Core Viewpoint - Shenzhen Holdings (00604) anticipates a significant shift from profit to loss for the fiscal year 2023, projecting an unaudited consolidated loss attributable to equity shareholders between HKD 248 million and HKD 406 million, compared to an audited consolidated profit of HKD 2.085 billion for the fiscal year 2022 [1] Group 1 - The expected transition from profit to loss is primarily attributed to several factors, including the failure of most pre-sold properties to meet revenue recognition conditions in fiscal year 2023, leading to a decline in sales revenue and gross profit [1] - The performance of joint ventures and associates is expected to shift from profit to loss for the fiscal year 2023 [1] - The group anticipates an increase in financial costs for the fiscal year 2023 [1] Group 2 - Excluding the losses from joint ventures and associates, the group expects to achieve an unaudited consolidated profit attributable to equity shareholders of approximately HKD 338 million to HKD 415 million for fiscal year 2023 [1]

Financial Performance - The company achieved a revenue of approximately HKD 6.06 billion in the first half of 2023, a decrease of 61% compared to the same period last year[8]. - Gross profit was approximately HKD 2.08 billion, with an overall gross margin of 34.4%[8]. - The company reported a loss attributable to equity shareholders of approximately HKD 117 million, with a basic loss per share of HKD 0.0131[8]. - Revenue for the six months ended June 30, 2023, was HKD 6,057,890 thousand, a decrease of 61.0% compared to HKD 15,534,377 thousand in 2022[109]. - The company reported a total comprehensive loss of HKD 1,886,387 thousand for the period, compared to a loss of HKD 688,784 thousand in 2022[111]. - The company's basic and diluted loss per share was HKD (1.31), a significant decrease from HKD 26.53 in the previous year[109]. - The company reported a basic loss attributable to equity shareholders of HKD (116,615,000) for the six months ended June 30, 2023, compared to a profit of HKD 2,360,778,000 for the same period in 2022[174]. Property Sales and Development - Contract sales reached approximately RMB 14.8 billion, an increase of 198% year-on-year, completing about 64% of the annual sales target[11]. - The area of property sales recognized during the period was 120,726 square meters, a significant decrease of 63% year-on-year[54]. - Property sales revenue was approximately RMB 2.62 billion, equivalent to about HKD 2.95 billion, down 76% from the previous year[54]. - The total area of contract sales reached 344,670 square meters, with an average selling price of approximately RMB 42,908 per square meter[57]. - The residential products accounted for 84% of the contract sales amount, while non-residential products made up 16%[57]. - Approximately RMB 30 billion of saleable value is expected in the second half of the year, with new residential projects in prime locations[41]. Investment and Assets - The company holds approximately 1.8 million square meters of quality investment properties, aiming to enhance operational efficiency and asset value[43]. - The fair value of the group’s investment properties was approximately HKD 34.33 billion, with a revaluation increase of HKD 27.6 million during the period[84]. - The company’s investment properties were valued at HKD 34,327,189,000 as of June 30, 2023, with a fair value adjustment of HKD (1,104,872,000) during the period[179]. - The total fair value of financial assets as of June 30, 2023, was HKD 33,202,000, reflecting a decrease from HKD 111,451,000 as of December 31, 2022[145]. Operational Highlights - The group achieved hotel operating revenue of approximately HKD 190 million in the first half of 2023, a 62% increase compared to the same period last year[21]. - The group launched the self-operated hotel brand "Jingju" with four product lines, marking a significant breakthrough in the hotel management sector[21]. - The group organized over 100 market events in the first half of 2023, leading to a 40% year-on-year increase in visitor traffic from Hong Kong[20]. - The flagship hotel under the "Jingju" brand officially opened on June 9, 2023, at the renovated Women's and Children's Building in Shenzhen[21]. Financial Position and Debt Management - The overall asset-liability ratio, excluding advance receipts, was 68.9%, with a net debt ratio of 53.2%[8]. - As of June 30, 2023, total equity attributable to equity shareholders was HKD 41,753,223 thousand, down from HKD 49,174,926 thousand at the beginning of the year[118]. - The company successfully signed a medium to long-term loan agreement of HKD 5 billion in the first half of 2023, including a syndicate loan of HKD 3.5 billion[94]. - The average composite interest rate for bank and other borrowings was approximately 4.15% for the period, an increase of 0.83 percentage points compared to the previous year[94]. Strategic Focus and Future Outlook - The group aims to enhance financial risk control and improve debt structure as part of its strategic focus for the second half of 2023[38]. - The group plans to innovate its business model to adapt to the new development patterns in the real estate sector, emphasizing product quality as a core competitive advantage[39]. - The company plans to focus on strategic projects that leverage brand and operational advantages, particularly in high-quality urban areas[41]. Market and Economic Conditions - The manufacturing business reported revenue of approximately HKD 220 million, a 10% decrease year-on-year, due to global economic downturn impacts[91]. - The group recorded a foreign exchange loss of HKD 31.68 million in the first half of 2023, compared to a foreign exchange gain of HKD 150 million in the same period last year[98]. - The total tax expense for the six months ended June 30, 2023, was HKD 557,217 thousand, significantly lower than HKD 3,335,836 thousand in the same period of 2022, indicating a decrease of about 83%[170].

Financial Performance - Contract sales reached approximately RMB 14.8 billion, an increase of 198% year-on-year, achieving 64% of the annual sales target[2]. - Revenue amounted to HKD 6.06 billion with a gross profit of HKD 2.08 billion, resulting in an overall gross margin of 34.4%[2]. - The loss attributable to equity shareholders was HKD 117 million, with a basic loss per share of HKD 0.0131[2]. - Operating profit was HKD 1.33 billion, down from HKD 5.99 billion in the previous year[3]. - For the six months ended June 30, 2023, total revenue amounted to HKD 6,152,635 thousand, a decrease of 94,745 thousand compared to the previous period[14]. - The company reported a loss attributable to equity shareholders of HKD (116,615) for the six months ended June 30, 2023, compared to a profit of HKD 2,360,778 in the same period of 2022[25]. - The company reported a revenue of approximately HKD 6.06 billion for the first half of 2023, a decrease of 61% compared to the same period last year[45]. - Gross profit for the same period was approximately HKD 2.08 billion, with an overall gross margin of 34.4%[45]. - The company recorded a loss attributable to equity shareholders of approximately HKD 117 million, resulting in a basic loss per share of HKD 0.0131[45]. - The total tax expense for the six months ended June 30, 2023, was HKD 557,217, significantly lower than HKD 3,335,836 for the same period in 2022[22]. Revenue Sources - Revenue from property investment, property management, and hotel operations grew by 25%, 11%, and 62% respectively[2]. - Property development revenue was HKD 2,946,867 thousand, while property investment revenue was HKD 709,618 thousand, contributing to the overall revenue[14]. - Rental income for the six months ended June 30, 2023, was HKD 693,708, compared to HKD 555,731 in the previous year, representing an increase of 24.8%[17]. - Hotel operating revenue was approximately HKD 190 million, a 62% increase year-on-year, with the Mandarin Oriental Hotel in Shenzhen receiving a five-star rating from Forbes Travel Guide[55]. - Property investment revenue reached approximately HKD 690 million in the first half of the year, an increase of about 25% compared to the same period last year[49]. - The urban comprehensive operation business achieved a revenue of approximately HKD 1.42 billion, an 11% increase compared to the same period last year[87]. Assets and Liabilities - Total assets amounted to HKD 165.34 billion, compared to HKD 163.47 billion at the end of the previous year[5][8]. - Total liabilities increased to HKD 118.73 billion from HKD 113.91 billion[8]. - The total equity attributable to equity shareholders decreased to HKD 41.75 billion from HKD 44.63 billion[6]. - Cash and cash equivalents stood at HKD 11.44 billion, slightly down from HKD 11.67 billion[5]. - The company’s total loans secured by various assets were approximately HKD 8,175,624,000 as of June 30, 2023, down from HKD 10,339,363,000 as of December 31, 2022[36]. - The company’s investment properties had a fair value of approximately HKD 34.33 billion, with a revaluation increase of HKD 27.6 million during the period[86]. - The group’s cash balance, including restricted cash, was HKD 15.15 billion as of June 30, 2023, compared to HKD 13.36 billion at the end of 2022[94]. - The net debt ratio as of June 30, 2023, was 53.2%, down from 60.2% at the end of 2022[94]. Dividends - The board declared an interim dividend of HKD 0.02 per share[2]. - The interim dividend for 2023 is set at HKD 0.02 per share, amounting to HKD 177,976,000, compared to HKD 0.03 per share or HKD 266,964,000 for the interim dividend in 2022[27]. - The company declared a final dividend of HKD 0.12 per share for the year ended December 31, 2022, totaling approximately HKD 1,067,855,000, which was paid in cash on July 5, 2023[27]. Market and Operational Insights - The company faces challenges in the real estate market, with a slow recovery and significant differentiation in performance across projects[44]. - The overall occupancy rate of the smart mobility industrial park in Shenzhen remains above 96%, with a rental growth rate of 3%-5%[50]. - Cumulative signed subscription area reached 17,000 square meters, with over 80% occupancy rate in the Shima Technology Park located in Ma'anshan[51]. - The group expanded 43 new operational projects in the first half of 2023, with a total contracted area of approximately 75.61 million square meters[53]. - The company is focusing on urban renewal projects and will expedite negotiations for project relocations to realize resource transformation[69]. - The company is preparing to launch the Zhongshan Bay New City commercial project, which will feature Asia's first international indoor theme park cluster[72]. - The company plans to actively research the feasibility of asset securitization for high-value investment properties and parks to promote a virtuous cycle of asset management[70]. Corporate Governance and Compliance - The company has complied with all corporate governance codes as per the Hong Kong Stock Exchange Listing Rules during the six months ended June 30, 2023[101]. - The audit committee consists of three independent non-executive directors who reviewed the accounting principles and practices adopted by the group[102]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the six months ended June 30, 2023[103]. Employee and Talent Management - The total number of employees as of June 30, 2023, was 22,229, an increase from 21,786 as of June 30, 2022[99]. - Total employee compensation (excluding directors' remuneration) for the six months ended June 30, 2023, was approximately HKD 1.371 billion, down from HKD 1.498 billion for the same period in 2022[99]. - The company is committed to enhancing its talent pool by precisely recruiting urgently needed talents to support high-quality development[64]. - The company has implemented a centralized human resources database to unify the management of over 24,000 employees' business processes and compensation data[65]. Strategic Initiatives - The company plans to deliver approximately RMB 30 billion in saleable value in the second half of the year, focusing on residential projects in prime locations such as Shenzhen, Zhongshan, Shanghai, and Chengdu[68]. - The company aims to strengthen its agricultural sector by enhancing supply chain product systems and promoting brand effects, targeting a significant increase in annual sales revenue[73]. - The company is focusing on expanding its technology investments, particularly in the smart control industry, to enhance its market share and overseas presence[73]. - The group has successfully obtained a USD 730 million external debt quota and signed a HKD 5 billion medium to long-term loan agreement[62]. - The group continues to maintain a good rating on the MSCI-ESG index and has won the "Best ESG Award" for two consecutive years[61].

Financial Performance - Revenue for 2022 was HK$31,540.23 million, a decrease of 1.59% from HK$32,050.31 million in 2021[14] - Gross profit for 2022 was HK$10,692.57 million, down 13.95% from HK$12,425.75 million in 2021[14] - Profit before income tax increased to HK$7,367.04 million, a significant rise of 101.95% compared to HK$3,647.98 million in 2021[14] - The company reported a profit attributable to owners of HK$2,085.42 million, recovering from a loss of HK$2,721.89 million in the previous year[14] - Basic earnings per share improved to 23.43 HK cents, compared to a loss of 30.58 HK cents in 2021[14] - The Group achieved revenue of HK$31.54 billion in 2022, a decrease of 1.6% compared to the previous year[36] - Gross profit for the year was HK$10.69 billion, resulting in an overall gross profit margin of 33.9%[36] - Profit attributable to equity shareholders was HK$2.09 billion, with basic earnings per share at HK23.43 cents[36] Assets and Liabilities - Net assets excluding non-controlling interests decreased to HK$44,631.84 million, down 9.24% from HK$49,174.93 million in 2021[15] - Cash and bank deposits fell to HK$13,361.60 million, a decrease of 41.33% from HK$22,775.61 million in 2021[15] - Net loans increased significantly to HK$26,860.61 million, up 75.31% from HK$15,321.63 million in 2021[15] - Total assets increased to HK$163.47 billion, while total liabilities rose to HK$113.91 billion[22] Market and Sales Performance - Contracted sales for the year reached approximately RMB19.21 billion (approximately HK$22.35 billion), representing an increase of 0.6% year-on-year[38] - Real estate development sales revenue was approximately HK$25.65 billion, representing a decrease of 3.8% compared to the previous year, while maintaining a gross profit margin of approximately 37%[42] - The Group successfully acquired five land plots, increasing land reserves by approximately 0.74 million square meters, valued at over RMB 20 billion, with 65% of land reserves located in the Greater Bay Area[43] - The Group's projects in the Greater Bay Area accounted for 88% of contracted sales, with 9% from second-tier provincial capital cities and 3% from other cities[109] Operational Developments - The Group plans to focus on transforming into a technology-based industrial group while promoting integrated urban development and operation[35] - The Group's innovative business has accelerated its growth, contributing to qualitative improvements in its transformation efforts[35] - The Group's digital transformation has yielded results in customer demand, product innovation, and process restructuring[61] - The Group's agricultural tourism project aims to integrate three industries and establish a "Four Seasons" agricultural tourism series in the Greater Bay Area[56] Financial Management and Strategy - The Group raised HK$5 billion through a three-year syndicated loan, replacing an original loan of HK$3.5 billion[158] - The average comprehensive interest rate for the Group's bank and other borrowings was approximately 3.3%, an increase of 0.3 percentage points from the previous year[158] - The Group's guarantees for joint ventures reflect its commitment to supporting collaborative projects, amounting to HK$1,400.7 million[177] - The Group plans to explore asset securitization to revitalize stock assets and optimize overall resource allocation[84] Leadership and Governance - The company has a strong leadership team with significant experience in their respective fields, enhancing operational efficiency and strategic decision-making[193][197] - Shum Yip Group Limited is focused on expanding its real estate and infrastructure projects, leveraging the expertise of its executives[193] - The leadership team has a combined experience in various management roles, which is expected to drive future growth and innovation[193][197] - The company emphasizes the importance of financial oversight and strategic planning in achieving its long-term objectives[197]

Financial Performance - The group achieved revenue of HKD 31.54 billion, a slight decrease of 1.6% compared to the previous year[2]. - Profit attributable to equity shareholders was HKD 2.09 billion, with basic earnings per share of HKD 0.2343[2]. - Excluding the net impact of fair value changes of investment properties and financial assets, profit attributable to equity shareholders was HKD 3.10 billion, with core earnings per share of HKD 0.3487[2]. - The company reported a net profit of HKD 2.46 billion for the year, recovering from a loss of HKD 2.10 billion in the previous year[5]. - The company reported a profit attributable to equity shareholders of HKD 2.0854 billion, with a basic earnings per share of HKD 0.2343, marking a turnaround from a loss in the previous year[72]. - The gross profit for the year was HKD 10.6926 billion, resulting in an overall gross margin of 33.9%[72]. Revenue Breakdown - Contract sales amounted to approximately RMB 19.21 billion, an increase of 0.6% year-on-year, outperforming the market[2]. - Property development revenue was HKD 25.65 billion, with a gross profit margin of approximately 37%, maintaining a high profitability level in the industry[2]. - Revenue from property sales was HKD 25,654,000 in 2022, compared to HKD 26,660,228 in 2021, indicating a decrease of about 3.8%[21]. - Rental income for 2022 was HKD 1,195,839, down from HKD 1,497,427 in 2021, reflecting a decline of approximately 20.2%[21]. - The agricultural segment reported revenue of approximately HKD 400 million, with a year-on-year growth of over 80%[60]. - Manufacturing business revenue reached approximately HKD 607.2 million, a year-on-year increase of 33%, primarily from LCD display module manufacturing and related services[92]. Assets and Liabilities - Total assets amounted to HKD 163.47 billion, compared to HKD 162.77 billion in the previous year[10]. - Total liabilities increased to HKD 113.91 billion from HKD 108.40 billion year-on-year[11]. - The total assets of the company as of 2022 amounted to HKD 163,467,589, compared to HKD 162,765,871 in 2021, showing a slight increase of about 0.4%[20]. - Total liabilities for 2022 were HKD 113,910,616, an increase from HKD 108,395,991 in 2021, representing a rise of approximately 5.0%[20]. - The company’s total bank and other borrowings amounted to HKD 40.2222 billion, with a net debt ratio of 60.2%, an increase of 29 percentage points from the previous year[95]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.12 per share, bringing the total annual dividend to HKD 0.15 per share, with a payout ratio of 43% based on core earnings[2]. - The company declared a final dividend of HKD 1,067,855,000 for the year ended December 31, 2022, with a proposed dividend of HKD 0.12 per share[32]. - The board proposed a final dividend of HKD 0.12 per share for the year ended December 31, 2022, compared to HKD 0.08 per share in 2021, bringing the total dividend for the year to HKD 0.15 per share[102]. Operational Highlights - The group operates five reporting segments: property development, property investment, property management, manufacturing, and others[17]. - The company reported a total remuneration for key management personnel of HKD 25,278,000 in 2022, slightly up from HKD 25,239,000 in 2021, reflecting a marginal increase of about 0.2%[54]. - The company achieved a contract sales area of approximately 820,000 square meters, with a contract sales amount of approximately RMB 19.2093 billion (equivalent to approximately HKD 22.3538 billion), reflecting a 0.6% increase compared to last year[75]. - The company commenced new projects covering an area of approximately 2,774.2 thousand square meters, a decrease of 30% compared to the previous year[78]. - The company completed projects with a total area of approximately 1,131.8 thousand square meters, an increase of 37% year-on-year[80]. Financing and Debt Management - The average comprehensive interest rate on bank and other borrowings was 3.3%, which is better than the market[2]. - The group has successfully secured a USD 650 million external debt quota and organized a HKD 5 billion syndicated loan to replace an upcoming HKD 3.5 billion syndicated loan, resulting in a decrease in the comprehensive cost of fixed-rate debt[63]. - The company has expanded its financing channels to enhance liquidity, which remained unaffected by the sporadic outbreaks of the pandemic[98]. Strategic Initiatives - The company aims to transform into a technology-driven industrial group focusing on urban comprehensive development and investment services amid a challenging real estate environment[55]. - The group is focusing on high-quality development in the real estate sector, with a strategy to transition from high-leverage models to refined management of products and services[65]. - The group aims to optimize its ESG governance structure and management methods to ensure the effectiveness of its sustainable development strategies[64]. - The company plans to enhance its innovation in high-end manufacturing and agricultural technology, aiming for geometric growth in business scale over the next few years[71]. Market Position and Future Outlook - The group achieved a contract sales target of RMB 23 billion for the year, representing a growth of approximately 20%, supported by a saleable value exceeding RMB 45 billion[68]. - The group plans to enhance asset management and upgrade investment property structures, aiming for rental income of approximately HKD 1.2 billion from its 1.79 million square meters of existing properties[68]. - The group is actively pursuing opportunities in the agricultural sector, particularly in high-quality fruits and vegetables, with confidence in future market demand[66].

Financial Performance - In the first half of 2022, the company achieved a revenue of HKD 15.53 billion, a decrease of 20% compared to the same period last year[15]. - The gross profit margin increased by 7 percentage points to 45%, with a gross profit of HKD 6.95 billion, down 5% year-on-year[15]. - The profit attributable to equity shareholders was HKD 2.36 billion, an increase of 69% year-on-year, while the basic earnings per share rose by 70% to HKD 0.2653[15]. - The company achieved a revenue of approximately HKD 15,534.4 million, a decrease of 20% compared to the same period last year[28]. - The overall gross profit margin increased by 7 percentage points to 45%, with a gross profit of HKD 6,951.2 million, down 5% year-on-year[28]. - Profit attributable to equity shareholders rose by 69% to HKD 2,360.8 million, while excluding fair value changes, it increased by 24% to HKD 2,650.0 million[28]. - The company reported a total comprehensive loss of HKD 688,784 thousand for the period, compared to a total comprehensive income of HKD 2,642,431 thousand in 2021[57]. - Total comprehensive income for the six months ended June 30, 2022, was a loss of HKD 688,784,000, compared to a profit of HKD 2,642,431,000 for the same period in 2021[62]. Real Estate Development - Real estate development sales revenue was HKD 12.94 billion, a decrease of 23% year-on-year, with a gross profit margin of approximately 50%[16]. - The company recognized property sales of approximately 322,000 square meters, a decrease of 14% year-on-year, with net sales revenue of approximately HKD 12,939.9 million, down 23%[29]. - The gross profit margin for real estate development improved by 10 percentage points to 50%[29]. - Contracted sales area reached approximately 208,000 square meters, generating a revenue of approximately RMB 4.96 billion, with major contributions from projects in Dongguan and Zhongshan[31]. - The Greater Bay Area projects accounted for 70% of the contracted sales revenue, with residential products making up 70% of the total sales[31]. - The company commenced new construction projects covering approximately 850,000 square meters during the period[34]. - The average gross profit margin for Shenzhen projects was about 60%, while other cities averaged 22%[29]. - The company completed approximately 120,000 square meters of construction during the period[34]. - The total construction area of completed projects in the first half of 2022 was 122,655 square meters, with a saleable area of 75,864 square meters[36]. - The company expanded its land resources by acquiring 2 plots of land in Shenzhen and Shanghai, totaling approximately 69,243 square meters, with a total construction area of about 222,047 square meters[37][38]. - As of June 30, 2022, the company's land reserve had a total construction area of approximately 6.74 million square meters, with 1.08 million square meters for unstarted projects and 5.11 million square meters for projects under construction[39]. Financing and Debt Management - The group successfully secured a HKD 5 billion three-year syndicated loan and replaced an existing HKD 3.5 billion loan, maintaining a low overall financing cost with an average interest rate of 3.2%[21]. - The group paid approximately RMB 16.4 billion in land costs during the first half of the year, resulting in a net debt ratio of 42.0% (excluding bank loans and other loans) and 105.4% (including all interest-bearing liabilities) by the end of the period[22]. - As of June 30, 2022, the total bank and other borrowings amounted to HKD 43,997.1 million, an increase from HKD 38,097.2 million as of December 31, 2021[48]. - The long-term borrowings were HKD 30,584.6 million, representing approximately 70% of total borrowings, while short-term borrowings were HKD 13,412.6 million, accounting for about 30%[48]. - The average comprehensive interest rate for bank and other borrowings was approximately 3.2% per annum, an increase of 0.2 percentage points compared to the previous year[47]. - The company has secured loans against assets totaling HKD 10,247.76 million as of June 30, 2022, up from HKD 6,907.05 million as of December 31, 2021[51]. - The company reported a significant increase in bank and other borrowings from HKD 39,861,858 in 2021 to HKD 46,961,013 in 2022, reflecting a growth of approximately 17.5%[80]. - The total amount of loans from non-controlling shareholders reached HKD 11,923,086, with a notable increase in the one-year category to HKD 5,440,954[79]. - The company has established a diverse portfolio of financing options to support its operational and strategic initiatives[182]. Operational Efficiency and Strategy - The group aims to enhance management and operational efficiency, focusing on systematic process improvement and resource acquisition to strengthen cost control and value creation capabilities[23]. - The group plans to actively pursue investment opportunities with a focus on projects that require less initial investment but can yield significant resources post-incubation[26]. - The group will enhance its marketing capabilities and optimize sales strategies to achieve its annual sales targets despite market confidence issues[26]. - The group is committed to developing a comprehensive urban operation system and exploring merger and acquisition opportunities for accelerated growth[26]. - The group aims to upgrade its business model to focus on urban comprehensive development and technology industry investment services, enhancing its competitive edge[27]. - The company continues to focus on expanding its property development and management services in mainland China, where most of its revenue is generated[97]. Employee and Management - The company employed 21,786 staff as of June 30, 2022, an increase from 21,225 staff as of June 30, 2021[52]. - Total employee compensation (excluding directors' remuneration) for the six months ended June 30, 2022, was approximately HKD 1,497.7 million, compared to HKD 1,328.1 million for the same period in 2021[52]. - Total remuneration for key management personnel increased to HKD 12,877,000 in the first half of 2022 from HKD 12,182,000 in 2021, reflecting a rise of 5.7%[157]. Shareholder Returns - The group plans to maintain stable dividends to reward shareholders while pursuing sustainable development and value creation[27]. - The company declared dividends amounting to HKD 711,903,000 during the six months ended June 30, 2022[62]. - The company declared an interim dividend of HKD 0.03 per share for 2022, totaling HKD 266,964,000, compared to HKD 0.07 per share totaling HKD 622,993,000 for the same period in 2021[108]. Risks and Compliance - The company is closely monitoring and actively managing foreign exchange risks, particularly due to fluctuations in the RMB, which constitutes 55% of its borrowings[49]. - The company is subject to various financial risks, including market risk, credit risk, and liquidity risk[77]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules during the six months ended June 30, 2022[175]. - The company has established an audit committee consisting of three independent non-executive directors to review accounting principles and financial reporting matters[176].

Financial Performance - Revenue for 2021 reached HK$ 32,050.31 million, a 70.45% increase from HK$ 18,803.01 million in 2020[18] - Gross profit for the year was HK$ 12,425.75 million, reflecting a 40.97% increase compared to HK$ 8,814.58 million in 2020[18] - The profit before income tax decreased to HK$ 3,647.98 million, down 55.15% from HK$ 8,133.60 million in 2020[18] - The company reported a loss attributable to owners of HK$ 2,721.89 million, compared to a profit of HK$ 3,722.86 million in 2020[18] - The Group achieved a revenue of HK$32,050.3 million in 2021, representing a 70% increase compared to HK$18,803.0 million in 2020[38] - Gross profit for the year was HK$12,425.7 million, reflecting a 41% increase from the previous year's gross profit[38] - Loss attributable to equity shareholders of the Company was HK$2,721.9 million, compared to a profit of HK$3,722.9 million in 2020[38] - The Group incurred a significant fair value impairment of financial assets amounting to approximately HK$6,374.9 million due to industry fluctuations[38] Cash and Debt Management - Cash and bank deposits increased by 21.73% to HK$ 22,775.61 million from HK$ 18,710.44 million in 2020[19] - Net loans rose by 26.44% to HK$ 15,321.63 million, up from HK$ 12,117.97 million in 2020[19] - The average comprehensive interest rate for bank and other borrowings was maintained at a low level of 3.0%[58] - The net debt ratio, including all interest-bearing liabilities, was maintained at 61.2% as of December 31, 2021[59] - As of December 31, 2021, the Group's total bank and other borrowings reached HK$38,097.2 million, an increase from HK$30,828.4 million in 2020[156] - The average comprehensive interest rate on the Group's bank and other borrowings was approximately 3.0% per annum, a decrease of 0.7 percentage points from the previous year[162] Dividend and Shareholder Returns - The proposed final dividend per share was reduced to 15.00 HK cents, a decrease of 16.67% from 18.00 HK cents in 2020[18] - The Board recommended a final dividend of HK8.00 cents per share for 2021[38] Property Development and Sales - Property development segment turnover increased to HK$26,660.2 million in 2021 from HK$14,079.6 million in 2020, marking an increase of 89%[22] - Real estate development and sales income amounted to approximately HK$26,660.2 million, marking an 89% increase from last year, with a gross profit margin of about 40%[43][45] - Contracted sales reached approximately RMB 19.1 billion (around HK$23 billion), representing a 32% increase over the previous year, with 67% of sales coming from the Greater Bay Area[42][45] - The Group recorded property sales area booked of approximately 751,000 square meters, a 74% increase compared to last year, with net revenue from property sales of approximately HK$26,660.2 million, representing an 89% increase[91] - The gross profit margin of property development and sales was 40%, a decrease of 13 percentage points from the previous year[91] Land Acquisition and Reserves - The Group holds a land reserve with a gross floor area of approximately 6.74 million square meters, with 4.28 million square meters located in the Greater Bay Area[6] - The Group acquired 16 land projects across 12 cities, adding approximately 3.22 million square meters to its land reserves, with 90% of these projects located in first-tier and second-tier cities[44][46] - By the end of 2021, the Group had land reserves with a capacity building area of approximately 6.74 million square meters, with 63% located in the Greater Bay Area[124] Urban Operations and Management - The Group's urban comprehensive operation business achieved an operating income of approximately HK$2,477.6 million, representing an increase of 11% compared to last year[136] - The managed area of the urban comprehensive operation business reached approximately 61.55 million square meters, an increase of 31% year-on-year[136] - The Group expanded 83 urban integrated operation projects, adding over 16.41 million square meters under management, including 72 traditional property management projects[134] Strategic Initiatives and Future Plans - The Group defines 2022 as the "year of management improvement," focusing on organizational reform and digital transformation to enhance management efficiency[72] - The annual saleable value target for the Group in 2022 is expected to exceed RMB 40 billion, with a contracted sales target of RMB 20 billion[75] - The Group aims to manage over 100 million square meters in urban operations, leveraging strategic cooperation with local governments[76] - The Group will actively expand high-quality land reserves in the Greater Bay Area and higher-tier cities, focusing on urban renewal and land consolidation[74] Corporate Governance and Leadership - Dr. Lu Hua has been the Executive Director since June 21, 2011, and Chairman since January 31, 2013, with over 20 years of experience in real estate development and corporate governance[182] - Ms. Cai Xun has served as an Executive Director since August 27, 2020, and has extensive experience in human resources management and administrative management[184] - The company emphasizes the importance of independent non-executive directors in maintaining corporate governance and accountability[200] ESG and Corporate Social Responsibility - The Group received an "A" rating from MSCI for its ESG performance, the highest among domestic real estate enterprises for two consecutive years[62] - The company is actively involved in public service initiatives, reflecting its commitment to corporate social responsibility[199]

Revenue and Profitability - The company achieved a revenue of HKD 19.4 billion in the first half of 2021, an increase of 371% compared to the same period last year[9]. - Gross profit reached HKD 7.3 billion, up 366% year-on-year, with a net profit attributable to equity shareholders of HKD 1.39 billion, reflecting a 332% increase[9]. - The group achieved a revenue of approximately HKD 19,403.8 million in the first half of 2021, representing a 371% increase compared to the same period last year[27]. - The overall gross profit margin remained stable at 38%, with a gross profit of HKD 7,300.5 million, up 366% year-on-year[27]. - The net property sales revenue reached approximately RMB 14,107.0 million (equivalent to HKD 16,904.4 million), a significant increase of 618% compared to the previous year[28]. - The group reported a basic earnings per share of HKD 0.1565, an increase of 329% year-on-year[27]. - The company reported a profit of HKD 1,393,043 thousand for the six months ended June 30, 2021, compared to HKD 322,590 thousand for the same period in 2020[177]. - The company reported a pre-tax profit for the six months ended June 30, 2021, was HKD 5,655,574, compared to HKD 723,203 in the prior year, indicating a substantial increase of around 684%[131]. Sales and Contract Performance - Contract sales amounted to approximately RMB 7.2 billion, completing 40% of the annual sales target, with significant contributions from projects in the Greater Bay Area[11]. - Real estate development sales revenue was approximately HKD 16.9 billion, a substantial increase of 679% compared to the previous year, maintaining a gross profit margin of about 39%[11]. - The company achieved contract sales area of approximately 347,000 square meters and contract sales revenue of about RMB 7.2 billion, with an average selling price of RMB 20,759 per square meter[33]. - Major contributions to sales came from Nanjing Qinglong Shangfu (RMB 1.37 billion), Shenzhen Shenye Dongling (RMB 870 million), and Ma'anshan Shenye Huafu (RMB 730 million)[33]. - The Greater Bay Area projects accounted for 47% of the total contract sales revenue, while second and third-tier cities contributed 38% and 15% respectively[33]. Land and Development - The company expanded its land reserves by approximately 1.76 million square meters, with a total land cost of about RMB 9.4 billion during the first half of 2021[14]. - The company commenced new construction of approximately 1,069,437 square meters and completed 156,829 square meters during the first half of 2021[38][39]. - The company expanded land resources by acquiring four plots totaling approximately 800,000 square meters, with a total planned construction area of about 1.76 million square meters[41]. - The company plans to focus on the Guangdong-Hong Kong-Macao Greater Bay Area and key first and second-tier cities for future developments[41]. Financial Position and Debt - The average comprehensive annualized interest rate for bank and other borrowings was 3.2%, a decrease of 0.5 percentage points from the previous year[17]. - The net debt ratio, including all interest-bearing liabilities, was maintained at a low level of 43.7% as of June 30, 2021[17]. - Total bank and other borrowings amounted to HKD 34,642.2 million as of June 30, 2021, an increase from HKD 30,828.4 million as of December 31, 2020[64]. - The group has pledged loans totaling HKD 6,894.5 million as of June 30, 2021, significantly up from HKD 2,592.3 million as of December 31, 2020[74]. - The total liabilities decreased to HKD 94,635,347 thousand as of June 30, 2021, from HKD 96,869,978 thousand as of December 31, 2020, representing a reduction of 2.3%[87]. Investment and Asset Management - The investment property total area is approximately 1.29 million square meters, with 82% located in Shenzhen, generating investment income of approximately HKD 685.3 million, a 22% increase year-on-year[49]. - The company’s investment in joint ventures contributed a profit of HKD 6.1 million from Shenzhen Longtong Real Estate Development Co., Ltd., a 578% increase year-on-year[58]. - The fair value of the financial asset held in Evergrande Real Estate was HKD 5,979 million, accounting for 4% of the group's total assets, with a fair value loss of approximately HKD 832.8 million during the period[63]. - The company recognized a loss of HKD 145,277 from investment properties during the reporting period, compared to a loss of HKD 464,275 in the same period last year[131]. Operational Performance - The urban comprehensive operation business achieved a contract management area of approximately 57 million square meters, a 21% increase from the end of last year, with revenue of approximately HKD 1,211.6 million, up 32% year-on-year[50]. - The hotel operations generated revenue of approximately HKD 71.4 million, a 138% increase compared to the same period last year[56]. - The manufacturing business achieved revenue of approximately HKD 192.4 million, a 51% increase year-on-year[57]. - The company launched 52 new projects in its urban operation services segment, covering over 11 million square meters, with 75% of revenue coming from non-related external projects[16]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.07 per share for the first half of 2021[9]. - The company declared dividends of HKD (978,988) thousand to equity shareholders during the period[88]. - The board proposed an interim dividend of HKD 0.07 per share on August 27, 2021, amounting to HKD 622,993,000, which was not recognized as a liability in the interim financial information[180]. Employee and Operational Metrics - The group employed 21,225 employees as of June 30, 2021, an increase from 19,603 employees as of June 30, 2020, with total salaries amounting to approximately HKD 1,328.1 million for the six months ended June 30, 2021[75]. - The company has expanded its management area by over 1.1 million square meters through 52 new projects in the first half of the year[50].

Financial Performance - Revenue for 2020 reached HK$ 18,803.01 million, an increase of 26.03% from HK$ 14,919.47 million in 2019[12] - Gross profit for the year was HK$ 8,814.58 million, representing a significant increase of 71.99% compared to HK$ 5,125.12 million in 2019[12] - Profit before taxation increased by 21.68% to HK$ 8,133.60 million from HK$ 6,684.54 million in 2019[12] - Profit attributable to equity shareholders decreased by 8.4% to HK$3,722.9 million; however, excluding the net effect of changes in fair value of investment properties, it increased by 48.7% to HK$4,553.0 million[30] - Basic earnings per share were HK42.03 cents, a decrease of 11.6% from the previous year[30] - The Group achieved a turnover of HK$18,803.0 million in 2020, representing a 26.0% increase from the previous year[30] - Gross profit for the year was HK$8,814.6 million, reflecting a significant increase of 72.0% compared to 2019[30] - The Group's total assets increased to HK$152,275.8 million, up from HK$125,272.9 million in 2019, representing a growth of 21.6%[20] - Total liabilities rose to HK$96,869.98 million, compared to HK$76,900.65 million in the previous year, indicating a 26.0% increase[20] - The Group's net assets increased to HK$55,405.85 million, up from HK$48,372.30 million, reflecting a growth of 14.3%[20] Cash and Debt Management - Cash and deposits, including restricted cash, increased by 51.22% to HK$ 18,710.44 million from HK$ 12,372.76 million in 2019[13] - The net loan to net assets ratio, excluding non-controlling interests, decreased to 23.94% from 26.81% in 2019[15] - The Group's net gearing ratio was maintained at a low level of 41.7%, with all indicators of the "Three Red Lines" falling into the green level[51] - The average comprehensive interest rate for the Group's bank and other borrowings was 3.7% as of December 31, 2020, with a net debt ratio of 41.7%[56] - The Group's total bank and other borrowings amounted to HK$30,828.4 million, an increase of 27.5% from HK$24,297.9 million as of 31 December 2019[148] - The Group's cash balance, including restricted cash, was HK$18,710.4 million as of 31 December 2020, up from HK$12,372.8 million in the previous year, representing a 51.5% increase[150] - The net gearing ratio with liabilities including bank loans and other borrowings only was 23.9%, a decrease from 26.8% at the end of the previous year[154] Land and Development Strategy - The company has a planned total gross floor area land reserve of approximately 4.36 million square meters across various cities in China[5] - The company aims to optimize its land reserve structure and focus on the Greater Bay Area and key first-tier and second-tier cities[5] - The Group plans to double its land reserves, sales revenue, and profits over the next five years, aiming for land reserves exceeding 10 million square meters[66] - The Group aims to increase land reserves to over 10 million square meters in the next five years, focusing on Shenzhen and key first-tier and second-tier cities[67] - The Group's annual saleable value for 2021 is approximately RMB 32 billion, with a contracted sales target of RMB 18 billion, representing a 24% increase over 2020[69] Real Estate Sales and Revenue - Real estate sales revenue reached HK$14.08 billion, marking a 33.7% increase year-on-year, with a gross profit margin of 52.8%[33] - The Group achieved contracted sales of approximately RMB14.5 billion, with projects in the Greater Bay Area accounting for about 74%[34] - The total area of contracted sales in 2020 was 431,612 square meters, with a total sales amount of RMB12,511.9 million[93] - The group achieved contracted sales area of approximately 567,000 square meters and contracted sales income of approximately RMB14.46 billion, with an average price per square meter of RMB25,521[90] - Major contributions to contracted sales came from the Parkview Bay residential project in Shenzhen, which realized approximately RMB3.53 billion in sales, and the Shum Yip Terra Licheng office project, which achieved RMB2.15 billion in sales[90] Rental and Property Management - Rental income for the year amounted to HK$1.22 billion, reflecting a 14.2% increase year-on-year, and a 2.0% increase after adjusting for rent waivers[40] - The Group's property investment income for the year was approximately HK$1,223.2 million, representing a year-on-year increase of 14.2%[122] - The actual rental income, after accounting for rent exemptions, was approximately HK$1,092.5 million, reflecting a 2.0% increase compared to the previous year[122] - The Group's hotel operations generated approximately HK$116.5 million in operating income, a decrease of 41.2% year-on-year due to the pandemic[129] - The Group's rental income was impacted by COVID-19, leading to rent waivers for over 7,000 enterprises and individual businesses, benefiting from a two-month rent waiver initially, extended for another month for certain tenants[162] Employee and Management Information - The total remuneration for employees (excluding Directors) for the year ended December 31, 2020, was approximately HK$2,075.2 million, up from HK$1,919.7 million in 2019[167] - The Group employed 20,452 employees as of December 31, 2020, an increase from 19,444 in 2019[167] - Dr. Lu Hua has been the Executive Director and Chairman since January 31, 2013, with over 20 years of experience in real estate development and corporate governance[173] - Mr. Huang Wei has served as Executive Director and President since July 21, 2015, bringing extensive experience in urban development and corporate management[176] - Ms. Cai Xun joined as Executive Director on August 27, 2020, with a strong background in human resources management[180] Market Outlook and Future Plans - The Group anticipates a compound annual growth rate of 20% in income from development, sales, and rentals over the next five years[66] - The Group plans to accelerate the development of urban operation services, aiming for a revenue scale 3-5 times the current level in the next five years[67] - The real estate market in Shenzhen and the Greater Bay Area is expected to achieve sound and stable development in the long term due to strict control policies[60] - The management anticipates that the impact of COVID-19 will gradually reduce in 2021, allowing for a return to normal business operations[160]

Financial Performance - The company achieved a revenue of HKD 4,121.6 million, a decrease of 6.4% compared to the same period last year[6]. - Gross profit reached HKD 1,565.9 million, an increase of 5.7% year-on-year[6]. - Net profit attributable to equity shareholders was HKD 322.6 million, down 27.8% from the previous year[6]. - The group achieved a revenue of approximately HKD 4,121.6 million in the first half of 2020, a decrease of 6.4% compared to the same period last year[22]. - The gross profit margin increased to 38.0%, up by 4.4 percentage points year-on-year, with a gross profit of HKD 1,565.9 million, an increase of 5.7%[22]. - The net profit attributable to equity shareholders was HKD 322.6 million, a decrease of 27.8% year-on-year, while excluding fair value changes, the profit rose by 76.1% to HKD 1,001.0 million[22]. - The group reported a significant decrease in fair value of investment properties, with a net decrease of HKD 462,759 thousand compared to an increase of HKD 66,595 thousand in the previous year[62]. - The company reported a decrease in total segment profit to HKD 828,035 for the six months ended June 30, 2020, down from HKD 1,553,359 in the same period of 2019[80]. - Basic earnings per share for the six months ended June 30, 2020, were HKD 36.5 cents, down from HKD 53.1 cents for the same period in 2019, reflecting a decrease of approximately 31.5%[90]. Sales and Contracts - Contracted sales amounted to RMB 7.582 billion, representing a year-on-year growth of 17.8%[7]. - Contracted sales area reached 256,396 square meters, with a total contracted sales revenue of approximately RMB 7.582 billion, averaging RMB 29,572 per square meter[26]. - The Greater Bay Area projects accounted for 79% of the total contracted sales revenue, with residential products contributing 64%[26]. - The adjusted sales target for the year is approximately RMB 28 billion, maintaining the same level of sales as the previous year[17]. Property Development and Investment - The company secured two land parcels in Chengdu, with a total area of approximately 134,000 square meters and a total land cost of RMB 18 billion[10]. - The company plans to expand its operations in the Guangdong-Hong Kong-Macao Greater Bay Area and key second-tier cities[10]. - The group commenced new construction projects totaling 209,175 square meters during the first half of 2020[29]. - The group has a total of approximately HKD 31.2 billion in unsold contracted sales as of June 30, 2020[26]. - The group acquired two prime land parcels in Chengdu, with a total investment of RMB 18 billion, including RMB 11.5 billion for a residential site and RMB 6.5 billion for a mixed-use site[30][31]. Financial Position and Debt - The company's financing cost decreased by 0.33 percentage points to 4.37%, and the net debt ratio dropped by 4.0 percentage points to 36.7% as of June 30, 2020[12]. - As of June 30, 2020, total bank and other borrowings amounted to HKD 26,095.4 million, an increase from HKD 24,297.9 million as of December 31, 2019[52]. - The average comprehensive interest rate for bank and other borrowings was 4.37%, a decrease of 0.33 percentage points from the previous year[52]. - The company's total liabilities decreased from HKD 3,929,733 in 2019 to HKD 3,110,857 in 2020, reflecting a reduction of approximately 20.8%[70]. Cash Flow and Liquidity - The group's cash balance, including restricted cash, was HKD 18,713.6 million as of June 30, 2020, up from HKD 12,372.8 million at the end of 2019[54]. - For the six months ended June 30, 2020, the net cash generated from operating activities was HKD 4,046,785, an increase from HKD 2,103,164 in the same period of 2019, representing a growth of approximately 92.4%[70]. - The total cash and cash equivalents as of June 30, 2020, amounted to HKD 17,259,360, compared to HKD 9,546,339 at the end of June 30, 2019, indicating an increase of approximately 80.5%[70]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.07 per share for the six months ended June 30, 2020, consistent with the interim dividend of HKD 0.07 per share in 2019[91]. - The group received dividends from its strategic investment in Evergrande Real Estate, totaling approximately RMB 14.5 billion[11]. - The company is committed to providing stable returns to shareholders through continuous improvement in operational efficiency and profitability[12]. Impact of COVID-19 - The company implemented rent reductions for tenants during the pandemic, maintaining strong customer relationships[8]. - The COVID-19 pandemic has negatively impacted the group's property development and investment income, leading to delays in project progress and reduced rental income due to rent concessions offered to tenants[146]. - The company recognized rental concessions related to COVID-19 amounting to HKD 3,462,000, which were accounted for as variable lease payments[75]. Strategic Initiatives - The company plans to explore a new "property management city" model in various districts of Shenzhen, enhancing urban management operations[17]. - The company intends to deepen cooperation with its parent company to increase land reserves in Shenzhen and the Greater Bay Area[18]. - The company is focused on sustainable and quality growth, aiming to enhance its urban service capabilities and resource acquisition over the next five years[19]. - The company emphasizes the importance of the "dual zone drive" strategy to capture urban renewal projects in key cities of the Greater Bay Area[18]. Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules during the reporting period[161]. - The audit committee consists of three independent non-executive directors who reviewed the accounting principles and practices adopted by the group[162].