Financial Performance - For the first half of 2024, the Group achieved a revenue of RMB 79.13 billion, representing a year-on-year growth of 8.4%[6] - The core net profit reached RMB 10.74 billion, a slight decrease of 4.7% compared to the previous year[6] - Recurring business revenue increased by 9.0% year-on-year, accounting for 25.3% of total revenue, an increase of 0.2 percentage points[6] - The core net profit from recurring business grew by 14.4% year-on-year, contributing 51.4% to total core profit, an increase of 8.6 percentage points[6] - The interim dividend per share is RMB 0.2, reflecting a year-on-year increase of 1.0%[6] - In 1H2024, the Group achieved total comprehensive revenue of RMB79.13 billion, a YoY increase of 8.4%[26] - The core net profit for the same period was RMB10.74 billion, reflecting a YoY decrease of 4.7%[26] - Recurring revenue increased by 9.0% YoY, accounting for 25.3% of total revenue, up by 0.2 percentage points YoY[26] - The core net profit of the recurring business rose by 14.4% YoY, with its profit contribution increasing by 8.6 percentage points YoY to 51.4%[26] Market and Economic Context - The national GDP of the PRC reached RMB 61.7 trillion in the first half of 2024, with a year-on-year growth of 5.0%[6] - National sales of residential properties amounted to RMB 4.7 trillion, showing a year-on-year decrease of 25.0%[6] - The total retail sales of consumer goods increased by 3.7% year-on-year, with service sales growing by 7.5%[6] - The overall performance of the Group outpaced the industry trend[6] Property and Rental Performance - In 1H2024, the Group's shopping mall rental income reached RMB 9.48 billion, a YoY increase of 9.7%[8] - The Group's 82 operating shopping malls achieved retail sales of RMB 91.62 billion, reflecting a YoY increase of 21.9%, with 69 malls ranking among the top three in their local markets[8] - The overall occupancy rate for the Group's office buildings was 75.0%, serving 120 Fortune 500 clients[8] - Revenue from the investment property business reached RMB 11.47 billion, up by 7.0% YoY[31] - Revenue from shopping malls was RMB 9.48 billion, representing a 9.7% YoY increase, with an occupancy rate of 97.3%, up by 1.1 percentage points YoY[31] Business Segments and Operations - CR Mixc Lifestyle achieved revenue of RMB 7.96 billion, a YoY increase of 17.1%, and core net profit of RMB 1.77 billion, a YoY increase of 24.2%[10] - The commercial management business maintained its industry-leading position, managing a total of 108 operating shopping malls[10] - The property management business expanded its managed area to 398 million square meters and contracted area to 446 million square meters[10] - The total number of MIXC STAR members exceeded 52.20 million, an increase of 13% compared to the end of last year[10] - The total amount of MIXC STAR points issued increased by 19% YoY to RMB 500 million, while the total amount of points redeemed increased by 21% YoY to RMB 340 million[10] Sales and Contracted Performance - In 1H2024, the Group achieved contracted sales of RMB124.70 billion, maintaining its industry ranking at fourth and top 5 market share in 20 cities[15] - Contracted sales in 1H2024 amounted to RMB124.70 billion, a decrease of 26.7% year-on-year, with contracted GFA down by 25.7% to 5.21 million square meters[41] - The Group's total contracted sales in the Shenzhen region were RMB16.02 billion, accounting for 12.8% of total contracted sales[42] - The East China region contributed RMB37.93 billion to contracted sales, representing 30.4% of the total[42] Financial Management and Costs - The Group's comprehensive financing cost was 3.24%, a decrease of 32 basis points from the beginning of the year, marking a historical low[17] - The Group's share of profits from investments in associates and joint ventures totaled RMB1.42 billion, a decrease of RMB0.53 billion YoY[30] - Income tax expenses increased by 16.3% YoY to RMB8.14 billion, with enterprise income tax expenses rising by 10.3% to RMB6.19 billion[30] - The Group's net interest-bearing debt-to-equity ratio was 33.6% as of June 30, 2024, an increase of 1.0 percentage point from 32.6% at the end of 2023[50] - The Group maintained a weighted average financing cost of approximately 3.24% as of June 30, 2024, down 32 basis points from 3.56% at the end of 2023[54] Corporate Governance and Compliance - The Company is committed to maintaining high standards of corporate governance and has adopted the Corporate Governance Code as its own[115] - The Company deviated from Code Provision C.2.1 of the Corporate Governance Code, as the roles of chairman and chief executive were not separated following the resignation of the President on September 28, 2023[115] - The Company has complied with the Corporate Governance Code provisions in force for the first half of 2024, except for the noted deviation[115] Dividend and Shareholder Information - The Company declared an interim dividend of RMB0.20 per share for the six months ended June 30, 2024, equivalent to HKD0.219 per share, compared to HKD0.216 per share in 2023[116] - The interim dividend will be payable on October 25, 2024, to shareholders listed on the register as of September 11, 2024[116] - Shareholders must submit completed dividend currency election forms by October 7, 2024, to receive dividends in RMB[118] Audit and Financial Reporting - The Company’s independent auditor, KPMG, reviewed the unaudited condensed consolidated financial information for the six months ended June 30, 2024, with no disagreements noted[116] - The interim financial report for China Resources Land Limited as of June 30, 2024, has been reviewed and found to comply with Hong Kong Accounting Standard 34[125] - The review was conducted by KPMG, ensuring the integrity of the financial reporting process[128] Investment Properties and Assets - The total carrying value of the Group's offices was RMB36.43 billion, accounting for 3.0% of total assets, with a total GFA of 1.36 million square meters, an increase of 7.7% YoY[31] - The total value of completed investment properties was RMB 195,889,424, while investment properties under construction amounted to RMB 58,786,868[177] - The Group measures its investment properties at fair value, with valuations conducted by independent and professionally qualified valuers at least every six months[179] Employee and Management Information - The Group had a total of 61,826 employees in mainland China and Hong Kong as of 30 June 2024[60] - Performance bonuses are granted on a discretionary basis, alongside other employee benefits including provident funds, insurance, and medical plans[60]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 34, representing a potential upside of 65.8% from the current price of HKD 21.0 [1][2]. Core Insights - The company experienced a 4.7% year-on-year decline in core net profit for H1 2024, with total revenue reaching RMB 79.1 billion, an 8.4% increase compared to the previous year. The development business revenue was RMB 59.1 billion, up 8.3%, while recurring business revenue grew by 9.0% to RMB 20 billion, accounting for 25.3% of total revenue [1][2]. - The company’s sales performance showed resilience despite a 26.7% decline in sales revenue to RMB 124.7 billion, with a 69% equity ratio. The average selling price decreased by 1.4% to RMB 23,930 per square meter, but the company maintained a strong market position, ranking among the top four in the industry [1][2]. - The recurring business's profit contribution increased to 51.4%, becoming a significant growth driver for the company. The shopping center segment saw a 21.9% increase in retail sales, with a 30% rise in rental income [1][2]. Financial Performance Summary - For H1 2024, the company reported a gross margin of 25.2%, down 1 percentage point year-on-year, primarily due to a 4.6 percentage point decline in the development business gross margin to 12.4%. The net profit attributable to shareholders decreased by 25% to RMB 10.2 billion [1][2]. - The company’s financial structure remains robust, with a cash-to-short-term debt ratio of 1.54 and a total interest-bearing debt ratio of 38.9%. The average financing cost decreased by 32 basis points to 3.24%, positioning the company among the lowest in the industry [1][2]. - The company’s asset management scale increased by 5.1% to RMB 449.1 billion, supporting its value release and business transformation in the evolving industry landscape [1][2].

Stock Data and Market Performance - The closing price of the stock on September 4th was HKD 20.65, with a 52-week price range of HKD 19.39-35.50 [1] - The total market capitalization is HKD 147.3 billion, with 7,131 million shares outstanding [1] - In H1 2024, the company reported revenue of RMB 79.13 billion, a YoY increase of 8.4%, but net profit attributable to shareholders decreased by 25.4% YoY to RMB 10.25 billion [1][7] - The gross profit margin was 22.3%, down 3.4 percentage points YoY, primarily due to lower margins in development and sales business [1][7] - As of June 2024, the company had cash and bank balances of RMB 118.33 billion, a 3.5% increase from the end of 2023 [1][7] Business Segments Performance Development and Sales Business - The company achieved contracted sales of RMB 124.7 billion in H1 2024, ranking fourth in the industry, with top-five market share in 20 cities [5][9] - The company focused on strategic investments in core cities and prime locations, acquiring multiple strategic projects [9] Commercial Property Business - Shopping center rental income reached RMB 9.48 billion in H1 2024, a 9.7% YoY increase [5][10] - Retail sales in 82 operating shopping centers totaled RMB 91.62 billion, up 21.9% YoY, with 69 centers ranking in the top three locally [5][10] - Six new shopping centers opened with a leasing rate of 97.8%, and two new shopping center sites were acquired in Beijing and Dalian [5][10] Light Asset Management Business - CR Mixc Lifestyle achieved revenue of RMB 7.96 billion in H1 2024, a 17.1% YoY increase, with core net profit of RMB 1.77 billion, up 24.2% YoY [3][10] - The company managed 108 shopping centers, including 13 luxury malls, and had a total managed area of 398 million square meters [3][10] - The Mixc Star membership program reached 52.2 million members, a 13% increase from the end of 2023 [3][10] Ecosystem Business - Urban construction business generated revenue of RMB 390 million, with 358 projects under management, ranking second in new government construction contracts [5][10] - Rental housing business achieved revenue of RMB 380 million, with 62 projects under management, ranking eighth in the industry [5][10] - CR Youchao REIT reported revenue of RMB 39.31 million, a 1.5% YoY increase, and EBITDA of RMB 24.6 million, up 4.3% YoY [5][10] Financial Forecasts and Valuation - The company is expected to achieve revenue of RMB 268.77 billion in 2024, with a net profit of RMB 26.54 billion [6][12] - The 2024 EPS is forecasted at RMB 3.72, with a PE valuation of 10-11x, implying a market cap range of HKD 289.9-318.9 billion and a fair value range of HKD 40.65-44.71 per share [5][12] - The gross profit margin is expected to be 22.15% in 2024, with a net profit margin of 9.87% [6][14] - ROE is projected to be 9.44% in 2024, with a net debt ratio of 25.25% [14]

Investment Rating - The report maintains a "Buy" rating for China Resources Land (01109.HK) with a target price of HKD 29.77, compared to the current price of HKD 21.05 [4]. Core Insights - Development profit margins are under pressure, but recurring business serves as a stable foundation. For the first half of 2024, the company achieved revenue of CNY 79.13 billion, up 8.4% year-on-year, while net profit attributable to shareholders was CNY 10.25 billion, down 25% [2][9]. - The sales structure has improved, with the top ten cities contributing over 60% of sales. The sales amount for the first half of 2024 was CNY 124.7 billion, down 27% year-on-year, with a sales price of CNY 24,000 per square meter, down 1% [2][16]. - Investment is focused on high-tier cities, with two new comprehensive projects acquired. The company spent CNY 25.6 billion on land acquisition in the first half of 2024, with a land acquisition ratio of 72% [2][19]. - Operating real estate shows stable improvement in operational efficiency. The income from investment properties was CNY 11.47 billion, up 7% year-on-year, with a total operating area of 12.59 million square meters, up 23.9% [2][21]. Summary by Sections Financial Performance - For the first half of 2024, the company reported total revenue of CNY 79.13 billion, with a core net profit of CNY 10.74 billion, reflecting a core net profit margin of 13.6% [2][9]. - The development business's gross profit margin was 12.4%, while the recurring business's gross profit margin was 71.5% [12][21]. Sales Analysis - The total sales amount for the first half of 2024 was CNY 124.7 billion, with a year-on-year decrease of 27%. The equity sales amount was CNY 86 billion, down 32% [2][16]. - The contribution from first-tier cities was 38%, and the top ten cities accounted for 65% of total sales [2][16]. Land Acquisition and Projects - The company acquired 11 projects in the first half of 2024, with a total land acquisition cost of CNY 25.6 billion [2][19]. - The static gross profit margin for land acquisition was 34.1%, slightly higher than the previous year [2][19]. Investment Properties - The income from investment properties was CNY 11.47 billion, with a gross profit margin of 71.5% [2][21]. - The retail sales in shopping centers reached CNY 91.6 billion, up 22% year-on-year, indicating strong performance despite rental pressure [2][21].

Investment Rating - The report maintains an "Accumulate" rating for China Resources Land (1109) [2][5]. Core Views - In the first half of 2024, the company experienced revenue growth without profit increase, with a gross margin still in a downward trend. The development and sales business faced temporary pressure, while the recurring income business showed steady improvement, contributing over 50% to core net profit [4][5]. Summary by Sections Financial Performance - In H1 2024, the company reported revenue of 79.13 billion RMB, a year-on-year increase of 8.4%, while net profit attributable to shareholders was 10.25 billion RMB, down 25.4% year-on-year. The gross margin decreased by 3.4 percentage points to 22.3% [5]. - The development and sales business generated revenue of 59.13 billion RMB, up 8.3% year-on-year, accounting for 74.7% of total revenue. The company expects to settle 166.12 billion RMB in the second half of the year, aiming for a total settlement revenue of 225.25 billion RMB for the year, a 6.2% increase year-on-year [5]. - The recurring income business saw revenue rise by 9% to 20 billion RMB, contributing 5.52 billion RMB to core net profit, a 14.4% increase year-on-year [5]. Business Segments - The gross margin for the development and sales business fell by 4.6 percentage points to 12.4%, while the operating real estate business's gross margin increased by 0.2 percentage points to 71.5% [5]. - The company maintained a strong market position, ranking fourth in sales amount with a 26.7% year-on-year decline to 124.7 billion RMB, while maintaining a top-five market share in 20 cities [5]. Future Outlook - The company has accumulated land reserves of 4.7712 million square meters, with a corresponding value of 1,141.71 billion RMB based on the average selling price of 24,000 RMB per square meter in the first half of the year, indicating ample future performance release potential [5]. - The financial health remains robust, with a comprehensive financing cost of 3.24% in H1 2024, down 32 basis points from the beginning of the year [5].

Investment Rating - The investment rating for China Resources Land (01109.HK) is "Buy" (maintained) [3]. Core Views - The company achieved a revenue of 79.13 billion yuan in H1 2024, representing a year-on-year growth of 8.4%. The development sales business contributed 59.13 billion yuan, growing by 8.3%, while recurring income reached 20 billion yuan, up 9.0%, accounting for 25.3% of total revenue [1][2]. - The company is positioned as a leader in domestic commercial operations, with its "Vientiane" shopping centers contributing significantly to performance growth, providing stable cash flow and supporting the main business [1]. - The overall gross profit margin for H1 2024 was 22.3%, with the development business margin under pressure at 12.4%, while the property business margin improved to 71.5% [1]. - The company maintained a strong sales ranking, achieving a contracted sales amount of 124.7 billion yuan, ranking fourth in the industry, with a year-on-year decline of 26.7%, which is less than the average decline of 39.5% among top 100 real estate companies [1][2]. - Financial management remains robust, with a total interest-bearing debt ratio of 38.9% and cash reserves increasing by 3.5% to 118.3 billion yuan, maintaining a net interest-bearing debt ratio of 33.6% [2]. - The establishment of dual REITs for long-term rental apartments and commercial properties supports the company's asset management platform, with an asset management scale of 449.1 billion yuan as of H1 2024 [2]. Summary by Sections Revenue and Growth - H1 2024 revenue reached 79.13 billion yuan, up 8.4% year-on-year, with development sales at 59.13 billion yuan (8.3% growth) and recurring income at 20 billion yuan (9.0% growth) [1]. Profitability - The overall gross profit margin was 22.3%, with the development business margin at 12.4% (down 4.6 basis points) and the property business margin at 71.5% (up 0.2 basis points) [1]. Sales Performance - Contracted sales amounted to 124.7 billion yuan, with a year-on-year decline of 26.7%, maintaining a fourth-place ranking in the industry [1][2]. Financial Health - The company reported a total interest-bearing debt ratio of 38.9% and cash reserves of 118.3 billion yuan, with a net interest-bearing debt ratio of 33.6% [2]. Asset Management - The dual REITs platform has been established, with an asset management scale of 449.1 billion yuan, facilitating the transition to a larger asset management business [2].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's recurring income showed steady growth, with a 9% YoY increase to RMB 20 billion, while core net profit grew by 14.4% YoY to RMB 5.5 billion [2] - The company's asset management scale reached RMB 449.1 billion, a 5.1% increase from the end of 2023 [3] - The company's contracted sales for the first half of 2024 were RMB 124.7 billion, maintaining its position as the fourth-largest in the industry [2] Financial Performance - The company achieved revenue of RMB 79.1 billion in the first half of 2024, an 8.4% YoY increase, with net profit attributable to shareholders and core net profit at RMB 10.3 billion and RMB 10.7 billion, respectively [2] - The company's weighted average financing cost decreased by 32 basis points to 3.24%, maintaining its position in the lowest tier of the industry [2] - The company's total interest-bearing debt ratio and net interest-bearing debt ratio decreased to 38.9% and 33.6%, respectively, both at low levels in the industry [2] Business Operations - The company's shopping centers achieved rental income of RMB 9.5 billion, a 9.7% YoY increase, with a retail sales growth of 21.9% YoY to RMB 91.6 billion [3] - The company plans to open approximately 10 new shopping centers in the second half of 2024, with the total number of operational shopping centers expected to reach 110 by the end of 2027 [3] - The company's office rental income decreased by 4.9% YoY to RMB 950 million, with an occupancy rate of 75% [3] Land Reserves and Development - The company acquired 11 new projects in the first half of 2024, adding 2.02 million square meters of land reserves, with 87% of the investment concentrated in first- and second-tier cities [2] - The company's total land reserves reached 56.99 million square meters, with 47.71 million square meters allocated for development and sales, of which over 70% are located in first- and second-tier cities [2] - The company's total salable resources for the second half of 2024 amounted to RMB 368.7 billion, with 85% located in first- and second-tier cities [2] Profit Forecast and Valuation - The company's revenue is expected to grow at a compound annual growth rate (CAGR) of 6% from 2024 to 2026, with net profit attributable to shareholders growing at a CAGR of 4% [4] - The company's EPS is forecasted to be RMB 4.40, RMB 4.56, RMB 4.75, and RMB 4.95 for 2023, 2024, 2025, and 2026, respectively [4] - The company's PE ratio is expected to be 5.87, 4.16, 4.01, and 4.11 for 2023, 2024, 2025, and 2026, respectively [4] Market Position and Strategy - The company maintained its position as the fourth-largest in the industry by sales scale, with a top-five market share in 20 major cities [2] - The company's sales in first-tier cities accounted for an 8 percentage point increase YoY [2] - The company's investment in first- and second-tier cities accounted for 87% of its total land acquisitions [2]

Investment Rating - The report maintains a "Buy" rating for China Resources Land (1109 HK) with a target price adjusted to HKD 24.94, indicating a potential upside of 19.3% from the current price of HKD 20.90 [2][8]. Core Insights - The company's operational real estate business shows stable growth, with property development revenue increasing by 8.3% year-on-year to RMB 59.1 billion in the first half of 2024, contributing to an overall revenue rise of 8.4% to RMB 79.1 billion [1][6]. - Despite a decline in gross profit margin by 3.4 percentage points to 22.3%, the company has maintained its dividend level, suggesting a commitment to shareholder returns [1][6]. - The leverage remains low with a net debt ratio of 33.6% as of June 2024, and the average financing cost has decreased to 3.24%, the lowest in the industry [1][6]. Financial Performance Summary - For the first half of 2024, the company reported a net profit of RMB 13.7 billion, a 25.4% decrease year-on-year, while core net profit fell by 4.7% to RMB 11.3 billion [1][6]. - The company plans to distribute an interim dividend of RMB 0.20 per share, reflecting a 1.0% increase year-on-year, with a payout ratio around 13% [1][6]. - The total asset management scale increased by 5.1% to RMB 449.1 billion compared to the end of 2023, indicating growth in its asset management segment [1][6]. Market Position and Outlook - The company’s contract sales for the first half of 2024 were RMB 124.7 billion, a decline of 26.7% year-on-year, with an average selling price of RMB 23,930 per square meter, down 1.4% [1][6]. - The company expects to have available resources of RMB 368.7 billion in the second half of 2024, estimating a sales conversion rate of 40-50% for the year [1][6]. - The operational real estate business is projected to maintain an annual growth rate of over 10% in the next three years, supported by the expansion of shopping centers from 82 to 110 by the end of 2027 [1][6].

2024 年 08 月 28 日 华润置地 (01109) ——核心业绩略降，经营性业务稳健发展 报告原因：有业绩公布需要点评 买入（维持）投资要点： ⚫ 24H1 核心净利润同比-5%、归母净利润同比-25%、略低于预期，经常性业务贡献核心利 | --- | --- | |------------------------|---------------------| | 市场数据： | 2024 年 08 月 28 日 | | 收盘价（港币） | 20.90 | | 恒生中国企业指数 | 6225.99 | | 52 周最高/最低（港币） | 37.50/20.35 | | H 股市值（亿港币） | 1,490.37 | | 流通 H 股（百万股） | 7,130.94 | | 汇率（人民币/港币） | 1.0956 | | | | 一年内股价与基准指数对比走势： -35% -15% 5% 25% 08/2809/2810/2811/2812/2801/2802/2803/2804/2805/2806/2807/28 HSCEI 华润置地 资料来源：Bloomberg 证券分析师 袁豪 A023052012 ...

Financial Performance - The consolidated revenue for the first half of 2024 was RMB 79.13 billion, representing an 8.4% year-over-year increase[3]. - The gross profit margin for the first half of 2024 was 22.3%, with the operating property business margin at 71.5%, up 0.2 percentage points year-over-year[3]. - The net profit attributable to shareholders for the first half of 2024 was RMB 10.25 billion, with core net profit at RMB 10.74 billion, of which regular core net profit was RMB 5.52 billion[3]. - The company reported a decrease in cash and cash equivalents to CNY 116,604,075 from CNY 112,675,092, a decline of 3.9%[9]. - The company’s total assets reached CNY 802,734,455, an increase from CNY 784,360,847 at the end of 2023, indicating a growth of 2.5%[10]. - The company’s total liabilities were CNY 586,904,882 as of June 30, 2024, compared to CNY 584,205,857 at the end of 2023, reflecting a marginal increase[10]. - The company’s equity attributable to shareholders was CNY 266,515,648, up from CNY 264,867,183 at the end of 2023, representing a growth of 0.6%[10]. - The company’s financial liabilities measured at fair value through profit or loss decreased from RMB 221,131 thousand to RMB 195,944 thousand, a reduction of approximately 11.4%[11]. - The company’s total current liabilities are not detailed in the provided documents, but the overall financial position reflects a stable trend in managing liabilities[11]. Dividends - The company declared an interim dividend of RMB 0.20 per share, a 1.0% increase from RMB 0.198 per share in the same period last year[4]. - The company declared an interim dividend of RMB 0.200 per share for the six months ended June 30, 2024, totaling RMB 1,426,188,000, compared to RMB 1,413,713,000 for the same period in 2023[23]. - The interim dividend for 2023 was HKD 0.216 per share, indicating a slight increase of approximately 1.4% year-over-year[77]. - Shareholders can choose to receive the interim dividend in RMB, with the payment set at RMB 0.20 per share[78]. - The exchange rate for the dividend payment is set at RMB 1.0 to HKD 1.0932[77]. - If shareholders do not submit the currency choice form by October 7, 2024, they will automatically receive the dividend in HKD[79]. Sales and Contracts - The contracted sales amount for the first half of 2024 was RMB 124.70 billion, with a contracted area of 5.21 million square meters[5]. - The company reported a signed amount of RMB 124.7 billion in the first half of 2024, maintaining its fourth position in the industry, with a focus on core cities and strategic projects[36]. - The company expects approximately RMB 166.12 billion of the unrecognized contracted sales of RMB 321.45 billion to be recognized in the second half of 2024[5]. - The recognized development business revenue for the first half of 2024 was RMB 59.1 billion, an increase of 8.3% year-on-year, with a recognized area of 3.45 million square meters, down 9.6% year-on-year[55]. Assets and Liabilities - As of June 30, 2024, the total land bank was approximately 56.99 million square meters, with an increase of 2.02 million square meters in the first half of 2024[5]. - The total borrowings as of June 30, 2024, were RMB 251.13 billion, with cash and bank balances of RMB 118.33 billion, resulting in a net gearing ratio of 33.6%[5]. - Non-current assets amounted to CNY 263,697,975 as of June 30, 2024, showing a slight increase from CNY 262,808,194 at the end of 2023[9]. - The company’s deferred tax assets were CNY 12,773,951, a decrease from CNY 13,979,382, reflecting a decline of 8.6%[9]. - The company’s total liabilities were CNY 586,904,882 as of June 30, 2024, compared to CNY 584,205,857 at the end of 2023, reflecting a marginal increase[10]. Operational Highlights - The operating revenue from light asset management business was RMB 5.89 billion, showing a significant year-over-year growth of 17.6%[3]. - The company managed 108 shopping centers during the period, including 13 luxury shopping centers, maintaining its leading position in the industry[32]. - The company’s shopping centers recorded retail sales of RMB 91.62 billion, marking a 21.9% year-on-year increase[31]. - The rental income from shopping centers reached RMB 9.48 billion, reflecting a 9.7% year-on-year growth[31]. - The overall rental rate for office buildings was 75.0%, with tenants primarily from finance, insurance, and IT sectors[31]. Taxation - The income tax expense for the six months ended June 30, 2024, was RMB 8,135,103 thousand, compared to RMB 6,993,573 thousand for the same period in 2023, representing an increase of approximately 16.3%[19]. - The corporate income tax rate for most subsidiaries in mainland China is 25% as of January 1, 2008[20]. - The company’s total income tax expense, including deferred tax, was RMB 8,135,103 thousand for the six months ended June 30, 2024, compared to RMB 6,993,573 thousand for the same period in 2023, indicating a growth of approximately 16.3%[19]. Corporate Governance - The company has adhered to corporate governance codes, with a noted deviation regarding the separation of the roles of Chairman and CEO[72]. - The company did not conduct any significant acquisitions or disposals of subsidiaries, joint ventures, or associates in the first half of 2024[75]. - There are no major investment or capital asset plans as of June 30, 2024[75]. - The audit committee has reviewed the interim financial report for the six months ended June 30, 2024, with no objections raised[76]. - The independent auditor's review report is included in the interim report to be sent to shareholders[76]. Future Outlook - The group plans to focus on cash flow creation, improving gross margin and ROIC, cost reduction, and inventory de-stocking as key management themes for the second half of the year[38]. - The group aims to transform into a "city operation business" and explore new development models in the real estate sector[39]. - The group is committed to advancing technology innovation to enhance business development and meet market demands[39].