[Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's revenue increased by **64%** to **RMB 8,232,782 thousand** for the six months ended June 30, 2023, with profit for the period surging **190%** to **RMB 33,498 thousand**, though profit attributable to owners decreased **22.6%** to **RMB 81,910 thousand** | Indicator | H1 2023 (RMB thousands) | H1 2022 (RMB thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 8,232,782 | 5,023,101 | 64% | | Cost of sales | (6,649,180) | (4,093,515) | 62% | | Gross profit | 1,583,602 | 929,586 | 70% | | Profit for the period | 33,498 | 11,532 | 190% | | Profit attributable to owners of the Company | 81,910 | 105,864 | -22.6% | | Basic earnings per share (RMB) | 0.03 | 0.04 | -25% | - Other comprehensive income for the period was **RMB 953 thousand**, a significant decrease from **RMB 87,291 thousand** in the prior year period[25](index=25&type=chunk)[40](index=40&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the Group's total assets were **RMB 144,267,014 thousand**, total liabilities **RMB 121,789,370 thousand**, and total equity **RMB 22,477,644 thousand**, all slightly decreased from year-end 2022, with net current assets at **RMB 7,379,260 thousand** | Indicator | June 30, 2023 (RMB thousands) | December 31, 2022 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 144,267,014 | 149,650,517 | -3.6% | | Total liabilities | 121,789,370 | 126,438,130 | -3.7% | | Total equity | 22,477,644 | 23,212,387 | -3.2% | | Investment properties | 10,387,000 | 11,181,000 | -7.1% | | Properties under development | 74,422,837 | 76,575,661 | -2.8% | | Bank balances and cash | 1,739,814 | 3,011,771 | -42.3% | | Net current assets | 7,379,260 | 9,094,847 | -18.8% | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with IAS 34 "Interim Financial Reporting" and Appendix 16 of the HKEX Listing Rules, primarily measured at historical cost, except for certain properties and financial instruments at fair value, with no significant impact from new IFRS standards - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of Appendix 16 to the Listing Rules of The Stock Exchange of Hong Kong Limited[32](index=32&type=chunk) - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain properties and financial instruments which are measured at fair value[47](index=47&type=chunk) - The application of new and revised International Financial Reporting Standards (IFRSs) in the current interim period has had no significant impact on the Group's financial position, performance, and/or disclosures in the condensed consolidated financial statements for the current and prior periods[34](index=34&type=chunk) [Significant Accounting Policies](index=5&type=section&id=Significant%20Accounting%20Policies) The Group first applied new and revised IFRSs issued by the IASB, effective for annual periods beginning January 1, 2023, including IFRS 17 (Insurance Contracts) and amendments to IAS 8 and IAS 12 - The Group has first applied new and revised International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) that are mandatorily effective for the annual period beginning January 1, 2023[71](index=71&type=chunk) New and Revised International Financial Reporting Standards | Standard | Content | | :--- | :--- | | IFRS 17 | Insurance Contracts | | Amendments to IAS 8 | Definition of Accounting Estimates | | Amendments to IAS 12 | Deferred Tax related to Assets and Liabilities arising from a Single Transaction | | Amendments to IAS 12 | International Tax Reform — Pillar Two Model Rules | [Disaggregation of Revenue from Contracts with Customers](index=6&type=section&id=Disaggregation%20of%20Revenue%20from%20Contracts%20with%20Customers) The Group's total revenue from contracts with customers for H1 2023 was **RMB 8,232,782 thousand**, predominantly from property sales at **RMB 7,790,022 thousand**, which grew **68%** year-on-year, while hotel and ancillary services revenue decreased Disaggregation of Revenue from Contracts with Customers (RMB thousands) | Type of goods or services | H1 2023 | H1 2022 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Property sales | 7,790,022 | 4,650,178 | 67.5% | | Hotel and ancillary services | 20,631 | 31,310 | -34.1% | | Property management and other services | 323,935 | 243,682 | 32.9% | | Leasing - rental income | 98,194 | 97,931 | 0.3% | | Total revenue | 8,232,782 | 5,023,101 | 63.9% | [Operating Segments](index=7&type=section&id=Operating%20Segments) The Group's main operating segments are property sales, leasing, hotel and ancillary services, and property management, with property sales being the primary revenue source, contributing **RMB 7,790,022 thousand** in external sales and **RMB 300,260 thousand** in segment profit for H1 2023, also dominating segment assets and liabilities Segment Revenue (External Sales, RMB thousands) | Segment | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Property sales | 7,790,022 | 4,650,178 | | Property leasing | 98,194 | 97,931 | | Hotel and ancillary services | 20,631 | 31,310 | | Property management and other services | 323,935 | 243,682 | | Total | 8,232,782 | 5,023,101 | Segment Profit (Loss) (RMB thousands) | Segment | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Property sales | 300,260 | (215,332) | | Property leasing | (262,214) | 50,822 | | Hotel and ancillary services | (10,283) | 169,077 | | Property management and other services | 14,411 | (28,382) | | Profit for the period | 33,498 | 11,532 | Segment Assets and Liabilities (RMB thousands) | Segment | June 30, 2023 (Assets) | June 30, 2023 (Liabilities) | | :--- | :--- | :--- | | Property sales | 155,624,911 | 148,489,340 | | Property leasing | 10,387,000 | 5,505,376 | | Hotel and ancillary services | 2,076,253 | 1,649,407 | | Property management and other services | 9,606,970 | 5,406,238 | | Total reportable segment assets | 144,267,014 | - | | Total reportable segment liabilities | - | 121,789,370 | [Finance Costs](index=9&type=section&id=Finance%20Costs) The Group's finance costs for H1 2023 decreased **27.7%** to **RMB 71,321 thousand** from **RMB 98,573 thousand** in the prior year, driven by a significant increase in bond interest expenses offset by a substantial reduction in interest-bearing loan expenses and capitalized interest Finance Costs (RMB thousands) | Item | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Interest expense on bonds | 406,843 | 42,940 | | Interest expense on interest-bearing loans | 8,416 | 519,986 | | Interest expense on lease liabilities | - | 18,164 | | Interest expense on contract liabilities | 250,399 | 383,392 | | Less: Capitalized interest on bonds | - | (30,144) | | Capitalized interest on interest-bearing loans | (343,938) | (452,373) | | Capitalized interest on contract liabilities | (250,399) | (383,392) | | Total | 71,321 | 98,573 | [Income Tax Expense](index=9&type=section&id=Income%20Tax%20Expense) The Group's income tax expense for H1 2023 increased **12.9%** to **RMB 421,235 thousand**, primarily due to higher profit before tax, with China corporate income tax at **25%** and land appreciation tax at progressive rates from **30% to 60%** Income Tax Expense (RMB thousands) | Item | H1 2023 | H1 2022 | | :--- | :--- | :--- | | PRC corporate income tax | 327,852 | 229,142 | | PRC land appreciation tax | 535,868 | 91,525 | | Deferred tax | (114,633) | 52,421 | | Total | 421,235 | 373,088 | - The Group's principal operating companies in the PRC are subject to PRC corporate income tax at a rate of **25%** for both periods[80](index=80&type=chunk) - All income from the sale or transfer of state-owned land use rights, buildings, and their attached facilities in the PRC is subject to Land Appreciation Tax at progressive rates ranging from **30% to 60%** on the appreciation value[81](index=81&type=chunk) [Dividends](index=10&type=section&id=Dividends) The Company's Board of Directors has decided not to pay any dividends for the six months ended June 30, 2023 - No dividends have been paid, declared, or proposed for the current interim period, and the Company's directors have determined that no dividends will be paid for the interim period[3](index=3&type=chunk)[58](index=58&type=chunk) [Earnings Per Share](index=10&type=section&id=Earnings%20Per%20Share) Basic earnings per share attributable to owners of the Company for the six months ended June 30, 2023, decreased to **RMB 0.03** from **RMB 0.04** in the prior year, calculated based on profit of **RMB 81,910 thousand** and a weighted average of **2,769,188 thousand** ordinary shares Basic Earnings Per Share Calculation | Item | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (RMB thousands) | 81,910 | 105,864 | | Weighted average number of ordinary shares (thousands of shares) | 2,769,188 | 2,769,188 | | Basic earnings per share (RMB) | 0.03 | 0.04 | [Investment Properties](index=10&type=section&id=Investment%20Properties) As of June 30, 2023, the Group's investment properties had a fair value of **RMB 10,387,000 thousand**, a decrease from year-end 2022, with a net fair value decrease of **RMB 389,148 thousand** recognized during the period, valued by independent professional valuers DTZ Cushman & Wakefield using income capitalization and development cost approaches Movement in Investment Properties (RMB thousands) | Item | Investment properties under development | Completed investment properties | Total investment properties | | :--- | :--- | :--- | :--- | | At January 1, 2023 (audited) | 3,150,000 | 8,031,000 | 11,181,000 | | Additions | 300,205 | – | 300,205 | | Transfers | (3,450,205) | 3,450,205 | – | | Disposals | – | (705,057) | (705,057) | | Net decrease in fair value recognized in profit or loss | – | (389,148) | (389,148) | | At June 30, 2023 (unaudited) | – | 10,387,000 | 10,387,000 | - The fair value of the Group's investment properties is derived from valuations performed by DTZ Cushman & Wakefield Limited, an independent qualified professional valuer, at the relevant dates[59](index=59&type=chunk) - Completed investment properties are valued using the income capitalization approach, while properties under construction or development are valued based on completion assumptions, considering market value, development costs, and developer's profit margin[85](index=85&type=chunk)[86](index=86&type=chunk) [Trade and Other Receivables, Deposits and Prepayments](index=11&type=section&id=Trade%20and%20Other%20Receivables%2C%20Deposits%20and%20Prepayments) As of June 30, 2023, the Group's total trade and other receivables, deposits, and prepayments amounted to **RMB 24,153,763 thousand**, a slight decrease from year-end 2022, with trade receivables net of credit loss allowance at **RMB 371,109 thousand**, where balances over **365 days** constituted the largest portion Trade and Other Receivables, Deposits and Prepayments (RMB thousands) | Item | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Trade receivables, net of allowance for credit losses | 371,109 | 401,785 | | Other receivables, net of allowance for credit losses | 19,187,550 | 20,009,887 | | Prepayments | 1,567,754 | 1,516,637 | | Prepaid deposits for acquisition of land for development | 465,120 | 465,120 | | Other prepaid taxes | 2,562,230 | 2,492,043 | | Total | 24,153,763 | 24,885,472 | Ageing Analysis of Trade Receivables (RMB thousands) | Ageing | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | 0-90 days | 120,964 | 141,556 | | 91-180 days | 8,744 | 5,084 | | 181-365 days | 17,412 | 25,415 | | Over 365 days | 223,989 | 229,730 | | Total | 371,109 | 401,785 | [Trade and Other Payables](index=12&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2023, the Group's total trade and other payables amounted to **RMB 55,650,446 thousand**, a slight decrease from year-end 2022, with trade payables being largely unsecured, interest-free, and repayable on demand, and the **0-90 days** ageing category representing the largest portion Trade and Other Payables (RMB thousands) | Item | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Trade payables | 26,662,493 | 27,332,409 | | Non-trade payables to related parties | 7,482,386 | 7,250,866 | | Other taxes payable | 1,693,768 | 1,787,413 | | Interest payable | 145,204 | 198,776 | | Consideration payable to Greenland Holdings Group Company Limited | 953,759 | 953,759 | | Amounts due to non-controlling shareholders | 5,442,438 | 5,264,529 | | Other payables and accrued expenses | 13,270,398 | 13,315,977 | | Total | 55,650,446 | 56,103,729 | Ageing Analysis of Trade Payables (RMB thousands) | Ageing | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | 0-90 days | 17,425,156 | 18,826,085 | | 91-180 days | 343,681 | 578,035 | | 181-365 days | 3,626,600 | 2,290,710 | | Over 365 days | 5,267,056 | 5,637,579 | | Total | 26,662,493 | 27,332,409 | [Perpetual Securities](index=13&type=section&id=Perpetual%20Securities) In 2016, the Group issued **US$120,000,000** in senior perpetual capital securities, granting holders semi-annual distribution rights and classified as equity, with a **10.21%** distribution rate applied for the interim period, resulting in **US$6,126,000** (approximately **RMB 41,413,000**) accrued and paid - The Group issued US dollar-denominated senior perpetual capital securities with an aggregate principal amount of **US$120,000,000** on July 27, 2016[5](index=5&type=chunk) - The perpetual securities only impose contractual obligations on the Group to repay principal or pay any distributions at the Group's discretion under certain circumstances, thus the entire instrument is classified as equity[91](index=91&type=chunk) - For the current interim period, the Group applied a distribution rate of **10.21%** to the perpetual securities, and distributions of **US$6,126,000** (equivalent to approximately **RMB 41,413,000**) have been accrued and paid[67](index=67&type=chunk)[118](index=118&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [Industry Review](index=14&type=section&id=Industry%20Review) China's real estate sector faced unprecedented challenges in 2022 but saw a gradual market confidence recovery in 2023 due to eased pandemic controls and supportive policies; despite a Q1 rebound, the market slowed, with property development remaining sluggish in H1, while the government reiterated "housing is for living, not for speculation" and extended the "16 Financial Measures" policy until December 30, 2024 - China's real estate industry experienced unprecedented difficulties in 2022, but market confidence gradually recovered in 2023 with the full lifting of pandemic control measures and multiple supportive real estate policies from the Chinese government[17](index=17&type=chunk) - China's GDP grew **4.5%** year-on-year in Q1 2023, leading to a localized "mini-spring" in the property market, but the market subsequently slowed, with the real estate market still in a slow recovery during the first half of the year[17](index=17&type=chunk)[119](index=119&type=chunk) - The People's Bank of China and the National Financial Regulatory Administration announced an extension of the "16 Financial Measures" policy until December 30, 2024, reiterating the principle that "housing is for living, not for speculation"[94](index=94&type=chunk) [Business Review](index=15&type=section&id=Business%20Review) The Group's H1 2023 contracted sales reached approximately **RMB 8.97 billion**, a **9.62%** year-on-year increase, with a total contracted GFA of approximately **760,473 square meters**; the Group focused on inventory destocking, innovative marketing, enhancing delivery and operational capabilities, and actively developing long-term rental and commercial projects, holding approximately **20.4 million square meters** of land reserves at period-end - The Group's contracted sales for H1 2023 were approximately **RMB 8.97 billion**, an increase of **9.62%** year-on-year, with a total contracted gross floor area (GFA) of approximately **760,473 square meters**, a decrease of **7.43%** year-on-year[95](index=95&type=chunk)[123](index=123&type=chunk) - During the review period, the total GFA of projects sold and delivered was approximately **503,838 square meters**, an increase of approximately **24%** compared to the prior year period, with an average selling price of approximately **RMB 15,408 per square meter**[122](index=122&type=chunk) - The Group focused on destocking existing assets, innovating marketing strategies, pragmatically advancing projects to reduce losses and increase efficiency, and strengthening risk management through prudent financial management[121](index=121&type=chunk) [Contracted Sales](index=16&type=section&id=Contracted%20Sales) H1 2023 Contracted Sales Overview | Indicator | Data | | :--- | :--- | | Contracted sales amount | Approximately RMB 8.97 billion | | Y-o-Y growth | 9.62% | | Total contracted GFA sold | Approximately 760,473 square meters | | Y-o-Y decrease | 7.43% | | Average contracted selling price | Approximately RMB 11,795/square meter | - Contracted sales were primarily derived from projects in key regions including Jiangsu (approximately **35%**), Guangdong (approximately **34%**), Zhejiang (approximately **17%**), and Guangxi (approximately **10%**)[96](index=96&type=chunk) [Continuous Improvement in Delivery and Operational Capabilities](index=16&type=section&id=Continuous%20Improvement%20in%20Delivery%20and%20Operational%20Capabilities) - The Group continues to focus on enhancing delivery and operational capabilities, resolutely implementing the central government's requirements for "ensuring housing delivery, safeguarding livelihoods, and maintaining stability," and accelerating project completion and handover[7](index=7&type=chunk) - Greenland Hong Kong created "Transparent HOUSE" to genuinely present concealed works such as construction techniques, finished product protection, materials used, and inspection standards, forming a "1+2+4" delivery control system[97](index=97&type=chunk) - The Group further optimized and adapted project costs through avenues such as design optimization, material optimization, and process optimization, effectively achieving cost reduction and efficiency improvement[99](index=99&type=chunk) [Long-term Rental Business](index=17&type=section&id=Long-term%20Rental%20Business) - The Group's meticulously crafted long-term rental apartment brand, "Jingshe," is dedicated to providing quality, comfortable, and stylish living spaces with a social atmosphere for urban youth[100](index=100&type=chunk) - Leveraging its innovative "Internet + x" business model, "Jingshe" has established four major business segments: online group buying, offline new retail, shared fitness, and Jingshe home services[19](index=19&type=chunk) - During the review period, the Group successfully signed a Nanjing project with a total volume of over **400 units**, further solidifying "Jingshe"'s strategic layout in the Yangtze River Delta region, with a future focus on first-tier and new first-tier cities[100](index=100&type=chunk)[128](index=128&type=chunk) [Commercial Projects](index=17&type=section&id=Commercial%20Projects) - Yiwu Greenland Chaoyangmen officially opened on April 29, as a large-scale commercial complex in the Yangtze River Delta with a GFA of approximately **230,000 square meters**, having attracted over **260 brands**[129](index=129&type=chunk) [Land Reserve](index=18&type=section&id=Land%20Reserve) - As of June 30, 2023, the Group possessed ample high-quality land reserves, totaling approximately **20.4 million square meters**[130](index=130&type=chunk) - While prudently increasing its land reserves, the Group is deeply cultivating core urban areas in the Yangtze River Delta and Greater Bay Area, advancing its "Two Wings, One Body" strategic layout[130](index=130&type=chunk) [Financial Performance](index=19&type=section&id=Financial%20Performance) The Group's total revenue for H1 2023 increased **64%** year-on-year to **RMB 8.233 billion**, primarily due to increased property sales and deliveries; gross profit grew **70%** to **RMB 1.584 billion**, maintaining a **19%** gross profit margin, but other income, gains, and losses shifted from profit to loss, mainly impacted by exchange losses, while investment property fair value losses significantly expanded, and finance costs and operating expenses decreased - The Group's total revenue for H1 2023 was approximately **RMB 8.233 billion**, an increase of approximately **64%** compared to the prior year period, primarily due to higher property sales and deliveries[104](index=104&type=chunk) - Gross profit increased from approximately **RMB 930 million** in H1 2022 to approximately **RMB 1.584 billion**, with a gross profit margin of **19%**, consistent with the prior year period[106](index=106&type=chunk) - Other income, gains, and losses, as well as other operating expenses, decreased from a profit of approximately **RMB 50 million** in H1 2022 to a loss of approximately **RMB 182 million** in the corresponding period of 2023, primarily due to exchange losses during the review period[21](index=21&type=chunk) [Revenue](index=19&type=section&id=Revenue) - Property sales generated revenue of approximately **RMB 7.79 billion** in H1 2023, accounting for approximately **95%** of total revenue, an increase of approximately **68%** from the prior year[132](index=132&type=chunk) [Cost of Sales](index=19&type=section&id=Cost%20of%20Sales) - Cost of sales was approximately **RMB 6.649 billion**, an increase of approximately **62%** compared to H1 2022, primarily comprising land costs, construction costs, capitalized finance costs, and sales taxes[105](index=105&type=chunk) [Gross Profit and Gross Profit Margin](index=19&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) - Gross profit increased from approximately **RMB 930 million** in H1 2022 to approximately **RMB 1.584 billion**, with a gross profit margin of **19%**, consistent with the prior year period[106](index=106&type=chunk) [Other Income, Gains and Losses and Other Operating Expenses](index=19&type=section&id=Other%20Income%2C%20Gains%20and%20Losses%20and%20Other%20Operating%20Expenses) - Other income, gains, and losses, as well as other operating expenses, decreased from a profit of approximately **RMB 50 million** in H1 2022 to a loss of approximately **RMB 182 million** in the corresponding period of 2023, primarily due to exchange losses during the review period[21](index=21&type=chunk) [Operating Expenses](index=20&type=section&id=Operating%20Expenses) - Administrative expenses and selling and marketing costs decreased by approximately **23%** and **8%** respectively, to approximately **RMB 207 million** and **RMB 296 million**, mainly due to effective management of expenditure control[108](index=108&type=chunk) [Fair Value Changes of Investment Properties](index=20&type=section&id=Fair%20Value%20Changes%20of%20Investment%20Properties) - The Group recorded a fair value loss on investment properties of approximately **RMB 389 million**, compared to a loss of approximately **RMB 14 million** in the prior year period, primarily due to value declines in projects in Kunming, Jiaxing, Nanning, and Foshan[147](index=147&type=chunk) [Finance Costs](index=20&type=section&id=Finance%20Costs) - Finance costs decreased from approximately **RMB 99 million** in H1 2022 to approximately **RMB 71 million** in H1 2023[135](index=135&type=chunk) [Income Tax Expense](index=20&type=section&id=Income%20Tax%20Expense) - Income tax increased by approximately **13%** from approximately **RMB 373 million** in H1 2022 to approximately **RMB 421 million** in the corresponding period of 2023, primarily due to an increase in profit before tax[110](index=110&type=chunk) [Profit for the Period and Attributable to Owners of the Company](index=20&type=section&id=Profit%20for%20the%20Period%20and%20Attributable%20to%20Owners%20of%20the%20Company) - Profit for the period was approximately **RMB 33 million**, an increase of approximately **175%** compared to H1 2022; profit attributable to owners of the Company was approximately **RMB 82 million**, a decrease of approximately **23%** compared to H1 2022[136](index=136&type=chunk) [Financial Position](index=20&type=section&id=Financial%20Position) As of June 30, 2023, the Group's total equity was approximately **RMB 22.478 billion**, total assets approximately **RMB 144.267 billion**, and total liabilities approximately **RMB 121.789 billion**; the net gearing ratio increased to **51%**, with total cash and cash equivalents of approximately **RMB 3.619 billion** and total borrowings of approximately **RMB 15.032 billion**, with business operations, bank borrowings, and cash raised serving as primary liquidity sources Financial Position Overview (RMB thousands) | Indicator | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total equity | 22,478,000 | 23,212,000 | | Total assets | 144,267,000 | 149,651,000 | | Total liabilities | 121,789,000 | 126,438,000 | Liquidity Indicators (RMB thousands) | Indicator | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Net gearing ratio | 51% | 48% | | Total cash and cash equivalents (including restricted cash) | 3,619,000 | - | | Total borrowings | 15,032,000 | - | | Equity base | 22,478,000 | - | - The Group's business operations, bank borrowings, and cash proceeds raised serve as its primary sources of liquidity, applied to business operations and investment development projects[112](index=112&type=chunk) [Liquidity and Financial Resources](index=21&type=section&id=Liquidity%20and%20Financial%20Resources) - The Group's business operations, bank borrowings, and cash proceeds raised are its primary sources of liquidity[112](index=112&type=chunk) - As of June 30, 2023, the net gearing ratio was approximately **51%** (December 31, 2022: approximately **48%**), with total cash and cash equivalents of approximately **RMB 3.619 billion** and total borrowings of approximately **RMB 15.032 billion**[150](index=150&type=chunk) [Treasury Policy](index=21&type=section&id=Treasury%20Policy) - The Group has established a treasury policy aimed at strengthening control over treasury functions and reducing funding costs[139](index=139&type=chunk) - The Group will continue to monitor the exchange rate trends of RMB against USD and will take appropriate measures to hedge foreign exchange risks when necessary[151](index=151&type=chunk) - To minimize interest rate risk, the Group continues to closely monitor and manage its loan portfolio through existing agreed interest rates that fluctuate with market and bank rates[114](index=114&type=chunk) [Credit Policy](index=21&type=section&id=Credit%20Policy) - Trade receivables primarily arise from the sale and leasing of properties, collected according to the terms stipulated in the relevant sale and purchase agreements and lease agreements[140](index=140&type=chunk) [Pledge of Assets](index=21&type=section&id=Pledge%20of%20Assets) - As of June 30, 2023, the Group pledged properties and land use rights with a carrying value of approximately **RMB 29.159 billion** to secure bank credit, with total outstanding secured loan balances of approximately **RMB 13.64 billion**[115](index=115&type=chunk) - As of June 30, 2023, no investment properties were pledged as collateral for the Group's borrowings[4](index=4&type=chunk) [Financial Guarantees](index=22&type=section&id=Financial%20Guarantees) Financial Guarantees and Capital Commitments (RMB thousands) | Item | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Mortgage guarantees | 21,982,260 | 25,598,816 | | Capital commitments for property development business (contracted but not provided for) | 17,934,091 | 19,278,666 | [Outlook](index=18&type=section&id=Outlook) For the full year 2023, Greenland Hong Kong aims to focus on multi-channel cost reduction, multi-dimensional efficiency improvement, high-quality delivery, high-quality operations, and high-level organization; over the next three years, it will deepen transformation and upgrading, continuously enhance "old tracks" while actively exploring "new tracks," with asset-light strategy as a core focus, prioritizing high-quality development and stable operations, practicing long-termism, promoting green building, intelligent management, and fulfilling corporate social responsibility - Greenland Hong Kong has clarified its 2023 work objectives, including focusing on multi-channel cost reduction, multi-dimensional efficiency improvement, high-quality delivery, high-quality operations, and high-level organization[103](index=103&type=chunk) - Over the next three years, the Group will further deepen its transformation and upgrading, continuously enhancing "old tracks" while actively exploring "new tracks," with asset-light strategy as one of its core strategies, and high-quality development and stable operations remaining strategic priorities[103](index=103&type=chunk) - The Group will adhere to the development principles of "respecting and caring for every inch of land" and "persisting as creators of a better life," promoting high-quality development of green buildings, achieving low-carbon development, and integrating intelligent and information-based management[131](index=131&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) [Human Resources](index=22&type=section&id=Human%20Resources) As of June 30, 2023, the Group employed **2,792** staff, a decrease from the prior year, utilizing a performance-linked incentive system with year-end bonuses and share award schemes to motivate and retain talent, alongside various training programs - As of June 30, 2023, the Group employed a total of **2,792** staff (June 30, 2022: **3,250** staff), with **1,337** employees working in the property development business[153](index=153&type=chunk) - To incentivize employees, the Group has adopted a performance-linked incentive system, providing year-end bonuses to outstanding performers in addition to basic salaries, and implementing a share award scheme to attract and retain talent[153](index=153&type=chunk) - The Group also provides various training courses to enhance employees' skills and develop their expertise[153](index=153&type=chunk) [Interim Dividend](index=22&type=section&id=Interim%20Dividend) The Company's Board of Directors has resolved not to declare any interim dividend for the six months ended June 30, 2023 - The Company's Board of Directors has resolved not to declare any interim dividend for the six months ended June 30, 2023[154](index=154&type=chunk) [Material Changes](index=22&type=section&id=Material%20Changes) Except as disclosed in this announcement, there have been no material changes concerning the Group's business development, financial position, future prospects, or other significant matters affecting the Group since the publication of the Company's 2022 annual report - Except as disclosed in this announcement, there have been no material changes concerning the Group's business development, financial position, future prospects, or other significant matters affecting the Group since the publication of the Company's 2022 annual report[155](index=155&type=chunk) [Corporate Governance](index=22&type=section&id=Corporate%20Governance) For the six months ended June 30, 2023, the Company complied with the Corporate Governance Code in Appendix 14 of the Listing Rules, except for code provisions C.2.1 and F.2.2, where the roles of Chairman and CEO were combined for a period, and the Board Chairman did not attend the Annual General Meeting - For the six months ended June 30, 2023, the Company has complied with the code provisions of the Corporate Governance Code set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, save for code provisions C.2.1 and F.2.2[156](index=156&type=chunk) - Code provision C.2.1 stipulates that the roles of chairman and chief executive should be separate, but from January 1, 2023, to June 15, 2023, Mr. Chen Jun served as both the Chairman of the Board and the Chief Executive Officer of the Company[157](index=157&type=chunk) - Code provision F.2.2 requires the chairman of the board to attend the annual general meeting, but the Chairman of the Board did not attend the annual general meeting held on June 30, 2023, due to other business commitments[157](index=157&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the six months ended June 30, 2023, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the six months ended June 30, 2023, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[158](index=158&type=chunk) [Events After the Reporting Period](index=23&type=section&id=Events%20After%20the%20Reporting%20Period) Except as disclosed in this announcement, no significant events affecting the Group have occurred after the end of the six-month period ended June 30, 2023 - Except as disclosed in this announcement, no significant events affecting the Group have occurred after the end of the six-month period ended June 30, 2023[159](index=159&type=chunk) [Review of Unaudited Condensed Consolidated Financial Statements](index=23&type=section&id=Review%20of%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The Company's condensed consolidated financial statements for the six months ended June 30, 2023, though unaudited, have been reviewed by the Audit Committee, which, after discussions with management and external auditors, confirmed their preparation in accordance with applicable accounting standards and fair presentation of the Group's financial position and results - The Company's condensed consolidated financial statements for the six months ended June 30, 2023, are unaudited but have been reviewed by the Audit Committee[159](index=159&type=chunk) - The Audit Committee has discussed with the Company's management and external auditors the accounting principles and policies adopted in preparing the aforementioned financial statements[159](index=159&type=chunk) - Based on the review and discussions, the Audit Committee is satisfied that the unaudited condensed consolidated financial statements are prepared in accordance with applicable accounting standards and fairly present the Group's financial position and results for the six months ended June 30, 2023[159](index=159&type=chunk) [Publication of 2023 Interim Results and Interim Report](index=23&type=section&id=Publication%20of%202023%20Interim%20Results%20and%20Interim%20Report) This interim results announcement has been published on the HKEXnews website and the Company's website; the 2023 interim report will be published on both websites and dispatched to shareholders on or before September 30, 2023 - This announcement has been published on the HKEXnews website (www.hkexnews.hk) and the Company's website (www.greenlandhk.com)[160](index=160&type=chunk) - The 2023 interim report will be published on the HKEXnews website and the Company's website, and dispatched to shareholders on or before September 30, 2023[160](index=160&type=chunk)

Financial Performance - Revenue for 2022 was RMB 26,614 million, a decrease of RMB 7,313 million (approximately 21.5%) from RMB 33,927 million in 2021[8]. - Gross profit for 2022 was RMB 4,099 million, down by RMB 4,371 million (approximately 51.7%) compared to RMB 8,470 million in 2021[8]. - Profit for the year attributable to owners of the Company was RMB 481 million, a decline of RMB 1,674 million (approximately 77.8%) from RMB 2,155 million in 2021[8]. - Earnings per ordinary share decreased to RMB 0.17, down by RMB 0.61 (approximately 78.2%) from RMB 0.78 in 2021[8]. - Total equity for 2022 was RMB 23,213 million, a slight decrease of RMB 391 million (approximately 1.7%) from RMB 23,604 million in 2021[11]. - Total assets decreased to RMB 149,651 million, down by RMB 19,095 million (approximately 11.3%) from RMB 168,746 million in 2021[11]. - Total liabilities decreased to RMB 126,438 million, a reduction of RMB 18,704 million (approximately 12.9%) from RMB 145,142 million in 2021[11]. - The Group's net profit attributable to shareholders was approximately RMB 481 million, with a basic earnings per share of approximately RMB 0.17[155]. - The total revenue from property sales was approximately RMB 25,677 million, representing a decrease of approximately 22% compared to the previous year[158]. - The Group's gross profit decreased from approximately RMB 8,470 million in 2021 to approximately RMB 4,099 million in 2022, with the gross profit margin dropping from approximately 25% to 15%[183]. Market Conditions - The real estate industry in China faced significant challenges in 2022, including plummeting market sales and debt defaults among enterprises, impacting overall market performance[21][23]. - China's GDP for 2022 was RMB 121 trillion, reflecting a growth rate of 3.0% despite challenges from the COVID-19 pandemic and geopolitical conflicts[20][23]. - The macroeconomic environment in China remained stable, with a gradual rise in market confidence as the effects of policies to "stabilize growth" were realized[147]. - The real estate market in China showed signs of stabilization by the end of 2022, with financing activities gradually returning to normal[148]. - Local governments implemented city-specific policies to support rigid demand for residential housing, adhering to the principle of "no speculation on residential properties"[148]. Strategic Initiatives - The Group adopted a prudent investment strategy to ensure long-term stable development while consolidating and restructuring its regional companies in Eastern and Southern China[34]. - The Group plans to focus on first-tier cities and adopt a prudent investment strategy for long-term stable development[172]. - The Group's strategic adjustments included prudent investment in projects to navigate the challenges posed by the COVID-19 pandemic and market adjustments[152]. - The Group focused on destocking, innovative sales and marketing, and strengthening risk control to secure its development amidst market challenges[152]. - The Group implemented a "transparent house" standardization system to enhance customer trust and improve sales performance in a challenging market environment[164]. Project Development - The Company developed 114 projects across 37 cities in 9 provinces, focusing on the Yangtze River Delta and Pan-Pearl River Delta regions[3]. - The Group maintained a land bank of approximately 21 million sq.m. as of December 31, 2022, strategically concentrated in key cities in China, sufficient to support development for the next two to three years[34]. - The Group's development portfolio includes 11 product categories, emphasizing high-quality intelligent communities and sustainable development in project development[37]. - Greenland's projects include mixed-use developments that integrate residential, commercial, and hotel facilities, catering to diverse market needs[63]. - The Group emphasizes the integration of sustainable development concepts throughout the entire project development cycle[37]. Awards and Recognition - The Company won 22 industry awards in 2022, including 17 international awards and 5 domestic awards, reflecting its commitment to enhancing lifestyle amenities[16]. - The Group's corporate image was enhanced through recognition as the "Most Valuable Real Estate and Property Company" at the "7th Zhitong Finance Listed Company Selection"[153]. Sales Performance - In 2022, Greenland HK's contracted sales amounted to approximately RMB 15,726 million, with a total contracted GFA sold of approximately 1,567,717 sq.m., aligning with expectations[30][32]. - The total contracted sales of the Group amounted to approximately RMB 15,726 million, with a total contracted gross floor area (GFA) sold of approximately 1,567,717 square meters[154]. - The average selling price was approximately RMB 10,665 per square meter, reflecting a decrease in market performance[158]. - The total GFA of sold and delivered projects was approximately 2,327,180 square meters, which is a decrease of approximately 13% from the previous year[157]. Cost Management - Operating expenses decreased significantly, with administrative expenses down approximately 35% to RMB 621 million and selling and marketing costs down approximately 19% to RMB 856 million[188]. - Income tax expenses decreased by approximately 61% from RMB 3,855 million in 2021 to approximately RMB 1,489 million in 2022, mainly due to reduced revenue[191]. - Financing costs decreased from approximately RMB 255 million in 2021 to approximately RMB 132 million in 2022[194]. - Fair value loss of investment properties amounted to approximately RMB 273 million in 2022[195].

[Summary of 2022 Annual Results Announcement](index=1&type=section&id=Summary%20of%202022%20Annual%20Results%20Announcement) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Despite challenges in FY2022, Greenland Hong Kong Holdings Limited achieved a profit for the year of **RMB 780 million** and maintained a stable weighted average financing cost of approximately **5.7%** FY2022 Key Financial Highlights | Indicator | Amount (RMB) | | :--- | :--- | | Profit for the year | 780,000,000 | | Profit attributable to owners of the Company | 481,000,000 | | Basic earnings per share | 0.17 | | Total assets | 150,000,000,000 | | Weighted average financing cost | 5.7% | | Net gearing ratio | 48% | [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended December 31, 2022, the Group's total revenue decreased by approximately **22%** to **RMB 26.614 billion**, with profit for the year significantly declining by **68%** to **RMB 780 million** due to reduced property deliveries, lower gross margins, and fair value losses on investment properties Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2022 (RMB thousands) | 2021 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 26,614,317 | 33,926,923 | -21.56% | | Cost of sales | (22,515,753) | (25,457,422) | -11.56% | | Gross profit | 4,098,564 | 8,469,501 | -51.50% | | Profit before tax | 2,269,875 | 6,288,582 | -63.91% | | Income tax expense | (1,489,430) | (3,854,657) | -61.36% | | Profit for the year | 780,445 | 2,433,925 | -67.94% | | Profit attributable to owners of the Company | 480,904 | 2,155,140 | -77.70% | | Basic earnings per share (RMB) | 0.17 | 0.78 | -78.19% | - Profit for the year and profit attributable to owners of the Company decreased by approximately **68%** and **78%** respectively, primarily due to fewer property deliveries, lower gross margins from real estate business, fair value losses on investment properties, and net exchange losses from USD exchange rate fluctuations[216](index=216&type=chunk) [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2022, the Group's total assets decreased by approximately **11.3%** to **RMB 149.651 billion**, with total liabilities at **RMB 126.438 billion** and total equity at **RMB 23.213 billion**, leading to a net gearing ratio of **48%** Summary of Consolidated Statement of Financial Position | Indicator | December 31, 2022 (RMB thousands) | December 31, 2021 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 149,650,517 | 168,745,840 | -11.32% | | Total non-current assets | 21,467,532 | 21,208,825 | 1.22% | | Total current assets | 128,182,985 | 147,537,015 | -13.12% | | Total equity | 23,212,387 | 23,603,492 | -1.66% | | Total liabilities | 126,438,130 | 145,142,348 | -12.89% | | Total current liabilities | 119,088,138 | 132,483,394 | -10.11% | | Total non-current liabilities | 7,349,992 | 12,658,954 | -41.94% | | Net current assets | 9,094,847 | 15,053,621 | -39.59% | - As of December 31, 2022, the net gearing ratio increased to approximately **48%** from **39%** in 2021[218](index=218&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) [General Information](index=6&type=section&id=General%20Information) Greenland Hong Kong Holdings Limited, incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, primarily operates in property development and related services in China, with financial statements presented in RMB - The Company is incorporated in the Cayman Islands and its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[31](index=31&type=chunk) - The Group's principal activities are property development for sale and lease, provision of ancillary services, and hotel operations in China[32](index=32&type=chunk) - The consolidated financial statements are presented in RMB, which is also the Company's functional currency[48](index=48&type=chunk) [Application of Amendments to International Financial Reporting Standards](index=6&type=section&id=Application%20of%20Amendments%20to%20International%20Financial%20Reporting%20Standards) The Group first applied several IFRS amendments this year, with new standards issued but not yet effective, including those on insurance contracts and liability classification, currently being assessed for their full impact - The Group first applied amendments to International Financial Reporting Standards issued by the IASB this year, including amendments to IFRS 3, IAS 16, and IAS 37[33](index=33&type=chunk)[49](index=49&type=chunk) - New and amended IFRSs issued but not yet effective include IFRS 17 (Insurance Contracts), amendments to IAS 1 (Classification of Liabilities as Current or Non-current), and amendments to IAS 12 (Deferred Tax related to Assets and Liabilities arising from a Single Transaction)[35](index=35&type=chunk)[37](index=37&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk)[79](index=79&type=chunk) - Amendments to IAS 12 will narrow the scope of the recognition exemption for deferred tax liabilities and assets, with the Group still assessing the full impact of their application[81](index=81&type=chunk)[82](index=82&type=chunk) [Amendments to IFRS Mandatorily Effective This Year](index=6&type=section&id=Amendments%20to%20IFRS%20Mandatorily%20Effective%20This%20Year) Amendments to IFRS mandatorily effective this year, including those related to the Conceptual Framework, Property, Plant and Equipment, and Onerous Contracts, had no significant impact on the Group's financial position or performance - The application of amended IFRSs this year had no significant impact on the Group's financial position and performance for the current and prior years, and/or the disclosures in these consolidated financial statements[49](index=49&type=chunk) [New and Amended IFRSs Issued But Not Yet Effective](index=7&type=section&id=New%20and%20Amended%20IFRSs%20Issued%20But%20Not%20Yet%20Effective) New and amended IFRSs issued but not yet effective include IFRS 17, amendments to IAS 1 and IAS 12, which the Group has not early adopted and is currently assessing the full impact of IAS 12 amendments - New and amended IFRSs issued but not yet effective include IFRS 17 (Insurance Contracts), amendments to IAS 1 (Classification of Liabilities as Current or Non-current), and amendments to IAS 12 (Deferred Tax related to Assets and Liabilities arising from a Single Transaction)[35](index=35&type=chunk)[37](index=37&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk)[79](index=79&type=chunk) - Amendments to IAS 12 will narrow the scope of the recognition exemption for deferred tax liabilities and assets, with the Group still assessing the full impact of their application[81](index=81&type=chunk)[82](index=82&type=chunk) - The Group has not early applied the new and amended IFRSs that have been issued but are not yet effective[52](index=52&type=chunk) [Basis of Preparation of Consolidated Financial Statements and Principal Accounting Policies](index=8&type=section&id=Basis%20of%20Preparation%20of%20Consolidated%20Financial%20Statements%20and%20Principal%20Accounting%20Policies) The consolidated financial statements are prepared in accordance with IFRS and the Listing Rules, primarily on a historical cost basis, with certain financial instruments and investment properties measured at fair value, and fair value measurements categorized into three levels based on input observability [Basis of Preparation of Consolidated Financial Statements](index=8&type=section&id=Basis%20of%20Preparation%20of%20Consolidated%20Financial%20Statements) The consolidated financial statements are prepared in accordance with IFRS and the Listing Rules, primarily on a historical cost basis, with certain financial instruments and investment properties measured at fair value - The consolidated financial statements are prepared in accordance with International Financial Reporting Standards issued by the IASB and include applicable disclosures required by the Listing Rules of The Stock Exchange of Hong Kong Limited and the Hong Kong Companies Ordinance[83](index=83&type=chunk) - The consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments and investment properties which are measured at fair value at the end of each reporting period[84](index=84&type=chunk) [Fair Value Measurement](index=9&type=section&id=Fair%20Value%20Measurement) Fair value is the price received to sell an asset or paid to transfer a liability in an orderly transaction, with measurements categorized into three levels based on the observability of inputs - Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date[85](index=85&type=chunk) - Fair value measurements are categorized into Level 1, Level 2, or Level 3 based on the observability of the inputs and their overall significance to the fair value measurement[61](index=61&type=chunk)[87](index=87&type=chunk) [Going Concern Assessment](index=8&type=section&id=Going%20Concern%20Assessment) The directors have reviewed the Group's cash flow forecasts for at least the next twelve months and believe the Group has sufficient financial resources to continue operations, thus adopting the going concern basis for the consolidated financial statements - After making enquiries and considering the basis of the Group's cash flow forecasts, the directors believe the Group has sufficient financial resources to continue operations, and thus the consolidated financial statements are prepared on a going concern basis[40](index=40&type=chunk) [Significant Accounting Judgments and Key Sources of Estimation Uncertainty](index=10&type=section&id=Significant%20Accounting%20Judgments%20and%20Key%20Sources%20of%20Estimation%20Uncertainty) The Group makes significant judgments and estimates in preparing financial statements, primarily concerning investment property valuation, PRC Land Appreciation Tax, write-downs of properties under development and completed properties held for sale, and expected credit loss provisions, which may lead to material adjustments in asset and liability carrying amounts - The directors make judgments, estimates, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources when applying the Group's accounting policies[63](index=63&type=chunk) - Key sources of estimation uncertainty include investment property valuation, PRC Land Appreciation Tax, write-downs of properties under development and completed properties held for sale, and expected credit loss provisions[65](index=65&type=chunk)[70](index=70&type=chunk)[90](index=90&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[95](index=95&type=chunk) [Significant Accounting Judgments](index=10&type=section&id=Significant%20Accounting%20Judgments) Significant accounting judgments made by the directors, which have the most material effect on amounts recognized in the consolidated financial statements, include deferred tax on investment properties, assuming future tax outcomes arise from leasing rather than sale - A significant accounting judgment made by the directors in applying the Group's accounting policies that has the most material effect on the amounts recognized in the consolidated financial statements is deferred tax on investment properties, assuming future tax outcomes arise from leasing rather than sale[89](index=89&type=chunk) [Key Sources of Estimation Uncertainty](index=10&type=section&id=Key%20Sources%20of%20Estimation%20Uncertainty) Key sources of estimation uncertainty at the end of the reporting period, which involve significant risk of material adjustments to the carrying amounts of assets and liabilities in the next financial year, include investment property valuation, PRC Land Appreciation Tax, write-downs of properties under development and completed properties held for sale, and expected credit loss provisions - Key assumptions and other major sources of estimation uncertainty at the end of the reporting period involve significant risks that could lead to material adjustments to the carrying amounts of assets and liabilities in the next financial year[90](index=90&type=chunk) [Valuation of Investment Properties](index=10&type=section&id=Valuation%20of%20Investment%20Properties) Investment properties are carried at fair value, with their valuation dependent on key inputs such as estimated costs to complete properties under development, capitalization rates, average market rents, and average market prices, where changes in these assumptions may lead to adjustments in fair value and carrying amounts - Investment properties in the consolidated statement of financial position as of December 31, 2022, are carried at their fair value of approximately **RMB 11.181 billion**[91](index=91&type=chunk) - Valuation depends on several key inputs requiring significant management estimation, including estimated costs to complete investment properties under development, capitalization rates, average unit market rents, and average unit market prices[91](index=91&type=chunk) [PRC Land Appreciation Tax](index=11&type=section&id=PRC%20Land%20Appreciation%20Tax) The Group is subject to PRC Land Appreciation Tax, whose calculation is highly correlated with estimates of land value appreciation and deductible expenses, and final tax outcomes may differ from initially recorded amounts, impacting income tax expense and related provisions - The Group is subject to PRC Land Appreciation Tax, the calculation of which is highly correlated with the appropriateness of the rates used, determined based on land value appreciation[67](index=67&type=chunk)[92](index=92&type=chunk) Land Appreciation Tax Data | Indicator | 2022 (RMB) | 2021 (RMB) | | :--- | :--- | :--- | | Land Appreciation Tax payable | 4,666,612,000 | 4,894,829,000 | | Land Appreciation Tax recognized in the consolidated statement of profit or loss and other comprehensive income | 614,018,000 | 2,154,944,000 | [Write-downs of Properties Under Development and Completed Properties Held for Sale](index=11&type=section&id=Write-downs%20of%20Properties%20Under%20Development%20and%20Completed%20Properties%20Held%20for%20Sale) Management regularly reviews the carrying amounts of properties under development and completed properties held for sale, making write-downs when estimated net realizable value falls below carrying amount, with net realizable value estimates requiring judgment based on market conditions, sales transactions, promotion costs, and completion costs - Management regularly reviews the carrying amounts of properties under development and completed properties held for sale, and write-downs are made when the estimated net realizable value falls below the carrying amount[68](index=68&type=chunk)[93](index=93&type=chunk) - Estimates of net realizable value require judgment by reference to recent sales transactions in nearby locations, marketing costs, and estimated costs to complete the properties[69](index=69&type=chunk)[93](index=93&type=chunk) Write-down Amounts for Properties Under Development and Completed Properties Held for Sale | Year | Write-down Amount (RMB) | | :--- | :--- | | 2022 | 2,306,762,000 | | 2021 | 2,739,017,000 | [Expected Credit Loss Provisions](index=11&type=section&id=Expected%20Credit%20Loss%20Provisions) The Group recognizes expected credit loss provisions for financial assets subject to impairment under IFRS 9, with amounts updated at each reporting date to reflect changes in credit risk, involving significant judgment and estimation for the provision matrix and expected loss rates - The Group recognizes loss allowances for expected credit losses on financial assets subject to impairment under IFRS 9, including trade receivables, other receivables, and other items[70](index=70&type=chunk)[95](index=95&type=chunk) - The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition, requiring significant judgment and estimation[95](index=95&type=chunk) [Revenue](index=12&type=section&id=Revenue) The Group's total revenue in 2022 was approximately **RMB 26.614 billion**, primarily from property sales and construction management services, accounting for approximately **96%** of total revenue, with revenue recognition varying based on service type (at a point in time or over time) Revenue from Contracts with Customers by Type (RMB thousands) | Type of goods or services | 2022 (at a point in time) | 2022 (over time) | 2022 (Total) | | :--- | :--- | :--- | :--- | | Sales of properties and construction management services | 25,677,380 | – | 25,677,380 | | Hotel and ancillary services | – | 61,227 | 61,227 | | Property management and other services | – | 617,241 | 617,241 | | Revenue from contracts with customers | 25,677,380 | 678,468 | 26,355,848 | | Leases - rental income | | | 258,469 | | Total revenue | | | 26,614,317 | - Revenue from property sales and construction management services amounted to approximately **RMB 25.677 billion**, accounting for approximately **96%** of total revenue, a decrease of approximately **22%** compared to the same period last year[164](index=164&type=chunk) [Revenue from Contracts with Customers by Type](index=12&type=section&id=Revenue%20from%20Contracts%20with%20Customers%20by%20Type) The Group's revenue from contracts with customers primarily comprises property sales and construction management services (recognized at a point in time) and hotel, ancillary, and property management services (recognized over time), totaling **RMB 26.614 billion** in 2022 Revenue from Contracts with Customers by Type (RMB thousands) | Type of goods or services | 2022 (at a point in time) | 2022 (over time) | 2022 (Total) | | :--- | :--- | :--- | :--- | | Sales of properties and construction management services | 25,677,380 | – | 25,677,380 | | Hotel and ancillary services | – | 61,227 | 61,227 | | Property management and other services | – | 617,241 | 617,241 | | Revenue from contracts with customers | 25,677,380 | 678,468 | 26,355,848 | | Leases - rental income | | | 258,469 | | Total revenue | | | 26,614,317 | [Performance Obligations in Customer Contracts](index=13&type=section&id=Performance%20Obligations%20in%20Customer%20Contracts) The Group's performance obligations include property sales, construction management, hotel, and property management services, with revenue from property sales recognized when customers obtain control, and revenue from construction management, hotel, and property management services recognized over time using input or output methods - Revenue from sales of residential properties is recognized at the point in time when control of the completed property is transferred to the customer, i.e., when the customer obtains control of the completed property and the Group has an immediate right to payment and may collect the consideration[74](index=74&type=chunk)[100](index=100&type=chunk) - Revenue from construction management services is recognized over time using the input method based on the proportion of construction costs incurred to date relative to the estimated total construction costs[75](index=75&type=chunk)[125](index=125&type=chunk) - Revenue from accommodation services is recognized over time, with progress measured using the output method over the period of occupancy of the accommodation rooms; revenue from property management and other services is also recognized over time, with progress measured using the output method[78](index=78&type=chunk)[104](index=104&type=chunk)[127](index=127&type=chunk) [Transaction Price Allocated to Remaining Performance Obligations in Customer Contracts](index=14&type=section&id=Transaction%20Price%20Allocated%20to%20Remaining%20Performance%20Obligations%20in%20Customer%20Contracts) As of December 31, 2022, the total transaction price allocated to remaining performance obligations for property sales was **RMB 67.127 billion**, with **RMB 33.777 billion** expected to be recognized within one year Transaction Price Allocated to Remaining Performance Obligations in Customer Contracts (RMB thousands) | Period | 2022 | 2021 | | :--- | :--- | :--- | | Within one year | 33,777,364 | 33,813,210 | | More than one year but within two years | 23,657,441 | 35,238,739 | | More than two years | 9,692,469 | 12,828,043 | | Total | 67,127,274 | 81,879,992 | - The duration of hotel and other ancillary services, as well as property management and other services, is all one year or less, thus no transaction price allocated to these unfulfilled contracts is disclosed[127](index=127&type=chunk) [Leases](index=14&type=section&id=Leases) The Group's rental income primarily derives from fixed lease payments under operating leases, amounting to **RMB 258.469 million** in 2022, a slight decrease from 2021 Operating Lease Income (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Fixed lease payments | 258,469 | 263,743 | [Other Income](index=15&type=section&id=Other%20Income) The Group's total other income in 2022 amounted to **RMB 46.64 million**, primarily comprising forfeited deposits from customers, government grants, and other miscellaneous income Other Income (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Forfeited deposits from customers | 19,282 | 18,815 | | Government grants | 18,933 | 32,519 | | Others | 8,425 | 11,255 | | Total | 46,640 | 62,589 | - Government grants represent preferential subsidies received from local authorities in China for the Group's business activities in the region, with no specific conditions attached to these grants[130](index=130&type=chunk) [Other Gains and Losses](index=15&type=section&id=Other%20Gains%20and%20Losses) The Group's other gains and losses shifted from a gain of **RMB 267 million** in 2021 to a gain of **RMB 24.618 million** in 2022, primarily influenced by net exchange losses and net gains on disposal of assets classified as held for sale and property, plant and equipment Other Gains and Losses (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Net exchange (losses) gains | (194,534) | 267,485 | | Fair value change losses from financial assets at fair value through profit or loss | – | (440) | | Net gains on disposal of assets classified as held for sale and property, plant and equipment | 219,152 | 37 | | Total | 24,618 | 267,082 | - Other income, other gains and losses, and other operating expenses decreased from a gain of approximately **RMB 82 million** in 2021 to a loss of approximately **RMB 71 million** in 2022, primarily due to the net effect of gains from the disposal of the Huangshan project and exchange losses during the review period[8](index=8&type=chunk) [Finance Costs](index=16&type=section&id=Finance%20Costs) The Group's finance costs decreased by approximately **48.2%** to **RMB 132 million** in 2022 from **RMB 255 million** in 2021, primarily comprising interest expenses on bonds, interest-bearing loans, lease liabilities, and contract liabilities, net of capitalized portions Finance Costs (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Interest expense on bonds | 42,940 | 122,911 | | Interest expense on interest-bearing loans | 882,086 | 1,176,930 | | Interest expense on lease liabilities | 33,191 | 26,067 | | Interest expense on contract liabilities | 311,604 | 461,499 | | Less: capitalized bond interest | (30,144) | (87,226) | | Less: capitalized interest on interest-bearing loans | (795,813) | (983,912) | | Less: capitalized interest on contract liabilities | (311,604) | (461,499) | | Total | 132,260 | 254,770 | - Finance costs decreased from approximately **RMB 255 million** in 2021 to approximately **RMB 132 million** in 2022[215](index=215&type=chunk) - During the year, capitalized interest expenses were derived from the general borrowing pool and calculated by applying a capitalization rate of **6.07%** per annum (2021: **5.7%**) to qualifying asset expenditures[133](index=133&type=chunk) [Income Tax Expense](index=16&type=section&id=Income%20Tax%20Expense) The Group's income tax expense decreased significantly by approximately **61%** to **RMB 1.489 billion** in 2022 from **RMB 3.855 billion** in 2021, primarily due to reduced revenue, with the expense mainly comprising PRC corporate income tax and PRC Land Appreciation Tax Income Tax Expense (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Current tax - PRC corporate income tax | 981,248 | 1,910,255 | | Current tax - PRC Land Appreciation Tax | 614,018 | 2,154,944 | | Under-provision (over-provision) in prior years - PRC corporate income tax | 9,393 | (763) | | Deferred tax | (115,229) | (209,779) | | Total | 1,489,430 | 3,854,657 | - Income tax expense decreased by approximately **61%** from approximately **RMB 3.855 billion** in 2021 to approximately **RMB 1.489 billion** in 2022, primarily due to reduced revenue in 2022[191](index=191&type=chunk)[216](index=216&type=chunk) - The corporate income tax rate for the Group's PRC subsidiaries is **25%**[135](index=135&type=chunk) [Details of Income Tax Expense](index=16&type=section&id=Details%20of%20Income%20Tax%20Expense) The Group's 2022 income tax expense, totaling **RMB 1.489 billion**, primarily comprised PRC corporate income tax and PRC Land Appreciation Tax, representing a significant decrease from 2021, with no Hong Kong profits tax provision made as income is not sourced from Hong Kong Details of Income Tax Expense (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Current tax - PRC corporate income tax | 981,248 | 1,910,255 | | Current tax - PRC Land Appreciation Tax | 614,018 | 2,154,944 | | Under-provision (over-provision) in prior years - PRC corporate income tax | 9,393 | (763) | | Deferred tax | (115,229) | (209,779) | | Total | 1,489,430 | 3,854,657 | - No Hong Kong profits tax provision has been made as the Group's income is neither derived from nor arises in Hong Kong[134](index=134&type=chunk) [Land Appreciation Tax](index=17&type=section&id=Land%20Appreciation%20Tax) Under PRC regulations, all income from the sale or transfer of state-owned land use rights, buildings, and ancillary facilities in China is subject to Land Appreciation Tax at progressive rates from **30%** to **60%** on the appreciation amount, with exemptions for ordinary residential properties under specific conditions - All income from the sale or transfer of state-owned land use rights, buildings, and ancillary facilities in China is subject to Land Appreciation Tax at progressive rates ranging from **30%** to **60%** on the appreciation amount[114](index=114&type=chunk)[137](index=137&type=chunk) - Ordinary residential properties may be exempt if the appreciation amount from property sales does not exceed **20%** of the sum of deductible items[137](index=137&type=chunk) [Reconciliation of Income Tax Expense to Profit Before Tax for the Year](index=17&type=section&id=Reconciliation%20of%20Income%20Tax%20Expense%20to%20Profit%20Before%20Tax%20for%20the%20Year) The reconciliation of income tax expense to profit before tax for 2022 shows a tax at the PRC corporate income tax rate of **25%** amounting to **RMB 567 million**, with the final income tax expense of **RMB 1.489 billion** primarily influenced by PRC Land Appreciation Tax provisions and the tax effect of unrecognized tax losses Reconciliation of Income Tax Expense to Profit Before Tax for the Year (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Profit before tax | 2,269,875 | 6,288,582 | | Tax at PRC corporate income tax rate of 25% | 567,469 | 1,572,146 | | PRC Land Appreciation Tax provision for the year | 614,018 | 2,154,944 | | Income tax expense for the year | 1,489,430 | 3,854,657 | [Profit for the Year](index=18&type=section&id=Profit%20for%20the%20Year) The Group's profit for the year in 2022 was approximately **RMB 780 million**, a significant decrease from **RMB 2.434 billion** in 2021, achieved after deducting costs of properties sold, staff costs, auditor's remuneration, depreciation and amortization, and write-downs of properties under development and completed properties held for sale Key Deductions/Additions to Profit for the Year (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Cost of properties sold | 21,657,937 | 24,151,999 | | Staff costs (net of capitalization) | 435,965 | 806,533 | | Auditor's remuneration (total) | 5,780 | 8,000 | | Depreciation of property, plant and equipment | 57,246 | 86,980 | | Write-downs of properties under development and completed properties held for sale | 193,347 | 350,309 | | Gross rental income from investment properties | 258,469 | 263,743 | [Dividends](index=19&type=section&id=Dividends) The Board of Directors resolved not to recommend any dividend payment for the year ended December 31, 2022, following a final dividend of **HKD 0.3** per share paid in 2021 - The Board of Directors has resolved not to recommend the payment of any dividend for the year ended December 31, 2022[118](index=118&type=chunk)[223](index=223&type=chunk) Dividends Recognized as Distributions to Ordinary Shareholders (RMB thousands) | Year | Dividend Amount | | :--- | :--- | | 2022 | No dividend proposed | | 2021 (HKD 0.3 per share) | 716,277 | [Earnings Per Share](index=19&type=section&id=Earnings%20Per%20Share) Basic earnings per share attributable to owners of the Company decreased significantly to **RMB 0.17** in 2022 from **RMB 0.78** in 2021, calculated by dividing profit for the year by the weighted average number of ordinary shares, with no diluted earnings per share presented as no potential ordinary shares were issued in either year Calculation of Basic Earnings Per Share (RMB thousands) | Indicator | 2022 | 2021 | | :--- | :--- | :--- | | Profit for the year attributable to owners of the Company | 480,904 | 2,155,140 | | Weighted average number of ordinary shares (thousands) | 2,769,188 | 2,769,188 | | Basic earnings per share (RMB) | 0.17 | 0.78 | - Diluted earnings per share for both years are not presented as no potential ordinary shares were issued in either year[119](index=119&type=chunk) [Trade and Other Receivables, Deposits, and Prepayments](index=20&type=section&id=Trade%20and%20Other%20Receivables%2C%20Deposits%2C%20and%20Prepayments) As of December 31, 2022, the Group's total trade and other receivables, deposits, and prepayments decreased to **RMB 24.885 billion** from **RMB 28.037 billion** in 2021, with trade receivables primarily arising from property sales and leases, including some overdue amounts Trade and Other Receivables, Deposits, and Prepayments (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Trade receivables (net of credit loss allowance) | 401,785 | 419,947 | | Other receivables (net of credit loss allowance) | 20,009,887 | 20,663,466 | | Prepayments to independent third-party contractors | 1,199,608 | 1,705,055 | | Prepayments to related parties | 317,029 | 179,871 | | Deposits paid for acquisition of land for development | 465,120 | 1,492,145 | | Other prepaid taxes | 2,492,043 | 3,576,691 | | Total | 24,885,472 | 28,037,175 | Ageing Analysis of Trade Receivables (net of credit loss allowance) (RMB thousands) | Ageing | 2022 | 2021 | | :--- | :--- | :--- | | 0–90 days | 141,556 | 99,235 | | 91–180 days | 5,084 | 66,828 | | 181–365 days | 25,415 | 9,050 | | Over 365 days | 229,730 | 244,834 | | Total | 401,785 | 419,947 | - As of December 31, 2022, the Group's trade receivables balance included overdue trade receivables with a gross carrying amount of **RMB 104.791 million** at the reporting date[170](index=170&type=chunk) [Trade and Other Payables](index=21&type=section&id=Trade%20and%20Other%20Payables) As of December 31, 2022, the Group's total trade and other payables decreased to **RMB 56.104 billion** from **RMB 59.201 billion** in 2021, with trade payables primarily due to independent third parties and other payables including non-trade amounts due to related parties and interest payable Trade and Other Payables (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Trade payables - due to related parties | 1,595,105 | 1,836,184 | | Trade payables - due to non-controlling shareholders | 3,202 | 792 | | Trade payables - due to independent third parties | 25,734,102 | 26,830,526 | | Non-trade amounts due to related parties | 7,250,866 | 6,959,069 | | Other taxes payable | 1,787,413 | 1,543,800 | | Interest payable | 198,776 | 141,139 | | Consideration payable to Greenland Holdings | 953,759 | 953,759 | | Amounts due to non-controlling shareholders | 5,264,529 | 6,163,770 | | Other payables and accrued expenses | 13,315,977 | 14,772,158 | | Total | 56,103,729 | 59,201,197 | Ageing Analysis of Trade Payables (RMB thousands) | Ageing | 2022 | 2021 | | :--- | :--- | :--- | | 0–90 days | 18,826,085 | 22,062,664 | | 91–180 days | 578,035 | 1,831,817 | | 181–365 days | 2,290,710 | 1,710,483 | | Over 365 days | 5,637,579 | 3,062,538 | | Total | 27,332,409 | 28,667,502 | - Trade and other payables are primarily unsecured and repayable on demand[171](index=171&type=chunk) [Bonds](index=22&type=section&id=Bonds) The Group fully repaid its Series A bonds with a total principal amount of **USD 150 million** and an interest rate of **9.625%** on June 3, 2022, resulting in no outstanding Series A bonds as of December 31, 2022 - The Company fully redeemed all outstanding Series A bonds on June 3, 2022[149](index=149&type=chunk)[226](index=226&type=chunk) Bonds Status (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Series A bonds | – | 952,787 | [Perpetual Securities](index=22&type=section&id=Perpetual%20Securities) The Group issued senior perpetual capital securities with a total principal amount of **USD 120 million**, granting holders the right to receive distributions, which are classified as equity, with **USD 12.252 million** (approximately **RMB 82.343 million**) in distributions accrued and paid in 2022 - The Group issued USD-denominated senior perpetual capital securities with a total principal amount of **USD 120 million**[150](index=150&type=chunk) - The perpetual securities only impose a contractual obligation on the Group to repay the principal or pay any distributions at the Group's discretion under certain circumstances, thus the entire instrument is classified as equity[173](index=173&type=chunk) Perpetual Securities Distributions (USD/RMB thousands) | Year | Distribution Amount (USD) | Distribution Amount (RMB thousands) | | :--- | :--- | :--- | | 2022 | 12,252,000 | 82,343 | | 2021 | 9,132,000 | 58,697 | [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=23&type=section&id=Business%20Review) In 2022, despite unprecedented challenges in China's real estate sector, the Group adjusted its strategy to focus on existing asset monetization, innovative marketing, and product design, achieving contract sales of approximately **RMB 15.726 billion** and holding approximately **21 million square meters** of land reserves - In 2022, China's real estate industry faced unprecedented challenges, but regulatory authorities introduced multiple policies to stabilize the market, particularly the 'Financial 16 Measures' and 'CSRC New 5 Measures', supporting enterprise financing through credit, bond, and equity channels[154](index=154&type=chunk) - The Group timely adjusted its strategy, focusing on the monetization of existing assets, innovative marketing approaches, prudent project investment, and continuous strengthening of risk management[178](index=178&type=chunk) 2022 Contract Sales and Delivery Overview | Indicator | Amount/Quantity | | :--- | :--- | | Contract sales amount | Approximately RMB 15,726,000,000 | | Contract sales area | Approximately 1,567,717 square meters | | Total GFA of projects sold and delivered | Approximately 2,327,180 square meters | | Average selling price | Approximately RMB 10,665 per square meter | | Property sales revenue | Approximately RMB 25,677,000,000 | [Macroeconomic and Industry Environment](index=23&type=section&id=Macroeconomic%20and%20Industry%20Environment) In 2022, global economic recovery slowed, while mainland China's economy developed under pressure, with the real estate sector facing challenges but supported by government policies like the 'Financial 16 Measures' and 'CSRC New 5 Measures' to stabilize the market and facilitate corporate financing - In 2022, global economic recovery significantly slowed due to factors such as recurring COVID-19 outbreaks, the Russia-Ukraine conflict, and high global inflation[176](index=176&type=chunk) - China's real estate industry faced unprecedented challenges, but local governments adhered to the principle that 'housing is for living, not for speculation', implementing city-specific policies to support rigid and improved housing demand[154](index=154&type=chunk) - Regulatory authorities introduced multiple policies to stabilize the real estate market, particularly the 'Financial 16 Measures' and 'CSRC New 5 Measures', supporting enterprise financing through credit, bond, and equity channels[154](index=154&type=chunk) [Performance and Product Strength](index=24&type=section&id=Performance%20and%20Product%20Strength) Greenland Hong Kong garnered **22 industry awards** for product design in 2022, including **17 international** and **5 domestic awards**, and was honored as the 'Most Valuable Real Estate and Property Company', actively enhancing its corporate image - In 2022, Greenland Hong Kong's product design received a total of **22 industry awards**, including **17 international** and **5 domestic awards**[155](index=155&type=chunk) - Greenland Hong Kong was honored with the 'Most Valuable Real Estate and Property Company' award[155](index=155&type=chunk) [Property Sales and Delivery](index=25&type=section&id=Property%20Sales%20and%20Delivery) During the review period, the Group sold and delivered properties with a total gross floor area of approximately **2.327 million square meters**, a decrease of approximately **13%** year-on-year, generating property sales revenue of approximately **RMB 25.677 billion**, a **22%** decrease, with major deliveries in cities like Kunming, Yangzhou, Suzhou, and Shenzhen - During the review period, the total gross floor area of projects sold and delivered was approximately **2,327,180 square meters**, a decrease of approximately **13%** compared to the same period last year[180](index=180&type=chunk) - Property sales revenue was approximately **RMB 25.677 billion**, a decrease of approximately **22%** compared to the same period last year[180](index=180&type=chunk) 2022 Overview of Property Sales and Delivery in Major Cities | City | Approximate GFA Sold and Delivered (sqm) | Approximate Recognized Sales Amount (RMB thousands) | Average Selling Price (RMB/sqm) | | :--- | :--- | :--- | :--- | | Kunming | 285,500 | 3,502,873 | 12,269 | | Yangzhou | 127,007 | 2,215,434 | 17,443 | | Suzhou | 105,496 | 2,097,455 | 19,882 | | Shenzhen | 43,323 | 1,816,252 | 41,924 | | Guangzhou | 110,047 | 1,805,684 | 16,408 | | Nantong | 106,467 | 1,409,160 | 13,236 | | Changzhou | 105,589 | 1,207,125 | 11,432 | | Foshan | 122,637 | 1,172,484 | 9,561 | | Haikou | 96,621 | 1,132,359 | 11,720 | | Xuancheng | 168,902 | 1,126,323 | 6,669 | | Yancheng | 122,977 | 1,023,793 | 8,325 | | Nanning | 201,547 | 917,303 | 4,551 | | Zhenjiang | 78,409 | 746,560 | 9,521 | | Wuxi | 63,674 | 717,874 | 11,274 | | Shengzhou | 81,546 | 578,814 | 7,098 | | Zhanjiang | 65,532 | 557,507 | 8,507 | | Jieyang | 76,015 | 390,207 | 5,133 | | Qingyuan | 55,545 | 385,546 | 6,941 | | Yangjiang | 66,955 | 376,885 | 5,629 | | Jiangmen | 53,320 | 375,947 | 7,051 | | Jiaxing | 49,404 | 304,413 | 6,162 | | Qinzhou | 61,958 | 283,051 | 4,568 | | Yiwu | 7,544 | 264,665 | 35,083 | | Maoming | 43,347 | 234,148 | 5,402 | | Others | 27,818 | 176,990 | 6,362 | | Subtotal | 2,327,180 | 24,818,852 | 10,665 | | Parking spaces | 858,528 | 25,677,380 | | [Contract Sales and Operational Capability](index=26&type=section&id=Contract%20Sales%20and%20Operational%20Capability) The Group's contract sales amounted to approximately **RMB 15.726 billion** in 2022, primarily from key regions like Guangdong, Jiangsu, Yunnan, and Zhejiang, with the company focusing on core cities in the Yangtze River Delta and Greater Bay Area, and implementing a 'Transparent House' standardized system and new media marketing to counter market downturns - During the review period, the Group's contract sales amounted to approximately **RMB 15.726 billion**, corresponding to a contract sales area of approximately **1,567,717 square meters**[3](index=3&type=chunk) - The main sources of the Group's contract sales were key regions such as Guangdong, Jiangsu, Yunnan, and Zhejiang, accounting for approximately **31%**, **25%**, **14%**, and **12%** of contract sales respectively[3](index=3&type=chunk) - In 2022, the Group established the 'Transparent House' standardized system and actively explored new media channels, building a Douyin platform matrix, coordinating short video layouts, and organizing periodic live broadcasts[160](index=160&type=chunk)[208](index=208&type=chunk) [Long-term Rental Business](index=27&type=section&id=Long-term%20Rental%20Business) The Group successfully established its long-term rental apartment brand 'Qingshe', providing living spaces and social atmospheres for urban youth, with six 'Qingshe' stores operating stably and achieving an average occupancy rate exceeding **90%**, targeting first-tier and new first-tier cities for future expansion - The Group successfully established its long-term rental apartment brand 'Qingshe', dedicated to providing quality, comfortable, and fashionable living spaces and social atmospheres for urban youth[209](index=209&type=chunk) - As of the date of this preliminary announcement, Greenland Hong Kong's six 'Qingshe' stores have shown stable and improving overall operations, with an average occupancy rate exceeding **90%**[209](index=209&type=chunk) - In the future, the 'Qingshe' brand will primarily target first-tier and new first-tier cities, with a focus on Shanghai, Beijing, Guangzhou, Shenzhen, and Nanjing[209](index=209&type=chunk) [Land Reserve](index=27&type=section&id=Land%20Reserve) As of December 31, 2022, the Group possessed a substantial land reserve of approximately **21 million square meters**, strategically concentrated in key core cities with population inflows in China, sufficient to support 2 to 3 years of future development, with continued focus on the Yangtze River Delta and Greater Bay Area, particularly first-tier cities - As of December 31, 2022, the Group held a substantial land reserve of approximately **21 million square meters**, strategically concentrated in key core cities with population inflows in China[4](index=4&type=chunk)[184](index=184&type=chunk) - The land reserve is sufficient to support the Group's development needs for the next **2 to 3 years**[4](index=4&type=chunk) - In the future, the Group will continue to deepen its presence in the Yangtze River Delta and Greater Bay Area, focusing on first-tier cities, and will adopt a prudent investment strategy[4](index=4&type=chunk) [Outlook](index=28&type=section&id=Outlook) The Central Economic Work Conference emphasized 'ensuring housing delivery, people's livelihoods, and stability' and supporting housing demand, leading the Group to believe that 2023 regulatory policies will align with economic recovery, enabling the real estate market to gradually repair and rebound, with Greenland Hong Kong committed to long-term development, enhancing quality, focusing on green development, and promoting intelligent and information-based management - The Central Economic Work Conference's deployment on real estate began with 'ensuring stable development of the real estate market', explicitly proposing 'ensuring housing delivery, people's livelihoods, and stability', effectively preventing and resolving risks for high-quality leading real estate enterprises, improving asset-liability conditions, and supporting rigid and improved housing demand[185](index=185&type=chunk)[210](index=210&type=chunk) - The Group believes that 2023 regulatory policies will actively align with economic recovery to achieve the goal of 'stabilizing real estate'; the real estate market is poised for gradual repair and will progressively rebound[185](index=185&type=chunk) - In the future, Greenland Hong Kong will firmly seize the opportunity of a gradually improving market environment, comprehensively enhance development quality, focus on green development, integrate sustainable development concepts throughout the entire project development cycle, develop green buildings, and promote intelligent and information-based management[5](index=5&type=chunk) [Financial Performance](index=29&type=section&id=Financial%20Performance) The Group's total revenue decreased by **22%** to **RMB 26.614 billion** in 2022, with gross profit declining by **51.5%** to **RMB 4.099 billion** and gross margin falling from **25%** to **15%**, while operating expenses were effectively controlled, and profit for the year and profit attributable to owners of the Company decreased by **68%** and **78%** respectively 2022 Financial Performance Overview (RMB thousands) | Indicator | 2022 | 2021 | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Total revenue | 26,614,317 | 33,926,923 | (7,312,606) | | Revenue from property sales and construction management services | 25,677,380 | 33,017,756 | (7,340,376) | | Gross profit | 4,099,000 | 8,470,000 | -4,371,000 | | Gross margin | 15% | 25% | -10% | | Administrative expenses | 621,000 | 954,000 | -333,000 | | Selling and marketing costs | 856,000 | 1,058,000 | -202,000 | | Finance costs | 132,000 | 255,000 | -123,000 | | Income tax expense | 1,489,000 | 3,855,000 | -2,366,000 | | Profit for the year | 780,000 | 2,434,000 | -1,654,000 | | Profit attributable to owners of the Company | 481,000 | 2,155,000 | -1,674,000 | [Revenue](index=29&type=section&id=Revenue) The Group's total revenue in 2022 was approximately **RMB 26.614 billion**, a **22%** decrease from 2021, primarily due to reduced recognized area of delivered properties, with property sales and construction management services remaining the core business, accounting for approximately **96%** of total revenue - The Group's total revenue in 2022 was approximately **RMB 26.614 billion**, a decrease of approximately **22%** from approximately **RMB 33.927 billion** in 2021, primarily due to a reduction in the recognized area of properties delivered by the Group[6](index=6&type=chunk)[186](index=186&type=chunk) - Revenue from property sales and construction management services amounted to approximately **RMB 25.677 billion**, accounting for approximately **96%** of total revenue, a decrease of approximately **22%** compared to the same period last year[164](index=164&type=chunk) [Cost of Sales](index=29&type=section&id=Cost%20of%20Sales) The Group's cost of sales in 2022 was approximately **RMB 22.516 billion**, a decrease of approximately **12%** from 2021, primarily comprising land costs, construction costs, capitalized finance costs, and sales taxes - Cost of sales was approximately **RMB 22.516 billion** in 2022, compared to approximately **RMB 25.457 billion** in 2021, representing a decrease of approximately **12%**[7](index=7&type=chunk)[187](index=187&type=chunk) - Cost of sales primarily includes land costs, construction costs, capitalized finance costs, and sales taxes[7](index=7&type=chunk) [Gross Profit and Gross Margin](index=29&type=section&id=Gross%20Profit%20and%20Gross%20Margin) The Group's gross profit decreased from approximately **RMB 8.47 billion** in 2021 to approximately **RMB 4.099 billion** in 2022, primarily due to a weak real estate market and a different mix of delivered properties, with the gross margin declining from approximately **25%** to **15%** - Gross profit decreased from approximately **RMB 8.47 billion** in 2021 to approximately **RMB 4.099 billion** in 2022, primarily due to the overall weak real estate market and a different mix of properties delivered by the Group in 2022 compared to 2021[165](index=165&type=chunk)[213](index=213&type=chunk) - The gross margin decreased from approximately **25%** in 2021 to approximately **15%** in 2022[213](index=213&type=chunk) [Other Income, Other Gains and Losses, and Other Operating Expenses](index=29&type=section&id=Other%20Income%2C%20Other%20Gains%20and%20Losses%2C%20and%20Other%20Operating%20Expenses) The Group's other income, other gains and losses, and other operating expenses shifted from a gain of approximately **RMB 82 million** in 2021 to a loss of approximately **RMB 71 million** in 2022, primarily due to the net effect of gains from the disposal of the Huangshan project and exchange losses during the review period - Other income, other gains and losses, and other operating expenses decreased from a gain of approximately **RMB 82 million** in 2021 to a loss of approximately **RMB 71 million** in 2022, primarily due to the net effect of gains from the disposal of the Huangshan project and exchange losses during the review period[8](index=8&type=chunk)[188](index=188&type=chunk) [Operating Expenses](index=30&type=section&id=Operating%20Expenses) Through effective management of expenditures, the Group's administrative expenses and selling and marketing costs decreased to approximately **RMB 621 million** and **RMB 856 million** respectively, representing reductions of approximately **35%** and **19%** compared to the same period in 2021 - Due to effective management of the Group's expenditures, administrative expenses and selling and marketing costs decreased to approximately **RMB 621 million** and approximately **RMB 856 million** respectively[189](index=189&type=chunk)[214](index=214&type=chunk) - Administrative expenses and selling and marketing costs decreased by approximately **35%** and **19%** respectively compared to the same period in 2021[189](index=189&type=chunk) [Investment Properties](index=30&type=section&id=Investment%20Properties) As of December 31, 2022, the Group held **25 investment properties** with a total gross floor area of approximately **1.061 million square meters**, recording a fair value loss of approximately **RMB 273 million** in 2022 due to market fluctuations - As of December 31, 2022, the Group had **25 investment properties** with a total gross floor area of approximately **1,060,944 square meters**[9](index=9&type=chunk)[190](index=190&type=chunk) - The Group recorded a fair value loss on investment properties of approximately **RMB 273 million** in 2022 due to market fluctuations[9](index=9&type=chunk) [Finance Costs](index=30&type=section&id=Finance%20Costs) The Group's finance costs decreased from approximately **RMB 255 million** in 2021 to approximately **RMB 132 million** in 2022, reflecting effective management of expenditure - Finance costs decreased from approximately **RMB 255 million** in 2021 to approximately **RMB 132 million** in 2022[215](index=215&type=chunk) [Income Tax Expense](index=30&type=section&id=Income%20Tax%20Expense) The Group's income tax expense decreased by approximately **61%** from approximately **RMB 3.855 billion** in 2021 to approximately **RMB 1.489 billion** in 2022, primarily due to reduced revenue in 2022 - Income tax expense decreased by approximately **61%** from approximately **RMB 3.855 billion** in 2021 to approximately **RMB 1.489 billion** in 2022, primarily due to reduced revenue in 2022[191](index=191&type=chunk)[216](index=216&type=chunk) [Profit for the Year and Attributable to Owners of the Company](index=30&type=section&id=Profit%20for%20the%20Year%20and%20Attributable%20to%20Owners%20of%20the%20Company) Profit for the year and profit attributable to owners of the Company decreased to approximately **RMB 780 million** and **RMB 481 million** respectively, representing reductions of approximately **68%** and **78%** from 2021, primarily due to fewer property deliveries, lower gross margins, fair value losses on investment properties, and net exchange losses - Profit for the year and profit attributable to owners of the Company decreased to approximately **RMB 780 million** and **RMB 481 million** respectively, representing reductions of approximately **68%** and **78%** from approximately **RMB 2.434 billion** and **RMB 2.155 billion** in 2021[216](index=216&type=chunk) - This was primarily due to (i) fewer property deliveries and lower gross margins from real estate business, (ii) fair value losses on investment properties, and (iii) net exchange losses resulting from USD exchange rate fluctuations[216](index=216&type=chunk) [Financial Position](index=30&type=section&id=Financial%20Position) As of December 31, 2022, the Group's total equity was approximately **RMB 23.213 billion**, total assets approximately **RMB 149.651 billion**, and total liabilities approximately **RMB 126.438 billion** - As of December 31, 2022, the Group's total equity was approximately **RMB 23.213 billion** (December 31, 2021: approximately **RMB 23.604 billion**)[11](index=11&type=chunk)[192](index=192&type=chunk) - Total assets were approximately **RMB 149.651 billion** (December 31, 2021: approximately **RMB 168.746 billion**), while total liabilities were approximately **RMB 126.438 billion** (December 31, 2021: approximately **RMB 145.142 billion**)[11](index=11&type=chunk) [Liquidity and Financial Resources](index=31&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's liquidity primarily stems from business operations, bank borrowings, and cash proceeds, with a net gearing ratio of approximately **48%** and total cash and cash equivalents of approximately **RMB 4.552 billion** as of December 31, 2022, while treasury policies are in place to control funding costs and monitor foreign exchange and interest rate risks - The Group's business operations, bank borrowings, and cash proceeds raised are its primary sources of liquidity, applied to business operations and investment development projects[12](index=12&type=chunk)[193](index=193&type=chunk) - As of December 31, 2022, the net gearing ratio was approximately **48%** (December 31, 2021: **39%**)[218](index=218&type=chunk) - Total cash and cash equivalents (including restricted cash) amounted to approximately **RMB 4.552 billion**, total borrowings approximately **RMB 15.722 billion**, and equity base approximately **RMB 23.213 billion**[218](index=218&type=chunk) [Sources and Uses of Liquidity](index=31&type=section&id=Sources%20and%20Uses%20of%20Liquidity) The Group's liquidity primarily originates from business operations, bank borrowings, and cash proceeds, which are utilized for business operations and investment development projects, resulting in net current assets of approximately **RMB 9.095 billion** as of December 31, 2022 - The Group's business operations, bank borrowings, and cash proceeds raised are its primary sources of liquidity, applied to business operations and investment development projects[12](index=12&type=chunk)[193](index=193&type=chunk) - As of December 31, 2022, the Group had net current assets of approximately **RMB 9.095 billion**[83](index=83&type=chunk) [Treasury Policy](index=31&type=section&id=Treasury%20Policy) The Group has established a treasury policy aimed at strengthening control over treasury functions and reducing funding costs, with all funding terms for business operations centrally reviewed and supervised at the Group level - The Group has established a treasury policy aimed at strengthening control over treasury functions and reducing funding costs[194](index=194&type=chunk)[195](index=195&type=chunk) - When providing funding for business operations, the terms of funding are subject to central review and supervision at the Group level[195](index=195&type=chunk) [Foreign Exchange Risk](index=31&type=section&id=Foreign%20Exchange%20Risk) The Group's business transactions are primarily denominated in RMB, limiting foreign exchange risk except for capital market fundraising, and the Group continuously monitors RMB against USD exchange rate movements, implementing hedging measures as appropriate - The Group's business transactions are primarily denominated in RMB, with limited foreign exchange risk except for fundraising activities in capital markets[13](index=13&type=chunk) - The Group has borrowings denominated in USD and HKD, but operating revenue is primarily denominated in RMB; the Group will continue to monitor the RMB against USD exchange rate movements and implement appropriate hedging measures for foreign exchange risk[219](index=219&type=chunk) [Interest Rate Risk](index=31&type=section&id=Interest%20Rate%20Risk) To minimize interest rate risk, the Group continues to closely monitor and manage its loan portfolio through existing agreed interest rates that fluctuate with market and bank rates - To minimize interest rate risk, the Group continues to closely monitor and manage its loan portfolio through existing agreed interest rates that fluctuate with market and bank rates[14](index=14&type=chunk) [Credit Policy](index=31&type=section&id=Credit%20Policy) Trade receivables primarily arise from property sales and leases, collected according to terms in relevant agreements, with the Group generally not offering credit periods for property sales, except for major customers under specific approvals - Trade receivables primarily arise from property sales and leases, collected according to the terms stipulated in relevant sale and purchase agreements and lease agreements[196](index=196&type=chunk)[220](index=220&type=chunk) - The Group generally does not provide credit periods for property sales to customers, except for major customers under specific approvals[170](index=170&type=chunk) [Pledge of Assets](index=31&type=section&id=Pledge%20of%20Assets) In 2022, the Group pledged properties, land use rights, and time deposits with a carrying amount of approximately **RMB 29.1 billion** to secure bank credit, with total outstanding secured loan balances of approximately **RMB 14.5 billion** - In 2022, the Group pledged properties, land use rights, and time deposits with a carrying amount of approximately **RMB 29.1 billion** to secure bank credit[220](index=220&type=chunk) - The total outstanding secured loan balances amounted to approximately **RMB 14.5 billion**[220](index=220&type=chunk) [Other Information](index=32&type=section&id=Other%20Information) As of December 31, 2022, the Group had capital commitments of approximately **RMB 19.279 billion** for property development, employed **3,014 staff** with performance-linked incentives, complied with corporate governance code provisions except for the combined roles of Chairman and CEO and the Chairman's absence from the AGM, and had no significant post-reporting period events, with annual results reviewed by the audit committee Capital Commitments (RMB thousands) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Property development business - contracted but not provided for | 19,278,666 | 26,779,952 | - As of December 31, 2022, the Group employed a total of **3,014 staff** (2021: **4,007 staff**), with **1,549 employees** working in the property development business[199](index=199&type=chunk) - For the year ended December 31, 2022, the Company complied with the code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules, except for code provisions C.2.1 and F.2.2, where Mr. Chen Jun held both the roles of Chairman and Chief Executive Officer, and the Chairman did not attend the Annual General Meeting[201](index=201&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk) [Financial Guarantees](index=32&type=section&id=Financial%20Guarantees) As of December 31, 2022, the Group provided guarantees to banks for mortgages amounting to **RMB 25.599 billion** Financial Guarantees (RMB thousands) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Mortgages | 25,598,816 | 29,661,792 | [Capital Commitments](index=32&type=section&id=Capital%20Commitments) As of December 31, 2022, the Group had capital commitments contracted but not provided for, related to property development business, amounting to approximately **RMB 19.279 billion** Capital Commitments (RMB thousands) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Property development business - contracted but not provided for | 19,278,666 | 26,779,952 | [Human Resources](index=32&type=section&id=Human%20Resources) As of December 31, 2022, the Group employed **3,014 staff**, with **1,549** dedicated to property development, and implemented a performance-linked incentive system along with training programs to enhance employee skills - As of December 31, 2022, the Group employed a total of **3,014 staff** (2021: **4,007 staff**), with **1,549 employees** working in the property development business[199](index=199&type=chunk)[222](index=222&type=chunk) - To incentivize employees, the Group has adopted a performance-linked incentive system, providing year-end bonuses to outstanding employees in addition to basic salaries[199](index=199&type=chunk) [Annual General Meeting and Closure of Register of Members](index=32&type=section&id=Annual%20General%20Meeting%20and%20Closure%20of%20Register%20of%20Members) The Company's Annual General Meeting will be held on June 30, 2023, with the register of members closed from June 27 to June 30, 2023, to determine eligibility for attending and voting - The Company's Annual General Meeting will be held on Friday, June 30, 2023[17](index=17&type=chunk)[200](index=200&type=chunk) - The Company's register of members will be closed from Tuesday, June 27, 2023, to Friday, June 30, 2023 (both dates inclusive)[17](index=17&type=chunk) [Corporate Governance](index=33&type=section&id=Corporate%20Governance) For the year ended December 31, 2022, the Company complied with the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Chen Jun, and the Chairman's absence from the 2022 Annual General Meeting - For the year ended December 31, 2022, the Company complied with the code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules, except for code provisions C.2.1 and F.2.2[201](index=201&type=chunk)[225](index=225&type=chunk) - Mr. Chen Jun holds both the roles of Chairman of the Board and Chief Executive Officer of the Company, with the Board believing that combining these roles facilitates efficient formulation and implementation of the Group's strategies and policies[201](index=201&type=chunk) - The Chairman of the Board did not attend the Company's Annual General Meeting held on June 30, 2022, due to other business commitments[226](index=226&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=33&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Except for the disclosed bond repurchases and redemptions, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the year ended December 31, 2022 - On May 27, 2022, the Company repurchased **USD 18.5 million** principal amount of its **9.625%** bonds due 2022, and on June 3, 2022, the Company fully redeemed all outstanding bonds[226](index=226&type=chunk) - Save as disclosed above, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the year ended December 31, 2022[202](index=202&type=chunk) [Significant Events After Reporting Period](index=33

Financial Performance - For the six months ended June 30, 2022, the revenue was RMB 5,023 million, a decrease of RMB 8,426 million compared to RMB 13,449 million in 2021[13]. - Gross profit for the same period was RMB 930 million, down from RMB 4,128 million in 2021, representing a decline of RMB 3,198 million[13]. - Net profit was RMB 12 million, significantly lower than RMB 1,434 million in the previous year, indicating a decrease of RMB 1,422 million[13]. - Total revenue for the period was approximately RMB 5,023 million, representing a decrease of approximately 63% compared to the same period last year[33]. - Profit attributable to owners of the Company was approximately RMB 106 million, reflecting a year-on-year decrease of approximately 93%[33]. - The average selling price was approximately RMB 11,187 per sq.m., with property sales revenue of approximately RMB 4,650 million, down approximately 64% from RMB 13,061 million in the same period last year[36]. - Basic earnings per share of RMB 0.04, down from RMB 0.52 in the previous year, a decrease of RMB 0.48[13]. - Total comprehensive income for the period was RMB 98,823, a decrease from RMB 1,443,849 in the previous year[168]. Assets and Liabilities - Total assets as of June 30, 2022, were RMB 164,346 million, down from RMB 168,746 million at the end of 2021, a reduction of RMB 4,400 million[16]. - Total liabilities decreased to RMB 141,610 million from RMB 145,142 million, a decline of RMB 3,532 million[16]. - As of June 30, 2022, total equity was approximately RMB 22,736 million, total assets amounted to approximately RMB 164,346 million, and total liabilities were approximately RMB 141,610 million[81]. - Net gearing ratio was approximately 44% as of June 30, 2022, compared to approximately 39% at the end of 2021[85]. - Total non-current liabilities decreased from RMB 12,658,954,000 as of December 31, 2021, to RMB 9,714,719,000 as of June 30, 2022, representing a reduction of approximately 23.0%[172]. - Current liabilities slightly decreased from RMB 132,483,394,000 as of December 31, 2021, to RMB 131,895,070,000 as of June 30, 2022, a decrease of about 0.4%[172]. Sales and Market Performance - Sales of properties and construction management services accounted for RMB 4,650 million, down from RMB 13,061 million, a decline of RMB 8,411 million[21]. - In the first half of 2022, contracted sales amounted to approximately RMB 8,183 million, with a contracted gross floor area (GFA) sold of 821,535 sq.m.[33]. - The contracted sales were primarily derived from key regions: Guangdong (37%), Jiangsu (28%), Yunnan (10%), and Guangxi (9%) of total contracted sales[47]. - Revenue from property sales generated approximately RMB 4,650 million, accounting for about 93% of total revenue, reflecting a year-on-year decrease of approximately 64%[64]. - The recognized GFA of properties delivered decreased by approximately 58%, from 971,743 sq.m. in the first half of 2021 to 405,350 sq.m. in the first half of 2022[65]. Operational Strategies - The Group focused on destocking and innovative sales strategies, enhancing its sales and operating capability through new media platform integration and online advertising[42]. - The Group implemented differentiated sales strategies for existing projects by updating product positioning and promoting product quality[44]. - The Group aims to focus on first- and new first-tier cities for its "Elite Home" brand, enhancing its apartment leasing and life services platform[51]. - The Group plans to optimize its land bank structure and deepen regional development, focusing on major city clusters and key cities[60]. Human Resources and Governance - The Group employed a total of 3,250 employees as of June 30, 2022, down from 4,007 employees as of December 31, 2021, with a performance-based rewarding system in place[102]. - The company complied with the corporate governance code provisions except for C.2.1 and F.2.2 during the six-month period ended June 30, 2022[141]. - The roles of chairman and chief executive officer were combined under Mr. Chen Jun from January 1, 2022, to June 30, 2022, which the company believes aids in efficient strategy formulation[142]. Financial Management and Risks - The Group will continue to strengthen cash flow management and maintain a healthy financial position while seeking high-quality development opportunities[62]. - The Group's financial management policies include monitoring foreign exchange risks and implementing appropriate hedging measures, particularly concerning RMB to USD exchange rates[91]. - The Group's business performance is influenced by economic conditions and property market performance in the regions of its developments, which may not be fully mitigated by investment strategies[104]. - The Group's financial condition may be affected by government policies and regulations, necessitating close monitoring of changes in the regulatory environment[109].

Financial Performance - Revenue for 2021 was RMB 33,927 million, an increase of 0.6% from RMB 33,734 million in 2020[10] - Gross profit for 2021 was RMB 8,470 million, up by 2.7% from RMB 8,249 million in 2020[10] - Profit for the year decreased to RMB 2,434 million, down 29.6% from RMB 3,459 million in 2020[10] - Total assets increased to RMB 168,746 million, a rise of 2.3% from RMB 164,989 million in 2020[14] - Total liabilities rose to RMB 145,142 million, an increase of 1.6% from RMB 142,847 million in 2020[14] - Total equity increased to RMB 23,604 million, up by 6.6% from RMB 22,142 million in 2020[14] - In 2021, Greenland Hong Kong's contracted sales amounted to approximately RMB 33,000 million, with a contracted GFA sold of 2,825,817 square meters and a cash collection rate exceeding 130%[49][51] Property Development and Sales - Sales of properties and construction management services accounted for RMB 33,018 million, a growth of 0.6% from RMB 32,833 million in 2020[15] - The company aims to deepen land bank in the Yangtze River Delta and Pan-Pearl River Delta regions, having developed 114 projects across 37 cities[6] - Greenland Hong Kong won bids for multiple land parcels throughout the year, including approximately 405,000 square meters in Nanning and 321,900 square meters in Wenzhou[19] - The company officially opened its long-term leasing apartment "Elite home" in Guangzhou, indicating an acceleration in market expansion in first-tier cities[22] - Greenland Hong Kong's residential project in Wuxi received a land parcel with a total GFA of approximately 157,000 square meters, furthering its expansion efforts[22] Strategic Initiatives - Greenland Hong Kong will continue to implement the "Real Estate +" strategy to enhance resource allocation and efficiency[6] - The company entered into strategic cooperation agreements with local state-owned enterprises, enhancing collaboration in various regions[22] - The Group's strategic layout focuses on the "two Wings and One Core" approach, targeting high-quality projects in key areas like the Yangtze River Delta and Greater Bay Area[36][38] - Greenland Hong Kong is exploring new development models, focusing on property leasing and optimizing its capital structure while deepening regional and city development[56] - The company plans to focus on first-tier cities and optimize its capital structure while enhancing land reserve quality and management efficiency to seek high-quality development[58] Innovation and Technology - Greenland Hong Kong's innovative use of technologies, such as UAVs for surveys and robots for contract verification, has improved operational efficiency and reduced costs[55] - The company held its first product competitiveness summit, focusing on innovation in product ideas within the real estate industry[22] - The company signed a strategic cooperation agreement with Schneider Electric to jointly establish a "dual carbon center" in the China-ASEAN Digital Science and Technology Park, enhancing technological application in Nanning, ASEAN coastal cities[57] Awards and Recognition - The company received 93 industry awards in 2021, including 22 international awards and 52 domestic awards, highlighting its commitment to quality[25] - Greenland Hong Kong was awarded the "Best Real Estate Company" at the "Sixth Golden Hong Kong Stocks Awards"[19] Market Challenges and Responses - The company faced unprecedented challenges in 2021 due to tightened financing channels and a cooling sales market, prompting rapid adjustments in operational strategies[35][37] - The Group's operational strategy included enhancing internal management and morale through sales strategy seminars and adjusting performance assessment mechanisms in response to market challenges[43][45] Urban Development Projects - The company has a diverse property project portfolio, with 31 projects in Jiangsu, 39 in Guangdong, and 9 in Yunnan, among others, demonstrating extensive geographical coverage[67] - The ongoing projects reflect a commitment to integrating residential and commercial spaces, promoting sustainable urban development[89] - Greenland Holdings is developing the Greenland Central Plaza in Nanning, with a site area of 82,200 sq.m and a GFA of 224,800 sq.m, aiming to create a strategic platform for various industries[143] - The Greenland City project in Nanning covers a site area of 336,412 sq.m and a GFA of 665,056 sq.m, planned to integrate ecological living, international education, and commercial activities[149] Future Development Plans - Greenland Hong Kong aims to transition towards a quality and efficiency-oriented development model, enhancing its core competitiveness in the real estate sector[58] - The company is committed to creating a better lifestyle and enhancing consumer satisfaction, which is expected to improve its core competitiveness[61] - Greenland Hong Kong is focused on deepening its presence in key urban clusters and hot cities, aiming to improve product and service quality[58]

Financial Performance - For the six months ended June 30, 2021, the company reported revenue of RMB 13,449 million, an increase of 32.5% from RMB 10,142 million in 2020[35] - Gross profit for the same period was RMB 4,128 million, up 21.6% from RMB 3,395 million in 2020[35] - Net profit attributable to owners of the company reached RMB 1,427 million, a 45.7% increase compared to RMB 980 million in the previous year[35] - Earnings per share for the first half of 2021 was RMB 0.52, an increase of 48.6% from RMB 0.35 in the same period of 2020[35] - Revenue for the first half of 2021 was approximately RMB 13,449 million, reflecting a year-on-year increase of approximately 33%[50] - Profit attributable to owners of the Company for the period was approximately RMB 1,427 million, representing a year-on-year increase of approximately 46%[51] - Total comprehensive income for the period was RMB 1,443,849, compared to RMB 1,198,173 in the same period last year, indicating an increase of 20.5%[196] Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 173,745 million, reflecting an increase of 5.3% from RMB 164,989 million at the end of 2020[37] - Total liabilities increased to RMB 150,962 million, up 5.7% from RMB 142,847 million at the end of 2020[37] - The company reported a total equity of RMB 22,783 million, which is a 2.9% increase from RMB 22,142 million at the end of 2020[37] - The net gearing ratio remained stable at approximately 52%[51] - As of June 30, 2021, total equity was approximately RMB 22,783 million, total assets amounted to approximately RMB 173,745 million, and total liabilities stood at approximately RMB 150,962 million[109] - The net gearing ratio was approximately 52% as of June 30, 2021, compared to approximately 49% as of December 31, 2020[109] Property Development and Sales - The company acquired 10 land parcels with a total gross floor area of approximately 1.82 million sq.m. in the Yangtze River Delta and Greater Bay Area regions[46] - Sales of properties and construction management services contributed RMB 13,061 million, representing a 33.2% increase from RMB 9,804 million in 2020[41] - For the six months ended June 30, 2021, the Group's contracted sales amounted to approximately RMB 18,811 million, representing a year-on-year increase of approximately 42%[63] - The total gross floor area (GFA) sold and delivered during the same period was approximately 1,408,662 sq.m.[63] - The average selling price during the period was approximately RMB 13,354 per sq.m.[64] - Key regions contributing to contracted sales included the Yangtze River Delta and the Greater Bay Area, accounting for approximately 52% and 32% of total sales respectively[64] - The total GFA sold and delivered amounted to approximately 971,743 sq.m. during the review period[52] - The average selling price for property sales was approximately RMB 13,141 per sq.m.[52] Expenses and Costs - Cost of sales increased by approximately 38% to approximately RMB 9,321 million from RMB 6,747 million in the first half of 2020[92] - Selling and marketing expenses increased to approximately RMB 552 million from RMB 352 million in the same period of 2020, while administrative expenses decreased to approximately RMB 416 million from RMB 450 million[98] - Finance costs increased to RMB 118,331 from RMB 99,616, representing a rise of 18.7%[193] - Other income for the period was RMB 27,356, compared to RMB 22,588 in 2020, marking an increase of 21.5%[193] Corporate Governance and Management - The Company complied with all code provisions in the CG Code except for A.2.1, A.4.2, and E.1.2 during the six months ended June 30, 2021[158] - The roles of chairman and CEO were combined under Mr. Chen Jun from January 1, 2021, to June 30, 2021, which the Company believes aids in strategy formulation[159] - All Directors confirmed compliance with the Model Code for securities transactions during the six months ended June 30, 2021[163] - The Company’s independent non-executive director Mr. Kwan Kai Cheong resigned effective June 18, 2021[171] Shareholding and Interests - Mr. Wang Weixian is deemed to be interested in 38,804,571 Shares held by Prestige Glory Enterprises Limited, which he beneficially owns[1] - Mr. Wang Weixian and Ms. Wang Xuling are deemed to be interested in an aggregate of 367,254,133 Shares indirectly held by The Duanyuan Trust[2] - Ms. Wang Xuling beneficially owns 7,390,000 Shares, with 3,390,000 Shares deemed to be interested under a subscription agreement[3] - The entire issued share capital of the Company as of June 30, 2021, is 2,791,884,683 Shares[7] - Gluon Xima International Limited holds 1,650,244,409 shares, representing 59.11% of the total issued share capital[152] Future Prospects and Strategy - The Group plans to continue optimizing its land bank structure and focus on major city clusters and key cities to enhance operational management and product quality[83] - The Group aims to become an integrated real estate group with a mission of "creating a better lifestyle" while enhancing its overall competitiveness and market influence[83] - The Group will continue to monitor the trend of the RMB exchange rate against the US dollar and adopt appropriate measures to hedge against foreign currency exchange risks[115]

Financial Performance - Revenue for 2020 reached RMB 33,734 million, an increase of RMB 16,072 million compared to 2019[8] - Gross profit for 2020 was RMB 8,249 million, up by RMB 2,794 million from the previous year[8] - Profit for the year amounted to RMB 3,459 million, representing an increase of RMB 418 million year-on-year[8] - Earnings per ordinary share for 2020 were RMB 0.94, an increase of RMB 0.05 from 2019[8] - In 2020, Greenland Hong Kong achieved a contracted sales amount of RMB 54,535 million, representing a year-on-year increase of approximately 13%[38] Assets and Liabilities - Total assets as of 2020 were RMB 164,989 million, an increase of RMB 65,719 million from 2019[17] - Total liabilities reached RMB 142,847 million, up by RMB 60,168 million compared to the previous year[17] Land Acquisition and Development - The company developed 110 projects across 37 cities in 9 provinces, focusing on the Yangtze River Delta and Pan-Pearl River Delta regions[3] - In February 2020, the company entered into a cooperation with Agile Group to develop a project with a total GFA of approximately 275,000 sq.m. in Kunming, Yunnan Province[19] - The company won land parcels in Chenggong District of Kunming City with a total GFA of approximately 216,200 sq.m. in February 2020[19] - In April 2020, the company won bids for land parcels in Fuyang District, Hangzhou City, Zhejiang Province (181,700 sq.m.) and Yancheng City, Jiangsu Province (318,000 sq.m.)[21] - In May 2020, the company secured land parcels in Yuhang District, Hangzhou City, Zhejiang Province and Jinning District, Kunming City, Yunnan Province with a total GFA of approximately 340,000 sq.m.[22] - In June 2020, the company acquired land parcels in Dayu District, Kunming City, Yunnan Province and Wujiang District, Suzhou City, Jiangsu Province totaling approximately 358,800 sq.m.[23] - In July 2020, the company acquired land parcels in Xinbei District, Changzhou City, Wujiang District, Suzhou City, and Binhu District, Wuxi City, Jiangsu Province with a total GFA of approximately 616,000 sq.m.[24] - In September 2020, the company won a bid for a land parcel in Tongxiang, Zhejiang Province with a total GFA of approximately 144,500 sq.m. for an urban complex project[24] - In December 2020, the company completed the acquisition of Guangzhou Greenland, adding a strategic land bank of approximately 8.33 million sq.m. in Guangdong Province, including the Greater Bay Area[25] - The company added approximately 12 million square meters of land bank by acquiring 54 land parcels in major cities in the Yangtze River Delta and Pan-Pearl River Delta[39] Awards and Recognition - The company won 96 industry awards and over 80 other awards in 2020, including 23 international design awards and 62 design awards from authoritative organizations in China[27] - The company was awarded the "Best Real Estate Company" in the "Fifth Golden Hong Kong Stocks Awards Ceremony" in 2020[27] Strategic Initiatives - The company aims to establish itself as a benchmark in the Hong Kong capital market for mainland China's real estate players[3] - The company entered into a comprehensive strategic cooperation with HM Capital for a business model of "Base + Fund + Operation" in October 2020[24] - The Group focused on six key areas: boosting sales, securing supply, facilitating project completion, exploring development opportunities, strengthening operations, and team building[32] - The Group launched a self-owned brand "HOHOG" and a tender and purchase management platform to enhance operational efficiency[32] - The Group is committed to digital transformation, achieving full lifecycle management and supervision, which enhances operational and decision-making efficiencies[51] - The Group aims to enhance its core competitiveness by creating new demands and improving consumers' material needs through diversified operations and sophisticated management[54] Market Outlook - Looking ahead to 2021, the real estate market is expected to develop soundly and stably, supported by the gradual availability of vaccines[52] - The Group plans to lay a solid foundation for reaching the "100 billion camp" by focusing on long-term development and strategic layout for the next five years[53] - The Group will continue to identify high-quality land projects with promising potential for development[47] Project Development and Completion - The company has a significant presence in Jiangsu Province, with multiple projects in cities like Wuxi, Suzhou, and Changzhou, indicating strong regional market engagement[178] - The company is focused on residential and commercial developments, with a mix of completed and ongoing projects, reflecting a balanced growth strategy[178] - The company is actively involved in the superstructure phase of several projects, indicating a robust pipeline for future revenue generation[179] - The company has a diverse portfolio with properties at various stages of development, ensuring a steady flow of potential income streams in the coming years[179] - The company is expanding its footprint in the hotel sector, with properties like Holiday Inn Shanghai Pudong fully completed[178] Regional Project Distribution - The company has a total of 38 projects in Guangdong, accounting for 33% of the total GFA[57] - In Jiangsu, there are 28 projects across 9 cities, representing 15% of the total GFA[57] - Guangxi has 13 projects in 4 cities, which is 17% of the total GFA[57] - The company has 9 projects in Yunnan, located in 1 city, making up 11% of the total GFA[57] - Hainan has 4 projects in 1 city, accounting for 10% of the total GFA[57] - The company operates 9 projects in Zhejiang, which is 6% of the total GFA[57] - In Anhui, there are 2 projects in 2 cities, representing 6% of the total GFA[57] - Shanghai has 6 projects in 1 city, contributing to 1% of the total GFA[57] Project Details - Greenland Seaside City has a site area of 69,172 sq.m and a GFA of 151,091 sq.m, located in the Shanghai Free Trade Zone[66] - Holiday Inn Shanghai Pudong Kangqiao features a site area of 42,750 sq.m and a GFA of 58,596 sq.m, with 400 guest rooms and additional commercial facilities[68] - Greenland Jiangnan Huafu has a site area of 214,062 sq.m and a GFA of 540,868 sq.m, situated in the core area of Wujiang District, Suzhou[70] - Greenland Loch Mansion covers a site area of 117,999 sq.m and a GFA of 213,690 sq.m, located in the Suzhou Bay District[71] - Dream City has a site area of 150,363 sq.m and a GFA of 270,700 sq.m, positioned in the Yundong Area of Wujiang Economic Development Zone[73] - Greenland Yejin Mansion has a GFA of 160,372 sq.m, located in the Canal Segment of Guangling District, Yangzhou City[75] - Greenland Ideal City features a site area of 124,819 sq.m and a GFA of 318,000 sq.m, located in the core area of Economic Development Zone in Yancheng City[77] - Greenland Ocean Masterland has a site area of 164,406 sq.m and a GFA of 311,316 sq.m, situated in the key development area of the High Tech Zone of Nantong[82] - Greenland Midtown covers a GFA of 226,386 sq.m, located in the Xinlong segment of New North District, Changzhou[84] - Greenland Lakeside Villa has a site area of 356,629 sq.m and a GFA of 335,640 sq.m, located in Xuzhou City, Jiangsu Province[88] - Greenland Emerald Park has a site area of 92,395 sq.m and a GFA of 149,398 sq.m, located 7 km from downtown Zhenjiang City[91] - Greenland Sky Tree features a GFA of 330,701 sq.m and is a mixed development project in Wuxi, situated atop Guangcheng Metro Line 1[92] - Greenland Xi Shui Dong has a site area of 249,005 sq.m and a GFA of 658,819 sq.m, making it the largest city-core development project in Wuxi[94] - Greenland Diamond Mansion covers a site area of 70,903 sq.m with a GFA of 185,760 sq.m, located within 5 minutes of Wuxi city center[95] - Wuxi Health Home has a site area of 62,098 sq.m and a GFA of 159,780 sq.m, positioned in the downtown of Liangxi district[97] - Greenland Yushan World spans a site area of 180,225 sq.m with a GFA of 380,391 sq.m, located in the Yushan Bay District[99] - Greenland Central Plaza has a site area of 277,933 sq.m and a GFA of 702,207 sq.m, situated in the main district of Tongxiang, Jiaxing City[104] - Greenland Epoch Gate features a site area of 135,663 sq.m and a GFA of 260,990 sq.m, located in Yiwu's prosperous business circle[106] - Greenland Four Seasons Impression project has a site area of 119,963 sq.m and a GFA of 230,837 sq.m, located in the core area of Pukou Eco-Tech development zone, Shengzhou, Zhejiang Province[109] - Greenland Taiping Lake Resort covers a site area of 2,283,733 sq.m with a GFA of 1,049,453 sq.m, featuring a multi-phase resort development including five-star hotels and a golf course[110] - Guangde Inter City Space project has a site area of 351,301 sq.m and a GFA of 829,200 sq.m, aimed at developing a high-speed railway complex community[112] - Haikou Greenland City spans a site area of 1,147,035 sq.m with a GFA of 1,995,840 sq.m, representing a large-scale mixed development of residential, commercial, and office spaces[113] - Greenland Central Culture Center has a site area of 685,251 sq.m and a GFA of 1,760,071 sq.m, also a large-scale mixed development project[115] - Greenland Dian Lake International Health Town covers a site area of 931,900 sq.m with a GFA of 1,610,656 sq.m, focusing on comprehensive healthcare development[117] - Greenland Southeast Asia Headquarters project has a site area of 141,280 sq.m and a GFA of 860,936 sq.m, planned as a mixed development including a super high-rise[119] - Greenland Central Plaza spans a site area of 192,684 sq.m with a GFA of 776,606 sq.m, featuring top-tier urban facilities and convenient transport infrastructure[124] - Greenland Center project has a site area of 39,099 sq.m and a GFA of 236,948 sq.m, designed as a mixed development of office and commercial spaces[126] - Greenland Xin Li Pu Yue Garden covers a site area of 86,087 sq.m with a GFA of 240,491 sq.m, aimed at residential development and revitalizing the old town[127] - Greenland City project covers a site area of 336,412 sq.m and a GFA of 665,056 sq.m, planned to develop a complex with ten categories including ecological living and international education[128] - Greenland Dongmeng International Town has a site area of 873,342 sq.m and a GFA of 1,734,007 sq.m, aimed at becoming a future city with six categories such as commercial center and international education[129] - Greenland New Metropolis occupies a site area of 94,423 sq.m with a GFA of 232,463 sq.m, located in a core residential district with significant development opportunities[131] - Greenland Jiaotou Central Park spans 73,358 sq.m in site area and 277,173 sq.m in GFA, set to be a new city landmark in Qinzhou[133] - Wuzhou Greenland Art Residence covers a site area of 76,000 sq.m and a GFA of 226,833 sq.m, planned to develop a central life area with seven categories including healthcare and education[135] - Yulin Greenland City has a site area of 437,525 sq.m and a GFA of 996,031 sq.m, intended to be developed into a future city with a mixed residential and commercial focus[137] - Greenland Forest Lake project features a site area of 792,500 sq.m and a GFA of 1,654,081 sq.m, located in the Greater Bay Area with plans for comprehensive cultural tourism[139] - Greenland Future City has a site area of 196,581 sq.m and a GFA of 555,000 sq.m, designed as a mixed development of residential, commercial, and office spaces[144] - Shunde Greenland Center covers a site area of 34,442 sq.m and a GFA of 182,929 sq.m, planned as a mixed-use development of residential, commercial, and office[146] - Greenland Garden City Family spans a site area of 117,616 sq.m and a GFA of 350,299 sq.m, aimed at a mixed development of residential and commercial[150] Project Completion Status - The company has completed multiple properties, including 100% residential and commercial developments in Shanghai and Suzhou, with all listed properties marked as completed[178] - The company holds a 100% interest in several ongoing projects, such as the Greenland Loch Mansion and Greenland Diamond Mansion, with scheduled completions in 2023 and 2021 respectively[179] - The company is currently developing properties with varying completion statuses, including superstructure work in progress for projects like Glory Mansion and Amber Villa, expected to complete in 2022 and 2023[179] - A total of 51% interest is held in Amber Villa, indicating a strategic partnership in the residential sector[179] - The company has properties under development in Wuxi and Changzhou, with completion dates ranging from 2021 to 2024, showcasing a diverse portfolio[179] - The company is actively expanding its portfolio with new projects, including the Greenland City of Elite and Guangzhou International Innovation Driving Center, both in progress[86][87] - The scheduled completion dates for several properties range from 2021 to 2025, showcasing a strategic timeline for market entry[81][83] - The company maintains a diversified interest in both residential and commercial sectors, enhancing its market positioning[82][90]

Financial Performance - Revenue for the first half of 2020 was RMB 6,400 million, an increase of 10.3% from RMB 5,802 million in 2019[10]. - Gross profit for the same period was RMB 2,091 million, slightly up from RMB 2,063 million, reflecting a growth of 1.4%[10]. - Net profit decreased to RMB 697 million, down 20.8% from RMB 880 million in 2019[10]. - Core net profit for the period was approximately RMB 646 million, reflecting a year-on-year increase of approximately 24%[28]. - Profit for the period decreased to RMB 697,486,000, down 20.7% from RMB 879,807,000 in the prior year[159]. - Profit for the period attributable to owners of the Company was RMB 650,115,000, down from RMB 705,631,000 in the previous year, representing a decline of 7.8%[162]. - Total comprehensive income for the period was RMB 698,451,000, a decrease of 20.6% compared to RMB 879,807,000 in 2019[162]. Revenue Sources - Revenue derived from property sales was approximately RMB 6,129 million, representing an increase of approximately 12% from RMB 5,457 million during the same period last year[28]. - Revenue from property management and other services was approximately RMB 189 million, while rental income was approximately RMB 48 million[77]. - Revenue from property sales and construction management services amounted to RMB 6,128,877, representing a significant portion of total revenue[190]. - Revenue from external customers for the six months ended June 30, 2020, was RMB 6,128,877, which includes various segments such as construction management and hotel services[197]. Assets and Liabilities - Total assets as of June 30, 2020, were RMB 108,575 million, an increase of 9.4% from RMB 99,270 million at the end of 2019[12]. - Total liabilities rose to RMB 91,713 million, up 10.9% from RMB 82,679 million in 2019[12]. - Total equity as of June 30, 2020, was approximately RMB 16,862 million, compared to RMB 16,591 million as of December 31, 2019[87]. - Net gearing ratio increased to approximately 38% as of June 30, 2020, compared to approximately 18% as of December 31, 2019[87]. - Total cash and cash equivalents amounted to approximately RMB 10,333 million, with total borrowings of approximately RMB 16,750 million[87]. Land Acquisition and Development - The Group acquired a total of 13 land parcels with a total GFA of approximately 2.53 million sq.m., primarily located in the Yangtze River Delta and Yunnan Province[26]. - The Group's land bank stood at approximately 22 million sq.m., strategically located in prime areas of core cities in the Yangtze River Delta and Pan-Pearl River Delta, sufficient to support development for the next 2 to 3 years[66]. - The strategic expansion of the land bank focuses on core urban areas in the Yangtze River Delta and Yunnan Province through diverse acquisition methods[55]. - In April 2020, Greenland Hong Kong won a bid for a land parcel in Fuyang District, Hangzhou City for approximately RMB 2.14 billion, with a planned GFA of approximately 181,700 sq.m.[56]. Operational Efficiency - Cost of sales increased by approximately 15% from RMB 3,739 million in the first half of 2019 to approximately RMB 4,309 million in the first half of 2020[78]. - Administrative expenses decreased to approximately RMB 317 million, representing a year-on-year decrease of approximately 13%, while selling and marketing costs decreased to approximately RMB 241 million, representing a year-on-year decrease of approximately 25%[83]. - Selling and marketing expenses decreased to RMB 240,727,000 from RMB 320,334,000, a reduction of 25%[159]. - Other income increased to RMB 20,877,000 from RMB 12,792,000, showing growth in additional revenue streams[159]. Strategic Initiatives - The company anticipates that the real estate market will benefit from the gradual recovery of China's economy and reduced financing costs for real estate companies[20]. - The Group's "Real Estate +" strategy aims to integrate healthcare, cultural tourism, and technology innovation into its business model[51]. - The establishment of a joint venture with Shanghai Jiao Tong University aims to develop an industry chain cluster in education, cultural and creative industries[51]. - The comprehensive healthcare project in Jinning District is expected to enhance the city's development and improve living standards[50]. Market Outlook - The outlook for China's economy indicates a recovery from COVID-19, with expectations for improvement in the national economy quarter by quarter in the second half of the year[69]. - The impact of COVID-19 has negatively affected the global economy and the Group's operations, prompting the Chinese government to announce financial support measures[178]. Corporate Governance - The Company complied with the corporate governance code provisions, except for A.2.1, A.4.2, A.5.1, and E.1.2 during the six-month period ended June 30, 2020[127]. - The Company had no arrangements enabling Directors to acquire benefits through share or debenture acquisition during the six months ended June 30, 2020[116]. - The company confirmed compliance with the Model Code for securities transactions by directors during the six months ended June 30, 2020[135].

Financial Performance - Revenue for 2019 reached RMB 17,662 million, an increase of RMB 2,218 million or 14.4% compared to 2018[7] - Gross profit for the year was RMB 3,041 million, up by RMB 1,060 million or 53.5% from the previous year[7] - Net profit attributable to owners of the company was RMB 2,474 million, representing an increase of RMB 738 million or 29.5% year-on-year[7] - Earnings per ordinary share increased to RMB 0.89, up by RMB 0.28 or 45.9% from the previous year[7] - In 2019, the total contracted sales of the Group amounted to approximately RMB 48,458 million, representing a year-on-year increase of approximately 28%[171] - The total revenue recorded by the Group for the year was approximately RMB 17,662 million, an increase of approximately 14% from 2018[172] - Profit for the year amounted to approximately RMB 3,041 million, representing an increase of approximately 54% from 2018[172] - Profit attributable to owners of the Company was approximately RMB 2,474 million, reflecting a year-on-year increase of approximately 43%[172] - The revenue from property sales was approximately RMB 16,995 million, representing an increase of approximately 15% compared to RMB 14,831 million in 2018[176] - The total contracted sales amounted to approximately RMB 48,458 million, an increase of approximately RMB 10,533 million or 28% year-on-year[187] Assets and Liabilities - Total assets increased to RMB 99,270 million, a rise of RMB 9,040 million or 10.0% from 2018[10] - Total liabilities rose to RMB 82,679 million, an increase of RMB 6,394 million or 8.4% compared to the previous year[10] Land Acquisitions and Development Projects - The company won a bid for a land parcel in the ASEAN Economic Development Zone in Nanning, with a total GFA of approximately 911,000 sq.m.[16] - In April 2019, the company secured land parcels in Tongxiang and Dantu District with total GFA of approximately 366,420 sq.m.[16] - Acquired a land parcel for Phase II of Greenland Dian Lake International Health Town, totaling approximately 421,456 sq.m. in May 2019[17] - In June 2019, Greenland Hong Kong Holdings won bids for several land plots in Guangde County, Anhui Province, with a planned GFA of approximately 829,200 sq.m[19] - In September 2019, Greenland Hong Kong acquired four land parcels in Changzhou, Wuxi, Qinzhou, and Nanning, totaling approximately 1.12 million sq.m[21] - In October 2019, the company acquired land parcels in Yangzhou and Wuzhou, with total GFA of approximately 169,618 sq.m and 228,500 sq.m, respectively[22] - In December 2019, Greenland won a bid for a land parcel in Nantong, Jiangsu Province, with a total GFA of approximately 290,225 sq.m[23] Awards and Recognition - Greenland Hong Kong was awarded the "2019 Operational Capability Award of Listed Real Estate Company in China" by Gelonghui[24] - The company received the "Most Valuable Real Estate Enterprise" award in Golden Hong Kong Stocks Awards 2019 by Zhitongcaijing.com[24] - Greenland's project, Greenland Dian Lake International Health Town, received multiple awards for design and quality in 2019[27] - Greenland Hong Kong Holdings Limited received multiple awards in 2019, including the Silver Award of the "9th International Space Design Award" and the "City – Industry Integration Property Project of 2019"[30] - The company was recognized as the "Benchmark Property Project of the Year for Promoting the Development of City" by Nanning Evening News[30] - Greenland City was awarded the Gold Prize of "Huading Awards 2019" in the sample room category by the China Decoration Association[31] - Yulin Greenland City received the "2-Star Certificate of Green Building Design Label (Operation)" and the Silver Award of the "10th Yuanye Awards of Real Estate Garden Solutions 2019"[31] - Greenland Mountain Time won the Champion for the "Golden Pin Design Award 2019" and the Silver Award for the "2019 A' Design Award" of Italy[33] - Greenland Forest Lake was recognized as the "Best Pre-sale Property Project of the Year" at the "14th Kinpan Awards" by Kinpan.com[33] Strategic Initiatives and Partnerships - The company established a three-year strategic cooperation agreement with Shankai Sports to innovate collaboration between the real estate and sports industries[18] - The Group focused on enhancing integrated capacity in various sectors such as cultural tourism, healthcare, and education to promote synergy effects[38][52] - The "Real Estate +" strategy was actively advanced, targeting emerging industries like healthcare and cultural tourism[37][52] - The Group's Health Town in Kunming is positioned as a benchmark for the healthcare project in the southwestern region[45][48] - The Group entered into a three-year strategic cooperation agreement with Shankai Sports to develop a new model of partnership for the real estate and sports industry[52] - The Group's education sector expansion includes the launch of the international education innovation brand and long-term rental apartments[53] Market Trends and Economic Environment - In 2019, the real estate development investment in China showed a declining trend, influenced by tightened real estate control policies and financing policies[35] - The transacted area of commercial housing across the country continued to increase at a slow pace, with steady sales growth despite the market stabilization efforts[35] - The company faced challenges in 2019 due to the global economic slowdown and intensified trade conflicts, impacting overall economic growth rates[35] - Structural divergence in economic sectors became more pronounced, complicating China's economic structural adjustment in 2019[35] - The outlook for 2020 anticipates a rebound in manufacturing investment supported by improving Sino-US relations and pro-consumption policies[55] Project Development and Completion - The company is actively pursuing mixed development projects across various cities, indicating a strategic focus on urban complex developments[134] - The company is focusing on mixed residential and commercial developments across various projects, enhancing its portfolio in key urban areas[115] - Greenland has a 100% interest in multiple residential and commercial properties, with several projects currently in various stages of construction, including the Greenland Xi Shui Dong and Greenland Sky Tree, both scheduled for completion in 2022[167] - The company is actively developing properties in Jiangsu and Zhejiang provinces, with a total of 70% to 100% interest in projects like Greenland Central Plaza and Greenland Epoch Gate, both expected to complete in 2021[168] - The company is involved in the development of a hotel project at Greenland Taiping Lake Resort, which is in the fourth phase of superstructure work and is expected to complete in 2020[168] - Greenland's property status includes multiple projects in the superstructure phase, indicating a robust pipeline of developments across various regions[167] - The company holds a 51% interest in the Zhenjiang Yangzhong Project, which is currently in the preliminary stage, reflecting strategic investment in emerging markets[167] - The company is focused on expanding its footprint in high-demand areas, with several projects in urban centers like Wuxi and Changzhou, which are expected to drive future revenue growth[167] - Greenland's commitment to completing projects on schedule is evident, with multiple properties slated for completion in 2022 and 2023, reinforcing its operational efficiency[168] Sales and Market Performance - The average selling price was approximately RMB 12,739 per sq.m.[176] - The average selling price for contracted sales was approximately RMB 14,810 per sq.m.[187] - Key areas contributing to contracted sales included Shanghai (24%), Jiangsu (20%), and Guangxi (17%)[188] Urban Development and Planning - The company entered into a cooperation framework agreement with the Government of Dantu District for urban renewal projects, enhancing its role in urban planning and development[189] - Greenland Hong Kong entered into a three-year strategic cooperation agreement with Shankai Sports to explore ecological sports tourism, with pilot projects planned at the Greenland Taiping Lake Resort[193] - The company unveiled the Greenland Kunming H1 Health Town Exhibition Hall, marking a significant step in its "universal medical and healthcare" roadmap, featuring partnerships with top-tier healthcare organizations[195]

Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 5,802 million, an increase of RMB 500 million from RMB 5,302 million in 2018, representing a growth of approximately 9.4%[16] - Gross profit for the same period was RMB 2,063 million, up RMB 815 million from RMB 1,248 million in 2018, reflecting a growth of approximately 65.3%[16] - Net profit reached RMB 880 million, an increase of RMB 417 million compared to RMB 463 million in 2018, marking a growth of approximately 90%[16] - Earnings per share (basic and diluted) were RMB 0.25, up from RMB 0.11 in 2018, indicating an increase of approximately 127.3%[16] - Profit attributable to owners of the Company was approximately RMB 706 million, reflecting a significant year-on-year increase of approximately 113%[25] - Basic and diluted earnings per share attributable to owners of the Company were RMB 0.25, compared to RMB 0.11 during the same period last year[25] - The profit and total comprehensive income for the period was RMB 462,626, compared to RMB 331,821 in the previous period, representing a year-over-year increase of approximately 39.4%[165] Assets and Liabilities - Total assets as of June 30, 2019, amounted to RMB 95,006 million, an increase of RMB 4,776 million from RMB 90,230 million at the end of 2018, representing a growth of approximately 5.3%[16] - Total liabilities were RMB 80,694 million, up RMB 4,409 million from RMB 76,285 million at the end of 2018, reflecting an increase of approximately 5.8%[16] - Total equity as of June 30, 2019, was RMB 14,312 million, an increase of RMB 367 million from RMB 13,945 million at the end of 2018, indicating a growth of approximately 2.6%[16] - Current assets totaled RMB 69,176,175, up from RMB 60,909,342 at the end of 2018, indicating an increase of approximately 13.2%[160] - Total liabilities reached RMB 80,694,485, up from RMB 76,285,462, indicating a growth of 5.3%[163] - Total equity amounted to RMB 14,311,525, an increase from RMB 13,944,738 at the beginning of the year, reflecting a growth of approximately 2.6%[165] Revenue Sources - Revenue from property sales was approximately RMB 5,457 million, an increase of about 9% from RMB 4,990 million in the same period last year[26] - The hotel and related services segment generated revenue of RMB 73,673, an increase from RMB 61,755, reflecting a growth of approximately 19%[25] - Property management and other services revenue increased to RMB 236,206, up from RMB 227,092, marking a growth of approximately 4%[25] - Lease of properties revenue rose to RMB 34,516, compared to RMB 22,681, representing an increase of approximately 51%[25] Sales and Contracts - Contracted sales amounted to approximately RMB 25,605 million, with a total contracted gross floor area sold of 1,240,369 sq.m[24] - The contracted sales of the Company amounted to approximately RMB 25,605 million, an increase of approximately RMB 10,290 million or 67% compared to the same period last year[36] - The main sources of contracted sales were from key areas such as the Pan-Yangtze River Delta and Pan-Pearl River Delta, with Shanghai, Jiangsu, and Guangxi accounting for 45%, 16%, and 13% of total contracted sales respectively[37] Land Acquisition and Development - The Group strategically increased its quality land bank in cities of the Pan-Yangtze River Delta and the Belt and Road regions during the review period[44] - In March 2019, the Group won a bid for land parcels in Nanning, Guangxi Province for approximately RMB661 million, with a total GFA of approximately 911,000 sq.m.[45] - In April 2019, the Group acquired a plot in Tongxiang for approximately RMB483 million, with a total GFA of approximately 216,000 sq.m.[50] - The Group further acquired a land parcel in Dantu District, Zhenjiang City for approximately RMB561 million, with a total GFA of approximately 150,400 sq.m.[51] - In May 2019, the Group acquired a plot in Kunming for approximately RMB1,532 million, with a total GFA of approximately 418,300 sq.m.[52] Strategic Initiatives - The company aims to continue expanding its market presence and enhancing its product offerings in the upcoming periods[16] - The management is focused on strategic initiatives to improve operational efficiency and drive future growth[16] - The Group aims to achieve a sales target of RMB 100 billion while expanding its presence in high-end residential markets and diversifying into sectors like cultural tourism and healthcare[63] Employee and Governance - The Group employed a total of 3,632 employees as of June 30, 2019, an increase from 3,411 employees in the same period of 2018[104] - The company has implemented a performance-linked reward system to motivate employees, including year-end bonuses for outstanding performers[105] - The Company has complied with the corporate governance code provisions, except for specific provisions A.2.1, A.4.2, and E.1.2[129] Cash Flow and Financing - Net cash from operating activities for the six months ended June 30, 2019, was RMB 3,447,193, a significant increase from RMB 914,411 in 2018, representing a growth of approximately 276%[168] - The company reported net cash used in financing activities of RMB (1,819,334) for the first half of 2019, compared to a net cash inflow of RMB 7,831,762 in the same period of 2018[168] - Cash and cash equivalents as of June 30, 2019, amounted to RMB 7,078,536, up from RMB 2,577,216 at the end of the previous year, indicating a substantial increase[168] Accounting Policies - The Group applies the short-term lease recognition exemption for leases of office equipment with a term of 12 months or less, which do not contain a purchase option[188] - Right-of-use assets are recognized at the commencement date of the lease and measured at cost, less any accumulated depreciation and impairment losses[190] - Key changes in accounting policies are a result of the application of IFRS 16 Leases[197]