Zhejiang - Greentown China Holdings Limited

Management Discussion and Analysis
OPERATIONAL AND MANAGEMENT REVIEW
Financial Overview
The Company’s net profit hit a record high in 2011. Net profit increased by
RMB2,202 million from RMB1,916 million in 2010 to RMB4,118 million in
2011, representing an increase of 114.9%. Net profit margin increased from
17.2% in 2010 to 18.7% in 2011.
Profit attributable to the owners of the Company increased by RMB1,043
million from RMB1,532 million in 2010 to RMB2,575 million in 2011,
representing an increase of 68.1%. Profit attributable to the owners of the
Company increased at a year-on-year rate of 87.4%, 51.4%, and 68.1%
respectively for the three years ended 31 December 2011, representing a
compound annual growth rate (“CAGR”) of 68.3%.
Excluding the post-tax net effect from certain items (namely the net loss on
2007 convertible bonds, net loss on partial redemption of trust loans in 2010
and fair value changes on trust-related financial derivatives, impairment
G r e e n t o w n C h i n a H o l d i n g s L i m i t e d
losses on properties for development, impairment losses on properties
under development, reversal of impairment losses on property, plant and
equipment, and gain from changes in fair value of investment properties),
core profits attributable to the owners of the Company surged 99.6% (or
RMB1,292 million) from RMB1,297 million in 2010 to RMB2,589 million in
2011.
Basic earnings per share increased from RMB0.93 in 2010 to RMB1.57 in
2011, representing an increase of 68.8%.
Property Sales
The PRC real estate market in 2011 remained volatile under the influence
of macro-economic tightening policies. The Company and its subsidiaries,
together with its jointly controlled entities and associates (collectively the
“Greentown Group”) proactively responded to the market challenges and
adjusted its development strategy and business model accordingly. In 2011,
Greentown Group recorded total sales revenue of RMB35.3 billion (including
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