（於開曼群島註冊成立之有限公司） （股份代號：1321） 董事會會議日期 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該 等內容而引致的任何損失承擔任何責任。 China New City Group Limited 中國新城市集團有限公 司 中國新城市集團有限公司（「本公司」）董事會（「董事會」）宣佈，董事會會議將於2025年8月22日（星 期五）舉行，以（其中包括）考慮及批准本公司及其附屬公司截至2025年6月30日止六個月之未經審 核綜合財務報表以及考慮派付中期股息（如有）。 承董事會命 China New City Group Limited 中國新城市集團有限公司 主席 施中安 中華人民共和國，2025年8月1日 於本公告日期，董事會包括本公司執行董事施南路先生、金建榮先生及陳靜女士；本公司非執行 董事施中安先生；以及本公司獨立非執行董事須成發先生、林友耀先生及袁淵先生。 本公告乃根據香港聯合交易所有限公司證券上市規則第13.43條而作出。 ...

52周新低排行 智通财经APP获悉，截止8月1日收盘，有59只股票创52周新高，其中中证国际股权(02912)、中国新城市 (01321)、天润云(02167)创高率位于前3位，分别为144.83%、107.87%、43.79%。 52周新高排行 股票名称 收盘价 最高价 创高率 中证国际股权(02912) 0.058 0.071 144.83% 中国新城市(01321) 1.400 1.850 107.87% 天润云(02167) 6.510 7.520 43.79% 怡俊集团控股(02442) 1.920 2.350 38.24% 大悦城地产 (00207) 0.540 0.550 37.50% HOME CONTROL(01747) 3.810 3.870 25.65% PACIFIC LEGEND(08547) 0.255 0.265 22.69% 星亚控股(08293) 0.159 0.165 13.01% 瑞和数智(03680) 2.060 2.260 13.00% 联康生物科 技集团(00690) 0.150 0.160 11.11% 有线宽频(01097) 0.058 0.060 11.11% ...

Group 1 - The core point of the article is that China New City (01321) has seen its stock price surge over 100%, reaching a peak increase of over 150% during trading, attributed to its announcement of participating in the establishment of the "Hong Kong RWA Global Industry Alliance" [1] - The alliance will focus on digital transformation of assets in sectors such as real estate, green finance, and cross-border trade, leveraging technologies like blockchain, artificial intelligence, and the Internet of Things [1] - As of December 31, 2024, the group's investment properties are valued at approximately 4.337 billion RMB, indicating a significant asset base [1] Group 2 - The board has noted that the group's market value has long been below its net asset book value, suggesting that asset values are not fully reflected in the capital market [1] - With the increasing acceptance of digital currencies and decentralized finance globally, RWA tokenization is becoming a strategic component for financing needs and asset management [1] - The group aims to utilize the alliance's technological expertise and regulatory knowledge to explore RWA tokenization, providing a more objective fair value measurement for its assets and facilitating asset value release [1]

Group 1 - The company, China New City (01321), announced its participation as a co-founding member of the "Hong Kong Real World Assets Global Industry Alliance" aimed at promoting the digital transformation of real-world assets (RWA) [1] - The alliance's goals include integrating global resources and facilitating cross-industry collaboration among scholars, experts, and various institutions to support the growth of the RWA ecosystem [1] - The focus areas for the alliance will include blockchain, artificial intelligence, and Internet of Things technologies, particularly in the digital transformation of assets in real estate, green finance, and cross-border trade [1] Group 2 - As of December 31, 2024, the company's investment properties are valued at approximately 4.337 billion RMB [1] - The board has noted that the company's market value has long been below its net asset book value, indicating that asset values are not fully reflected in the capital market [1] - With the increasing acceptance of digital currencies and decentralized finance globally, RWA tokenization is becoming a strategic component for financing needs and asset management [1] Group 3 - The company aims to leverage the alliance's technical expertise, regulatory knowledge, and collaborative resources to explore RWA tokenization, which is intended to provide a more objective fair value measurement for the company's held assets [1] - The initiative is expected to facilitate the release of asset value [1]

Group 1 - The company announced its participation as a co-founding member of the "Hong Kong Real World Assets Global Industry Alliance" aimed at promoting the digital transformation of real-world assets (RWA) [1] - The alliance's goals include integrating global resources and facilitating cross-industry collaboration among scholars, experts, and various institutions to support the growth of the RWA ecosystem [1] - The focus areas for the alliance will include blockchain, artificial intelligence, and Internet of Things technologies, particularly in the realms of real estate, green finance, and cross-border trade asset digitization [1] Group 2 - As of December 31, 2024, the company's investment properties are valued at approximately 4.3369 billion RMB [1] - The board has noted that the company's market capitalization has long been below its net asset value, indicating that asset values are not fully reflected in the capital market [1] - With the increasing acceptance of digital currencies and decentralized finance globally, RWA tokenization is becoming a strategic component for financing needs and asset management [1] Group 3 - The company aims to leverage the alliance's technical expertise, regulatory knowledge, and collaborative resources to explore RWA tokenization [1] - The objective is to provide a more objective fair value measurement for the assets held by the company, thereby facilitating the release of asset value [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容產生或因依賴該等 內容而引致的任何損失承擔任何責任。 China New City Group Limited 中國新城市集團有限公 司 （於開曼群島註冊成立之有限公司） （股份代號：1321） 自願性公告 有關共同發起成立香港RWA全球產業聯盟 此公告乃中國新城市集團有限公司（「本公司」，連同其附屬公司統稱「本集團」）自願作出。 共同發起成立聯盟 本公司董事會（「董事會」）欣然宣佈，本公司於2025年7月30日正式作為聯合發起單位之一，參與共 同發起成立「香港RWA全球產業聯盟」（Hong Kong Real World Assets Global Industry Alliance，「聯 盟」）。 聯盟的成立旨在推動現實世界資產（「RWA」）的數字轉型，目標為整合全球資源，並促進學者、專 家及不同行業機構之間的跨界合作，為RWA生態體系的成長提供合規和有序的支持。預期聯盟將 （其中包括）(i)聚焦區塊鏈、人工智能及物聯網技術，重點突破房地產、綠色金融及跨 ...

Financial Performance - In 2024, the Group's revenue reached approximately RMB 4,104 million, a year-on-year increase of approximately 216.3%[12] - Gross profit for the year was approximately RMB 2,059 million, representing a year-on-year increase of approximately 459.4%[12] - Profit attributable to owners of the parent was approximately RMB 504 million, an increase of approximately 224.7% compared to a loss of approximately RMB 404 million in 2023[12] - For FY2024, the Group's consolidated revenue was approximately RMB4,103.8 million, representing a year-on-year increase of 216.3%[59] - Gross profit for FY2024 was approximately RMB2,059.2 million, reflecting a year-on-year increase of 459.4%, with a gross profit margin of approximately 50.2%, up by 21.8 percentage points compared to FY2023[59] - The turnaround from loss to profit in FY2024 was primarily due to revenue recognized from the International Office Centre (IOC) project, which demonstrated strong sales performance[60] - The profit attributable to the Group for FY2024 was approximately RMB 485,768,000, compared to a net loss of approximately RMB 425,133,000 for FY2023, driven by revenue from commercial property projects[96] Market Conditions - The real estate market in China showed a downward trend, but policy support increased significantly in 2024, leading to a temporary stabilization in the fourth quarter[16][17] - A series of government policies were introduced to stabilize the real estate market, including relaxed purchase restrictions and reduced mortgage rates[17] - The 2024 government work report emphasizes risk mitigation, adherence to baselines, and market stabilization, which supports the real estate sector's growth trajectory[64] Business Strategy - The Group deepened its "4+X" business layout, focusing on commercial property development, commercial operations, hotel management, and industrial investment[19] - The Group is well-prepared for future market recovery, maintaining a stable operating trend despite market pressures[19] - The Group's strategic focus includes the development of cultural tourism and low-altitude economy segments, which have become highlights of the year[35] - The Group is focusing on four major business segments: industrial property development, commercial operations, hotel management, and industrial investment, while diversifying into emerging industries[58] - The Group aims to enhance asset return and operational efficiency through digital technology and organizational optimization[46] - The Group's light-asset model is expected to drive scale expansion and optimize the business chain[46] Sales and Customer Engagement - For the year ended December 31, 2024, the Group recorded contracted sales amount of approximately RMB1,313 million, with a contracted sales area of approximately 69,727 sq.m. and an average price of contracted sales area of approximately RMB18,824 per sq.m.[22] - The annual customer flow exceeded 15 million, with Xiaoshan Zhong An Plaza's customer flow increasing by approximately 39% year-on-year and the Yuyao project increasing by approximately 11% year-on-year[23] - The Group's membership system saw an addition of 81,786 new members during the year, representing a year-on-year increase of approximately 78.4%[23] - Customer satisfaction is emphasized as a critical factor affecting profitability, with a dedicated sales team engaging with customers to understand their needs[129] Hotel Management - The hotel management segment recorded a revenue of approximately RMB225 million in 2024, representing a year-on-year decrease of approximately 12.9%, with an occupancy rate of approximately 63% and an average room price of RMB441[27] - Ningbo Bright Hotel achieved record highs in total revenue and operating profit, with an operating profit margin increasing to approximately 37%[27] - The Group added 4 new entrusted management projects in the hotel segment, forming a diversified product matrix covering high-end business hotels, resort hotels, and theme hotels[28] - The hotel operation revenue for FY2024 was approximately RMB224,586,000, a decrease of 12.9% from FY2023, with an occupancy rate dropping to approximately 63%[81] Cultural Tourism - The cultural tourism segment achieved over 100% investment attraction targets for projects like Dongsha Ancient Fishing Town and Shanlian Old Street, establishing a benchmark position in historical and cultural street operations in Eastern China[37] - The cultural tourism segment achieved an impressive annual customer flow of over 4 million, resulting in record revenue[41][42][45] Corporate Governance - The Board does not recommend the payment of any final dividend for FY2024, consistent with FY2023[132] - The Group aims to enhance corporate governance and management standards through effective cost management, risk management, and sustainable environmental practices[124] - The Group's corporate governance practices comply with the applicable code provisions contained in the Corporate Governance Code[140] - The roles of chairperson and chief executive officer were separated, with Mr. Shi Zhongan as chairperson and Mr. Shi Nanlu as chief executive officer, ensuring better corporate governance[159] Operational Efficiency - The Group optimized its debt structure and reduced financing costs to ensure a stable capital chain during market downturns[19] - The Group's operational strategy includes continuous cost reduction and investment return enhancement[46] - Selling and distribution expenses decreased to approximately RMB 147,582,000 for FY2024, representing a reduction of approximately RMB 24,397,000 or 14.2% compared to FY2023, attributed to effective cost control measures[92] - Administrative expenses for FY2024 were approximately RMB 120,407,000, a decrease of approximately RMB 50,200,000 or 29.4% compared to FY2023, also due to cost reduction strategies[93] Land and Property Development - The Group's land reserves totaled approximately 3,690,924 sq.m. as of December 31, 2024[49] - The International Office Center in Hangzhou has a gross floor area of 1,098,065 sq.m., indicating significant investment in commercial real estate[52] - The International Office Centre (IOC) project has a planned total GFA of approximately 798,795 sq.m., with construction ongoing in three phases[70] - The Long Ying Hui Jin Zuo project in Hangzhou has a total GFA of approximately 44,867 sq.m. and is expected to be completed in 2024, with pre-sales meeting expectations[71] - The Fashion Color City project in Hangzhou has a total GFA of approximately 78,261 sq.m. and was completed in 2023, with substantial sales achieved[69] Employee and Management - The Group employed 1,232 employees as of December 31, 2024, down from 1,256 employees as of December 31, 2023[123] - The Company emphasizes a governance structure that supports stability and prudent management, aligning with its operational activities and future development[146]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of RMB 4,103,756, representing a 216.3% increase compared to RMB 1,297,235 in 2023[3] - Gross profit for the same period was RMB 2,059,209, a significant increase of 459.4% from RMB 368,097 in 2023[3] - The company achieved a net profit of RMB 485,768, recovering from a loss of RMB 425,133 in the previous year, marking a 214.3% improvement[3] - Earnings per share (EPS) for the year was RMB 25.1 cents, compared to a loss of RMB 20.1 cents per share in 2023[3] - The company reported a total comprehensive income of RMB 500,471, recovering from a loss of RMB 470,056 in 2023[6] - The pre-tax profit for 2024 was RMB 1,130,382,000, compared to a loss of RMB 476,667,000 in 2023, indicating a significant turnaround[35] - The total tax expense for the year was RMB 644,614,000, compared to a tax benefit of RMB 51,534,000 in 2023[35] - Basic earnings per share for 2024 were RMB 0.25, recovering from a loss of RMB 0.20 per share in 2023[36][37] Assets and Liabilities - Total assets decreased slightly by 1.1% to RMB 13,385,727 from RMB 13,533,007 in 2023[3] - Net assets increased by 10.4% to RMB 5,342,134, up from RMB 4,840,839 in the previous year[3] - The company reported a total liability of RMB 8,043,593,000 as of December 31, 2024, down from RMB 8,692,168,000 in 2023, showing a reduction of about 7%[21][22] - Current liabilities decreased to RMB 5,055,477 from RMB 5,332,192 in the previous year, indicating improved liquidity[8] - Trade receivables at the end of 2024 amounted to RMB 61,081,000, down from RMB 70,013,000 in 2023, reflecting a decrease of about 12.8%[40] - Trade payables increased significantly to RMB 1,543,308,000 in 2024 from RMB 575,018,000 in 2023, an increase of approximately 168.3%[41] Revenue Segments - The group operates four reportable segments: commercial property development, property leasing, hotel operations, and other businesses[20] - The company reported a segment profit of RMB 1,776,220,000 in commercial property development for 2024, while the hotel operations segment incurred a loss of RMB 31,514,000[21] - Revenue from external customers in mainland China was RMB 4,103,008,000 for 2024, compared to RMB 1,281,033,000 in 2023, indicating a growth of about 220%[23] - The revenue from investment property operating leases increased to RMB 122,274,000 in 2024 from RMB 110,712,000 in 2023, reflecting a growth of approximately 10%[25] - Hotel operations recorded revenue of approximately RMB 224.6 million in FY2024, a decrease of about 12.9% due to a decline in hotel occupancy rates to approximately 63%[56] Cash Flow and Expenditures - The company’s cash and cash equivalents rose significantly to RMB 838,999 from RMB 181,155 in 2023[7] - Capital expenditures for the year were RMB 44,990,000, compared to RMB 70,899,000 in the previous year, reflecting a decrease of about 37%[21][27] - The group’s cash and cash equivalents totaled approximately RMB 886,087,000 as of December 31, 2024, compared to RMB 384,164,000 as of December 31, 2023[68] Market Position and Strategy - The company is primarily engaged in commercial property development, leasing, and hotel operations, with a focus on expanding its market presence[10] - The group has been recognized as one of the top ten commercial real estate operators in China, reflecting its strong market position[46] - The Chinese government's policies are expected to stabilize the real estate market, providing a more favorable financing environment for private and mixed-ownership real estate companies[48] - The group plans to continue its prudent management approach while exploring new development models to adapt to market changes[49] Corporate Governance and Compliance - The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), with all values reported in Renminbi (RMB) and adjusted to the nearest thousand units[11] - The consolidated financial statements include the financial statements of the company and its subsidiaries for the year ending December 31, 2024[12] - The group has adopted new and revised IFRS standards for the current year's financial statements, which have not had a significant financial impact[14] - The audit committee, composed entirely of independent non-executive directors, has reviewed the consolidated annual results for the fiscal year 2024[81] - The financial figures for the fiscal year 2024 have been agreed upon by the company's auditor, Ernst & Young, and are consistent with the consolidated financial statements[80] Employee and Stakeholder Relations - The company has implemented effective marketing strategies and plans to enhance product and service quality to strengthen its brand[75] - The company emphasizes investor relations management through various communication methods to convey its business strategies and operational status to stakeholders[75] - The company has adopted an employee stock option plan to incentivize and reward qualified participants contributing to its successful operations[76] - The group employed 1,232 staff as of December 31, 2024, a decrease from 1,256 staff as of December 31, 2023[74] Dividends and Shareholder Information - The group has no proposed final dividend for the year ending December 31, 2024, consistent with 2023[38] - The company will not recommend any final dividend for the fiscal year 2024, consistent with the previous fiscal year[79] - The company will hold its annual general meeting on June 5, 2025, with relevant notices to be published on its website and the stock exchange[85]

[Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The company achieved substantial growth in revenue, gross profit, and net profit for the period, reversing previous losses, with a slight decrease in total assets but an increase in net assets Financial Highlights | Metric | Six Months Ended June 30, 2024 (RMB thousands) | Six Months Ended June 30, 2023 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,921,774 | 818,559 | 256.9% | | Gross Profit | 1,579,596 | 229,021 | 589.7% | | Profit/(Loss) for the Period | 347,502 | (71,996) | 582.7% | | Profit/(Loss) Attributable to Owners of the Parent | 377,789 | (66,669) | 666.7% | | Earnings/(Loss) Per Share Attributable to Owners of the Parent - Basic and Diluted | RMB 18.79 cents | RMB (3.32) cents | - | | Metric | As at June 30, 2024 (RMB thousands) | As at December 31, 2023 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 13,421,184 | 13,533,007 | -0.8% | | Net Assets | 5,204,361 | 4,840,839 | 7.5% | | Net Asset Value Per Share | RMB 2.59 yuan | RMB 2.41 yuan | 7.5% | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the interim condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2024, the company's revenue significantly increased by 256.9% to **RMB 2.922 billion**, gross profit grew by 589.7% to **RMB 1.580 billion**, and it achieved a profit of **RMB 348 million**, reversing the loss from the prior year period Interim Condensed Consolidated Statement of Profit or Loss | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 2,921,774 | 818,559 | | Cost of Sales | (1,342,178) | (589,538) | | Gross Profit | 1,579,596 | 229,021 | | Other Income and Gains | 25,876 | 5,782 | | Selling and Distribution Expenses | (66,588) | (77,630) | | Administrative Expenses | (67,991) | (92,725) | | Other Expenses | (5,833) | (4,038) | | Finance Costs | (47,317) | (47,185) | | Share of Profits and Losses of a Joint Venture | (4,485) | (427) | | Fair Value Change of Investment Properties | (535,900) | (29,911) | | Profit/(Loss) Before Tax | 877,358 | (17,113) | | Income Tax Expense | (529,856) | (54,883) | | Profit/(Loss) for the Period | 347,502 | (71,996) | | Profit/(Loss) Attributable to Owners of the Parent | 377,789 | (66,669) | | Profit/(Loss) Attributable to Non-controlling Interests | (30,287) | (5,327) | | Basic and Diluted Earnings/(Loss) Per Share Attributable to Owners of the Parent | RMB 18.79 cents | RMB (3.32) cents | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The company's total comprehensive income for the period was **RMB 363 million**, a significant improvement from the **RMB 20.31 million** loss in the prior year, primarily due to a substantial increase in profit for the period, despite some impact from exchange differences and fair value changes in equity investments Interim Condensed Consolidated Statement of Comprehensive Income | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) for the Period | 347,502 | (71,996) | | Exchange Differences Arising from Translation of Financial Statements of Overseas Subsidiaries | 10,812 | 45,784 | | Exchange Differences Arising from Translation of Overseas Operations | 5,690 | – | | Equity Investments Designated at Fair Value Through Other Comprehensive Income: Fair Value Change | (1,982) | 7,871 | | Income Tax Effect | 496 | (1,968) | | Other Comprehensive Income/(Loss) for the Period, Net of Tax | 15,016 | 51,687 | | Total Comprehensive Income/(Loss) for the Period | 362,518 | (20,309) | | Attributable to Owners of the Parent | 392,805 | (14,982) | | Attributable to Non-controlling Interests | (30,287) | (5,327) | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As at June 30, 2024, the company's total assets slightly decreased by 0.8% to **RMB 13.421 billion**, while net assets increased by 7.5% to **RMB 5.204 billion**, with net current assets turning positive from a negative value at the end of last year, indicating improved liquidity Interim Condensed Consolidated Statement of Financial Position | Metric | As at June 30, 2024 (RMB thousands) | As at December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | **ASSETS** | | | | Total Non-current Assets | 8,402,320 | 9,047,360 | | Total Current Assets | 5,018,864 | 4,485,647 | | Total Assets | 13,421,184 | 13,533,007 | | **LIABILITIES** | | | | Total Current Liabilities | 4,864,982 | 5,332,192 | | Total Non-current Liabilities | 3,351,841 | 3,359,976 | | **EQUITY** | | | | Equity Attributable to Owners of the Parent | 5,139,691 | 4,746,886 | | Non-controlling Interests | 64,670 | 93,953 | | Total Equity | 5,204,361 | 4,840,839 | | Net Current Assets | 153,882 | (846,545) | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section provides detailed notes to the interim condensed consolidated financial information, covering company details, accounting policies, segment information, and specific financial line items [Company Information](index=6&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) China New City Commercial Development Limited, an investment holding company incorporated in the Cayman Islands, primarily engages in commercial property development, leasing, and hotel operations, and is a member of ZhongAn Group Limited, with All Good Management Limited as its ultimate holding company - The Company was incorporated in the Cayman Islands as an exempted company with limited liability on **July 2, 2013**[6](index=6&type=chunk) - The Group is principally engaged in **commercial property development, property leasing, and hotel operations**[6](index=6&type=chunk) - The ultimate holding company of the Company is **All Good Management Limited**[6](index=6&type=chunk) [Basis of Preparation and Accounting Policies](index=6&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and should be read in conjunction with the 2023 annual consolidated financial statements, with no significant financial impact from new or revised IFRSs adopted for the period [Basis of Preparation](index=6&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) - The interim condensed consolidated financial information has been prepared in accordance with **International Accounting Standard 34 Interim Financial Reporting** issued by the International Accounting Standards Board[7](index=7&type=chunk) - The financial statements are presented in **RMB** and adjusted to the nearest thousand[7](index=7&type=chunk) [Changes in Accounting Policies and Disclosures](index=6&type=section&id=%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E5%8F%8A%E6%8A%AB%E9%9C%B2%E7%9A%84%E8%AE%8A%E5%8B%95) - The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group’s annual financial information for the year ended December 31, 2023, except for the adoption of new and revised International Financial Reporting Standards for the current period[8](index=8&type=chunk) - The new and revised standards have **no significant financial impact** on these financial statements[8](index=8&type=chunk) [Operating Segment Information](index=7&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates four reportable segments: commercial property development, property leasing, hotel operations, and other services; in the first half of 2024, commercial property development contributed the most to revenue and results, while property leasing and hotel operations segments reported losses, with revenue primarily from Mainland China - The Group has four reportable operating segments: **commercial property development, property leasing, hotel operations, and "others"** (including project management and other businesses)[9](index=9&type=chunk) Segment Revenue and Results for H1 2024 | Segment | Sales to External Customers (RMB thousands) | Segment Results (RMB thousands) | | :--- | :--- | :--- | | Commercial Property Development | 2,723,530 | 1,403,421 | | Property Leasing | 48,646 | (426,319) | | Hotel Operations | 112,651 | (30,498) | | Other Services | 36,947 | (26,026) | | **Total** | **2,921,774** | **920,578** | Geographical Revenue for H1 2024 | Region | Revenue (RMB thousands) | | :--- | :--- | | Mainland China | 2,921,774 | | Others | – | | **Total** | **2,921,774** | - No sales to a single customer or group of customers under common control accounted for **10% or more** of the Group's revenue for the six months ended June 30, 2024 and 2023[17](index=17&type=chunk) [Revenue, Other Income and Gains](index=12&type=section&id=%E6%94%B6%E5%85%A5%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Total revenue for the period reached **RMB 2.922 billion**, primarily driven by property sales, with significant contributions from International Office Center (IOC) A2 and Mingcai City; other income and gains surged by **347.5%** year-on-year, mainly due to gains from disposal of right-of-use assets, exchange gains, compensation for lease termination, and disposal of subsidiaries Revenue Sources Analysis | Revenue Type | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Revenue from Contracts with Customers | 2,873,128 | 757,977 | | Gross Rental Income from Operating Leases of Investment Properties | 48,646 | 60,582 | | **Total** | **2,921,774** | **818,559** | Revenue from Contracts with Customers by Type of Goods or Services (2024) | Type of Goods or Services | Commercial Property Development (RMB thousands) | Hotel Operations (RMB thousands) | Other Services (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Property Sales | 2,723,530 | – | – | 2,723,530 | | Hotel Operations Revenue | – | 112,651 | – | 112,651 | | Other Services | – | – | 36,947 | 36,947 | | **Total** | **2,723,530** | **112,651** | **36,947** | **2,873,128** | Other Income and Gains | Item | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Subsidy Income | 80 | 477 | | Interest Income | 4,097 | 3,411 | | Other Income | 4,137 | 1,658 | | Gain on Disposal of Property and Equipment Items | 576 | – | | Compensation for Lease Termination | 2,876 | – | | Gain on Disposal of Subsidiaries | 2,863 | – | | Gain on Disposal of Right-of-Use Asset Items | 5,918 | – | | Exchange Gain | 5,329 | 236 | | **Total** | **25,876** | **5,782** | [Profit/(Loss) Before Tax](index=14&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4%EF%BC%8F%E虧%E6%90%8D) Profit before tax for the period was **RMB 877 million**, a significant improvement from the loss in the prior year, with major costs including cost of properties sold, depreciation of property and equipment, and staff costs, while fair value changes in investment properties resulted in a substantial loss Components of Profit/(Loss) Before Tax | Item | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Cost of Properties Sold | 1,217,435 | 429,479 | | Depreciation of Property and Equipment | 62,147 | 47,104 | | Depreciation of Right-of-Use Assets | 6,182 | 15,866 | | Staff Costs | 49,995 | 71,910 | | Fair Value Change of Investment Properties | 535,900 | 29,911 | | Impairment of Investment in a Joint Venture | 5,626 | – | | Exchange Gain | (5,329) | 236 | | Gain on Disposal of Right-of-Use Asset Items | (5,918) | – | | Gain on Disposal of Subsidiaries | (2,863) | – | | Compensation for Lease Termination | (2,876) | – | | (Gain)/Loss on Disposal of Property and Equipment Items | (576) | 197 | [Income Tax Expense](index=15&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Total income tax expense for the period was **RMB 530 million**, a substantial increase from the prior year, primarily due to significant growth in PRC income tax and land appreciation tax, reflecting the company's improved profitability - PRC income tax has been provided at the applicable income tax rate of **25%** on the assessable profits of the Group’s subsidiaries in Mainland China[22](index=22&type=chunk) - PRC Land Appreciation Tax is levied at progressive rates ranging from **30% to 60%** on the appreciation of land value[22](index=22&type=chunk) Components of Income Tax Expense | Item | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | PRC Income Tax for the Period | 295,642 | 607 | | PRC Land Appreciation Tax for the Period | 428,946 | 62,134 | | Deferred Tax | (194,732) | (7,858) | | **Total Tax Expense for the Period** | **529,856** | **54,883** | [Earnings/(Loss) Per Share Attributable to Owners of the Parent](index=15&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E8%82%A1%E6%AC%8A%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%EF%BC%8F%EF%BC%88%E虧%E6%90%8D%EF%BC%89) Basic earnings per share attributable to owners of the parent for the period was **RMB 18.79 cents**, a significant improvement from the **RMB 3.32 cents** loss per share in the prior year, primarily due to the turnaround to profit for the period Earnings/(Loss) Per Share Calculation | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Owners of the Parent | 377,789 | (66,669) | | Weighted Average Number of Ordinary Shares in Issue for the Period (shares) | 2,010,768,000 | 2,010,768,000 | | Basic Earnings/(Loss) Per Share | RMB 18.79 cents | RMB (3.32) cents | - The Group had **no potentially dilutive ordinary shares** in issue for the period ended June 30, 2024[24](index=24&type=chunk) [Dividends](index=16&type=section&id=%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the prior year period - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2024[25](index=25&type=chunk) [Trade and Other Receivables and Payables](index=16&type=section&id=%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE%E5%8F%8A%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE) As at June 30, 2024, trade receivables totaled **RMB 81.425 million** and trade payables amounted to **RMB 2.085 billion**, with the majority of trade payables due within six months Aging Analysis of Trade Receivables | Aging | As at June 30, 2024 (RMB thousands) | As at December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 77,681 | 67,535 | | Over 6 months but within 1 year | 3,744 | 2,478 | | **Total** | **81,425** | **70,013** | Aging Analysis of Trade Payables | Aging | As at June 30, 2024 (RMB thousands) | As at December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 1,931,508 | 482,634 | | Over 6 months but within 1 year | 68,027 | 75,001 | | Over 1 year | 85,495 | 17,383 | | **Total** | **2,085,030** | **575,018** | [Commitments](index=16&type=section&id=%E6%89%BF%E6%93%94) As at June 30, 2024, the Group's contracted but unprovided commitments for property development expenditures were **RMB 290 million**, a significant decrease from the end of last year; additionally, the company has a payment commitment of approximately **RMB 110 million** arising from a settlement agreement for the acquisition of Xin Nong Du equity Property Development Expenditure Commitments | Item | As at June 30, 2024 (RMB thousands) | As at December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Properties Under Development | 290,457 | 1,497,185 | - The Company entered into a settlement deed with the vendor to pay **RMB 210,000,000** to the vendor for the acquisition of a 22.65% equity interest in Zhejiang Xin Nong Du Holdings Group Co, Ltd by June 30, 2025[28](index=28&type=chunk) - As at June 30, 2024, the Company had paid **RMB 100,000,000** for the aforementioned settlement deed and had a payment commitment of approximately **RMB 110,000,000**[28](index=28&type=chunk) [Contingent Liabilities](index=17&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As at June 30, 2024, the Group's contingent liabilities primarily consisted of bank guarantees for mortgage loans granted to property purchasers, amounting to approximately **RMB 374 million**; the directors believe that the net realizable value of the related properties is sufficient to cover potential defaults, thus no provision has been made - The Group provides guarantees for mortgage loans granted by certain banks to purchasers of the Group’s properties[29](index=29&type=chunk) - The Group’s guarantees commence from the date of grant of the relevant mortgage loans and cease upon the purchasers entering into mortgage agreements[29](index=29&type=chunk) Bank Guarantee Amount | Item | As at June 30, 2024 (RMB thousands) | As at December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Mortgage Loans Granted to Property Purchasers of the Group | 374,392 | 363,960 | [Management Discussion and Analysis](index=18&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) Management discusses the group's business review, strategic outlook, project progress, sales performance, operational segments, and financial position for the period [Overview](index=18&type=section&id=%E6%A6%82%E8%A6%BD) China New City Group is a large enterprise integrating commercial development and operations, hotel management, film and television, education, and cultural tourism, possessing leading commercial real estate comprehensive operational capabilities in the Yangtze River Delta region and having received multiple industry awards - The Group is a large enterprise integrating **commercial development and operations, hotel management, film and television, education, and cultural tourism**[31](index=31&type=chunk) - The Group has developed into an **excellent integrated commercial property operator** in the Yangtze River Delta region[31](index=31&type=chunk) - It has been successively rated as one of the **"Top 10 Commercial Property Operators in China"** and **"Top 100 Commercial Property Enterprises in China"**[31](index=31&type=chunk) [Business Review](index=18&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group focuses on four core business segments: industrial property development, commercial operations, hotel management, and industrial investment, while diversifying into emerging industries to create strong synergies; for the period, consolidated revenue reached **RMB 2.922 billion**, a **256.9%** year-on-year increase, with gross profit of **RMB 1.58 billion**, a **589.7%** year-on-year increase, and a gross profit margin of **54.1%** - The Group focuses on **industrial property development, commercial operations, hotel management, and industrial investment** as its four core business segments, while also diversifying into other emerging industries such as industrial services, rural cultural tourism, smart agricultural wholesale, film and television education, and digital health[32](index=32&type=chunk) Key Financial Performance for the Period | Metric | Amount (RMB) | Year-on-year growth (%) | | :--- | :--- | :--- | | Consolidated Revenue | 2.922 billion yuan | 256.9% | | Gross Profit | 1.58 billion yuan | 589.7% | | Gross Profit Margin | 54.1% | Increased by 26.1% | | Total Equity (June 30, 2024) | 5.177 billion yuan | - | | Cash Book Value (June 30, 2024) | 224 million yuan | - | [Policies and Outlook](index=18&type=section&id=%E6%94%BF%E7%AD%96%E8%88%87%E5%B1%95%E6%9C%9B) China's real estate policy bottom has been established, with the central government committed to supporting reasonable financing needs of property developers, anticipating a more relaxed financing environment for private and mixed-ownership developers; the Group will maintain prudent operations, financial stability, enhance business innovation, advance urban renewal projects, and explore new development models in the existing market - China's 2024 government report clearly defined three major policy guidelines for real estate: **resolving risks, maintaining bottom lines, and stabilizing the market**, signaling that the policy bottom has been established[33](index=33&type=chunk) - The central government reiterated its commitment to meeting the **reasonable financing needs of property developers**, indicating a more relaxed financing environment for private and mixed-ownership property developers[33](index=33&type=chunk) - The Group will continue to adhere to a **prudent operating philosophy**, maintain financial stability, effectively integrate group resources, and intensify business innovation efforts[33](index=33&type=chunk) - The Group will steadfastly advance **urban renewal projects** and actively explore new development models in the existing market segment[33](index=33&type=chunk) [Progress of Major Projects](index=19&type=section&id=%E4%B8%BB%E8%A6%81%E9%A0%85%E7%9B%AE%E7%99%BC%E5%B1%95%E9%80%B2%E5%BA%A6) During the period, sales for Mingcai City and International Office Center (IOC) A2 in Hangzhou met expectations, both completed in 2023; Longying Huijinzuo (Binhe Yin) is expected to be completed in 2024 with good pre-sale performance - The **Mingcai City project** was completed in 2023, with sales meeting expectations for the current period[34](index=34&type=chunk) - The **International Office Center (IOC) A2 plot** was completed in 2023, with sales meeting expectations for the current period[35](index=35&type=chunk) - The **Longying Huijinzuo (Binhe Yin) project** is expected to be completed in 2024, with pre-sales meeting expectations for the current period[36](index=36&type=chunk) [Sales Review](index=20&type=section&id=%E9%8A%B7%E5%94%AE%E5%9B%9E%E9%A1%A7) Recognized property sales for the period amounted to approximately **RMB 2.724 billion**, a significant year-on-year increase, primarily contributed by International Office Center (IOC) A2 and Mingcai City; contracted sales area and revenue decreased year-on-year but maintained a certain scale Recognized Sales Amount and Area | Metric | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Recognized Sales Amount | Approximately RMB 2,723,530,000 | Approximately RMB 565,273,000 | | Recognized Gross Floor Area Sold | Approximately 73,493 square meters | Approximately 36,584 square meters | Recognized Sales Projects for H1 2024 | Project | Region | Recognized Amount (RMB millions) | Recognized Sales Area (square meters) | | :--- | :--- | :--- | :--- | | International Office Center (IOC) A2 | Hangzhou | 2,505.7 | 56,862 | | Mingcai City | Hangzhou | 148.7 | 10,289 | | Yinlong Bay | Hangzhou | 33.5 | 2,947 | | Cixi New City | Ningbo | 21.4 | 3,228 | | Xixi Manhattan | Hangzhou | 10.3 | 166 | | No. 8 Commercial Plot | Hangzhou | 3.2 | – | | Yuyao ZhongAn Times Square Phase II | Yuyao | 0.8 | – | | **Total** | | **2,723.5** | **73,493** | Contracted Sales for H1 2024 | Metric | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Contracted Sales Area | Approximately 29,997 square meters | Approximately 55,687 square meters | | Contracted Sales Revenue | Approximately RMB 663,350,000 | Approximately RMB 813,700,000 | [Hotel Management](index=21&type=section&id=%E9%85%92%E5%BA%97%E7%AE%A1%E7%90%86) Hotel management revenue for the period was approximately **RMB 113 million**, a year-on-year decrease of approximately **9.46%**, primarily due to a weakening market leading to a decline in average hotel occupancy from **67% to 62%** - The Group manages **four self-owned hotels**[40](index=40&type=chunk) Hotel Management Revenue and Occupancy Rate | Metric | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | Approximately RMB 112,651,000 | Approximately RMB 124,419,000 | | Occupancy Rate | Approximately 62% | Approximately 67% | [Commercial Operations](index=21&type=section&id=%E5%95%86%E6%A5%AD%E9%81%8B%E7%87%9F) Total commercial operations revenue for the period was approximately **RMB 48.646 million**, a year-on-year decrease of approximately **19.7%**, mainly due to a decline in the average rent per square meter for leased properties, despite an increase in average occupancy rate from **78% to 84%** - Commercial operations revenue primarily derives from rental income from **Hang Lung Plaza, International Office Center (IOC), Yiwu ZhongAn Plaza, and Yuyao ZhongAn Plaza**[41](index=41&type=chunk) Commercial Operations Revenue and Occupancy Rate | Metric | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Total Revenue | Approximately RMB 48,646,000 | Approximately RMB 60,582,000 | | Average Occupancy Rate | Approximately 84% | Approximately 78% | - The decrease in related revenue was primarily due to a **decline in the average rent per square meter** of leased properties compared to the same period in 2023[41](index=41&type=chunk) [Land Bank](index=21&type=section&id=%E5%9C%9F%E5%9C%B0%E5%84%B2%E5%82%99) As at June 30, 2024, the Group's total gross floor area of land bank held for development and/or sale was approximately **3.7626 million square meters**, a slight decrease from the end of 2023 Total Gross Floor Area of Land Bank | Date | Total Gross Floor Area (square meters) | | :--- | :--- | | June 30, 2024 | 3,762,642 | | December 31, 2023 | 3,836,135 | [Financial Performance Analysis](index=21&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E5%88%86%E6%9E%90) During the period, the company's revenue, gross profit, and net profit all achieved substantial growth, primarily driven by contributions from high-margin property sales; selling and administrative expenses were effectively controlled, but other expenses increased due to impairment losses from a joint venture [Revenue](index=21&type=section&id=%E6%94%B6%E5%85%A5) - The Group's consolidated revenue for the period was approximately **RMB 2,921,774,000**, an increase of approximately **RMB 2,103,215,000 or 256.9%** compared to the same period in 2023[43](index=43&type=chunk) - This was primarily due to an increase of approximately **RMB 2,158,257,000** in property sales business compared to the same period in 2023, with the International Office Center (IOC) A2 and Mingcai City projects contributing approximately **RMB 2,505,700,000** and **RMB 148,700,000** in property sales, respectively[43](index=43&type=chunk) [Gross Profit](index=21&type=section&id=%E6%AF%9B%E5%88%A9) - The Group's consolidated gross profit was approximately **RMB 1,579,596,000**, an increase of approximately **RMB 1,350,575,000 or 589.7%** compared to the same period in 2023[44](index=44&type=chunk) - The consolidated gross profit margin was approximately **54.1%**, an increase of approximately **26.1%** compared to the same period in 2023[44](index=44&type=chunk) - The increase in consolidated gross profit was primarily due to the **higher gross profit margin from property sales** during the period, which significantly boosted the Group's revenue[44](index=44&type=chunk) [Other Income and Gains](index=22&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) - Other income and gains amounted to approximately **RMB 25,876,000**, an increase of approximately **RMB 20,094,000 or 347.5%** compared to the same period in 2023[45](index=45&type=chunk) - The increase was mainly due to **gains from disposal of right-of-use asset items, exchange gains, compensation for lease termination, and gains from disposal of subsidiaries** during the period[45](index=45&type=chunk) [Selling and Distribution Expenses](index=22&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E9%96%8B%E6%94%AF) - Selling and distribution expenses were approximately **RMB 66,588,000**, a decrease of approximately **RMB 11,042,000 or 14.2%** compared to the same period in 2023[46](index=46&type=chunk) - This was attributable to the Group's **effective implementation of cost management strategies** and the resulting improvement in cost control efficiency[46](index=46&type=chunk) [Administrative Expenses](index=22&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) - Administrative expenses were approximately **RMB 67,991,000**, a decrease of approximately **RMB 24,734,000 or 26.7%** compared to the same period in 2023[47](index=47&type=chunk) - This was attributable to the Group's **effective implementation of cost management strategies** and the resulting improvement in cost control efficiency[47](index=47&type=chunk) [Other Expenses](index=22&type=section&id=%E5%85%B6%E4%BB%96%E9%96%8B%E6%94%AF) - Other expenses were approximately **RMB 5,833,000**, an increase of approximately **RMB 1,795,000 or 44.5%** compared to the same period in 2023[48](index=48&type=chunk) - This was primarily due to an **impairment loss of approximately RMB 5,626,000** from one of the Group's joint ventures[48](index=48&type=chunk) [Finance Costs](index=22&type=section&id=%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8) - The Group's finance costs were approximately **RMB 47,317,000**, a slight increase of approximately **RMB 132,000 or 0.3%** compared to the same period in 2023[49](index=49&type=chunk) [Profit for the Period](index=22&type=section&id=%E6%9C%AC%E6%9C%9F%E9%96%93%E7%9B%88%E5%88%A9) - The Group's profit attributable to owners was approximately **RMB 347,502,000**[50](index=50&type=chunk) - This profit for the period was primarily due to the **recognition of revenue from commercial property projects** in 2024, with related property sales generating a profit before tax of approximately **RMB 1,430,238,000**[50](index=50&type=chunk) [Capital Expenditure](index=22&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) - The Group incurred capital expenditure on property and equipment of approximately **RMB 24,835,000** (six months ended June 30, 2023: RMB 21,871,000)[51](index=51&type=chunk) [Significant Investments](index=23&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) During the period, the Group did not hold any significant investments - During the period, the Group did not hold any **significant investments**[52](index=52&type=chunk) [Capital Structure](index=23&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) As at June 30, 2024, the Group's total cash and cash equivalents amounted to approximately **RMB 224 million**, with the current ratio improving to **1.03**; the gearing ratio was **52%**, an increase from the end of last year Key Capital Structure Metrics | Metric | As at June 30, 2024 | As at December 31, 2023 | | :--- | :--- | :--- | | Total Cash and Cash Equivalents and Restricted Cash | Approximately RMB 223,899,000 | Approximately RMB 384,164,000 | | Current Ratio | 1.03 | 0.84 | | Bank and Other Borrowings Repayable Within One Year | Approximately RMB 575,860,000 | Approximately RMB 584,860,000 | | Bank and Other Borrowings Repayable After One Year | Approximately RMB 2,706,610,000 | Approximately RMB 2,534,180,000 | | Gearing Ratio | 52% | 46% | [Pledge of Assets](index=23&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As at June 30, 2024, approximately **RMB 3.282 billion** of the Group's bank and other borrowings were secured by pledges of property and equipment, investment properties, properties under development, and completed properties held for sale - As at June 30, 2024, the Group’s bank and other borrowings of approximately **RMB 3,282,470,000** (as at December 31, 2023: approximately RMB 3,119,040,000) were secured by pledges over the following assets of the Group[54](index=54&type=chunk) Pledged Asset Categories | Asset Category | As at June 30, 2024 (RMB thousands) | As at December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Property and Equipment | 1,057,315 | 1,081,614 | | Investment Properties | 2,586,539 | 2,993,909 | | Properties Under Development | – | 1,551,833 | | Completed Properties Held for Sale | 2,012,074 | – | | **Total** | **5,655,928** | **5,627,356** | [Treasury Policy](index=24&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group primarily operates in China, with revenue, costs, and borrowings denominated in RMB, resulting in minimal exchange rate fluctuation risk; the company adopts a prudent treasury policy, with cash mainly held as short-term RMB deposits, and no hedging activities were undertaken during the period - The Group is exposed to **minimal exchange rate fluctuation risk** as it primarily operates in China, with revenue, operating costs, and borrowings mainly denominated in RMB[55](index=55&type=chunk) - The Group adopts a **prudent treasury policy** in cash and financial management, with cash typically held as short-term deposits, mostly denominated in RMB[55](index=55&type=chunk) - The Group did not use any financial instruments for **hedging purposes** during the period[55](index=55&type=chunk) [Guarantees and Contingent Liabilities](index=24&type=section&id=%E6%93%94%E4%BF%9D%E5%8F%8A%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As at June 30, 2024, the Group's contingent liabilities amounted to approximately **RMB 374 million**, primarily consisting of bank guarantees for mortgage loans granted to property purchasers Contingent Liabilities Amount | Date | Amount (RMB thousands) | | :--- | :--- | | June 30, 2024 | 374,392 | | December 31, 2023 | 363,960 | - Contingent liabilities primarily consist of **guarantees provided by the Group for mortgage loans** granted by certain banks to purchasers of the Group’s properties[56](index=56&type=chunk) [Capital Commitments](index=24&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As at June 30, 2024, the Group's capital commitments for property development expenditures were approximately **RMB 290 million**, a significant decrease from the end of last year; additionally, a payment commitment of approximately **RMB 110 million** arose from a settlement deed Capital Commitments for Property Development Expenditures | Date | Amount (RMB thousands) | | :--- | :--- | | June 30, 2024 | 290,457 | | December 31, 2023 | 1,497,185 | - The Group has a payment commitment of approximately **RMB 110,000,000** arising from a settlement deed, of which **RMB 100,000,000** was paid before June 30, 2024[57](index=57&type=chunk) [Human Resources and Remuneration Policy](index=24&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As at June 30, 2024, the Group employed **1,287 people**; the remuneration policy considers market conditions, industry status, inflation, corporate performance, and employee performance, and provides continuous education and training programs Number of Employees | Date | Number of Employees (people) | | :--- | :--- | | June 30, 2024 | 1,287 | | December 31, 2023 | 1,256 | - Employee remuneration policy is determined by referencing **local market salary conditions**, combined with overall industry salary status, inflation levels, corporate operating efficiency, and employee performance[58](index=58&type=chunk) - The Group provides **continuous education and training programs** to enhance employees' skills and knowledge[58](index=58&type=chunk) [Strategies](index=25&type=section&id=%E7%AD%96%E7%95%A5) Management has formulated strategies to address challenges, including developing effective marketing strategies, enhancing product and service quality, strengthening cost and risk management, advancing urban renewal projects, identifying profitable acquisition opportunities, and focusing on investor relations management to maximize shareholder value - Develop **effective marketing strategies and plans** and enhance product and service quality to strengthen the brand[59](index=59&type=chunk) - Intensify efforts in formulating new policies, guidelines, systems, and procedures to effectively facilitate **cost management, risk management, internal control, and sustainable environmental management**[59](index=59&type=chunk) - Committed to identifying **profitable acquisition projects** with future development potential to improve asset returns[59](index=59&type=chunk) - Focus on **investor relations management** by communicating business philosophy, current operations, and future development strategies to stakeholders through press conferences, roadshows, media tours, and one-on-one meetings[59](index=59&type=chunk) [Relationships with Employees, Customers and Suppliers](index=25&type=section&id=%E8%88%87%E5%83%B1%E5%93%A1%E3%80%81%E5%AE%A2%E6%88%B6%E5%8F%8A%E4%BE%9B%E6%87%89%E5%95%86%E7%9A%84%E9%97%9C%E4%BF%82) The Group considers talent crucial for success and has adopted a share option scheme to incentivize employees; it communicates with customers through professional sales teams to grasp market trends and collaborates with suppliers to ensure environmental and safety standards for sustainable business development - The Group believes that **talent is a key factor for success and competitive advantage** in the market and has adopted a share option scheme to incentivize and reward eligible participants[60](index=60&type=chunk) - Professional sales teams maintain continuous communication with customers and potential customers to **identify and meet their needs**[60](index=60&type=chunk) - Grasping market trends is crucial for the Group to **timely adjust its operating strategies** to adapt to market demands[60](index=60&type=chunk) [Events After Reporting Period](index=25&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) This section outlines significant events occurring after the reporting period, including an off-market share repurchase related to a settlement agreement [Off-market Share Repurchase](index=25&type=section&id=%E5%A0%B4%E5%A4%96%E8%82%A1%E4%BB%BD%E5%9B%9E%E8%B3%BC) The Company and Hangzhou Oriental Culture Park Tourism Group Co, Ltd reached a settlement regarding the acquisition of a **22.65%** equity interest in Zhejiang Xin Nong Du Holdings Group Co, Ltd; the consideration shares will be returned to the Company by their holders for cancellation, and an off-market share repurchase will be conducted in accordance with the Hong Kong Share Buy-backs Code - ZhongAn Shenglong, the Company, and Hangzhou Oriental entered into a settlement deed after mediation by the Zhejiang Provincial Higher People's Court to finally and fully resolve all disputes between the parties regarding ZhongAn Shenglong's acquisition of a **22.65% equity interest in Zhejiang Xin Nong Du Holdings Group Co, Ltd** for a consideration of **RMB 352,994,400**[61](index=61&type=chunk) - Pursuant to the settlement deed, the consideration shares will be **returned by their holders to the Company for cancellation**[61](index=61&type=chunk) - To cancel the consideration shares, an off-market share repurchase of the consideration shares will be conducted in accordance with the **Hong Kong Share Buy-backs Code**, which is the necessary procedure to effect the cancellation of the consideration shares[62](index=62&type=chunk) - As at the date of this announcement, **no conditions for the share repurchase have been fulfilled**[62](index=62&type=chunk) [Other Information](index=26&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section provides additional information on environmental policies, interim dividends, audit committee review, securities transactions, corporate governance, and report publication [Environmental Policies and Performance](index=26&type=section&id=%E7%92%B0%E5%A2%83%E6%94%BF%E7%AD%96%E5%8F%8A%E7%B8%BE%E6%95%88) The Group is committed to environmental protection, ensuring compliance with government environmental standards, closely monitoring construction processes at all project stages, collaborating with suppliers and contractors to prevent pollution and reduce waste, and encouraging employees to enhance environmental awareness - The Group is committed to **protecting the environment** in the areas where it operates and ensuring consistent compliance with environmental standards set by the government[62](index=62&type=chunk) - Construction processes are closely monitored at different stages of projects to ensure compliance with **environmental and safety laws and regulations**[62](index=62&type=chunk) - By collaborating with suppliers and contractors, the Group ensures they are aware of the importance of environmental protection, **preventing pollution and reducing waste**[62](index=62&type=chunk) [Interim Dividend](index=26&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of any interim dividend for the period ended June 30, 2024, consistent with the prior year period - During the period, the Board of Directors does not recommend the payment of any **interim dividend**[63](index=63&type=chunk) [Audit Committee](index=26&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Company's Audit Committee has reviewed the Group's unaudited interim consolidated results for the period and discussed accounting principles, internal controls, and financial reporting matters with management; external auditor Ernst & Young has reviewed the interim financial information - The Company’s Audit Committee (comprising all independent non-executive Directors) has reviewed the Group’s **unaudited interim consolidated results** for the period[63](index=63&type=chunk) - External auditor Ernst & Young has reviewed the Group’s unaudited interim consolidated results for the period in accordance with **Hong Kong Standard on Review Engagements 2410** issued by the Hong Kong Institute of Certified Public Accountants[63](index=63&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities on the Stock Exchange - During the period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the **Company’s listed securities** on the Stock Exchange[64](index=64&type=chunk) [Standard Code for Securities Transactions by Directors](index=27&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than those in Appendix C3 of the Listing Rules; all directors have confirmed compliance with this code during the period and up to the announcement date - The Company has adopted a **code of conduct for directors’ securities transactions**, the terms of which are no less exacting than those set out in Appendix C3 to the Listing Rules[64](index=64&type=chunk) - All Directors have confirmed that they have complied with the **required standards** set out in the Standard Code during the period and up to the date of this announcement[64](index=64&type=chunk) [Compliance with Corporate Governance Code](index=27&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The Board has adopted the applicable principles and code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules and confirms that the Company has complied with the code during the period and up to the announcement date - The Board has adopted the applicable principles and code provisions set out in the **Corporate Governance Code** in Appendix C1 to the Listing Rules[64](index=64&type=chunk) - The Board is confident that the Company has complied with the code provisions set out in the Corporate Governance Code during the period and up to the date of this announcement[64](index=64&type=chunk) [Publication of Interim Results Announcement and Interim Report on the Company's and HKEX Websites](index=27&type=section&id=%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%AF%E4%BA%A4%E6%89%80%E7%B6%B2%E7%AB%99%E5%88%8A%E7%99%BB%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This announcement has been published on the Company's and HKEX websites; the interim report for the period, containing relevant information required by the Listing Rules, will be published on these websites and dispatched to shareholders in due course - This announcement is published on the Company’s website (www.chinanewcity.com.cn) and the Stock Exchange’s website (www.hkexnews.hk)[65](index=65&type=chunk) - The Company’s interim report for the period, containing relevant information required by the Listing Rules, will be published on the aforementioned websites and dispatched to the Company’s shareholders in due course[65](index=65&type=chunk) [By Order of the Board](index=27&type=section&id=%E6%89%BF%E8%91%A3%E4%BA%8B%E6%9C%83%E5%91%BD) This announcement was issued by Mr. Shi Zhong An, Chairman of the Board, on August 23, 2024; the Board members include Executive Directors Mr. Shi Nan Lu and Mr. Jin Jian Rong, Non-executive Director Mr. Shi Zhong An, and Independent Non-executive Directors Mr. Xu Cheng Fa, Mr. Lin You Yao, and Mr. Yuan Yuan - This announcement is issued by **Mr. Shi Zhong An, Chairman of the Board**, in the People’s Republic of China, on August 23, 2024[66](index=66&type=chunk) - The Board of Directors of the Company comprises Executive Directors Mr. Shi Nan Lu and Mr. Jin Jian Rong; Non-executive Director Mr. Shi Zhong An; and Independent Non-executive Directors Mr. Xu Cheng Fa, Mr. Lin You Yao, and Mr. Yuan Yuan[66](index=66&type=chunk)

Financial Performance - The Group recorded a revenue of approximately RMB1,297 million, representing a year-on-year increase of approximately 119.2%[71]. - Gross profit for the year was approximately RMB368 million, reflecting a year-on-year increase of approximately 213.6%[71]. - Loss attributable to owners of the Company was approximately RMB404 million, an increase of approximately 6.6% compared to 2022[71]. - Total equity of the Group reached approximately RMB4,841 million by the end of 2023[71]. - The carrying amount of cash as of the end of 2023 was approximately RMB384 million[71]. - Loss per share attributable to ordinary equity holders of the parent was approximately RMB20.1 cents[71]. - The Board does not recommend the payment of any final dividend for the year under review[71]. - The Group recorded a revenue of approximately RMB258 million in 2023, representing a year-on-year increase of approximately 16.7%[143]. - The hotel occupancy rate was approximately 70% in 2023, an increase of 14% compared to 2022[143]. - The average price of a guest room increased from RMB463 per room in 2022 to RMB479 per room in 2023, representing a year-on-year increase of 3.5%[143]. Corporate Governance - The Group's internal control systems were reviewed, covering financial, operational, compliance controls, and risk management functions, with no major issues identified[1]. - The Group has established procedures for handling inside information, ensuring compliance with disclosure requirements under the Listing Rules[4]. - The Group has implemented a fair disclosure policy to ensure broad distribution of information to the public[4]. - The Group's corporate governance report outlines compliance with regulatory requirements and best practices in management[25]. - The Company has implemented a liability insurance policy for directors and senior management to cover legal actions arising from their duties[23]. - The Company emphasizes continuous professional development for all directors to enhance their knowledge and skills in corporate governance[30]. - The board reviewed the effectiveness of the shareholders' communication policy, deeming it adequate for the year ended December 31, 2023[119]. - The company aims to provide clear and timely compliance information to investors and analysts for informed investment decisions[111]. - The company emphasizes the importance of feedback from shareholders and investors through established communication channels[119]. Management and Leadership - The Company Secretary, Mr. Lin Caihe, was appointed effective September 15, 2023, to fill a casual vacancy[8]. - The Company appointed Mr. Jin Jianrong as an executive director on May 5, 2023, while Mr. Liu Bo resigned on the same date[42]. - The executive director and CEO has been with the company since April 3, 2020, focusing on daily operations and strategic investments[126]. - The newly appointed executive director as of May 5, 2023, has over 35 years of experience in the property and construction industry[127]. - The chairperson of the board has over 30 years of experience in property development and investment[135]. Strategic Initiatives - The Group plans to focus on community commercial complexes and improve operational efficiency in 2024, collaborating closely with local governments on future community projects in Zhejiang Province[92]. - The Group aims to expand its business layout and explore growth opportunities, establishing a commercial product system centered on personalized theme business and self-operated brand management[91]. - The Group's diversified business segments, including commerce, hotels, and cultural tourism, are beginning to thrive, with plans to expand into urban renewal and rural revitalization[81]. - The Group intends to explore opportunities in the prepared dishes segment to foster new business growth[144]. - The Group's vision is to become a business operator that "creates new and better living" through the expansion and optimization of its business chain[150]. Market and Industry Trends - The overall real estate market in China showed a trend of "high from the beginning, low in the middle and stable at the end" during 2023, impacting buyer sentiment and market performance[79]. - The Group's strategic vision focuses on integrating commercial development and operation across various industries, enhancing its market position in the Yangtze River Delta Region[175]. - The Group has a significant land bank with multiple projects in various stages of development, indicating strong future growth potential[168][172]. Audit and Compliance - The audit fee for the Group for the year ended December 31, 2023, was RMB1,680,000, consistent with the previous year[18]. - The independent auditor also reviewed the interim results of the Company for a fee of RMB420,000, unchanged from 2022[18]. - The Group's internal audit department is responsible for providing internal control assessment reports to the Audit Committee and the Board[2]. - The Board and Audit Committee believe that the key areas of the Group's internal control systems are reasonably implemented[1]. Investor Relations - The Company’s website provides additional information and updates for investors, enhancing transparency and communication[38]. - The investor relations plan for 2024 includes multiple activities to enhance investor understanding of the group[116]. - The company plans to enhance communication with investors in 2024, including field trips and non-deal roadshows[112]. - The annual general meeting was held on June 8, 2023, where all ordinary resolutions were passed by poll[110].