申万宏源研究 上海市南京东路99号 | +86 21 2329 7818 www.swsresearch.com 简单金融 成就梦想 房地产 | 公司研究 逆境业绩稳增，优质发展典范 2024年03月26日 华润置地 (01109.HK) 买入 23 年核心净利润同比+3%、归母净利润同比+12%、符合预期，经常性业务贡献核心利润占比 34%。23年公司营业收入2,511亿元，同比+21.3%；归母净利润314亿元，同比+11.7%；核心 净利润278亿元，同比+2.9%，其中经常性业务贡献34.4%、同比+10.4pct；每股基本收益4.40 维持 元，同比+11.7%。地产结算收入2,121亿元，同比+20.4%；地产结算面积1,184万平，同比-4.0%。 毛利率、归母净利率和核心净利率分别为25.2%、12.5%和11.1%，同比分别-1.1pct、-1.1pct和 -2.0pct；地产结算毛利率20.7%，同比-2.3pct；三费费率为7.6%，同比+1.3pct，其中销售、管 市场数据：2024年03月26日 理、财务费率分别+0.7pct、+0.6pct、+0.0pct；投资收益23.6亿元，同 ...

Financial Performance - For the fiscal year ending December 31, 2023, the total revenue was RMB 251.14 billion, representing a year-on-year growth of 21.3%[2] - The net profit attributable to shareholders was RMB 31.37 billion, reflecting an 11.7% increase compared to the previous year[3] - The core net profit, excluding investment property valuation gains, was RMB 27.77 billion, a year-on-year increase of 2.9%[2] - The total comprehensive income for the year was CNY 37,596,247, up 14.0% from CNY 32,680,151 in the previous year[7] - The company's equity attributable to shareholders was CNY 31,604,881, reflecting a growth from CNY 28,161,565 year-over-year[7] - The total revenue for the year ended December 31, 2023, was CNY 266,121,752,000, with a significant contribution from external customers amounting to CNY 251,137,103,000[15] - The operating profit before tax was CNY 66,437,894,000, indicating strong profitability for the company[15] - The company achieved a total operating revenue of CNY 223,297,526,000, with significant contributions from various business segments[16] Dividends - The company proposed a final dividend of RMB 1.243 per share, leading to a total annual dividend of RMB 1.441 per share, a 2.9% increase year-on-year[4] - The interim dividend for 2023 was proposed at RMB 0.198 per share, compared to RMB 0.182 per share in 2022, marking an increase of 8.8%[25] - The proposed final dividend for 2023 is RMB 1.243 per share, totaling approximately RMB 8,863,758,000, based on the latest issued share count of 7,130,939,579 shares[25] Revenue Breakdown - The revenue from the development and sales business was RMB 212.08 billion, showing a year-on-year growth of 20.4%[2] - The recurring revenue from core operations was RMB 39.06 billion, representing a year-on-year growth of 26.4% and accounting for 15.6% of total revenue[2] - The revenue from rental income was CNY 16,033,159,000, contributing to the overall revenue stream[15] - The total revenue from external customers in the real estate segment was CNY 207,061,119,000, demonstrating strong market demand[16] - The operating revenue from shopping centers reached RMB 17.85 billion, marking a year-on-year increase of 29.7%[35] - The operating revenue from the agency operation business reached RMB 600 million, reflecting a year-on-year growth of 95.7%[38] Assets and Liabilities - The total assets as of December 31, 2023, amounted to CNY 784,360,847, compared to CNY 713,284,627 at the end of 2022, indicating a growth of 9.9%[8] - The total liabilities were CNY 584,205,857, an increase from CNY 527,256,053, marking a rise of 10.8%[9] - The company's cash and cash equivalents reached CNY 112,675,092, up from CNY 95,544,576, showing a growth of 18.0%[8] - The company's total equity increased to CNY 384,149,054 from CNY 341,707,050, representing a growth of 12.4%[9] - The company's long-term borrowings decreased to CNY 42,576,778 from CNY 52,336,890, a reduction of 18.0%[9] Debt and Financing - As of the end of 2023, the net debt-to-equity ratio decreased by 6.2 percentage points to 32.6%, with the weighted average cost of debt financing dropping by 19 basis points to 3.56%[4] - The group's total consolidated borrowings amounted to RMB 239.53 billion, with cash and bank deposits of RMB 114.34 billion, resulting in a net debt to equity ratio of 32.6%, down 6.2 percentage points from the end of 2022[68] - The group successfully raised nearly RMB 7 billion through the listing of its first consumer infrastructure REIT project, establishing a commercial REIT platform[36] Operational Highlights - The total contracted sales for the year amounted to RMB 307.03 billion, a year-on-year increase of 1.9%, with a contracted area of 13.07 million square meters[4] - The company added land reserves with a construction area of 13.25 million square meters, bringing total land reserves to approximately 62.5 million square meters by the end of 2023[4] - The company opened 10 new shopping centers in 2023, bringing the total number of operational shopping centers to 76 by year-end[55] - The company acquired 68 new projects during the year, with 92.8% of investments in first and second-tier cities[35] Taxation - The corporate income tax expense for the year ended December 31, 2023, was RMB 17,638,219,000, compared to RMB 10,688,929,000 for the year ended December 31, 2022, representing a 65.5% increase[18] - The total income tax expense, including deferred tax, for the year ended December 31, 2023, was RMB 29,134,131,000, compared to RMB 23,139,594,000 for the year ended December 31, 2022, reflecting a 25.8% increase[18] Corporate Governance - The company has adhered to corporate governance codes and maintained compliance with the relevant rules during the reporting period, with a noted exception regarding the separation of roles between the Chairman and CEO[77] - The audit committee, consisting of five independent non-executive directors and one non-executive director, has reviewed the annual performance for the year ending December 31, 2023[80] - The company's auditor, PwC, confirmed that the financial data disclosed in the preliminary announcement is consistent with the audited consolidated financial statements for the year ending December 31, 2023[81]

智通财经APP讯，华润置地(01109)发布公告，于2024年3月22日，Dragon Rider Development Limited(一家公司持有其全部发行股份45%的实益权益的公司)作为借款人(借款人)、本公司和与华润(集团)有限公司(华润集团)作为担保人，与特定金融机构作为贷款人、招商永隆银行(CMB Wing Lung Bank Limited)作为代理行，招商永隆银行(CMB Wing Lung Bank Limited)作为担保代理行，就上限为64.63576亿元整港币的定期贷款融资。该贷款融资自该融资协议签订之日起计为期十二个月。 ...

Core Viewpoint - China Resources Land has undergone a significant organizational restructuring, consolidating its regional divisions to enhance operational efficiency and resource allocation [1][3]. Group 1: Organizational Restructuring - The company has reduced its regional divisions from 7 to 5 and its regional companies from 28 to 20, merging the North China and Northeast regions into a new Northern region and eliminating the Central China region [1][3]. - The restructuring aims to streamline operations and empower regional companies by decentralizing resources and authority [3]. Group 2: Sales Performance - In the first half of 2023, the East China region had the highest contracted sales at 461 billion RMB, accounting for 27.1% of total sales, while the Northeast region had the lowest at 78 billion RMB, representing only 4.6% [1][2]. - For the entire year of 2022, the company reported a total contracted sales amount of 3,013 billion RMB, with the Northeast region again ranking last among the six mainland regions with 176 billion RMB, or 5.9% of total sales [2]. Group 3: Future Outlook - The company plans to select and promote a group of young talents into management and key positions, providing new development opportunities for employees [3]. - The restructuring is expected to enhance the company's competitiveness and market position, adapting better to the changing market environment [3].

Financial Performance - In the first half of 2023, the Group achieved a revenue of RMB72.97 billion, representing a 0.1% year-over-year growth, and a core net profit of RMB11.27 billion, showing a 10.9% year-over-year increase[19]. - The gross profit for the first half of 2023 was RMB18.72 billion, with a comprehensive gross profit margin of 25.7%, down by 1.2 percentage points YoY[43]. - The core net profit reached RMB11.27 billion, representing a YoY increase of 10.9%, driven by the rapid growth of investment property and asset-light management businesses[37]. - Profit for the period increased to RMB 16,059,227 thousand, compared to RMB 12,684,013 thousand in 2022, representing a growth of about 26.5%[165]. - Total comprehensive income for the period was RMB 16,431,302 thousand, compared to RMB 12,924,032 thousand in 2022, reflecting an increase of around 27.5%[167]. - The company reported finance costs of RMB (892,364) thousand, slightly improved from RMB (904,542) thousand in the previous year[165]. - The Group recognized a gain of RMB 3,732,355,000 on changes in the fair value of investment properties[198]. - Profit before taxation was reported at RMB 19,805,124,000, reflecting robust financial health[200]. Revenue Sources - The revenue from the investment property business reached RMB10.72 billion in the first half of 2023, representing a 41.0% YoY increase[52]. - Revenue from shopping malls was RMB8.64 billion, up 39.5% YoY, with an occupancy rate of 96.2%, slightly down by 0.2 percentage points YoY[52]. - The Development property business generated revenue of RMB 54,677,576,000, while the Investment property business contributed RMB 11,135,240,000[198]. - Revenue from contracts with customers recognized at a point in time amounted to RMB 43,659,379,000[200]. - Revenue recognized over time totaled RMB 15,706,054,000, contributing to a consolidated revenue of RMB 79,752,377,000[200]. Dividends and Shareholder Returns - The interim dividend is RMB0.198 per share, up 8.8% compared to the previous year[19]. - The board has declared an interim dividend of HKD0.216 per share for the six months ended 30 June 2023, an increase from HKD0.208 per share in 2022[145]. - Shareholders can elect to receive the interim dividend in RMB at an exchange rate of HKD1.0 to RMB0.9173, resulting in a payment of RMB0.198 per share if chosen[146]. - The dividend payment will be made on 27 October 2023, with the register of members closed from 14 September to 15 September 2023[145]. Operational Highlights - The Group's contracted sales value reached RMB170.24 billion, reflecting a 40.6% year-over-year growth, maintaining a top four industry ranking[21]. - The Group acquired 35 new projects, with 93% of investments in tier-one and tier-two cities, adding a total value of RMB227.0 billion in salable resources[21]. - The average occupancy rate for newly opened shopping centers was 95.7%, and the office rental rate increased by 2.6 percentage points to 81.8%, the highest level historically[20]. - The Group's hotel performance rebounded significantly, with room rates and occupancy rates returning to pre-pandemic levels[20]. - Approximately 5.9 million new members were added during the period, bringing the total number of premium members to nearly 40 million[26]. Debt and Financial Management - The Group's total interest-bearing debt ratio and net gearing ratio decreased to industry-low levels of 39.3% and 28.5%, respectively[30]. - As of June 30, 2023, the Group's total outstanding borrowings amounted to approximately RMB 231.0 billion, with cash and bank balances totaling approximately RMB 129.3 billion[63]. - The net interest-bearing debt-to-equity ratio was 28.5%, reduced by 10.3 percentage points from 38.8% at the end of 2022, among the lowest in the industry[63]. - The Group's weighted average financing cost was approximately 3.56% as of June 30, 2023, a decrease of 19 basis points from 3.75% at the end of 2022[64]. Corporate Governance and Compliance - The company has complied with all corporate governance code provisions during the six months ended June 30, 2023[138]. - The audit committee has reviewed the 2023 Interim Report, and the unaudited financial information has been reviewed by KPMG[143]. - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period, indicating stability in accounting practices[191]. Strategic Initiatives - The Group has initiated the construction of an asset management platform and is accelerating its transformation towards asset management business, supported by policies for public REITs[20]. - The company continues to pursue strategic expansions through joint ventures in key Chinese cities[95]. - The Group has been providing construction and decoration services and selling furniture and construction materials to members of the CRH Group[107].

Financial Performance - In the first half of 2023, the total revenue was RMB 72.97 billion, a slight increase of 0.1% year-on-year[3] - The operating revenue from property management business reached RMB 10.72 billion, growing by 41.0% year-on-year, while light asset management business revenue was RMB 5.01 billion, up by 37.6% year-on-year[3] - The net profit attributable to shareholders was RMB 13.74 billion, representing a year-on-year increase of 29.6%[3] - The core net profit, excluding investment property valuation gains, was RMB 11.27 billion, up by 10.9% year-on-year[3] - The earnings per share attributable to shareholders was RMB 1.93, reflecting a year-on-year growth of 29.6%[6] - Total revenue for the six months ended June 30, 2023, was RMB 79,962,454 thousand, compared to RMB 79,752,377 thousand for the same period in 2022, representing a slight increase of 0.26%[14] - The profit attributable to joint ventures and associates was RMB 1,950,256 thousand, contributing to a total categorized profit of RMB 15,969,782 thousand[14] - The company reported a pre-tax profit of RMB 23,052,800 thousand for the six months ended June 30, 2023[14] Dividends and Shareholder Returns - The company declared an interim dividend of RMB 0.198 per share, an increase of 8.8% compared to RMB 0.182 per share in the same period last year[4] - The interim dividend for the six months ending June 30, 2023, is set at HKD 0.216 per share, an increase from HKD 0.208 per share in 2022[68] - Shareholders can opt to receive the interim dividend in RMB at a rate of RMB 0.198 per share, based on the exchange rate of HKD 1.0 to RMB 0.9173[69] - The deadline for submitting the dividend currency choice form is October 9, 2023, at 4:30 PM[69] - The interim dividend will be paid on October 27, 2023, with no significant post-balance sheet events reported after June 30, 2023[70] Assets and Liabilities - As of June 30, 2023, total assets amounted to RMB 821,028,144 thousand, an increase from RMB 713,284,627 thousand as of December 31, 2022, representing a growth of approximately 15.1%[8] - Non-current assets include investment properties valued at RMB 253,546,947 thousand, up from RMB 237,885,277 thousand, indicating an increase of about 6.7%[8] - Current liabilities rose to RMB 622,906,943 thousand from RMB 527,256,053 thousand, reflecting an increase of approximately 18.1%[9] - The company reported a total contracted sales amount of RMB 170.24 billion, which is a year-on-year growth of 40.6%[31] - The company’s total liabilities, including accounts payable and other payables, were RMB 167.12 billion as of June 30, 2023, compared to RMB 162.83 billion at the end of the previous year[28] Cash Flow and Financing - The company’s cash and cash equivalents reached RMB 127,915,198 thousand, significantly higher than RMB 95,544,576 thousand reported at the end of 2022, marking an increase of around 33.7%[9] - The company raised a total of RMB 10 billion through short-term financing bonds and medium-term notes in the first half of 2023, with interest rates ranging from 2.16% to 3.39%[58][59] - The company has obtained a financing quota of RMB 56.4 billion through asset pledges, with a loan balance of RMB 34.4 billion[61] - The net interest-bearing debt to equity ratio is 28.5%, a decrease of 10.3 percentage points from 38.8% at the end of 2022, indicating a low leverage level in the industry[56] - The weighted average financing cost as of June 30, 2023, is approximately 3.56%, down 19 basis points from 3.75% at the end of 2022[57] Business Operations and Strategy - The company has reclassified its business segments into four main categories for better resource allocation and performance evaluation[13] - The company plans to continue investing in new product development and technology to enhance market competitiveness[14] - The company is exploring potential mergers and acquisitions to further expand its market presence[14] - The company added land reserves of 7.97 million square meters in the first half of 2023, bringing total land reserves to approximately 65.48 million square meters[4] - The company’s light asset management business generated revenue of RMB 5.01 billion, with property management covering 189 cities and a managed area of 380 million square meters, a 9.0% increase from the end of 2022[50] Market Performance - As of June 30, 2023, the company's market capitalization stood at HKD 236.75 billion, maintaining its position as the top player in the domestic real estate sector[31] - The group achieved a retail sales revenue of RMB 75.13 billion from its 67 operating shopping centers, reflecting a year-on-year growth of 38.9%[32] - The average occupancy rate for newly opened shopping centers in Beijing and Chongqing was 95.7%[32] - The rental housing occupancy rate was 96.4%, exceeding market expectations by 6 percentage points[33] Compliance and Governance - The financial report adheres to the Hong Kong Financial Reporting Standards, ensuring compliance with applicable disclosure requirements[11] - The company has adhered to all corporate governance codes as outlined in the listing rules during the six months ending June 30, 2023[65] - The company maintains credit ratings of BBB+ (stable outlook) from S&P, Baa1 (stable outlook) from Moody's, and BBB+ (stable outlook) from Fitch[60]

Financial Performance - The gross profit margin for 2022 was 26.2%[16] - Contracted sales in 2022 reached RMB 301.3 billion[16] - Total rental income for 2022 was RMB 17.0 billion, down from RMB 19.3 billion pre-rental relief[16] - Contracted sales for 2022 amounted to RMB 301,326 million, a decrease of 4.6% compared to RMB 315,755 million in 2021[53] - Gross profit for the year was RMB 54,291 million, down 5.1% from RMB 57,200 million in the previous year[53] - Net profit attributable to owners of the Company was RMB 28,092 million, reflecting a decline of 13.3% from RMB 32,401 million in 2021[53] - The consolidated revenue for the year was RMB207.06 billion, down 2.4% year-on-year, while core profit attributable to owners was RMB27.0 billion, an increase of 1.5% year-on-year[72] - The rental income from investment property business achieved a positive growth of 10.5% after excluding rental relief impacts, demonstrating stable operational capability[67] Operational Metrics - The number of malls in operation by the end of 2022 was 66, with retail sales amounting to RMB 113.7 billion[16] - In 2022, 13 new malls were opened, contributing 3.9% to total retail sales and 5.3% to total rental income[50] - The average occupancy rate for newly opened malls in 2022 was 91.8%[50] - The average operating profit margin, excluding rental relief impact, was 31.8%[50] - The occupancy rate for shopping malls was 96.2%, down 0.8 percentage points YoY[80][83] - The average occupancy rate for hotels was 41.7%, down 4.6 percentage points YoY, with hotel revenue at RMB1.39 billion, a decrease of 11.1%[82][85] Asset and Debt Management - Total assets increased by 13.8% to RMB 1,081,332 million, up from RMB 949,804 million in 2021[53] - Total debt rose by 16.5% to RMB 230,037 million, compared to RMB 197,440 million in the previous year[53] - The Group maintained a sector-low debt ratio and funding costs, staying in the green zone under the "three red lines" policy[64] - The Group's total debt outstanding was RMB230.0 billion, with cash and bank balances of RMB95.5 billion, resulting in a net interest-bearing debt to equity ratio of 38.8%, an increase of 8.4 percentage points from 30.4% at the end of 2021[110] Growth and Expansion Strategy - The company aims for sustainable growth and market expansion in Tier 1 and Tier 2 cities[22][24] - The Group aims to strengthen its market position through proactive M&A opportunities and a focus on high-quality development in key regions[69] - The Group's land bank strategy focuses on key cities such as Beijing, Shanghai, and Shenzhen, ensuring a solid foundation for sustainable growth[107] - The Group acquired 71 new projects, with 92% of total investment allocated to Tier-1 and Tier-2 cities, including premium commercial complexes in Shenzhen and Nanjing[59] Corporate Governance and Leadership - The Company has adopted the Corporate Governance Code and complied with its provisions from January 1, 2022, to December 31, 2022, with a noted deviation regarding the roles of Chairman and Chief Executive[158] - The Company emphasizes a corporate mission of "Better Quality Better Life" and values integrity, performance-driven, human-oriented, and win-win collaboration[160] - The Board composition includes a balance of executive and non-executive directors to maintain independence and effective judgment[165] - The Company has a strong leadership team with diverse educational backgrounds, including degrees from prestigious institutions such as Tsinghua University and Peking University[133] Employee and Management Structure - The total number of employees in Mainland China and Hong Kong was 55,311 as of December 31, 2022[121] - The management team has a combined experience of over 20 years in the real estate and corporate sectors, enhancing the Company's strategic capabilities[129] - The Company is focused on expanding its market presence and enhancing operational efficiency through strategic leadership appointments[132] Risk Management and Compliance - The Audit Committee monitors the integrity of the Company's financial statements and compliance with accounting standards[188] - The Company ensures that employees can confidentially raise concerns about financial reporting and internal control improprieties, with proper arrangements for independent investigations[191] - The Group's foreign exchange risk is well under control, with no significant impact expected from RMB exchange rate fluctuations on its financial position[120] Environmental, Social, and Governance (ESG) Initiatives - The Group's ESG rating was upgraded to A by MSCI, and it was recognized as an exemplary enterprise in corporate governance by the State-owned Assets Supervision and Administration Commission[65] - The Company is committed to corporate social responsibility, with members actively participating in relevant committees[127]

Financial Performance - The total revenue for the year 2022 was RMB 207.06 billion, a decrease of 2.4% year-on-year[2]. - The gross profit margin for 2022 was 26.2%, down from 27.0% in 2021[2]. - The core profit attributable to shareholders, excluding investment property revaluation gains, was RMB 27.00 billion, an increase of 1.5% year-on-year[2]. - The net profit for the year ended December 31, 2022, was CNY 32,369,761, a decrease of 13.6% compared to CNY 37,395,388 for the year ended December 31, 2021[6]. - The total comprehensive income for the year was CNY 32,680,151, down from CNY 37,076,325 in the previous year, reflecting a decline of approximately 12.9%[6]. - The profit attributable to equity holders of the company was RMB 50,357,232 thousand, compared to RMB 40,697,686 thousand in the previous year, reflecting a year-over-year increase of about 23.5%[19]. - The company reported a net profit before tax of RMB 60,365,758 thousand, reflecting strong operational performance[19]. - The net profit for the year ended December 31, 2022, was RMB 28,091,865,000, a decrease from RMB 32,401,239,000 in 2021, representing a decline of approximately 13.5%[26]. Revenue Breakdown - The total contracted sales amount reached RMB 301.33 billion, with an area of 12.33 million square meters settled during the year[2]. - For the year ending December 31, 2022, total revenue from property sales amounted to RMB 176,162,335, while property investment and management generated RMB 16,518,127[18]. - The hotel operations segment reported revenue of RMB 1,393,972, and construction and renovation services contributed RMB 29,223,092, leading to a total consolidated revenue of RMB 223,297,526[18]. - Revenue from external customers for property sales reached RMB 176,162,335, while property investment generated RMB 15,627,374[18]. - The company's revenue from sales of goods was CNY 495,498,250 in 2022, compared to CNY 402,563,432 in 2021, representing an increase of 23.0%[7]. Dividends and Shareholder Returns - The board proposed a final dividend of RMB 1.219 per share, resulting in a total annual dividend of RMB 1.401 per share, an increase of 1.5% year-on-year[3]. - The interim dividend for 2022 is proposed at RMB 0.182 per share, compared to RMB 0.173 per share in 2021, reflecting an increase of 5.2%[27]. - The final dividend for the year ended December 31, 2022, is proposed at RMB 1.219 per share, up from RMB 1.207 per share in 2021, indicating a growth of 1%[28]. Assets and Liabilities - The total land bank area increased by 10.95 million square meters, totaling 64.78 million square meters as of December 31, 2022[3]. - Non-current assets increased to CNY 368,047,274 as of December 31, 2022, compared to CNY 334,531,526 as of December 31, 2021, representing an increase of 10.0%[7]. - Current liabilities increased to CNY 527,256,053 in 2022, up from CNY 464,627,187 in 2021, indicating a rise of 13.4%[8]. - The company's total liabilities increased to RMB 140,858,316,000 in 2022 from RMB 131,692,790,000 in 2021, representing a growth of about 6.6%[33]. - The company's equity attributable to owners was CNY 244,047,069 in 2022, up from CNY 226,529,270 in 2021, showing an increase of 7.7%[8]. Financing and Debt Management - The company maintained cash and cash equivalents of RMB 97.5 billion, with a total interest-bearing debt ratio of 40.2%[3]. - The average financing cost at year-end was 3.75%, with an average debt maturity extended to 5.4 years[3]. - The group’s net interest-bearing debt to equity ratio is 38.8%, an increase of 8.4 percentage points from 30.4% at the end of 2021, while still remaining at a low level within the industry[65]. - The group raised a total of RMB 39.1 billion through various financing methods, including corporate bonds and medium-term notes, to support business development and reduce financing costs[67]. Operational Efficiency and Strategy - The company achieved significant improvements in operational efficiency, with residential project launch and delivery cycles leading the industry, showcasing a commitment to quality and timely execution[37]. - The company is focusing on technological innovation and digital transformation, achieving a leading position in operational digitization within the industry[37]. - The company plans to continue focusing on property development and management as key growth areas moving forward[16]. - The company has implemented a talent development strategy, including external recruitment and internal exchange programs, to enhance its workforce capabilities[38]. Market Position and Future Outlook - The company has improved its sales ranking to fourth in the development and sales business, solidifying its industry position[41]. - The company plans to focus on long-term rental and industrial REITs, which are expected to present new opportunities for value release in operational real estate[41]. - The company aims to enhance cash flow management and financial flexibility while maintaining the lowest debt ratio and financing costs in the industry[39]. - The company is actively exploring acquisition opportunities to strengthen and enhance its market position amid industry transformation[42].

Financial Performance - For the first half of 2022, the Group achieved a consolidated turnover of RMB 72.89 billion, with a net profit attributable to shareholders of RMB 10.60 billion and a core profit of RMB 10.16 billion, successfully meeting its half-year performance targets [7]. - The Group's contracted sales for the development property business reached RMB 121.04 billion, successfully accomplishing its half-year sales target [11]. - The Group's performance reflects resilience in the face of a challenging economic environment, demonstrating its commitment to stable growth and development [11]. - In the first half of 2022, the Group recorded a 26.6% YoY decrease in contracted sales to RMB121.04 billion and a 39.0% YoY decrease in contracted GFA to 5.87 million square meters [28]. - The Group's development property revenue decreased by 2.6% YoY to RMB59.37 billion, with a booked GFA of 5.13 million square meters, reflecting a 0.2% YoY decrease [31]. - Profit for the period attributable to owners of the Company was RMB 10,602,873 thousand, a decrease of 19.14% compared to RMB 13,125,377 thousand in the previous year [114]. - The profit for the period ended June 30, 2022, was RMB 10,602,873,000, compared to RMB 13,125,377,000 for the same period in 2021, indicating a decrease of approximately 19.2% [165]. Market Conditions - China's GDP grew by 2.5% year-on-year in the first half of 2022, despite challenges from a slowing global economy and domestic COVID-19 cases [10]. - The real estate market faced unprecedented challenges, with a significant decline in commercial housing sales and negative growth in real estate development investment compared to the previous year [11]. - The Chinese government implemented a series of pro-growth policies to stabilize the economy amid the pandemic [10]. - The real estate industry is expected to operate more smoothly and healthily in the second half of 2022 due to supportive government policies [21]. Strategic Focus - The Group will continue to focus on "cost reduction, quality improvement, and efficiency enhancement" while strategically investing in key cities and core regions [11]. - The Group's strategic focus will remain on key management themes to navigate industry dynamics effectively [11]. - The Group's strategy focuses on high-quality development and adjusting investment portfolios in response to market changes and competition [26]. - The Group aims to enhance operational efficiency and maintain steady growth in core net profit, laying a solid foundation for annual results [27]. - The Group emphasizes a strategy of urban focus and regional concentration to achieve quality scale growth [26]. Operational Highlights - In the first half of the year, the retail sales of the Group's shopping malls reached RMB54.11 billion, representing a 7.0% YoY growth, significantly outperforming the market average [12]. - The average occupancy rate of newly opened shopping malls was 88.6%, with six shopping malls opened as scheduled, including Wuhan Mixc and Fuzhou Mixc [12]. - The Group's office business recorded a revenue of RMB0.84 billion, down 10.9% YoY, but showed a 10.4% actual growth when excluding rental relief impacts [12]. - The hotel business generated revenue of RMB0.57 billion, a decrease of 22.7% YoY, due to ongoing pandemic impacts [16]. - The Group's eco-system elementary business amounted to RMB 7.60 billion, representing a YoY increase of 19.4% [17]. Financial Management - The Group's financial management policy maintains the industry-lowest gearing ratio and funding cost, while staying in the green zone under the "three red lines" policy [17]. - The Group's credit ratings are maintained at "BBB+/Stable", "Baa1/Stable", and "BBB+/Stable" by major rating agencies [17]. - As of June 30, 2022, the Group's total outstanding debt was RMB222.82 billion, with a cash and bank balance of RMB116.45 billion, resulting in a net interest-bearing debt to equity ratio of 34.6%, an increase of 4.2 percentage points from the end of 2021 [55]. - Approximately 26% of the total interest-bearing debt is due within one year, while the weighted average funding cost was maintained at a low level of approximately 3.78%, up 7 basis points from 3.71% at the end of 2021 [55]. - The Group successfully obtained ESG loans of approximately HKD 8.0 billion in the first half of the year [20]. Investment and Development - The Group acquired 24 new projects with attributable GFA of 2.90 million square meters, with 92% of investments in first- and second-tier cities [17]. - The total land bank of the Group is 66.14 million square meters, with attributable GFA of 47.30 million square meters, supporting development for the next 3 years or more [17]. - The Group plans to open seven new shopping malls in key cities including Shanghai and Shenzhen in the second half of 2022, alongside the flagship project Shenzhen Mixc Phase III [26]. - The Group's share of profits from investments in associates and joint ventures totaled RMB1.68 billion, an increase of 59.1% year-on-year [40]. Shareholder Information - The board declared an interim dividend of HKD0.208 per share for the year ending December 31, 2022, consistent with the previous year [106]. - Shareholders can elect to receive the interim dividend in RMB at an exchange rate of HKD1.0 to RMB0.8733, resulting in a dividend of RMB0.182 per share [107]. - The interim dividend will be payable on October 31, 2022, to shareholders listed on the register as of September 16, 2022 [106]. Changes in Management - There have been changes in the board of directors, with Mr. Li Xin appointed as Chairman and Mr. Wu Bingqi appointed as President [108].

Financial Performance - Contracted sales for 2021 reached RMB 315.8 billion, with a total contracted gross floor area (GFA) of 17.6 million square meters[10]. - The gross profit margin for 2021 was 27.0%, reflecting the company's operational efficiency[10]. - Total rental income in 2021 amounted to RMB 17.4 billion, indicating strong performance in the investment property sector[10]. - Retail sales from the group's shopping malls in 2021 were RMB 107.2 billion, showcasing robust consumer demand[10]. - The Group achieved a consolidated turnover of RMB 212.1 billion in 2021, representing an 18.1% year-on-year growth[39]. - Net profit attributable to shareholders reached RMB 32.4 billion, an increase of 8.7% year-on-year, while core net profit was RMB 26.6 billion, up 10.2% year-on-year[39]. - The Group's development property revenue for 2021 was RMB 183.86 billion, reflecting a 17.0% year-over-year growth, with a booked GFA of 14.76 million square meters, which is a 41.5% increase year-over-year[69]. - The gross profit margin for development property in 2021 was 23.7%[69]. - The Group's office rental income grew by 20% year-on-year to RMB 1.9 billion, focusing on core locations in first- and second-tier cities[42]. - Hotel revenue rebounded by 43.9% year-on-year to RMB 1.6 billion, although it has not yet returned to pre-pandemic levels[43]. Operational Efficiency - The average occupancy rate for newly opened malls in 2021 was 99%[32]. - The average operating profit margin for newly opened malls was not specified but indicates strong performance in the retail sector[32]. - The Group opened three new malls in 2021, contributing 3% to total retail sales and rental income[32]. - The total GFA of investment properties in operation was 13.8 million square meters, highlighting the company's extensive property portfolio[10]. - The Group opened 9 shopping malls as scheduled and acquired 12 new mall projects during the year[42]. - The total carry amount of the Group's shopping malls after asset valuation was RMB 166.42 billion, accounting for 17.5% of the Group's total assets[75]. - The total carry amount of the Group's offices after asset valuation was RMB 34.84 billion, accounting for 3.7% of the Group's total assets[75]. - The Group's investment property business continues to show strong growth, with significant revenue increases across shopping malls, offices, and hotels in 2021[74]. Debt and Financing - Total debt rose to RMB 197.4 billion, reflecting a 13.0% increase from RMB 174.7 billion in the previous year[38]. - Cash and bank balances increased by 21.6% to RMB 108.7 billion from RMB 89.5 billion in the previous year[38]. - As of December 31, 2021, the Group's total debt outstanding was RMB 197.4 billion, with a cash and bank balance of RMB 108.7 billion, resulting in a net interest-bearing debt to equity ratio of 30.4%[92]. - Approximately 28% of the total interest-bearing debt is due within one year, while the remaining is long-term debt, with a weighted average financing cost of 3.71%, down 37 basis points from 4.08% at the end of 2020[92][96]. - The Group raised a total of RMB 20.5 billion through corporate bonds, medium-term notes, and commercial mortgage-backed securities during the year to support future growth and reduce funding costs[93]. - The Group's credit ratings were maintained at BBB+/stable, Baa1/stable, and BBB+/stable by Standard and Poor's, Moody's, and Fitch respectively[96]. Strategic Initiatives - Future strategies include enhancing urban development and operation capabilities, as well as exploring opportunities for urban redevelopment[8]. - The company aims to leverage its asset-light business model to drive growth and improve operational efficiency[8]. - The Group plans to strengthen sales and cash flow management while leveraging financing advantages to seize investment opportunities in the real estate market[53]. - The Group aims to enhance its competitive edge in the mid-to-high-end retail market by expanding its presence in key commercial areas of core cities[56]. - The Group intends to explore long-term sustainable profit models and innovative financing platforms in response to increasing rental housing land supply[58]. - The Group is strategically positioned as an operator in city investment, development, and operation, focusing on enhancing investment quality in first- and second-tier cities[59]. Leadership and Governance - Mr. Wang Xiangming has been the Chairman of China Resources Group since December 2019, previously serving as Director and General Manager of China State Construction Engineering Corporation[101]. - Mr. Li Xin was appointed as President of the Company in December 2018, responsible for day-to-day operations, and also serves as Chairman of the Executive Committee[102]. - The Company has a strong leadership team with extensive experience in property and corporate management across various regions[104]. - The leadership team is committed to enhancing corporate social responsibility and governance practices within the Company[111]. - The Company is committed to maintaining high standards of corporate governance, complying with the Corporate Governance Code from January 1, 2021, to December 31, 2021[159]. Corporate Social Responsibility - The Group is committed to sustainable development and has established a dedicated team for dual-carbon goals[49]. - The company emphasizes the importance of good corporate governance practices for long-term stable development[159]. Board Composition and Meetings - As of December 31, 2021, the Board comprised 15 Directors, including 5 non-executive Directors, 5 executive Directors, and 5 independent non-executive Directors, with independent non-executive Directors representing one third of the Board[163][162]. - The Company has established a Board Diversity Policy, revised in December 2018, to enhance the diversity of the Board[165]. - The Company held seven board meetings and one annual general meeting (AGM) in 2021, with attendance records indicating full participation from several directors[172]. - The Board's composition includes a balanced structure of executive and non-executive Directors to ensure independence and effective decision-making[161]. Audit and Remuneration - The Audit Committee is responsible for monitoring the integrity of the Company's financial statements, including annual and interim reports[182]. - The Committee reviewed the Group's internal control system, risk assessment results, and internal audit activities during the year[186]. - The total remuneration for senior management was RMB 65,627.59 thousand, with contributions to retirement benefit schemes amounting to RMB 1,388.45 thousand[193]. - The Remuneration Committee held one meeting during the year to approve salary increases, bonuses, and the vesting plan of the mid-to-long term incentive scheme for executive Directors and senior management[191].