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Management Discussion and Analysis -
Financial Review
Glorious Property
Annual Report 2011
Financial Review
The Group achieved significant growth in revenue from property development in 2011. In 2011, revenue increased
by 34.7% to RMB9,585.4 million, which was substantially generated from sales of residential properties. Net profit
attributable to the Company’s equity holders for the year ended 31 December 2011 amounted to RMB2,215.7 million,
representing a decrease of 38.6% from the previous year primarily due to decrease in gross profit margin and fair value
gain of investment properties. Net profit attributable to the Company’s equity holders for the year ended 31 December
2011, excluding fair value gain of investment properties and the related tax effect and other one-off gains/losses,
amounted to RMB1,734.9 million, representing an increase of 33.0% as compared to last year.
Results for the year ended 31 December 2011 are as follows:
RMB’000
2011
2010
Revenue
9,585,443
7,114,025
Cost of sales
(5,788,246)
(3,694,934)
Gross profit
3,797,197
3,419,091
Other income
182,695
803,239
Other gains, net
724,419
2,410,578
Selling and marketing expenses
(240,998)
(197,133)
Administration expenses
(435,957)
(421,057)
Finance costs
(2,526)
(3,750)
Share of profit of an associate
338
1,351
Share of loss of a jointly controlled entity
(4,143)
(50,090)
Profit before income tax
4,021,025
5,962,229
Income tax expenses
(1,811,944)
(2,353,451)
Profit for the year
2,209,081
3,608,778
Profit attributable to:
— the Company’s equity holders
2,215,654
3,608,552
— non-controlling interests
(6,573)
226
Profit for the year
2,209,081
3,608,778
REVENUE
For the year ended 31 December 2011, the Group recorded consolidated revenue of RMB9,585.4 million, representing
a growth of 34.7% compared to RMB7,114.0 million in 2010. The higher revenue in 2011 was mainly due to more
properties delivered in 2011 than 2010. During the current year, the Group delivered properties of 1,012,818 sq.m., as
compared to 505,295 sq.m. for the year ended 31 December 2010. Due to the higher proportion of properties delivered
in the second- and third-tier cities in current year, recognised average selling price decreased to RMB9,460 per sq.m. in
2011 from RMB14,071 per sq.m. in 2010.
Royal Lakefront in Shanghai, Harbin Villa Glorious and Shanghai Bay in Shanghai were the three projects that
contributed highest revenue for current year, amounting RMB3,494.5 million, RMB1,852.5 million and RMB1,319.9
million respectively, representing 36.5%, 19.3% and 13.8% of the Group’s consolidated revenue for the year ended
31 December 2011. Other new projects, including Nantong Glorious Chateau and Hefei Villa Glorious, started to
contribute revenue for the Group in 2011 and the revenue from these new projects accounted for 15.3% of the Group’s
total revenue in 2011.