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]

Financial Performance - Revenue decreased by 53.2% to RMB 34.356 billion compared to RMB 73.401 billion in the first half of 2021[3]. - The gross profit dropped by 85.9% to RMB 2.965 billion, resulting in a gross profit margin of 8.6%[3]. - The core business loss attributable to shareholders was RMB 5.529 billion, a decline of approximately 189.2% compared to a profit of RMB 6.199 billion in the same period of 2021[3]. - The profit attributable to shareholders decreased from approximately RMB 6.283 billion in the first half of 2021 to a loss of approximately RMB 9.792 billion in the first half of 2022, primarily due to a reduction in revenue and gross profit contribution[45]. - The company reported a total comprehensive loss of RMB (9,299,596) thousand for the period, compared to a comprehensive income of RMB 9,208,037 thousand in the previous year[63]. - The net loss for the period was RMB 9,268,158 thousand, compared to a profit of RMB 9,477,850 thousand in the prior year, marking a substantial turnaround[62]. - Basic and diluted loss per share for the period was RMB (258.5), compared to earnings of RMB 178.0 in the same period last year[63]. Sales and Revenue Sources - For the first half of 2022, the company's contracted sales amounted to RMB 43.77 billion, with a total contracted sales area of 2.709 million square meters[3]. - 82.2% of the total revenue in the first half of 2022 came from property sales, while 17.8% came from hotel operations, commercial operations, property management, and other businesses[24]. - Property sales revenue was RMB 28,233,677 thousand, down 57% from RMB 66,521,433 thousand year-over-year[84]. - In the first half of 2022, the company achieved revenue of RMB 4.2657 billion in property services, representing a year-on-year increase of 12.9%[15]. - Hotel operating revenue decreased by approximately 24.0% to RMB 738 million from RMB 972 million in the same period of 2021, primarily due to recurring pandemic challenges[28]. Operational Adjustments - The company adjusted its operational strategy by suspending land acquisitions and focusing on fine management of existing projects[8]. - The company plans to further invest in the commercial light asset sector and accelerate its transition to a light asset model[13]. - The company aims to enhance operational capabilities and pursue "quality high growth" through strategic, operational, organizational, and talent development[21]. - The company plans to explore new revenue streams through outdoor beer gardens and community takeout services[22]. Financial Position and Liabilities - The total borrowings increased by 10.5% from approximately RMB 231.759 billion as of December 31, 2021, to approximately RMB 255.995 billion as of June 30, 2022, largely due to the ongoing downturn in the real estate industry and liquidity risks[50]. - The net debt ratio as of June 30, 2022, was approximately 219.0%, up from 156.0% as of December 31, 2021[54]. - The group's asset-liability ratio, excluding pre-receipts, was approximately 81.0% as of June 30, 2022, compared to 77.4% as of December 31, 2021[48]. - The cash-to-short-term debt ratio was 0.08 as of June 30, 2022, down from 0.21 as of December 31, 2021[55]. - The group has not made scheduled repayments totaling RMB 39 billion as of June 30, 2022[75]. - The group is seeking alternative financing and loans to meet its existing financial obligations and future operational and capital expenditures[78]. Asset Management - As of June 30, 2022, the company's land reserves were approximately 64.67 million square meters (before equity)[3]. - The total assets as of June 30, 2022, were RMB 624,255,200 thousand, slightly down from RMB 628,104,069 thousand at the end of 2021[65]. - Non-current assets decreased to RMB 130,590,767 thousand from RMB 138,221,256 thousand, indicating a reduction of approximately 5%[65]. - The company recorded a fair value loss of approximately RMB 28 million, compared to a fair value gain of RMB 534 million in the first half of 2021, mainly due to reduced rental income from Shanghai Shimao Plaza[37]. Cost Management - Sales costs decreased by 40.1% to approximately RMB 31.391 billion, down from RMB 52.388 billion in the same period of 2021, consistent with the downward trend in revenue[35]. - Marketing and promotional costs decreased by 39.1% to approximately RMB 1.570 billion, down from RMB 2.580 billion in the same period of 2021, reflecting a decline in contract sales[39]. - Administrative expenses decreased by 8.6% to approximately RMB 2.645 billion, down from RMB 2.893 billion in the same period of 2021, mainly due to personnel costs and depreciation[39]. Future Outlook and Strategies - The company has developed a business strategy plan focused on accelerating property sales[78]. - The company plans to enhance its market expansion strategies and product development in response to the current financial performance[86]. - The group is implementing measures to alleviate liquidity pressure and improve financial conditions, contingent on the success of these measures[134]. - The group is confident in achieving resolutions for ongoing litigation cases[78].

Financial Performance - The group recorded a loss attributable to equity holders of approximately RMB 27.1 billion for the year ended December 31, 2021[4]. - The group's revenue for the year ended December 31, 2021, was RMB 107.8 billion, a decrease from RMB 135.4 billion in 2020, representing a decline of approximately 20.4%[11]. - The group incurred a net loss of RMB 28.4 billion for the year ended December 31, 2021, compared to a profit of RMB 19.5 billion in 2020[11]. - The group reported a total comprehensive loss of RMB 28.91 billion for the year, compared to a total comprehensive income of RMB 19.07 billion in the previous year[31]. - The basic and diluted loss per share attributable to equity holders of the company was RMB 762.7 for the year ended December 31, 2021, compared to a profit of RMB 361.5 in the previous year[31]. - The company recorded a net loss attributable to shareholders of RMB 27.1 billion in 2021, compared to a profit of RMB 12.6 billion in 2020, resulting in a basic loss per share of RMB 762.7[79]. - The company's gross profit was approximately RMB 2.618 billion, a decrease of about 93.4% from the previous year, resulting in a gross margin of 2.4%[67]. - The loss attributable to shareholders from core operations was RMB 23.251 billion, a decline of approximately 289.3% compared to a profit of RMB 12.283 billion in 2020[67]. Assets and Liabilities - As of December 31, 2021, the total borrowings of the group amounted to approximately RMB 231.8 billion, with RMB 107.8 billion due within the next 12 months[4]. - Total assets increased to RMB 628.1 billion, up from RMB 589.8 billion, representing a growth of approximately 6.5%[14]. - Total liabilities increased to RMB 514.1 billion, compared to RMB 437.3 billion, marking a significant increase of around 17.6%[16]. - Total equity decreased to RMB 114.0 billion from RMB 152.5 billion, a decline of approximately 25.3%[16]. - The company's financial asset impairment provisions increased by 802.9% to RMB 4.360 billion in 2021, reflecting adverse macroeconomic conditions[63]. - The net debt ratio increased significantly to approximately 156.0% as of December 31, 2021, compared to 51.8% on December 31, 2020[115]. - The cash-to-short-term debt ratio dropped to 0.21 as of December 31, 2021, down from 1.16 on December 31, 2020[116]. - The group’s total liabilities included corporate borrowings of RMB 71.05 billion and other liabilities totaling RMB 1.49 billion[147]. Revenue Sources - For the year ended December 31, 2021, the company's total revenue reached RMB 107.8 billion, with property sales revenue accounting for RMB 94.49 billion, representing 87.7% of total revenue[38]. - Revenue from hotel operations, commercial operations, property management, and other businesses was RMB 13.309 billion, an increase of 44.3% year-on-year[67]. - Property sales revenue was RMB 94.49 billion in 2021, down from RMB 126.13 billion in 2020, indicating a decrease of about 25.1%[105]. - The group's hotel operating income increased to RMB 2.12 billion in 2021 from RMB 1.45 billion in 2020, reflecting a growth of approximately 46.3%[105]. - Property sales accounted for 87.7% of total revenue in 2021, while hotel operations, commercial operations, and property management contributed 12.3%[79]. Operational Changes and Strategies - The group has committed but unallocated capital and property development expenditures amounting to RMB 40.9 billion as of December 31, 2021[8]. - The group is actively pursuing restructuring of its offshore debt, including approximately USD 6.8 billion in principal amount of senior notes[7]. - The group plans to seek opportunities to divest its equity interests in certain project development companies to generate additional cash flow[7]. - The group has a business strategy focused on accelerating property sales and is confident in its ability to meet financial obligations within the next twelve months[30]. - The company plans to continue promoting sales to recover cash flow, rationally dispose of assets, and actively adjust operational strategies to ensure normal production and operation[78]. - The group emphasized a shift in industry logic from "scale" to "quality," aiming for long-term success through improved products and services[142]. Employee and Operational Metrics - The group employed a total of 53,926 employees as of December 31, 2021, with a total salary expense of approximately RMB 6.4 billion for the year[9]. - The total area of properties sold during the year was 6.401 million square meters, with an average selling price of RMB 14,762 per square meter[38]. - As of December 31, 2021, the company managed 830 projects covering 107 cities, with a managed construction area of 240.5 million square meters and a contracted construction area of 308.0 million square meters, representing year-on-year growth of 64.6% and 53.2% respectively[74]. Market Environment and Challenges - The overall market environment has changed since the second half of 2021, leading to increased sales pressure and a decline in the overall profitability of the industry[53]. - The company anticipates the opening of the Lanzhou Zhongshan Linmao Hotel in the summer of 2022, marking the first hotel under the revamped "Maoyu" brand[52]. - The company reported a fair value loss of approximately RMB 602 million in 2021, compared to a fair value gain of RMB 398 million in 2020, mainly due to a downturn in the economy and property market[88]. Financing and Debt Management - The company is actively seeking alternative financing to support its existing financial obligations and future operational and capital expenditures[21]. - The company has successfully negotiated extensions for long-term bonds and medium-term notes totaling RMB 59 billion and RMB 116 billion originally due in 2022 and 2023, respectively[21]. - The group secured a dual-currency syndicated loan facility of USD 657.5 million and HKD 5.1285 billion in April 2021, with a rate of Libor/Hibor + 2.5%[100]. - The group’s domestic subsidiaries increased borrowings backed by project assets and/or equity pledges by approximately RMB 61.78 billion by year-end[101]. Dividends and Shareholder Returns - The company did not recommend a final dividend for the year ended December 31, 2021, compared to a final dividend of HKD 0.90 and a special dividend of HKD 0.20 in 2020[67]. - The interim dividend declared for the six months ended June 30, 2021, is HKD 0.70 per share, totaling approximately RMB 2,060.75 million, with cash payments of RMB 664.78 million and scrip dividends of RMB 1,395.97 million[161].

Sales Performance - For the first half of 2021, Shimao Group achieved a contract sales amount of RMB 152.8 billion, representing a 38% increase year-on-year, completing approximately 46% of the annual sales target[11]. - The national commodity housing sales amount for the first half of 2021 increased by 38.9% year-on-year to RMB 929.31 billion, setting a historical record[9]. - Shimao Group anticipates a saleable resource of 20.04 million square meters in the second half of 2021, with a saleable value of approximately RMB 360 billion, of which 88% is located in first-tier and strong third-tier cities[11]. - The company aims to achieve an annual sales target of RMB 330 billion for 2021[11]. - The contracted sales for the first half of 2021 reached RMB 152.8 billion, a 38.3% increase year-on-year, achieving approximately 46.3% of the annual sales target[23]. - Property sales revenue amounted to RMB 66.52 billion, accounting for 90.6% of total revenue, with an 8.2% year-on-year growth[22]. Financial Performance - The group's revenue for the first half of 2021 reached RMB 73.4 billion, a 13.7% increase from RMB 64.55 billion in the same period of 2020[22]. - The company’s net profit attributable to shareholders for the first half of 2021 was RMB 6.283 billion, compared to RMB 5.266 billion in the previous year, marking a year-on-year increase of 19.3%[37]. - The company reported a profit for the period of RMB 9,477,850 thousand, compared to RMB 8,002,047 thousand in the previous year, marking a growth of 18.4%[100]. - The company’s total equity as of June 30, 2021, was RMB 162,934,649 thousand, an increase from RMB 152,494,752 thousand at the beginning of the year[102]. - The company’s retained earnings as of June 30, 2021, were RMB 72,738,301 thousand, up from RMB 69,756,582 thousand at the beginning of the year[102]. Debt and Financing - The company’s net debt ratio stood at 50.9%, maintaining below 60% for ten consecutive years, reflecting a strong financial strategy amidst tightening industry credit conditions[16]. - The group's total borrowings increased by 13.3% from approximately RMB 145.14 billion as of December 31, 2020, to approximately RMB 164.51 billion as of June 30, 2021[54]. - The group has committed but unallocated capital and property development expenditures amounting to RMB 63.085 billion as of June 30, 2021[56]. - The group has pledged properties and equipment valued at RMB 80.14 billion as collateral for bank financing, with related bank loans amounting to RMB 41.311 billion[56]. - The company successfully issued 10-year USD senior notes at a low interest rate of 3.45% and secured a four-year syndicated loan of USD 1.315 billion at LIBOR/HIBOR + 2.95%[17]. Property Management and Operations - The property management segment reported a revenue increase of 170.6% and a net profit increase of 150.9% year-on-year, with managed area reaching 175 million square meters and contracted area reaching 239 million square meters as of June 30, 2021[13]. - The company expanded its commercial and entertainment projects to 76 across 36 cities, with new openings achieving a 100% leasing rate[15]. - The hotel revenue for the first half of 2021 reached RMB 972 million, a significant increase of 114.6% compared to the same period in 2020, with 27 international brand hotels and 136 self-owned brand hotels in operation[14]. - The company opened four new self-managed hotels in the first half of 2021, increasing the total number of self-managed hotels to 27, with a total of over 32,000 rooms[34]. - The company plans to continue expanding its hotel operations and property management services to capitalize on the recovery of the economy post-COVID-19[40]. Corporate Governance and Shareholder Information - The company has a strong leadership team with extensive experience in real estate and financial management, including executives with over 22 years and 27 years of experience respectively[59][61]. - The company is committed to maintaining high standards of corporate governance, as evidenced by the qualifications and backgrounds of its board members[63][66]. - The company has a diverse board with members who have held senior positions in various financial and legal institutions, enhancing its strategic decision-making capabilities[64][65]. - The company declared an interim dividend of HKD 0.70 per share for the six months ended June 30, 2021, consistent with the previous year’s total dividend[20]. - The major shareholder increased their stake by acquiring 6.8625 million shares, demonstrating confidence in the company's growth prospects[35]. Market Conditions and Regulatory Environment - The real estate market is under strict regulatory measures, including the "three red lines" policy and "residential land supply management," which are expected to impact future sales growth[8]. - The Chinese economy showed a GDP growth of 12.7% in the first half of 2021, reflecting a stable recovery amid the ongoing pandemic[8]. - The company has established a strong regulatory framework involving developers, banks, and local governments to stabilize land and housing prices[8]. - The company is focused on continuous product innovation and operational efficiency to adapt to market conditions and achieve stable growth[23]. - The company is exploring new strategies for market expansion and product development to stay competitive in the real estate sector[62].

SHIM-@ 世茂集團 SHIMAO GROUP HOLDINGS LIMITED 世 茂 集 團 控 股 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) - (於開曼群島註冊成立之有限公司) Stock Code 股份代號 : 813 ANNUAL REPORT 年報 2020 101 11 1 2 8 8 7 4 . Page of 4 1 114 : . 0.4 4.6 . % 4 4 + t 2017 . . . . + 肇興世茂演江壹號 . . . . . te ·· the state : . 11:28 r (*) . . . t 2008 n de t A see 0.08.2 .. . 0.00 · are 4 .. . . 4 4 11 1 n and . . . 187 127 .. t 目錄 4 6 8 16 34 48 67 72 73 78 80 82 84 85 | --- | |----------------------| | | | 公司資料 | | 五年財務概要 | | 主席報告 | ...

Land Reserves and Expansion - As of June 30, 2020, the company has a land reserve of 83.93 million square meters across 423 projects in 135 cities[5] - The company is focused on expanding its quality land reserves and has established a presence in various key regions including Zhejiang, Central China, and Shandong[5] - The group increased land reserves by 12.32 million square meters during the reporting period, with 94% of the total land value located in first- and second-tier cities and strong third- and fourth-tier cities[17] - The average floor price of newly acquired land reserves was approximately RMB 5,252 per square meter, while the average land cost after equity was RMB 5,279 per square meter[39] - The company has entered 135 cities nationwide, managing 423 projects with a total land area of 83.93 million square meters (pre-equity)[39] Financial Performance - The company's total revenue for the first half of 2020 reached RMB 64.55 billion, a 14.1% increase from RMB 56.56 billion in the same period of 2019[29] - Property sales revenue amounted to RMB 61.47 billion, accounting for 95.2% of total revenue, with a year-on-year growth of 15.5%[29] - The company achieved a contracted sales amount of RMB 110.48 billion in the first half of 2020, representing a 10.1% increase year-on-year[31] - The average sales price per square meter was RMB 17,542, with a total contracted sales area of approximately 6.298 million square meters, up 13.3% year-on-year[31] - The company's gross profit for the first half of 2020 was RMB 19,512 million, up from RMB 17,020 million in the first half of 2019, reflecting a growth of 14%[51] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.60 per share and a special dividend of HKD 0.10 per share[10] - The board declared an interim dividend of HKD 0.60 per share and a special dividend of HKD 0.10 per share, totaling HKD 0.70 per share, compared to HKD 0.60 per share in the same period of 2019[28] Debt and Financing - As of June 30, 2020, the group had cash on hand of RMB 69.92 billion, an increase of 17.3% compared to the end of 2019, and a net debt ratio of 57.8%, down 1.9 percentage points from the end of 2019[19] - The company raised a total of HKD 6.9 billion through equity financing in January and May 2020, effectively mitigating systemic market risks[72] - The comprehensive financing cost for the first half of 2020 was approximately 5.50%, a decrease of 0.10 percentage points from 5.60% in the same period of 2019[73] - The company raised approximately HKD 4,638 million from the placement of 158 million shares at a price of HKD 29.58 per share, with a net price of HKD 29.35 per share after expenses[75] - The company reported a foreign exchange loss of RMB 1,292,563,000 for the six months ended June 30, 2020, compared to RMB 243,604,000 in the same period of 2019[188] Market Position and Strategy - The company continues to explore opportunities for mergers and acquisitions to strengthen its market position[12] - The company has initiated a diversified business development model called the "Big Aircraft Strategy," focusing on property development while expanding into commercial operations, hotel management, and financial services[22] - The company aims to enhance its competitive edge in commercial real estate through specialized development and operational strategies[40] Impact of COVID-19 - The company emphasizes the importance of stabilizing employment and the economy through various government policies during the pandemic[13] - The company has implemented strategies to ensure the stability of its supply chain and operations during the ongoing crisis[13] - The company donated HKD 30 million for COVID-19 prevention efforts and provided over 1.05 million masks to various regions[28] - Hotel operating revenue decreased by approximately 54.5% to RMB 453 million from RMB 996 million in the first half of 2019, primarily due to the impact of the COVID-19 pandemic[56] Property Management and Development - The group has expanded its property management portfolio to cover 495 properties, with a total contracted building area of 124.4 million square meters as of June 20, 2020[23] - The company acquired Guangzhou Yutai Property Service Co., Ltd. and Chengdu Xinyi Property Co., Ltd. to enhance its property management business[43] - The company has a construction area of 51.6 million square meters, with a planned completion of approximately 12.5 million square meters in 2020[38] Corporate Governance and Management - The company is committed to maintaining high standards of business ethics and corporate governance to enhance long-term shareholder value[102] - The board consists of seven directors, including four executive directors and three independent non-executive directors, ensuring diverse business and professional expertise[103] - The company has undergone changes in its board of directors, including the appointment of Lin Qingjin as the chairman of the nomination committee on August 25, 2020[92] Employee and Shareholder Engagement - The total employee count as of June 30, 2020, was 26,136, with total salary expenses of approximately RMB 1.436 billion during the period[81] - The company granted 4,341,514 shares to selected employees under the share incentive plan during the six months ended June 30, 2020[93] - The share incentive plan allows for a maximum of 2% of the issued share capital at the adoption date, equating to 69,319,016 shares[93]

Financial Performance - Total revenue for 2019 was RMB 111,517 million, an increase from RMB 85,513 million in 2015, representing a growth of approximately 30.5% over four years[9]. - Gross profit for 2019 reached RMB 21,430 million, up from RMB 16,448 million in 2015, indicating a growth of about 30.0%[9]. - Shareholders' profit attributable to the company was RMB 10,898 million in 2019, compared to RMB 7,840 million in 2015, reflecting an increase of approximately 38.5%[9]. - The basic earnings per share for 2019 was RMB 331.1, an increase from RMB 264.7 in 2015, showing a growth of about 25.0%[9]. - The total revenue for 2019 reached RMB 111.52 billion, a 30.5% increase from RMB 85.51 billion in 2018[10]. - The contract sales amount for 2019 was approximately RMB 260 billion, representing a 48% year-on-year growth[15]. - The gross profit for 2019 was RMB 34.13 billion, up from RMB 26.95 billion in 2018, indicating a gross margin improvement[10]. - The net profit attributable to equity holders for 2019 was RMB 6.12 billion, compared to RMB 10.90 billion in 2018[10]. - The total assets as of December 31, 2019, amounted to RMB 244.25 billion, a decrease from RMB 471.45 billion in 2018[10]. - The company achieved cash collection of RMB 195 billion in 2019, aligning with the total contract sales amount[18]. - The fair value gain on investment properties was RMB 2.34 billion, an increase from RMB 1.91 billion in 2018[10]. - The company's revenue for the year ended December 31, 2019, reached RMB 111.52 billion, an increase of 30.4% compared to RMB 85.51 billion in 2018[31]. - Property sales revenue amounted to RMB 105.29 billion, accounting for 94.4% of total revenue, with an average sales price per square meter rising by 8.6% to RMB 15,001 from RMB 13,807 in 2018[31]. - The company reported a new residential project in Hangzhou with a land cost of RMB 560 million and a planned area of 252,892 square meters, resulting in a cost per square meter of RMB 7,381[62]. - The company reported a significant increase in investment properties, which rose to RMB 56,062,747 thousand in 2019 from RMB 36,891,022 thousand in 2018, reflecting a growth of approximately 51.9%[181]. Market Expansion and Strategy - The company is expanding its market presence with projects in various regions, including Zhejiang, Hunan, and Shandong, enhancing its national footprint[4]. - The company is actively pursuing strategic acquisitions to bolster its market position and expand its operational capabilities[6]. - Future outlook remains positive with a focus on increasing revenue and profitability through enhanced project execution and market expansion strategies[6]. - The company aims to maintain a robust financial position while exploring new growth opportunities in emerging markets[6]. - The company has established strategic partnerships with over 40 institutions to navigate tightening real estate financing policies[12]. - The company is focusing on expanding its presence in key markets, as evidenced by the acquisition of land in cities like Fuzhou and Nanning[39]. - The company is exploring potential mergers and acquisitions to enhance its land bank, targeting an increase of 20% in land reserves by the end of 2020[153]. Land Acquisition and Development - The company has a land reserve of 76.79 million square meters as of December 31, 2019, with projects in 349 locations across 120 cities[5]. - The company increased its land reserves by 30.92 million square meters in 2019, with a total saleable value of approximately RMB 50 billion, of which 65% came from acquisition projects[18]. - The total planned construction area for the newly acquired land is approximately 3,000,000 square meters, reflecting significant expansion potential[39]. - The average land cost for newly acquired land in Beijing Chaoyang was RMB 21,281 per square meter, while in Qingdao it was RMB 2,550 per square meter[37]. - The company’s land acquisitions are aimed at enhancing its portfolio and driving future revenue growth through strategic development[39]. - The average land cost for newly acquired land reserves is approximately RMB 5,035 per square meter, with a total land cost of RMB 90.897 billion for 30,915,528 square meters as of December 31, 2019[41]. Financial Management and Governance - The company maintains a prudent financial policy, focusing on cash flow management and sustainable growth[18]. - The company has established a financing agreement on October 30, 2017, for a dual-currency term loan of $680,000,000 and HKD 5,890,000,000 with a term of 48 months[101]. - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange, with one exception regarding the attendance of the chairman at the annual general meeting[107]. - The board of directors consists of seven members, including four executive directors and three independent non-executive directors, all contributing with relevant qualifications and experience[109]. - The company has established a risk management and internal control system to identify, assess, manage, and report significant risks, ensuring compliance with accounting standards and applicable laws[128]. - The company has implemented a "three lines of defense" model for risk management, integrating it into core business operations[130]. - The company has established a shareholder communication policy to provide timely and comprehensive information to shareholders, enhancing transparency and engagement[145]. Hotel and Property Management - The hotel business includes 22 self-owned hotels with nearly 7,200 rooms, and the company launched the "凡象" brand targeting millennials[21]. - The property management brand was upgraded to "世茂服务," with over 100 million square meters signed for third-party services by the end of 2019[24]. - The total revenue from self-owned hotels reached RMB 2.1 billion in 2019, representing a year-on-year increase of 9.9%, with EBITDA of RMB 634 million, up 7.7%[43]. - The company launched a new lifestyle brand "Fanxiang" aimed at the millennial generation, with the first hotel opening in Xiamen at the end of 2019[44]. - The company’s commercial real estate segment received multiple industry awards, enhancing its brand recognition and competitiveness[42]. Employee and Corporate Social Responsibility - The group employed a total of 10,854 employees as of December 31, 2019, with a total salary expenditure of approximately RMB 2.642 billion[77]. - Charitable donations and contributions for the year amounted to RMB 83,032,000, an increase from RMB 64,500,000 in 2018[86]. - The company has implemented various training programs to enhance employee skills and professional knowledge, reflecting a commitment to employee development[77]. - The company is focused on environmental protection and has integrated resource-saving measures into its operations[82].

Land Reserves and Acquisitions - As of June 30, 2019, the company has land reserves across 101 cities, totaling approximately 6.407 million square meters (equity before) [5]. - The company has a diversified land reserve strategy, with key projects in major cities such as Shanghai, Shenzhen, and Guangzhou [5][7]. - The group increased land reserves by 1,412 million square meters during the reporting period, with approximately 60% of acquisitions made through purchases, effectively reducing operational risks [22]. - The total land value has exceeded RMB 1,050 billion, with RMB 260 billion in the Guangdong-Hong Kong-Macao Greater Bay Area, supporting future sales growth [20]. - The company currently owns 301 projects across 101 cities, totaling 64.07 million square meters of quality land [39]. - The company’s land acquisition strategy emphasizes a prudent approach to balance development and risk control [39]. - The company’s land cost advantage is expected to support future profit margin improvements [39]. - The company acquired land for residential and commercial projects with a total land cost of RMB 49,554 million and a planned construction area of 14,124,878 square meters [46]. - The average floor price of newly acquired land reserves was RMB 5,581 per square meter, compared to an average land cost of RMB 5,446 per square meter as of June 30, 2019 [39]. Financial Performance - The group's revenue for the six months ended June 30, 2019, reached RMB 56.56 billion, a 32.9% increase from RMB 42.57 billion in the same period of 2018 [31]. - Property sales revenue for the same period was RMB 53.24 billion, accounting for 94.1% of total revenue, representing a 30.9% increase year-on-year [31]. - The average recognized sales price per square meter increased by 23.3% from RMB 12,740 in the first half of 2018 to RMB 15,713 in the first half of 2019 [31]. - The group reported a profit attributable to shareholders of RMB 5.105 billion for the first half of 2019, compared to RMB 4.271 billion in the first half of 2018 [60]. - Basic earnings per share for the first half of 2019 were RMB 155.17, compared to RMB 126.64 in the same period of 2018 [60]. - The company reported a net profit for the period of RMB 7,569,185 thousand, up from RMB 6,182,052 thousand in the previous year, marking an increase of approximately 22.4% [125]. - The company’s total revenue for the six months ended June 30, 2019, was RMB 56,564,070 thousand, an increase from RMB 42,570,925 thousand in the same period of 2018, representing a growth of approximately 33% [125]. - The company reported a capital expenditure of RMB 2,666,707 for the first half of 2019, which includes investments in property and equipment [164]. Debt and Financing - The group maintained a net debt ratio below 60% for the eighth consecutive year, demonstrating a solid cash flow management strategy [23]. - The financing cost was controlled at around 5.6%, providing a dual guarantee for high-quality growth [24]. - The group signed a four-year syndicated loan of USD 838 million and HKD 39.94 billion, with a competitive interest rate of Libor/Hibor + 2.98% [24]. - The company issued senior notes totaling USD 800,000,000 with a fixed interest rate of 8.375%, maturing on February 10, 2022 [199]. - The company redeemed senior notes totaling USD 550,000,000 early, paying a total redemption price of USD 573,161,951, which included 104.188% of the principal amount [199]. - The company issued long-term bonds totaling RMB 6,000,000,000 with a fixed annual interest rate of 3.90%, maturing on September 18, 2020 [199]. - The company reported a foreign exchange loss of RMB 243,604 thousand during the six months ended June 30, 2019 [195]. - The company’s total borrowings at the beginning of the year were RMB 109,131,766 thousand, which increased to RMB 115,465,689 thousand by June 30, 2019 [195]. Dividend and Shareholder Information - The company declared an interim dividend of 0.60 HKD per share [12]. - The interim dividend declared was HKD 0.60 per share, a 20% increase from HKD 0.50 per share in the previous year [29]. - The company awarded 5,683,969 shares under the share incentive plan during the six months ended June 30, 2019, with 4,113,131 shares vesting in the same period [99]. - As of June 30, 2019, the company's major shareholder, Mr. Xu Rongmao, holds 2,299,242,942 shares, representing approximately 69.643% of the issued share capital [100]. - The company has a share incentive plan that allows for the granting of shares up to 2% of the issued share capital as of the adoption date, which equates to 69,319,016 shares [99]. Market Strategy and Expansion - The company is focusing on market expansion in second and third-tier cities, where policies are becoming more favorable for homebuyers [16]. - The company is actively exploring new strategies for market expansion and product development, focusing on core urban areas and strategic city clusters [20]. - The company is actively involved in market expansion and strategic partnerships to drive growth in the real estate sector [96]. - The company is focusing on expanding its commercial real estate operations through its 58.92% stake in Shanghai Shimao, aiming to enhance its competitive edge in the market [50]. Operational Efficiency and Management - The company is committed to maintaining a strong financial position despite market fluctuations [16]. - The company is actively monitoring urban regulatory changes to adapt its strategies accordingly [16]. - The company has a robust pipeline of projects, ensuring a steady flow of revenue in the coming periods [16]. - The company has a strong management team with over 25 years of experience in financial management and internal auditing [91]. - The company’s board of directors includes independent non-executive directors with extensive experience in finance and management, enhancing corporate governance [94][95][96].