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(incorporated in Bermuda with limited liability)
(Stock Code: 581)
ANNOUNCEMENT OF 2018 ANNUAL RESULTS
FINANCIAL HIGHLIGHTS
Year ended 31 December | |||||
2018 | 2017 | Change | |||
Sales volume (tonnes) | |||||
- Self-manufactured steel products | 10.45 million | 11.75 million | (11.1%) | ||
- Trading of steel products | 0.08 million | 0.10 million | (20.0%) | ||
10.53 million | 11.85 million | (11.1%) | |||
Revenue (RMB) | |||||
- Sale of self-manufactured steel products | 35.68 billion | 36.50 billion | (2.3%) | ||
- Sales of properties | 0.19 billion | 1.14 billion | (82.9%) | ||
- Others | 4.91 billion | 3.71 billion | 32.3% | ||
40.78 billion | 41.35 billion | (1.4%) | |||
Gross profit (RMB) | |||||
- Sale of self-manufactured steel products | 6,602 million | 6,946 million | (5.0%) | ||
- Sales of properties | 72 million | 147 million | (51.0%) | ||
- Others | 117 million | 199 million | (41.2%) | ||
6,791 million | 7,292 million | (6.9%) | |||
Gross profit per tonne (RMB) | |||||
- Sale of self-manufactured steel products | 632 yuan | 591 yuan | 6.9% | ||
*For identification purpose only
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Year ended 31 December | |||
2018 | 2017 | Change | |
EBITDA1 (RMB) | 7,619 million | 7,474 million | 1.9% |
EBITDA margin | 18.7% | 18.1% | N/A |
EBIT2 (RMB) | 6,459 million | 6,406 million | 0.8% |
EBIT margin | 15.8% | 15.5% | N/A |
Profit before income tax (RMB) | 6,299 million | 6,408 million | (1.7%) |
Profit for the year (RMB) | 4,861 million | 4,883 million | (0.5%) |
Profit attributable to owners | |||
of the Company (RMB) | 4,782 million | 4,839 million | (1.2%) |
Basic earnings per share (RMB) | 1.31 yuan | 1.39 yuan | (5.8%) |
Final dividends per share (HK$) | 0.11 dollar | 0.22 dollar | (50.0%) |
Special dividends per share (HK$) | 0.07 dollar | 0.11 dollar | (36.4%) |
Total dividends per share for the year5 (HK$) | 0.37 dollar | 0.46 dollar | (19.6%) |
Return on equity3 | 30.5% | 41.8% | N/A |
As at 31 December | |||
2018 | 2017 | Change | |
Total assets (RMB) | 29.61 billion | 24.41 billion | 21.3% |
Net assets value per share | |||
(exclude non-controlling interests) (RMB) | 4.68 yuan | 3.94 yuan | 18.8% |
Debt-to-capital ratio 4 | 15.9% | 16.9% | N/A |
1China Oriental Group Company Limited (the "Company") defines EBITDA as profit for the year before finance (costs)/ income - net, income tax expense, amortisation of intangible assets, amortisation of leasehold land and land use rights, depreciation and non-recurring items. Non-recurring item for the year ended 31 December 2018 included approximately RMB 34 million (2017: nil) as impairment loss on investment in an associate.
2The Company defines EBIT as profit for the year before finance (costs)/income - net, income tax expense and non- recurring items. Non-recurring item for the year ended 31 December 2018 included approximately RMB 34 million (2017: nil) as impairment loss on investment in an associate.
3
4
Return on equity is calculated as profit attributable to owners of the Company divided by the average of the beginning and ending balances of the equity attributable to owners of the Company for that year.
Debt-to-capital ratio is calculated as total debt divided by total capital. Total debt includes current and non-current borrowings, other long-term payables and loans from related parties. Total capital includes non-current borrowings and its equity attributable to owners of the Company.
5Total dividends per share for the year include interim dividend of HK$ 0.19 per share (2017: HK$ 0.13 per share).
2
The board (the "Board") of directors (the "Director(s)") of the Company is pleased to announce the audited consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2018 together with the comparative figures as follows:
CONSOLIDATED STATEMENT OF PROFIT OR LOSS | |||||
Year ended 31 December | |||||
2018 | 2017 | ||||
Note | RMB'000 | RMB'000 | |||
Revenue | 3 | 40,782,302 | 41,352,596 | ||
Cost of sales | 4 | (33,991,503) | (34,060,715) | ||
Gross profit | 6,790,799 | 7,291,881 | |||
Other income | 5 | 35,394 | 37,661 | ||
Distribution costs | 4 | (85,817) | (103,641) | ||
Administrative expenses | 4 | (735,705) | (751,310) | ||
Reversal of/(provision for) impairment on financial assets, net | 4 | 218,371 | (135,231) | ||
Other expenses | 4 | (23,148) | (22,009) | ||
Gains/(losses) from derivative financial instruments | 6 | 29,872 | (75,196) | ||
Other gains - net | 7 | 231,311 | 163,040 | ||
Operating profit | 6,461,077 | 6,405,195 | |||
Finance income | 8 | 35,721 | 81,001 | ||
Finance costs | 8 | (161,315) | (78,855) | ||
Finance (costs)/income - net | (125,594) | 2,146 | |||
Impairment loss on investment in an associate | (34,122) | - | |||
Share of results of associates and a joint venture | (1,941) | 389 | |||
Profit before income tax | 6,299,420 | 6,407,730 | |||
Income tax expense | 9 | (1,438,899) | (1,524,566) | ||
Profit for the year | 4,860,521 | 4,883,164 | |||
Profit attributable to: | |||||
Owners of the Company | 4,781,678 | 4,839,080 | |||
Non-controlling interests | 78,843 | 44,084 | |||
4,860,521 | 4,883,164 | ||||
Earnings per share for profit attributable to | |||||
owners of the Company | |||||
(expressed in RMB per share) | |||||
- Basic earnings per share | 10 | RMB 1.31 | RMB 1.39 | ||
- Diluted earnings per share | 10 | RMB 1.31 | RMB 1.37 | ||
3
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||
Year ended 31 December | ||||
2018 | 2017 | |||
RMB'000 | RMB'000 | |||
Profit for the year | 4,860,521 | 4,883,164 | ||
Other comprehensive income: | ||||
Items that may be reclassified subsequently to profit or loss | ||||
Fair value gains on financial assets at fair value | ||||
through other comprehensive income | 5,735 | - | ||
Fair value losses on available-for-sale financial assets | - | (7,317) | ||
Items reclassified to profit or loss | ||||
Transfer of fair value gains previously credited to reserve to | ||||
statement of profit or loss upon disposal of financial assets | ||||
at fair value through other comprehensive income | (2,635) | - | ||
Transfer of fair value gains previously credited to reserve to | ||||
statement of profit or loss upon disposal of available-for-sale | ||||
financial assets | - | (1,259) | ||
3,100 | (8,576) | |||
Total comprehensive income for the year | 4,863,621 | 4,874,588 | ||
Attributable to: | ||||
Owners of the Company | 4,784,778 | 4,830,504 | ||
Non-controlling interests | 78,843 | 44,084 | ||
4,863,621 | 4,874,588 | |||
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CONSOLIDATED BALANCE SHEET | ||||
As at 31 December | ||||
2018 | 2017 | |||
ASSETS | Note | RMB'000 | RMB'000 | |
Non-current assets | 181,499 | |||
Leasehold land and land use rights | 12 | 187,311 | ||
Property, plant and equipment | 12 | 7,559,747 | 8,160,582 | |
Investment properties | 12 | 187,184 | 238,920 | |
Intangible assets | 12 | 129,647 | 94,132 | |
Investment in associates and a joint venture | 121,858 | 157,921 | ||
Available-for-sale financial assets | - | 432,111 | ||
Financial assets at fair value through | 487,376 | |||
other comprehensive income | - | |||
Financial assets at fair value through profit or loss | 18 | 243,120 | - | |
Prepayments, deposits and other receivables | 13 | 729,364 | - | |
Loan receivables | 17 | 720,000 | - | |
Deferred income tax assets | 270,989 | 179,339 | ||
Total non-current assets | 10,630,784 | 9,450,316 | ||
Current assets | ||||
168,790 | ||||
Properties under development and held for sale | 14 | 282,019 | ||
Inventories | 15 | 3,107,511 | 3,069,897 | |
Trade receivables | 16 | 661,951 | 693,932 | |
Prepayments, deposits and other receivables | 13 | 1,439,935 | 1,422,590 | |
Amounts due from related parties | 185,906 | 173,951 | ||
Prepaid current income tax | 29,176 | 80,101 | ||
Loan receivables | 17 | 40,328 | - | |
Notes receivable - bank acceptance notes | 16 | 1,364,128 | 3,282,570 | |
Derivative financial instruments | 2,157 | 209 | ||
Financial assets at fair value through profit or loss | 18 | 6,567,243 | 2,766,237 | |
Restricted bank balances | 527,542 | 417,151 | ||
Cash and cash equivalents | 2,845,229 | 2,766,396 | ||
Structured bank deposits | 19 | 2,037,900 | - | |
Total current assets | 18,977,796 | 14,955,053 | ||
Total assets | 29,608,580 | 24,405,369 | ||
EQUITY | ||||
Equity attributable to owners of the Company | 380,628 | |||
Share capital | 364,762 | |||
Share premium | 3,532,234 | 2,820,785 | ||
Other reserves | 1,473,735 | 1,744,091 | ||
Retained earnings | 12,020,989 | 8,982,541 | ||
17,407,586 | 13,912,179 | |||
Non-controlling interests | 273,962 | 192,589 | ||
Total equity | 17,681,548 | 14,104,768 | ||
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China Oriental Group Co. Ltd. published this content on 28 March 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 28 March 2019 15:20:03 UTC