Financial Data and Key Metrics Changes - The company reported a revenue of RMB 15.5 billion, with property sales amounting to RMB 11.7 billion and a net profit of RMB 1.47 billion, reflecting a year-on-year decline due to the impact of COVID-19 and rental concessions [20][21][24] - The profit attributable to shareholders was RMB 906 million, and total rental income decreased by 4% to approximately RMB 2.8 billion [7][20] - The net gearing ratio remained stable at 45%, although it increased by 13% due to the redemption of a US$600 million perpetual note [8][26] Business Line Data and Key Metrics Changes - Property sales were primarily driven by two projects in Shanghai, contributing over RMB 10 billion to total sales [21] - Rental income, excluding joint ventures, saw an 8% decline year-on-year, while the overall rental income, including joint ventures, decreased by 4% [20][22] - The company maintained a gross profit margin of 43%, consistent with historical performance [23] Market Data and Key Metrics Changes - The Chinese GDP dropped to 3% in 2022, with the residential market experiencing its deepest downturn since 1998 [10][12] - Retail sales in Shanghai contracted by 9.1% due to lockdowns, but there are signs of recovery in consumer spending post-COVID [13][14] - The office market faced challenges with increased vacancy rates and oversupply, leading to a cautious outlook [14][15] Company Strategy and Development Direction - The company plans to focus on selective markets, particularly in first-tier cities and leading second-tier cities, to replenish its land bank and capture urban regeneration opportunities [36][37] - The strategy includes maintaining strong liquidity, capital management, and leveraging brand strength for new land acquisitions [16][17] - Sustainability efforts have led to significant reductions in carbon emissions and energy intensity, with a focus on green building certifications [17][18] Management Comments on Operating Environment and Future Outlook - Management expressed caution regarding the market operating environment, noting a crisis of confidence among buyers and ongoing challenges in the real estate sector [12][16] - The company anticipates a gradual recovery in the market, driven by easing policies and urban regeneration initiatives [10][36] - Management is preparing for potential acquisition opportunities as the market stabilizes, although they believe the market has not yet bottomed out [75][86] Other Important Information - The company declared a final dividend of HKD 0.064 per share, bringing the total dividend for 2022 to HKD 0.10 per share [9] - A share buyback plan of up to HKD 500 million was approved, with 35 million shares repurchased [9] Q&A Session Summary Question: What is the contract sales target for financial year 2023? - The sales target for 2023 is RMB 13 billion, with 80% of the residential GFA available for sales coming from Wuhan [62] Question: What are the plans for refinancing the U.S. Dollar senior notes due in the second half of 2023? - The company will focus on onshore financing due to lower costs and better liquidity, and it is unlikely to issue new U.S. Dollar bonds unless market conditions improve significantly [66][68] Question: Are there any off-balance sheet liabilities related to joint ventures? - There are no liability issues with joint venture projects, as all partners are substantial companies with good credit [70] Question: What projects should investors expect in Shanghai? - The company is confident in opportunities in Shanghai, particularly in urban regeneration projects like Panlong Tendi [72] Question: Are there any M&A or land banking opportunities in the pipeline? - The company is cautiously monitoring M&A opportunities arising from market corrections but believes the market has not yet bottomed out [74][75] Question: How is the Wuhan property market performing? - The Wuhan property market is showing signs of recovery, with a 28.6% year-on-year increase in housing transactions in early 2023 [80] Question: What is the status of the Xueersi Xinjiang IPO? - The IPO is currently on pause due to market conditions, with no rush to list until the right market window is identified [82] Question: How does management view the current market and policy opportunities? - Management believes the market is stabilizing but still faces challenges, and they are preparing to acquire good assets at bargain prices when opportunities arise [86]

Financial Performance - In 2022, the company recorded a net profit of RMB 1.475 billion, with profit attributable to shareholders amounting to RMB 906 million, reflecting a decrease of 33% and 45% respectively compared to 2021[1][2][3]. - Total revenue for 2022 decreased by 11% to RMB 15.565 billion, down from RMB 17.555 billion in 2021, primarily due to delays in construction and delivery of residential units[2][3]. - Contracted property sales fell by 10% year-on-year to RMB 27.219 billion, while recognized property sales amounted to RMB 11.695 billion, a decrease of 14% from the previous year[2][3]. - The total rental and related income decreased by 4% to RMB 2.802 billion, impacted by rent concessions provided to tenants[2][3]. - The company declared a final dividend of HKD 0.064 per share, down from HKD 0.084 in 2021, resulting in a total dividend of HKD 0.10 for 2022[2][3]. - The company reported a significant increase in customer interest, with over 2,000 subscriptions for 571 units in the Shanghai Panlong Tiandi project[13]. - The company’s annual profit for 2022 was RMB 1,475 million, a significant decrease from RMB 2,208 million in 2021, representing a decline of 33.2%[73]. Assets and Liabilities - The net asset liability ratio increased to 45% from 30% in 2021, reflecting a 15 percentage point rise due to the redemption of USD 600 million of perpetual capital securities[1][3]. - The total assets decreased by 8% to RMB 104.878 billion, down from RMB 113.896 billion in 2021[3]. - The group’s total liabilities as of December 31, 2022, were RMB 20.144 billion, with total equity amounting to RMB 44.401 billion[51]. - The company has pledged assets totaling RMB 35.536 billion as of December 31, 2022, to secure borrowings of RMB 10.662 billion[52]. - The group has contractual development costs and capital expenditure commitments of RMB 5.771 billion as of December 31, 2022, down from RMB 8.999 billion in the previous year[53]. Market Outlook - The company anticipates gradual economic recovery following government support measures, with improved business sentiment expected as COVID-19 restrictions are eased[2]. - The global economic growth is projected to decline from 3.4% in 2022 to 2.9% in 2023 due to geopolitical tensions and inflation[92]. - China's economic growth slowed to 3.0% in 2022, with a rebound expected following the end of the "clearing zero" policy and reopening of borders[92]. - The government has set a GDP growth target of 5.5% for Shanghai in 2023, focusing on AI, new energy vehicles, semiconductors, and high-end equipment[93]. Property Development - The company has approximately 291,000 square meters of residential properties available for sale and pre-sale in 2023, covering six projects[11]. - The company plans to launch new projects in 2023, including the Wuhan Yangtze Tiandi project with a total saleable area of 124,900 square meters[11]. - The total area of residential properties sold in 2022 was approximately 273,700 square meters, a decrease from 466,800 square meters in 2021[10]. - The company has locked in total sales of RMB 40.9 billion as of December 31, 2022, which will be recognized in the fiscal year 2023 and beyond[2]. Investment Properties - As of December 31, 2022, the group's investment properties (excluding operating hotels and self-used properties) had a book value of RMB 96.513 billion, with a total built area of 2,635,700 square meters[21]. - The investment properties located in Shanghai, Wuhan, Foshan, Nanjing, and Chongqing accounted for 79%, 10%, 6%, 3%, and 2% of the book value, respectively[21]. - The total area available for lease is 1,393,200 square meters, with a total fair value of RMB 53.152 billion[22]. Financial Management - The company’s cash flow management is aimed at maintaining a balance between resource utilization, bank borrowings, and debt financing to ensure liquidity[54]. - The company has entered into forward contracts totaling approximately USD 1.530 billion and HKD 300 million to hedge currency risks as of December 31, 2022[55]. - The company incurred financial expenses, including exchange differences, totaling RMB 2.127 billion in 2022, up from RMB 895 million in 2021, with interest expenses rising 7% to RMB 1.951 billion[44]. Employee and Corporate Governance - The company employed 3,098 employees as of December 31, 2022, a decrease from 3,186 employees in 2021, including 1,545 property management personnel[101]. - The company is focused on providing a range of employee benefits and career development opportunities, including retirement plans and medical insurance[101]. - The company’s board confirmed compliance with the standards set out in the Securities Trading Code for directors throughout the year ended December 31, 2022[100]. Strategic Initiatives - The company plans to maintain a cautious approach and closely monitor market recovery while seeking suitable acquisition opportunities[94]. - The company is exploring suitable acquisitions and development projects to enhance its portfolio[105]. - The company is committed to its dividend policy and maintaining a strong financial position[105].

Financial Performance - The group recorded a profit of RMB 779 million for the first half of 2022, with attributable profit to shareholders amounting to RMB 450 million[8]. - Revenue decreased by 63% to RMB 4.415 billion in the first half of 2022, compared to RMB 11.977 billion in the same period of 2021, primarily due to delays in construction and delivery of residential units[17]. - The profit attributable to shareholders was RMB 450 million in the first half of 2022, down from RMB 1.082 billion in the same period of 2021, representing a decrease of 58%[54]. - The group reported a net profit of RMB 779 million for the period, a decrease from RMB 1.288 billion in 2021, indicating a decline of approximately 39.5%[67]. - Basic earnings per share for the period were RMB 0.056, down from RMB 0.135 in the previous year, reflecting a decrease of about 58.5%[67]. - The group reported a gross profit of RMB 1.057 billion for the first half of 2022, a 2% increase from the previous year[32]. - The group reported a total of RMB 2,480 million in receivables, an increase of 31.2% from RMB 1,889 million in the previous year[69]. Sales and Revenue - Contracted property sales increased by 55% year-on-year to RMB 18.7 billion in the first half of 2022[8]. - In the first half of 2022, the total contracted sales amounted to RMB 18.715 billion, with residential property sales at RMB 18.577 billion and commercial property sales at RMB 0.138 billion[10]. - The average selling price of confirmed property sales decreased by 10% to RMB 51,000 per square meter in the first half of 2022, attributed to delays in high-priced projects[20]. - The total locked sales amount expected to be delivered in the second half of 2022 and beyond is RMB 43.7 billion[23]. - Property sales revenue for the six months ended June 30, 2022, was RMB 2,449 million, a decrease of 76% compared to RMB 10,214 million in the same period of 2021[80]. Rental Income and Property Management - Rental and related income from commercial properties totaled RMB 1.476 billion, representing an 8% year-on-year growth[8]. - The average occupancy rate for the property portfolio was 91% as of June 30, 2022, demonstrating resilience despite market challenges[33]. - The rental income from Shanghai properties decreased by 4% to RMB 0.764 billion, accounting for 70% of total rental income, down from 73% in the previous year[49]. - The property management segment accounted for 18% of Ruian New World’s revenue in the first half of 2022, with a total managed commercial and residential area of 4.3 million square meters and 5.1 million square meters respectively[42]. - The rental and related income of the Wuhan Tian Di community increased by 20% in the first half of 2022, primarily due to the successful repositioning of Wuhan New World[40]. Financial Position and Debt Management - The net asset liability ratio increased by 13% to a stable level of 48% as of June 2022, compared to 30% on December 31, 2021[9]. - The company repaid or refinanced over USD 1.1 billion in debt over the past six months, including USD 600 million in preferred perpetual capital securities redeemed in June[12]. - The net debt as of June 30, 2022, was RMB 21.468 billion, an increase from RMB 14.579 billion as of December 31, 2021[58]. - The group secured borrowings amounting to RMB 11.471 billion as of June 30, 2022, compared to RMB 9.319 billion as of December 31, 2021[60]. - The company has pledged a total of RMB 36.827 billion in assets, an increase from RMB 34.433 billion as of December 31, 2021[60]. Market Conditions and Economic Impact - The impact of COVID-19 and lockdowns in Shanghai led to significant disruptions in business activities, affecting overall revenue[9]. - The second quarter GDP growth rate fell to 0.4% due to severe economic constraints from the pandemic[9]. - The company remains cautious about the short-term outlook for the real estate market, citing increased pressure on developers due to the "three red lines" policy introduced in 2020[11]. - Despite the short-term challenges, the company sees potential investment opportunities in prime locations due to market adjustments[11]. - In the first half of 2022, China's housing sales area and sales value decreased by 26.6% and 31.8% respectively, indicating a significant slowdown in the residential market[46]. Corporate Governance and Management - The company emphasizes the importance of good corporate governance for enhancing shareholder value and stakeholder confidence[131]. - The company has complied with all applicable provisions of the Corporate Governance Code for the six months ended June 30, 2022[132]. - The board consists of ten members, including four executive directors and six independent non-executive directors, reflecting a balance of skills, experience, and diverse perspectives[133]. - The company has established a code for employees regarding securities trading, which is not less stringent than the standard code adopted for directors[132]. - The company held its Annual General Meeting on May 26, 2022, providing a platform for shareholders to communicate with the board[142].

Financial Performance - Total revenue for 2021 reached RMB 17,555 million, a significant increase from RMB 4,597 million in 2020, representing a growth of 282%[8] - The company reported a core profit of RMB 1,608 million for 2021, compared to RMB 1,446 million in 2020, indicating a year-on-year increase of 11.2%[8] - The company reported a significant increase in gross profit to RMB 7,173 million in 2021, compared to RMB 2,350 million in 2020, marking a growth of 205%[8] - For the fiscal year 2021, the group's revenue grew by 282% to RMB 17.555 billion, and the profit attributable to shareholders was RMB 1.636 billion, reversing the losses from 2020[26] - The company's revenue for 2021 was RMB 17.555 billion, representing a 282% increase compared to the previous year, primarily due to a significant rise in property sales[51] - Property sales revenue surged 840% year-on-year to RMB 13.638 billion, driven by contributions from projects such as Shanghai Taipingqiao and Wuhan Tiandi Yunting Phase II[51] - The annual profit for 2021 was RMB 2.208 billion, a significant recovery from a loss of RMB 233 million in 2020[90] - The board proposed a final dividend of HKD 0.084 per share for the year, with total dividends for 2021 amounting to HKD 0.12 per share, compared to no dividends in 2020[51] Asset Management and Development - As of December 31, 2021, the total land reserve amounted to 9.4 million square meters, with 7 million square meters designated for rental and sale[9] - The total assets of the group were RMB 113,896 million, a slight decrease from RMB 115,475 million in 2020[9] - The group managed to maintain a total cash balance of RMB 17,284 million, an increase from RMB 15,796 million in the previous year[9] - The company's flagship project "Shanghai Xintiandi" is part of the company's extensive portfolio, which includes a total managed office and commercial property area of 1.72 million square meters in Shanghai[7] - The total construction area of the Tai Ping Qiao project is 1.2 million square meters, located in Huangpu District, Shanghai, and includes commercial shops, office buildings, residential, and cultural facilities[41] - The total construction area of the Hongqiao Tiandi project is 335,000 square meters, strategically located in the Hongqiao commercial core area, serving as a major commercial, cultural, and leisure landmark[42] - The total construction area of the Pacific New World Commercial Center in Shanghai is 276,000 square meters, with a planned completion date between 2022 and 2024, and the company holds a 25% stake in this project[64] Financial Ratios and Debt Management - The net asset liability ratio improved to 30% in 2021, down from 45% in 2020, reflecting a stronger financial position[9] - The net debt-to-equity ratio improved from 45% at the end of 2020 to 30% by December 31, 2021, indicating a more robust financial position[26] - The company's net debt as of December 31, 2021, was RMB 145.79 billion, with total equity of RMB 491.78 billion, resulting in a net debt-to-equity ratio of 30%[95] - The group had cash and bank deposits totaling RMB 172.84 billion as of December 31, 2021, compared to RMB 157.96 billion on December 31, 2020[95] Sustainability Initiatives - The company has committed to sustainable development, becoming the first Chinese real estate company to participate in the Science Based Targets initiative (SBTi) and issuing its first sustainable development-linked bonds[27] - The company aims to align its development strategy with China's urban sustainable development goals, focusing on urban renewal projects in metropolitan areas[28] - The company aims to achieve carbon neutrality and reduce waste across its property portfolio[163] - The company has implemented a risk management framework to identify and manage significant risks affecting its performance[161] - The company launched a green menu program for its dining tenants across its property portfolio, utilizing 100% renewable energy at Wuhan Tiandi Yifang Shopping Center[164] - The company achieved a sustainable development rating of 71.71 (AA-) from the Hong Kong Quality Assurance Agency (HKQAA) and an A rating (5.4) from MSCI ESG ratings[165] Corporate Governance - The board of directors consists of ten members, including four executive directors and six independent non-executive directors[104] - The company has established five board committees: Audit and Risk Committee, Remuneration Committee, Nomination Committee, Sustainability Committee, and Strategy Committee[103] - The company has committed to enhancing corporate governance practices and has adopted various procedures and documents to comply with the Corporate Governance Code[102] - The company has maintained compliance with all applicable provisions of the Corporate Governance Code, with some deviations noted in the Nomination Committee section[102] - The company has established a written procedure for directors to seek independent professional advice at the company's expense[103] Employee Engagement and Diversity - As of December 31, 2021, 47% of the group's employees, including senior management, were women[108] - The company was included in the 2022 Bloomberg Gender-Equality Index, which tracks the performance of publicly listed companies committed to gender data transparency[108] - Gender ratio among employees is 53% male and 47% female[200] - Average employee development training hours is 43.41[200] - 99.8% of female employees participated in training programs[200] Market and Economic Context - In 2021, China's GDP grew by 8.1%, with real estate development investment increasing by 4.4% year-on-year, despite credit tightening in the sector[28] - The real estate sector is expected to shift towards rational business models, reducing reliance on high leverage and focusing on sustainability[101] - The Chinese government has introduced strategies like "dual circulation" and "common prosperity" to ensure sustainable and high-quality development amid economic challenges[101] Risk Management - The company has established a risk management framework tailored to its business model to manage operational risks[156] - Identified risks are continuously assessed, with priority given to significant risks in the risk management plan[159] - The company has implemented risk response measures, categorizing them into acceptance and reduction strategies based on risk significance[159]

Financial Performance - In the first half of 2019, the revenue reached RMB 7.902 billion, with general property sales increasing to RMB 5.106 billion, a year-on-year increase of 76%[7]. - Net profit attributable to shareholders rose by 8% year-on-year to RMB 1.326 billion in the first half of 2019[7]. - The gross profit margin increased by 18 percentage points to 45% in the first half of 2019, compared to 27% in the same period of 2018[7]. - The company's revenue decreased by 58% to RMB 7.902 billion in the first half of 2019, down from RMB 19.032 billion in the same period of 2018[52]. - Property sales fell by 64% to RMB 6.376 billion in the first half of 2019, compared to RMB 17.880 billion in the first half of 2018[52]. - The total confirmed property sales for the first half of 2019 amounted to RMB 7.817 billion, a decrease of 56% compared to RMB 17.899 billion in the first half of 2018[33]. - The company's net profit for the first half of 2019 was RMB 1.598 billion, an increase from RMB 1.479 billion in the same period of 2018[61]. - The group's recurring revenue increased by 17% year-on-year to RMB 1.107 billion in the first half of 2019, driven by the reopening of Shanghai Xintiandi Plaza and strong rental growth in other properties[25]. Asset Management and Development - The company manages a total building area of 1.65 million square meters of office and commercial properties in Shanghai, making it one of the largest private commercial property owners and managers in the city[3]. - The total asset value of the Shanghai property portfolio reached approximately RMB 73 billion as of June 30, 2019, with the group's effective interest increasing from 47% to 57% after recent acquisitions[22]. - The company is committed to enhancing the value of existing and newly acquired assets while maintaining a prudent approach in response to market challenges[6]. - The company plans to enhance asset value based on the "New天地" and "INNO" brands, focusing on high-quality properties in prime locations[15]. - The company is expanding its property portfolio and improving asset management services to diversify income sources and enhance its market position[14]. - The company has a total of 8.6 million square meters of land reserve as of June 30, 2019, including 6.7 million square meters available for lease and sale[42]. Market Strategy and Focus - The company continues to focus on Shanghai as its most important market, leveraging its brand advantages and asset management experience to explore more commercial opportunities[9]. - The flagship project "Xintiandi" has been repositioned and upgraded, with the opening of "Xintiandi Plaza" on May 16, 2019, featuring 16 first-time tenants in mainland China and 11 first-time tenants in Shanghai, accounting for about 30% of the total tenants[10]. - The company aims to achieve a residential property sales target of RMB 10 billion despite ongoing government measures to control property prices[15]. - The company anticipates launching more residential property development projects in the second half of 2019 based on construction progress[35]. Financial Position and Liabilities - As of June 30, 2019, the net asset liability ratio slightly increased by 4 percentage points to 44%[8]. - The company's net debt as of June 30, 2019, was RMB 20.984 billion, up from RMB 18.877 billion at the end of 2018[71]. - The group had pledged assets totaling RMB 37.205 billion as of June 30, 2019, compared to RMB 37.036 billion on December 31, 2018, to secure borrowings of RMB 11.089 billion[73]. - The group aims to maintain a balance between the sustainability and flexibility of funds through a combination of internal resources, bank borrowings, and debt financing[75]. Shareholder Returns and Dividends - The company proposed an interim dividend of HKD 0.036 per share, consistent with the interim dividend from the first half of 2018[64]. - The company declared a dividend of HKD 0.084 per share for the year-end 2018, maintaining its commitment to shareholder returns[88]. - Basic earnings per share increased to RMB 16.4 cents, compared to RMB 15.2 cents for the same period last year[83]. Economic and Market Conditions - The GDP growth rate in Shanghai rose from 5.7% in Q1 2019 to 5.9% in the first half of 2019[48]. - The investment transaction volume in China's property market reached $24 billion in the first half of 2019, with Shanghai accounting for 45% of the total[47]. - The company noted a 50% share of overseas buyers in the property transaction volume during the first half of 2019[47]. Corporate Governance - The company has complied with all applicable provisions of the Corporate Governance Code during the six months ended June 30, 2019[183]. - The board consists of 9 members, including 3 executive directors, 1 non-executive director, and 5 independent non-executive directors[186]. - The roles of the Chairman and CEO are clearly separated, with Mr. Lo serving as Chairman and the Executive Committee handling management responsibilities[187].