Financial Performance - The Group achieved record-high contracted sales of RMB 75.2 billion, representing an increase of approximately 18% year-on-year[20]. - Profits attributable to shareholders reached a record high of RMB 4.35 billion, reflecting a year-on-year growth of 15%[21]. - The core profit attributable to shareholders amounted to RMB 4.59 billion, representing a year-on-year increase of 14%[21]. - Revenue for the year ended 31 December 2020 increased to RMB16,321.7 million, up from RMB11,710.2 million in 2019, primarily due to a RMB4,498.3 million increase in property sales revenue[41][45]. - Profit attributable to owners of the Company for 2020 was RMB4,354.5 million, compared to RMB3,799.6 million in 2019, reflecting a strong performance[37]. - Core profit attributable to owners of the Company rose to RMB4,678.4 million from RMB4,100.8 million in the previous year[37]. - Profit for the year increased to RMB 4,834,849,000 in 2020 from RMB 4,503,651,000 in 2019, reflecting a growth of about 7.3%[87]. - The Group's profit before tax for 2020 was RMB 7,266,147,000, slightly down from RMB 7,428,965,000 in 2019, a decrease of about 2.2%[87]. - Non-controlling interests in profit for the year were RMB 480,301,000, down from RMB 704,023,000 in 2019, a decline of approximately 31.8%[87]. Revenue and Sales - The cash collection ratio from contracted sales for the current year was over 79%, providing solid cash flow[20]. - The total contracted sales area was 3,387,600 square meters, reflecting an 8% increase from the previous year[118]. - The average selling price in 2020 was approximately RMB 22,200 per square meter, a year-on-year increase of 9%[118]. - Total rental/management fees revenue reached approximately RMB 795 million in 2020, representing an 18% increase compared to 2019[121]. - Revenue from the property investment and management segment increased to RMB795.0 million, representing 5% of total revenue, compared to RMB671.4 million, which was 6% of total revenue[61]. Assets and Liabilities - Total assets as of 31 December 2020 were RMB64,407.1 million, compared to RMB63,169.6 million in 2019[38]. - Total liabilities decreased to RMB43,308.1 million in 2020 from RMB45,272.2 million in 2019[38]. - The gearing ratio increased to 87% in 2020 from 57% in 2019, indicating higher leverage[38]. - The Group's total shareholders' equity increased from RMB15,047.2 million as of December 31, 2019, to RMB18,888.2 million as of December 31, 2020[64]. - The net debt increased by RMB 6,387.8 million to RMB 11,037.6 million as of December 31, 2020, resulting in a net debt ratio of 52%, up from 26% as of December 31, 2019[71]. Investments and Development - The Group has approximately 2 million square meters of business park properties under management and 1.3 million square meters of commercial properties[22]. - The Group's land bank totaled 18.63 million square meters as of December 31, 2020, with 21% located in first-tier cities[93]. - The Group acquired 34 new development sites with a total GFA of approximately 5.58 million square meters at a total cost of RMB24.1 billion, averaging RMB8,300 per square meter[24][25]. - The Group's expansion in investment and development of business parks was aggressive during the year[22]. - The Group acquired 34 land projects in 2020, with a total planned GFA of approximately 5,576,800 square meters at a total consideration of RMB 44.16 billion[115]. Corporate Governance - The Company has maintained compliance with the Corporate Governance Code throughout FY2020, with some deviations due to the COVID-19 pandemic[146]. - The Board of Directors consists of four executive Directors, two non-executive Directors, and three independent non-executive Directors[154]. - The Company has established three board committees: audit, remuneration, and nomination, each with specific written terms of reference[193]. - The Audit Committee held 2 meetings with senior management during the year, with all members attending both meetings[198]. - The Company Secretary attends all regular board meetings to advise on corporate governance and statutory compliance[170]. Management and Leadership - Mr. Huang has been the Executive Director and Chairman of the Group since November 2012, overseeing the overall operation of Gemdale Corporation[126]. - Mr. Xu has served as the Executive Director and CEO since January 2013, responsible for capital management and strategic planning[128]. - The company has extensive experience in property investment, design, construction, marketing, and corporate management, with key personnel holding advanced degrees in relevant fields[126][128][130]. - The management team has been recognized for their excellence, with Mr. Xu receiving awards for being the "Best Board Secretary" in 2011 and 2012[128]. - The Company encourages Directors to enroll in professional development courses related to corporate governance practices[181]. Market Conditions - The Chinese real estate market showed strong recovery in the second quarter of 2020 after the initial impact of the COVID-19 pandemic[16]. - The central government implemented policies to promote healthy development in the real estate market, including the "Three Red Lines Rules" introduced in August 2020[18]. - The Group's foreign currency risk exposure is considered acceptable, with most transactions conducted in RMB, and it will continue to monitor and hedge currency risks as appropriate[74]. Future Development Plans - Future development plans include a mix of residential, commercial, and industrial projects, reflecting a balanced approach to market demands[103]. - The company is actively expanding its portfolio with multiple projects in key urban areas, indicating a strategic focus on urban development[99]. - The total GFA of remaining unrecognized for sale is 3,000,000 square meters across various projects in cities like Xuzhou, Suzhou, and Kunshan[104].

Revenue and Profitability - The Group's revenue increased from RMB3,062.1 million for the six months ended June 30, 2019, to RMB5,670.2 million for the same period in 2020, representing an increase of 85.2%[21] - Revenue from property development segment was RMB5,150.4 million, accounting for 91% of total revenue, compared to RMB2,588.7 million (85% of total revenue) in the corresponding period of 2019[27] - Profit attributable to owners of the Company for the six months ended June 30, 2020, was RMB1,608.3 million, an increase of 38.8% from RMB1,158.3 million in the same period of 2019[25] - Basic earnings per share increased by 38% to RMB0.1004 for the six months ended June 30, 2020, compared to RMB0.0729 for the corresponding period in 2019[26] - The segment result for property development recorded a profit of RMB2,522.3 million, an increase of RMB732.9 million from RMB1,789.4 million in the corresponding period[27] - The increase in revenue was primarily driven by a significant increase in revenue recognized from property sales, amounting to RMB2,561.7 million[21] - The Group achieved aggregated contracted sales of RMB 31,180 million for the six months ended 30 June 2020, representing a 17% increase compared to the same period in 2019[56] - The total contracted sales area was 1.34 million square meters, reflecting an 8% increase from the corresponding period in 2019[56] - The average selling price was approximately RMB 23,200 per square meter, which is an 8% increase compared to the same period in 2019[56] Expenses and Costs - Direct operating expenses rose from RMB605.8 million in the first half of 2019 to RMB692.1 million in 2020, reflecting an increase of approximately 14.3%[22] - Profit before tax increased to RMB 2,289,737, representing a 36.7% rise from RMB 1,674,990 in 2019[71] - Profit before tax was impacted by a significant increase in the cost of properties sold, which surged to RMB 3,493,486,000 from RMB 1,496,531,000, reflecting a year-over-year increase of about 133.4%[151] - The total employees benefits expenses increased to RMB 277,207,000 from RMB 254,587,000, marking a rise of approximately 8.9%[151] Financial Position and Assets - Total shareholders' funds increased from RMB 15,047.2 million as of December 31, 2019, to RMB 15,717.3 million as of June 30, 2020, driven by a profit of RMB 1,608.3 million[34] - Total assets as of June 30, 2020, amounted to RMB 61,375,637,000, while total liabilities were RMB 42,692,925,000[135] - Total non-current assets as of June 30, 2020, amounted to RMB 34,422,576, an increase from RMB 31,613,870 at the end of 2019[74] - Current assets totaled RMB 26,953,061, down from RMB 31,555,777 at the end of 2019[74] - The Group's land bank totaled 17.20 million square meters as of June 30, 2020, with approximately 20% located in first-tier cities[52] - The Group's investments in joint ventures totaled RMB 14,139,215,000[135] Cash Flow and Financing - The Group's cash and bank balances rose by RMB 1,140.9 million (23%) to RMB 6,115.5 million as of June 30, 2020, primarily due to proceeds from property sales and new borrowings[36] - The net cash from financing activities for the six months ended June 30, 2020, was RMB 1,072,944,000, a decrease from RMB 8,213,444,000 in the same period of 2019[83] - New bank and other borrowings for the period totaled RMB 1,196,354,000, compared to RMB 1,965,112,000 in the previous period[83] - The Group recorded net current liabilities of RMB 5,141,017,000 as of June 30, 2020, compared to RMB 4,384,828,000 as of December 31, 2019[90] Borrowings and Debt - Total borrowings amounted to RMB 4,167.2 million as of June 30, 2020, with interest rates ranging from 1.0% to 4.6% per annum[38] - Net debt increased by RMB 385.0 million to RMB 5,034.8 million, resulting in a net debt ratio of 27%, up from 26% at the end of 2019[38] - The Group's outstanding guarantees amounted to RMB 3,337,431,000 as of June 30, 2020, significantly up from RMB 1,623,164,000 as of December 31, 2019[47] - The Group's maximum guarantee to financial institutions for facilities granted to joint ventures was US$ 71,500,000 (equivalent to RMB 506,184,000) as of June 30, 2020[48] Market Conditions and Strategic Outlook - The outbreak of COVID-19 is anticipated to adversely impact the Chinese economy, including the real estate sector, prompting various monetary and fiscal policies from the PRC government[60] - The Group expects continued impacts from COVID-19 on the retail industry, leading to a conservative valuation approach for its right-of-use assets[30] - The demand for better housing and living environments is seen as an opportunity for companies providing green health and quality property management[60] - The Group plans to actively seek M&A opportunities to enhance scale and maximize shareholder value due to its low-gearing financial structure[60] Accounting Policies and Financial Reporting - The unaudited interim financial information is prepared in accordance with HKAS 34 Interim Financial Reporting[86] - The Group has applied revised Hong Kong Financial Reporting Standards effective from January 1, 2020, for the first time in this reporting period[91] - The Group assesses the impairment of assets based on whether an event affecting asset value has occurred and whether the carrying value can be supported by the net present value of future cash flows[108] - The Group's financial reporting is based on historical experience and expectations of future events, with significant estimates and assumptions discussed in the financial information[103] Joint Ventures and Associates - The Group's share of results from joint ventures and associates reported a profit of RMB982.8 million, up from RMB825.7 million in the same period of 2019, representing an increase of 19%[25] - The share of profits and losses of joint ventures resulted in a loss of RMB (1,020,801), compared to a loss of RMB (589,865) in the previous year, reflecting a deterioration in joint venture performance[80] Property Development and Management - The property investment and management segment's revenue increased to RMB 372.8 million, representing 7% of total revenue, compared to RMB 280.0 million (9%) in the prior year[30] - The property investment and management segment recorded a loss of RMB 56.6 million, an improvement from a loss of RMB 66.6 million in the prior year[30] - The commercial properties portfolio is expected to generate an additional RMB 1.5 billion in rental income upon completion of ongoing projects[59]

Financial Performance - The Group achieved a record high in contracted sales of RMB 63.66 billion, representing an increase of approximately 30% year-on-year[11]. - Profits attributable to shareholders reached a record high of RMB 3.8 billion, reflecting a year-on-year growth of 69%[11]. - Core profit attributable to shareholders amounted to RMB 4.01 billion, representing a year-on-year increase of 76%[11]. - The gross profit margin for the Group was 53%, a slight decrease from 58% in the previous year, but still higher than most industry players[11]. - The Group's revenue for the year ended December 31, 2019, increased to RMB 11,710.2 million, up from RMB 7,079.1 million in 2018, representing a growth of approximately 65.5%[20]. - Profit attributable to owners of the Company rose to RMB 3,799.6 million in 2019, compared to RMB 2,252.6 million in 2018, marking an increase of about 68.6%[20]. - Core profit attributable to owners of the Company reached RMB 4,010.0 million, up from RMB 2,273.0 million in the previous year, reflecting a growth of approximately 76.5%[20]. - Basic earnings per share increased by 69% to RMB0.2392 in 2019, compared to RMB0.1419 in 2018[34]. - Profit before tax for 2019 was RMB 7,428,965,000, up from RMB 4,787,694,000 in 2018, indicating a growth of about 55.4%[64]. - The profit for the year attributable to owners of the company was RMB 3,799,628,000, compared to RMB 2,252,622,000 in 2018, reflecting an increase of approximately 68.7%[64]. Dividends and Shareholder Returns - The Board proposed a final dividend of RMB 7.18 cents per ordinary share, a significant increase of 160% compared to the previous year's final dividend[12]. - Proposed final dividend is RMB0.0718 per share for 2019, up from RMB0.0275 per share in 2018, pending shareholder approval[35]. - Total shareholders' funds rose from RMB11,835.2 million as of December 31, 2018, to RMB15,047.2 million as of December 31, 2019, driven by a profit attributable to owners of RMB3,799.6 million[44]. Property Development and Investment - The Group currently has approximately 1.5 million square meters of commercial properties and plans to launch at least 3 to 4 new operating projects each year for the next three years[11]. - The Group acquired 21 new development sites with a total GFA of approximately 4.94 million square meters, including 738,000 square meters (15%) located in Beijing and Shanghai[15]. - The Group's aggressive expansion in investment and development of business projects is a key strategy moving forward[11]. - The Group anticipates mild growth in contracted sales and net profit, strengthening its market position in the real estate industry[15]. - The Group's commercial properties portfolio is expected to generate an additional RMB1.5 billion in rental income upon completion of ongoing projects[94]. Financial Position and Liabilities - Total assets as of December 31, 2019, amounted to RMB 63,169.6 million, an increase from RMB 51,987.8 million in 2018[21]. - The gearing ratio increased to 57% in 2019 from 44% in 2018, indicating a rise in financial leverage[21]. - The net debt increased by RMB2,689.3 million to RMB4,649.8 million as of December 31, 2019, with a net debt ratio rising to 26% from 14%[49]. - As of December 31, 2019, total borrowings amounted to RMB10,266.6 million, up from RMB6,061.3 million in 2018[51]. - The total liabilities as of December 31, 2019, were RMB 45,272,201,000, compared to RMB 38,117,372,000 in 2018, representing an increase of approximately 18.5%[64]. Corporate Governance - The Company has complied with all applicable code provisions of the Corporate Governance Code throughout FY2019, except for certain deviations regarding attendance at the annual general meeting[113]. - The Board of Directors consists of four executive directors, two non-executive directors, and three independent non-executive directors, ensuring a balanced composition for effective decision-making[118]. - The Company emphasizes high standards of corporate governance to optimize returns for shareholders and enhance overall performance[112]. - The Company has adopted the Model Code for Securities Transactions by Directors, and all directors complied with the required standards throughout the year[117]. - The Company has established three board committees: audit, remuneration, and nomination, each with specific written terms of reference[149]. Risk Management and Internal Control - The Group has applied appropriate accounting policies consistently and made reasonable judgments in preparing financial statements[146]. - The Audit Committee assists the Board in ensuring objectivity and credibility of financial reporting, including interim and final results[152]. - The Group's internal control systems are designed to provide reasonable assurance against material misstatement or loss[187]. - The Company engages independent consultants to review its risk management and internal control systems as necessary[185]. - The Board conducts an annual review of risk management and internal control measures, ensuring compliance and effectiveness[188]. Market Trends and Challenges - The overall property sales market in China saw slight growth in 2019, but challenges remain due to higher funding costs and tighter supply[9]. - Large-scale national players have adopted different marketing strategies to maintain sales growth amid a shrinking market for small and medium-sized players[9]. - The demand for improved housing and living environments is expected to create opportunities for the Group in the property management sector[16]. Management and Leadership - The Group's strategic planning and management are overseen by experienced executives with extensive backgrounds in property development and corporate management[96][97][98][99]. - Mr. Wei Chuanjun has been the Executive Director and CFO since October 2012, with extensive experience in property development and financial management[100]. - The Company Secretary has over 22 years of experience in accounting, treasury, finance, and mergers and acquisitions, contributing to effective corporate governance[110].

Revenue Growth - The Group's revenue increased from RMB1,726.9 million for the six months ended 30 June 2018 to RMB3,062.1 million for the six months ended 30 June 2019, representing an increase of 77.3%[9] - Revenue from property sales recognized increased by RMB1,261.8 million, contributing significantly to the overall revenue growth[9] - Revenue from the property development segment was RMB2,588.7 million, accounting for 85% of total revenue, up from RMB1,326.9 million or 77% in the same period last year[17] - The increase in revenue and profit was mainly driven by higher sales from property developments in key cities such as Suzhou, Shanghai, Wuhan, and Tianjin[13] - The Group achieved aggregated contracted sales of RMB26,168 million for the six months ended June 30, 2019, representing a 64% increase compared to the same period in 2018[47] Profitability - Profit attributable to owners of the Company rose to RMB1,158.3 million, up 93.4% from RMB598.8 million for the corresponding period in 2018[13] - Share of results from joint ventures and associates reported a profit of RMB825.7 million, an increase of 76.6% compared to RMB467.3 million in the previous year[13] - Profit in the property development segment increased to RMB1,790.0 million, compared to RMB851.3 million for the corresponding period, driven by a significant increase in property sales area delivered[17] - Profit before tax for the six months ended June 30, 2019, was RMB1,674,990, compared to RMB861,942 for the same period in 2018, representing a significant increase of 94.3%[73] - Total comprehensive income for the period was RMB1,237,668, an increase of 92.3% from RMB643,454 in the same period of 2018[63] Expenses and Costs - Direct operating expenses rose from RMB410.3 million to RMB638.2 million, an increase of 55.5%, due to expanded business operations[10] - Finance costs increased to RMB185.3 million from RMB128.0 million, reflecting higher bank borrowings and loans from related parties[12] - Administrative expenses slightly increased from RMB19.8 million to RMB22.0 million, reflecting a modest rise in operational costs[10] - The increase in financial expenses was primarily due to higher bank loans and interest payments, rising from RMB128 million to RMB185.3 million[14] - The cost of properties sold was RMB1,496,531 for the six months ended June 30, 2019, up from RMB886,274 in 2018, indicating a significant increase of 68.9%[152] Financial Position - Total shareholders' funds increased from RMB11,835.2 million as of 31 December 2018 to RMB12,564.2 million as of 30 June 2019, driven by profit attributable to owners of the Company[23] - The Group's deposits, bank, and cash balances increased by RMB1,881.0 million or 58% to RMB5,118.9 million as of 30 June 2019[24] - The net debt increased by RMB7,357.7 million to RMB9,318.2 million as of 30 June 2019, resulting in a net debt ratio of 64%, up from 14% at the end of 2018[26] - Total assets as of June 30, 2019, amounted to RMB65,760,400,000, up from RMB51,987,757,000 at the end of 2018, showing a growth of approximately 26.5%[141] - Total liabilities were reported at RMB51,130,430,000, compared to RMB38,117,372,000 at the end of 2018, indicating an increase of about 34.1%[141] Cash Flow - Net cash used in operating activities for the first half of 2019 was RMB4,573,521, a substantial increase from RMB47,447 in the previous year[73] - Net cash from financing activities for the six months ended June 30, 2019, was RMB8,213,444,000, compared to a net cash used of RMB(1,108,550,000) in the same period of 2018[76] - Total cash and cash equivalents at the end of the period reached RMB5,112,619,000, up from RMB2,490,418,000 in the same period of 2018[78] - The company is confident in its ability to meet financial obligations and continue as a going concern based on operational cash inflows[84] Land and Property Development - As of June 30, 2019, the Group's land bank totaled approximately 15.41 million square meters, with 25% in first-tier cities and 65% in second-tier cities[43] - The Group acquired 13 land projects in the first half of 2019, with a total planned GFA of approximately 2.54 million square meters, at a total consideration of approximately RMB25,220 million[45] - The average selling price for properties was approximately RMB21,100 per square meter, reflecting a slight decrease of 2.8% compared to the previous year[47] - The Group plans to focus on expanding contracted sales and land bank accumulation in first-tier and certain second-tier cities with fast economic growth[51] - The Group plans to continue expanding its property development and management segments, leveraging its strong financial performance to explore new market opportunities[141] Accounting Standards and Policies - The Group adopted HKFRS 16 "Leases" for the first time, impacting the financial statements starting from 1 January 2019[8] - The Group's accounting policies remain consistent with those in the annual financial statements for the year ended December 31, 2018, except for the new standards adopted[88] - The Group recognized an increase in right-of-use assets amounting to RMB78,982,000 as of January 1, 2019[98] - The Group applied short-term lease exemptions for leases with terms ending within 12 months from the date of initial application[96] - Significant judgment is applied in determining the lease term for contracts with renewal options, considering non-cancellable terms and options that are reasonably certain to be exercised[107] Taxation - The Group is subject to Land Appreciation Tax (LAT) in Mainland China, with rates ranging from 30% to 60% on the appreciation of land value[117] - The land appreciation tax (LAT) in Mainland China amounted to RMB230,907,000, up from RMB28,496,000 in the previous year, indicating a significant increase of 709.5%[155] - The corporate income tax expense for Mainland China for the period was RMB298,317,000, compared to RMB153,452,000 in the same period last year, representing an increase of 94.4%[155] Joint Ventures and Investments - The company reported a share of losses from joint ventures amounting to RMB589,865 for the first half of 2019, compared to RMB453,695 in the same period of 2018[73] - Investments in joint ventures totaled RMB8,980,129,000, while investments in associates were RMB3,214,127,000[141] - Capital contributions to joint ventures totaled RMB725,469, indicating a significant investment in joint ventures[75]