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

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Financial Highlights:

HONG
KONG, 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 estate
development companies in Xuchang City, Henan Province, announce today its
annual results for the year ended 31 December 2018 (the “Year”).

 

For the year ended 31 December 2018, the Group’s total revenue increased
by 21.5% from RMB1,549.9 million in 2017 to RMB1,883.6 million in 2018. During
the Year, the gross profit increased by 55.6% to RMB629.9 million. Gross profit
margin was approximately 33.4% in 2018, representing an increase of 7.3
percentage points from 26.1% in 2017. The profit attributable to the owners of
the Company increased by 51.9% to approximately RMB224.5 million. The basic
earnings per share increased by 50% to RMB24 cents as compared with 2017. The
Board 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 properties
amounted to RMB1,247.4 million, accounting for 66.3% of the sales of
properties; sales of commercial properties amounted to RMB548.6 million,
accounting for 29.2% of the sales of properties. The increase in sales of
residential properties was mainly due to the effect of increase of recognised
ASP 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 the
joint effect of the increase of approximately 44.1% in GFA recognised for
commercial properties and the increase in recognised ASP per sq.m. from
RMB9,325 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 the
North 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 reserves
in Yanling County and Yuzhou City with a site area of approximately 94,364
sq.m. during the Year. As at 31 December 2018, the total land reserves of the
Group amounted to 3,462,634 sq.m., out of which 181,451 sq.m. was completed, 1,509,500
sq.m. was under development, and 1,771,683 sq.m. was planned GFA held for
future development.

 

For financial, the Company raised a net proceed of RMB309.8 million from
the IPO after deducting underwriting commissions and related expenses. Coupled
with the growth in contracted sales and satisfactory collection of proceeds
from property sales, the capital adequacy ratio was significantly improved. As
of 31 December 2018, the Group’s cash and cash equivalents amounted to approximately
RMB 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, “2018
marked a milestone in the development history of the Group. The Group was successfully
listed on the Main Board of The Stock Exchange of Hong Kong Limited on 12
November 2018, becoming the fourth real estate company in Henan Province which was
listed in Hong Kong, as well as the first listed real estate company in Xuchang
City listed on the Stock Exchange. We will continue to enhance the brand
awareness and influence of Ever Reach, consolidate the industry position of the
Group, further enhance the corporate governance level of the Company, and fully
leverage on the strength of the international capital market to achieve better
and more rapid development of the Company. The Group plans to expand its
business through mergers, acquisitions, investments, joint ventures and business
cooperation. With the Group’s strong strength in grasping market opportunities,
its sound brand awareness in the industry, and the growth potential of the real
estate market in Xuchang City, it is believed that the business of the Group
will continue to grow.”

About Ever Reach Group

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