Group 1: Financial Performance - The company reported a revenue of HKD 15.567 billion for the year ending December 31, 2024, a decrease of 1.67% year-on-year [1] - The loss attributable to shareholders expanded to HKD 1.823 billion, a significant increase of 597.25% compared to the previous year [1] - The earnings per share were reported at a loss of HKD 0.2048 [1] Group 2: Real Estate Development - The company completed 11 projects during the year, with development revenue recognized amounting to approximately HKD 9.13 billion [1] - The total contracted sales in real estate reached nearly RMB 16.97 billion (approximately HKD 18.61 billion), reflecting a decline of 36.2% year-on-year [1] - Several projects achieved notable sales success, including a project that sold out within three hours of launch, marking a significant milestone post-policy changes [1] Group 3: Urban Operations and Property Management - The company achieved a historic breakthrough in urban comprehensive operation, with a contracted area exceeding 10 million square meters and a net expansion of approximately 15.39 million square meters for the year [1] - Property management revenue was approximately HKD 3.29 billion, representing a year-on-year increase of 17.8% [1] - The company expanded its urban service offerings, including property management projects in various cities and significant contracts for park management services [1] Group 4: Commercial Operations - The company reported over HKD 6 billion in sales for its commercial operations, with foot traffic exceeding 46 million, both showing double-digit growth compared to 2023 [1] - The company successfully expanded its commercial footprint, including projects in metro stations and other strategic locations [1] Group 5: Agricultural and Manufacturing Initiatives - The company constructed a modern agricultural industrial park with nearly 3,500 acres, successfully trialing high-value crops and producing over 3 million pounds of agricultural products [3] - In advanced manufacturing, the company accelerated innovation and received recognition as a national-level specialized "little giant" enterprise, with several patents granted [3]

Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 15,567,468, a decrease of 1.68% from HKD 15,832,132 in 2023[3] - Gross profit for 2024 was HKD 4,439,104, down 13.14% from HKD 5,110,692 in 2023[3] - Operating profit decreased to HKD 2,727,966 in 2024, compared to HKD 3,499,944 in 2023, reflecting a decline of 22.05%[3] - The net loss for the year was HKD 1,537,357, compared to a profit of HKD 193,396 in 2023, indicating a significant downturn[4] - The total comprehensive loss for the year was HKD 3,016,855, compared to a loss of HKD 665,620 in 2023, indicating a worsening financial position[5] - The company reported a basic loss per share of HKD 20.48 for 2024, compared to a loss of HKD 2.94 in 2023[4] - The company reported a loss attributable to equity shareholders of HKD 1,822,579,000 for 2024, compared to a loss of HKD 261,397,000 in 2023[33] - The group achieved a total revenue of HKD 15.57 billion and a gross profit of HKD 4.44 billion for the year, with a core profit of approximately HKD 950 million, resulting in a loss attributable to equity shareholders of HKD 1.82 billion[69] Assets and Liabilities - Total assets as of December 31, 2024, were HKD 171,169,614, a slight decrease from HKD 174,413,358 in 2023[6] - The company's equity attributable to shareholders decreased to HKD 38,549,963 in 2024 from HKD 42,337,606 in 2023, a decline of 8.36%[7] - The total liabilities for 2024 were HKD 125,849,655, up from HKD 126,933,147 in 2023[24] - The company’s total liabilities decreased to HKD 37,365,049,000 in 2024 from HKD 39,039,102,000 in 2023, a reduction of about 4.3%[41] - The company recognized impairment provisions of HKD 879,000,000 for investments in Road King and HKD 292,000,000 for investments in Deep King, reflecting updated cash flow forecasts[28] Revenue Segments - In 2024, the total revenue from property development was HKD 9,133,298, a decrease of 4.7% from HKD 9,585,487 in 2023[25] - Property management service revenue increased to HKD 3,289,493 in 2024, up 17.7% from HKD 2,793,579 in 2023[25] - The property investment revenue for the year was approximately HKD 1.377 billion, a year-on-year decrease of 3.0%, with a gross profit margin of about 65%[102] - The company’s property management business revenue reached approximately HKD 3.29 billion, an increase of 17.8% year-on-year, with a gross profit margin of about 15.7%[104] Cash Flow and Financial Resources - The company has assessed its cash flow forecasts and believes it has sufficient operating funds to meet its financial obligations for at least the next 12 months[11] - The company has sufficient financial resources to continue its operations for the foreseeable future, supported by expected cash flows and financing capabilities[11] - The group’s cash balance, including restricted cash, was HKD 11.8 billion, a decrease from HKD 14.44 billion in the previous year[111] Cost Management - The cost of sales and services for 2024 was HKD 13,355,298, an increase of 1.3% from HKD 13,189,374 in 2023[26] - Employee benefits expenses decreased to HKD 731,994 in 2024 from HKD 890,466 in 2023, a reduction of 17.8%[26] - The group reduced sales and management expenses by 20.6% compared to 2023, saving approximately HKD 420 million[75] - The group recognized impairment provisions totaling approximately HKD 1.171 billion for its investments in certain joint ventures due to poor performance[114] Future Outlook and Strategy - The company anticipates a more proactive macro policy from the Chinese government in 2025, focusing on economic recovery and risk prevention[78] - The company aims to enhance its core competitiveness by integrating green building and smart technology, focusing on the development of fourth-generation ecological residences[80] - The company plans to strengthen its asset management and operational services, transitioning from front-end development to back-end operations and services[81] - The company will actively promote the revitalization of existing assets through upgrades, innovation, and asset securitization[82] - The company is committed to increasing investment in technological innovation and expanding its innovation business segment as a second growth curve[83] Corporate Governance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules throughout the 2024 fiscal year[122] - The audit committee consists of three independent non-executive directors who reviewed the accounting principles and discussed audit, risk management, internal controls, and financial reporting matters for the 2024 fiscal year[123] Shareholder Information - The board did not recommend the distribution of a final dividend for the year ending December 31, 2024[119] - The company declared a final dividend of HKD 0.07 per share for the year ended December 31, 2023, totaling approximately HKD 622,916,000, down from HKD 1,067,855,000 in 2022[34] - The company did not declare an interim dividend for 2024, compared to HKD 0.02 per share in 2023, which amounted to HKD 177,976,000[36]

Financial Performance - In the first half of 2024, the company reported a revenue of HKD 3.76 billion, with a loss attributable to equity shareholders of HKD 1.1 billion[12]. - The company achieved a revenue of HKD 3.76 billion in the first half of 2024, a decrease of approximately 38% year-on-year[32]. - Total revenue for the six months ended June 30, 2024, was HKD 3.76 billion, down from HKD 6.06 billion in the same period of 2023[81]. - The company reported a mid-term loss of HKD 1.14 billion for the six months ended June 30, 2024, compared to a loss of HKD 36.02 million in the same period of 2023[81]. - The company reported a net loss before tax of HKD 945,851 for the six months ended June 30, 2024, compared to a profit of HKD 521,200 for the same period in 2023[134]. - Total comprehensive income for the period was HKD (1,706,478,000), down from HKD 1,886,387,000 in the previous year[83]. - The total comprehensive income attributable to shareholders for the six months ended June 30, 2024, was HKD 185,513, down from HKD 1,359,661 in 2023, indicating a significant decline[128]. Sales and Contract Performance - The company's contract sales reached RMB 6.18 billion, despite a 42% year-on-year decline in total sales for the top 100 real estate companies in China[14]. - In the first half of 2024, the group recorded a contract sales amount of approximately RMB 6.18 billion, a year-on-year decrease of 58%[39]. - The total sales area for the first half of 2024 was approximately 239,000 square meters, with an average selling price of RMB 28,483 per square meter[39]. - Residential products contributed 84% to the contract sales amount, while non-residential products accounted for 16%[39]. - The company transferred sales area of approximately 54,119 square meters, a decline of about 50% compared to the same period last year[33]. - The revenue from transferred sales was approximately RMB 920 million, equivalent to about HKD 1.02 billion, a decrease of around 65% year-on-year[33]. Property Development and Management - The company expanded its urban operation business, achieving a net increase in contracted area of 9.29 million square meters, including joint ventures[15]. - The company plans to expand its business operations and aims to achieve a managed scale of over 10 million square meters[24]. - The company is actively exploring integrated facility management services to enhance service quality and diversify its value-added service system[24]. - The company is focusing on transforming into urban asset management and comprehensive operations, emphasizing business and product innovation[27]. - The company’s property management revenue was about HKD 1.47 billion during the period[15]. - The company’s property management business achieved revenue of approximately HKD 1.47 billion, an increase of 3% year-on-year, with a gross profit margin of about 17%[55]. Financial Position and Debt Management - As of June 30, 2024, the company's total bank and other borrowings amounted to HKD 38.43 billion, down from HKD 39.04 billion at the end of 2023[67]. - The company's cash balance as of June 30, 2024, was HKD 11.06 billion, with approximately 89% denominated in RMB[67]. - The company's net asset value after excluding the interests of the controlling shareholder was HKD 40.09 billion, with a debt-to-asset ratio of 68.9%[67]. - The net debt ratio increased to 68.3% as of June 30, 2024, compared to 58.1% as of December 31, 2023[68]. - The company reported a financial cost of HKD 722.25 million for the six months ended June 30, 2024, compared to HKD 579.38 million in the same period of 2023[81]. - The company’s total liabilities increased to HKD 127,953,583,000 from HKD 126,933,147,000[87]. Operational Efficiency and Risk Management - The company aims to enhance operational efficiency and risk management while ensuring cash flow safety through improved financial management practices[18]. - The company will strictly control new investments and capital expenditures to maintain stable operations amid ongoing industry pressures[30]. - The management believes that the group will have sufficient working capital to meet its financial obligations for at least the next 12 months[112]. - The group has significant financial risks, including market risk (currency, interest rate, and price risks), credit risk, and liquidity risk, primarily due to its operations in China[114]. Investment Properties and Revenue - The property investment income for the first half of 2024 was approximately HKD 680 million, maintaining a stable operation with an overall occupancy rate of 89%[17]. - The property investment revenue for the first half of 2024 was approximately HKD 680 million, a decrease of 3% compared to the same period last year, with a gross profit margin of about 71%[54]. - As of June 30, 2024, the total value of investment properties was HKD 33,299,309,000, reflecting a decrease from HKD 33,450,507,000[151]. - The fair value loss on investment properties was HKD 27,265 for the six months ended June 30, 2024, compared to a gain of HKD 276,216 in 2023[129]. Employee and Operational Metrics - The company employed 20,417 staff as of June 30, 2024, down from 22,229 staff a year earlier[75]. - Total compensation for employees (excluding directors and executives) was approximately RMB 1.255 billion for the six months ended June 30, 2024, compared to RMB 1.277 billion in the same period of 2023[75]. - The company’s employee benefits expenses were HKD 441,525 for the six months ended June 30, 2024, compared to HKD 482,959 in 2023, reflecting a decrease of about 9%[134]. Shareholder Returns and Dividends - The company declared a final dividend of HKD 0.07 per share for the year ended December 31, 2023, totaling approximately HKD 622,916,000, down from HKD 1,067,855,000 for the previous year's final dividend of HKD 0.12 per share[148]. - No interim dividend was declared for the six months ended June 30, 2024, compared to HKD 0.02 per share for the same period in 2023, which amounted to HKD 177,976,000[149]. Stock Options and Equity - As of the reporting period, the company has a total of 7,630,000 unexercised stock options, representing approximately 0.09% of the company's issued shares[200]. - The total issued and fully paid ordinary shares remained unchanged at 8,898,793,115 shares as of June 30, 2024, with a share capital of HKD 22,071,756,000[185].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 3,756,918 thousand, a decrease of 38.0% compared to HKD 6,057,890 thousand for the same period in 2023[2] - Gross profit for the period was HKD 1,085,837 thousand, down from HKD 2,083,267 thousand, reflecting a gross margin decline[2] - Operating loss for the six months was HKD 1,141,862 thousand, compared to a profit of HKD 521,200 thousand in the previous year[3] - The net loss attributable to equity shareholders was HKD 1,101,144 thousand, resulting in a loss per share of HKD 12.37, compared to HKD 1.31 in the prior period[3] - The company reported a loss before tax of HKD 945,851 thousand for the six months ended June 30, 2024, compared to a profit of HKD 521,200 thousand in the same period of 2023[16] - The company recognized a total tax expense of 196,011 thousand HKD for the six months ended June 30, 2024, compared to 557,217 thousand HKD for the same period in 2023, a decrease of about 64.8%[21] - The company declared a final dividend of 7 HKD cents per share for the year ended December 31, 2023, totaling approximately 622,916 thousand HKD, down from a final dividend of 12 HKD cents per share totaling 1,067,855 thousand HKD for the year ended December 31, 2022[25] - The company did not declare an interim dividend for the six months ended June 30, 2024, compared to an interim dividend of 2 HKD cents per share totaling 177,976 thousand HKD for the same period in 2023[26] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 173,077,657 thousand, a slight decrease from HKD 174,413,358 thousand at the end of 2023[5] - Non-current assets, including investment properties, totaled HKD 33,299,309 thousand, down from HKD 33,450,507 thousand[5] - Current liabilities increased to HKD 97,072,711 thousand from HKD 93,725,680 thousand, indicating a rise in short-term financial obligations[7] - The company reported a decrease in retained earnings to HKD 16,112,626 thousand from HKD 17,836,686 thousand[6] - As of June 30, 2024, the net accounts receivable was 1,595,072 thousand HKD, a decrease from 2,263,251 thousand HKD as of December 31, 2023, representing a decline of approximately 29.5%[29] - As of June 30, 2024, total receivables amounted to HKD 1,778,972,000, a decrease of 26.9% from HKD 2,433,697,000 as of December 31, 2023[30] - Total bank borrowings as of June 30, 2024, were HKD 38,433,732,000, a slight decrease of 1.6% from HKD 39,039,102,000 at the end of 2023[33] - The cash balance, including restricted cash, was HKD 11.06 billion, down from HKD 14.44 billion as of December 31, 2023[74] - The net debt ratio increased to 68.3% as of June 30, 2024, compared to 58.1% as of December 31, 2023[74] Revenue Streams - The revenue from property sales was HKD 1,017,626 thousand for the six months ended June 30, 2024, down from HKD 2,946,867 thousand in the prior year, indicating a decrease of about 65%[17] - Property management service revenue increased slightly to HKD 1,472,128 thousand in 2024 from HKD 1,423,074 thousand in 2023, reflecting a growth of approximately 3.4%[17] - The total cost of sales and services, distribution expenses, administrative expenses, and other expenses amounted to HKD 3,593,966 thousand for the six months ended June 30, 2024, compared to HKD 4,995,398 thousand in 2023[16] - The company’s property management revenue was approximately HKD 1.47 billion during the reporting period[47] - The group achieved property investment revenue of approximately HKD 680 million, a decrease of 3% compared to the same period last year, with a gross profit margin of about 71%[66] - The group’s commercial projects achieved sales revenue of RMB 2.1 billion, with over 10 million visitors to the shopping mall during the period[69] Operational Strategy - The company continues to focus on property development and management as part of its core business strategy[8] - The company continues to focus on property development and management as key revenue streams, with ongoing evaluations of market expansion opportunities[12] - The company plans to accelerate the construction of a new real estate development model to address the issues of high debt and high turnover[48] - The company is transitioning towards urban asset management and comprehensive operations, focusing on innovative business models to meet customer demands for quality housing and spaces[51] - The company aims to achieve a sales turnover efficiency by prioritizing key projects in the second half of the year, focusing on major residential and commercial properties to generate cash flow[49] - The company plans to expand its urban comprehensive operation brand, targeting a management scale of over 10 million square meters[49] - The company is enhancing its operational efficiency and profitability by optimizing its debt structure and reducing overseas liabilities[53] - The company is actively exploring opportunities in urban infrastructure assets, including toll roads and environmental management, to stabilize cash flow[51] Market Conditions - In the first half of 2024, the company achieved contract sales of RMB 6.18 billion, despite a 42% year-on-year decline in total sales among the top 100 real estate companies in the country[46] - The recognized property sales area was approximately 54,119 square meters, a decline of about 50% compared to the same period last year[55] - The total contracted sales amount for the first half of 2024 was approximately RMB 6.18 billion (about HKD 6.80 billion), a year-on-year decrease of 58%[57] - The average selling price per square meter for contracted sales was RMB 28,483[57] - The Guangdong-Hong Kong-Macao Greater Bay Area projects accounted for 69% of the total contracted sales amount[57] - Residential products contributed 84% to the total contracted sales amount, while non-residential products accounted for 16%[57] Employee and Governance - The total employee count decreased to 20,417 from 22,229 as of June 30, 2023, with total salaries amounting to approximately RMB 1.255 billion[79] - The company has maintained an MSCI-ESG rating of A, reflecting its strong performance in environmental, social, and governance aspects[47] - Major joint ventures reported losses, with the largest being a loss of approximately HKD 22.3 million from Tianan Digital City (Group) Limited[76] Future Outlook - The company expects that the new accounting standards adopted from January 1, 2024, will not have a significant impact on its current or future financial periods[10] - The company anticipates that the amendments to accounting standards effective from January 1, 2025, will not materially affect its operations or financial statements[11] - The company plans to recognize approximately HKD 27.8 billion in unrecognized contracted sales in 2024 and 2025[57] - The company is committed to developing high-tech agriculture and advanced manufacturing, aligning with national policy directions and aiming for significant social and economic benefits[52] - The company is leveraging the opening of the Shenzhen-Zhongshan Corridor to enhance its market position and expand its influence in the Guangdong-Hong Kong-Macao Greater Bay Area[51]

Land Reserves and Development Strategy - The company has a total land reserve of approximately 6.74 million square meters across various cities in China, with 4.44 million square meters located in the Greater Bay Area[7]. - The company is focusing its development efforts on the Guangdong-Hong Kong-Macao Greater Bay Area and planning expansion into the Yangtze River Delta and key provincial capital cities[4]. - The company is committed to optimizing its land reserve structure, concentrating assets and business in high-tier cities and the Greater Bay Area[4]. - The Group's land reserve structure is healthy, with 66% located in the Greater Bay Area, 14% in the Yangtze River Delta, and 19% in second-tier provincial capital cities[107]. - The Group's newly acquired land resources in 2023 include 3 plots in Shenzhen, Zhongshan, and Shenyang, with a total new site area of approximately 137,000 square meters and an estimated value of approximately RMB 15.42 billion[102][103]. Financial Performance - Revenue for 2023 decreased by 49.80% to HK$15,832.13 million from HK$31,540.23 million in 2022[13]. - Gross profit fell by 52.20% to HK$5,110.69 million, with a gross profit margin of 32.28%[13][15]. - Loss attributable to equity shareholders was HK$261.40 million, a decline of 112.53% compared to a profit of HK$2,085.42 million in 2022[13][19]. - Basic loss per share was HK(2.94) cents, down 112.55% from HK$23.43 cents in the previous year[13]. - The Group's turnover for the year was HK$15,832 million, a decrease of approximately 49.8% compared to last year[76]. - The gross profit was HK$5,111 million, with an overall gross profit margin of 32.3%[76]. Property Development and Sales - Property development revenue dropped significantly to HK$9,585.49 million from HK$25,654.00 million, a decrease of 62.64%[16]. - The area of property sales booked was approximately 415,333 square meters, with net sales amounting to approximately RMB8.63 billion[83]. - Contracted sales for 2023 reached approximately RMB26.59 billion (equivalent to approximately HK$29.52 billion), exceeding the full-year sales target[84]. - The Shenzhen Upper Coast project achieved a contracted amount of approximately RMB13.3 billion, being the sales champion of commercial residential projects[84]. - The Guangdong-Hong Kong-Macao Greater Bay Area projects contributed 88.2% of the contracted sales amount[85]. Investment and Innovation - The company is transforming into a technology-based industry group, focusing on urban complex development and investment in technology industries[3]. - The company applied for 15 intellectual property rights in 2023 and obtained 11 authorized patents, enhancing its technological innovation capabilities[38]. - The company engages in innovative businesses such as high-tech agriculture and high-end manufacturing[3]. - The Group's investment in the Shenzhen Women and Children Tower project was recognized as a typical case of revitalizing stock assets, debuting on June 1, 2023, after three years of renovation[119]. Operational Performance - The overall occupancy rate of the company's properties was 88%, indicating a stable and improving trend[36]. - The Group's urban integrated operations business achieved revenue of approximately HK$2.79 billion, reflecting a growth of 6.4% year-on-year, with a total contracted GFA of approximately 84.07 million square meters[112]. - The Group's hotel operations recorded operating income of approximately HK$465 million, representing a significant increase of 61.7% over the previous year[121]. - The agricultural sector generated an income of approximately HK$506 million in 2023, with a planting area of 4,000 acres[37]. Corporate Governance and Management - The company has a diverse board with members holding advanced degrees and significant experience in finance, economics, and public service[156]. - The management team includes professionals with backgrounds in both academia and industry, enhancing the company's strategic decision-making capabilities[162]. - The Group's management emphasizes the importance of individual performance, the Group's profit condition, and industry benefit levels in determining employee benefits and bonuses[142]. - Ms. SHI Xiaomei has been the Executive Director and CFO of Shum Yip Group Limited since August 27, 2021, bringing extensive experience in financial management and auditing[154]. Sustainability and ESG Practices - The company maintained an A rating in the MSCI-ESG Index, reflecting its strong performance in sustainable development[39]. - The Group is committed to sustainable development and has implemented a compliance management system, achieving certifications in international standards[183]. - The company is focused on sustainable development and has established a three-year action plan for compliance management[185]. - The Group actively promotes green building certification and urban renewal initiatives to enhance community living conditions[183]. Challenges and Risks - The Group's operations may be impacted by external macroeconomic fluctuations, geopolitical instability, and changes in policies, exchange rates, and interest rates[174]. - The Group emphasizes legal compliance and adheres to relevant PRC laws and regulations, particularly in environmental protection[171]. - The Group's operational risks include inadequate internal processes and external partner misconduct, which it aims to mitigate through improved management and internal controls[180].

Investment Rating - The investment rating for Shenzhen Holdings (00604.HK) is "Buy" [4][25]. Core Views - The company reported a significant decline in performance for 2023, primarily due to the impact of its real estate development business, with total revenue falling by 49.8% year-on-year to HKD 15.83 billion [1][3]. - Despite the overall decline, the company achieved a historical high in contract sales, with a total sales area of 714,000 square meters and a sales amount of approximately RMB 26.59 billion, marking a 38.4% increase [1][3]. - The company’s property investment business saw a revenue increase of 18.8% year-on-year, reaching HKD 1.42 billion, supported by a recovery in the commercial leasing market [1][3]. - The urban comprehensive operation business also showed growth, with revenue of HKD 2.79 billion, a 6.4% increase year-on-year [1][3]. Summary by Sections Financial Performance - In 2023, Shenzhen Holdings recorded a gross profit of HKD 5.11 billion, down approximately 52.2% year-on-year, with an overall gross margin of 32.3%, a decrease of 1.1 percentage points from the previous year [1][3]. - The company reported a loss attributable to shareholders of HKD 260 million for 2023 [1][3]. - The company’s total revenue for 2024 is projected to grow by over 20%, with a forecasted return to profitability, expecting net profit to exceed HKD 1 billion [3][4]. Business Segments - The property development segment generated revenue of HKD 9.59 billion in 2023, a decline of 62.6% year-on-year [1][3]. - The urban comprehensive operation business achieved a record revenue of HKD 2.79 billion, with a significant increase in managed property area to 80.47 million square meters, up 23% from 2022 [1][3]. - The property investment business is expected to continue expanding, with a total investment property area of approximately 1.73 million square meters and a fair value exceeding HKD 33 billion [1][3]. Market Position and Outlook - The company’s land reserve as of the end of 2023 was 6.742 million square meters, with a significant portion located in the Guangdong-Hong Kong-Macao Greater Bay Area [1][3]. - The company is transitioning to a new development model, with its property investment, management, and commercial operations platforms showing substantial growth potential [4][25].

Financial Performance - Contract sales reached approximately RMB 26.6 billion, an increase of 38% year-on-year, exceeding the annual target[2] - Revenue was approximately HKD 15.83 billion, with a gross profit of approximately HKD 5.11 billion, resulting in an overall gross margin of 32.3%[2] - The company reported a loss attributable to equity shareholders of HKD 261.4 million, compared to a profit of HKD 2.08 billion in the previous year[4] - The company’s operating profit was HKD 3.50 billion, down from HKD 7.73 billion year-on-year[3] - The company reported a net profit before tax of HKD 1,775,912 in 2023, compared to HKD 7,367,039 in 2022, showing a significant decline[19] - The company’s revenue from external customers in 2023 was HKD 15,832,132, down from HKD 31,540,226 in 2022, a decrease of 49.8%[20] - The group achieved a total revenue of HKD 15.83 billion in 2023, a decrease of approximately 49.8% year-on-year[76] - The gross profit for the year was HKD 5.11 billion, resulting in an overall gross margin of 32.3%[76] - The group recorded a loss attributable to equity shareholders of HKD 260 million, while excluding the impact of fair value changes of investment properties and joint ventures, the profit attributable to equity shareholders was HKD 1.92 billion[76] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.07 per share, totaling an annual dividend of HKD 0.09 per share[2] - The company declared a final dividend of HKD 0.12 per share for 2022, totaling HKD 1,067,855, while the interim dividend for 2023 was HKD 0.02 per share, totaling HKD 177,976, reflecting a decrease in dividend distribution[31] - The board proposed a final dividend of HKD 0.07 per share, down from HKD 0.12 per share in 2022, resulting in a total dividend of HKD 0.09 per share for the year[107] Assets and Liabilities - Total assets amounted to HKD 174.41 billion, an increase from HKD 163.47 billion in the previous year[10] - Total liabilities increased to HKD 126.93 billion from HKD 113.91 billion year-on-year[11] - The company’s cash and cash equivalents stood at HKD 11.05 billion, down from HKD 11.67 billion in the previous year[8] - The company’s investment properties decreased in value to HKD 33.45 billion from HKD 35.13 billion[8] - The total assets of the company as of December 31, 2023, amounted to HKD 174,413,358, up from HKD 163,467,589 in 2022, indicating a growth of 6.0%[19] - The total liabilities increased to HKD 126,933,147 in 2023 from HKD 113,910,616 in 2022, representing a rise of 11.5%[19] Financial Costs and Income - The net financial cost increased to HKD 1.04 billion from HKD 755.1 million in the previous year[3] - Interest income from bank deposits decreased to HKD 203,581 in 2023 from HKD 216,591 in 2022, showing a decline of approximately 6.0%[23] - The total financial costs for 2023 were HKD 1,041,334, an increase from HKD 755,098 in 2022, representing a rise of approximately 37.8%[24] - The average effective interest rate on borrowings increased to 4.42% in 2023 from 3.32% in 2022[42] Segment Performance - The group manages its business by five reporting segments: property development, property investment, property management, manufacturing, and others[17] - The performance of each segment is monitored based on adjusted profit before tax, excluding other income and expenses[17] - In 2023, the total revenue from property development was HKD 9,585,487, a decrease of 62.5% from HKD 25,654,000 in 2022[18] - The total revenue from property management services in 2023 was HKD 2,793,579, compared to HKD 2,626,756 in 2022, reflecting an increase of 6.4%[20] Market and Sales Performance - The company achieved real estate contract sales of approximately RMB 26.6 billion, a year-on-year increase of 38%, exceeding the annual target[57] - The company achieved property investment income of approximately HKD 1.42 billion, a year-on-year increase of about 19%, with an overall occupancy rate of 88%[61] - The company’s hotel operating income reached approximately HKD 470 million, a significant increase of 62%[61] - The area of property sales recognized during the year was approximately 415,000 square meters, a decline of about 43.1% compared to the previous year[76] - The recognized sales revenue from property development was approximately RMB 8.63 billion, equivalent to about HKD 9.59 billion, a decrease of approximately 62.6% year-on-year[76] Investments and Acquisitions - The company expanded its land reserves by 454,000 square meters, increasing the value of land reserves by approximately RMB 15.4 billion[59] - The company expanded land resources by acquiring four new projects, covering a total area of approximately 136,550 square meters and an estimated new value of approximately RMB 15.42 billion[85][86] - The company has provided a capital commitment of HKD 1,562,500,000 to a related party for land development, down from HKD 1,757,500,000 in 2022[49] Compliance and Governance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance[13] - The company is committed to transparency and compliance with local accounting standards in its financial reporting[13] - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange's listing rules throughout the 2023 fiscal year[109] Future Outlook - The company plans to focus on stable growth and high-quality development in 2024, adapting to changes in the real estate market and accelerating the construction of a new development model[69] - The group plans to accelerate the turnover of available resources, with a total saleable value exceeding RMB 30 billion for 2024, with residential properties accounting for 72%[70] - The group aims to enhance its operational brand and expand its business scale, targeting a management scale of over 100 million square meters in the near future[73] - The group is focusing on capital-driven external growth through strategic acquisitions to strengthen its industrial chain layout[74]

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].