Financial Performance - Revenue for the first half of 2024 was RMB 6,330,593 thousand, a decrease from RMB 8,232,782 thousand in the first half of 2023, representing a decline of approximately 23.1%[1] - Gross profit for the first half of 2024 was RMB 857,772 thousand, down from RMB 1,583,602 thousand in the same period last year, indicating a decrease of about 45.9%[1] - The net loss for the first half of 2024 was RMB 500,366 thousand, compared to a profit of RMB 33,498 thousand in the first half of 2023, marking a significant shift in performance[2] - Total revenue for the six months ended June 30, 2024, was RMB 6,664,238 thousand, a decrease from RMB 8,800,698 thousand for the same period in 2023, representing a decline of approximately 24.3%[12][13] - The basic loss per share for the first half of 2024 was RMB (0.17), compared to earnings per share of RMB 0.03 in the first half of 2023[2] - The company reported a loss attributable to shareholders of approximately RMB 483,000,000, a decrease of about 689% year-on-year[32] - The company did not declare or recommend any interim dividend for the period[20] - The company reported a net loss of RMB 500,366 thousand for the six months ended June 30, 2024, compared to a profit in the previous period[12][13] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 124,030,039 thousand, down from RMB 128,236,470 thousand at the end of 2023, reflecting a decrease of approximately 3.4%[4] - Total liabilities as of June 30, 2024, were RMB 105,158,728 thousand, slightly down from RMB 108,178,097 thousand at the end of 2023, indicating a decrease of about 1.9%[4] - Non-current liabilities decreased to RMB 5,213,455 thousand as of June 30, 2024, from RMB 8,631,406 thousand at the end of 2023, a reduction of about 39.5%[4] - The total amount of receivables as of June 30, 2024, is RMB 20,212,862, down from RMB 22,400,328 as of December 31, 2023[24] - The total accounts payable as of June 30, 2024, is RMB 54,133,817, compared to RMB 54,402,412 as of December 31, 2023[27] Cash Flow and Liquidity - The company's cash and cash equivalents, including restricted bank deposits, totaled RMB 905,461 thousand and RMB 977,233 thousand as of June 30, 2024, compared to RMB 1,121,610 thousand and RMB 1,717,941 thousand at the end of 2023, indicating a decline in liquidity[3] - The cash and cash equivalents balance, including restricted cash, was approximately RMB 1,883,000,000[32] - The company aims to enhance cash flow management and optimize its debt structure to maintain a healthy financial position[43] Market and Operational Strategy - The management acknowledges significant uncertainty regarding the ability to implement plans and measures due to volatility in the Chinese real estate market[6] - The group plans to adjust sales and pre-sale activities to better respond to market demand and achieve the latest budgeted sales and pre-sale amounts[5] - The company is actively responding to new real estate policies and optimizing strategies to strengthen sales in key regions and projects[39] - The company aims to deepen its business layout and enhance brand influence through the "2+2" innovative service model, aligning closely with customer needs[41] Construction and Development - The company will continue to monitor the construction progress of its real estate development projects to ensure timely completion and delivery to customers[5] - The company has implemented effective measures to ensure construction progress and high-quality delivery commitments amid market and policy pressures[34] - The company is committed to enhancing operational capabilities in the Yangtze River Delta and Greater Bay Area while adopting a cautious investment strategy[40] Investment and Fair Value - The fair value loss on equity investments was RMB (2,518) thousand for the first half of 2024, contrasting with a gain of RMB 1,270 thousand in the same period last year[2] - The company recorded a fair value loss on investment properties of approximately RMB 592,000,000, compared to a loss of RMB 389,000,000 in the same period last year[50] - The fair value of investment properties decreased from RMB 9,554,000 (as of January 1, 2024) to RMB 8,962,250 (as of June 30, 2024)[22] Employee and Governance - The group employed a total of 2,543 employees as of June 30, 2024, with 1,029 employees working in property development[58] - The company has adhered to the corporate governance code, with the roles of chairman and CEO combined from May 17, 2024, to June 30, 2024[61] Future Outlook - The government is expected to continue implementing supportive policies to positively impact future real estate sales[31] - The company plans to accelerate transformation and embrace industry changes while exploring new opportunities for diversified development[42]

Financial Performance - Revenue for 2023 was RMB 24,933 million, a decrease of RMB 1,681 million (approximately 6.3%) from RMB 26,614 million in 2022[8]. - Gross profit for 2023 was RMB 2,570 million, down RMB 1,529 million (approximately 37.3%) compared to RMB 4,099 million in 2022[8]. - The company reported a loss for the year of RMB 1,769 million, a decline of RMB 2,549 million from a profit of RMB 780 million in 2022[8]. - Total assets decreased to RMB 128,236 million in 2023, down RMB 21,415 million (approximately 14.3%) from RMB 149,651 million in 2022[10]. - Total liabilities were RMB 108,178 million, a reduction of RMB 18,260 million (approximately 14.4%) from RMB 126,438 million in 2022[10]. - Total equity decreased to RMB 20,058 million, down RMB 3,155 million (approximately 13.6%) from RMB 23,213 million in 2022[10]. - The net loss attributable to the owners of the Group was approximately RMB 1,752 million, reflecting a decrease of approximately 464%[162]. - The board does not recommend payment of a final dividend for the twelve months ended December 31, 2023[162]. Revenue Sources - Sales of properties accounted for 95.5% of total revenue, totaling RMB 23,800 million, a decrease of RMB 1,877 million (approximately 7.3%) from RMB 25,677 million in 2022[11]. - Property management and other services revenue increased by RMB 184 million (approximately 29.8%) to RMB 801 million in 2023[11]. - Rental income rose by RMB 12 million (approximately 4.6%) to RMB 271 million in 2023[11]. - The average selling price was approximately RMB 12,952 per square meter, with total revenue from property sales around RMB 23,800 million, a decrease of approximately 7.3% from the previous year[166]. - The average contracted selling price during the period was approximately RMB 11,012/sq.m.[174]. Market Conditions - China's real estate investment declined by 9.6% in 2023 compared to 2022, and new construction commencement plummeted by 20.9%[19]. - Nearly 90% of China's top 100 listed real estate companies experienced a shrink in market capitalization in 2023[19]. - The global GDP growth rate for 2023 was 2.6%, while China's GDP growth rate was 5.2%[18]. Strategic Initiatives - The company aims to strategically deepen its land bank in the Yangtze River Delta and Pan-Pearl River Delta regions, having developed projects in 37 cities across 9 provinces[3]. - Greenland HK focused on innovative sales and marketing strategies to enhance efficiency and reduce losses amid a challenging real estate market[26]. - The company implemented a series of effective measures to maintain overall stability in production and operation[26]. - Greenland HK's strategic focus remains on first-tier cities in the Yangtze River Delta and Greater Bay Area, adopting a prudent investment strategy for long-term stability[33]. - The Group's strategic focus includes reshaping sales momentum, achieving high-quality delivery, and expanding funding sources through a multi-channel approach[32]. Project Development - In 2023, Greenland HK delivered over 3 million square meters of real estate, with 465,000 square meters delivered ahead of schedule[20]. - The Group maintained a high-quality land bank of approximately 19 million square meters as of December 31, 2023, sufficient to support future development needs[38]. - The company has a portfolio of 30 projects in Jiangsu across 9 cities, 9 projects in Zhejiang across 6 cities, and 38 projects in Guangdong across 12 cities[61]. - The company is focused on expanding its property development portfolio, with a significant number of projects in key urban areas across China[61]. Customer Engagement and Marketing - The Southern China region launched the "30-Day Refund for No Reason" campaign, enhancing customer trust and participation in marketing activities[31]. - The Group's marketing initiatives included over 1,250 activities for owners' circles and a creative photography contest that generated over 1.05 million discussions on Douyin[31]. - The Group emphasized the integration of new media platforms to improve customer engagement and drive property sales[177]. - The Group launched six series of IP products, focusing on quality and innovative construction processes[176]. Awards and Recognition - The Group won a total of 19 industry awards in 2023, including 5 international awards and 14 domestic awards[161]. - Greenland HK's first intelligent construction project, the Yancheng Dafeng Distillery Demonstration Center, received the highest honor in its category at the 10th Architectural Creation Award[161]. Future Outlook - Greenland HK's development strategy for the next five years includes optimizing structure, excelling in core business, strengthening coordination, and diversifying development[53]. - The company plans to develop smart manufacturing and property improvement services in a coordinated manner alongside its real estate business[53]. - Greenland HK is committed to fulfilling social responsibilities and contributing to sustainable development as part of its corporate culture[54].

Financial Performance - Total revenue for the fiscal year 2023 was RMB 24,932,665, a decrease of 6.36% from RMB 26,614,317 in 2022[33] - Gross profit for 2023 was RMB 2,570,066, down 37.3% from RMB 4,098,564 in the previous year[33] - The company reported a net loss of RMB 1,769,176 for 2023, compared to a profit of RMB 780,445 in 2022[33] - The basic loss per share for 2023 was RMB 0.63, compared to earnings of RMB 0.17 per share in 2022[35] - Total revenue for the year ended December 31, 2023, was RMB 24,932,665,000, with revenue from customer contracts amounting to RMB 24,661,709,000[78] - The company reported a loss attributable to shareholders of RMB (1,751,863) thousand in 2023, a significant decrease from a profit of RMB 480,904 thousand in 2022[120] - The income tax expense for 2023 was RMB 1,168,765 thousand, down from RMB 1,489,430 thousand in 2022, reflecting a reduction of about 21.5%[115] - The company did not propose any dividend distribution for 2023, consistent with the previous year where no dividends were suggested[119] - The company reported a total of RMB 54,402,412 in accounts payable and other payables, reflecting a stable liability structure[36] Assets and Liabilities - The total assets decreased to RMB 128,236,470 in 2023 from RMB 149,650,517 in 2022, representing a decline of 14.3%[26] - Current assets decreased to RMB 108,620,908 in 2023 from RMB 128,182,985 in 2022, a decline of 15.3%[26] - The company’s total liabilities increased to RMB 108,620,908 in 2023 from RMB 127,691,678 in 2022, a rise of 6.5%[26] - Total equity increased from RMB 20,058,373 to RMB 23,212,387, representing a growth of approximately 15.4%[36] - The total amount of deferred tax liabilities and interest-bearing loans in non-current liabilities was RMB 6,900,840 and RMB 370,826 respectively, showing a significant portion of the total liabilities[36] - The net debt ratio increased to approximately 58% in 2023 from 48% in 2022, with total cash and cash equivalents amounting to approximately RMB 2,840 million[173] Market Conditions and Strategy - The real estate market in China experienced a 9.6% year-on-year decline in development investment, with residential investment down by 9.3%[18] - The company anticipates a challenging recovery in the real estate sector, with ongoing debt crises and weak consumer confidence impacting sales[18] - The company aims to enhance risk management and financial control to support high-quality development amidst ongoing market challenges[15] - The company has adjusted its strategy to focus on asset disposal and innovative marketing approaches to improve project profitability and operational efficiency[15] - The company plans to explore long-term rental market development as part of its strategy to stabilize the real estate market[19] Operational Performance - The total construction area sold and delivered in 2023 was 1,819,832 square meters, a decrease of approximately 22% compared to the same period last year[140] - The average selling price was approximately RMB 12,952 per square meter, with total property sales revenue amounting to approximately RMB 23,800,000,000, a decrease of about 7.3% year-on-year[140] - The company focused on enhancing product competitiveness and market planning, achieving growth in both scale and efficiency in its strategic business areas such as long-term rentals and commercial properties[150] - The group delivered projects in 2023 that received positive feedback from the community, maintaining good delivery and operational capabilities[131] - The company is actively integrating new media platforms to enhance online traffic and customer engagement, aiming to drive offline sales[148] Risk Management and Compliance - The company faces significant uncertainty regarding its ability to continue as a going concern, dependent on successful sales and financing arrangements[68] - The company’s ability to obtain continued support from banks for loan extensions and new funding sources is critical for its operations[68] - The company has maintained compliance with corporate governance codes, with the chairman and CEO roles combined for efficiency from January 1, 2023, to June 15, 2023[186] - The company will continue to monitor the RMB to USD exchange rate and take appropriate measures to hedge foreign exchange risks[197] Employee and Operational Changes - The company employed a total of 2,775 employees in 2023, down from 3,014 employees in 2022, with 1,185 employees working in property development[182] - The company has implemented a "quality renewal, service renewal" initiative, completing 312 renovations across 19 projects[136] - The group has developed six series of IP products, focusing on quality and innovation in construction and design[132]

Financial Performance - The total revenue for the fiscal year 2023 was RMB 24,932,665, a decrease of 6.3% compared to RMB 26,614,317 in 2022[3]. - The gross profit for 2023 was RMB 4,098,564, representing a gross margin of approximately 16.4%[3]. - The net loss attributable to the owners of the company for 2023 was RMB 1,769,176, compared to a profit of RMB 780,445 in 2022, indicating a significant decline[5]. - The total comprehensive loss for the year was RMB 1,773,887, compared to a comprehensive income of RMB 868,983 in the previous year[5]. - The financing income decreased to RMB 19,399 in 2023 from RMB 57,671 in 2022, reflecting a decline of 66.4%[3]. - The company reported a significant increase in administrative expenses, which rose to RMB 497,769 in 2023 from RMB 621,047 in 2022[3]. - The company reported a net loss before tax of RMB (600,411) thousand in 2023, a significant decline from a profit of RMB 2,269,875 thousand in 2022[59]. - The total income tax expense for the year was RMB 1,168,765 thousand, down from RMB 1,489,430 thousand in the previous year, representing a decrease of approximately 21.5%[59]. - The company’s capitalized interest expense for the year was RMB 100,044 thousand, down from RMB 132,260 thousand in the previous year, reflecting a decrease of approximately 24.3%[52]. - The basic earnings per share for 2023 showed a loss of RMB 1,751,863,000, compared to a profit of RMB 480,904,000 in 2022[66]. Assets and Liabilities - The total assets as of December 31, 2023, were RMB 128,236,470, down from RMB 149,650,517 in 2022[8]. - Total equity as of December 31, 2023, is RMB 20,058,373,000, a decrease of 13.4% from RMB 23,212,387,000 in 2022[9]. - Total liabilities amount to RMB 108,178,097,000, down 14.5% from RMB 126,438,130,000 in the previous year[9]. - Non-current liabilities total RMB 8,631,406,000, an increase of 17.5% compared to RMB 7,349,992,000 in 2022[9]. - Current liabilities are RMB 99,546,691,000, a decrease of 16.4% from RMB 119,088,138,000 in 2022[9]. - The net amount of current assets is RMB 9,074,217,000, slightly down from RMB 9,094,847,000 in the previous year[9]. - The total assets less current liabilities stand at RMB 28,689,779,000, down from RMB 30,562,379,000 in 2022[9]. - The company’s total equity attributable to owners decreased from RMB 14,002,044,000 in 2022 to RMB 12,296,908,000 in 2023[9]. - The company has a land reserve of approximately 19,000,000 square meters as of December 31, 2023, concentrated in core cities, sufficient to support future development needs[99]. - The net debt ratio is approximately 58%, up from 48% as of December 31, 2022[117]. Cash Flow and Liquidity - The company’s cash and cash equivalents decreased to RMB 3,011,771 in 2023 from RMB 1,717,941 in 2022[8]. - The group has interest-bearing loans amounting to RMB 7,500,000,000, which are due within one year after the reporting period[26]. - The group's bank balances and cash total RMB 1,718,000,000, while there are still outstanding interest-bearing loans of RMB 1,709,000,000 that have not been repaid according to the repayment schedule[26]. - The group has been negotiating with relevant banks to extend the repayment dates of these loans, indicating potential liquidity pressures[26]. - The group faces operational and liquidity pressures, and without measures to improve cash flow, it may not have sufficient working capital to continue operations[27]. - The management has implemented various plans and measures to alleviate cash flow pressure, but there is substantial uncertainty regarding their effectiveness due to volatility in the real estate sector in the People's Republic of China[133]. - The group has obtained a loan amount of RMB 250,000,000 from banks to alleviate liquidity pressure[28]. - The group has not repaid RMB 1,709,000,000 of its interest-bearing loans by the scheduled repayment date, indicating significant liquidity pressure[133]. Market and Operational Strategy - The company plans to focus on market expansion and new product development in the upcoming fiscal year[3]. - The company plans to focus on optimizing existing assets and enhancing marketing strategies to improve operational efficiency[80]. - The company aims to strengthen product competitiveness and enhance brand promotion in a challenging market environment[91]. - The company is actively expanding its commercial operations, with the opening of new projects such as the Nanning ASEAN Colorful Street[95]. - The company has focused on optimizing existing assets and enhancing project quality to boost customer confidence[91]. - The company has implemented a "1+2+4" delivery management system to enhance delivery standards and customer trust[90]. - The company anticipates that refinancing of several similar loans will be completed in the short term[26]. Real Estate Market Conditions - The real estate market in China faced significant challenges in 2023, with a 9.6% year-on-year decline in real estate development investment[76]. - The government has implemented policies to stabilize the real estate market, including lowering down payments and interest rates[78]. - The management acknowledges significant uncertainty regarding the implementation of plans and measures due to volatility in the Chinese real estate industry[30]. Awards and Recognition - The company received 19 industry awards in 2023, including 5 international awards and 14 domestic awards[81]. Accounting and Compliance - The company has implemented new and revised International Financial Reporting Standards (IFRS) with no significant impact on financial position or performance[13]. - The independent auditor has issued an unqualified opinion on the consolidated financial statements, affirming compliance with International Financial Reporting Standards[132].

Sales Performance - Contracted sales for the first six months of 2023 amounted to approximately RMB 8,970 million, representing a 9.62% increase compared to the same period last year[14] - The contracted GFA sold during the period was approximately 760,473 sq.m., a decrease of 7.43% year-over-year[14] - The average selling price for the period was approximately RMB 11,795 per sq.m.[14] - Key regions contributing to contracted sales include Jiangsu (35%), Guangdong (34%), Zhejiang (17%), and Guangxi (10%)[14] - Contract sales for the first half of 2023 reached approximately RMB 8.97 billion, with a total sold contracted gross floor area of approximately 760,473 square meters[37] - Property sales revenue increased by 68% year-on-year to approximately RMB7,790 million in 1H2023, accounting for 95% of total revenue[20][21] - Property sales increased by RMB 3,139,844 thousand (67.5%) to RMB 7,790,022 thousand compared to the previous period[196] Financial Position - Total assets as of 30 June 2023 were RMB 144,267 million, a decrease of RMB 5,384 million compared to 31 December 2022[6] - Total liabilities as of 30 June 2023 were RMB 121,789 million, a decrease of RMB 4,649 million compared to 31 December 2022[6] - Total equity as of 30 June 2023 was RMB 22,478 million, a decrease of RMB 735 million compared to 31 December 2022[6] - Total equity decreased to approximately RMB22,478 million as of 30 June 2023, down from approximately RMB23,212 million at the end of 2022[24] - Net gearing ratio increased to 51% as of 30 June 2023, up from 48% at the end of 2022[24] - Total cash and cash equivalents (including restricted cash) amounted to approximately RMB3,619 million as of 30 June 2023[24] - Total liabilities decreased to RMB 121,789,370 thousand as of 30 June 2023, compared to RMB 126,438,130 thousand at the end of 2022[94] - Total equity and liabilities decreased to RMB 144,267,014 thousand as of 30 June 2023, down from RMB 149,650,517 thousand at the end of 2022[94] - Total assets decreased to RMB 144,267,014,000 from RMB 149,650,517,000, reflecting a reduction in both current and non-current assets[131] Revenue and Profit - Total revenue for the first half of 2023 was approximately RMB 8.233 billion, a 64% increase compared to the same period last year[37] - Profit attributable to owners of the company for the first half of 2023 was approximately RMB 82 million, a 23% decrease year-on-year[37] - Gross profit increased to approximately RMB 1.584 billion in the first half of 2023, up from approximately RMB 930 million in the same period last year, with a stable gross profit margin of 19%[48] - Revenue for the six months ended 30 June 2023 increased to RMB 8,232,782 thousand, up from RMB 5,023,101 thousand in the same period in 2022[113] - Gross profit for the six months ended 30 June 2023 was RMB 1,583,602 thousand, compared to RMB 929,586 thousand in the same period in 2022[113] - Profit for the period was RMB 33,498 thousand, up from RMB 11,532 thousand in the same period in 2022[113] - Basic earnings per share for the six months ended 30 June 2023 were RMB 0.03, compared to RMB 0.04 in the same period in 2022[114] - The company recognized a gain on disposal of interests in subsidiaries of RMB 4,180 thousand in 2023, compared to no gain in 2022[113] - Total comprehensive income for the period was RMB 193,155 thousand, compared to RMB 98,823 thousand in the previous period[96] - Profit attributable to owners of the company for the six months ended 30 June 2023 was RMB 81,910 thousand, down from RMB 105,864 thousand in the same period in 2022[152] - Total revenue increased by RMB 3,209,681 thousand (63.9%) to RMB 8,232,782 thousand[196] Costs and Expenses - Cost of sales rose by 62% to approximately RMB6,649 million in 1H2023, primarily due to land costs, construction costs, and sales tax[22] - Administrative expenses decreased by 23% to approximately RMB207 million, while selling and marketing costs decreased by 8% to approximately RMB296 million in 1H2023[23] - Finance costs decreased from approximately RMB99 million in 1H2022 to approximately RMB71 million in 1H2023[23] - The Group recorded a fair value loss on investment properties of approximately RMB389 million in 1H2023, compared to a loss of approximately RMB14 million in 1H2022[23] - Cost of properties sold surged to RMB 6,288,663 thousand in 2023, up from RMB 3,647,316 thousand in 2022[53] - Finance costs decreased to RMB 71,321 thousand in 2023 from RMB 98,573 thousand in 2022[113] - Selling and marketing expenses decreased to RMB 296,105 thousand in 2023 from RMB 320,543 thousand in 2022[113] - Administrative expenses decreased to RMB 206,763 thousand in 2023 from RMB 268,602 thousand in 2022[113] - The company reported a loss on the change in fair value of investment properties of RMB 389,148 thousand in 2023, compared to RMB 14,281 thousand in 2022[113] - Current tax expenses increased to RMB 535,868 thousand, up from RMB 320,667 thousand in the previous year[76] - PRC Enterprise Income Tax (EIT) expense rose to RMB 327,852 thousand from RMB 229,142 thousand[76] - PRC Land Appreciation Tax (LAT) expense increased significantly to RMB 208,016 thousand from RMB 91,525 thousand[76] Strategic Development and Operations - The company is focusing on enhancing delivery and operating capabilities, adhering to the central government's call for "guaranteeing property delivery, guaranteeing people's livelihood, and guaranteeing stability"[14] - The company is integrating new media platforms to enhance online customer engagement and drive offline sales[15] - Future strategic development will focus on green construction, energy conservation, emission reduction, and low-carbon development, aiming for stable and sustainable growth[18] - The Group focused on cost reduction and efficiency enhancement by optimizing construction practices, materials, and craftsmanship, contributing to overall cost savings[41][42] - The Group emphasized improving product quality and optimizing display areas to boost customer confidence in purchases[41] - The Group plans to deepen transformation and upgrading, improve "old arenas," and actively open up "new arenas" as part of its development strategy for the next three years[44] - The Yiwu Greenland Epoch Gate project, with a GFA of approximately 230,000 square meters, officially commenced operation on 29 April 2023, introducing over 260 brands[44] Employee and Shareholder Information - The Group employed a total of 2,792 employees as of 30 June 2023, down from 3,250 employees in the same period of 2022[30] - Staff costs decreased to RMB 145,226 thousand in 2023 from RMB 205,106 thousand in 2022, with salaries and other benefits dropping to RMB 168,527 thousand from RMB 222,342 thousand[53] - The company's largest shareholder, Gluon Xima International Limited, holds 59.11% of the issued shares[149] - HSBC International Trustee Limited holds 12.84% of the company's issued shares, acting as a trustee[149] - Share-based payment outstanding shares remained unchanged at 22,697 thousand shares with a book value of RMB 49,279 thousand[186] Investment Properties and Assets - Investment properties under development decreased to RMB 10,387,000 thousand as of 30 June 2023, down from RMB 11,181,000 thousand at the start of the year[57] - The fair value of investment properties as of 30 June 2023 was determined by an independent valuer, Cushman & Wakefield[57][60] - Additions to investment properties amounted to RMB 300,205 thousand during the six months ended 30 June 2023[57] - Disposals of investment properties totaled RMB 705,057 thousand during the same period[57] - Total non-current assets decreased to RMB 21,049,080,000 from RMB 21,467,532,000, reflecting a slight decline in long-term investments and property holdings[131] - Current assets decreased to RMB 123,217,934,000 from RMB 128,182,985,000, primarily due to a reduction in properties under development and bank balances[131] - Properties under development remained stable at RMB 29,158,631 thousand compared to RMB 29,122,459 thousand at the end of 2022[182] Liabilities and Loans - The Group provided guarantees to banks amounting to approximately RMB21,982 million as of 30 June 2023, down from approximately RMB25,599 million at the end of 2022[28] - Total liabilities for property sales decreased to RMB 148,489,340 thousand from RMB 152,820,217 thousand[70] - Total reportable segment liabilities decreased to RMB 121,789,370 thousand from RMB 126,438,130 thousand[70] - Non-current liabilities decreased to RMB 5,950,696 thousand as of 30 June 2023, down from RMB 7,349,992 thousand at the end of 2022[94] - Current liabilities decreased to RMB 115,838,674 thousand as of 30 June 2023, compared to RMB 119,088,138 thousand at the end of 2022[94] - Interest-bearing loans under non-current liabilities decreased to RMB 4,354,224 thousand as of 30 June 2023, down from RMB 5,406,771 thousand at the end of 2022[94] - Contract liabilities decreased to RMB 41,632,431 thousand as of 30 June 2023, compared to RMB 44,798,581 thousand at the end of 2022[94] - The company's secured bank loans amounted to RMB 13,640,408 thousand, and unsecured bank loans were RMB 1,391,188 thousand as of 30 June 2023[158] - Loans repayable within one year amounted to RMB 10,677,372 thousand, a slight increase from RMB 10,315,099 thousand at the end of 2022[181] - Loans repayable within more than one year but not exceeding two years decreased to RMB 4,274,148 thousand from RMB 5,187,333 thousand[181] Cash Flow and Financing - Net cash used in operating activities was RMB 203,910 thousand for the six months ended 30 June 2023, compared to RMB 149,604 thousand in the same period in 2022[120] - Proceeds from disposal of investment properties and property, plant, and equipment amounted to RMB 705,129 thousand for the six months ended 30 June 2023, down from RMB 857,857 thousand in the same period in 2022[120] - Repayments from related parties totaled RMB 613,362 thousand for the six months ended 30 June 2023, up from RMB 537,643 thousand in the same period in 2022[120] - Net cash used in investing activities was RMB 107,552 thousand for the six months ended 30 June 2023, compared to net cash from investing activities of RMB 3,595,993 thousand in the same period in 2022[120] - Net cash used in financing activities was RMB 962,016 thousand for the six months ended 30 June 2023, compared to RMB 5,530,842 thousand in the same period in 2022[120] - Cash and cash equivalents as at 30 June 2023 were RMB 1,739,814 thousand, down from RMB 5,348,096 thousand as at 30 June 2022[120] - Dividends paid to perpetual securities holders amounted to RMB 41,413 thousand for the six months ended 30 June 2023[118] - Distribution paid to non-controlling shareholders of subsidiaries was RMB 728,892 thousand for the six months ended 30 June 2023[118] Segment Performance - External sales revenue for the six months ended 30 June 2023 was RMB 4,650,178 thousand, with total segment revenue reaching RMB 6,147,869 thousand[125] - Segment loss for property sales was RMB 215,332 thousand, while property leasing and hotel services generated profits of RMB 50,822 thousand and RMB 169,077 thousand respectively[125] - Total segment assets as of 30 June 2023 amounted to RMB 177,695,134 thousand, with property sales contributing RMB 155,624,911 thousand[127] - Inter-segment sales for the period were RMB 1,124,768 thousand, primarily from property management and other services[125] - Share of results from joint ventures contributed RMB 37,358 thousand to the period's profit[125] - Segment assets for hotel and related services increased to RMB 2,076,253 thousand as of 30 June 2023, up from RMB 1,691,317 thousand at the end of 2022[127] - External sales revenue for properties and leasing reached RMB 7,790,022,000, contributing significantly to the total segment revenue of RMB 8,800,698,000[134] - Segment profit for property sales was RMB 300,260,000, while property leasing incurred a loss of RMB 262,214,000[134] - Property management and other services revenue increased by RMB 80,253 thousand (32.9%) to RMB 323,935 thousand[196] - Lease of properties revenue slightly increased by RMB 263 thousand (0.3%) to RMB 98,194 thousand[196] - Hotel and related services revenue decreased by RMB 10,679 thousand (34.1%) to RMB 20,631 thousand[196] Other Financial Information - Depreciation of property, plant and equipment increased to RMB 28,736 thousand in 2023 from RMB 28,430 thousand in 2022[53] - Earnings for basic earnings per share decreased to RMB 81,910 thousand in 2023 from RMB 105,864 thousand in 2022[56] - No dividends were paid, declared, or proposed during the interim period[55] - The weighted average number of ordinary shares for basic earnings per share remained constant at 2,769,188 thousand shares[56] - Trade receivables decreased to RMB 371,109 thousand as of 30 June 2023, down from RMB 401,785 thousand at the end of 2022[66] - Other receivables, net of allowance for credit losses, decreased to RMB 19,187,550 thousand from RMB 20,009,887 thousand over the same period[66] - Net foreign exchange loss for the six months ended 30 June 2023 was RMB 91,385 thousand, compared to RMB 131,826 thousand in the same period of 2022[72] - Interest expenses on interest-bearing loans decreased to RMB 406,843 thousand from RMB 519,986 thousand year-over-year[74] - Trade and other receivables overdue for more than 365 days stood at RMB 223,989 thousand as of 30 June 2023, a slight decrease from RMB 229,730 thousand at the end of 2022[159] - Trade payables due within 0–90 days were RMB 17,425,156 thousand, while those overdue for more than 365 days were RMB 5,267,056 thousand as of 30 June 2023[167] - The carrying amount of shares held for the share award scheme remained unchanged at RMB 49,279,000 as of 30 June 2023[168] - Rental income from leases amounted to RMB 98,194 thousand in the first half of 2023, slightly higher than RMB 97,931 thousand in the same period in 2022[154] - The company's total interest-bearing loans stood at RMB 15,031,596 thousand as of 30 June 2023, a decrease from RMB 15,721,870 thousand at the end of 2022[158] - Trade payables decreased slightly to RMB 26,662,493 thousand from RMB 27,332,409 thousand[182] - Retained earnings as at 30 June 2023 were RMB 8,590,473 thousand, up from RMB 14,002,044 thousand as at 1 January 2023[118] - Total comprehensive income for the period was RMB 82,863 thousand, including other comprehensive income of RMB 953 thousand[118] - The company applied new and amended IFRSs, including IFRS 17 (Insurance Contracts) and amendments to IAS 8 and IAS 12, effective from 1 January 2023[121] - The company's condensed consolidated financial statements were prepared in accordance with IAS 34 and Hong Kong Stock Exchange listing rules[121] - Impairment loss on trade receivables was RMB 199,000, while other receivables saw a reversal of RMB 5,716,000[137]

[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]