report, in 2018, the group, together with its joint ventures and associated companies, realized a total contract sales amount of about RMB 501.88 billion, and the contract sales area of about 54.16 million square meters, with a year-on-year growth of 31.25% and 23.06% respectively, The growth rate exceeds the average level of the industry in terms of operating performance, the annual revenue of country garden in 2018 was 379.08 billion yuan, up 67.1% year on year; Gross profit was 10.48 billion yuan, up 74.3% year on year; Net profit was 48.54 billion yuan, up 68.8% year on year; The net profit attributable to shareholders was 34.62 billion yuan, up 32.8% year on year as for the substantial growth of performance, country garden explained that thanks to the continuous growth of contract sales and the timely delivery of real estate brought by the efficient construction management system, the income from real estate development kept growing, while other income such as construction, property investment and hotel operation remained stable; At the same time, the increase in the income of the property and the average selling price and gross profit rate of the property led to a substantial increase in profits in addition, revenue growth, debt decline and financial stability have also become the main theme of the annual report data. According to the financial report of country garden, in 2018, the consolidated real estate sales received about 541.29 billion yuan in cash, which is the third consecutive realization of net operating cash flow since 2016 by the end of 2018, the balance of available cash of country garden is about RMB 242.54 billion, and the bank credit line of about RMB 301.7 billion has not been used, so the working capital is abundant. Country garden’s business covers about 31 provinces / autonomous regions / municipalities, 269 prefecture level cities and 1156 counties / towns in mainland China in 2018, the board of directors of country garden proposed to pay a final dividend of 30.32 points per share in cash, a year-on-year increase of 21.5%, and a total dividend of 48.84 points per share for the whole year, a year-on-year increase of 38.0%. 1n addition, in 2018, the basic earnings per share of country garden was 1.61 yuan, up 30.9% year on year for the future of macro-economy and real estate industry, country garden said that the development of the company has gone through several real estate industry cycles, and fluctuation is the normal state of the real estate industry. China’s urbanization is an irreversible tide of the times, and the future scale of the real estate market will still be huge. As a real estate company, we need to constantly think about how to further enhance its competitiveness constantly and profoundly reflect on mistakes many safety accidents occurred in mid-2018, which made country garden once fall into the public opinion accusation of pursuing speed and ignoring safety. After the accident, country garden said that it has carried out self-examination and correction since the second half of the year “stability also means security. We will constantly reflect on and correct our mistakes to ensure that country garden is on the right path. Only when we attach great importance to safety issues, thoroughly eliminate potential safety hazards, and do a good job in quality, can we meet country garden’s business philosophy of “being good to people and society.” Country garden said in its 2018 annual report looking back on the past, in the rainstorm weather, in July 2018, the collapse of external walls and prefabricated houses occurred in the country garden Lu’an project in Anhui Province, resulting in six deaths. Among the remaining 10 injured people, one was in critical condition and two were seriously injured, which aroused strong concern from the outside world prior to the Lu’an project in Anhui Province, public reports showed that other cities in country garden, such as Chongzuo in Guangxi, Shanghai and Jiangsu, also had many safety accidents in response to a number of construction site safety accidents, in August 2018, country garden held a media meeting and made a concentrated response. Mo bin, President of country garden, bowed and apologized at the scene on the afternoon of March 18, country garden held the 2018 performance conference in Hong Kong. Mo bin, President of country garden, said, “since the second half of last year, we have made quality improvement and speed control our top priority. We require zero casualties. 1n every joint and every cycle, we hope to develop from high speed to quality. “ Yang Guoqiang, chairman of the board of directors of country garden, said, “1 want Mo bin to emphasize that speed and efficiency must give way to safety and quality, otherwise the company will not go far.” in January this year, Mo bin, President of country garden, said in his new year’s message in 2019 that in 2018, we will continue to revise and improve ourselves, deeply reflect on the public opinions of past accidents, resolutely implement the work requirements of the chairman of the board of directors, put safety and quality first, and establish a more perfect safety and quality control system, so as to heal the wounds, Comprehensively improve the level of enterprise management, reflecting the responsibility of industry leaders for the real estate market in 2019, country garden expects that, on the one hand, the state will continue to implement differentiated regulation policies and accelerate the establishment and improvement of long-term mechanism to promote the steady and healthy development of the real estate market; At the same time, the competition of the real estate industry will be more intense, the industry integration will be strengthened, and the market will be further divided on the other hand, the process of urbanization in China is far from over, the demand of residents in counties and towns to improve their living environment will continue, and the vast urban market has great prospects facing the challenges and opportunities brought by the new situation of the industry, country garden said that it will adhere to the steady financial policy and risk control measures, ensure the construction quality and safety, strengthen the contract sales and payment collection, and strictly control various costs and expenses, so as to ensure the good performance of operating cash flow and return on investment Xiaobian reminds: company development needs to control cost and shorten construction period, but safety should be the first factor

Back to list