SRE Group 2017 interim results was announced：the net profit in the first half of the year was about
On August 29th, 2017, SRE Group’s performance conference
for the first half of 2017 was held in Hong Kong. He Bingwu, Chairman of the
board of directors, Peng Xinguang, CEO of the group and Zong Shihua, CFO of the
group attended the meeting. They introduced the group’s performance and
operating conditions for the first half of 2017 in details.
Net profit rose 895%
In the first half of 2017, the group posted 895% increase compared to that for the same period in 2016 profit to about 627 million yuan in the early six months of 2017, which achieved substantial growth. According to relevant peoples in the group, ending on June 30, 2017, the total assets of the group was about 24.2 billion yuan, net assets was about 7.7 billion yuan and the asset-liability ratio was 68.14%. Through project exit and new project development, the asset structure was further optimized. At the same time, the group continued to reduce the cost of capital that the average cost of financing reduced from 6.88% to 5.99% since December in 2016. The debt structure was also optimized that short-term debt risk was decreased gradually.
The developing ideas were more clearly
Relevant people in SRE Groups said that, after more than one year of exploration, especially with the support of large shareholders, the group gradually explored a suitable way of integration and development for their own “finance + industry + real estate” pattern. In this process, the big shareholder fully supported them in capital, brand, industry and management mechanism. In the area of urban comprehensive development, SRE Group drew on the development experience of Dongjiadu financial city and actively explored financial city products that focus on the integration of building life concentration and financial functions in core areas and key cities. On the development of featured small towns, SRE Group relied on the edges of major shareholders in real estate, integrated various resources and distributed its small town project via large data, general aviation, health care, finance and clean energy. Meanwhile, SRE Group, by seizing market opportunities, looked for undervalued assets to make mergers, acquisitions and disposal.
Internal governance became more standardized
SRE believed that reasonable-designed and standard-operation inner control system was always the focus of the reorganization since reorganization. In the first half of 2017, according to previous operation, the group combed and optimized institutional system and power- responsibility system. It paid attention to risk control by marking the event that the illegal guarantee of Meilan Lake asset packaging was removed and properly dealt with all illegal guarantee events before reorganization; Hence, it initially established internal and external supervision combined with the management mechanism of risk control. In the first half of this year, SRE Group also put forward talent motivation policy related to projects to encourage employees to create and share value actively.
In the standardization of governance, the group also continued to move forward on its project management. In the first half of this year, Chengdu, Shenyang and other major sales projects received good performance; demolition in Daxing Street, Shanghai and Dalian worked steadily. The group also further strengthened the project acquisition by successfully acquiring the San Francisco 75Howard project and reached gratifying progress on urban development, industrial towns and other layouts.