Financial Performance - For the fiscal year 2024, the total revenue was approximately RMB 13,930.2 million, a decrease of about 3.9% compared to fiscal year 2023[2] - The gross profit for fiscal year 2024 was approximately RMB 2,284.9 million, an increase of about 49.8% from fiscal year 2023[2] - The net profit for fiscal year 2024 was approximately RMB 218.0 million, a decrease of about 24.1% compared to fiscal year 2023[2] - The total comprehensive income for the year was RMB 292.6 million, compared to RMB 309.8 million in the previous year[5] - Total revenue for the year ended December 31, 2024, was RMB 13,930,179, a decrease of 3.9% from RMB 14,490,232 in 2023[20] - Customer contract revenue for 2024 was RMB 13,807,905, down from RMB 14,379,520 in 2023, indicating a decrease of 4.0%[20] - The profit attributable to equity holders of the parent company for fiscal year 2024 was approximately RMB 19.9 million, a decrease of about 95.8% compared to fiscal year 2023[40] - The pre-tax profit for 2024 was RMB 1,249,282,000, a significant increase from RMB 451,207,000 in 2023[31] - The company reported a total tax expense of RMB 1,031,310,000 for 2024, compared to RMB 164,093,000 in 2023[31] Assets and Liabilities - As of December 31, 2024, the group's total asset-liability ratio and net debt ratio were approximately 67.2% and 29.2%, respectively, both maintained at reasonable levels[2] - The total non-current assets as of December 31, 2024, were approximately RMB 11,951.4 million, down from RMB 13,095.1 million in 2023[6] - Current liabilities increased to RMB 21,489.9 million in 2024 from RMB 28,732.8 million in 2023[7] - The net assets as of December 31, 2024, were approximately RMB 12,878.4 million, slightly down from RMB 12,955.2 million in 2023[7] - The company reported a total asset value of RMB 48,569,768 as of December 31, 2023, compared to RMB 39,262,740 in 2024[16] - Total liabilities increased to RMB 35,614,568 in 2024 from RMB 26,384,375 in 2023, marking a significant rise[16] - As of December 31, 2024, the company's total assets were approximately RMB 39,262.7 million, down from RMB 48,569.8 million as of December 31, 2023[109] - The company's total borrowings amounted to approximately RMB 6,542.8 million as of December 31, 2024, down from RMB 8,486.2 million as of December 31, 2023[110] Earnings Per Share - The basic and diluted earnings per share attributable to ordinary shareholders of the parent company for fiscal year 2024 were RMB 0.4 cents, down from RMB 8.5 cents in fiscal year 2023[4] - Basic earnings per share for the year were RMB 19,924,000, down from RMB 479,442,000 in 2023, with a weighted average of 5,635,809,800 shares outstanding[33] Segment Performance - Residential segment revenue was RMB 9,826,423, while the commercial segment generated RMB 4,103,756, contributing to the overall revenue[15] - The residential segment's profit was RMB 118,900, and the commercial segment reported a loss of RMB 1,130,382, resulting in a total segment profit of RMB 1,249,282[15] - In fiscal year 2024, the group's contracted sales area was approximately 353,329 square meters, a decrease of about 42.7% from 615,858 square meters in fiscal year 2023[84] - Contracted sales revenue for fiscal year 2024 was approximately RMB 5,868.5 million, down approximately 49.7% from RMB 11,669.3 million in fiscal year 2023[84] Operational Highlights - The company plans to adopt new and revised international financial reporting standards upon their effective date, with no significant impact expected on financial performance[11] - The company has not identified any single customer contributing over 10% of total revenue for the years ended December 31, 2024, and 2023[19] - The company incurred financial expenses totaling RMB 472,844,000 in 2024, down from RMB 705,769,000 in 2023[28] - The company recognized a loss of RMB 2,863,000 from the sale of subsidiaries in 2024, while no such loss was recorded in 2023[24] Projects and Developments - The "Yunzhichengli" project in Kunming achieved sales revenue of RMB 529.3 million with a sales area of 44,818 square meters, representing 90% of the project equity[45] - The "Xiu Lake He Yuan" project in Yiwu reported a sales revenue of RMB 2,513.9 million from a sales area of 60,438 square meters, achieving 90% project equity[45] - The "International Office Center A2" in Hangzhou generated RMB 2,866.1 million in sales revenue from 64,240 square meters, with a project equity of 66%[45] - The "Lung Ying Hui Jin Zuo" project in Hangzhou recorded sales revenue of RMB 375.6 million from a sales area of 16,623 square meters, achieving 59.4% project equity[45] - The "Nanjing Future City" project achieved sales revenue of RMB 383.0 million with a sales area of 61,680 square meters, representing 90% of the project equity[45] Business Strategy and Future Outlook - The group is expanding its business into commercial operations, smart property management services, and other sectors, including hotel management and leisure tourism[90] - The group aims to maintain sustainable development by diversifying its business and enhancing the interconnectivity of upstream and downstream real estate operations[95] - The group is optimistic about the overall economic and industry development in the Yangtze River Delta region, leveraging its long-term brand and business advantages[125] - The group anticipates that 2025 will be a critical year for the real estate industry, with a gradual release of market demand and stable development expected[124] Governance and Compliance - The group has adopted and complied with the corporate governance code as per the listing rules during the fiscal year 2024[129] - The company is committed to transparency in accordance with listing rules[134] - The board of directors includes five executive directors and three independent non-executive directors[134] - The chairman of the board is Mr. Shi Zhong'an[134] Miscellaneous - The company did not recommend the distribution of dividends for the fiscal year ending December 31, 2024[39] - The announcement date is March 27, 2025[134] - The report will be sent to shareholders at an appropriate time[134] - The annual report for fiscal year 2024 will be published on the Hong Kong Stock Exchange and the company's website[134]

Financial Performance - The Group's revenue for the six months ended June 30, 2024, was RMB 9,282.9 million, an increase of approximately 127.6% compared to the same period in 2023[5]. - Gross profit for the same period was approximately RMB 1,830.0 million, representing an increase of approximately 161.7% year-on-year[5]. - The unaudited profit was RMB 117.9 million, a decrease of approximately 24.5% compared to the corresponding period of 2023[5]. - Revenue from property sales amounted to approximately RMB 8,920.8 million, an increase of approximately 145.9% from RMB 3,627.8 million in the corresponding period of 2023[36]. - The profit for the period was approximately RMB 117.9 million, a decrease of approximately 24.5% from RMB 156.1 million in the corresponding period of 2023[30]. - Total comprehensive income for the period was RMB 142,611, down from RMB 221,063 in the same period last year[99]. - The profit attributable to owners of the Company was approximately RMB 62.5 million, down approximately 68.2% from RMB 196.6 million in 2023[53]. - Basic and diluted earnings per share attributable to equity holders of the parent decreased to RMB 1.11 cents from RMB 3.49 cents in 2023[97]. Sales and Contracted Projects - Contracted sales during the period were approximately RMB 2,875.0 million, a decrease of approximately 61.4% year-on-year, while recognized sales were approximately RMB 8,920.8 million, an increase of approximately 145.9%[10]. - The average sales price per square meter was approximately RMB 21,528.0, reflecting an increase of approximately 3.9% compared to the same period last year[10]. - The Group's recognized GFA sold during the review period was approximately 414,373 sq.m., with a total amount of approximately RMB 8,920.8 million[63]. - The total recognized sales from the Group's projects during the period included significant contributions from various projects, reflecting strong market demand[63]. Financial Position - As of June 30, 2024, the Group had total cash of approximately RMB 1,913.6 million and a net gearing ratio of approximately 44.8%[13]. - The Group's total assets as of June 30, 2024, were approximately RMB 42,393.9 million, a decrease from approximately RMB 48,569.8 million as of December 31, 2023[68]. - The Group's current liabilities were approximately RMB 24,390.6 million as of June 30, 2024, down from approximately RMB 28,732.8 million as of December 31, 2023[68]. - The Group's interest-bearing bank and other borrowings amounted to approximately RMB 7,786.8 million as of June 30, 2024, compared to approximately RMB 8,486.2 million as of December 31, 2023[68]. - The net debt ratio of the Group was 0.45 as of June 30, 2024, compared to 0.43 as of December 31, 2023[76]. Operational Highlights - The Group had more than 40 projects on sale, primarily located in several cities in the Yangtze River Delta region[10]. - China New City Group demonstrated strong resilience in its commercial property operations, with hotel, shopping malls, and leasing segments showing varying degrees of development[15]. - The Group plans to deepen its cultivation in the Yangtze River Delta region and maintain competitiveness in the market[25]. - The Group aims to leverage digitalization to empower operations, reduce costs, and enhance corporate operational effectiveness[26]. Cost and Expenses - The cost of sales rose to approximately RMB 7,452.9 million, an increase of approximately 120.6% from RMB 3,378.9 million in the previous year[40]. - Administrative expenses decreased by approximately 25.7% to RMB 253.6 million from RMB 341.2 million in 2023[49]. - Selling and distribution expenses decreased to approximately RMB 117.1 million, a reduction of approximately 25.9% from RMB 158.1 million in 2023[43]. Market Outlook - The outlook for the real estate industry emphasizes the need for innovative and high-quality products to drive sustainable development[22]. - The real estate industry in China is expected to achieve steady and healthy development in the second half of 2024, driven by government policies and market dynamics[87]. - The Group's future outlook remains positive, supported by ongoing project developments and a robust sales pipeline[63]. Corporate Governance - The Group does not recommend the payment of any interim dividend for the period under review[5]. - The Board does not recommend the payment of an interim dividend for the period under review, consistent with the corresponding period in 2023, which also had no dividend[86]. - The interim financial information has been reviewed and is prepared in accordance with IAS 34, with no significant issues identified[95]. Shareholder Information - As of June 30, 2024, Mr. Shi Zhongan held 3,262,411,200 shares, representing approximately 57.89% of the total shares issued[189]. - The total number of shares issued by the company as of June 30, 2024, was 5,635,809,800[189]. - The total number of shares available for grant under the company's share option scheme is 581,039,080, which is 10% of the shares in issue as of the 2019 AGM[199][200].

Land Reserves - As of June 30, 2024, the total land reserve of the group is approximately 8.10 million square meters, with an average acquisition cost of approximately RMB 2,845 per square meter[3] - The average acquisition cost of land reserves reflects the company's strategic investment approach in real estate[3] - The total land reserve indicates the company's potential for future development projects[3] Financial Communication - The company continues to focus on maintaining accurate and transparent communication regarding its financial performance[3] - The company is committed to providing supplemental information to enhance stakeholder understanding of its operations[3] - The clarification serves to uphold the integrity of the company's financial reporting[3] Governance Structure - The board of directors includes five executive directors and three independent non-executive directors, ensuring a diverse governance structure[4] - The board's composition suggests a strong emphasis on governance and oversight in corporate decision-making[4] Interim Results Announcement - The company issued a clarification regarding a printing error in the interim results announcement dated August 23, 2024[3] - The interim results announcement remains unchanged except for the clarified land reserve information[3]

[Financial Highlights and Performance Overview](index=1&type=section&id=%E6%91%98%E8%A6%81) This section summarizes the group's key financial performance and operational highlights for the reporting period [Core Performance Overview](index=1&type=section&id=%E6%91%98%E8%A6%81) In H1 2024, the group saw revenue more than double and gross profit surge by 161.7%, but profit for the period declined 24.5% to RMB 118 million, despite maintaining healthy gearing ratios Key Performance Indicators for H1 2024 | Indicator | H1 2024 (RMB Million) | H1 2023 (RMB Million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 9,282.9 | 4,078.1 | +127.6% | | Gross Profit | 1,830.0 | 699.2 | +161.7% | | Profit for the Period | 117.9 | 156.1 | -24.5% | | Contracted Sales | 2,875.0 | N/A | -61.4% | | Total Asset-Liability Ratio | 69.1% | - | - | | Net Gearing Ratio | 44.8% | - | - | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the group's consolidated financial statements, including profit or loss, comprehensive income, and financial position, for the interim period [Consolidated Statement of Profit or Loss](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2024, revenue increased 127.6% to RMB 9.28 billion, but profit for the period decreased 24.5% to RMB 118 million due to fair value losses and higher tax expenses Consolidated Statement of Profit or Loss Core Data (RMB Thousand) | Item | H1 2024 (Unaudited) | H1 2023 (Unaudited) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 9,282,943 | 4,078,059 | +127.6% | | Gross Profit | 1,830,042 | 699,196 | +161.7% | | Fair Value Change of Investment Properties | (535,900) | (29,911) | Loss Widened | | Profit Before Tax | 852,866 | 287,623 | +196.5% | | Income Tax Expense | (734,965) | (131,559) | +458.7% | | Profit for the Period | 117,901 | 156,064 | -24.5% | | Profit Attributable to Owners of the Parent | 62,509 | 196,571 | -68.2% | | Basic Earnings Per Share | RMB 1.11 cents | RMB 3.49 cents | -68.2% | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Building on the RMB 118 million profit for the period, total comprehensive income for the period was RMB 143 million, a decrease from RMB 221 million in the prior year, after accounting for other comprehensive income items Total Comprehensive Income Composition (RMB Thousand) | Item | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Profit for the Period | 117,901 | 156,064 | | Other Comprehensive Income for the Period | 24,710 | 64,999 | | **Total Comprehensive Income for the Period** | **142,611** | **221,063** | | Attributable to Owners of the Parent | 81,613 | 246,014 | | Attributable to Non-controlling Interests | 60,998 | (24,951) | [Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2024, total assets decreased 12.7% to RMB 42.39 billion, primarily due to reductions in properties under development and contract liabilities, while net assets remained stable Financial Position Summary (RMB Thousand) | Item | June 30, 2024 (Unaudited) | Dec 31, 2023 (Audited) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **42,393,898** | **48,569,768** | **-12.7%** | | Total Non-current Assets | 12,282,580 | 13,095,086 | -6.2% | | Total Current Assets | 30,111,318 | 35,474,682 | -15.1% | | **Total Liabilities** | **29,298,442** | **35,614,568** | **-17.7%** | | Total Current Liabilities | 24,390,620 | 28,732,847 | -15.1% | | Total Non-current Liabilities | 4,907,822 | 6,881,721 | -28.7% | | **Net Assets/Total Equity** | **13,095,456** | **12,955,200** | **+1.1%** | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section provides detailed notes and disclosures supporting the interim condensed consolidated financial statements, offering further insights into specific financial items [Operating Segment Information](index=7&type=section&id=3.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) In H1 2024, the residential segment reported a loss of RMB 24.49 million on RMB 6.36 billion revenue, while the commercial segment generated RMB 877.36 million profit from RMB 2.92 billion revenue, becoming the primary profit driver - Group operations are divided into two reportable operating segments - **Residential Segment**: Engaged in the development and sale of residential properties and related services in Mainland China and Canada[11](index=11&type=chunk) - **Commercial Segment**: Engaged in commercial property development, sales, leasing, and hotel operations in Mainland China, Japan, and the UK[11](index=11&type=chunk) Segment Results (H1 2024, RMB Thousand) | Segment | Sales to External Customers | Segment Results (Pre-tax Profit/Loss) | | :--- | :--- | :--- | | Residential | 6,361,169 | (24,492) | | Commercial | 2,921,774 | 877,358 | | **Total** | **9,282,943** | **852,866** | [Revenue, Other Income and Gains](index=11&type=section&id=4.%20%E6%94%B6%E5%85%A5%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Total revenue for the period was RMB 9.28 billion, with RMB 9.23 billion from customer contracts, predominantly property sales, while other income and gains decreased due to lower interest income Customer Contract Revenue Breakdown (H1 2024, RMB Thousand) | Type of Goods or Services | Revenue Amount | | :--- | :--- | | Property Sales | 8,920,811 | | Hotel Operations Revenue | 112,651 | | Property Management and Other Services | 200,835 | | **Total Customer Contract Revenue** | **9,234,297** | [Income Tax Expense](index=14&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Total income tax expense for the period significantly increased by 458.7% to RMB 735 million, primarily driven by higher PRC corporate income tax and land appreciation tax Income Tax Expense Composition (RMB Thousand) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | PRC Corporate Income Tax for the Period | 435,602 | 21,960 | | PRC Land Appreciation Tax for the Period | 495,433 | 109,238 | | Deferred Tax | (196,070) | 361 | | **Total Tax Expense for the Period** | **734,965** | **131,559** | - China's Land Appreciation Tax is levied at progressive rates from **30% to 60%** on the appreciation amount from property sales after deducting allowable expenses[23](index=23&type=chunk) [Earnings Per Share](index=15&type=section&id=7.%20%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E8%82%A1%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share for the six months ended June 30, 2024, decreased significantly to RMB 1.11 cents from RMB 3.49 cents, primarily due to a substantial decline in profit attributable to ordinary shareholders Basic Earnings Per Share Calculation | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit Attributable to Ordinary Shareholders of the Parent (RMB Thousand) | 62,509 | 196,571 | | Weighted Average Number of Ordinary Shares in Issue (Shares) | 5,635,809,800 | 5,635,809,800 | | **Basic Earnings Per Share** | **RMB 1.11 cents** | **RMB 3.49 cents** | [Management Discussion and Analysis (MD&A)](index=17&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides management's perspective on the group's financial condition and results of operations, including industry trends, financial performance, and operational highlights [Industry Review](index=17&type=section&id=%E8%A1%8C%E6%A5%AD%E5%9B%9E%E9%A1%A7) In H1 2024, China's real estate market continued to adjust with declines in investment and sales, yet the broader economy maintained stable growth, providing a foundation for industry transformation - In H1 2024, national real estate development investment decreased by **10.1%** year-on-year, with residential investment down **10.4%**[32](index=32&type=chunk) - New commercial housing sales area decreased by **19.0%** year-on-year, and sales value decreased by **25.0%** year-on-year, indicating continued weak market demand[32](index=32&type=chunk) - As of the end of June 2024, commercial housing inventory increased by **15.2%** year-on-year, intensifying inventory pressure[33](index=33&type=chunk) [Financial Analysis](index=18&type=section&id=%E8%B2%A1%E5%8B%99%E5%88%86%E6%9E%90) During the period, the group experienced high revenue growth but a decline in profit, driven by increased property sales and improved gross margin, offset by higher finance costs and income tax expenses despite reduced administrative and selling expenses Analysis of Key Financial Items Changes | Item | H1 2024 (RMB Million) | H1 2023 (RMB Million) | Y-o-Y Change | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Property Sales Revenue | 8,920.8 | 3,627.8 | +145.9% | Increase in delivered properties | | Cost of Sales | 7,452.9 | 3,378.9 | +120.6% | Increase in delivered properties | | Gross Profit Margin | 19.7% | 17.1% | +2.6 percentage points | - | | Selling and Distribution Expenses | 117.1 | 158.1 | -25.9% | Reduced expenditure | | Administrative Expenses | 253.6 | 341.2 | -25.7% | Cost reduction and efficiency measures | | Finance Costs | 77.4 | 55.9 | +38.4% | Decrease in capitalized interest | | Income Tax Expense | 735.0 | 131.6 | +458.7% | Increase in taxable profit and LAT | | Profit | 117.9 | 156.1 | -24.5% | - | [Business Operations Analysis](index=21&type=section&id=%E6%A5%AD%E5%8B%99%E7%87%9F%E9%81%8B%E5%88%86%E6%9E%90) In H1 2024, the group faced operational challenges with a 61.4% decline in contracted sales, but achieved strong confirmed sales of RMB 8.92 billion with a 3.9% increase in average selling price, maintaining substantial land reserves - Contracted sales area for the period was approximately **167,000 square meters**, with contracted sales value of approximately **RMB 2.875 billion**[44](index=44&type=chunk) - Confirmed sales area for the period was approximately **414,000 square meters**, with a value of approximately **RMB 8.921 billion**[46](index=46&type=chunk) - The average property selling price was **RMB 21,528 per square meter**, a year-on-year increase of **3.9%**; the average cost of sales was **RMB 16,843 per square meter**, a year-on-year decrease of **5.2%**[47](index=47&type=chunk) - As of June 30, 2024, total land reserves amounted to approximately **810 million square meters** in gross floor area, with an average acquisition cost of **RMB 2,845 per square meter**, sufficient for over five years of development[48](index=48&type=chunk) [Capital Structure and Liquidity](index=24&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B%E8%88%87%E6%B5%81%E5%8B%95%E6%80%A7) As of June 30, 2024, the group maintained a stable capital structure with a net gearing ratio of 45% and a current ratio of 1.23, while managing its interest-bearing borrowings and contingent liabilities Key Financial Ratios | Indicator | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Current Ratio | 1.23 | 1.23 | | Net Gearing Ratio | 0.45 | 0.43 | | Interest-bearing Borrowings to Total Assets Ratio | 0.18 | 0.17 | - Total interest-bearing bank and other borrowings amounted to **RMB 7.79 billion**, with approximately **46% (RMB 3.59 billion)** due within one year[49](index=49&type=chunk)[50](index=50&type=chunk) - As of June 30, 2024, the group had capital commitments for real estate development of approximately **RMB 2.56 billion**, and contingent liabilities of approximately **RMB 8.28 billion** (primarily guarantees for purchasers' mortgages)[52](index=52&type=chunk)[53](index=53&type=chunk) - The group's properties, plant, and equipment with a total book value of approximately **RMB 13.03 billion** were pledged as collateral for bank financing[54](index=54&type=chunk) [Human Resources](index=27&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) As of June 30, 2024, the group's employee count decreased to 4,986, with a 20.0% reduction in staff costs to RMB 187 million, reflecting cost control measures and a market-linked compensation policy - As of June 30, 2024, the group had **4,986 employees**, compared to 5,427 in the prior year period[57](index=57&type=chunk) - Staff costs for the review period were approximately **RMB 187 million**, a year-on-year decrease of **20.0%**[57](index=57&type=chunk) [Other Disclosures and Outlook](index=28&type=section&id=%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A0%85%E8%88%87%E5%B1%95%E6%9C%9B) This section covers additional disclosures, including the dividend policy and the group's strategic outlook for navigating future market conditions and ensuring sustainable development [Dividends](index=28&type=section&id=%E8%82%A1%E6%81%AF) The Board does not recommend an interim dividend for the six months ended June 30, 2024, with the dividend policy considering operational results, financial position, and future expansion plans - The Board does not recommend an interim dividend for the review period (H1 2023: nil)[61](index=61&type=chunk)[31](index=31&type=chunk) [Outlook](index=29&type=section&id=%E5%89%8D%E6%99%AF%E5%B1%95%E6%9C%9B) For H2 2024, the group anticipates a gradual stabilization of China's real estate market supported by government policies, focusing on 'ensuring delivery, stable operations, and risk control' to navigate the industry cycle - The group expects macro policies to be further implemented in the second half of the year, contributing to the stabilization of the real estate market[62](index=62&type=chunk) - The company's core strategy for the second half of the year is to "ensure delivery, stabilize operations, and control risks," with plans to strengthen refined sales management and innovation[62](index=62&type=chunk) [Corporate Governance](index=30&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) During the reporting period, the company complied with the Corporate Governance Code, with the Audit Committee reviewing the unaudited interim consolidated results and the external auditor conducting a review - The company has complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules[64](index=64&type=chunk) - The Audit Committee, comprising all independent non-executive directors, has reviewed the unaudited financial results for the current period[65](index=65&type=chunk)

Economic Outlook and Industry Development - The Group maintains a long-term optimistic view on the overall economic and industry development in the coming year, leveraging its brand and business advantages in the Yangtze River Delta region[5]. - The real estate industry in China continues to adjust at the bottom post-pandemic, with the central government optimizing policies to release rigid and improved home purchase demand[6]. - In 2024, the Group plans to respond to changes in economic cycles, market upgrades, and evolving consumer demands with a high-quality and energetic development approach[5]. - The Group aims to deepen its layout in diversified industries such as commerce, hotels, services, and finance, striving to become an integrated service provider[173]. - The Yangtze River Delta region is expected to recover earlier in the real estate cycle, and the Group will continue to focus on this strategic area[172][174]. Financial Performance and Stability - For the year ended December 31, 2023, the company recorded a total contract sales amount of approximately RMB 11.67 billion, with a total sales area of about 616,000 square meters, resulting in an average contract sales price of approximately RMB 18,948 per square meter[64]. - The Group's total sales revenue ranked among the top 100 in the industry, with stable cash flow and key financial indicators remaining at a green level[184]. - The Group maintained a "green" level for the three red lines and kept financing costs at a low level, continuing to rank as one of the "TOP10 Financial Stability for Listed Real Estate Companies in Hong Kong"[189]. - The Group's cash flow remained stable, and key financial indicators consistently maintained a positive outlook, reflecting robust operational health[189]. Governance and Board Composition - The Board reviewed the Diversity Policy considering factors such as gender, age, culture, qualifications, ability, work experience, leadership, and professional ethics to maintain competitive advantage and sustainable growth[29]. - The Company adopted formal procedures for the selection, appointment, and re-appointment of Directors to ensure a balanced composition of skills, experience, and diversity[29]. - The Company emphasizes the importance of independent non-executive Directors possessing extensive academic, professional, and industry expertise[50]. - The Board's composition is regularly assessed to ensure it meets the business requirements and maintains a balance of skills and perspectives[29]. - The Company is committed to maintaining Board diversity with an appropriate level of female representation[78]. Audit and Compliance - The Audit Committee is responsible for reviewing significant or unusual items in financial reports and ensuring compliance with accounting standards and legal requirements[40]. - The Audit Committee met at least twice during the year to review the company's financial controls and internal control systems[65]. - The Audit Committee held a total of 4 meetings during the year ended December 31, 2023, reviewing the annual report and results announcement for the year ended December 31, 2022, and the interim report for the six months ended June 30, 2023[95]. - The Company is focused on compliance with legal and regulatory requirements as part of its governance practices[70]. Shareholder Communication - The company emphasizes effective communication with shareholders through various channels, including its website and investor relations page[141]. - Face-to-face meetings and teleconferencing calls with institutional investors and research analysts were held throughout the year to maintain market surveillance and gather constructive suggestions[144]. - The annual performance announcement included a live online broadcast where the chairman and senior management addressed questions regarding the company's operations and financial performance[145]. - The board reviewed the effectiveness of the shareholder communication policy, concluding it was sufficient and effective in providing updates on the company's developments[148]. Corporate Social Responsibility - In 2023, the Zhejiang Zhong An Charity Foundation conducted 27 charity activities, donating over RMB 4.8 million, benefiting more than 12,000 people directly and over 2 million indirectly[190]. - The Group is committed to improving people's well-being and quality of life through its brand concept of "Enjoying a Better Life"[173]. Operational Highlights - The Group's rental business revenue increased year-on-year, with an overall mall occupancy rate of approximately 86%[160]. - Hotel occupancy rates approached 70%, with revenue and profit exceeding annual targets due to increased personnel movement post-pandemic[160]. - The Group achieved a 100% handover rate upon the first-day visit for many projects, enhancing customer satisfaction significantly above the industry average[188]. - The Group's commitment to high-quality development has led to phased success in guaranteed property delivery and service optimization[188].

Financial Performance - For the fiscal year 2023, the company reported revenue of approximately RMB 14,490.2 million, an increase of about 56.6% compared to fiscal year 2022[8]. - The gross profit for fiscal year 2023 was approximately RMB 1,525.4 million, a decrease of about 38.3% from fiscal year 2022[8]. - The net profit for fiscal year 2023 was approximately RMB 287.1 million, representing a significant increase of about 1,240.5% compared to fiscal year 2022[8]. - The profit attributable to equity holders of the parent company for fiscal year 2023 was approximately RMB 479.4 million, an increase of about 156.8% from fiscal year 2022[8]. - The basic and diluted earnings per share attributable to ordinary shareholders of the parent company for fiscal year 2023 were RMB 8.5 cents, compared to RMB 3.3 cents in fiscal year 2022[10]. - The company reported a total comprehensive income of RMB 309,772 thousand in 2023, compared to RMB 58,779 thousand in 2022, reflecting a significant increase[45]. - The total tax expense for the year was RMB 164.093 million, significantly lower than RMB 1,296.966 million in the previous year[67]. - The company did not recommend the distribution of dividends for the fiscal year ending December 31, 2023[76]. Revenue Breakdown - Revenue from external customers in mainland China reached RMB 14,474,030 thousand in 2023, up from RMB 9,202,483 thousand in 2022, indicating a growth of about 57.5%[32]. - The residential segment generated revenue of RMB 13,192,997 thousand, while the commercial segment contributed RMB 1,297,235 thousand for the year ended December 31, 2023[30]. - Customer contract revenue for 2023 was RMB 14,379,520 thousand, significantly higher than RMB 9,148,971 thousand in 2022, reflecting an increase of approximately 57.5%[36]. - In the fiscal year 2023, the confirmed revenue from property deliveries was approximately RMB 13,692.1 million, an increase of about 60.7% compared to RMB 8,519.3 million in 2022[105]. Asset and Liability Management - As of the end of 2023, the company's total asset-liability ratio and net debt ratio were approximately 73.3% and 43.1%, respectively, both maintaining at reasonable levels[8]. - The total current liabilities decreased from RMB 36,497.7 million in 2022 to RMB 28,732.8 million in 2023[13]. - Non-current liabilities decreased from RMB 10,265.9 million in 2022 to RMB 6,881.7 million in 2023[13]. - The company's net assets increased from RMB 12,333.2 million in 2022 to RMB 12,955.2 million in 2023[13]. - The total assets of the group as of December 31, 2023, amounted to RMB 48,569,768 thousand, compared to RMB 59,096,852 thousand as of December 31, 2022[30][31]. - The group’s liabilities totaled RMB 35,614,568 thousand as of December 31, 2023, a decrease from RMB 46,763,688 thousand in the previous year[30][31]. - The group’s interest-bearing bank loans and other borrowings were approximately RMB 8,486.2 million as of December 31, 2023, compared to RMB 14,747.7 million in 2022[196]. - The current ratio for FY2023 is approximately 1.23, slightly down from 1.25 in FY2022[200]. - The net debt-to-equity ratio for FY2023 is 0.43, significantly improved from 0.66 in FY2022[200]. Operational Highlights - The group reported a profit from the residential segment of RMB 927,874 thousand, contrasting with a loss of RMB 476,667 thousand from the commercial segment, leading to a total segment profit of RMB 451,207 thousand[30]. - The total construction area delivered in fiscal year 2023 increased by approximately 96.3%, from about 365,773 square meters in 2022 to approximately 718,117 square meters[105]. - The total area of commercial housing sales in 2023 was 111,735 million square meters, a decrease of 8.5% year-on-year[104]. - The total sales amount of commercial housing in 2023 was RMB 116,622 million, down 6.5% from the previous year[104]. - The group’s property under construction area was 838,364 million square meters in 2023, a decrease of 7.2% year-on-year[105]. - The group expects a low credit loss rate for accounts receivable due to a diverse customer base with no recent default history[98]. Awards and Recognition - The company received several awards and honors in fiscal year 2023, including being ranked among the top 100 real estate companies in China and top 10 for financial stability among mainland Chinese real estate companies listed in Hong Kong[8]. Future Plans and Strategies - The company aims to expand its market presence in mainland China, Japan, and the UK through its commercial division, which includes property development and management services[53]. - The company plans to adopt new and revised international financial reporting standards in the upcoming financial year[49]. - The company plans to expand its business into commercial operations, smart property management services, and other sectors to ensure sustainable development[156]. - The company aims to maintain a stable revenue stream and diversify investment risks through a multi-faceted business approach[156].

Financial Performance - The Group's revenue for the six months ended June 30, 2023, was RMB4,078.1 million, a decrease of approximately 19.7% compared to the same period in 2022[103]. - Gross profit was approximately RMB699.2 million, representing a decrease of approximately 59.5% year-on-year[103]. - The unaudited profit increased to RMB156.1 million, reflecting a growth of approximately 122.2% compared to the corresponding period of 2022[103]. - Revenue from property sales amounted to approximately RMB3,627.8 million, a decrease of approximately 23.5% from RMB4,744.1 million in the corresponding period of 2022[173]. - The profit for the period was approximately RMB156.1 million, representing an increase of approximately 122.2% compared to RMB70.2 million in the corresponding period of 2022[187]. - The profit attributable to owners of the Company was approximately RMB196.6 million, an increase of approximately 42.8% compared to RMB137.7 million in the same period last year[187]. Assets and Liabilities - The Group's total assets as of June 30, 2023, amounted to RMB 30,551,486,000, down from RMB 32,651,776,000 at the end of 2022, indicating a reduction of about 6.4%[3]. - Current assets decreased to RMB 28,663,382,000 as of June 30, 2023, compared to RMB 30,728,107,000 at the end of 2022, reflecting a decline of approximately 6.8%[3]. - The Group's borrowings totaled RMB 13,115,019,000 as of June 30, 2023, a decrease from RMB 14,747,680,000 at the end of 2022, representing a reduction of approximately 11.1%[16]. - Current liabilities were approximately RMB36,205.7 million, down from RMB36,497.7 million as of December 31, 2022[199]. - Non-current liabilities decreased to approximately RMB9,593.2 million from RMB10,266.0 million as of December 31, 2022[199]. - Shareholders' equity increased to approximately RMB12,554.2 million from RMB12,333.2 million as of December 31, 2022[199]. Cash and Cash Equivalents - Cash and cash equivalents were reported at RMB 1,845,023,000 as of June 30, 2023, down from RMB 3,001,572,000 at the end of 2022, a decrease of about 38.5%[9]. - The Group's cash and bank balances were RMB 5,615,551,000 as of June 30, 2023, down from RMB 6,486,431,000 at the end of 2022, a decrease of approximately 13.4%[9]. - As of June 30, 2023, the Group had total cash of about RMB5,736 million and a net gearing ratio of approximately 58.8%[108]. Property Development and Sales - Contracted sales during the review period reached approximately RMB7,449 million, an increase of approximately 41.5% compared to the same period last year[105]. - More than 40 new projects were launched for sale, primarily located in the Yangtze River Delta Region[105]. - The Group successfully delivered five projects, including Shunyuan Mansion, on schedule during the review period[129]. - The area of commodity properties pending for sale was 641.59 million sq.m., representing an increase of 17.0% compared to the same period last year[171]. Market and Industry Trends - The real estate industry is expected to benefit from the gradual release of house buying demand and supportive policies in the second half of the year[105]. - Nationwide investment in property development in the first half of 2023 amounted to RMB5,855.0 billion, a decline of 7.9% compared to the same period last year[144]. - The area under construction by property development enterprises was 7,915.48 million sq.m., representing a decline of 6.6% compared to the same period last year[171]. Customer Satisfaction and Operations - The Group's overall customer satisfaction score significantly exceeded the industry average for two consecutive years, according to the 2023 China Real Estate Customer Satisfaction Survey[130]. - Zhong An Intelligent Living is committed to enhancing customer satisfaction through initiatives like "General Manager Reception Day" to listen to customer needs[132]. - The Group continues to focus on commercial real estate operations, with revenue and profits from hotel, shopping malls, and leasing segments showing increases compared to the previous year[94]. Share Capital and Options - The Group's issued and fully paid ordinary shares remained at 5,635,809,800 as of June 30, 2023, consistent with the figure from December 31, 2022[33]. - The Company has 51,000,000 share options outstanding as of June 30, 2023, with an exercise price of HK$0.73 per share[58]. - The Company has not granted any share options under the New Scheme since its adoption on June 6, 2019, and there are 581,039,080 options available for grant[82].

[Financial Statements](index=2&type=section&id=Financial%20Statements) [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2023, the Group's revenue decreased by **19.7%** to **RMB 4.078 billion**, while profit for the period significantly increased by **122.2%** to **RMB 156 million**, primarily due to a substantial reduction in income tax expense Interim Results Summary for the Six Months Ended June 30, 2023 | Metric | H1 2023 (RMB '000) | H1 2022 (RMB '000) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 4,078,059 | 5,077,587 | -19.7% | | Gross Profit | 699,196 | 1,726,106 | -59.5% | | Profit Before Tax | 287,623 | 1,086,995 | -73.5% | | Income Tax Expense | (131,559) | (1,016,764) | -87.1% | | Profit for the Period | 156,064 | 70,231 | +122.2% | | Profit Attributable to Owners of the Parent | 196,571 | 137,659 | +42.8% | | Basic and Diluted Earnings Per Share | RMB 3.49 cents | RMB 2.44 cents | +43.0% | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2023, the Group's total comprehensive income increased significantly to **RMB 221 million**, driven by higher profit for the period and a positive fair value change in equity investments Composition of Total Comprehensive Income | Item | H1 2023 (RMB '000) | H1 2022 (RMB '000) | | :--- | :--- | :--- | | Profit for the Period | 156,064 | 70,231 | | Other Comprehensive Income, Net of Tax | 64,999 | 16,355 | | **Total Comprehensive Income for the Period** | **221,063** | **86,586** | - The increase in other comprehensive income was primarily due to the positive impact of fair value changes in equity investments, shifting from a loss in the prior period to a gain[2](index=2&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the Group's total assets were **RMB 58.35 billion**, total liabilities **RMB 45.80 billion**, and total equity **RMB 12.55 billion**, maintaining a relatively stable capital structure Financial Position Summary | Metric | June 30, 2023 (RMB '000) | December 31, 2022 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 58,353,178 | 59,096,852 | -1.3% | | Total Liabilities | 45,798,951 | 46,763,688 | -2.1% | | Total Equity | 12,554,227 | 12,333,164 | +1.8% | - Current assets amounted to **RMB 45.05 billion**, current liabilities were **RMB 36.21 billion**, resulting in net current assets of **RMB 8.84 billion**[3](index=3&type=chunk)[112](index=112&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) [Basis of Preparation and Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim financial information is prepared in accordance with IAS 34 and consistent with 2022 annual financial statements, with no significant impact from newly adopted IFRS - The basis of preparation for the financial information is consistent with that applied in the 2022 annual financial information[4](index=4&type=chunk)[113](index=113&type=chunk) - Several new and revised International Financial Reporting Standards were adopted for the first time during the period, but they did not have a significant financial impact on the financial statements[5](index=5&type=chunk)[29](index=29&type=chunk) [Operating Segment Information](index=6&type=section&id=Operating%20Segment%20Information) The Group operates in residential and commercial segments, with the residential segment contributing most revenue and profit, while the commercial segment's loss narrowed despite increased revenue - The Group has two reportable operating segments: the residential segment and the commercial segment[15](index=15&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) Segment Results (For the Six Months Ended June 30) | Segment | 2023 Revenue (RMB '000) | 2022 Revenue (RMB '000) | 2023 Results (RMB '000) | 2022 Results (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Residential | 3,259,500 | 4,820,483 | 304,734 | 1,338,154 | | Commercial | 818,559 | 257,104 | (17,111) | (251,159) | | **Total** | **4,078,059** | **5,077,587** | **287,623** | **1,086,995** | Segment Assets and Liabilities (RMB '000) | Segment | June 30, 2023 Assets | December 31, 2022 Assets | June 30, 2023 Liabilities | December 31, 2022 Liabilities | | :--- | :--- | :--- | :--- | :--- | | Residential | 45,016,206 | 44,671,977 | 37,749,578 | 36,891,821 | | Commercial | 14,584,183 | 15,179,776 | 9,296,584 | 9,871,867 | - Geographically, the vast majority of revenue (over **99%**) and non-current assets (approximately **99%**) are derived from Mainland China[35](index=35&type=chunk)[36](index=36&type=chunk)[114](index=114&type=chunk) [Revenue, Other Income and Gains](index=11&type=section&id=Revenue%2C%20Other%20Income%20and%20Gains) In H1 2023, total revenue was **RMB 4.078 billion**, primarily from property sales, while other income and gains significantly decreased due to the absence of a one-off gain from joint venture re-measurement Disaggregation of Revenue from Contracts with Customers (H1 2023) | Type of Goods or Services | Amount (RMB '000) | | :--- | :--- | | Sales of properties | 3,627,822 | | Property management and other services | 265,236 | | Hotel operation income | 124,419 | | **Total Revenue from Contracts with Customers** | **4,017,477** | - Other income and gains amounted to **RMB 64.81 million**, a significant decrease from **RMB 179 million** in the prior period, mainly due to a one-off gain of approximately **RMB 100 million** from the re-measurement of investments in a joint venture recorded in the prior period, which was absent in the current period[129](index=129&type=chunk) [Income Tax Expense](index=14&type=section&id=Income%20Tax%20Expense) Total income tax expense for H1 2023 significantly decreased by **87.1%** to **RMB 132 million**, mainly due to lower PRC corporate income tax and land appreciation tax Composition of Income Tax Expense | Item | H1 2023 (RMB '000) | H1 2022 (RMB '000) | | :--- | :--- | :--- | | Current PRC corporate income tax | 21,960 | 183,366 | | Current PRC land appreciation tax | 109,238 | 902,288 | | Deferred tax | 361 | (68,890) | | **Total Tax Expense for the Period** | **131,559** | **1,016,764** | - The applicable income tax rate for subsidiaries in Mainland China is **25%**; subsidiaries in Hong Kong, Canada, and the UK had no assessable profits during the period[22](index=22&type=chunk)[41](index=41&type=chunk) [Earnings Per Share Attributable to Owners of the Parent](index=15&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) Basic earnings per share increased to **RMB 3.49 cents** for H1 2023, based on **RMB 197 million** profit attributable to owners and approximately **5.636 billion** weighted average shares outstanding, with no dilutive impact Basic Earnings Per Share Calculation | Metric | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Parent (RMB '000) | 196,571 | 137,659 | | Weighted Average Number of Ordinary Shares Outstanding | 5,635,809,800 | 5,635,809,800 | | **Basic Earnings Per Share** | **RMB 3.49 cents** | **RMB 2.44 cents** | - Diluted earnings per share are the same as basic earnings per share as there were no potential dilutive ordinary shares outstanding during the period[25](index=25&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) [Industry Review](index=17&type=section&id=Industry%20Review) In H1 2023, China's GDP grew by **5.5%**, indicating economic stabilization, yet the real estate sector faced pressure with declining investment and sales, despite progress in housing completions - China's GDP grew by **5.5%** year-on-year in H1 2023, indicating economic stabilization and recovery[28](index=28&type=chunk) - National real estate market data shows: - Development investment decreased by **7.9%** year-on-year - Commercial housing sales area decreased by **5.3%** year-on-year - New housing starts area decreased by **24.3%** year-on-year - Housing completion area increased by **19.0%** year-on-year[47](index=47&type=chunk)[136](index=136&type=chunk) [Financial Analysis](index=18&type=section&id=Financial%20Analysis) During the review period, Group revenue declined by **19.7%** to **RMB 4.08 billion** due to fewer property deliveries, and gross margin fell to **17.1%**, but profit surged by **122.2%** driven by an **87.1%** reduction in income tax and lower financial and other expenses Performance Overview | Metric | H1 2023 | H1 2022 | Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 4,078.1 million | RMB 5,077.6 million | -19.7% | | Gross Profit | RMB 699.2 million | RMB 1,726.1 million | -59.5% | | Gross Profit Margin | 17.1% | 34.0% | -16.9pp | | Profit | RMB 156.1 million | RMB 70.2 million | +122.2% | - The decrease in revenue was primarily due to a **23.5%** reduction in property sales revenue, resulting from fewer properties delivered during the period, though revenue from property leasing, hotel operations, and property management all recorded growth[137](index=137&type=chunk)[150](index=150&type=chunk) - Key drivers for profit growth include: - Income tax expense decreased by **87.1%** due to lower assessable profits and land appreciation tax[159](index=159&type=chunk) - Finance costs decreased by **45.7%** due to reduced interest expenses[158](index=158&type=chunk) - Other expenses decreased by **86.1%**[157](index=157&type=chunk) [Business Review](index=21&type=section&id=Business%20Review) In H1 2023, the Group achieved **RMB 7.45 billion** in contracted sales, a **41.5%** increase, with **RMB 3.63 billion** in recognized sales, and maintains over **964 million sq.m.** of land bank sufficient for more than five years of development - Contracted sales amounted to approximately **RMB 7,449.8 million**, with a contracted sales area of approximately **357,410 sq.m.**[50](index=50&type=chunk)[51](index=51&type=chunk) - Recognized sales amounted to approximately **RMB 3,627.8 million**, with a recognized sales area of approximately **175,022 sq.m.**[65](index=65&type=chunk) - The average property selling price was approximately **RMB 20,728 per sq.m.**, a year-on-year decrease of **8.2%**, while the average cost of sales increased by **20.3%** to approximately **RMB 17,760 per sq.m.**[53](index=53&type=chunk) - As of June 30, 2023, the total gross floor area of land bank was approximately **964.1 million sq.m.**, with an average acquisition cost of approximately **RMB 2,977 per sq.m.**, sufficient for more than five years of future development[54](index=54&type=chunk)[66](index=66&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2023, the Group maintained a sound financial position with **RMB 5.74 billion** in cash, **RMB 13.12 billion** in interest-bearing borrowings, a net gearing ratio of **59%**, and a current ratio of **1.24** Key Financial Ratios | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Current Ratio | 1.24 | 1.25 | | Interest-bearing Borrowings to Total Assets Ratio | 0.22 | 0.25 | | Net Gearing Ratio | 0.59 | 0.66 | Cash and Borrowings Status (RMB Million) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash and Cash Equivalents and Restricted Cash | 5,735.9 | 6,633.4 | | Interest-bearing Bank and Other Borrowings | 13,115.0 | 14,747.7 | - The average effective annual interest rate for interest-bearing borrowings was **5.09%**, a decrease from **5.47%** in the prior period[57](index=57&type=chunk) - As of June 30, 2023, the Group had capital commitments of approximately **RMB 4.85 billion** and contingent liabilities of approximately **RMB 15.77 billion**, primarily related to mortgage guarantees for buyers[72](index=72&type=chunk)[73](index=73&type=chunk) [Human Resources](index=27&type=section&id=Human%20Resources) As of June 30, 2023, the Group employed **5,427** staff, with staff costs increasing by **6.6%** to **RMB 233.4 million**, supported by market-based compensation, performance incentives, and training programs - As of June 30, 2023, the Group had **5,427 employees** (June 30, 2022: 5,221 employees)[94](index=94&type=chunk) - Staff costs for the review period were approximately **RMB 233.4 million**, an increase of approximately **6.6%** year-on-year[94](index=94&type=chunk) - Employee remuneration policy considers market levels, company performance, and individual performance, offering annual discretionary bonuses, share option schemes, and continuous training[77](index=77&type=chunk) [Outlook and Dividends](index=28&type=section&id=Outlook%20and%20Dividends) The Board does not recommend an interim dividend for 2023, and management remains cautiously optimistic about China's long-term economic fundamentals, focusing on strengthening its brand advantage in the Yangtze River Delta region - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2023[80](index=80&type=chunk)[135](index=135&type=chunk) - Looking ahead, management believes that the long-term positive fundamentals of the Chinese economy remain unchanged, and the real estate industry will return to rationality[80](index=80&type=chunk) - The Group will continue to adopt a "prudent in the short term, optimistic in the long term" operational approach, leveraging its brand advantage in the Yangtze River Delta region to deepen strategic goals and enhance risk resistance capabilities[81](index=81&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) [Corporate Governance](index=29&type=section&id=Corporate%20Governance) The company complied with the Corporate Governance Code during the reporting period, with all directors confirming adherence to securities dealing standards, and the Audit Committee reviewing the interim results - The company adopted and complied with the Corporate Governance Code set out in Appendix 14 of the Listing Rules during the period[100](index=100&type=chunk) - All directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers[99](index=99&type=chunk) - The Audit Committee has reviewed the unaudited interim results of the Group[102](index=102&type=chunk)

Financial Performance - The audited consolidated revenue for 2022 was approximately RMB 9,250.5 million, representing an increase of about 86.2% from 2021[17]. - The profit attributable to owners of the parent company in 2022 was approximately RMB 186.7 million, reflecting an increase of approximately 155.4% from 2021[17]. - The gross profit for 2022 was about RMB 2,470.9 million, representing an increase of approximately 67.4% from 2021[17]. - The basic earnings per share for 2022 was RMB 3.3 cents, compared to RMB 1.3 cents in 2021[17]. - The total recognized revenue from properties delivered in 2022 was about RMB 8,519.3 million, marking a 99.1% increase compared to RMB 4,278.0 million in 2021[67]. - The Group's cost of sales for 2022 was approximately RMB 6,779.6 million, an increase of approximately 94.1% from RMB 3,492.5 million in 2021[195]. - The gross profit margin for 2022 was approximately 26.7%, a decrease of about 3.0 percentage points from 2021[196]. - Other income and gains amounted to approximately RMB 313.7 million for 2022, representing an increase of 1.2% compared to RMB 310.1 million in 2021[197]. - Selling and distribution expenses decreased by about 26.9% to approximately RMB 315.6 million in 2022 from RMB 431.9 million in 2021[198]. Sales and Contracted Projects - The Group recorded contracted sales of approximately RMB 14,267.7 million for the year ended 31 December 2022, with a contracted sales area of approximately 750,710 sq.m.[22]. - The average contracted selling price was approximately RMB 19,006 per sq.m.[22]. - Contracted sales for 2022 amounted to approximately RMB 14,267.7 million, a year-on-year decrease of about 48.9% from RMB 27,925.1 million in 2021[158]. - The total contracted GFA sold by the Group was about 750,710 sq.m., down from 1,175,362 sq.m. in 2021[158]. - Major projects contributing to contracted sales included Hangzhou's Fashion Color City with 13,072 sq.m. sold for RMB 210.7 million, and Chaoyue Mansion in Ningbo with 23,132 sq.m. sold for RMB 580.4 million[161]. - The Group's projects in Hangzhou accounted for a significant portion of sales, with multiple projects exceeding RMB 100 million in revenue[161]. Land Acquisition and Development - The Group successfully acquired seven plots of land in Hangzhou and Lishui, with a total gross floor area of approximately 524,000 square meters and an estimated development value of RMB 10.5 billion[38]. - The total gross floor area of the land bank of the Group was approximately 10.11 million sq.m., with an average land premium cost of approximately RMB3,116 per sq.m.[43][46]. - The average land cost for the new land parcels was approximately RMB 9,323 per sq.m.[165]. - The Group plans to continue its strategic layout in the Yangtze River Delta, focusing on prudent land acquisition to optimize its reserve structure[41][44]. Operational Efficiency and Cost Management - The commercial group adopted measures to reduce costs and increase efficiency, with the Xiaoshan Zhong An Plaza set to debut as a trendy cultural and entertainment center[33]. - The hotel group implemented an "One Core and Two Wings" strategic plan, focusing on themed restaurant brands and exceeding revenue targets despite challenges from the epidemic[34]. - The Group maintained a "green" level for the three red lines and kept financing costs at a low level, continuing to rank among the "Top 10 Financial Stability for Listed Real Estate Companies in Hong Kong"[26]. Employee and Organizational Development - As of December 31, 2022, the Group employed a total of 5,506 staff, an increase from 4,911 staff in 2021[188]. - The Group's staff cost for 2022 was approximately RMB 447.2 million, a decrease of about 17.4% from RMB 541.1 million in 2021[188]. Market Outlook and Strategic Focus - The real estate sector is expected to stabilize and recover under favorable economic policies and a high savings rate supporting post-epidemic consumption growth[44][47]. - The hosting of the 2023 Asian Games in Hangzhou is anticipated to boost the overall economic and social development of the region[45]. - The Group aims to become an integrated service provider by expanding into multiple industries such as commerce, service, and healthcare, focusing on improving quality of life[50][52]. - The Group's strategic focus includes expanding its land bank and enhancing project development capabilities to improve future sales performance[165]. - The Group's performance in 2022 reflects challenges in the market, necessitating a reassessment of sales strategies and project timelines moving forward[158]. Awards and Recognition - The Group received multiple awards, including being ranked among the Top 100 China Real Estate Developers and Top 10 Hong Kong Listed Domestic Property Companies for Financial Stability[186].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 眾 安 集 團 有 限 公司 Zhong An Group Limited （於開曼群島註冊成立之有限公司） 672 （股份代號： ） 2022 12 31 截至 年 月 日止年度業績公告 摘要 • 2022 9,250.5 2021 86.2% 年確認收入約為人民幣 百萬元，較 年增長約 • 2022 2,470.9 2021 67.4% 年毛利為人民幣 百萬元，較 年增長約 • 2022 186.7 2021 年母公司擁有人應佔溢利約為人民幣 百萬元，較 年增長約 155.4% ...