Financial Performance - For the first half of 2024, the company recorded a profit of RMB 183 million, with a profit attributable to shareholders of RMB 72 million, reflecting a significant decline in net profit year-on-year due to insufficient new residential project completions [4]. - The group reported a profit of RMB 183 million for the first half of 2024, with a net profit attributable to shareholders of RMB 72 million, despite a significant year-on-year decline [15]. - The net profit attributable to shareholders for H1 2024 was RMB 72 million, a decrease of 88% from RMB 618 million in H1 2023 [60]. - The company reported a core profit of RMB 108 million in H1 2024, an 85% decrease from RMB 698 million in H1 2023 [60]. - Revenue for the six months ended June 30, 2024, was RMB 2,073 million, a decrease of 67.7% compared to RMB 6,431 million for the same period in 2023 [73]. - Property sales revenue for the six months ended June 30, 2024, was RMB 143 million, a significant decrease from RMB 4,662 million for the same period in 2023, representing a decline of approximately 96.9% [87]. - The group’s net profit for the period was RMB 183 million, compared to RMB 282 million in the same period of 2023, representing a decline of about 35.1% [90]. Market Conditions - The national residential sales area in the first half of 2024 decreased by 22.2% compared to 2023 and by 49.3% compared to 2021, indicating a significant downturn in the real estate market [5]. - The company maintains a cautious outlook on short-term business prospects due to overall liquidity constraints in the real estate sector [16]. - Real estate investment in China declined by approximately 10% in both 2022 and 2023, with a further drop of 10.1% in the first half of 2024 [52]. - China's GDP growth slowed from 5.3% in Q1 2024 to 4.7% in Q2 2024, with industrial production and exports increasing by 3.6% and 6.0% respectively [52]. Property Development and Sales - The total contract property sales for the first half of 2024 amounted to RMB 623 million, representing an 86% decrease compared to RMB 4,564 million in the same period of 2023 [24]. - The company has secured total sales of RMB 7.818 billion, which will be delivered and recognized in the second half of 2024 and beyond [18]. - The company has approximately 240,100 square meters of residential property available for sale and pre-sale in the second half of 2024 and beyond [27]. - The company plans to launch more projects in the second half of 2024, primarily in Shanghai, depending on construction progress and government pre-sale approvals [24]. - The average selling price (excluding parking spaces) for confirmed property sales in the first half of 2024 was RMB 14,600 per square meter [21]. Rental and Income Performance - The group's rental and related income increased by 16% to RMB 1.764 billion in the first half of 2024, despite a challenging real estate market [15]. - Rental and related income for the commercial property portfolio increased by 16% year-on-year to RMB 1.764 billion, with 77% of this income coming from properties in Shanghai [18]. - Rental and related income from investment properties increased by 11% to RMB 1.257 billion in the first half of 2024, up from RMB 1.131 billion in the same period of 2023 [55]. - The rental income from the newly opened Panlong Tiandi contributed significantly to the overall growth, with a 176% increase in rental income from this property [40]. Debt and Financial Management - The group repaid a total of RMB 40.6 billion in offshore debt since 2021, including USD 493.5 million in senior notes due on August 24, 2024 [11]. - The group had cash and bank deposits totaling RMB 105.43 billion, an increase from RMB 89.17 billion as of December 31, 2023 [63]. - The total debt structure of the group amounted to RMB 33.583 billion, with RMB 11.934 billion due within one year [63]. - The average cost of debt decreased to 5.98% in H1 2024 from 6.55% in H1 2023 [57]. Sustainability and Corporate Governance - All operational properties of Shanghai Xintiandi have transitioned to 100% renewable energy usage since July 1, 2024, marking a significant milestone in sustainability [9]. - The company has been recognized for its sustainable development efforts, winning the Climate Leadership Award from the Carbon Disclosure Project [16]. - The company has maintained its liability classification as current and non-current post the adoption of revised accounting standards, indicating no impact on financial position or performance [85]. - The company has complied with the Corporate Governance Code and all applicable code provisions during the six months ended June 30, 2024 [138]. Shareholder Information - The total number of shares issued by the company as of June 30, 2024, is 8,027,265,324 shares [127]. - The board consists of 11 members, including 4 executive directors and 7 independent non-executive directors, ensuring a balance of gender, skills, experience, and perspectives [140]. - The company did not recommend the distribution of an interim dividend for 2024, compared to an interim dividend of HKD 0.032 per share in the first half of 2023 [4].

Financial Performance - In the first half of 2024, the company recorded a profit of RMB 183 million, with a significant year-on-year decline of 80% due to insufficient new residential project completions affecting property sales [2]. - Total revenue for the first half of 2024 was RMB 2.073 billion, down 68% year-on-year, reflecting the challenging market conditions [3]. - The net profit decreased primarily due to a decline in the completion volume of residential projects during the period [6]. - The net profit attributable to shareholders for the first half of 2024 was RMB 72 million, a decrease of 88% compared to RMB 618 million in the same period of 2023 [45]. - Earnings per share for the first half of 2024 were RMB 0.09, compared to RMB 0.77 in the same period of 2023 [43]. - The group reported a profit before tax of RMB 282 million for the first half of 2024, down from RMB 1,870 million in the same period of 2023, a decrease of 85% [68]. - Gross profit for the first half of 2024 fell by 54% to RMB 1.355 billion, while the gross profit margin increased to 65% from 46% in the first half of 2023 due to a higher contribution from property investments [40]. Property Sales and Revenue - Contracted property sales dropped to RMB 623 million, a decrease of 86% compared to the same period last year [3]. - The group recorded property sales revenue of RMB 1.43 billion, with total property sales amounting to RMB 16.91 billion, including joint ventures and associates [5]. - The total confirmed property sales for the first half of 2024 amounted to RMB 16.91 billion, with an average selling price of RMB 14,600 per square meter [6]. - Property sales in the first half of 2024 amounted to RMB 143 million, a significant drop from RMB 4.662 billion in the same period of 2023, with RMB 135 million coming from the Panlong Tiandi project [40]. Rental Income and Commercial Properties - Rental and related income increased to RMB 1.764 billion, representing a 16% year-on-year growth, driven by the successful opening of two new commercial properties [3]. - The recurring rental income from the commercial property portfolio increased by 16% year-on-year to RMB 1.764 billion, with 77% of this income derived from properties in Shanghai [5]. - The rental income from the newly opened Panlong Tiandi contributed significantly to the revenue growth, with a reported increase of 176% in rental income from this property [23]. - The total rental and related income, including contributions from joint ventures and associates, grew by 16% year-on-year to RMB 1.764 billion, with 77% of this income derived from properties in Shanghai [22]. Debt and Financial Position - The company has repaid a total of RMB 40.6 billion in offshore debt since 2021, including USD 493.5 million in senior notes due on August 24, 2024 [2]. - The net asset liability ratio slightly increased to 53% as of June 30, 2024, compared to 52% at the end of 2023 [3]. - The group’s net debt as of June 30, 2024, was RMB 23.04 billion, with a net asset liability ratio of 53% [49]. - Cash and bank deposits rose by 18% to RMB 10.543 billion, indicating improved liquidity [3]. Market Conditions and Outlook - The company maintains a cautious outlook on short-term business prospects due to ongoing liquidity challenges in the real estate sector [2]. - Real estate investment in China declined by 10.1% in the first half of 2024, with housing sales showing initial signs of stabilization [85]. - The central government aims for a 5% economic growth target for the year, with plans for more proactive counter-cyclical policies to support household consumption and stabilize the real estate market [87]. Development Projects and Future Plans - The group plans to launch more projects in the second half of 2024, primarily in Shanghai, to address the decline in contract property sales, which fell by 86% year-on-year to RMB 623 million [8]. - The company has approximately 240,100 square meters of residential property available for sale and pre-sale in the second half of 2024, covering seven projects [11]. - The Shanghai Taipingqiao Project (No. 122) has a total construction area of 87,000 square meters, with a planned launch in the second half of 2024, and the company holds a 50% interest [14]. Corporate Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with all applicable provisions, except for the absence of an independent non-executive director at the annual general meeting [89]. - The audit and risk committee reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2024, with no objections to the accounting treatment adopted [89]. - The company confirmed that all directors complied with the standards set out in the Securities Trading Code during the six months ending June 30, 2024 [90]. Employee and Operational Metrics - As of June 30, 2024, the company employed 2,982 staff, a decrease from 3,054 as of December 31, 2023, including 1,517 in property management [91]. - Total employee benefits expenses amounted to RMB 452 million, down 22.6% from RMB 584 million in the previous year [72].

Financial Data and Key Metrics Changes - The company recorded a profit of RMB 183 million in the first half of 2024, with profit attributable to shareholders at RMB 72 million, reflecting a significant year-on-year decline primarily due to a lack of residential property completions [7][18] - Total revenue was RMB 2 billion, down 68% year-on-year, largely due to lower property sales, which totaled RMB 143 million [14][16] - Rental income increased by 11% year-on-year to RMB 1.75 billion, supported by new property openings [15][18] Business Line Data and Key Metrics Changes - The company did not launch any major new residential projects in the first half, resulting in recognized property sales of RMB 1.69 billion [32] - The commercial portfolio saw a rental income increase of 16% year-on-year, reaching RMB 1.76 billion, driven by strong performance from new projects [44] Market Data and Key Metrics Changes - The Shanghai residential market showed resilience, with primary sales of housing units priced above RMB 10 million increasing by 57% in the first half of 2024 compared to the same period in 2023 [36][39] - Despite challenges in the office market, the occupancy rate for mature office properties remained stable at 91% [46] Company Strategy and Development Direction - The company aims to leverage strengths in urban regeneration and implement a best-in-class product strategy to reinforce its leadership position in Shanghai [37] - A focus on sustainability and innovative solutions is emphasized to attract reputable tenants and maintain occupancy rates [49] Management Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook on the China real estate market, anticipating a slow recovery due to ongoing economic uncertainties and challenges within the sector [11][12] - The company plans to preserve cash and adopt appropriate debt management strategies to ensure sustainability [12][27] Other Important Information - The company has repaid over RMB 40 billion of offshore debt since 2021, reducing reliance on offshore financing from approximately 80% to about 47% [26][29] - No interim dividend was declared for the first half of 2024 [18] Q&A Session Summary Question: What are the company's plans for new residential projects? - The company plans to launch more residential projects in the second half, including Riverview and Lakeview Phase 6, with approximately 240,000 square meters available for sale [33][40] Question: How is the company addressing the challenges in the office market? - The company is focusing on maintaining occupancy rates and attracting large, reputable tenants through innovative service offerings [51][52]

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 9,752 million, a decrease of 37% from RMB 15,565 million in 2022[6] - Gross profit for 2023 was RMB 5,045 million, down 24% from RMB 6,649 million in 2022, resulting in a gross margin of 52%[6] - The company's attributable profit for the year was RMB 810 million, a decline of 10% compared to RMB 906 million in 2022[6] - The company recorded a net profit of RMB 1.397 billion, with attributable profit to shareholders amounting to RMB 810 million[23] - The total property sales confirmed during the year reached RMB 38.565 billion, a significant increase from RMB 12.972 billion in 2022[23] - The total recognized property sales for the group in 2023 was RMB 5.898 billion, compared to RMB 11.695 billion in 2022[112] - The total contracted property sales for 2023 amounted to RMB 11.396 billion, a decrease of 58% from RMB 27.219 billion in 2022, with residential property sales accounting for 63% of the total[112] - The annual profit for 2023 was RMB 1.397 billion, down from RMB 1.475 billion in 2022, with attributable profit to shareholders at RMB 810 million, a decrease of 11%[171] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 100,998 million, a decrease from RMB 104,878 million in 2022[7] - The net debt-to-equity ratio increased to 52% in 2023 from 45% in 2022[7] - The company held cash and bank balances of RMB 8,917 million, down from RMB 13,368 million in 2022[7] - The company’s debt-to-asset ratio remained stable at 52% as of December 31, 2023, with total cash and bank deposits amounting to RMB 8.917 billion[23] - The net debt as of December 31, 2023, was RMB 23.016 billion, an increase from RMB 20.144 billion in 2022, with a net asset liability ratio of 52%[176] - The group had pledged assets totaling RMB 42.30 billion as of December 31, 2023, up from RMB 35.54 billion in 2022, to secure borrowings of RMB 16.21 billion, an increase from RMB 10.66 billion in the previous year[179] Dividends and Shareholder Returns - The company plans to distribute a final dividend of HKD 0.058 per share, down from HKD 0.064 in 2022[6] - The company proposed a final dividend of HKD 0.058 per share for 2023, down from HKD 0.064 per share in 2022[173] Development Projects and Sales - The company has a land reserve of 8.5 million square meters, with 6.2 million square meters available for lease and sale[4] - The company established a joint venture in April 2023 for a multi-purpose development project in Shanghai, focusing on residential, commercial, and supporting facilities[15] - The total estimated construction area for the Wuhan Changjiang Tiandi project is 751,000 square meters, with the first batch of residential units launched in September 2023[62] - The company plans to launch several key projects in Shanghai in 2024, including the Pacific New World Commercial Center and two high-end residential projects[37] - The company achieved a contract property sales total of RMB 11.396 billion in 2023, with an additional RMB 367 million in subscribed sales expected to convert in the coming months[29] Sustainability and ESG Initiatives - The group signed a strategic cooperation agreement with CLP Group to provide green electricity for its commercial properties, increasing the share of renewable energy in total electricity consumption from 15% in 2022 to 20% in 2023[17] - 96% of the existing assets have received at least one green or healthy building certification, demonstrating the company's commitment to sustainability[17] - The company aims to reduce energy consumption intensity of existing properties by 20% by 2030 compared to 2019 levels[34] - The company has received multiple ESG ratings upgrades, including a 5-star rating from GRESB and an AA rating from Morgan Stanley Capital International[35] - The company is committed to supporting biodiversity in urban habitats through a memorandum of understanding with the Nature Conservancy[34] Market Conditions and Challenges - The company anticipates continued challenges in the real estate sector, with potential financial crises for more developers and a slow recovery in the Chinese economy[39] - In 2023, the Chinese residential market remained sluggish, with financing for developers down over 35% from the peak in 2021, and land sales and new housing starts declining by 13.2% and 20.9% respectively[187] - In Shanghai, the net absorption of Grade A office space decreased by 27% to 381,686 square meters in 2023, with vacancy rates rising to 22.9%[189] Rental Income and Property Management - Rental and related income from the commercial property portfolio totaled RMB 3.243 billion, representing a year-on-year growth of 16%[23] - The total rental and related income for the year increased to RMB 3.243 billion, representing a year-on-year growth of 16%[96] - The overall occupancy rate for the group's properties as of December 31, 2023, was 93%, up from 90% in 2022, reflecting a 3 percentage point increase[135] - The rental income from joint ventures and associates amounted to RMB 348 million for 2023, an 8% increase from RMB 323 million in 2022[136] Future Outlook - The group plans to launch more development projects in 2024 and beyond, depending on market recovery and project progress[112] - The total area available for sale and pre-sale in 2024 is approximately 252,800 square meters, covering eight projects[117] - The company aims to maintain a balance between the sustainability and flexibility of funds through a combination of internal resources, bank borrowings, and debt financing[181]

Financial Performance - The company recorded total revenue of RMB 9.75 billion for 2023, a decrease of 37% compared to RMB 15.57 billion in 2022[3]. - Net profit for the year was RMB 1.4 billion, down 5% from RMB 1.48 billion in the previous year[3]. - The company declared a total dividend of HKD 0.09 per share for 2023, down from HKD 0.10 per share in 2022[2]. - The annual profit for 2023 was RMB 1.397 billion, down from RMB 1.475 billion in 2022, with earnings per share at RMB 0.101, compared to RMB 0.113 in 2022[48]. - The company reported a total of RMB 4,103 million in segment performance for property development, reflecting robust operational efficiency[76]. - The company’s share of profits from joint ventures and associates recorded a net income of RMB 781 million in 2023, compared to a net loss of RMB 151 million in 2022[47]. - The gross profit for 2023 fell by 24% to RMB 5.045 billion, while the gross profit margin improved to 52% from 43% in 2022 due to a higher contribution from property investments[44]. - The total profit before tax for 2023 was RMB 3,407 million, compared to RMB 2,699 million in 2022, reflecting a strong performance[80]. Property Sales and Revenue - Contracted property sales fell significantly to RMB 11.4 billion, a decrease of 58% from RMB 27.22 billion in 2022[3]. - Property sales amounted to RMB 58.98 billion, primarily from Shanghai Panlong Tiandi, with total sales (including joint ventures) reaching RMB 38.565 billion[5]. - Confirmed property sales for 2023 totaled RMB 38.565 billion, with a 4% decrease in average selling price to RMB 63,200 per square meter compared to 2022[8]. - The total revenue from property sales was RMB 5.898 billion, compared to RMB 11.695 billion in the previous year[9]. - The total area sold in 2023 was 350,900 square meters, with an average price of RMB 29,000 per square meter[11]. - The company’s cash and bank deposits totaled RMB 8.92 billion, a decrease of 33% from RMB 13.37 billion in the previous year[3]. Rental and Related Income - Rental and related income increased to RMB 3.24 billion, representing a 16% year-on-year growth from RMB 2.8 billion[3]. - The rental income from properties in Shanghai accounted for 76% of the total rental income of RMB 3.243 billion, which increased by 16% from RMB 2.802 billion in 2022[28]. - As of December 31, 2023, the rental income and related revenue of the group reached RMB 2.398 billion, a 16% increase from RMB 2.07 billion in 2022, driven by the openings of Shanghai Panlong Tiandi and Shanghai Hongshufang[44]. Debt and Financial Position - The net asset liability ratio slightly increased to 52% as of December 31, 2023, compared to 45% in 2022[3]. - The company’s net debt as of December 31, 2023, was RMB 23.016 billion, with a net asset liability ratio of 52%, up from 45% in 2022[53]. - The total amount of bank borrowings in HKD and USD was RMB 18.400 billion, representing 58% of total borrowings[53]. - The group had unutilized bank financing of approximately RMB 3.716 billion as of December 31, 2023[54]. - The group provided guarantees of RMB 145 million for mortgage loans to customers purchasing developed properties[58]. ESG and Sustainability - The company’s ESG rating improved from A to AA by MSCI, and from B to A- by CDP during the year[2]. - The company’s MSCI ESG rating improved from A to AA, and CDP rating improved from B to A- in 2023, reflecting its commitment to sustainability[7]. Market and Economic Conditions - China's economy recorded a growth of 5.2% in 2023, but the recovery remains unstable due to a sluggish real estate market and significant deflationary pressures[91]. - The financing amount obtained by developers has dropped over 35% from the peak in 2021, reflecting ongoing challenges in the real estate sector[91]. - The global economic growth is projected to slow from 2.6% in 2023 to 2.4% in 2024, below the average growth rate of 3.1% in the 2010s[91]. Future Outlook and Strategy - The company plans to launch more development projects in 2024 and beyond, depending on market recovery and project progress[10]. - The company aims to enhance its existing property portfolio with a focus on community and cultural competitive advantages, as demonstrated by the success of Panlong Tiandi[43]. - The company anticipates facing more challenges in 2024 but aims to strengthen its foundation for future growth[102]. - The company is focused on identifying suitable acquisition opportunities and enhancing its project development and management capabilities[104]. Employee and Governance - As of December 31, 2023, the total number of employees at the company was 3,054, a decrease from 3,098 employees as of December 31, 2022[100]. - The company provided a range of employee benefits including retirement plans, long-term incentive plans, and medical insurance, emphasizing equal opportunity principles in its compensation policy[100]. - The company has adhered to the corporate governance code and principles throughout the year ending December 31, 2023, with all applicable code provisions complied with[98].

Financial Data and Key Metrics Changes - The company recorded a revenue of RMB9.75 billion and a net profit of RMB1.4 billion for 2023, with profit attributable to shareholders amounting to RMB810 million [10][21] - Total rental and related income increased to RMB3.24 billion, representing a growth of 16% year on year [11][47] - The net gearing ratio increased slightly to 52%, while cash and bank deposits totaled RMB8.9 billion [11][27] Business Line Data and Key Metrics Changes - Property sales amounted to RMB5.9 billion, primarily from the Panlong Qiandi project, with total contract sales of RMB11.4 billion [21][33] - Rental income increased by 16% year on year to RMB2.4 billion, driven by successful openings of commercial projects [21][47] - The company maintained a stable management area of 9 million square meters in property management [48] Market Data and Key Metrics Changes - The residential market showed a slow recovery, with a significant drop in residential sales area and record high national housing inventory [14] - In Shanghai, prime retail property vacancy rates and rents remained stable, with a slight 0.2% drop in rental rates year on year [15] - The office market faced challenges with a 27% drop in grade A office rents in Shanghai, leading to higher vacancy rates [16] Company Strategy and Development Direction - The company will continue to adopt a prudent capital management strategy and maintain an asset-light approach, focusing on Tier one cities in the Yangtze River Delta and Greater Bay Area [6][17] - Emphasis on urban regeneration and mixed-use developments to capture unique market opportunities [18][44] - The company aims to strengthen its brand and enhance product quality in high-quality mixed-use communities [45] Management's Comments on Operating Environment and Future Outlook - The management highlighted ongoing economic challenges, including geopolitical tensions, high interest rates, and sluggish market recovery [5][7] - Future market recovery is expected to be slow, with continued consolidation in the property sector [7][14] - The company remains optimistic about the Shanghai market, citing stable demand and opportunities for growth [7][43] Other Important Information - The company successfully issued the largest private green mortgage-backed onshore CMBS in April 2023 [12] - The Board recommended a final dividend of $0.58 per share, with a total full-year dividend of $0.90 per share [13][21] - Significant progress in sustainability efforts, with improved ESG ratings and over 96% of existing assets certified as green or healthy buildings [19] Q&A Session Summary Question: What are the company's views on the current market conditions? - The company noted that the property sector is experiencing a downturn, with divergent performance among cities and regions, but top-tier cities are showing resilience [43][44] Question: How does the company plan to navigate the challenges in the office market? - The company aims to maintain high occupancy rates and focus on acquiring large tenants while enhancing service offerings [52][56] Question: What are the future plans for property development? - The company plans to launch several premium residential projects in Shanghai and continue to explore urban renewal opportunities [36][40][45]

Financial Performance - For the first half of 2023, the company recorded a profit of RMB 913 million, with attributable profit to shareholders increasing by 37% year-on-year to RMB 618 million[7]. - In Q2 2023, the group reported a revenue of RMB 6.431 billion, a 46% increase compared to the same period in 2022[15]. - The group's profit for the period grew by 17% to RMB 913 million, while profit attributable to shareholders increased by 37% to RMB 618 million[15]. - Revenue for the six months ended June 30, 2023, was RMB 6,431 million, a 45.6% increase from RMB 4,415 million in the same period of 2022[72]. - Gross profit for the first half of 2023 increased by 5% to RMB 2.949 billion, while the gross profit margin decreased to 46% from 64% in the same period of 2022[55]. - The company reported a significant increase in share of profits from associates and joint ventures, reaching RMB 689 million compared to a loss of RMB 73 million in the previous year[72]. - The company’s net profit attributable to shareholders for the first half of 2023 was RMB 618 million, a 37% increase from RMB 450 million in the same period of 2022[58]. - The company reported a tax expense of RMB 957 million for the first half of 2023, up from RMB 248 million in the same period of 2022, attributed to increased profits from property sales[57]. Property Sales and Development - Property sales for the first half of 2023 surged by 90% to RMB 4.662 billion, compared to RMB 2.449 billion in the same period of 2022[7]. - The confirmed property sales for the first half of 2023 amounted to RMB 34.706 billion, a significant increase attributed to the delivery of several high-value projects in Shanghai, with an average selling price rising 49% to RMB 76,100 per square meter[19][20]. - The company’s contracted property sales for the first half of 2023 reached RMB 4.564 billion, a decrease of 76% compared to RMB 18.715 billion in the same period of 2022, primarily due to the timing of project launches[21][22]. - The average selling price of residential properties in the first half of 2023 was RMB 53,900 per square meter, down from RMB 105,700 per square meter in the same period of 2022, reflecting a higher proportion of lower-priced projects outside Shanghai[21]. - The company plans to launch more properties in the second half of 2023, capitalizing on market recovery and project development progress[21]. Rental and Related Income - Rental and related income, including joint ventures and associates, totaled RMB 1.515 billion, reflecting a year-on-year growth of 3%[7]. - Rental and related income totaled RMB 1.515 billion, reflecting a 3% year-on-year growth, with 74% of this income derived from properties in Shanghai[17]. - The average occupancy rate for the group's office properties remains stable at 88%, with Shanghai office properties achieving an average occupancy rate of 92%[9]. - The average occupancy rate for the retail property portfolio was 91%, with sales and foot traffic recovering to 109% and 120% of the levels seen in the same period of 2021, respectively[33]. Financial Management and Strategy - The company has maintained a prudent financial management approach, carefully selecting new investment projects to ensure financial stability[7]. - The group successfully issued RMB 4.401 billion in onshore commercial mortgage-backed securities (CMBS), rated AAAsf, with a coupon rate of 3.9%[11]. - The successful issuance of the CMBS highlights the company's strong capital management capabilities and commitment to sustainable development[18]. - The company aims to utilize the net proceeds from the CMBS issuance for debt repayment and general working capital[18]. - The group anticipates strong residential sales momentum in the second half of the year despite ongoing market challenges[12]. Market Conditions and Economic Outlook - The economic outlook remains cautious, with the World Bank adjusting China's growth forecast to 5.6% for 2023, but highlighting significant downside risks[6]. - The real estate market in China is experiencing challenges, particularly in lower-tier cities, while properties in core cities remain resilient[8]. - The GDP growth in Wuhan for the first half of 2023 was 5.0%, with fixed asset investment, real estate investment, and retail sales increasing by 5.3%, 7.7%, and 9.0% respectively[53]. - The People's Bank of China lowered the one-year and five-year loan benchmark rates by 10 basis points in June 2023 to boost confidence in the real estate sector[52]. Corporate Governance and Shareholder Information - The board proposed an interim dividend of HKD 0.032 per share, down from HKD 0.036 per share in the first half of 2022[7]. - The company has complied with the Corporate Governance Code and all applicable provisions during the six months ended June 30, 2023[131]. - The board consists of 12 members, including 4 executive directors and 8 independent non-executive directors, ensuring a majority of independent members for good corporate governance[133]. - The company has established a clear division of responsibilities between the Chairman and the CEO to enhance governance[134]. Sustainability and ESG Efforts - The group aims to reduce energy consumption intensity of existing properties by 20% by 2030 compared to 2019 levels as part of its commitment to the Science Based Targets initiative (SBTi)[9]. - The group has been recognized for its ESG efforts, being included in the Bloomberg Gender-Equality Index and the 2023 Fortune China ESG Impact List[10]. - The Sustainability Committee provided insights on sustainability trends and practices, assisting the board in creating shareholder value and complying with ESG reporting guidelines[138].

Financial Performance - In the first half of 2023, the company reported revenue of RMB 6.431 billion, an increase of 46% compared to RMB 4.415 billion in the same period of 2022[2]. - The company's net profit for the first half of 2023 was RMB 913 million, representing a year-on-year growth of 17% from RMB 779 million[3]. - The gross profit for the first half of 2023 increased by 5% to RMB 2.949 billion, while the gross profit margin decreased to 46% from 64% in the previous year[42]. - Basic profit decreased by 12% to RMB 350 million compared to RMB 399 million in the first half of 2022[23]. - The net profit attributable to shareholders was RMB 618 million, up from RMB 450 million in the first half of 2022[45]. - The company's core profit attributable to shareholders for the six months ended June 30, 2023, was RMB 618 million, a 37% increase from RMB 450 million in the same period of 2022[46]. - The group's core profit for the first half of 2023 was RMB 698 million, representing a 34% increase compared to RMB 519 million in the first half of 2022[46]. - The company reported a total comprehensive income of RMB 327 million for the six months ended June 30, 2023, compared to RMB 814 million for the same period in 2022, indicating a decline of 59.8%[58]. Property Sales and Development - Property sales increased by 90% to RMB 4.662 billion in the first half of 2023, up from RMB 2.449 billion in the same period of 2022[2]. - Confirmed property sales for the first half of 2023 totaled RMB 34.706 billion, a significant increase attributed to the delivery of projects in Shanghai, with an average selling price rising by 49% to RMB 76,100 per square meter[7][8]. - Contracted property sales for the first half of 2023 reached RMB 4.564 billion, a decrease of 76% compared to RMB 18.715 billion in the same period of 2022, with residential properties accounting for 92% of the sales[9]. - The total amount of locked sales expected to be delivered in the second half of 2023 and beyond is RMB 7.43 billion[9]. - The company has approximately 211,900 square meters of residential properties available for sale and pre-sale in the second half of 2023, covering six projects[11]. - The estimated total sales value of the residential development projects available for sale as of June 30, 2023, is RMB 72.0 billion, with the company's attributable sales value estimated at RMB 38.2 billion[13]. - The company delivered 595 units from the Shanghai Ruihong New City project, generating RMB 9.2 billion in revenue recognized in the first half of 2023[14]. Rental and Related Income - Rental and related income totaled RMB 1.515 billion, a 3% increase from RMB 1.476 billion in the first half of 2022[3]. - The group's recurring rental income from its commercial property portfolio increased by 3% year-on-year to RMB 1.515 billion in the first half of 2023, with 74% of this income derived from properties in Shanghai[6]. - Rental income from the investment properties totaled RMB 1,095 million in the first half of 2023, a 1% increase from RMB 1,085 million in the same period of 2022[25]. - The total rental and related income generated by the property portfolio for the first half of 2023 was RMB 1.276 billion, with 71% coming from properties in Shanghai[26]. Debt and Financial Position - The total debt as of June 30, 2023, was RMB 34.138 billion, a 2% increase from RMB 33.512 billion at the end of 2022[3]. - The net asset liability ratio slightly increased to 50% as of June 30, 2023, compared to 45% at the end of 2022[3]. - The net debt of the group as of June 30, 2023, was RMB 21.90 billion, compared to RMB 20.14 billion as of December 31, 2022[50]. - The group's cash and bank deposits totaled RMB 12.24 billion as of June 30, 2023, down from RMB 13.37 billion as of December 31, 2022[49]. - The average cost of debt increased to 6.55% from 5.12% in the previous year, with total interest expenses rising by 33% to RMB 1.118 billion[45]. Market and Economic Conditions - China's GDP growth for the first half of 2023 was 5.5%, with consumer spending contributing 77.2% to this growth[83]. - The global economic growth is projected to slow from 3.5% in 2022 to 3.0% in 2023 and 2024, with developed countries' growth expected to decrease from 2.7% in 2022 to 1.5% in 2023[83]. - Retail sales in Shanghai grew by 6.8% in the first half of 2023, with the restaurant sector experiencing a significant increase of 21.4%[84]. - The government has introduced 16 measures, including a RMB 6.8 trillion investment plan for internet service platforms, to stimulate economic recovery[84]. Corporate Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with all applicable provisions during the reporting period, with some exceptions noted[88]. - The company’s audit and risk committee reviewed the unaudited consolidated financial statements for the six months ended June 30, 2023, with no objections to the accounting treatment adopted[88]. - The company emphasizes that forward-looking statements are based on various assumptions regarding current and future business strategies and operating environments[94]. - Key risks include changes in laws and regulations in project locations, economic and competitive conditions in operating cities, and potential disasters such as natural calamities[94].

Financial Data and Key Metrics Changes - The Group revenue increased by 46% to RMB 6.4 billion in the first half of 2023 compared to the same period in 2022 [7] - Profit for the period rose by 17% year on year to RMB 913 million, while profit attributable to shareholders increased by 37% year on year to RMB 618 million [7][24] - The net gearing ratio increased slightly to 50% as of June 30, 2023, compared to 45% at the end of 2022 [9][25] Business Line Data and Key Metrics Changes - Property sales in the first half increased by 90% to RMB 4.6 billion, primarily driven by the Panlong Tiendi project in Shanghai [8][19] - Total rental and related income was RMB 1.5 billion, representing a growth of 3% year on year [8] - The recognized property sales for the first half amounted to RMB 34.7 billion when including joint ventures and associates [12][20] Market Data and Key Metrics Changes - The retail portfolio occupancy averaged 91% as of June 30, with rental reversions remaining positive [13] - The office portfolio maintained an average occupancy rate of 88%, with Shanghai achieving an average occupancy of 92% [13][45] - The K-shaped market trend was noted, with solid demand in top-tier cities and quality products remaining high in demand [11][32] Company Strategy and Development Direction - The company aims to maintain prudent but proactive capital management to ensure strong liquidity and explore additional onshore financing channels [15] - Long-term expansion plans focus on Shanghai and other first-tier cities, emphasizing urban regeneration projects [15][39] - The company is well-positioned to capitalize on urban renewal opportunities, particularly in Shanghai, supported by recent government policies [39][40] Management's Comments on Operating Environment and Future Outlook - The management highlighted challenges such as geopolitical tensions, high inflation, and a poor economic outlook affecting consumer spending [4][5] - Despite these challenges, the company has seen an increase in profit and stable occupancy rates, indicating resilience [6][11] - The management expressed cautious optimism regarding urban regeneration policies that could provide new opportunities [5][39] Other Important Information - The company successfully issued the largest private green mortgage-backed onshore CMBS in April, valued at RMB 4.4 billion [9][29] - The interim dividend for 2023 was recommended at $0.32 per share, reflecting the group's financial performance [10] Q&A Session Summary Question: What are the company's strategies in the current market? - The company will continue to adopt flexible leasing strategies and enhance service quality to improve occupancy rates [50] - There is a focus on strengthening competitive advantages in community products and urban retreat offerings [50] Question: How is the company addressing the challenges in the property market? - The company is leveraging its strong brand and track record in urban regeneration to navigate the current market correction [39] - The management noted the importance of maintaining a balanced portfolio and proactive asset management [45]

Financial Performance - Total revenue for 2022 was RMB 15,565 million, a decrease of 11.3% from RMB 17,555 million in 2021[13]. - Basic earnings per share for 2022 were RMB 11.3 cents, down from RMB 20.3 cents in 2021[18]. - The proposed final dividend for 2022 is HKD 0.064 per share, compared to HKD 0.084 per share in 2021[18]. - In 2022, the company recorded a net profit of RMB 1.475 billion, with profit attributable to shareholders at RMB 906 million, reflecting a decrease compared to the previous year due to rental concessions and currency depreciation during the Shanghai lockdown[32]. - The company reported a significant increase in investment capabilities and performance under the leadership of the Chief Financial Officer, who has over 20 years of experience in the Asian real estate sector[47]. - The company reported a net profit of RMB 1.475 billion for 2022, with a profit attributable to shareholders of RMB 906 million[92]. - Revenue decreased by 11% to RMB 15.565 billion in 2022, down from RMB 17.555 billion in 2021, primarily due to delays in construction and delivery of residential units[92]. - The gross profit for 2022 was RMB 1,924 million, reflecting a 7% decline compared to the previous year[118]. - The annual profit for 2022 was RMB 1.475 billion, down from RMB 2.208 billion in 2021[140]. - The company's attributable profit to shareholders was RMB 906 million, a decrease of 45% compared to RMB 1,636 million in 2021[141]. Property Development and Sales - Property development revenue was RMB 11,695 million, down 14.2% from RMB 13,638 million in the previous year[13]. - The group achieved a total contracted property sales amount of RMB 27.2 billion in 2022[23]. - The total contracted property sales amounted to RMB 27.2 billion in 2022, down from RMB 30.3 billion in 2021, indicating strong market demand for the company's unsold properties[32]. - The company achieved total contracted property sales of RMB 27.219 billion, with residential property sales amounting to RMB 25.783 billion and commercial property sales at RMB 1.436 billion[33]. - The company confirmed that the sales from the Wuhan Tianji project contributed RMB 436 million in residential sales in 2022[100]. - The total sales revenue from delivered units in the Shanghai Ruihong New City project reached RMB 10.291 billion as of December 31, 2022[105]. - The total sales revenue for the residential units in the project "Zhongliang Ruihong • Haijing No. 1" reached RMB 10.291 billion, with all 609 units sold by December 31, 2022[73]. - The total construction area for the new project in Shanghai Yangpu is 23,791.32 square meters, with a purchase price of RMB 2.376 billion[72]. Financial Management and Debt - The net asset liability ratio was maintained at a stable level of 45%[22]. - The company signed a RMB 10 billion cooperation memorandum with Shanghai Pudong Development Bank for M&A financing[22]. - The group repaid or refinanced a total of RMB 6.797 billion in borrowings during the year[22]. - The company redeemed USD 600 million of 6.40% perpetual capital securities in June 2022, increasing the net debt-to-equity ratio to 45% from 30% as of December 31, 2021[92]. - The company's net debt as of December 31, 2022, was RMB 20.144 billion, an increase from RMB 14.579 billion in 2021[147]. - The net asset liability ratio increased to 45% in 2022 from 30% in 2021, primarily due to the redemption of USD 600 million in perpetual capital securities[147]. Sustainability Initiatives - The company reduced carbon emissions intensity by 27.5% and energy consumption intensity by 12.2% compared to 2021, demonstrating commitment to sustainability[24]. - 95% of the company's commercial property area has received green certification, highlighting its focus on sustainable development[24]. - The company signed a green covenant with 100 suppliers to create a green supply chain, further enhancing its sustainability initiatives[24]. - The company joined the "Business With Purpose 2022" platform to further integrate sustainability into its corporate activities[24]. - The company has committed to reducing carbon emissions in line with the Science Based Targets initiative, aiming to limit global temperature rise to below 1.5ºC[35]. - The company aims to enhance employee awareness of its sustainable development vision, with approximately 99% of relevant employees completing training related to environmental, social, and governance issues in 2022[192]. Market Conditions and Outlook - The real estate market in China is expected to undergo a period of adjustment, with cautious buyers and some developers facing liquidity issues, although there are signs of slight recovery in transactions[37]. - The government is easing property market regulations to improve developers' asset-liability ratios and restore market confidence, as seen in Wuhan's recent relaxation of purchase restrictions[37]. - The Chinese government's optimization of pandemic control policies in December 2022 led to a 12.2% increase in sales revenue for consumer-related industries during the Spring Festival in January 2023 compared to the previous year[37]. - The overall economic outlook for 2023 remains cautious, with the government announcing a growth target of around 5% due to uncertainties in the global economy[151]. Corporate Governance - The board consists of 11 members, including 4 executive directors and 7 independent non-executive directors, with independent directors accounting for approximately 64% of the board[163]. - The company ensures that independent non-executive directors can seek independent advice to maintain their independence and effectiveness[158]. - The board's diversity policy is reviewed annually by the nomination committee to assess its implementation and effectiveness[162]. - The company has received annual confirmations of independence from all independent non-executive directors, affirming their ability to make independent judgments[159]. - The company is committed to creating a diverse and inclusive work environment, prohibiting any form of discrimination[172]. Investment Properties - As of December 31, 2022, the fair value of the group's investment properties (excluding hotels and self-used properties) was RMB 96.513 billion, with a total built area of 2,635,700 square meters[110]. - The total built area of the group's land reserves was 9.3 million square meters, including 6.8 million square meters available for lease and sale, and 2.5 million square meters for clubhouses, parking lots, and other facilities[112]. - The completed investment properties had a total rental area of 1,376,200 square meters, with a fair value increase of RMB 98 million in 2022[111]. - The group reported a fair value decrease of RMB 596 million across its total investment properties in 2022, representing a 0.6% decline[111]. Board and Management Structure - The company has a diverse board with members holding multiple degrees and significant experience in finance and management, enhancing its decision-making capabilities[50]. - The independent non-executive director has extensive academic and professional credentials, contributing to the company's governance and strategic oversight[48]. - The company has appointed Wang Ying as the CEO effective January 1, 2022, separating the roles of Chairman and CEO for clearer responsibilities[161]. - The company emphasizes continuous professional development for directors, providing updates on legal and regulatory developments[174].