Sales Performance - In the first half of 2024, Shimao Group achieved a contract sales amount of RMB 17.09 billion, with a total sales area of 1.313 million square meters[5]. - The company delivered approximately 25,000 housing units across 41 projects in 34 cities during the first half of 2024[6]. - Property sales revenue amounted to RMB 23.17 billion, accounting for 79.4% of total revenue, down 5.0% year-on-year; the sales area was 1.508 million square meters, a decline of 25.4%[11]. - The total area sold in the first half of 2024 was 1,508,249 square meters, compared to 2,021,593 square meters in the same period of 2023[21]. - Total revenue for the first half of 2024 reached RMB 29.19 billion, a decrease of 3.9% compared to the same period in 2023[11]. Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 29,194,689 thousand, a decrease of 3.9% from RMB 30,393,587 thousand in the same period of 2023[72]. - Gross profit for the period was RMB 14,859 thousand, significantly down from RMB 3,124,334 thousand in the previous year, indicating a drastic decline in profitability[72]. - Operating loss increased to RMB 14,232,355 thousand from RMB 1,787,968 thousand year-on-year, reflecting a worsening operational performance[72]. - The company's total assets decreased to RMB 485,584,590 thousand as of June 30, 2024, down from RMB 543,250,395 thousand at the end of 2023[75]. - The net loss attributable to equity holders of the company was RMB 22,667,515 thousand, compared to RMB 12,057,786 thousand in the prior year, indicating a significant increase in losses[73]. Debt and Restructuring - Shimao Group is actively advancing debt restructuring efforts, particularly for its overseas debts, with a detailed restructuring plan launched on March 25, 2024[6]. - The company is actively pursuing a proposed restructuring of its offshore debt, which includes approximately USD 6.8 billion in senior notes and various loans totaling approximately USD 2.1 billion and HKD 20.4 billion[84]. - The company has applied for loans totaling approximately RMB 504 million, of which RMB 139 million has been approved, as part of efforts to secure financing for ongoing projects[84]. - As of June 30, 2024, total borrowings were approximately RMB 256.603 billion, a decrease from RMB 263.963 billion as of December 31, 2023[35]. - The asset-to-liability ratio increased to approximately 52.8% as of June 30, 2024, compared to 48.6% as of December 31, 2023[35]. Operational Strategy - The group is focusing on internal asset revitalization and maximizing asset value by halting land acquisitions and enhancing existing projects[5]. - The company emphasizes risk prevention and management to ensure stable operations amid ongoing market challenges[5]. - Shimao Group aims to enhance operational efficiency and product quality to meet its annual business targets[6]. - The company plans to focus on enhancing customer-centric core competitiveness and improving operational agility in the second half of 2024[9]. - The company will continue to pause land acquisitions while optimizing existing asset management to maximize asset value[14]. Property Management and Hotel Operations - Shimao Services reported revenue of RMB 4.032 billion in the first half of 2024, with a gross profit of RMB 812 million, and a net profit of RMB 211 million, marking a 5.7% year-on-year increase in property management service revenue[7]. - The hotel segment generated total revenue of RMB 1.07 billion in the first half of 2024, reflecting a 1.4% year-on-year growth, with RevPAR increasing by 2.1%[7]. - The overall occupancy rate for managed commercial projects was close to 90%, remaining stable compared to the end of the previous year[17]. - The overall occupancy rate for managed office buildings was below 75%, a decrease of 5-6 percentage points compared to the end of the previous year[17]. - Hotel operating revenue increased by 1.4% to approximately RMB 1.074 billion in the first half of 2024, compared to RMB 1.059 billion in the same period of 2023[22]. Employee and Shareholder Information - As of June 30, 2024, the group employed 49,993 employees, with a total salary expenditure of approximately RMB 2.557 billion[39]. - The group has adopted three share incentive plans to recognize and encourage contributions from selected employees, with a maximum number of shares granted under the 2011 plan being 69,319,016 shares, representing 2% of the issued shares at the adoption date[44]. - The company’s major shareholder, Xu Rongmao, holds 2,422,840,586 shares, representing approximately 63.795% of the issued share capital[54]. - The company did not recommend an interim dividend for the six months ended June 30, 2024, consistent with the previous year[70]. - The company has a dedicated remuneration committee to evaluate the performance and compensation of directors and senior management[65]. Legal and Compliance Matters - The company is in communication with auditors regarding uncertainties related to going concern, primarily influenced by the current state of the Chinese real estate market and the progress of overseas debt restructuring[42]. - The company has ongoing legal proceedings related to comprehensive borrowing or financial guarantees, but management believes these will not have a significant adverse impact on the company's operations or financial condition[145]. - The company has reached preliminary agreement with auditors on accounting treatment for financing arrangements with third-party trust companies, which is expected to eliminate the non-standard audit opinion for the year ending December 31, 2024[41]. - The group has communicated recent operational conditions and debt restructuring progress to auditors, who are currently unable to provide a definitive opinion[42]. - The company has provided mortgage financing guarantees amounting to RMB 36,479,599 thousand as of June 30, 2024, down from RMB 39,635,718 thousand as of December 31, 2023, indicating a decrease of approximately 5.5%[144].

Financial Performance - Total revenue for the first half of 2024 decreased by 3.9% to RMB 29.195 billion, compared to RMB 30.394 billion in the same period of 2023[2]. - Property sales revenue accounted for 79.4% of total revenue, amounting to RMB 23.17 billion, which is a 5.0% decrease year-on-year[2]. - The gross profit for the first half of 2024 was approximately RMB 0.15 billion, resulting in a gross margin of about 0.1%[1]. - The company reported a revenue of RMB 29,194,689 thousand for the six months ending June 30, 2024, a decrease from RMB 30,393,587 thousand in the same period of 2023, representing a decline of approximately 3.9%[33]. - The gross profit for the same period was RMB 14,859 thousand, significantly lower than RMB 3,124,334 thousand in the previous year, indicating a substantial drop in profitability[33]. - The net loss for the period was RMB 24,214,684 thousand, up from RMB 11,623,979 thousand in the same period last year, marking an increase of approximately 108.5%[34]. - The total operating loss for the group was RMB 14,232,355, compared to a loss of RMB 24,214,684 in the previous period[47]. - The company reported a basic loss per share of RMB (5.98), compared to RMB (3.18) in the same period last year, indicating a worsening loss per share[34]. Property Sales and Management - For the first half of 2024, the company reported contract sales of RMB 17.09 billion, with a sales area of 1.313 million square meters[3]. - The company delivered approximately 25,000 housing units across 41 projects in 34 cities during the first half of 2024[4]. - The property management segment generated revenue of RMB 4.032 billion, with a gross profit of RMB 0.812 billion and a net profit of RMB 0.211 billion[6]. - The property management services revenue increased by 5.7% year-on-year to RMB 2.761 billion[6]. - Property sales accounted for RMB 23,174,321, down from RMB 24,393,824, representing a decline of 5.00% year-over-year[45]. Assets and Liabilities - Total assets decreased to RMB 485,584,590 thousand as of June 30, 2024, down from RMB 543,250,395 thousand at the end of 2023, a reduction of about 10.6%[35]. - The company's total liabilities were RMB 461,042,137 thousand, a decrease from RMB 491,999,365 thousand in the previous year, indicating a reduction of approximately 6.3%[37]. - The group's asset-liability ratio was approximately 52.8% as of June 30, 2024, compared to 48.6% as of December 31, 2023[25]. - The group had capital and property development commitments of RMB 28.050 billion as of June 30, 2024[28]. Cash Flow and Financing - As of June 30, 2024, the group's cash and bank balances totaled approximately RMB 18.677 billion, down from RMB 21.432 billion as of December 31, 2023[25]. - The net financing cost for the six months ended June 30, 2024, was approximately RMB 8.633 billion, showing no significant change from RMB 8.465 billion in the same period of 2023[21]. - The group is actively pursuing a restructuring of its offshore debt, including approximately USD 6.8 billion in principal amount of senior notes[41]. - The group is seeking alternative financing and loans to address its existing financial obligations and future operational and capital expenditures[41]. Operational Challenges - The company has suspended land acquisitions and is focusing on optimizing existing project management[5]. - The group is facing significant uncertainty regarding its ability to continue as a going concern due to various legal and financial challenges[40]. - The group has outstanding borrowings totaling RMB 172.8 billion that are not repaid as scheduled[40]. - A petition for winding up was filed against the company involving financial obligations of approximately HKD 1.5795 billion, with the hearing further postponed to December 16, 2024[71]. Strategic Initiatives - The company plans to enhance merchant confidence through various strategies, focusing on cash flow management and optimizing operational efficiency[8]. - The group aims to enhance market expansion and product development strategies in the upcoming quarters[49]. - The company continues to focus on market expansion and new product development as part of its strategic initiatives moving forward[51]. Corporate Governance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange, with one exception regarding the insurance arrangements for directors[72]. - The board of directors includes four executive directors and three independent non-executive directors[75].

智通财经APP讯，世茂集团(00813)公布2023年业绩，营业额约为人民币594.64亿元，毛利约为人民币58.48亿元，同比增加约10.7%。2023年合约销售额为人民币428.22亿元，合约销售面积为294.7万平方米。于2023年12月31日，该集团的土地储备约为5105万平方米(权益前)。 2023年，世茂服务坚定信心，奋勇拼搏，全年收入实现人民币82.03亿元，毛利润实现人民币16.46亿元，权益持有人应占核心净利润为人民币6.48亿元。实现在管建筑面积2.51亿平方米，合约建筑面积3.32亿平方米。毛利率为20.1%，权益持有人应占核心净利润率为7.9%，保持行业较高水平。经营活动所得现金净额高达人民币10.3亿元，大幅超过净利润，实现高质量发展。 截至2023年12月31日，该集团自持酒店已开业的有24家。2023年，随着社会经济全面恢复常态化运营，旅行需求进一步释放，国家政策持续利好。世茂酒店板块全年总收入达人民币23.0亿元，同比2022年增长31.4%;衡量酒店盈利能力的核心指标之一平均每房收益(RevPAR)，同比提升39.8%，均创历史新高。 2023年，世茂聚焦保障交付工作，成立以 ...

Financial Performance - The group's revenue for the year was approximately RMB 59.464 billion, representing a decrease of about 5.7% compared to the previous year[17]. - The group's gross profit was approximately RMB 5.848 billion, an increase of about 10.7% year-on-year, with a gross margin of 9.8%[17]. - The core business loss attributable to shareholders was approximately RMB 14.508 billion[17]. - The overall revenue for the group was approximately RMB 59.464 billion in 2023, a decrease of 5.7% from RMB 63.040 billion in 2022, primarily due to slower completion progress[39]. - The annual loss attributable to equity holders was RMB 21,030,181 thousand, compared to RMB 21,492,478 thousand in the previous year[81]. - The group reported a net loss of RMB 23,599,417 thousand for the year, compared to a loss of RMB 22,244,179 thousand in the previous year[112]. - The company reported a net loss attributable to equity holders of RMB 21,030,181 thousand for the year ended December 31, 2023, compared to a loss of RMB 21,492,478 thousand in 2022, showing a slight improvement[148]. Asset and Liability Management - As of December 31, 2023, the group holds investment properties with a book value of approximately RMB 13.4 billion and inventory valued at approximately RMB 10.6 billion[2]. - Total assets decreased to RMB 543,250,395 thousand from RMB 616,210,939 thousand in 2022, indicating a reduction of approximately 11.8%[84]. - Total liabilities decreased to RMB 491,999,365 thousand from RMB 536,705,854 thousand in 2022, reflecting a decrease of about 8.3%[87]. - The net debt ratio as of December 31, 2023, was approximately 473.2%, up from 302.2% as of December 31, 2022[70]. - The asset-liability ratio, excluding prepayments, was approximately 88.7% as of December 31, 2023, compared to 83.8% as of December 31, 2022[70]. - The group has ongoing litigation and arbitration cases that may impact its ability to continue as a going concern[94]. - The group has entered into agreements to sell 51% of a project company for RMB 3.91 billion, with conditions to be met before completion[126]. Investment and Financing Activities - The company repurchased 31,750,000 shares at an average price of RMB 1.58 per share during the year[9]. - The company increased its stake in Shanghai Shimao by acquiring 52,168,138 shares at an average price of RMB 1.16 per share[9]. - The group has ongoing litigation and arbitration cases that may impact its ability to continue as a going concern[94]. - The board has implemented plans to alleviate liquidity pressure, including restructuring approximately USD 6.8 billion of offshore debt and extending RMB 18.9 billion of long-term bonds[96]. - The group is actively seeking alternative financing and loans to meet its financial obligations and future operational and capital expenditures[96]. - The group reported a net financial asset impairment provision of RMB 2,031,610 thousand, compared to RMB 318,703 thousand in the previous year[80]. Operational Highlights - In 2023, the company's contract sales amounted to RMB 42.822 billion, with a total sales area of 2.947 million square meters[17]. - The property sales revenue for the year was RMB 46.986 billion, accounting for 79.0% of total revenue, with a recognized sales area of 3.641 million square meters[22]. - The average selling price for the year was RMB 14,532 per square meter[23]. - The hotel segment generated total revenue of RMB 2.295 billion in 2023, representing a year-on-year increase of 31.4%, with RevPAR increasing by 39.8%[34]. - The overall occupancy rate of commercial projects reached 91%, an increase of 1 percentage point year-on-year[29]. - The leasing market for office buildings continued to face challenges, with an overall occupancy rate of 77%, a decrease of about 1 percentage point year-on-year[29]. Corporate Governance and Compliance - The company has complied with all corporate governance codes as per the listing rules for the year ended December 31, 2023[8]. - The company did not recommend a final dividend for the year ended December 31, 2023, consistent with the previous year[12]. - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, without significant changes to its accounting policies or financial statement presentation[99]. Market Conditions and Challenges - The fair value loss of investment properties for the year ended December 31, 2023, is approximately RMB 1.1 billion, while the impairment loss for inventory is approximately RMB 300 million[2]. - The fair value of investment properties and inventory may not be free from material misstatement due to insufficient audit evidence[3]. - Fair value losses on investment properties totaled approximately RMB 5.878 billion in 2023, significantly higher than RMB 0.631 billion in 2022, due to a continued downturn in the commercial property market[53]. - Other net losses amounted to approximately RMB 3.849 billion in 2023, compared to net income of RMB 3.562 billion in 2022, largely due to losses from subsidiaries undergoing bankruptcy proceedings[54]. - The company faces significant uncertainties that may impact its ability to continue as a going concern[157].

Financial Performance - In the first half of 2023, the company achieved a contract sales amount of RMB 28.07 billion, with a total sales area of 1.868 million square meters[11]. - The group's total revenue for the first half of 2023 was approximately RMB 30.39 billion, a decrease of 11.5% compared to RMB 34.36 billion in the same period of 2022[35]. - The group reported a loss attributable to shareholders of RMB 12.06 billion for the first half of 2023, compared to a loss of RMB 9.79 billion in the same period of 2022[48]. - In the first half of 2023, the total revenue was approximately RMB 24,394 million, a decrease of 13.2% compared to RMB 28,234 million in the first half of 2022[50]. - The core business loss attributable to shareholders increased to approximately RMB 7.325 billion in the first half of 2023, compared to RMB 5.529 billion in the same period of 2022, with a core business loss rate of 33.7%[179]. Real Estate and Property Management - Property sales accounted for 80.3% of total revenue, while hotel operations, commercial operations, property management, and other businesses contributed 19.7%[35]. - The group delivered approximately 32,000 housing units in cities such as Guangzhou, Chongqing, Wuhan, Hefei, and Shaoxing during the first half of 2023[24]. - The total area under management for property services reached 260.7 million square meters, with a contracted area of 346.2 million square meters[25]. - The total area sold during the period was 2.022 million square meters, representing a decline of 21.5% compared to the same period last year[167]. - The company is implementing refined management measures for its projects to enhance sales performance amid a challenging real estate market[167]. Hotel Operations - The hotel segment reported total revenue of RMB 1.06 billion in the first half of 2023, representing a year-on-year growth of 43.5%[19]. - Hotel operating revenue increased by approximately 43.5% to RMB 1,059 million in the first half of 2023, compared to RMB 738 million in the same period of 2022[38]. - The average revenue per available room (RevPAR) for hotels improved by 46% year-on-year, reflecting a recovery in the hotel industry[46]. - The revenue from newly opened hotels in the first half of 2023 was RMB 1,059 million, an increase from RMB 738 million in the first half of 2022[52]. - The company plans to open several new hotels, including Qingdao and Chongqing locations, to strengthen its brand presence[19]. Market Conditions and Strategy - The real estate market is expected to see a moderate recovery due to the implementation of supportive policies aimed at stabilizing the market[10]. - The overall retail consumption market is showing signs of recovery, although consumer confidence remains relatively weak[14]. - The company has paused acquiring new land and is focusing on optimizing existing projects to ensure sales performance[11]. - The company emphasizes a strategy of "returning to fundamentals" and prioritizing risk management in its operations[17]. - The company plans to continue its cautious operational strategy and suspend land acquisitions[158]. Financial Management and Costs - The cost of sales decreased by 13.1% to approximately RMB 27.27 billion for the six months ended June 30, 2023, compared to RMB 31.39 billion for the same period in 2022, consistent with the revenue decline[77]. - Financing costs decreased by 12.0% to approximately RMB 8.47 billion from RMB 9.62 billion in the first half of 2022, mainly due to a reduction in exchange losses from RMB depreciation[80]. - Administrative expenses decreased by 13.3% from approximately RMB 2.645 billion in the first half of 2022 to approximately RMB 2.293 billion in the first half of 2023[56]. - Marketing and promotional costs decreased by 55.8% to approximately RMB 694 million from RMB 1.57 billion in the same period of 2022, aligning with the decline in contract sales[79]. - The group is focused on cash flow management and profitability upgrades to achieve strategic and management goals amid market challenges[44]. Share Incentive Plans - The company has adopted three share incentive plans to motivate and retain key employees[66]. - The total number of shares granted under the 2021 Shimao Group Share Incentive Plan is capped at 0.3% of the issued shares, equating to 7,091,919 shares[72]. - A total of 6,865,821 shares of Shimao Services were granted under the 2021 Shimao Group Share Incentive Plan, accounting for approximately 0.29% of the total shares issued as of the adoption date II[103]. - The total number of shares granted under the Shimao Services Share Award Scheme is capped at 3% of the issued shares as of the adoption date, amounting to 70,919,190 shares[130]. - The total number of shares that became invalid or were canceled during the reporting period was 595,610 shares[106]. Debt and Liquidity - The total amount of secured borrowings was approximately RMB 238.49 billion, secured by properties and cash equivalents totaling RMB 185.03 billion[88]. - The net debt ratio increased to approximately 372.5% as of June 30, 2023, compared to 302.2% as of December 31, 2022[85]. - The group has established a trust to manage a share incentive plan, purchasing a total of 47,006,000 shares for approximately HKD 756.63 million (equivalent to RMB 665.074 million) as of June 30, 2023[182]. - The company issued long-term bonds totaling RMB 2 billion with a fixed interest rate of 3.60%, maturing on March 5, 2023, and has extended the maturity dates of various bonds totaling approximately RMB 4.06 billion to dates between December 2024 and December 2026[193]. - As of June 30, 2023, the group's cash to short-term debt ratio was 0.03, unchanged from December 31, 2022[175].

Financial Performance - For the year ended December 31, 2022, the total revenue of Shimao Group was RMB 63,040.148 million, a significant decrease from RMB 107,797.269 million in 2021, representing a decline of approximately 41.5%[13] - The group reported a gross profit of RMB 5,281.374 million, compared to RMB 39,667.267 million in 2021, indicating a substantial drop in profitability[13] - The net loss attributable to equity holders of the company was RMB 21,492.478 million, compared to a loss of RMB 27,092.790 million in 2021[13] - The operating loss for the year was RMB 2,300.012 million, a notable improvement from a loss of RMB 18,515.859 million in the previous year[13] - The group's hotel revenue for 2022 was RMB 1.75 billion, down 17.5% from RMB 2.12 billion in 2021[53] - The company's operating revenue decreased by approximately 7.1% from RMB 2.033 billion in 2021 to RMB 1.889 billion in 2022, primarily due to a sluggish consumer market and overall lack of confidence among market participants[90] - The core business loss attributable to shareholders decreased to approximately RMB 12.825 billion in 2022 from RMB 23.251 billion in 2021, resulting in a core business loss rate of 32.3%[118] - The gross profit margin for the year ended December 31, 2022, was approximately 8.4%, up from 2.4% in 2021, attributed to discounts on property sales and high material and labor costs[92] - The group achieved a gross profit margin of 22.5% in 2022, maintaining a leading position in the industry[79] Sales and Contracted Areas - The total contracted sales for 2022 amounted to RMB 86.52 billion, with a total contracted sales area of 5.374 million square meters[17] - Property sales accounted for 79.7% of total revenue, while hotel operations, commercial operations, property management, and other businesses contributed 20.3%[56] Assets and Liabilities - The total assets of the group as of December 31, 2022, were RMB 616,210.939 million, a decrease from RMB 628,104.069 million in 2021[13] - The group's asset-liability ratio, excluding advance receipts, was approximately 83.8% as of December 31, 2022, compared to 77.4% in 2021[31] - The net debt ratio increased to approximately 302.2% as of December 31, 2022, compared to 156.0% as of December 31, 2021[98] - Total borrowings increased by 18.2% from approximately RMB 231.76 billion on December 31, 2021, to approximately RMB 274.01 billion on December 31, 2022, primarily due to the real estate industry's continued decline and the impact of COVID-19[120] Operational Strategy and Future Outlook - The group plans to focus on cash flow management, profitability enhancement, and market development in 2023[4] - The outlook for 2023 suggests a moderate recovery in the real estate sector, although consumer confidence remains fragile[16] - The group aims to transition towards a light-asset model and enhance its commercial management capabilities[2] - The group plans to focus on a dual-driven development model of "real estate development and sales + commercial operation and management" to enhance its business management capabilities[78] - The group aims to anchor its "Big Airplane" development strategy and prepare for strategic transformation with a focus on quality improvement and value chain reshaping[83] Construction and Development - The total area under construction as of the end of 2022 was approximately 38.14 million square meters, with a planned completion area of about 6 million square meters for 2023[48] - The total area under management increased to 261.6 million square meters, up 8.8% year-on-year, while the contracted area reached 341.3 million square meters, up 10.8% year-on-year[79] Financial Adjustments and Provisions - The group recorded a total fair value loss of approximately RMB 631 million in 2022, compared to RMB 602 million in 2021, primarily due to the decline in fair value of the Hangzhou Jianqiao investment property project[64] - The group made an additional provision for expected credit losses of approximately RMB 319 million due to various adverse factors in the macroeconomic, industry, and financing environment[66] - The loss attributable to joint ventures and associates was approximately RMB 132 million, a decrease of about RMB 301 million compared to the previous year, mainly due to a reduction in property impairment provisions[67] Share Incentive Plans - The total number of shares granted under the 2011 Shimao Group Share Incentive Plan was 8,709,353 shares, with 60% vesting after 12 months and 40% after 24 months from the grant date[138] - The maximum number of shares that can be granted under the 2021 Shimao Group Share Incentive Plan is 0.3% of the issued Shimao Service Shares, totaling 7,091,919 shares[146] - A total of 6,865,821 shares of Shimao Services were granted under the 2021 Shimao Group Share Incentive Plan[149] - The total number of shares granted to the top five highest-paid individuals, excluding directors, was 3,630,319 shares[152] - The total number of shares granted to directors on November 16, 2022, was 386,786 shares[152] Shareholder Information - The largest shareholder, Xu Rongmao, holds 2,422,840,586 shares, representing approximately 63.795% of the issued share capital[178] - As of the report date, the total number of shares held by Xu Rongmao under controlled entities is 1,593,276,680, representing approximately 64.553% of the issued share capital[181] Compliance and Governance - The company appointed Zhonghui Anda CPA Limited as the new auditor on March 24, 2022, following the resignation of PwC[194] - The company has confirmed compliance with the non-competition agreement as of December 31, 2022, involving the group and its close associates[191]

Debt Restructuring and Financial Obligations - The group is actively pursuing a proposed restructuring of its offshore debt, which includes approximately $6.8 billion in US dollar-denominated senior notes and various loans totaling about $2.1 billion and HK$20.9 billion from offshore banks and financial institutions[1]. - The board is confident in obtaining creditor support to complete the proposed restructuring[1]. - The group is seeking alternative financing to meet existing financial obligations and future operational and capital expenditures[2]. - The group has successfully negotiated extensions for long-term bonds and medium-term notes totaling approximately RMB 12.1 billion and RMB 5.4 billion, originally due in 2023 and 2024, respectively[2]. - The company issued a total of USD 450,000,000 in senior notes due on July 3, 2022, with a fixed interest rate of 4.75%[100]. - The total amount of medium-term notes issued by the company was RMB 1,000,000,000, due on October 21, 2022, with a fixed interest rate of 4.24%[102]. - The company issued USD 1 billion senior notes with a fixed interest rate of 6.125%, maturing on February 21, 2024[105]. - The company issued a total of RMB 2.8 billion long-term bonds with a fixed interest rate of 3.90%, maturing on March 25, 2025[112]. - The company issued HKD 3.11 billion (approximately RMB 2.54 billion) convertible bonds with a fixed interest rate of 2.25%, maturing on October 31, 2022[113]. - The company extended the maturity date of the third phase long-term bonds to May 22, 2023, with a fixed interest rate of 4.15%[104]. - The company redeemed RMB 50 million of the second phase private placement notes and agreed to extend the notes[112]. - The company has issued a total of RMB 970 million medium-term notes with a fixed interest rate of 5.15%, maturing on March 16, 2023[107]. - The company had outstanding principal amounts of USD 399,000,000 and HKD 2,486,050,000 under a multi-currency loan agreement as of June 30, 2022, with portions overdue[96]. Financial Performance - The group reported a loss attributable to equity holders of approximately RMB 9.8 billion for the six months ended June 30, 2022[20]. - For the six months ended June 30, 2022, the total revenue was RMB 34,355,924 thousand, a decrease from RMB 73,401,274 thousand for the same period in 2021, representing a decline of approximately 53%[43]. - Property sales accounted for RMB 28,233,677 thousand, significantly down from RMB 66,521,433 thousand in the previous year, indicating a decrease of about 57%[43]. - The company reported a total loss of RMB 9,268,158 for the six months ended June 30, 2022, compared to a profit of RMB 9,477,850 for the same period in 2021[52]. - The operating profit for the six months ended June 30, 2022, was RMB 1,991,643, compared to RMB 15,828,356 for the same period in 2021, indicating a decline in profitability[52]. - The company reported a net loss attributable to equity holders of RMB (9,792,344) thousand for the six months ended June 30, 2022, compared to a profit of RMB 6,282,755 thousand in the same period of 2021, representing a decline of approximately 255%[147]. - Basic loss per share for the six months ended June 30, 2022, was RMB (258.5) compared to earnings of RMB 178.0 per share in the same period of 2021[147]. - Total financing costs for the six months ended June 30, 2022, amounted to RMB 9,781,107 thousand, a substantial increase from RMB 919,254 thousand in the same period of 2021[135]. - The company did not declare any interim dividend for the six months ended June 30, 2022, compared to RMB 5,253,306 thousand in dividends declared for the same period in 2021[142][144]. Asset and Liability Management - As of June 30, 2022, the group's total borrowings amounted to approximately RMB 256 billion, with about RMB 160.3 billion due within the next 12 months[20]. - The total cash (including cash and cash equivalents and restricted cash) was approximately RMB 47.8 billion as of June 30, 2022[20]. - The group had approximately RMB 39 billion of borrowings that were not repaid by the scheduled repayment dates as of June 30, 2022[20]. - As of the report date, the group had approximately RMB 102.4 billion of borrowings that were not repaid by the scheduled repayment dates[20]. - The total assets as of June 30, 2022, were RMB 624,255,200, while total liabilities were RMB 529,178,540[54]. - The company’s total equity attributable to shareholders was not explicitly stated but can be inferred from total assets and liabilities[58]. - The company’s cash and cash equivalents included in current assets were RMB 85,606,940,000 as of June 30, 2022, compared to RMB 66,056,509,000 as of December 31, 2021[67]. - The company provided mortgage financing guarantees amounting to RMB 38,602,678 thousand as of June 30, 2022, an increase from RMB 29,373,762 thousand as of December 31, 2021[150]. - The company reported a net exchange loss of RMB 4,661,444 thousand for the six months ended June 30, 2022, with no exchange loss reported in the same period of 2021[135]. Operational Strategy and Market Conditions - The group aims to accelerate property sales as part of its business strategy plan[2]. - The real estate market continued its downward trend in the first half of 2022, with significant declines in real estate development investment and commodity housing sales, posing substantial challenges to the company's stable development and normal operations[168]. - The company aims to enhance quality and efficiency, focusing on value chain restructuring as a core objective to prepare for strategic transformation[168]. - The company adjusted its supply strategy in response to market fluctuations, postponing or canceling the supply of certain homogeneous products[182]. - The company is actively pursuing debt restructuring and communication with creditors to mitigate financial risks and ensure smooth transitions in domestic and foreign financing[1]. - The company aims to enhance operational capabilities and improve business quality through strategic, operational, organizational, and talent development initiatives[172]. - The company is committed to social responsibility, contributing to pandemic control efforts and promoting sustainable development through green building initiatives[175]. Legal and Compliance Matters - The group is involved in multiple litigation and arbitration cases, indicating significant uncertainty that may affect its ability to continue as a going concern[20]. - The group is confident in reaching solutions for ongoing litigation that currently lacks clear outcomes[2]. - The company is actively seeking various ways to resolve ongoing legal disputes related to comprehensive borrowing or financial guarantees, believing these will not significantly impact current operating performance, cash flow, or financial condition[152]. Revenue and Sales Performance - In the first half of 2022, the company achieved a contract sales amount of RMB 43.77 billion, with a total contracted sales area of 2.709 million square meters[181]. - The company's revenue for the first half of 2022 reached RMB 34.36 billion, with property sales revenue accounting for 82.2% at RMB 28.23 billion, and the recognized sales area was 2.574 million square meters[180]. - The property management segment, Shimao Services, reported revenue of RMB 426.57 million, a year-on-year increase of 12.9%, with managed construction area up 46.2% to 255.9 million square meters[172]. - The property services segment achieved revenue of RMB 4,265.7 million, representing a year-on-year increase of 12.9%, with managed building area up 46.2% to 255.9 million square meters[186]. Asset Disposals and Acquisitions - The group disposed of several assets, including land in Huangpu Road, Shanghai, and the Guangzhou Asian Games City project, to alleviate financial difficulties, generating a net cash inflow of approximately RMB 4.94 billion from these sales[190]. - The total consideration for the assets sold amounted to RMB 5,391,180,000, with a net gain from the sale of assets of RMB 3,402,931,000[160]. - The identifiable net assets sold amounted to RMB 1,988,249,000, with non-controlling interests valued at RMB 567,348,000[160]. - The group completed acquisitions of subsidiary interests totaling approximately RMB 7.997 billion, with non-controlling interests decreasing by about RMB 8.280 billion during the period[192]. - The company agreed to sell all equity interests in two non-wholly owned subsidiaries and two joint ventures for a net consideration of approximately RMB 3,316 million, completed in September 2022[200]. - The company sold all equity interests in another non-wholly owned subsidiary for a total consideration of RMB 1,750 million, completed in October 2022[200].

Financial Performance - In 2021, the total revenue from diversified businesses, including property management, commercial operations, and hotel management, was RMB 13.31 billion, accounting for 12.3% of total revenue, representing a growth of 44.3% compared to 2020[9]. - The company reported a net loss of RMB 28.38 billion for the year, compared to a profit of RMB 19.46 billion in 2020[19]. - In 2021, the company's revenue was approximately RMB 107.8 billion, a decrease of 20.4% from RMB 135.4 billion in 2020, primarily due to slower completion progress[36]. - The net loss attributable to shareholders was approximately RMB 270.93 billion in 2021, a significant decrease from a profit of RMB 126.28 billion in 2020[92]. - The group's core business profit declined to a loss of approximately RMB 232.51 billion in 2021, down from a profit of RMB 122.83 billion in 2020, resulting in a core business profit margin of negative 32.4%[93]. Assets and Liabilities - The company's total assets as of 2021 were RMB 628.10 billion, while total liabilities were RMB 514.10 billion, resulting in a net asset value of RMB 113.99 billion[19]. - The net debt ratio increased significantly to approximately 156.0% as of December 31, 2021, compared to 51.8% at the end of 2020[72]. - The cash-to-short-term debt ratio dropped to 0.21 as of December 31, 2021, down from 1.16 at the end of 2020[73]. - The group's asset-liability ratio, excluding advance receipts, increased to approximately 77.4% as of December 31, 2021, compared to 68.3% at the end of 2020[96]. - The total borrowings increased from approximately RMB 1,451.43 billion in 2020 to approximately RMB 2,317.59 billion in 2021, an increase of about 59.7%[97]. Revenue Breakdown - Property sales accounted for 87.7% of total revenue in 2021, down from 93.2% in 2020, while hotel operations, commercial operations, property management, and other businesses contributed 12.3%, up from 6.8%[36]. - The total contracted sales amount for 2021 was RMB 269.11 billion, with a total contracted sales area of 15.286 million square meters and an average selling price of RMB 17,605 per square meter[14]. - The total property sales area for 2021 was 6,400,923 square meters, generating revenue of RMB 94,488 million, a decrease from 2020's revenue of RMB 126,133 million[60]. - The commercial operations revenue increased by approximately 32.2% to RMB 2.03 billion in 2021, driven by the openings of Chengdu Shimao Plaza and Xiamen Jimei Shimao Plaza[42]. - Hotel operating revenue increased approximately 46.2% from RMB 1,447 million in 2020 to RMB 2,116 million in 2021, driven by the recovery of the Chinese economy and tourism[61]. Operational Adjustments - The company adjusted its supply rhythm in response to market trends, reducing inventory pressure amid a cooling market in the second half of 2021[21]. - The company aims to continue deepening its presence in key strategic areas such as the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta[15]. - The company plans to continue expanding its market presence and enhance its service capabilities, focusing on high-potential sectors such as schools and hospitals[31]. - The company is committed to a strategy of "light and heavy assets" development, emphasizing refined operations and professional management to accelerate the growth of its light asset commercial management business[22]. - The company will optimize its management structure in 2022 to enhance operational efficiency and focus on product quality and innovation[35]. Shareholder and Incentive Plans - The company issued a total of 120,134,424 shares as part of a cash dividend option, amounting to approximately HKD 1,675,635,000[121]. - The group has adopted three share incentive plans to recognize and encourage contributions from selected employees, aiming to attract suitable talent for ongoing development[130]. - The total number of shares awarded to other employees over the past three years reached 6,639,205, with 5,037,430 shares granted in the most recent year[134]. - The maximum number of shares that can be granted under the 2011 Shimao Group Share Incentive Plan is 2% of the issued shares at the adoption date, equating to 69,319,016 shares[142]. - The maximum number of shares that can be granted under the 2021 Shimao Group Share Incentive Plan is 0.3% of the issued Shimao Services shares, totaling 7,091,919 shares[148]. Donations and Social Responsibility - The company has cumulatively donated over RMB 1.75 billion to public welfare projects, benefiting over 22 million people[11]. - The company aims to strengthen its digital service capabilities through its property management subsidiary, Shimao Services, which focuses on comprehensive property services and urban services[51]. Market Conditions and Challenges - The overall sales and cash collection pressure increased in the second half of 2021 due to changes in the market environment, leading to a contraction in industry investment[56]. - Financial asset impairment provisions increased by 802.9% to approximately RMB 4,360 million, reflecting adverse macroeconomic conditions[67]. - The impairment loss on goodwill was primarily due to the overall economic slowdown and underperformance in the real estate sector, leading to a cautious assessment of acquired companies[88].

Financial Performance - Revenue for the first half of 2023 decreased by 11.5% to RMB 30.394 billion, compared to RMB 34.356 billion in the same period of 2022[4]. - The contracted sales amount for the first half of 2023 was RMB 28.07 billion, with a contracted sales area of 1.868 million square meters[6]. - Property sales revenue was RMB 24.39 billion, accounting for 80.3% of total revenue, down 13.6% year-on-year[5]. - The core business loss attributable to shareholders was RMB 7.325 billion, an increase of approximately RMB 1.796 billion (about 32.5%) compared to the same period in 2022[4]. - For the six months ended June 30, 2023, the company reported a loss attributable to equity holders of approximately RMB 12.1 billion, an increase from RMB 9.79 billion for the same period in 2022[84]. - The loss for the period before tax was approximately RMB 10.73 billion, compared to RMB 7.54 billion for the same period in 2022[91]. - The company reported a total comprehensive loss of RMB 11,591,508,000 for the period, compared to a loss of RMB 9,299,596,000 in the previous period, indicating an increase in losses[93]. - The loss attributable to equity holders of the company was RMB 12,057,786,000, compared to a loss of RMB 9,792,344,000 in the previous period, reflecting a significant decline in profitability[93]. - Basic loss per share for the six months ended June 30, 2023, was RMB (3.18), compared to RMB (2.59) for the same period in 2022[125]. Hotel Operations - The hotel segment achieved total revenue of RMB 1.06 billion in the first half of 2023, representing a year-on-year growth of 43.5%[12]. - The average revenue per available room (RevPAR) in the hotel segment increased by 46% year-on-year[12]. - Hotel operating revenue increased approximately 43.5% to RMB 1.059 billion in the first half of 2023, up from RMB 738 million in the same period of 2022[27][28]. - Hotel operating income increased to RMB 1,058,595,000 for the six months ended June 30, 2023, compared to RMB 738,464,000 in the same period of 2022, reflecting a growth of approximately 43.4%[132]. Debt and Financing - The net debt ratio as of June 30, 2023, was approximately 372.5%, up from 302.2% on December 31, 2022[36]. - The company is actively pursuing the restructuring of its offshore debt, including approximately USD 6.8 billion in senior notes and various loans from foreign banks totaling approximately USD 2.1 billion and HKD 20.9 billion[74]. - The company aims to seek alternative financing and loans to meet its existing financial obligations and future operational and capital expenditures[74]. - The company has successfully negotiated the extension of long-term bonds and medium-term notes totaling RMB 121 billion and RMB 54 billion, originally maturing in 2023 and 2024, respectively[100]. - The total amount of secured borrowings as of June 30, 2023, is approximately RMB 238.49 billion, secured by properties, equipment, and restricted cash[63]. Assets and Liabilities - As of June 30, 2023, the group's total assets amount to RMB 577.97 billion, a decrease from RMB 616.21 billion as of December 31, 2022[68]. - The group's total liabilities as of June 30, 2023, are RMB 511.73 billion, down from RMB 536.71 billion as of December 31, 2022[69]. - The total equity attributable to the company's shareholders as of June 30, 2023, is RMB 66.25 billion, a decrease from RMB 79.51 billion as of December 31, 2022[69]. - The company's total borrowings amounted to approximately RMB 275.2 billion, with RMB 181.9 billion due within the next 12 months[74]. - The company's asset-liability ratio, excluding prepayments, was approximately 85.8% as of June 30, 2023, compared to 83.8% as of December 31, 2022[86]. Operational Strategy - The company will continue to adopt a cautious operational strategy, pausing land acquisitions and enhancing management of existing projects[1]. - The group maintains a cautious operating strategy and continues to suspend land acquisitions[40]. - The company is focusing on accelerating property sales as part of its strategic plan to alleviate liquidity pressure and improve financial conditions[100]. Employee and Governance - The group employed 52,518 employees as of June 30, 2023, with total compensation amounting to approximately RMB 2.83 billion[65]. - The company has implemented employee training programs to enhance skills and professional knowledge[65]. - The company has been compliant with the corporate governance code as of June 30, 2023, as confirmed by all directors[153]. - The board of directors includes four executive directors and three independent non-executive directors[168]. - The company is led by Vice Chairman and President Xu Shitan[168]. Other Financial Metrics - The gross profit increased by 5.4% to RMB 3.124 billion, with a gross profit margin of 10.3%[4]. - The gross profit margin for the group was approximately 10.3%, compared to 8.6% in the same period of 2022, showing improvement despite revenue decline[53]. - Administrative expenses decreased by 13.3% to approximately RMB 2.293 billion in the first half of 2023, compared to RMB 2.645 billion in the same period of 2022[31]. - Marketing and promotional expenses decreased by 55.8% to approximately RMB 694 million, aligning with the trend of declining contract sales[54]. - The current tax expense for the six months ended June 30, 2023, was RMB 560,567, significantly lower than RMB 1,520,567 for the same period in 2022, indicating a decrease of 63.1%[145].

Revenue Performance - Total revenue for the year ended December 31, 2022, was RMB 63.04 billion, down from RMB 107.80 billion in 2021[1] - The group's total revenue for 2022 was RMB 1.75 billion, a decline of 17.5% compared to 2021[51] - The revenue from hotel operations, commercial operations, property management, and other businesses was RMB 12.78 billion, a year-on-year decrease of 4.0%[25] - The group's revenue for the year ended December 31, 2022, was approximately RMB 63.04 billion, a decrease of 41.5% compared to RMB 107.80 billion in 2021, primarily due to slower completion progress[42] - The total revenue for the year reached RMB 107,797,269,000, a significant decrease compared to the previous year's figures[113] Property Sales - Property sales decreased by 46.8% from RMB 94.49 billion in 2021 to RMB 50.26 billion in 2022[1] - The contracted sales amount for 2022 reached RMB 86.52 billion, with a total contracted sales area of 5.374 million square meters[31] - Property sales for the year ended December 31, 2022, were RMB 50.26 billion, a decrease of approximately 46.8% compared to RMB 94.49 billion in 2021[92] - In 2022, the company's commercial project sales (excluding the impact of new energy vehicles) declined by 21% year-on-year, with foot traffic down 24% and occupancy rates decreasing by approximately 4 percentage points[46] Financial Performance - The net loss attributable to shareholders decreased from RMB 27.09 billion in 2021 to RMB 21.49 billion in 2022, primarily due to increased gross profit and other income from the sale of subsidiaries[61] - The core business loss attributable to shareholders decreased to approximately RMB 12.825 billion in 2022 from RMB 23.251 billion in 2021, with a core business loss rate of 32.3%[55] - The company reported a net loss of RMB 20,659.31 million for the year, an improvement of 27.5% compared to a net loss of RMB 28,376.88 million in 2021[70] - The group recorded a loss attributable to equity holders of approximately RMB 21.5 billion for the year ended December 31, 2022[105] - The company reported a significant operating loss of RMB 18,515,859,000, highlighting operational difficulties[113] Costs and Expenses - Selling costs decreased by 45.1% from RMB 105.18 billion in 2021 to approximately RMB 57.76 billion in 2022, consistent with the revenue decline[5] - Administrative expenses decreased by 4.7% from RMB 6.00 billion in 2021 to approximately RMB 5.72 billion in 2022[11] - The total cost of properties sold and other expenses for the year ended December 31, 2022, was RMB 68,270,574, a decrease of 45.7% from RMB 125,843,874 in 2021[149] - Financing costs for the year amounted to RMB 15,509,967, significantly higher than RMB 5,939,042 in 2021, indicating a rise in financial expenses[150] Assets and Liabilities - Total liabilities as of December 31, 2022, were RMB 536.71 billion, compared to RMB 514.10 billion in the previous year[99] - The net debt ratio as of December 31, 2022, was approximately 302.2%, up from 156.0% in 2021[56] - The total borrowings increased by 18.2% to approximately RMB 274.007 billion as of December 31, 2022, due to the ongoing decline in the real estate industry and the impact of COVID-19[67] - The asset-liability ratio, excluding advance receipts, was approximately 83.8% as of December 31, 2022, compared to 77.4% in 2021[64] Operational Strategy - The company has adjusted its operational strategy by suspending land acquisitions and focusing on the fine management of existing projects[32] - The company aims to enhance operational efficiency and value chain restructuring as part of its strategic transformation[40] - Shimao Group will focus on cash flow management, profitability enhancement, market development, and digital capabilities in 2023[48] Future Outlook - The real estate market in China is expected to experience a moderate recovery in 2023, although significant pressure remains on the industry[40] - The company plans to complete approximately 6 million square meters of construction area in 2023, with a total construction area of about 34.5 million square meters[28] - The group has developed a business strategy focused on accelerating property sales, which is expected to provide sufficient financial resources for ongoing operations and to meet financial obligations within the next twelve months[107] Dividends and Shareholder Returns - The board of directors did not recommend the distribution of a final dividend for the year ended December 31, 2022[25] - The company did not recommend a final dividend for the year ended December 31, 2022, consistent with the previous year[131] Debt Restructuring - The group is actively pursuing a restructuring of its offshore debt, which includes approximately $6.8 billion in USD-denominated senior notes and various loans totaling about $2.1 billion and HK$20.9 billion from offshore banks and financial institutions[107] - The company is currently working on a restructuring plan and has sent proposals to the advisory committee, aiming to narrow differences in economic terms[161] - The company has agreed to extend the maturity of domestic long-term bonds totaling RMB 14.35 billion to 2028, indicating a restructuring of its debt obligations[160]