KWG Property (01813.HK)

[bmann025]

Yesterday KWG issued their operational  figures for the  month in  December  and overall figure for 12 months period to 31st Dec 2017.

KWG has achieved  pre-sale figures of RMB 28.7  Billion which it claims is 103% of its set target for 2017 .   But the Annual Report for year to Dec 2016 shows the total  turnover at RMB 8.8 Billion.

Does this mean we should expect an increase to the "turnover for 2017" to be somewhere  between  RMB 8 Bil and RMB 28 Bil ?

I noted such differences in the past (see posting 12) with other companies as well (I think 2355 for example).

I still don't know what it means, but it is probably an accounting thing but it is more complicated because I did not see such overhang then being booked a year later. Best estimate should be to compare 2017 with 2016 pre-sales and then use the same relation for revenue.

BTW, in 2018 IFRS 15 accounting rules will become mandatory, and DB thinks KWG will be one of the key beneficiaries.  

Then, 'non-mortgage presales revenue can be booked based on construction progress or payment schedule, whichever is lower.'

https://www.dbs.com.hk/sme/aics/template...IFRS15.xml