Company Overview - Shenzhen Investment Limited has a land reserve with a planned total gross floor area close to 4.38 million square meters across various cities in China[21]. - The company focuses on property development, including residential, industrial, and commercial real estate, while intensifying its development in Shenzhen and the Greater Bay Area[21]. - Shenzhen Investment Limited has been listed on the Main Board of The Stock Exchange of Hong Kong Limited since 1997[21]. - The company is under the supervision of the State-owned Assets Supervision and Administration Commission of Shenzhen Municipal[21]. - The company aims to be a first-class real estate developer and operator in the Greater Bay Area[21]. Strategic Goals - The core strategic goal of the company is to promote long-term sustainable development, aiming to provide stable returns and create value appreciation for shareholders[22]. - The company is committed to optimizing its land reserves structure and concentrating its assets in key first- and second-tier cities[21]. - The company plans to expand its development in other core cities in China[21]. - The Group plans to upgrade its strategic position from a "real estate developer" to an "operation service provider for urban construction" to enhance shareholder returns[34]. - The Group aims to maintain stable operating indicators such as sales and rental income despite the impact of the epidemic[64]. Financial Performance - The company's revenue for the year ended December 31, 2019, was HK$14,919.47 million, a decrease of 10.35% compared to HK$16,642.77 million in 2018[27]. - Gross profit for 2019 was HK$5,125.12 million, down 14.17% from HK$5,970.98 million in 2018[27]. - Profit attributable to equity shareholders increased by 18.96% to HK$4,062.80 million from HK$3,415.22 million in 2018[27]. - The company reported a basic earnings per share of 47.53 HK cents, an increase of 13.36% from 41.93 HK cents in 2018[27]. - The net assets excluding non-controlling interests as of December 31, 2019, were HK$44,474.66 million, reflecting a 6.64% increase from HK$41,703.98 million in 2018[28]. Market Performance - The Group achieved a turnover of HK$14,919.5 million in 2019, representing a decrease of 10.4% compared to the previous year[41]. - The Group realized contracted sales of approximately RMB16.8 billion, marking a 2.1% increase from the previous year, with about 80% of sales coming from Shenzhen projects[42]. - The residential market in Shenzhen saw a 26.5% increase in trading area compared to last year, although the apartment market remained sluggish due to sales restrictions[36]. - Major projects like Shum Yip Zhongcheng and Qianhai Parkview Bay were highly popular, with Shum Yip Zhongcheng selling out on launch day and 90% of units in Qianhai Parkview Bay sold[43]. Operational Challenges - The real estate industry faced significant challenges due to the epidemic, impacting sales centers and construction commencement, with long-term effects expected on market sentiment and family income[53][55]. - The Group's proactive measures include waiving rent and enhancing property management to mitigate the epidemic's impact on operational efficiency[61]. - The Group is committed to sustainable development and resource exploration in the future, leveraging its high-quality assets and financial resources[64]. Corporate Social Responsibility - The Group initiated measures to support non-state-owned enterprises by waiving two months' rent during the epidemic, demonstrating corporate social responsibility[52][54]. - The Group actively supports community development and poverty alleviation efforts, particularly in response to the COVID-19 pandemic[193]. Governance and Management - Mr. HUANG Wei has been the Executive Director and President since July 21, 2015, with extensive management experience[151]. - Mr. MOU Yong has served as an Executive Director since December 1, 2009, and has a background in corporate governance and administrative management[153]. - The Group's profit for the year ended December 31, 2019, is detailed in the financial statements on pages 98 to 268[174]. Risk Management - Key risks include macroeconomic fluctuations and the impact of the COVID-19 pandemic on the Group's development and operations[177][178]. - The Group emphasizes legal compliance and conducts all business activities in accordance with applicable laws and regulations[175]. - Operational risks may arise from inadequate internal processes and external partner behaviors, leading the Group to enhance its management and internal control systems[186]. Future Outlook - The Group anticipates aggressive growth in land reserves, contracted sales, and recurring income over the next five years[76]. - The Group plans to deepen cooperation with its ultimate holding company to increase prime land reserves in Shenzhen and the Greater Bay Area[65]. - The Group will actively seek urban renewal project opportunities in key cities within the Guangdong-Hong Kong-Macao Greater Bay Area[65].

Financial Performance - The company achieved a revenue of HKD 4,404.1 million, a year-on-year decrease of 61.0%[7] - Gross profit for the period was HKD 1,481.6 million, down 61.8% compared to the previous year[7] - The net profit attributable to equity shareholders was HKD 447.1 million, an increase of 105.8% year-on-year[7] - The gross profit margin was 33.6%, down by approximately 0.7 percentage points year-on-year, with a gross profit of HKD 1,481.6 million, a decline of 61.8%[19] - The net profit for the period was HKD 555.3 million, representing a significant increase of 75.1% compared to HKD 317.1 million in the same period of 2018[69] - Basic earnings per share for the six months ended June 30, 2019, were HKD 5.31, compared to HKD 2.70 for the same period in 2018, indicating a growth of 96.3%[69] - The group’s profit before tax for the six months ended June 30, 2019, was HKD 447,067,000, compared to HKD 217,266,000 for the same period in 2018, representing an increase of approximately 106.5%[149] - The total tax expense for the period was HKD 494,310,000, a decrease of 68.0% from HKD 1,544,663,000 in the previous year[148] Sales and Contracted Sales - Contracted sales amounted to approximately RMB 6,435.9 million, representing a year-on-year growth of 49.4%[8] - The company plans to achieve a full-year contract sales target of RMB 18 billion, supported by the completion of key projects in the second half of the year[14] - The company achieved contract sales area of approximately 235,000 square meters and contract sales revenue of approximately RMB 6,435.9 million, representing a year-on-year increase of about 49.4%[25] - The average selling price per square meter was RMB 27,434, with 86% of sales coming from the Greater Bay Area, 5% from second-tier cities, and 9% from third and fourth-tier cities[25] Property Development and Management - The company expanded its property management portfolio by adding 28 new projects, increasing the managed area by 2.48 million square meters[11] - The company successfully launched two shopping malls, Tanglang City and Shenye Dongling, during the period[11] - The property management business achieved revenue of approximately HKD 935.5 million, representing a year-on-year increase of 2.8%[47] - The company launched new construction projects covering approximately 718,000 square meters during the first half of 2019[30] - The company reported rental income of approximately HKD 504.4 million, a year-on-year increase of about 14.8%, with a gross profit margin of 77.7%[43] Financial Position and Debt Management - The company maintained a net debt ratio of 49.6% as of June 30, 2019[12] - The group’s total bank and other borrowings amounted to HKD 25,210.6 million, with long-term borrowings constituting 63.7% of the total[56] - The group’s cash balance, including restricted cash, was HKD 11,701.6 million, down from HKD 12,655.2 million at the end of the previous year[58] - The company reported a net cash flow from operating activities of HKD 5,165,142, with interest paid at HKD 629,142 and tax paid at HKD 2,432,836[84] - The company’s total liabilities decreased by HKD 505,868, indicating improved financial health[81] Accounting Standards and Financial Reporting - The company adopted the revised retrospective method for HKFRS 16 starting January 1, 2019, which may impact future financial reporting[78] - The transition to HKFRS 16 did not have a significant impact on the company's financial statements as it continued to apply previous assessments for contracts established before January 1, 2019[96] - The group has confirmed that the initial application of the new accounting standard did not affect the opening balance of equity[112] - The estimated impact of adopting HKFRS 16 on financial performance and cash flow was positive, with significant changes in cash flow presentation[124] Employee and Compensation - The total compensation for employees (excluding directors' remuneration) for the six months ended June 30, 2019, was approximately HKD 810.7 million, up from HKD 726.9 million for the same period in 2018, reflecting a year-on-year increase of 11.3%[62] - The group employed a total of 18,950 employees as of June 30, 2019, an increase from 18,548 employees as of June 30, 2018[62] Investment and Future Plans - The company plans to continue focusing on the Greater Bay Area and actively participate in land auctions[10] - The company aims to transform from a real estate developer to a city construction and operation service provider, ensuring sustainable and quality growth[17] - The company is focusing on diversifying its business units, including property management and manufacturing, to optimize resource allocation[134] Stock Options and Capital Management - The company has a stock option plan approved on June 22, 2012, to incentivize directors and employees for their contributions to the business[185] - The company recognized stock option expenses of HKD 15,054,000 for the six months ended June 30, 2019, compared to HKD 20,810,000 for the same period in 2018[194] - The company’s capital management policy aims to optimize capital structure and maximize shareholder value[198]

Financial Performance - Revenue for the year ended December 31, 2018, was HK$ 16,642.76 million, representing a 62.30% increase from HK$ 10,254.50 million in 2017[17] - Gross profit for 2018 was HK$ 5,970.98 million, a 68.13% increase compared to HK$ 3,551.41 million in 2017[17] - Profit attributable to equity shareholders for the year was HK$ 3,415.22 million, down 31.02% from HK$ 4,950.94 million in 2017[17] - Basic earnings per share decreased to 41.93 HK cents, a decline of 34.11% from 63.64 HK cents in 2017[17] - The company reported a gross profit margin of 35.88% for 2018, up from 34.63% in 2017[20] - The Group achieved a turnover of HK$16,642.8 million in 2018, representing an increase of 62.3% compared to the previous year[33] - Gross profit for the year was HK$5,971.0 million, reflecting a 68.1% increase year-on-year[33] - Profit attributable to equity shareholders decreased by 31.0% to HK$3,415.2 million, impacted by one-off gains from the previous year and non-cash losses from fair value changes[33] - Basic earnings per share were HK41.93 cents, a decrease of 34.1% from the previous year[33] - The Group's basic earnings per share decreased by 34.1% to HK$0.4193, with a total dividend payout of HK$0.1800 per share for the year[36] Sales and Market Performance - Contracted sales reached approximately RMB16.45 billion, marking a 43.1% increase over the last year, with 79% of sales from Shenzhen projects[34] - The Group achieved contracted sales of approximately 571,000 square meters and a sales income of approximately RMB 16.45 billion, representing a 43.1% increase year-over-year[72] - Property sales booked amounted to approximately 399,000 square meters, a decrease of 17.2% year-over-year, while net revenue from property sales increased by 89.0% to approximately RMB10,185.4 million (equivalent to HK$12,062.6 million)[66] - The average selling price per square meter was RMB 28,792, with significant contributions from projects like Shum Yip Zhongcheng and Taifu Square[73] - Projects in Ma'anshan and Huizhou exceeded their sales targets, indicating strong market performance outside Shenzhen[73] Financial Position and Debt - Net loans increased by 27.08% to HK$ 12,605.57 million from HK$ 9,919.15 million in 2017[18] - The net loan to net assets ratio (excluding non-controlling interests) rose to 30.23% in 2018 from 23.92% in 2017[20] - The net gearing ratio as of December 31, 2018, was 54.2%, with a syndicated loan obtained amounting to HK$10 billion and borrowing costs maintained at a low level of 4.8%[45][46] - The Group's total bank and other borrowings amounted to HK$ 25,260.8 million, an increase from HK$ 22,903.2 million in 2017[132] - Long-term borrowings increased to HK$ 19,362.3 million, representing approximately 76.6% of total borrowings[132] - The average comprehensive interest rate for the Group's borrowings was approximately 4.8% per annum during the year[132] Investment and Development Strategy - The total planned gross floor area of land reserves is approximately 6.28 million square meters, with 2.47 million square meters located in Shenzhen[9] - The Group is focusing on expanding quality land resources and launching mixed-ownership reforms to support long-term growth[31] - The Group's vision is to transition from a "real estate developer" to an "operation service provider for urban construction" over the next five years[58] - The Group plans to maintain its strategy and expand resources for sustainable development despite economic uncertainties, focusing on improving asset quality and enhancing profitability[49] - The Group will actively participate in urban renewal projects in key cities within the Greater Bay Area, leveraging its experience in urban renewal[56] Corporate Governance and Management - The Company has complied with all code provisions of the Corporate Governance Code throughout 2018[187] - The Board consists of four executive directors and five non-executive directors, with independent non-executive directors making up at least one-third of the Board[197] - The Company has established a comprehensive corporate governance framework aimed at enhancing long-term shareholders' value[192] - The management team includes professionals with significant experience in both public and private sectors, ensuring a well-rounded approach to financial strategy[167] - The company is focused on maintaining strong financial oversight and governance through its experienced directors and management team[167] Employee and Remuneration - The Group employed 18,776 employees as of December 31, 2018, slightly down from 18,867 in 2017[141] - Total remuneration for the year ended December 31, 2018, was approximately HK$1,627.0 million, compared to HK$1,615.8 million in 2017[141] - The Group's remuneration packages are reviewed annually to ensure competitiveness in the market[141] - Employee benefits and bonuses are based on individual performance and the Group's profit condition[141]