编者按： 2025年7月4日，由格隆汇主办的"中期策略峰会·2025"在深圳举办，众多优质上市公司高管前来与投资 者零距离线上沟通。活动当日，港股上市公司上实城市开发(00563.HK)作为房地产行业的重要代表，参 与了此次路演环节。 在活动现场，公司财务总监梁健康先生、企业传讯部主管傅琳女士分享了上实城市开发最新的业务进 展、财务状况以及未来战略规划，回应了投资者关心的热点问题。 上海实业城市开发集团有限公司为上海实业控股有限公司之附属公司，截至2024年12月31日，集团在中 国10个内地重点城市拥有27个房地产项目，包括上海、北京、天津、西安、重庆、无锡、沈阳、烟台、 深圳及武汉，当中大部份为建成及处于建设期中的中、高档住宅及商用物业，未来可售规划建筑面积约 332万平方米，为公司未来3-5年的持续发展提供了坚实基础。 （来源：公司资料） 2024年，上实城市开发实现主营业务收入124.40亿港元，同比增长56.4%，显示出公司在市场拓展和销 售方面的强劲动力。从收入结构方面，上实城市开发主要以物业销售为主，辅以租金、物业管理及服务 收入以及酒店经营等板块，这种多元化的收入结构有利于持续提供稳定的现金流 ...

Core Viewpoint - The company, Shanghai Shangkai, is facing challenges in the real estate market, with a significant decline in profits and sales, particularly in the context of urban renewal projects and the broader economic environment [1][9][12]. Group 1: Company Overview - Shanghai Shangkai is involved in urban renewal projects, including the notable "Xinhonghui" commercial complex, which opened in September 2024 [1][5]. - The company has a history of participating in urban renewal initiatives since 2014, with several projects in the Shanghai area, including the Red Star Village and Meilongli [2][4][5]. - The company has been expanding its rental housing business, responding to government initiatives to provide affordable housing [8]. Group 2: Financial Performance - In 2024, Shanghai Shangkai reported a net loss of 3.31 billion HKD, a significant decline from a profit of 4.95 billion HKD in 2023 [13]. - The company's revenue for 2024 was 124.4 billion HKD, up 56.4% from 79.54 billion HKD in 2023, but the gross profit decreased by 35.9% to 21.31 billion HKD [13]. - The gross margin fell to 17.1% in 2024, down 24.7 percentage points from 41.8% in 2023 [13]. Group 3: Market Challenges - The company has experienced a decline in sales, with total contract sales dropping from 89.33 billion HKD in 2021 to 39.33 billion HKD in 2024, a decrease of 52.2% [9][10]. - The decline in sales is attributed to reduced sales in first- and second-tier cities, impacting the overall performance of the company [10]. - The company has reduced its land acquisition activities, with available planning area decreasing to 332 million square meters by 2024 [12]. Group 4: Strategic Initiatives - To mitigate the impact of declining sales, Shanghai Shangkai is exploring new business areas, including project consulting services for infrastructure projects like the G50 highway expansion [15][16]. - The company aims to diversify its business portfolio and expand revenue sources through these new initiatives [16].

Financial Performance - The total contracted sales for the year reached RMB 3.933 billion, with overall revenue of HKD 12.44 billion[17]. - The pre-tax profit was HKD 215 million, while the loss attributable to shareholders was HKD 331 million, primarily due to a decrease in high-margin project deliveries and impairment losses[17]. - The company's contract sales amount for residential and affordable housing was RMB 3,933,360,000 for the year ended December 31, 2024, a decrease of 52.2% compared to RMB 8,228,570,000 in 2023[34]. - For the fiscal year ending December 31, 2024, the company's revenue increased by 56.4% to HKD 12,440,369,000, compared to HKD 7,953,596,000 in 2023[41]. - Property sales revenue, the main source of income, reached HKD 11,351,331,000, accounting for 91.2% of total revenue, up from 86.4% in the previous year[41]. - The company recorded a gross profit of HKD 2,130,708,000, a decrease of 35.9% year-on-year, with a gross margin of 17.1%, down 24.7 percentage points[44]. - The net loss for the year was HKD 372,828,000, compared to a profit of HKD 490,713,000 in 2023, with a basic loss per share of HKD 0.0693[49]. Market Conditions - The overall property market in China is gradually recovering, supported by government measures such as lowering loan rates and easing purchasing restrictions[18]. - The real estate market in mainland China faced challenges in 2024, with a 10.6% year-on-year decline in real estate development investment and a 17.1% decrease in new residential sales[32]. - The overall economic growth in China for the year was 5%, providing a supportive backdrop for the company's operations[17]. - The central economic work conference emphasized stabilizing the real estate market, with policies expected to support recovery in 2025[59]. Project Development and Strategy - The company has 27 real estate projects across 10 major cities in China, providing approximately 3.32 million square meters of future saleable area[4]. - The company plans to continue focusing on high-quality projects in core cities to ensure steady growth amid market fluctuations[17]. - The company is actively enhancing its operational capabilities and accelerating project development in response to favorable policies in the real estate market[18]. - The company continues to focus on a prudent land acquisition strategy, emphasizing project quality and profitability while exploring urban renewal opportunities[36]. - The company aims to enhance operational cash flow performance by improving sales collection management and optimizing debt structure[23]. - The company plans to focus on cash flow and debt reduction as core indicators to promote stable operations in the face of industry adjustments[23]. Financial Management - The net debt-to-equity ratio was reported at 64.8% at the end of 2024, indicating a stable financial position[11]. - The company's net debt to total equity ratio increased from 58.4% to 64.8% year-on-year, with a current ratio of 1.2 times[50]. - The company repurchased a total of 9,368,000 shares at a total cost of HKD 3,317,670, excluding transaction costs, demonstrating prudent capital management[19]. - The company successfully issued RMB 910 million in 3-year medium-term notes with a coupon rate of 2.45%, enhancing liquidity and reducing financial costs[19]. Awards and Recognition - The company has received multiple industry awards, including rankings in the "2024 Real Estate Development Enterprises Comprehensive Strength TOP 100" and "2024 Real Estate Listed Companies Comprehensive Strength TOP 50"[22]. Corporate Governance and Communication - The company maintains a commitment to high standards of corporate governance, adhering to all provisions of the corporate governance code as of December 31, 2024[186]. - The board of directors is responsible for formulating the overall strategy and monitoring the group's business operations and performance[191]. - The company emphasizes maintaining close communication with investors through regular meetings, conference calls, and shareholder meetings to share development strategies and market insights[171]. - The company aims to enhance communication with domestic investors, particularly in Shanghai and the Greater Bay Area, to convey long-term strategies and operational updates[181]. - The company encourages shareholders to access information through its website and the Stock Exchange's disclosure platform[184]. Employee and Social Responsibility - The group has 745 employees, with compensation policies linked to performance, qualifications, experience, and market comparisons[56]. - The company actively participates in social development initiatives, including poverty alleviation and community support[188].

上实城市开发（00563.HK）：聚焦核心资产，凸显经营韧性 随着3月的到来，港股市场进入密集的财报披露期，这一阶段也成为投资者观察企业经营韧性、挖掘结构性机会的关键窗口。 房地产行业作为近年来调整最深也最受关注的领域，上市房企的财报无疑将受到更多市场的聚光灯照射。 近日，上实城市开发（00563.HK）的年度财报正式出炉，此前在2月末公司已发布盈利警告，尽管利润指标并不理想，但可以看到近期来公司在资本市场反 应相对平淡，这也侧面反映市场对其悲观预期已充分释放。 （来源：富途行情） 从最新发布的财报来看，尽管公司业绩仍然承压，但营收高增、核心土储优势、政策机遇下的复苏趋势等亮点，也为市场释放了暖意，那么该如何看待公司 后续的机会？ 1、营收高增，毛利率短期承压无碍长期改善 此次财报一个亮点之处在于公司的营收保持了高增长。 财报显示，公司全年实现收入为124.4亿港元，同比上升56.4%。 拆分收入结构来看，核心收入来源是物业销售，2024年达到113.5亿港元，同比增长65.2%，占总收入比例超过90%，成为公司业绩增长的核心引擎。 | | 二零二四年 | 二零二三年 | | --- | --- | --- ...

Financial Performance - The company reported a revenue of HKD 12,440,369 thousand for the year ending December 31, 2024, representing a 56.4% increase compared to HKD 7,953,596 thousand in 2023[4] - Gross profit decreased to HKD 2,130,708 thousand, down 35.9% from HKD 3,325,390 thousand, resulting in a gross margin of 17.1%, a decline of 24.7 percentage points[4] - The company recorded a loss attributable to shareholders of HKD 331,190 thousand, compared to a profit of HKD 494,570 thousand in the previous year[4] - Basic loss per share was HKD (6.93), a significant drop from HKD 10.32 in 2023[6] - The company reported a net loss attributable to shareholders of HKD 331,190 for 2024, compared to a profit of HKD 494,570 in 2023[34] - The income tax expense for 2024 was HKD 587,926, significantly lower than HKD 1,364,542 in 2023, reflecting a decrease of 56.9%[30] - The group recorded a net loss of HKD 372,828,000 for the year, compared to a profit of HKD 490,713,000 in 2023, primarily due to lower gross margins and impairment losses[61] Assets and Liabilities - Total assets decreased to HKD 31,023,995 thousand from HKD 38,058,440 thousand, indicating a reduction in asset base[10] - The net asset value per share for shareholders was HKD 2.73, down 6.5% from HKD 2.92 in 2023[4] - The company’s debt-to-equity ratio increased to 64.8% from 58.4%[4] - The fair value of investment properties decreased to HKD 20,645,374,000 in 2024 from HKD 21,437,687,000 in 2023, reflecting a loss of HKD 703,073,000[37] - The total amount of properties held for sale and under development decreased to HKD 14,578,442,000 in 2024, down 35.6% from HKD 22,615,376,000 in 2023[37] - Trade payables increased significantly to HKD 1,783,306,000 in 2024, up 77.0% from HKD 1,007,357,000 in 2023[42] Revenue Sources - Total revenue for the year 2024 reached HKD 11,646,525, an increase of 62.5% compared to HKD 7,180,575 in 2023[25] - Property sales contributed HKD 11,351,331 to the total revenue, up from HKD 6,870,636 in the previous year, representing a growth of 65.8%[25] - Property sales revenue accounted for 91.2% of total revenue, amounting to HKD 11,351,331,000, up from 86.4% in the previous year[54] - Other income decreased to HKD 109,696 in 2024 from HKD 136,130 in 2023, a decline of 19.4%[27] Cash Flow and Financing - The company’s cash and cash equivalents decreased to HKD 5,342,774 thousand from HKD 5,985,911 thousand[8] - Financing costs totaled HKD 659,163 in 2024, down 28.0% from HKD 915,940 in 2023[30] - The group’s cash and cash equivalents amounted to HKD 5,342,774,000 as of December 31, 2024, down from HKD 5,985,911,000 in 2023[62] Dividends and Share Repurchase - The company did not declare any final or special dividends for the year[4] - The company did not recommend any final or special dividends for the year ending December 31, 2024, compared to a final dividend of HKD 0.021 and a special dividend of HKD 0.008 per share for the previous year[35] - The group repurchased shares 12 times, totaling 9,368,000 shares at a cost of HKD 3,317,670,000, representing 0.20% of the issued share capital[52] - The company repurchased a total of 9,368,000 shares at a total cost of HKD 3,317,670 during the year ending December 31, 2024[81] Market and Operational Insights - The real estate market in mainland China faced challenges in 2024, with a 10.6% year-on-year decline in real estate development investment[44] - The company plans to continue focusing on high-quality project development and exploring urban renewal opportunities in key cities[48] - The group expects the real estate market to stabilize and recover gradually in 2025, supported by government policies aimed at boosting demand and optimizing supply[68] - The company has a land reserve of 27 projects across 10 key cities in mainland China, with a total planned saleable area of approximately 3,323,000 square meters[48] - The company has 9 ongoing projects with a total construction area of 1,933,000 square meters as of December 31, 2024[50] Governance and Compliance - The audit committee has reviewed the audited financial statements for the year ending December 31, 2024, and discussed accounting principles and financial reporting matters with management and auditors[77] - The company maintains compliance with the public float requirements as stipulated by the listing rules[80] - The company has adopted a customized code of conduct for securities trading by directors and relevant employees, ensuring compliance with the standard code[86] - Dr. Fan Renda has been appointed as the Chairman of the Environmental, Social and Governance Committee of Tianfu (Cayman) Holdings Limited, effective May 10, 2024[87] - The board of directors will undergo changes effective March 21, 2025, with the announcement of new appointments[91] Acknowledgments - The company expresses gratitude to the board, management, employees, customers, suppliers, business partners, and shareholders for their continued support[90]

[Company Information](index=2&type=section&id=Company%20Information) This section provides core company governance and operational data, including executive directors, independent non-executive directors, committee members, registered office, principal place of business, principal bankers, and auditors - Board and committee changes: Lou Jun resigned as executive director, Zhou Yadong appointed as executive director; Qiao Zhigang resigned as independent non-executive director, Dr. Chen Haohua appointed as independent non-executive director[1](index=1&type=chunk) - The company's auditor is **Deloitte Touche Tohmatsu**[1](index=1&type=chunk) [Financial Highlights](index=3&type=section&id=Financial%20Highlights) During the reporting period, the company's revenue significantly increased by 65.8% year-on-year, while loss attributable to shareholders narrowed to HK$232 million; net debt to total equity ratio rose to 65.1%, and current ratio slightly decreased to 1.3 Financial Performance Summary | Indicator | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Revenue (HK$ Thousand) | 2,980,833 | 1,797,834 | | Loss attributable to owners of the Company (HK$ Thousand) | (231,564) | (302,936) | | Basic loss per share (HK Cents) | (4.84) | (6.32) | Financial Ratios | Financial Ratio | As at June 30, 2024 | As at December 31, 2023 | | :--- | :--- | :--- | | Net debt to total equity ratio (%) | 65.1% | 58.4% | | Current ratio | 1.3 | 1.4 | - As of June 30, 2024, proceeds from pre-sale of properties received were **HK$8.227 billion**, largely consistent with **HK$8.256 billion** at the end of 2023[3](index=3&type=chunk) [Chairman's Statement](index=4&type=section&id=Chairman%27s%20Statement) Facing a complex macroeconomic environment and a real estate market in adjustment, the company adhered to a "seeking progress while maintaining stability" strategy, focusing on quality projects in core cities, with successful project deliveries and steady contract sales in the first half - Macro environment: In H1 2024, China's GDP grew by **5.0%** YoY, but the real estate market remained in adjustment, with property development investment down **10.1%** YoY; government policies shifted towards "destocking" and "stabilizing the market"[6](index=6&type=chunk) - Operating strategy and performance: The company maintained a "seeking progress while maintaining stability, pragmatic and forward-looking" approach, with projects like Shanghai Qingpu SIUD Cloudland, Yantai SIUD Yunlu, and Xi'an Natureland completed delivery during the period; contract sales for projects such as Xi'an Natureland and Tianjin SIUD Yangshan progressed steadily[6](index=6&type=chunk) - Investment properties: Actively developed rental housing business, with long-term rental projects like Shanghai Chenkai Xin Community and Chenkai Hui Community contributing stable rental income, and Chenkai Chuang Community expected to be completed in H2[6](index=6&type=chunk) - Future outlook: Real estate market activity is expected to rebound in H2; the Group will continue its strategic positioning as a "core urban industrial-city integrated developer," focusing on developing and operating high-quality core assets, with Shanghai as its core, and deepening its presence in first- and second-tier cities[7](index=7&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) In H1 2024, amidst a slow but pressured real estate market recovery, the Group's revenue grew 65.8% YoY to HK$2.98 billion, driven by increased property deliveries, though contract sales declined 54.4% YoY to RMB2.28 billion and gross profit margin fell to 20.8%, narrowing the loss to HK$188 million [Real Estate Market Environment](index=6&type=section&id=Real%20Estate%20Market%20Environment) In H1 2024, China's real estate market continued its slow recovery but faced downward pressure from conservative investment confidence and weak new home sales; policy focus shifted to "destocking" and "market stabilization," though property developers still faced significant financing and debt repayment challenges - Policy direction: The Central Political Bureau meeting set the tone for real estate policy, proposing "coordinated research on digesting existing housing stock and optimizing incremental housing," with policy focus shifting to "destocking" and "stabilizing the market"[8](index=8&type=chunk) - Developer financing challenges: In H1, real estate enterprise bond financing totaled approximately **RMB282.29 billion**, a **26.1%** YoY decrease; simultaneously, maturing bonds reached **RMB279.9 billion**, indicating significant financial pressure on developers[8](index=8&type=chunk) [Business Review](index=7&type=section&id=Business%20Review) In the first half, the Group maintained its "seeking progress while maintaining stability" strategy, achieving contract sales of RMB2.28 billion, a 54.4% YoY decrease, primarily from second-tier city projects; 9 projects were under construction, with 78,600 square meters delivered, and investment properties generated stable rental income from 1.126 million square meters Contract Sales Performance | Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Contract Sales (RMB) | 2.284 billion | 5.010 billion | -54.4% | | Contract Sales Area (Square Meters) | 98,000 | - | -42.0% | | Average Selling Price (RMB/Square Meter) | Approx. 23,300 | - | Decrease | - Key sales projects: Xi'an Natureland, Tianjin SIUD Yangshan, Yantai SIUD Yunlu, and Shanghai SIUD Wanghai were the main sales contributors, accounting for **39.7%**, **35.9%**, **6.8%**, and **6.4%** of total contract sales, respectively[10](index=10&type=chunk) - Investment property rental income increased by **1.5%** YoY to **HK$381 million**; long-term rental projects like Shanghai Chenkai Xin Community achieved an occupancy rate of **97%**[12](index=12&type=chunk) - Land reserves are distributed across **10 key mainland cities**, with future saleable planned GFA of approximately **3.406 million square meters**, sufficient for **3 to 5 years** of development[13](index=13&type=chunk) - During the period, **9,368,000 shares** were repurchased, involving **HK$3.318 million**, representing **0.20%** of issued shares[14](index=14&type=chunk) [Financial Performance](index=9&type=section&id=Financial%20Performance) Total revenue in the first half increased by 65.8% YoY to HK$2.98 billion, driven by project deliveries like Shanghai SIUD Yunrui; property sales remained the primary revenue source at 82.3%, but gross profit declined 19.6% and gross profit margin fell to 20.8% due to product mix and price adjustments, resulting in a narrowed loss attributable to shareholders of HK$232 million Financial Performance Indicators | Financial Indicator | H1 2024 (Unaudited) (HK$ Thousand) | H1 2023 (Unaudited) (HK$ Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 2,980,833 | 1,797,834 | +65.8% | | - Property Sales Revenue | 2,453,892 | 1,271,776 | +93.0% | | - Rental Income | 381,338 | 375,736 | +1.5% | | Gross Profit | 620,521 | 772,063 | -19.6% | | Gross Profit Margin | 20.8% | 42.9% | -22.1 percentage points | | Loss for the Period | (188,301) | (323,180) | -41.7% | | Loss attributable to owners of the Company | (231,564) | (302,936) | -23.6% | - Revenue growth was primarily due to the delivery of multiple projects, with Shanghai SIUD Yunrui contributing approximately **HK$1.57 billion** in revenue[15](index=15&type=chunk) - A net impairment loss on revaluation of investment properties of approximately **HK$210 million** was recorded, mainly due to a decrease in the fair value of Shanghai World Trade Centre and Chenkai International Plaza[17](index=17&type=chunk) [Liquidity and Financial Resources](index=10&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2024, the Group held HK$5.36 billion in bank balances and cash; the net debt to total equity ratio increased to 65.1% from 58.4% at year-end, and the current ratio was 1.3 times, with total loans of approximately HK$18.23 billion, largely stable from year-end Liquidity and Financial Resources | Indicator | As at June 30, 2024 | As at December 31, 2023 | | :--- | :--- | :--- | | Bank Balances and Cash (HK$ Thousand) | 5,362,707 | 5,985,911 | | Total Loans (HK$ Thousand) | 18,229,744 | 18,002,416 | | Net Debt to Total Equity Ratio | 65.1% | 58.4% | | Current Ratio | 1.3 times | 1.4 times | [Outlook](index=11&type=section&id=Outlook) For the second half, despite ongoing market adjustment pressures, central government policies aimed at "destocking" and "market stabilization" are expected to boost industry confidence; the Group will continue to deepen its presence in Shanghai and core first- and second-tier cities, prudently increasing quality land reserves and investment projects - Market expectations: The Third Plenary Session of the 20th Central Committee provided direction for real estate development, reiterating a loose policy stance and emphasizing the construction of a new development model; the market anticipates further "destocking" and "market stabilization" policies to stimulate a steady market recovery[25](index=25&type=chunk) - Company strategy: The company will firmly maintain development confidence, continue to focus on the Shanghai metropolitan area, deepen its presence in the Yangtze River Delta and other core first- and second-tier cities, prudently explore investments, and strive for stable business development[25](index=25&type=chunk) [Project Portfolio Analysis](index=12&type=section&id=Project%20Information) As of June 30, 2024, the Group owned 28 real estate projects across 10 major Chinese cities, encompassing mid-to-high-end residential, commercial, office, and serviced apartment properties; future saleable land reserves totaled approximately 3.41 million square meters, with the Yangtze River Delta region accounting for 53.7%, and investment properties totaling about 1.126 million square meters [Project Information Overview](index=12&type=section&id=Project%20Information) As of June 30, 2024, the Group owned 28 projects across 10 cities, with a total planned GFA of approximately 12.69 million square meters, of which future saleable area is about 3.41 million square meters and under-construction area is about 1.58 million square meters; the Yangtze River Delta region is the primary distribution area for future saleable area, accounting for 53.7% Project Area Summary | Indicator | Area (Square Meters) | | :--- | :--- | | Total Planned GFA | 12,687,998 | | Total Saleable GFA | 10,296,895 | | Future Saleable Area | 3,406,698 | | Under-Construction Area | 1,579,951 | - Future saleable GFA is primarily distributed in the **Yangtze River Delta region (53.7%)**, followed by **Xi'an (14.5%)** and **Wuhan (12.0%)**[32](index=32&type=chunk) [Key Investment Properties](index=13&type=section&id=Key%20Investment%20Properties) The Group's key investment properties have a total planned GFA of approximately 1.126 million square meters, distributed across 7 key cities including Shanghai, Beijing, Chongqing, and Shenzhen, comprising commercial centers, office buildings, exhibition halls, and affordable rental housing, providing stable rental income - Total investment property area is approximately **1,125,879 square meters**[30](index=30&type=chunk)[31](index=31&type=chunk) - Core investment properties include Shanghai World Trade Centre (**285,000 square meters**), Chenkai International Plaza (**45,000 square meters**), and Chengshangcheng (**317,000 square meters**)[30](index=30&type=chunk) [Introduction to Key Projects in China](index=13&type=section&id=%E4%BA%8E%E4%B8%AD%E5%9B%BD%E4%B8%BB%E8%A6%81%E9%A0%85%E7%9B%AE%E4%BB%8B%E7%B4%B9) This section details the Group's key projects in core cities like Shanghai, Yantai, Wuhan, Beijing, Tianjin, Shenyang, Wuxi, and Xi'an, showcasing diverse project types including large residential communities, TOD complexes, high-end villas, commercial office complexes, and large ecological residential projects, reflecting the Group's diversified product development capabilities and strategic focus on core cities - Projects in the Shanghai region hold significant importance, covering various formats such as residential, commercial, TOD, and long-term rental apartments, including Wanyuan City, TODTOWN Tianhui, and SIUD Tinghai[33](index=33&type=chunk)[35](index=35&type=chunk)[56](index=56&type=chunk) - The Group has strategically positioned landmark or regionally influential projects in other core cities, such as Beijing's Xidiaoyutai Royal Mansion, Tianjin's SIUD Yangshan, and Xi'an's Natureland and SIUD Qiyuan[62](index=62&type=chunk)[63](index=63&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) [Other Information and Corporate Governance](index=25&type=section&id=Other%20Information) This section covers important disclosures including dividends, share repurchases, corporate governance, connected transactions, and director information; the Board recommended no interim dividend, the company repurchased 9.368 million shares, complied with corporate governance codes, disclosed loan agreements with controlling shareholder covenants, and updated director and major shareholder information [Dividends and Share Repurchases](index=25&type=section&id=Interim%20Dividend) The Board did not recommend any interim dividend for the six months ended June 30, 2024; during the period, the company repurchased a total of 9,368,000 ordinary shares on the Stock Exchange for approximately HK$3.318 million, which were cancelled on March 26, 2024 - The Board did not recommend an interim dividend for 2024[70](index=70&type=chunk) Share Repurchase Summary | Share Repurchase Summary | | | :--- | :--- | | Number of Ordinary Shares Repurchased | 9,368,000 shares | | Total Consideration Paid (HK$) | 3,317,670 | [Corporate Governance and Compliance](index=26&type=section&id=Corporate%20Governance) During the reporting period, the company consistently complied with the Corporate Governance Code; it disclosed three loan agreements requiring the controlling shareholder (SIIC Group) to maintain a minimum shareholding of not less than 51% and effective control, with any breach constituting an event of default; the Audit Committee reviewed the unaudited interim financial statements - The company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules[74](index=74&type=chunk) - The company has three loan agreements requiring the controlling shareholder, SIIC Group, to maintain not less than **51%** equity interest and effective control; as of June 30, 2024, SIIC Group beneficially owned approximately **70.52%** of the company's share capital[76](index=76&type=chunk)[77](index=77&type=chunk) - The Audit Committee, comprising three independent non-executive directors, reviewed the interim financial statements, and external auditor Deloitte conducted a review in accordance with Hong Kong Standard on Review Engagements 2410[78](index=78&type=chunk) [Directors' and Shareholders' Interests](index=28&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2024, Director Mr. Tang Jun held 178,000 company ordinary shares and 65,000 ordinary shares of associated corporation SIIC Holdings; major shareholders SIIC Holdings and SIIC Group were deemed to hold 44.16% and 70.52% equity interests respectively; post-reporting period, Mr. Lou Jun resigned, and Ms. Zhou Yadong and Dr. Chen Haohua were appointed as executive and independent non-executive directors - Director Mr. Tang Jun held **178,000** company shares[79](index=79&type=chunk) Major Shareholders | Major Shareholder | Capacity | Shareholding Percentage | | :--- | :--- | :--- | | SIIC Holdings | Held by controlled corporations | 44.16% | | SIIC Group | Held by controlled corporations | 70.52% | - Changes in director information: Mr. Lou Jun resigned as executive director, Ms. Zhou Yadong was appointed as executive director, and Dr. Chen Haohua was appointed as independent non-executive director, all effective July 15, 2024[86](index=86&type=chunk) [Condensed Consolidated Financial Statements](index=31&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, reviewed by Deloitte Touche Tohmatsu, showing total revenue of HK$2.98 billion, a loss for the period of HK$188 million, total assets of HK$56.53 billion, and equity attributable to owners of the Company of HK$13.29 billion, with detailed notes explaining key accounting policies and transactions [Review Report](index=31&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20Review%20Report) The Group's external auditor, Deloitte Touche Tohmatsu, reviewed these interim financial statements in accordance with Hong Kong Standard on Review Engagements 2410, concluding that they found no matters leading them to believe the condensed consolidated financial statements were not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" - Auditor Deloitte Touche Tohmatsu issued an unmodified review conclusion, stating that the financial statements materially comply with the requirements of Hong Kong Accounting Standard 34[89](index=89&type=chunk)[90](index=90&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=32&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, the Group's total revenue was HK$2.98 billion, a 65.8% YoY increase, while gross profit was HK$621 million, a 19.6% YoY decrease; due to factors like fair value loss on investment properties and finance costs, a loss for the period of HK$188 million was recorded, significantly narrowed from HK$323 million in the prior year, with loss attributable to owners of the Company at HK$232 million Statement of Profit or Loss and Other Comprehensive Income | Item (HK$ Thousand) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Total Revenue | 2,980,833 | 1,797,834 | | Gross Profit | 620,521 | 772,063 | | Loss Before Tax | (65,932) | 57,341 (Profit) | | Loss for the Period | (188,301) | (323,180) | | Loss attributable to owners of the Company | (231,564) | (302,936) | | Basic Loss Per Share (HK Cents) | (4.84) | (6.32) | [Condensed Consolidated Statement of Financial Position](index=34&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets were HK$56.53 billion, a decrease from HK$59.02 billion at the end of 2023; total liabilities were HK$36.85 billion, and equity attributable to owners of the Company was HK$13.29 billion, with investment properties being the largest non-current asset at HK$21.28 billion and properties under development for sale and properties held for sale at HK$21.09 billion in current assets Statement of Financial Position | Item (HK$ Thousand) | As at June 30, 2024 (Unaudited) | As at December 31, 2023 (Audited) | | :--- | :--- | :--- | | **Total Assets** | **56,529,184** | **59,016,220** | | Non-Current Assets | 28,486,589 | 28,773,636 | | Current Assets | 28,042,595 | 30,242,584 | | **Total Liabilities** | **36,854,648** | **38,507,726** | | Current Liabilities | 20,858,767 | 20,957,780 | | Non-Current Liabilities | 15,995,881 | 17,549,946 | | **Total Equity** | **19,674,536** | **20,508,494** | | Equity attributable to owners of the Company | 13,293,915 | 14,010,969 | [Condensed Consolidated Statement of Changes in Equity](index=36&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2024, equity attributable to owners of the Company decreased from HK$14.01 billion at the beginning of the year to HK$13.29 billion, primarily due to a loss for the period of HK$232 million, a decrease in reserves of HK$343 million from exchange differences, and dividends paid of HK$139 million, with share capital and share premium also reduced by share repurchases and cancellations - Equity attributable to owners of the Company decreased by approximately **HK$717 million**, from **HK$14,010,968 thousand** at the beginning of the period to **HK$13,293,915 thousand** at the end of the period[95](index=95&type=chunk) - Key items contributing to the decrease in equity include: total comprehensive expense for the period of **HK$574 million** (including loss for the period and exchange differences), and dividends recognized as distribution of **HK$139 million**[95](index=95&type=chunk) [Condensed Consolidated Cash Flow Statement](index=38&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) In H1 2024, the Group experienced a net cash outflow from operating activities of HK$166 million, compared to a net inflow of HK$1.727 billion in the prior year, mainly due to changes in working capital; net cash outflow from investing activities was HK$375 million, while net cash inflow from financing activities was HK$63 million, resulting in a decrease in cash and cash equivalents from HK$5.99 billion at the beginning of the period to HK$5.36 billion at period-end Cash Flow Statement Summary | Item (HK$ Thousand) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash from Operating Activities | (165,868) | 1,727,131 | | Net Cash Used in Investing Activities | (374,511) | (267,981) | | Net Cash from Financing Activities | 63,036 | 453,328 | | Net Decrease in Cash and Cash Equivalents | (477,343) | 1,912,478 (Increase) | | Cash and Cash Equivalents at End of Period | 5,362,707 | 6,131,301 | [Summary of Notes to the Financial Statements](index=40&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20Notes) The notes to the financial statements provide detailed explanations of the financial data; revenue primarily derived from property sales in China, with no segment reporting required due to a single business segment; a fair value loss of HK$210 million on investment properties was recognized due to market changes; related party transactions and balances involved controlling shareholders, joint ventures, and non-controlling shareholders; the company provided financial guarantees for property buyers and a joint venture - Revenue recognition: Property sales revenue is recognized at a point in time, amounting to **HK$2.45 billion** in H1 2024; hotel operations and property management revenue are recognized over time[102](index=102&type=chunk) - Changes in investment properties: A net fair value decrease of approximately **HK$210 million** was recognized in profit or loss; there were also transfers of properties held for sale and owner-occupied properties to investment properties[109](index=109&type=chunk) - Financial guarantees: The Group provided mortgage loan guarantees of **HK$861 million** for property buyers and **HK$106 million** for bank financing of a joint venture[125](index=125&type=chunk) - Dividends: Final dividend and special dividend for 2023, totaling **HK$139 million**, were declared and recognized during the period; the Board did not recommend an interim dividend for 2024[136](index=136&type=chunk)[137](index=137&type=chunk)

Financial Performance - Total revenue for the six months ended June 30, 2024, was HKD 2,980,833 thousand, a 65.5% increase from HKD 1,797,834 thousand in the same period of 2023[2] - Gross profit for the period was HKD 620,521 thousand, down 19.5% from HKD 772,063 thousand year-on-year[2] - The company reported a net loss of HKD 188,301 thousand for the six months ended June 30, 2024, compared to a net loss of HKD 323,180 thousand in the same period of 2023, representing a 41.7% improvement[3] - The company’s total comprehensive loss for the period was HKD 655,087 thousand, compared to HKD 1,207,577 thousand in the same period of 2023, indicating a significant reduction in losses[3] - The basic loss per share for the period was HKD 4.84, an improvement from HKD 6.32 in the same period last year[3] - The basic loss per share attributable to the owners of the company for the six months ended June 30, 2024, was HKD (231,564,000), compared to HKD (302,936,000) in 2023[15] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 28,486,589 thousand, a decrease from HKD 28,773,636 thousand as of December 31, 2023[4] - Current liabilities totaled HKD 20,858,767 thousand, slightly down from HKD 20,957,780 thousand at the end of 2023[5] - The company’s cash and cash equivalents were HKD 5,362,707 thousand, down from HKD 5,985,911 thousand at the end of 2023[4] - The total trade and other receivables as of June 30, 2024, amounted to HKD 1,147,078,000, a decrease from HKD 1,225,545,000 as of December 31, 2023[17] - The group’s trade payables as of June 30, 2024, amounted to HKD 1,180,947,000, an increase from HKD 1,007,357,000 as of December 31, 2023[21] - The total loans amounted to approximately HKD 18,229,744,000, an increase from HKD 18,002,416,000 at the end of 2023[38] Revenue Sources - Revenue from customer contracts for the six months ended June 30, 2024, was HKD 2,599,495,000, a 83.6% increase from HKD 1,422,098,000 in 2023[9] - Property sales revenue reached HKD 2,453,892,000, accounting for 82.3% of total revenue, up from 70.7% in the same period last year[30] - The group's rental income for the period increased by 1.5% to HKD 381,338,000 compared to HKD 375,736,000 in the same period of 2023[27] Investment and Financing - Investment property fair value loss was HKD 210,465 thousand, significantly higher than HKD 2,263 thousand in the previous year[2] - The financing costs totaled HKD 315,250,000 for the six months ended June 30, 2024, down 26.6% from HKD 429,251,000 in 2023[11] - The income tax expense for the six months ended June 30, 2024, was HKD 122,369,000, a decrease of 67.8% compared to HKD 380,521,000 in 2023[13] - The company capitalized HKD 32,984,000 of financing costs related to properties under development for the six months ended June 30, 2024[11] - The group repaid bank and other borrowings amounting to HKD 1,590,738,000 in the six months ended June 30, 2024[22] - The group obtained new bank and other borrowings of HKD 2,192,743,000 during the same period[22] Market and Sales Performance - For the six months ended June 30, 2024, the group's contracted sales amounted to RMB 2,283,730,000, a decrease of 54.4% compared to RMB 5,009,840,000 for the same period in 2023[25] - The total contracted sales area was 98,000 square meters, down 42.0% year-on-year, with an average selling price of approximately RMB 23,300 per square meter[25] - The overall market for real estate remains under pressure, with a 26.1% year-on-year decline in bond financing for real estate companies[23] Strategic Focus and Future Plans - The group is focusing on core cities and quality projects, adjusting operational strategies to ensure smooth project deliveries[24] - The group plans to focus on the Yangtze River Delta region and other core first- and second-tier cities for future development[41] Corporate Governance and Compliance - The company has complied with the Corporate Governance Code as set out in the Listing Rules during the six months ended June 30, 2024[46] - The Audit Committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial statements for the six months ended June 30, 2024[48] - Deloitte Touche Tohmatsu has reviewed the company's unaudited condensed consolidated financial statements for the six months ended June 30, 2024[49] - There were changes in the board of directors, including the appointment of new executive and independent non-executive directors effective July 15, 2024[50] Shareholder Information - No interim dividend is recommended for the six months ended June 30, 2024, consistent with the previous year[42] - During the six months ended June 30, 2024, the company repurchased a total of 9,368,000 ordinary shares at a total cost of HKD 3,317,670, excluding transaction costs[44] - The repurchased shares were cancelled on March 26, 2024, resulting in a reduction of the company's issued share capital[44] - As of June 30, 2024, the issued and paid-up share capital of the company was HKD 191,216,607.56, divided into 4,780,415,189 ordinary shares with a par value of HKD 0.04 each[43] Other Financial Information - The group experienced a net loss of HKD 19,850,000 from other expenses, a significant improvement from a net loss of HKD 106,081,000 in the same period last year[35] - The distribution and selling expenses increased by 13.2% to HKD 107,098,000, primarily due to enhanced promotional efforts[33] - The group held cash and cash equivalents of HKD 5,362,707,000, down from HKD 5,985,911,000 at the end of 2023[37]

Real Estate Projects - The company has 28 real estate projects across 10 major cities in China, providing approximately 3.48 million square meters of future saleable area[12] - The flagship project, Xi'an Natural World, has been a significant contributor to sales success during the year[23] - The company has established multiple commercial projects in key cities, with a total investment property area of approximately 1,126,000 square meters[54] - The company is focusing on expanding its presence in Shanghai, with multiple projects in the Minhang District and surrounding areas[107] - The company aims to enhance its product offerings by integrating residential, commercial, and cultural functions within its developments[106] - The company is committed to developing low-density residential communities with a green space ratio exceeding 35% in its projects[119] Financial Performance - In 2023, the company achieved total contracted sales of RMB 8.229 billion and total revenue of HKD 7.954 billion, with a net profit of HKD 0.491 billion, representing a year-on-year increase of 21.6% in profit attributable to shareholders[40] - The company's rental income significantly increased by 42.8% year-on-year to HKD 0.773 billion, recovering to pre-pandemic levels due to the steady recovery of the consumption market[42] - The company reported a total revenue of HKD 7,953,596,000 in 2023, a decrease of 27.8% from HKD 11,022,496,000 in 2022[56] - Property sales revenue amounted to HKD 6,870,636,000, accounting for 86.4% of total revenue, down from 93.2% in 2022[56] - The gross profit for the year was HKD 3,325,390,000, an 11.9% increase from the previous year, with a gross margin of 41.8%, up 14.9 percentage points[56] - The company reported a profit of approximately HKD 490,713,000 for the year, a year-on-year increase of 60.9% from HKD 305,001,000 in 2022[81] Debt and Capital Management - The net debt to equity ratio decreased to 58.4% year-on-year, indicating improved financial stability[24] - The company issued a second tranche of domestic corporate bonds totaling RMB 1.8 billion with a maturity of three years and a coupon rate of 3.5%[24] - The company plans to issue domestic corporate bonds in 2024 to expand capital, with a total principal amount of RMB 1,800,000,000 issued in 2023 at a coupon rate of 3.5%[88] - The company reported a total loan amount of approximately HKD 18,002,416,000 as of December 31, 2023, an increase from HKD 17,658,754,000 the previous year[67] - The company's total cash and cash equivalents were HKD 5,985,911,000 as of December 31, 2023, up from HKD 4,477,602,000 in the previous year[68] Strategic Focus and Development - The company plans to focus on the strategic positioning of being a "core urban integrated development operator" and aims to enhance its innovative operational management capabilities[47] - The company aims to integrate digital and intelligent planning into its projects to enhance urban living environments[47] - The company plans to continue its digital transformation to enhance operational efficiency and support high-quality diversified development[56] - The company is cautiously expanding its land reserves while monitoring market conditions for quality land acquisition opportunities[43] - The company aims to increase high-quality land reserves and further diversify its development strategy in response to market changes[50] Market Conditions and Economic Environment - The GDP of China grew by 5.2% in 2023, providing a resilient economic backdrop for the company's operations[40] - The overall real estate policy adjustments exceeded 1,000 times in 2023, with local governments implementing supportive measures to boost market confidence[42] - The rental market demand has shown signs of recovery, contributing positively to the company's financial performance[42] Shareholder Communication and Dividends - The company's board proposed a dividend of HKD 0.029 per share to share the development results with shareholders[40] - The company plans to distribute a final cash dividend of 2.1 HK cents per share and a special cash dividend of 0.8 HK cents per share[68] - The company emphasizes creating value for shareholders and maintaining effective communication regarding business decisions[172] - The company emphasizes maintaining close communication with investors through regular meetings, conference calls, and shareholder meetings to keep them informed about the company's operational status and financial performance[182] - The company plans to enhance communication with domestic investors, particularly in Shanghai and the Greater Bay Area, to effectively convey the group's long-term strategy and operational updates[192] Awards and Recognition - The company has received multiple awards in 2023, including recognition in the "Top 100 Real Estate Development Enterprises" and "Top 50 State-Owned Enterprises" categories[25] - In 2023, the company received multiple accolades, including being recognized as one of the "Top 50 Real Estate Development Enterprises" and "Top 5 in Risk Control" during the industry evaluation[45]

Share Repurchase and Capital Structure - The company repurchased a total of 2,894,000 ordinary shares at a total purchase price of HKD 1,321,960 during the year ended December 31, 2023[1]. - The repurchased shares included 1,700,000 shares bought on December 29, 2023, at a price of HKD 0.35 per share[1]. - The issued share capital of the company was reduced by the par value of the repurchased shares that were cancelled on February 27, 2023[1]. - As of December 31, 2023, the company's issued and paid-up share capital was HKD 191,659,327.56, consisting of 4,791,483,189 ordinary shares with a par value of HKD 0.04 each[13]. - The group completed four share buybacks during the year, totaling 2,894,000 shares, with 1,194,000 shares canceled, involving an expenditure of HKD 1,321,960, accounting for 0.06% of the issued shares[87]. Financial Performance - Total revenue decreased by 27.8% to HKD 7,953,596,000 from HKD 11,022,496,000 in the previous year[30]. - Gross profit increased by 11.9% to HKD 3,325,390,000, with a gross margin of 41.8%, up from 26.9%[30]. - The net profit attributable to the company's owners was HKD 494,570,000, compared to HKD 305,001,000 in the previous year[21]. - Basic earnings per share rose to 10.32 HKD from 8.47 HKD, representing a 21.8% increase[21]. - The company's net asset value per share decreased to 2.92 HKD from 3.04 HKD, a decline of 3.9%[30]. - The group’s net profit increased by 60.9% to HKD 490,713,000, with earnings attributable to shareholders rising by 21.6% to approximately HKD 494,570,000[133]. Revenue Breakdown - Total revenue for 2023 was HKD 7,180,575, a decrease of 31.0% from HKD 10,480,999 in 2022[63]. - Property sales revenue was HKD 6,870,636, down 33.0% from HKD 10,275,286 in the previous year[63]. - Hotel operations revenue increased to HKD 299,672, up 47.5% from HKD 203,272 in 2022[63]. - Property sales revenue reached HKD 6,870,636,000, accounting for 86.4% of total revenue, down from 93.2% in the previous year[114]. Expenses and Liabilities - The income tax expense for the year was HKD 1,466,007 thousand in 2023, up from HKD 1,055,893 thousand in 2022, reflecting a significant increase of approximately 39%[45]. - The total trade payables decreased to HKD 1,007,357 thousand in 2023 from HKD 1,810,201 thousand in 2022, showing a reduction of about 44%[54]. - The total land value tax for the year was HKD 773,188 thousand in 2023, an increase from HKD 558,780 thousand in 2022, representing a rise of approximately 38%[45]. - The group recorded a net loss of approximately HKD 223,018,000 in other expenses, compared to a net loss of HKD 156,171,000 in 2022[119]. Cash Flow and Financing - Cash and cash equivalents rose to HKD 5,985,911, up 33.7% from HKD 4,477,602 in the previous year[63]. - The net debt-to-equity ratio decreased from 63.0% to 58.4%, with a current ratio of 1.4 times compared to 1.1 times at the end of 2022[93]. - The total loans of the group, including bank loans and other loans, amounted to approximately HKD 18,002,416,000, an increase from HKD 17,658,754,000 as of December 31, 2022[135]. Corporate Governance and Compliance - The company confirmed compliance with the corporate governance code as per the listing rules for the year ended December 31, 2023[10]. - The audit committee, composed of three independent non-executive directors, reviewed the audited financial statements for the year ended December 31, 2023[12]. - The company has adopted a custom code of conduct for securities trading by directors and relevant employees, ensuring compliance with the standard code[3]. - The company maintains the required public float as per the listing rules[15]. Future Outlook and Strategic Plans - The outlook for 2024 indicates a potential recovery in the real estate market, supported by favorable policy adjustments and improving consumer confidence[96]. - The group plans to continue expanding its property management and hotel operations in the upcoming year[63]. - The group aims to enhance its digital transformation through a three-phase plan in collaboration with Mingyuan Cloud, with the second phase already initiated in February 2023[86]. - The group plans to continue its rental housing business, with completed projects contributing stable rental income and new projects expected to be completed in 2024[112]. - The group aims to enhance land reserves and focus on high-quality real estate projects in key cities, particularly in the Yangtze River Delta region, to promote stable market development[139]. Dividends - The company proposed a final dividend of HKD 0.021 per ordinary share and a special dividend of HKD 0.008 per ordinary share, subject to shareholder approval[50]. - The board proposed a final cash dividend of HKD 0.021 per share and a special cash dividend of HKD 0.008 per share for the year ending December 31, 2023, subject to shareholder approval[140].

Financial Performance - The company's income tax for the six months ended June 30, 2023, was HKD 380,521, a decrease of 2.8% from HKD 388,734 in 2022[29]. - The depreciation of property, plant, and equipment for the same period was HKD 69,764, down from HKD 78,349, reflecting a reduction of 10.1%[31]. - The net loss attributable to the company's owners for the six months ended June 30, 2023, was HKD (302,936), compared to a profit of HKD 126,448 in 2022, indicating a significant decline[32]. - The weighted average number of ordinary shares used for calculating basic loss per share was 4,792,186 thousand shares, slightly down from 4,806,323 thousand shares in the previous year[32]. - For the six months ended June 30, 2023, the company reported total revenue of HKD 8,302,292,000, a decrease from HKD 8,909,949,000 in the same period of 2022, representing a decline of approximately 6.8%[38]. - The company's net profit for the same period was HKD 1,420,034,000, compared to HKD 1,419,336,000 in the previous year, indicating a slight increase of 0.05%[38]. - The total comprehensive income for the six months ended June 30, 2023, was HKD 5,881,923,000, compared to HKD 7,141,929,000 for the same period in 2022, reflecting a decrease of approximately 17.7%[38]. - The company reported a fair value loss of HKD 8,713,000 on financial instruments for the period, compared to a loss of HKD 18,065,000 in the same period of the previous year[38]. - The company's earnings per share for the six months ended June 30, 2023, was HKD 8.30, compared to HKD 8.29 for the same period in 2022, showing a marginal increase[38]. - The group reported a net impairment loss on investment properties of approximately HKD 2.26 million, primarily due to a decrease in fair value of properties in Tianjin[124]. - The group experienced a weaker RMB against HKD, leading to foreign exchange losses on bank and other borrowings[126]. - The company recorded a net loss of HKD 323.18 million for the six months ended June 30, 2023, compared to a profit of HKD 80.90 million for the same period in 2022[126]. - Shareholders' loss attributable to the company was approximately HKD 302.94 million, with a basic loss per share of HKD 0.0632[126]. Revenue and Sales - The group generates all revenue from customer contracts in China[27]. - The company has no single customer contributing 10% or more to its revenue for the six months ended June 30, 2023[45]. - The company's contract sales for the period amounted to RMB 4,880,370,000, representing a year-on-year increase of 200.7%[72]. - The total sales area was 157,000 square meters, up 68.8% year-on-year, with an average selling price of approximately RMB 31,000 per square meter[72]. - Key sales projects included Xi'an Natural World, Tianjin Shangshi Yangshan, Shanghai Shangshi Wanghai, and Shanghai Shangshi Yunduan, contributing 24.4%, 21.3%, 20.4%, and 14.9% to total contract sales respectively[72]. - The company’s contract sales for residential and affordable housing reached RMB 5,009,840,000, a year-on-year increase of 9.7%[96]. - The total average selling price increased by 114.5% to approximately RMB 29,600 per square meter, primarily due to a higher proportion of residential sales during the period[96]. - Property sales revenue reached HKD 1,271,776,000, accounting for 70.7% of total revenue, down from 95.0% in the previous year[102]. Investment and Development - The company holds approximately 55.13% of the shares in Shanghai Investment Holdings, which translates to 2,111,229,080 shares[10]. - The company has shifted several residential property projects from sale to rental, resulting in an increase in investment properties valued at HKD 211,911,000 as of June 30, 2023, up from HKD 110,506,000 in the previous year[51]. - The group has 28 real estate projects across 10 major cities in China, providing approximately 3.58 million square meters of saleable area[56]. - The company has a land reserve that supports future development projects, enhancing its market expansion strategy[121]. - The group has a total land reserve of approximately 3.58 million square meters as of June 30, 2023, across 28 projects in 10 cities[133]. - The company plans to continue focusing on urban integration development in Shanghai and other core first and second-tier cities, aiming to create greater value for shareholders and customers[69]. - The group plans to adopt a cautious strategy for future land acquisitions while maintaining sufficient land reserves[100]. - The company has ongoing projects with a total construction area of approximately 1.3 million square meters, including residential and commercial properties[118]. - The group has 12 ongoing projects with a total construction area of 2,630,000 square meters, including new projects in major cities like Xi'an and Shanghai[98]. Operational Performance - The gross profit for the period was HKD 772,063,000, a decline of 36.3%, with a gross margin of 42.9%, up 25.1 percentage points year-on-year[103]. - Rental income increased by 44.5% to HKD 375,736,000, compared to HKD 260,064,000 in the first half of 2022, due to the lifting of pandemic restrictions[99]. - The company has engaged in acquisitions to increase its non-controlling interests, enhancing its overall equity position[40]. - The company has completed and delivered fewer properties during the period, impacting overall performance[126]. - The company plans to optimize its debt and equity balance to maximize returns for shareholders, maintaining its overall strategy from the previous year[127]. - The management believes that the group has sufficient funds and future earnings to meet current working capital and future development needs[129]. - The group plans to enhance delivery volumes in the second half of the year while ensuring stable operations of new delivery models[132]. Market Outlook - The company anticipates that more projects will be completed and delivered in the second half of 2023, contributing to stable business development[68]. - The government is expected to strengthen policy support for the real estate sector in the second half of 2023, which may improve market confidence and demand[68]. - The group maintains a cautiously optimistic outlook for the real estate market, anticipating gradual recovery supported by government policies[110]. Employee and Management - The group employs 766 staff members, with compensation policies linked to performance, qualifications, and market statistics[130]. - The group has no foreign exchange hedging arrangements in place as of June 30, 2023, but will take necessary measures to mitigate exchange rate risks in the future[129]. - The group is committed to creating better value returns for shareholders through innovative business strategies and compliance with local real estate policies[132].