Fullshare Announced 2016 Annual Results Gradual Formation of the 5 Major Business Segments Net Profit Rocketed by 155% to RMB3.1 billion
Mar 30, 2017
7 minute read
Financial Highlights
| For the year ended 31 December | 2016 RMB (‘000) | 2015 RMB (‘000) | Change |
|---|---|---|---|
| Revenue | 4,311,423 | 3,095,611 | +39.3% |
| Gross profit | 871,995 | 387,338 | +125.1% |
| Profit for the period attributable to owners of the company | 3,105,196 | 1,217,827 | +155.0% |
| Earnings per share (RMB cents) | 19.15 | 8.69 | +120.4% |
| Final dividend (RMB cents) | 1.5 | 1.0 | +0.5 |
| Gross profit margin | 20.2% | 12.5% | +7.7p.p. |
| Net profit margin | 72.0% | 39.3% | +32.7p.p |
31 March 2017 – Hong Kong, Fullshare Holdings Limited (“Fullshare” or “Company”, together with its subsidiaries collectively, the “Group”, Stock Code: 607.HK), is pleased to announce the annual results of the Group for the year ended 31 December 2016 (the “Year”).
2016 is a crucial year for the Group to lay the foundation for its long-term development. The Group has introduced a number of high-quality assets during the year through mergers and acquisitions, equity investments and other means to gradually develop its five business segments, namely, property, tourism, investment, healthcare and new energy business. Synergies among the business sectors are gradually forming and are jointly promoting the Group’s business development.
For the Year, the overall revenue of the Group increased by 39.3% to approximately RMB4.31 billion). Gross profit of the Year recorded an increase of approximately 125.1% to RMB872.0 million (2015: RMB387.3 million) while gross profit margin increased by 7.7 percentage points to approximately 20.2%. The profit attributable to owners of the Company amounted by approximately 155.0% to RMB3.1 billion. Basic earnings per share was 19.15 cents (2015: 8.69 cents). In order to express gratitude towards the long-standing support of shareholders, the Directors recommended the distribution of a final dividend for the year ended 31 December 2016 at RMB 1.5 cents per share.
Property business - providing strong cash flow for the company
During the Year, driven by the increase in average selling price per unit, the revenue and gross profit margin of the Group’s property business recorded a bright performance. The revenue of this sector increased by 9% to approximately RMB2.9 billion while gross profit recorded an increase of approximately 154.5% to RMB743.3 million. Gross profit margin increased by 15 percentage points to approximately 26.0%. As of 31 December 2016, the Group’s contracted sales for the contracts signed but properties not yet delivered were approximately RMB1.29 billion, with a total gross floor area of approximately 67,413 sq.m , providing a solid foundation for the continuous growth of the Group’s future revenue.
Tourism vacation business - creating a complex of urban and leisure
The Group’s tourism business is mainly formed by two overseas projects, namely the Laguna project and the Sheraton project in Australia. During the Year, the revenue of this sector recorded RMB134.3 million, showing a rise of 51.2%. This was driven by massive marketing promotion after completing the hotel renovation project. As a result, the occupancy rate and rent received were significantly escalated. However, the huge cost of renovation led to an increase of 69.9% in gross loss, of approximately RMB20.3 million. With the renovation completed in 2016, the profitability of the sector is expected to increase in the near future
Healthcare business – steady development of the healthcare business
In terms of healthcare products and services, during the year, the Group subscribed new shares of Hin Sang Group (International) Holding Co. Ltd. (HKEX Stock Code: 6893). Meanwhile, the Group has completed the acquisition of Shenzhen Anke High-Tech Company Limited (“Shenzhen Anke”) Guangzhou Life Infinity and several other projects. The Company also built “Fullshare Top”, an O2O platform that connects online and offline resources, indicating the completion of building a foundation for the healthcare business. For the Year, the revenue of the healthcare business segment increased by approximately 7.8%, which was mainly derived from the increase in sales of Shenzhen Anke medical equipment, of which the Computer Tomography (CT) and Superconducting Magnetic Resonance Imaging (MRI) systems recorded a significant increase as compared to year 2015. The revenue of this sector was recorded to be increased by 7.8%, reaching RMB362.5 million while the
gross profit was approximately RMB104.0 million, with an increase of 4.6%.
(2015: RMB3.1 billion). Gross profit of the Year recorded an increase of approximately 125.1% to RMB872.0 million (2015: RMB387.3 million) while gross profit margin increased by 7.7 percentage points to approximately 20.2%. The profit attributable to owners of the Company amounted by approximately 155.0% to RMB3.1 billion. Basic earnings per share was 19.15 cents (2015: 8.69 cents). In order to express gratitude towards the long-standing support of shareholders, the Directors recommended the distribution of a final dividend for the year ended 31 December 2016 at RMB 1.5 cents per share.
Property business - providing strong cash flow for the company
During the Year, driven by the increase in average selling price per unit, the revenue and gross profit margin of the Group’s property business recorded a bright performance. The revenue of this sector increased by 9% to approximately RMB2.9 billion while gross profit recorded an increase of approximately 154.5% to RMB743.3 million. Gross profit margin increased by 15 percentage points to approximately 26.0%. As of 31 December 2016, the Group’s contracted sales for the contracts signed but properties not yet delivered were approximately RMB1.29 billion, with a total gross floor area of approximately 67,413 sq.m , providing a solid foundation for the continuous growth of the Group’s future revenue.
Tourism vacation business - creating a complex of urban and leisure
The Group’s tourism business is mainly formed by two overseas projects, namely the Laguna project and the Sheraton project in Australia. During the Year, the revenue of this sector recorded RMB134.3 million, showing a rise of 51.2%. This was driven by massive marketing promotion after completing the hotel renovation project. As a result, the occupancy rate and rent received were significantly escalated. However, the huge cost of renovation led to an increase of 69.9% in gross loss, of approximately RMB20.3 million. With the renovation completed in 2016, the profitability of the sector is expected to increase in the near future
Healthcare business – steady development of the healthcare business
In terms of healthcare products and services, during the year, the Group subscribed new shares of Hin Sang Group (International) Holding Co. Ltd. (HKEX Stock Code: 6893). Meanwhile, the Group has completed the acquisition of Shenzhen Anke High-Tech Company Limited (“Shenzhen Anke”) Guangzhou Life Infinity and several other projects. The Company also built “Fullshare Top”, an O2O platform that connects online and offline resources, indicating the completion of building a foundation for the healthcare business. For the Year, the revenue of the healthcare business segment increased by approximately 7.8%, which was mainly derived from the increase in sales of Shenzhen Anke medical equipment, of which the Computer Tomography (CT) and Superconducting Magnetic Resonance Imaging (MRI) systems recorded a significant increase as compared to year 2015. The revenue of this sector was recorded to be increased by 7.8%, reaching RMB362.5 million while the gross profit was approximately RMB104.0 million, with an increase of 4.6%.
New energy business – Contributing in revenue growth
In November 2016, the Group completed the acquisition of China High Speed Transmission Equipment Group Co., Ltd. (“CHSTE”; HKEX Stock Code: 658.HK). During the Year, the new energy equipment manufacturing business, dominated by CHSTE, has become an important driver for the Group’s revenue. The revenue recorded for this sector was approximately RMB916.1 million, derived from the businesses of wind gear transmission equipment, industrial gear transmission equipment and marine gear transmission equipment. Meanwhile the gross profit and the gross profit margin was recorded as RMB42.0 million and 5.0% respectively. The gross profit margin from the new energy segment was comparatively lower due to the adjustment of premium over the cost of inventory upon acquisition. If excluding this consolidated accounting adjustment, gross profit margin of new energy should be approximately 37.0%.
Prospects
Mr. Ji Changqun, Executive Director, Chairman and CEO of Fullshare Holdings Limited commented, “Building an open platform, business diversification and globalization are the key direction of the Group’s business development. In the future, the Group will continue to focus on developing the five business segments, namely, property, tourism, investment, healthcare and new energy business. The Group will also carry on expanding its platform in the healthy living industry. By integrating global resources and talents, the Group aims to create sustainable returns for shareholders through merger and acquisitions and equity investment.”