Real Estate Market Performance - In 2021, the national commodity housing sales amounted to RMB 18.2 trillion, a year-on-year increase of 4.8%, with a sales area of 1.79 billion square meters, up 1.9% year-on-year[15]. - The real estate development investment in 2021 reached RMB 14.8 trillion, a year-on-year growth of 4.4%, but the growth rate decreased by 2.6 percentage points compared to the previous year[15]. - In the first quarter of 2022, the national commodity housing sales area was 310 million square meters, with sales amounting to RMB 2.97 trillion, representing year-on-year declines of 13.8% and 22.7%, respectively[15]. - The real estate sector faced significant regulatory pressures in 2021, leading to a rapid cooling of the market in the second half of the year[14]. - The company has 13 property development projects across 9 cities in mainland China, with a total area of approximately 3.17 million square meters for sale, under development, and not yet started[27]. - The company plans to further expand its regional property development business and actively manage project deliveries in response to changing internal and external environments[30]. - The company achieved contracted sales of approximately RMB 2.51 billion, with an average selling price of RMB 6,748 per square meter during the reporting period[27]. - The property development segment recorded revenue of approximately RMB 4,332,800,000, up from RMB 3,811,500,000 for the year ended December 31, 2020[24]. - The property investment segment's revenue increased by approximately RMB 57,900,000 to about RMB 95,800,000, despite a segment loss of RMB 335,000,000 due to a decline in fair value of investment properties[32]. Financial Performance - The company's revenue increased by 29.9% to approximately RMB 11,799,600,000 during the reporting period, compared to RMB 9,085,400,000 for the year ended December 31, 2020[20]. - The company recorded a gross loss of approximately RMB 2,653,800,000, primarily due to impairment losses of RMB 3,799,700,000 in property development[20]. - Loss attributable to the company was approximately RMB 433,700,000, an improvement from a loss of RMB 1,845,000,000 for the year ended December 31, 2020[20]. - Other income and gains increased by approximately RMB 5,192,500,000 to about RMB 5,775,600,000, mainly from the disposal of subsidiaries and properties[21]. - The group recorded a net loss attributable to owners of the company of approximately RMB 462,100,000, an improvement from a loss of RMB 1,844,100,000 in the previous year[45]. - The group's cash and cash equivalents totaled approximately RMB 683,900,000 as of March 31, 2022, down from RMB 1,863,200,000 as of December 31, 2020[46]. - The group's debt-to-equity ratio improved to 1.89 as of March 31, 2022, compared to a negative ratio of 17.2 as of December 31, 2020[46]. - The company has reduced the net loss attributable to owners by approximately 75.0% from December 31, 2020, to March 31, 2022[73]. Business Strategy and Diversification - The company has diversified its business strategy since 2013, expanding from information product distribution to real estate development and commercial property operations[8]. - The company aims to create higher returns for shareholders through its diversified business model and strategic investments in real estate and ICT sectors[8]. - The company plans to focus on distributing information products with better trading terms and explore high-profit margin value-added services to mitigate market risks[33]. - The company is actively responding to the challenges posed by the pandemic by accelerating digital transformation and enhancing its ICT product offerings[18]. - The company has developed a business strategy plan focusing on improving operational cash flow and fulfilling financial obligations over the next twelve months[78]. Corporate Governance - The company has adopted all provisions of the corporate governance code as per the listing rules, except for specific clauses D.1.2, D.2.1, D.2.6, and F.2.2[82]. - The board of directors consists of four executive directors and five independent non-executive directors as of March 31, 2022[84]. - The board is responsible for the overall strategy, major acquisitions, significant capital investments, and other major operational and financial matters[86]. - The company has established a set of standard codes of conduct for securities trading by directors, which are stricter than the standard codes outlined in the listing rules[83]. - The company is committed to maintaining a high level of corporate governance and recognizes the importance of accountability and communication with shareholders[82]. - The board has established three committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee[88]. - The company has arranged for appropriate directors' liability insurance to provide indemnity coverage for directors against liabilities arising from company activities[86]. - The company has implemented corrective measures to ensure compliance with corporate governance codes[92]. Employee Management and Development - As of March 31, 2022, the company had 565 employees, a decrease from 1,041 employees as of December 31, 2020[42]. - The company is committed to maintaining competitive compensation levels for employees and providing training and incentive programs[41]. - The company emphasizes the importance of talent for its success and has implemented various human resource management policies to ensure fair employment practices[184]. - The company strictly adheres to labor laws and regulations, ensuring timely payment of salaries and provision of public holidays and paid annual leave[186]. - The company focuses on employee development through a hiring philosophy that promotes selection, education, and retention[200]. - The overall employee turnover rate during the reporting period was 28%, with 345 employees leaving out of a total of 891[194]. - The company has maintained a zero-accident record for three consecutive years, with no workdays lost due to occupational injuries during the reporting period[199]. Environmental, Social, and Governance (ESG) Initiatives - The company’s environmental, social, and governance (ESG) report outlines its initiatives and performance in sustainability, emphasizing its commitment to responsible management of ESG matters[130]. - The company emphasizes the integration of environmental, social, and governance (ESG) factors into its decision-making processes, aiming to align these commitments with strategic growth[136]. - The company aims to reduce operational impacts on the environment by setting specific ESG-related goals and indicators[139]. - The company aims to reduce electricity consumption by 5%, water usage by 5%, non-hazardous waste by 8%, and greenhouse gas emissions by 10% by 2030, using the reporting period as the baseline[150]. - The company has implemented measures to reduce emissions from its vehicle fleet, including monthly inspections and annual checks to ensure compliance with emission standards[154]. - The company has developed emergency plans to mitigate potential risks from extreme weather events, including flexible work arrangements and preventive measures[181]. - The company is committed to achieving carbon neutrality and is monitoring regulatory changes and climate trends to manage associated risks[183].

[Company Overview and Data](index=4&type=section&id=Company%20Overview%20and%20Data) [Company Business and Shareholder Background](index=4&type=section&id=Company%20Business%20and%20Shareholder%20Background) Peking University Resources (Holdings) Company Limited transformed from IT distribution to property development and investment, leveraging its Peking University and Founder Group background as their Hong Kong real estate platform, now operating in 18 cities with a future focus on property investment - The company diversified its business in **2013**, expanding from information product distribution to real estate development and commercial property operations, becoming Founder Group's offshore listed platform for real estate business[9](index=9&type=chunk) - As of the annual report date, the Group's business covers **18 cities** in China, with **4 new projects** commenced, **29 projects** under construction, and **32 projects** for sale[9](index=9&type=chunk) - The company's major shareholders are Peking University (founded in **1898**) and Founder Group, established by Peking University in **1986**[10](index=10&type=chunk) [Property Development Projects](index=8&type=section&id=Property%20Development%20Projects) [Project Overview](index=8&type=section&id=Project%20Overview) The Group's property development projects are widely distributed across **18 cities** in China, covering key economic regions with diverse property types including residential, commercial, office, and urban complexes, reflecting the company's nationwide strategic layout and comprehensive development capabilities Overview of Selected Property Development Projects | Project Name | Location | Property Type | Planned GFA (sqm) | Equity Interest | | :--- | :--- | :--- | :--- | :--- | | Peking University Resources · Yuefu | Tianjin | Residential/Commercial | 271,382 | 70% | | Peking University Resources Plaza | Qingdao, Shandong | Commercial/Office | 140,690 | 70% | | Peking University Resources · Jiujin Yihe | Kunshan, Jiangsu | Residential/Commercial | 725,848 | 51% | | Peking University Resources · Yannan International | Chengdu, Sichuan | Residential/Commercial | 540,273 | 70% | | Peking University Resources · Jiangshan Mingmen | Chongqing | Residential/Commercial | 671,572 | 100% | | Peking University Resources Boya Binjiang | Foshan, Guangdong | Residential/Commercial | 914,183 | 51% | | Peking University Resources · Dream City | Guiyang, Guizhou | Commercial/Residential | 1,039,781 | 70% | [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [Overall Performance](index=15&type=section&id=Overall%20Performance) In **2019**, the Group swung from a profit of approximately **RMB 800 million** in **2018** to an annual loss of approximately **RMB 1.69 billion**, primarily due to a **RMB 3.27 billion** impairment provision on properties, despite revenue remaining stable at **RMB 24.1 billion** Key Financial Data for FY2019 | Metric | 2019 (RMB) | 2018 (RMB) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 24.1 billion yuan | 24.9 billion yuan | -3.2% | | Gross Profit | 2.1 billion yuan | 3.22 billion yuan | -34.7% | | Gross Margin | 8.7% | 12.9% | -4.2pp | | Annual Loss/Profit | (1.69 billion yuan) | 0.80 billion yuan | Swung to Loss | | Basic Loss/Earnings Per Share | (37.75) cents | 11.16 cents | Swung to Loss | - Key contributing factors to the annual loss include: **significant increase in net impairment** of properties under development and for sale to **RMB 3.27 billion**; **gross margin decline** from **12.9% to 8.7%**; **14.1% increase in selling, distribution, and administrative expenses**; **surge in finance costs to RMB 820 million** due to higher interest rates and reduced capitalized interest; and a **53.8% increase in income tax expense to RMB 1.96 billion**[45](index=45&type=chunk)[47](index=47&type=chunk) [Business Review](index=16&type=section&id=Business%20Review) In **2019**, the Group's two core businesses diverged: property revenue and segment profit declined due to lower average selling prices and impairments, despite **RMB 14.52 billion** in contracted sales and new land acquisitions, while information product distribution revenue grew **14.6% to RMB 8.88 billion** but swung to a **RMB 15.7 million** loss due to increased costs and impairments Segment Results | Business Segment | 2019 Revenue (RMB) | 2018 Revenue (RMB) | 2019 Segment Result (RMB) | 2018 Segment Result (RMB) | | :--- | :--- | :--- | :--- | :--- | | Property Development | 15.22 billion yuan | 17.13 billion yuan | 1.18 billion yuan (Profit) | 2.21 billion yuan (Profit) | | Property Investment | 0.035 billion yuan | 0.030 billion yuan | 0.031 billion yuan (Profit) | 0.051 billion yuan (Profit) | | Information Product Distribution | 8.88 billion yuan | 7.75 billion yuan | (16 million yuan) (Loss) | 56 million yuan (Profit) | - The real estate business achieved contracted sales of approximately **RMB 14.52 billion** for the year, with a contracted area of approximately **1.3971 million sqm** and an average selling price of approximately **RMB 10,393/sqm**[52](index=52&type=chunk) - During the year, the Group actively expanded its land bank, acquiring several plots with a total land area of approximately **447,000 sqm**, located in Kaifeng, Tianjin, Yuxi, and Chengdu[49](index=49&type=chunk) - The distribution business primarily deals in information products from internationally renowned brands such as HP, Huawei, Microsoft, Lenovo, and Dell[54](index=54&type=chunk) [Outlook and Financial Review](index=18&type=section&id=Outlook%20and%20Financial%20Review) Looking to **2020**, the Group anticipates a global economic slowdown due to COVID-19 but remains confident in China's long-term economic trend, focusing on core cities and a light-asset model; financially, liquidity tightened, the gearing ratio sharply rose from **5.1 to 11.7**, total assets decreased, and equity significantly shrank - Future strategy will focus on **tier-one, tier-two, and selected strong tier-three cities**, implementing a **light-asset operating model**, and advancing the strategy of becoming a 'science and technology industry service provider'[56](index=56&type=chunk) Key Financial Position Indicators as of End 2019 | Metric | Dec 31, 2019 (RMB) | Dec 31, 2018 (RMB) | | :--- | :--- | :--- | | Total Assets | 38.54 billion yuan | 42.66 billion yuan | | Total Liabilities | 37.44 billion yuan | 39.66 billion yuan | | Total Equity | 1.10 billion yuan | 3.00 billion yuan | | Interest-bearing Bank and Other Borrowings | 12.91 billion yuan | 15.23 billion yuan | | Cash and Cash Equivalents and Restricted Cash | 2.51 billion yuan | 5.48 billion yuan | | Gearing Ratio | 11.7 | 5.1 | | Current Ratio | 1.01 | 1.21 | - As of end **2019**, approximately **RMB 10.30 billion** of properties under development, **RMB 6.08 billion** of properties held for sale, and other assets were pledged to banks as collateral for credit facilities[67](index=67&type=chunk) [Events After Reporting Period](index=21&type=section&id=Events%20After%20Reporting%20Period) Post-reporting period, the Group faces two significant events: the impact of the COVID-19 pandemic on operations, still under assessment, and the judicial reorganization application against controlling shareholder Founder Group in February **2020**, which may affect the company's equity structure and bring uncertainty - The COVID-19 pandemic, which erupted in January **2020**, has had certain impacts on the Group's business operations, with the extent and duration remaining uncertain[70](index=70&type=chunk) - Controlling shareholder Founder Group was petitioned for judicial reorganization by Bank of Beijing in February **2020**, which was accepted by the court; this event may affect the company's equity structure, though the company remains independent from Founder Group in terms of business, personnel, and assets[71](index=71&type=chunk) [Corporate Governance Report](index=22&type=section&id=Corporate%20Governance%20Report) [Governance Structure and Practices](index=22&type=section&id=Governance%20Structure%20and%20Practices) The company maintains high corporate governance standards, complying with all HKEX Corporate Governance Code provisions, with a board comprising six executive and three independent non-executive directors, separate Chairman and CEO roles, and audit, remuneration, and nomination committees chaired by independent non-executive directors, ensuring independent decision-making and adherence to risk management, internal control, and disclosure regulations - The Board believes the company has fully complied with the code provisions of the Corporate Governance Code for the entire year ended December 31, **2019**[75](index=75&type=chunk) - The roles of the Chairman of the Board (Mr. Zhang Xuanlong) and the President (Mr. Zeng Gang) are distinct and not held by the same individual, ensuring a balance of power[85](index=85&type=chunk) - The Audit Committee, Remuneration Committee, and Nomination Committee have been established with clear written terms of reference; the Audit Committee is composed entirely of independent non-executive directors[88](index=88&type=chunk)[90](index=90&type=chunk)[100](index=100&type=chunk) - The Board has conducted an annual review of the Group's risk management and internal control systems and considers them effective and adequate in financial, operational, and compliance controls[103](index=103&type=chunk) [Environmental, Social and Governance Report](index=31&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) [ESG Practices and Performance](index=31&type=section&id=ESG%20Practices%20and%20Performance) The Group actively fulfills its ESG responsibilities: environmentally, it reduced **2019** greenhouse gas emissions by approximately **33%** through green initiatives; socially, it ensures labor standards, employee rights, diverse training, and occupational health; operationally, it maintains strict supply chain and quality control with zero tolerance for corruption, while also engaging in community investment like poverty alleviation 2019 Environmental Performance (Beijing Headquarters) | Greenhouse Gas Emissions (kg CO2e) | 2019 | 2018 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Scope 1: Direct Emissions | 34,327 | 41,295 | -16.9% | | Scope 2: Indirect Emissions | 300,337 | 456,044 | -34.1% | | Total Emissions | 336,809 | 499,648 | -32.6% | | **Resource Consumption** | **2019** | **2018** | **Y-o-Y Change** | | Total Energy Consumption (thousand kWh) | 466 | 661 | -29.5% | | Total Water Consumption (tons) | 3,549 | 3,819 | -7.1% | - The company strictly adheres to labor laws, prohibits child and forced labor, and provides employees with comprehensive compensation, benefits, leave systems, and promotion opportunities[142](index=142&type=chunk) - During the reporting period, the Group conducted **28 internal training courses** for employees, with **1,208 participants**, covering management, business knowledge, and various skills[148](index=148&type=chunk) - The company maintains a zero-tolerance stance on corruption, establishing integrity regulations and reporting mechanisms, with no corruption lawsuits occurring during the reporting period[165](index=165&type=chunk) [Directors' Report](index=47&type=section&id=Directors'%20Report) [Principal Shareholders and Connected Transactions](index=50&type=section&id=Principal%20Shareholders%20and%20Connected%20Transactions) As of the reporting period end, Peking University Asset Management Co., Ltd. indirectly held approximately **61.57%** of the company's shares as the ultimate controlling shareholder; during the year, the Group engaged in multiple ongoing connected transactions with Founder Group and its subsidiaries, primarily involving IT product sales/procurement, property management, and consulting services, all reviewed and confirmed by independent non-executive directors as being on normal commercial terms Major Shareholder Holdings (as of December 31, 2019) | Shareholder Name | Capacity and Nature of Interest | Number of Shares Held | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Peking University Asset Management Co., Ltd. | Through controlled corporations | 3,950,134,407 | 61.57% | | Founder Group Co., Ltd. | Through controlled corporations | 3,950,134,407 | 61.57% | | Mr. Zheng Fushuang | Through controlled corporations | 785,003,000 | 12.23% | | Rongtong Fund Management Co., Ltd. | Through controlled corporations | 575,076,000 | 8.96% | Major Continuing Connected Transaction Amounts in 2019 | Transaction Type | Counterparty | Amount (RMB) | | :--- | :--- | :--- | | Sale of Information Products | Founder Group | 0.846 million yuan | | Purchase of Software Products | Founder Group | 29.563 million yuan | | Payment for Property Management Services | Peking University Resources Group | 31.774 million yuan | | Receipt of Consulting Service Fees | Peking University Resources Group | 83.640 million yuan | - The Board does not recommend the payment of any dividend for the current year[189](index=189&type=chunk) [Independent Auditor's Report](index=55&type=section&id=Independent%20Auditor's%20Report) [Auditor's Opinion and Key Audit Matters](index=55&type=section&id=Auditor's%20Opinion%20and%20Key%20Audit%20Matters) Ernst & Young issued a standard unqualified opinion on the company's **2019** consolidated financial statements, affirming their fair presentation, but highlighted a **material uncertainty related to going concern** due to the Group's significant annual loss, controlling shareholder's debt default and reorganization, and the Group's own loan defaults, while also identifying three key audit matters: impairment provisions for properties, capitalization of borrowing costs, and impairment provisions for trade receivables - **Material Uncertainty Related to Going Concern**: The auditor draws attention to the Group's annual loss of **RMB 1.69 billion**, and controlling shareholder Founder Group's bond defaults and reorganization, which triggered cross-default clauses on some of the Group's borrowings, requiring immediate repayment; these conditions indicate a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern, though the auditor's opinion was not modified in respect of this matter[231](index=231&type=chunk) - **Key Audit Matters**: 1. **Impairment provisions for properties**: The impairment assessment for properties under development and held for sale involves significant management judgment and estimates regarding selling prices and costs 2. **Capitalization of borrowing costs**: The process of evaluating qualifying assets, use of borrowed funds, and capitalization period is complex 3. **Impairment provisions for trade receivables**: Measuring expected credit losses requires significant judgment and estimates[233](index=233&type=chunk)[235](index=235&type=chunk)[238](index=238&type=chunk) [Financial Statements and Notes](index=60&type=section&id=Financial%20Statements%20and%20Notes) [Key Financial Statements](index=60&type=section&id=Key%20Financial%20Statements) The **2019** financial statements reveal severe challenges: the consolidated income statement shows a significant loss due to surging costs despite stable revenue; the consolidated statement of financial position indicates substantial asset and equity shrinkage, increased liquidity pressure, and a sharp drop in net current assets from **RMB 7.09 billion to RMB 330 million**; and the consolidated cash flow statement reflects a significant decrease in operating cash flow and continued net outflow from financing activities, leading to a notable decline in year-end cash and cash equivalents Consolidated Statement of Profit or Loss Summary (RMB thousand) | Item | 2019 | 2018 | | :--- | :--- | :--- | | Revenue | 24,131,590 | 24,911,870 | | Gross Profit | 2,101,639 | 3,217,351 | | Profit Before Tax | 267,269 | 2,071,686 | | Income Tax Expense | (1,960,595) | (1,275,040) | | **(Loss)/Profit for the Year** | **(1,693,326)** | **796,646** | | Attributable to Owners of the Parent | (2,421,877) | 716,310 | Consolidated Statement of Financial Position Summary (RMB thousand) | Item | Dec 31, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | Total Non-current Assets | 1,154,995 | 1,148,046 | | Total Current Assets | 37,386,418 | 41,513,192 | | **Total Assets** | **38,541,413** | **42,661,238** | | Total Current Liabilities | 37,054,691 | 34,427,584 | | Total Non-current Liabilities | 383,082 | 5,228,964 | | **Total Liabilities** | **37,437,773** | **39,656,548** | | **Net Assets** | **1,103,640** | **3,004,690** | | Equity Attributable to Owners of the Parent | 140,795 | 2,668,506 | Consolidated Statement of Cash Flows Summary (RMB thousand) | Item | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 100,672 | 5,141,158 | | Net Cash Flows Used in Investing Activities | (21,577) | (63,138) | | Net Cash Used in Financing Activities | (2,424,885) | (5,012,365) | | **Net (Decrease)/Increase in Cash and Cash Equivalents** | **(2,345,790)** | **65,655** | [Summary of Notes to Financial Statements](index=67&type=section&id=Summary%20of%20Notes%20to%20Financial%20Statements) The notes to the financial statements detail accounting policies, significant judgments, and estimates, with key notes highlighting material uncertainties regarding going concern (Note **2.1**) due to controlling shareholder's reorganization and the Group's loan defaults; segment information (Note **4**) showing property development as the main revenue and asset source but with significantly reduced profit contribution; interest-bearing borrowings (Note **29**) totaling **RMB 12.9 billion**, with substantial non-current borrowings reclassified as current liabilities due to covenant breaches, exacerbating liquidity risk; and related party transactions (Note **40**) disclosing frequent business dealings with the controlling shareholder and its associates - **Going Concern Basis (Note 2.1)**: The note details factors leading to material uncertainty regarding going concern, including an annual net loss of **RMB 1.69 billion**, controlling shareholder Founder Group's bond defaults and reorganization application, and the Group's own loan defaults of **RMB 1.21 billion**, resulting in **RMB 11.15 billion** of borrowings becoming repayable on demand due to covenant breaches[290](index=290&type=chunk) - **Interest-bearing Bank and Other Borrowings (Note 29)**: As of year-end, total borrowings were **RMB 12.91 billion**, of which **RMB 12.65 billion** were current liabilities; due to breaches of loan agreements, **RMB 2.31 billion** of borrowings originally repayable after **2020** were reclassified as current liabilities[566](index=566&type=chunk)[575](index=575&type=chunk) - **Contingent Liabilities (Note 37)**: The Group's mortgage guarantees provided to property buyers amounted to approximately **RMB 6.25 billion**, an increase from **RMB 5.37 billion** in **2018**[611](index=611&type=chunk) - **Events After Reporting Period (Note 45)**: Re-emphasizes the impact of the COVID-19 pandemic and the reorganization of controlling shareholder Founder Group[669](index=669&type=chunk) [Financial Summary](index=161&type=section&id=Financial%20Summary) [Five-Year Financial and Key Indicator Summary](index=161&type=section&id=Five-Year%20Financial%20and%20Key%20Indicator%20Summary) The five-year financial summary shows the company's revenue peaked in **2017-2019** but with highly volatile profitability, recording its largest loss in **2019**; asset size declined annually after peaking in **2017**, while total liabilities remained high, leading to a significant shrinkage in shareholder equity in **2019**, with key financial indicators clearly demonstrating the deterioration of operating conditions, including declining gross margin, swing to loss, weakened liquidity, and sharply rising leverage Five-Year Performance Summary (RMB thousand) | Item | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 24,131,590 | 24,911,870 | 16,246,608 | 13,216,611 | 6,356,887 | | Profit/(Loss) Attributable to Owners of the Parent | (2,421,877) | 716,310 | 333,451 | (235,992) | (193,612) | Five-Year Assets and Liabilities Summary (RMB thousand) | Item | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 38,541,413 | 42,661,238 | 47,106,223 | 43,939,896 | 37,161,418 | | Total Liabilities | (37,437,773) | (39,656,548) | (44,880,712) | (42,253,813) | (35,072,666) | | Equity Attributable to Owners of the Parent | 140,795 | 2,668,506 | 1,976,248 | 1,607,916 | 1,888,459 |

Financial Performance - The company recorded a profit of RMB 797 million, representing a 58% increase year-on-year[15]. - Total revenue reached RMB 24.912 billion, a 53% increase compared to 2017[15]. - The company's profit for the year ended December 31, 2018, was approximately RMB 796.6 million, an increase from RMB 505.6 million in the previous year[60]. - Total revenue for the fiscal year increased by 53.3% to approximately RMB 24.91 billion, compared to RMB 16.25 billion in the previous year, primarily due to the expansion of the property development business[60]. - Gross profit rose by 68.7% to approximately RMB 3.22 billion, attributed to increased revenue and improved gross margin in the property development business[60]. - The group's revenue increased by 53.3% to RMB 24,911,900,000, compared to RMB 16,246,600,000 in the previous fiscal year[61]. - Gross profit margin improved from 11.7% to 12.9% due to higher average selling prices and completion of high-margin property sales[61]. - Other income and profit decreased by 43.2% to RMB 193,900,000, down from RMB 341,600,000 in the previous year[61]. - Total sales and distribution expenses, along with administrative expenses, rose by 20.5% to RMB 968,200,000, compared to RMB 803,300,000 in the previous year[61]. - Financial expenses increased by 79.8% to approximately RMB 160,700,000, up from RMB 89,400,000 in the previous year[61]. Real Estate Market Overview - The real estate market in China saw a total sales area of approximately 1.72 billion square meters, with a year-on-year growth of 1.3%[14]. - The sales value of commercial housing was approximately RMB 15 trillion, reflecting a year-on-year increase of 12.2%[14]. - The total sales area of commercial housing in China was approximately 1.72 billion square meters, with a year-on-year growth of 1.3%[59]. - The sales value of commercial housing reached approximately RMB 15 trillion, reflecting a year-on-year increase of 12.2%[59]. - The overall economic environment in China showed a GDP growth of 6.6% in 2018, indicating a stable economic backdrop for the real estate sector[59]. - The real estate sector is expected to maintain stability, with a gradual improvement in the corporate financing environment[20]. Business Strategy and Development - The company implemented a dual-driven strategy focusing on "quality + resources" and "innovation + capital" to accelerate development[14]. - The company is pursuing a light asset model to diversify revenue channels and reduce asset-liability ratios[17]. - The company plans to increase the proportion of light asset projects in 2019, aligning with national policy directions and real estate industry trends[20]. - The company is focusing on a strategy of "city-specific policies and classified regulation" in response to the real estate market's stabilization[59]. - The board anticipates stable growth in the real estate market, with continued government support and a focus on optimizing supply structures[68]. - The company aims to optimize its reporting scope to enhance operational transparency in the future[116]. Corporate Governance - The board consists of six executive directors and three independent non-executive directors, with all directors confirming compliance with the established trading standards as of December 31, 2018[82]. - The board held four regular meetings during the year, with attendance records showing full participation from most executive directors[85]. - The remuneration committee convened once in 2018 to review and discuss the company's remuneration policies for directors, ensuring competitive compensation based on market standards[91]. - The company has established a clear separation of roles between the chairman and the president, with specific responsibilities outlined for each[89]. - Independent non-executive directors have confirmed their independence annually, with two out of three being practicing accountants in Hong Kong[90]. - The board is responsible for overall strategy, major acquisitions, and significant capital investments, ensuring alignment with corporate governance standards[84]. - The company has implemented a director liability insurance policy to provide indemnity coverage for directors against liabilities arising from company activities[86]. - The board's governance practices are regularly reviewed to ensure compliance with legal and regulatory requirements[88]. - The company encourages directors to engage in continuous professional development to enhance their knowledge and skills in corporate governance[87]. Environmental Responsibility - The total greenhouse gas emissions for the year amounted to 499,648 kg CO2 equivalent, with a density of 1,465 kg CO2 equivalent per employee[123]. - The indirect carbon emissions from electricity consumption decreased by 9% from 501,473 kg in 2017 to 456,044 kg in the current year[123]. - The company achieved a 20% reduction in carbon emissions from property development activities compared to the previous year[123]. - The total energy consumption for the year was 661,000 kWh, with an energy density of 1.94 kWh per employee[123]. - The total water consumption was 3,819 tons, with a water density of 11 tons per employee[123]. - The company has implemented various green office measures to reduce carbon emissions, including water conservation and recycling initiatives[118]. - The company emphasizes the importance of environmental responsibility in its operations and has established guidelines to minimize carbon emissions during production and office activities[118]. - The company integrates sustainable development elements into building designs to reduce carbon emissions during the operational phase[120]. - The company has set a high greening rate of 60% for its new project, Park 1898, which includes a large ecological wetland park[122]. Employee Welfare and Development - The company emphasizes employee welfare, providing comprehensive benefits including social insurance and commercial health insurance for all full-time employees[127]. - A total of 38 internal training courses were conducted this year to enhance employee skills and capabilities[128]. - The average training hours for male employees in the property development sector was 97 hours, with 39% of them receiving training, while female employees averaged 68 hours with 29% trained[131]. - The company has maintained a zero fatality rate and zero lost workdays due to occupational injuries in 2018[130]. - The company has established a reward and punishment management system to address any suspicious behavior and ensure fair investigations[148]. Community Engagement - The company invested in community development, focusing on cultural and educational contributions, utilizing resources such as money and manpower[149]. - The "Peking University Resources Archaeological Study Camp" attracted nearly 10,000 students across nine major cities, with online and offline participation reaching approximately 500,000[156]. Related Party Transactions - The company sold information products to the North China University Group amounting to approximately RMB 26,811,000 in the year, a decrease from RMB 148,313,000 in 2017[192]. - The company purchased software products from the North China University Group totaling approximately RMB 16,150,000, down from RMB 55,847,000 in 2017[192]. - The company paid approximately RMB 41,127,000 for property management services from the North China University Group, an increase from RMB 37,471,000 in 2017[194]. - The company received consulting service fees of approximately RMB 91,218,000 from the North China University Group, significantly up from RMB 37,651,000 in 2017[194]. - The company has engaged in continuous related party transactions in accordance with general commercial terms[195].