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47
Glorious Property
Annual Report 2011
Financial Review (Continued)
PROFIT ATTRIBUTABLE TO THE COMPANY’S EQUITY HOLDERS
The Group’s profit attributable to the Company’s equity holders for the year ended 31 December 2011 was RMB2,215.7
million, representing a decrease of 38.6% compared to RMB3,608.6 million for 2010. Profit attributable to the equity
holders, excluding fair value gain from investment properties and the related tax effect, and other one-off gains/losses,
amounted to RMB1,734.9 million (2010: RMB1,304.1 million), representing 18.1% of the Group’s revenue for the year
ended 31 December 2011 (2010: 18.3%).
CURRENT ASSETS AND LIABILITIES
As at 31 December 2011, the Group held total current assets of approximately RMB39,112.9 million (2010:
RMB34,288.9 million), comprising mainly properties under development, trade and other receivables and prepayments
and cash and bank balances. Properties under development increased by 36.1% from RMB16,791.8 million as at 31
December 2010 to RMB22,862.1 million as at 31 December 2011, mainly attributable to the continuous progress of the
Group’s property development projects in 2011 and an increase in the number of projects under construction. Trade
and other receivables and prepayments increased by 29.6% from RMB7,672.9 million as at 31 December 2010 to
RMB9,942.4 million as at 31 December 2011, mainly due to higher balance of prepayment for land premium as at 31
December 2011 whereby the relevant land use right certificates had yet to be obtained as at 31 December 2011. Total
cash and bank balances decreased from RMB5,835.3 million as at 31 December 2010 to RMB3,166.4 million as at 31
December 2011. Total current liabilities as at 31 December 2011 amounted to RMB25,282.6 million, compared with
RMB18,023.9 million as at 31 December 2010, which was mainly due to an increase in short-term borrowings that are
due for repayment in 2012. As at 31 December 2011, the current ratio (calculated as the total current assets divided by
the total current liabilities) was 1.5 (2010: 1.9). The decrease in the current ratio in 2011 was mainly due to higher level
of current borrowings.
LIQUIDITY AND FINANCIAL RESOURCES
During 2011, the Group funded its property development projects principally from proceeds from pre-sales of properties
and bank loans.
As at 31 December 2011, the Group had cash and cash equivalents of RMB1,021.1 million, as compared to
RMB4,151.4 million as at 31 December 2010.