Financial Performance - Revenue from property sales for the six months ended June 30, 2022, was RMB 208,887,000, a significant increase from RMB 23,223,000 in the same period last year, representing a growth of 798%[5] - The gross profit for the same period was RMB 59,087,000, compared to RMB 1,398,000 in the previous year, indicating a substantial increase[5] - The total comprehensive income for the period was RMB 30,482,000, compared to a loss of RMB 13,707,000 in the previous year, marking a turnaround[5] - Basic earnings per share for the period was RMB 0.53, a significant improvement from a loss of RMB 0.07 per share in the same period last year[5] - The company reported a profit of RMB 30,951,000 for the six months ended June 30, 2022, compared to a loss of RMB 4,223,000 in the same period of 2021, indicating a significant turnaround in performance[41] Assets and Liabilities - Total assets as of June 30, 2022, were RMB 1,229,071,000, compared to RMB 1,331,222,000 as of December 31, 2021[7] - The net asset value increased to RMB 815,295,000 from RMB 784,910,000 as of December 31, 2021, reflecting a growth of 3.9%[8] - Current liabilities decreased to RMB 118,670,000 from RMB 148,323,000, indicating improved liquidity[7] - The total equity attributable to owners of the company increased to RMB 803,037,000 from RMB 772,086,000 as of December 31, 2021[8] - Total assets as of June 30, 2022, amounted to RMB 1,330,030,000, with total liabilities of RMB 517,735,000 and total equity of RMB 815,295,000[96] Cash Flow - The company reported a net cash position of RMB 251,513,000 as of June 30, 2022, compared to RMB 138,394,000 in the previous year[7] - The net cash used in operating activities for the six months ended June 30, 2022, was RMB 144,121,000, compared to RMB 25,062,000 for the same period in 2021[20] - The company had a net cash decrease of RMB 113,119,000 in cash and cash equivalents for the six months ended June 30, 2022[20] - The total cash and cash equivalents at the end of the period were RMB 138,394,000, down from RMB 157,622,000 at the end of the previous period[20] - The company’s financing activities generated a net cash inflow of RMB 25,095,000 for the six months ended June 30, 2022, compared to RMB 11,195,000 in the same period of 2021[20] Income and Expenses - The company reported a total income of RMB 1,398,000 from other income sources for the six months ended June 30, 2022, down from RMB 2,030,000 in the same period of 2021[33] - The income tax expense for the six months ended June 30, 2022, was RMB 13,707,000, compared to RMB 1,225,000 for the same period in 2021, indicating a substantial increase in tax obligations[34] - Sales expenses increased by 28.9% to RMB 4,198,000, mainly due to additional sales commissions related to the delivery of properties from the Tianxi Bay project[94] - Employee costs, including director remuneration, rose to RMB 4,835,000 for the six months ended June 30, 2022, compared to RMB 3,461,000 in the previous year, reflecting increased staffing or compensation[39] Investment Properties - Non-current assets included investment properties valued at RMB 97,330,000 as of June 30, 2022[7] - The fair value of investment properties decreased to RMB 97,330,000 as of June 30, 2022, down from RMB 105,071,000 at the end of 2021, indicating a decline in property valuations[45] - The total value of investment properties as of June 30, 2022, is RMB 1,009,200,000, an increase from RMB 951,827,000 as of December 31, 2021[57] - The expected return rate for investment properties is 4.3% as of June 30, 2022, consistent with the rate from December 31, 2021[54] - The average market rent per square meter is RMB 73 as of June 30, 2022, unchanged from December 31, 2021[54] Development and Commitments - The value of properties under development is RMB 249,247,000 as of June 30, 2022, up from RMB 128,389,000 as of December 31, 2021[58] - The company has unrecognized development property commitments totaling RMB 266,010,000 as of June 30, 2022, down from RMB 338,595,000 as of June 30, 2021[76] - Financial guarantees provided for mortgage financing to property buyers stood at RMB 409,666,000 as of June 30, 2022, compared to RMB 465,776,000 as of December 31, 2021[78] Shareholder Information - The company’s issued share capital as of June 30, 2022, was RMB 435,951,000, with 100,000,000 shares issued[75] - The company’s major shareholders include Fame Build Holdings Limited with 1,517,896,394 shares, representing approximately 26.00% of the issued share capital, and Talent Connect Investments Limited with 1,780,596,394 shares, representing approximately 30.50%[103][109] Compliance and Governance - The audit committee, composed entirely of independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six-month period ending June 30, 2022[114] - As of June 30, 2022, the company has adopted the standard code for directors' securities trading as per the listing rules, confirming compliance by all directors for the six-month period[102]

Project Development - The company focused on developing three new residential and commercial property projects in Xinyang, Henan Province, and Wugang, Hunan Province, with a total area of 300,000 square meters under development[9] - The Jiangsu Province project, Tianxi Bay, was fully completed in December 2021, contributing to the overall project completion rate of 98.4%[9] - The company has a project completion expectation of 80% for several ongoing projects scheduled for completion in 2023[12] Market Conditions - The company anticipates challenges in the real estate industry for 2022, emphasizing a cautious management approach to maintain a balance between growth, efficiency, and risk[9] - The central government is expected to increase efforts to stabilize economic growth and housing prices, which may positively impact the company's operations[9] - The total sales of commercial housing in China reached a record of RMB 18.2 trillion in 2021, reflecting a year-on-year growth of 4.8%[8] Financial Performance - Revenue for the year ended December 31, 2021, decreased by 78.0% to RMB 105,609,000 from RMB 480,024,000 for the year ended December 31, 2020, primarily due to a reduction in properties available for sale and delivery[22] - Gross profit fell by 74.3% to RMB 40,643,000, with a gross margin improvement from 33.0% to 38.5%, attributed to higher profit margins from the remaining properties of the Yanjiang International project[22] - Other income decreased by 42.2% to RMB 4,471,000, mainly due to reduced interest income from short-term financial products as the company decreased its subscriptions[23] - Administrative expenses increased by 15.0% to RMB 21,643,000, driven by additional administrative costs related to new property development projects[23] - Profit attributable to owners of the company dropped by 88.8% to RMB 11,121,000, reflecting the decline in revenue and gross profit from property development activities[24] Assets and Liabilities - As of December 31, 2021, total assets amounted to RMB 1,442,897,000, with cash and cash equivalents of RMB 263,090,000[26] - The current ratio as of December 31, 2021, was 2.18, down from 3.16 as of December 31, 2020[26] - The company had secured bank borrowings of RMB 40,000,000 as of December 31, 2021, compared to no borrowings the previous year[26] - As of December 31, 2021, the group pledged development properties valued at approximately RMB 128,389,000 as collateral for bank loans[46] Corporate Governance - The board of directors includes a total of seven members, with two independent non-executive directors eligible for re-election at the upcoming annual general meeting[49] - The board currently consists of all male members, with a commitment to appoint a female board member by December 31, 2024, to enhance gender diversity[92] - The board has maintained compliance with listing rules, ensuring at least three independent non-executive directors, constituting one-third of the board, with at least one possessing relevant accounting or financial management qualifications[94] - The board has established a diversity policy to ensure a balanced mix of skills, experience, and diverse perspectives among its members[92] Shareholder Communication - The company ensures effective communication with shareholders through announcements, circulars, and reports, and encourages inquiries via email or mail[162] - The company has reviewed the effectiveness of measures related to shareholder communication and considers them effective[163] Risk Management - The company’s risk management and internal control systems have been reviewed for effectiveness, providing reasonable assurance rather than absolute certainty[119] - The company has adopted an insider information policy to ensure timely and fair disclosure of material information to the public[119] Social Responsibility - The company is actively involved in various social roles and community organizations, enhancing its corporate social responsibility profile[170] - The group is committed to minimizing environmental impact and has implemented various measures for sustainable development in property projects[77]