Financial Highlights

The Group achieved revenue growth of 62% to RMB3.6 billion in FY2015, from RMB2.2 billion in FY2014. This was mainly due to overall higher average selling prices ("ASP") of its property units and an increase in gross floor area ("GFA") sold and recognized during the year. ASP increased by approximately 52% or RMB2,742 per sqm in FY2015. The number of property units handed over to customers also increased. The aggregate GFA sold and recognized increased by approximately 6% or 25,326 sqm, to 446,106 sqm for FY2015. This was mainly driven by its Suzhou Royal Palace, Zhangjiagang Royal Palace and Xuzhou Royal Palace projects. These three property projects contributed approximately 70.0% of total revenue for FY2015.

FY2015 saw an encouraging increase in pre-sales activities. The Group achieved pre-sales GFA of approximately 377,694 sqm (FY2014: approximately 307,788 sqm) with an aggregate consideration of approximately RMB4.2 billion (FY2014: approximately RMB2.5 billion) from the China property market in FY2015. The Group also saw an increase in the ASP of units presold by approximately RMB3,045 per sqm. This was mainly due to the launch and pre-sales of its Suzhou Royal Palace and Suzhou Industrial Park Royal Mansion projects in FY2015. These two projects are situated at prime locations and therefore commanded higher ASP.

The Group also launched its pre-sales activities for three of its development projects in Australia during the year. A total of 314 units from these projects – Vivir, Illumina, and Uptown, have been pre-sold with an aggregate consideration of AUD222.9 million.

Along with the increase in revenue, the Group's gross profit increased by 61% to RMB297.8 million in FY2015, from RMB184.7 million. Gross profit margin in FY2015 remained stable at 8.3%.

Other income amounting to RMB95.0 million in FY2015 consisted mainly of fair value gains from investment properties that relate to the commercial retail units of Suzhou Xingshang Tiandi. This was 57% lower than that in FY2014 as FY2014 consisted of fair value gains from the commercial retail units of Phase 2 of Suzhou Royal Palace, gains on disposal of joint ventures and government grant received in relation to the Zhangjiagang Royal Palace project.

Operating profit increased 37% to RMB205.9 million in FY2015, from RMB150.3 million in FY2014 mainly due to the absence of one-off RTO-related expenses of RMB105.6 million incurred in FY2014. With increased business activities, the Group's selling and distribution expenses and administrative expenses were 18% higher respectively.

Share of loss of joint ventures in FY2015 amounting to RMB1.3 million was mainly from Suzhou Gaoxin. Share of loss of joint ventures in FY2014 were mainly from Shanghai Real Estate Group and Xuzhou Chiway.

As a result of the above, the Group recorded net profit attributable to owners of the Company of RMB37.7 million in FY2015.

BALANCE SHEET


The Group's total assets increased from RMB10.1 billion as at 31 December 2014 to RMB11.2 billion as at 31 December 2015, while total liabilities increased from RMB9.1 billion as at 31 December 2014 to RMB9.9 billion as at 31 December 2015. The Group achieved net asset attributable to owners of the Company of RMB515.2 million as at 31 December 2015. Based on the total number of issued shares of 666,851,006, this translates into a net asset value of RMB77.26 cents as at 31 December 2015, compared with RMB72.95 cents as at a year ago.

Non-current assets increased by RMB165.4 million to RMB1.1 billion as at 31 December 2015 mainly due to an increase in investment properties of RMB185.4 million for the costs incurred for investment properties under development and a gain from the change in fair value of investment properties. This was partially offset by the decrease in interest in joint ventures of RMB9.3 million and a decrease in deferred tax assets of RMB8.6 million as at 31 December 2015.

Current assets increased by RMB845.5 million to RMB10.1 billion as at 31 December 2015 mainly due to increase in trade receivables, other receivables and advance payments of RMB1.9 billion owing to the increases in advance payments made to land suppliers and prepaid tax, and increase in cash and cash equivalents of RMB72.3 million. This was partially offset by the decrease in development properties of RMB1.1 billion due largely to the handover of units sold.

Non-current liabilities increased by RMB502.2 million to RMB3.3 billion as at 31 December 2015 due to an increase in loans from financial institutions of RMB468.5 million and a RMB33.7 million increase in deferred tax liabilities.

Current liabilities was RMB296.8 million higher at RMB6.6 billion, due mainly to the increase in trade payables, other payables and advance receipts of RMB472.2 million. This was partially offset by the decrease in short-term loans and borrowings of RMB151.7 million as it repaid some loans.

CASH FLOW

The Group's net cash generated from operating activities surged from RMB180.0 million in FY2014 to RMB748.7 million in FY2015, due mainly to the decrease in development properties of RMB1.4 billion, increase in trade receivables, other receivables and advance payments amounting to RMB1.7 billion, and an increase in trade and other payables of RMB0.9 billion. Net cash used in investing activities of RMB279.9 million was mainly due to the acquisition of financial assets, increase in amounts due from non-controlling interests and development expenditure on investment properties, which were partially offset by proceeds from the disposal of financial assets available-for-sale. The Group recorded net cash used in financing activities of RMB415.7 million in FY2015, compared with net cash generated of RMB456.2 million in FY2014. This was mainly due to the net repayment of borrowings from financial institutions and interest paid during the year, partially offset by net proceeds from borrowings from non-controlling interests and unquoted debt securities and capital contribution from non-controlling interests. The Group's cash and cash equivalents increased from RMB1.1 billion as at 31 December 2014 to RMB1.2 billion as at 31 December 2015.