Ruifang core profits rose by 75%
Shui On Land (00272) announced its annual results, with a turnover of 18.451 billion yuan (RMB), up 4.8% year-on-year; net profit of 1.669 billion yuan, up 53.4% year-on-year. Taking into account the profits generated from the disposal of equity in investment properties and commercial properties, the core profit was 75% to HK$3.147 billion; the final dividend was HK7 cents per share, which represented an increase of 79% over the previous year.
Three new investments were made during the period to increase land reserves, and the joint venture partners newly invested in two development sites, including Wuhan Optics Valley and Ruihong New City No. 167, with a total construction area of 1.511 million square meters. The Group also purchased two new office buildings in Yangpu District, Shanghai, strengthened the future development of the KIC Group, and expanded the Group’s business in the Shanghai office market.
Reaffirming no plan for privatization
Chairman Luo Kangrui said that the net debt ratio of the group dropped from 68% in 2016 to 51% last year; as the mainland property market regulation will continue and adjustments are expected in the future, the company is committed to maintaining a low gearing ratio. In the future, the company will still have the ability to make acquisitions when major adjustments are made.
He responded to the plan to privatize the early-stage company and pointed out that a number of investment banks had contacted the group for privatization in the past few years and formulated plans for the company to consider. This time, due to the outflow of relevant documents, this caused rumors. However, he stressed that the company does not currently have a privatization plan.