[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].

Financial Performance - Revenue for the year ended December 31, 2023, reached RMB 1,297,235 thousand, representing a 119.2% increase compared to RMB 591,783 thousand in 2022[2] - Gross profit for the same period was RMB 368,097 thousand, a significant increase of 213.6% from RMB 117,373 thousand in the previous year[2] - The net loss for the year narrowed to RMB 425,133 thousand, a decrease of 7.9% from RMB 461,640 thousand in 2022[2] - For the year ended December 31, 2023, total revenue reached RMB 1,297,235 thousand, a significant increase from RMB 591,783 thousand in 2022, representing a growth of approximately 119%[43] - The company reported a pre-tax loss of RMB 476,667 thousand for the year ended December 31, 2023, compared to a pre-tax loss of RMB 477,514 thousand in 2022, showing a slight improvement[43] - The company reported a pre-tax loss of RMB 476,667,000 for 2023, slightly improved from a loss of RMB 477,514,000 in 2022[70] - The net loss for fiscal year 2023 was approximately RMB 425,133,000, a slight improvement from a net loss of RMB 461,640,000 in fiscal year 2022[109] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 13,533,007 thousand, down 10.8% from RMB 15,179,776 thousand in 2022[2] - Net assets decreased by 8.8% to RMB 4,840,839 thousand from RMB 5,307,909 thousand in the previous year[2] - The company’s total liabilities were RMB 8,692,168 thousand as of December 31, 2023, compared to RMB 9,871,867 thousand in 2022, reflecting a reduction of approximately 12%[43] - The company experienced a decrease in cash and cash equivalents, totaling RMB 1,276,276 thousand, down from RMB 919,543 thousand in the previous year[22] - The company’s total liabilities decreased to RMB 5,332,192 thousand from RMB 6,228,366 thousand, indicating a reduction of 14.4%[22] - The group’s total bank loans and other borrowings were approximately RMB 3,119,040,000 as of December 31, 2023, compared to RMB 4,008,479,000 as of December 31, 2022[114] - The current ratio as of December 31, 2023, was 0.84, down from 0.93 on December 31, 2022[113] - The debt-to-capital ratio was 46% as of December 31, 2023, compared to 44% as of December 31, 2022[113] Equity and Shareholder Information - The total equity of the group was reported at RMB 4,840,839,000[29] - Basic and diluted loss per share for the year was RMB (20.1) cents, compared to RMB (21.5) cents in 2022[2] - The company reported a basic loss attributable to ordinary shareholders of RMB 404,136,000 for 2023, compared to a loss of RMB 432,523,000 in 2022, indicating a reduction in losses[73] - The group did not recommend a final dividend for the year ending December 31, 2023, consistent with 2022[74] - The group did not recommend any final dividend for the fiscal year 2023, consistent with the previous fiscal year[128] Operational Segments - The group primarily engages in commercial property development, leasing, and hotel operations[31] - The group has established four reportable operating segments: commercial property development, property leasing, hotel operations, and other[40] - The company’s segment performance showed a loss of RMB 378,566 thousand for the year ended December 31, 2023, compared to a loss of RMB 372,141 thousand in 2022[43] - The company’s revenue from property leasing increased to RMB 110,712 thousand in 2023 from RMB 101,528 thousand in 2022, marking a growth of approximately 9%[54] - Hotel operation services generated revenue of RMB 221,657,000 in 2023, while property sales contributed RMB 137,416,000, reflecting a diversified revenue stream[55] Cash Flow and Financial Management - The company believes it has sufficient operating cash flow for the foreseeable future, supporting the going concern basis of the financial statements[26] - The company has adopted a prudent treasury policy, primarily managing cash in short-term deposits, mostly in RMB[116] - The company recognized impairment losses of RMB 21,280 thousand during the year, compared to RMB 47,661 thousand in 2022, indicating a reduction in impairment losses[45] - Financial expenses decreased to RMB 226,446,000 in 2023 from RMB 297,908,000 in 2022, showing effective cost management[59] - The impairment provision for property and equipment was RMB 1,653,000 in 2023, down from RMB 12,867,000 in 2022, indicating improved asset performance[57] Future Outlook and Strategy - The company is committed to advancing urban renewal projects and exploring new development models in the stock market to adapt to market changes[87] - The group plans to enhance investor relations management through various communication strategies to maximize shareholder value[121] - The group is evaluating the impact of newly issued and revised International Financial Reporting Standards that are not yet effective[37] Employee and Operational Metrics - The group employed 1,256 staff as of December 31, 2023, down from 1,332 staff as of December 31, 2022[119] - The average occupancy rate for rental properties was approximately 86% in fiscal year 2023, consistent with the previous fiscal year[100] Miscellaneous - The financial statements were prepared in accordance with International Financial Reporting Standards, with all values adjusted to the nearest thousand[26] - The company will suspend share registration procedures from June 3, 2024, to June 6, 2024, to determine eligibility for the annual general meeting[136] - The annual performance announcement and annual report for FY2023 will be published on the company's and the stock exchange's websites at an appropriate time[137]

Financial Performance - Revenue for the first half of 2023 reached RMB 818,559,000, a significant increase from RMB 257,104,000 in the same period of 2022, representing a growth of 218%[1] - Gross profit for the period was RMB 229,021,000, compared to RMB 48,865,000 in 2022, indicating a gross profit margin improvement[1] - Loss for the period decreased to RMB 71,996,000 from RMB 238,516,000 year-on-year, reflecting a reduction of approximately 70%[5] - Other comprehensive income for the period amounted to RMB 51,687,000, compared to a loss of RMB 11,389,000 in the previous year[5] - Basic and diluted loss per share attributable to equity holders of the parent was RMB (3.32) cents, an improvement from RMB (11.13) cents in the previous year[1] - The total comprehensive loss for the period was RMB 71,996,000[14] - The total comprehensive loss for the previous period (June 30, 2022) was RMB 249,905,000, indicating a significant year-over-year change[14] Assets and Liabilities - Total non-current assets as of June 30, 2023, were RMB 9,347,962,000, slightly down from RMB 9,390,984,000 at the end of 2022[7] - Current assets totaled RMB 5,236,221,000, a decrease from RMB 5,788,792,000 at the end of 2022[7] - Total liabilities decreased to RMB 9,296,583,000 from RMB 9,857,367,000, indicating improved financial stability[9] - The company reported a net asset value of RMB 5,287,600,000 as of June 30, 2023, compared to RMB 5,307,909,000 at the end of 2022[9] - As of June 30, 2023, total equity amounted to RMB 5,287,600,000, a decrease from RMB 5,307,909,000 as of January 1, 2023[14] - The company had net current liabilities of approximately RMB 332,482,000 as of June 30, 2023, indicating a need for ongoing financial support[35] Cash Flow and Financing - Cash generated from operations was RMB 34,075,000, a significant improvement from cash used in operations of RMB 302,221,000 in the prior year[20] - Net cash used in operating activities was RMB 163,875,000, compared to RMB 460,167,000 in the previous year, indicating a reduction in cash outflow[20] - The company experienced a net decrease in cash and cash equivalents of RMB 629,949,000 for the period, compared to a decrease of RMB 498,082,000 in the same period last year[23] - The total finance costs amounted to RMB 47,185,000, down from RMB 87,679,000 in the previous year, reflecting a decrease of approximately 46%[20] - As of 30 June 2023, the Group's bank borrowings were approximately RMB 3,090,080,000, a decrease from approximately RMB 4,008,479,000 as of 31 December 2022[162] - The Group's gearing ratio was 42% as of June 30, 2023, down from 44% as of December 31, 2022[184] Real Estate Market and Development - The real estate market is expected to continue bottoming out for a period, with a focus on first- and second-tier cities for project launches[76] - The overall real estate policy remains loose, with adjustments made to support housing demand and stabilize the market[75] - The management noted that the developers' ability and willingness to launch new projects remained weak due to ongoing sales pressure in the real estate market[95] - The Group's major properties under development include the Bright Hotel Huaibei with a project area of 67,060 sq.m. and the Hidden Dragon Bay with a project area of 241,695 sq.m.[93] - The project in Qianjiang Century City has a planned total GFA of 798,795 square meters, with Plot A3 completed in 2015 and sold out except for a few units[81] Sales and Revenue Growth - For the six months ended June 30, 2023, the recognized sales of properties sold and delivered were approximately RMB 565,273,000, a significant increase from RMB 72,312,000 for the same period in 2022, representing a growth of approximately 684.5%[109] - The contract sales revenue for the period was approximately RMB 813,700,000, up from RMB 616,100,000 in the same period of 2022, representing an increase of approximately 32%[111] - Revenue from hotel operations was approximately RMB 124,419,000, representing an increase of approximately RMB 24,572,000 or 24.6% compared to the same period in 2022[119] - The hotel occupancy rate reached approximately 67%, up from 45% in the same period of 2022[116] - The total revenue from leasing business was approximately RMB 60,582,000, representing an increase of approximately RMB 30,290,000 or 100% compared to RMB 30,292,000 in the same period of 2022[138] Expenses and Cost Management - Selling and distribution expenses amounted to approximately RMB 77,630,000, an increase of approximately RMB 10,746,000 or 16.1% compared to the same period in 2022[151] - Administrative expenses decreased by approximately RMB 1,755,000 or 1.9% to RMB 92,725,000 compared to the same period in 2022[180] - Other expenses decreased by approximately RMB 2,273,000 or 36.0% to RMB 4,038,000, mainly due to a loss on disposal of investment properties of approximately RMB 2,478,000[180] - Finance costs decreased by approximately RMB 40,494,000 or 46.2% to RMB 47,185,000, attributed to reduced bank loan balances and other commercial borrowings[180] Review and Compliance - The review of the interim financial data was conducted according to the Hong Kong Institute of Certified Public Accountants' standards, specifically the Hong Kong Standard on Review Engagements 2410[200] - The scope of the review is significantly less than that of an audit conducted under Hong Kong auditing standards, indicating limitations in the assurance provided[200] - No audit opinion is expressed due to the inability to identify all significant matters that may be discovered in an audit[200]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 818,559,000, representing a 218.4% increase compared to RMB 257,104,000 in the same period of 2022[28]. - Gross profit for the same period was RMB 229,021,000, a significant increase of 368.7% from RMB 48,865,000 in 2022[28]. - The loss for the period was RMB 71,996,000, which is a 69.8% improvement compared to a loss of RMB 238,516,000 in the prior year[28]. - Loss attributable to equity holders of the parent company was RMB 66,669,000, down 70.2% from RMB 223,724,000 in 2022[28]. - The total operating income for the first half of 2023 was RMB 818,559,000, reflecting an increase from RMB 257,104,000 in the same period of the previous year[42][43]. - The adjusted profit before tax for the company was reported as a loss of RMB 17,113,000 for the first half of 2023[42]. - The total tax expense for the six months ended June 30, 2023, was RMB 54,883,000, compared to a tax benefit of RMB 12,643,000 in the same period of 2022[77]. - The group’s comprehensive income for the period was approximately RMB 818.6 million, an increase of RMB 561.5 million or 218.4% year-on-year[116]. Assets and Liabilities - Total assets as of June 30, 2023, were RMB 14,584,183,000, a decrease of 3.9% from RMB 15,179,776,000 at the end of 2022[28]. - Net assets stood at RMB 5,287,600,000, reflecting a slight decrease of 0.4% from RMB 5,307,909,000[28]. - Total current assets were reported at RMB 5,236,221,000, down from RMB 5,788,792,000 in the previous period[34]. - Total liabilities decreased to RMB 5,568,703,000 from RMB 6,228,366,000, indicating a reduction of approximately 10.6%[34]. - Total liabilities as of June 30, 2023, were RMB 9,296,583 thousand, down from RMB 9,871,867 thousand at the end of 2022[44]. - The group’s bank borrowings and other borrowings were approximately RMB 3,090,080,000, down from approximately RMB 4,008,479,000 as of December 31, 2022[127]. - The group had contingent liabilities of approximately RMB 440,950,000 as of June 30, 2023, compared to approximately RMB 406,830,000 as of December 31, 2022[128]. Revenue Segments - Revenue from the commercial property development segment was RMB 565,273,000, while the property leasing segment generated RMB 60,582,000 for the six months ended June 30, 2023[42]. - Hotel operations generated revenue of RMB 99,847 thousand for the six months ended June 30, 2023, compared to RMB 99,847 thousand for the same period in 2022, indicating stable performance[50]. - Customer contract revenue for the six months ended June 30, 2023, was RMB 757,977,000, a significant increase from RMB 226,812,000 for the same period in 2022, representing a growth of approximately 234%[72]. - Revenue from investment property leasing for the six months ended June 30, 2023, was RMB 60,582,000, compared to RMB 30,292,000 in the same period of 2022, marking a growth of about 100%[72]. - Property sales revenue increased to approximately RMB 565.3 million, up by RMB 492.9 million or 681.7% year-on-year[95]. - Rental income from leasing activities was approximately RMB 60.6 million, an increase of RMB 30.3 million compared to RMB 30.3 million in the same period last year[114]. Operational Insights - The company operates in commercial property development, leasing, and hotel operations, indicating a focus on expanding its business segments[17]. - The company is actively monitoring the performance of its operating segments to make informed resource allocation decisions[40]. - The company aims to maintain a prudent operational approach amidst low market confidence and is focused on enhancing operational efficiency for high-quality development[62]. - The overall performance of the Chinese real estate market showed a decline in buyer sentiment in the second quarter of 2023, impacting the company's sales capabilities and land market activity[84]. - The company confirmed sales amounting to RMB 565,273,000 for properties sold and delivered during the six months ended June 30, 2023, compared to RMB 72,312,000 for the same period in 2022, representing an increase of approximately 684%[91]. - The average occupancy rate for hotels reached 67%, compared to 45% in the same period last year[114]. Financial Management - The company continues to receive ongoing financial support from its parent group to manage its liabilities[19]. - The company continues to explore market expansion opportunities while adhering to its strategic focus on resource management and financial stability[62]. - The group plans to enhance its management level and corporate governance by developing new policies and systems for effective cost management and risk management[153]. - Financial expenses decreased to approximately RMB 47.2 million, a reduction of RMB 40.5 million or 46.2% compared to the same period last year[100]. - Administrative expenses for the period were approximately RMB 92,725,000, a slight decrease of about RMB 1,755,000 or 1.9% compared to the same period in 2022[121]. Staffing and Governance - The group employed 1,433 staff as of June 30, 2023, an increase from 1,332 staff as of December 31, 2022[152]. - The audit committee, composed entirely of independent non-executive directors, reviewed the unaudited consolidated interim results for the period[158]. - The company has adopted a code of conduct for directors regarding securities trading, which meets or exceeds the standards set out in the listing rules[161]. - The company emphasizes the importance of environmental awareness among employees and collaborates with suppliers and contractors to prevent pollution and reduce waste[156].

Economic Challenges - In 2022, the Group faced challenges due to COVID-19, the Russia-Ukraine conflict, global stagflation, and U.S. dollar interest rate hikes, leading to a weakening economy before a rebound[15]. - Infrastructure and real estate investment remained sluggish, with consumption continuing to be weak throughout the year[15]. - The Group's financial performance for the year ended December 31, 2022, reflects the impact of these macroeconomic challenges[10]. - The real estate market is expected to recover slowly, as it will take time for buyer confidence to rebuild despite the supportive policies[21]. - The Group expects continued support policies for China's real estate industry in 2023, aimed at stabilizing market development and ensuring building delivery[94]. - The real estate market is expected to recover slowly due to the time required for policy effects to translate into sales and for buyer confidence to rebuild[96]. Government Policies and Support - The Chinese government introduced a series of policies to stabilize the economy, focusing on both demand and supply sides, which included special loans for guaranteed delivery of buildings[20]. - The central government has increased financing support for private real estate companies, indicating a potential shift in market dynamics[20]. - The Chinese government has increased financing support for private real estate companies, which may positively impact the market recovery[22]. Financial Performance - In 2022, the Group's revenue was approximately RMB 591,783,000, representing a year-on-year decrease of approximately 32.1%[51]. - The gross profit for the year was approximately RMB 117,373,000, reflecting a year-on-year decrease of approximately 45.8%[51]. - The net loss attributable to owners of the Company was approximately RMB 432,523,000[51]. - As of the end of 2022, the total equity of the Group was approximately RMB 5,307,909,000, a decrease of approximately 7.4% from the end of 2021[51]. - The cash balance at the end of 2022 was approximately RMB 1,180,239,000[51]. - Contracted sales revenue for 2022 was approximately RMB 1,517,400,000, down from approximately RMB 2,650,800,000 in 2021, representing a decrease of approximately 42.7%[118]. - The recognized sales of properties sold and delivered in 2022 was approximately RMB 137,416,000, compared to approximately RMB 410,180,000 in 2021, a decrease of approximately 66.5%[112]. - The total area of contracted sales for 2022 was approximately 92,353 sq.m., down from approximately 105,453 sq.m. in 2021, a decrease of approximately 12.5%[118]. Strategic Focus and Development - The Group is focused on leveraging its business advantages to recover as quickly as possible during the ongoing economic challenges[21]. - The Group's strategy includes ensuring financial safety while navigating the complex market environment[21]. - The Group plans to explore a three-party management model with international brands to enter the trillion-dollar prefabricated market, aiming to enhance brand value[39]. - The Group is actively expanding into emerging industries, including industrial services and digital health, to achieve horizontal integration of high-quality resources[46]. - The three-year strategic plan aims to achieve a new level of development across various industries by 2025, focusing on urbanization and resource integration[53]. - The company will concentrate on in-depth development in Hangzhou while exploring external expansion opportunities[60]. Project and Operational Highlights - The commercial operation segment achieved growth in 2022, including the theme of commercial Zhong An Square Future Community and the digital system[32]. - Zhong An Square was awarded "2022 Top 10 Commercial Property Project in China in Terms of Brand Value," highlighting the brand's recognition in the industry[34]. - The hotel segment implemented lean management focusing on cost reduction, quality improvement, and efficiency increase, achieving growth in key core indicators despite market challenges[35]. - Major projects such as the International Office Centre and Fashion Color City are expected to be completed in 2023, with pre-sales volumes meeting expectations[102][103]. - The construction of Commercial Phase II in Cixi New City, with a total GFA of about 72,000 sq.m., is expected to be completed in 2023[110]. Management and Governance - Mr. Shi Nanlu has been the executive director and CEO since April 3, 2020, responsible for daily operations and strategic investments[121]. - Mr. Liu Bo has served as the executive director and vice president since April 3, 2020, overseeing overall daily operations and corporate governance[122]. - The company has a strong management team with extensive experience in financial management and investment, enhancing its operational capabilities[121][122][132]. - The Group aims to implement effective corporate governance practices to ensure proper functioning of the Board[122]. - The management team has a diverse background in finance, investment, and corporate governance, contributing to the company's strategic direction[121][122][132]. - The Group is committed to maintaining high standards of corporate governance and effective management practices[122]. Risks and Uncertainties - The company has outlined its major risks and uncertainties in the annual report, emphasizing the importance of risk management strategies[196]. - The Group's principal risks and uncertainties are discussed in the "Corporate Governance Report" section of the annual report[152].

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 591,783,000, a decrease of 32.1% compared to RMB 871,066,000 in 2021[2] - Gross loss for the year was RMB (461,640,000), compared to a gross loss of RMB (302,815,000) in the previous year, representing an increase of 52.4%[2] - Loss attributable to equity holders of the parent company for the year was RMB (432,523,000), up 46.6% from RMB (295,136,000) in 2021[2] - Basic and diluted loss per share for the year was RMB (21.5 cents), compared to RMB (14.7 cents) in 2021[2] - The company reported a total comprehensive loss for the year of RMB (461,640,000), compared to RMB (302,815,000) in the previous year[8] - The company reported a pre-tax loss of RMB 477,514 thousand for the year ended December 31, 2022, compared to a pre-tax loss of RMB 277,024 thousand in 2021[38] - The company reported a total tax expense of RMB (15,874,000) for 2022, compared to RMB 25,791,000 in 2021[64] - The company incurred impairment losses recognized in the income statement amounting to RMB 47,661 thousand for the year ended December 31, 2022[38] - The company recognized a loss of RMB 23,683,000 from the sale of investment properties in 2022, compared to a loss of RMB 3,977,000 in 2021[58] - The company incurred a total of RMB 83,522,000 in other expenses in 2022, a decrease from RMB 151,826,000 in 2021[48] Assets and Liabilities - Total assets as of December 31, 2022, were RMB 15,179,776,000, a decrease of 2.1% from RMB 15,504,840,000 in 2021[2] - Net assets as of December 31, 2022, were RMB 5,307,909,000, down 7.4% from RMB 5,733,595,000 in 2021[2] - The group's net current liabilities as of December 31, 2022, were approximately RMB (439,574,000)[14] - Total liabilities increased to RMB 9,871,867 thousand in 2022 from RMB 9,771,245 thousand in 2021[38] - Non-current liabilities decreased from RMB 4,111,796,000 in 2021 to RMB 3,643,501,000 in 2022, representing a reduction of approximately 11.4%[21] - Interest-bearing bank and other borrowings decreased from RMB 3,107,940,000 in 2021 to RMB 2,689,041,000 in 2022, a decline of about 13.5%[21] - The group's bank borrowings and other borrowings amounted to approximately RMB 4,008,479,000 as of December 31, 2022, down from RMB 4,635,250,000 as of December 31, 2021[113] - The group had contingent liabilities of approximately RMB 406,830,000 as of December 31, 2022, compared to RMB 316,410,000 in 2021, mainly related to guarantees provided for mortgage loans to property buyers[121] Revenue Breakdown - Revenue from commercial property development was RMB 137,416 thousand, while hotel operations generated RMB 221,657 thousand, and other services contributed RMB 131,182 thousand[40] - Revenue from external customers in mainland China was RMB 543,767 thousand in 2022, down from RMB 836,569 thousand in 2021, indicating a decline of approximately 35%[43] - The company reported a total of RMB 490,255 thousand in customer contract revenue for 2022, down from RMB 748,784 thousand in 2021[46] - Property sales contributed RMB 410,180,000 to total revenue, while hotel operations generated RMB 173,177,000 and other services accounted for RMB 165,427,000[47] - Hotel operations recorded revenue of approximately RMB 221.7 million, an increase of 28.0% from RMB 173.2 million in 2021, with an occupancy rate of about 56%[96] - Total rental income for the year was approximately RMB 101.5 million, a decrease of about RMB 20.8 million from RMB 122.3 million in 2021, with an average occupancy rate of approximately 86%[97] Operational Highlights - The company operates four reportable segments: commercial property development, property leasing, hotel operations, and other businesses[32] - The company completed the sale of its property management business for a total consideration of RMB 104,650,000 (approximately HKD 125,580,000) in April 2021[32] - The group's total land reserve for development and/or sale was approximately 3,947,292 square meters as of December 31, 2022[98] - The confirmed sales amount for properties sold and delivered for the year ended December 31, 2022, was approximately RMB 137.4 million, a decrease of 66.5% compared to RMB 410.2 million in 2021[92] - The total contracted sales area for the year was approximately 92,353 square meters, with contracted sales revenue of approximately RMB 1,517.4 million, down from RMB 2,650.8 million in 2021[95] Governance and Compliance - The financial statements are prepared in accordance with International Financial Reporting Standards, ensuring compliance with relevant accounting policies[24] - The company has adopted revised International Financial Reporting Standards for the first time in the current financial year, with no significant financial impact identified[28] - The company is evaluating the impact of newly issued and revised International Financial Reporting Standards, with no major effects anticipated on its financial performance and position[30] - The company will hold its Annual General Meeting on June 8, 2023, with the notice published on its website and the Stock Exchange's website[131] - The financial figures for the year ended December 31, 2022, have been agreed upon by the auditor, Ernst & Young, and are consistent with the consolidated financial statements[132] - The Audit Committee, composed entirely of independent non-executive directors, has reviewed the annual results and discussed accounting standards and internal controls with management[133] - The board has adopted the Corporate Governance Code and has confirmed compliance with its provisions throughout the year[137] Staffing and Future Plans - The group employed 1,332 staff as of December 31, 2022, down from 1,630 in 2021[123] - The group plans to focus on identifying acquisition projects with future development and profitability potential to enhance asset returns[124] - The company anticipates the completion of a major project in Hangzhou in 2023, which includes various residential and commercial units[82]

Property Holdings and Development - As of June 30, 2022, the total Gross Floor Area (GFA) of land reserves was approximately 4,030,188 sq.m.[34] - The company holds major investment properties including Guomao Building (12,225 sq.m.), Hidden Dragon Bay (17,814 sq.m.), and Highlong Plaza (63,888 sq.m.) in Hangzhou, Zhejiang Province[35] - The total GFA of the investment properties listed amounts to 217,000 sq.m.[35] - The company is actively involved in the development and sales of major properties, although specific figures for these projects are not detailed in the provided content[36] - The company has a diversified portfolio of integrated commercial complexes, indicating a focus on mixed-use developments[35] - The total gross floor area (GFA) of the Fashion Color City project in Hangzhou is approximately 78,261 sq.m., with construction commencing in Q3 2020 and expected completion in 2022[50] - The International Office Center (IOC) in Hangzhou has a planned total GFA of 798,795 sq.m., with pre-sales starting in Q3 2020 and expected completion in 2022[51] - The Beigan Project, located in Xiaoshan District, has a total GFA of approximately 44,867 sq.m., with construction starting in Q4 2021 and expected pre-sale in Q2 2022[52] - The Cixi New City project includes a Commercial Phase I with a GFA of about 28,158 sq.m., completed in 2021, and a Commercial Phase II with a GFA of about 72,000 sq.m., expected to be completed in 2023[57] - The total area of the International Office Center (Plots B and C) is 1,098,065 sq.m., indicating significant market expansion potential[50] - The Hidden Dragon Bay Resort Hotel project has a total GFA of approximately 241,695 sq.m., showcasing the company's focus on integrated commercial developments[50] Financial Performance - The recognized sales of properties sold and delivered for the six months ended 30 June 2022 were approximately RMB72,312,000, a decline of 76.8% compared to RMB311,024,000 for the same period in 2021[60][72] - The contracted sales revenue for the Group was approximately RMB616,100,000 for the Period, down 46.9% from RMB1,158,900,000 in the same period of 2021[64][65] - The total revenue from leasing business decreased to approximately RMB30,292,000, representing a decline of 49.0% compared to RMB59,471,000 for the same period in 2021[69][74] - The consolidated revenue of the Group amounted to approximately RMB257,104,000, a decrease of 53.0% from RMB547,108,000 in the same period of 2021[71] - The gross profit for the Period was approximately RMB48,865,000, representing a decline of 58.9% compared to the same period in 2021, with a gross profit margin of 19.0%[80] - The revenue from hotel operations increased to approximately RMB99,847,000, a rise of 2.3% compared to RMB97,606,000 in the same period of 2021[66][79] - The average occupancy rate of leasing properties was approximately 75%, down from 85% in the same period of 2021[69][74] - Other income and gains decreased by 78.2% to approximately RMB51,405,000, primarily due to the absence of a gain on disposal of subsidiaries recorded in the previous year[81] - Selling and distribution expenses amounted to approximately RMB66,884,000, a mild decrease of 1.9% compared to the same period in 2021[82] - The group's gross profit for the period was approximately RMB 48,865,000, a decrease of about RMB 69,964,000 or 58.9% compared to the same period in 2021, with a gross margin of 19.0%, down 2.7 percentage points year-on-year[85] - Administrative expenses were approximately RMB 94,480,000, a reduction of about RMB 15,825,000 or 14.3% compared to the same period in 2021, due to staff reductions from new project launches[88] - Finance costs for the period were approximately RMB 87,679,000, a decrease of about RMB 23,567,000 or 21.2% compared to 2021, mainly due to reduced bank loan balances[90] - The loss attributable to the group was approximately RMB 238.5 million for the period, primarily due to a decrease in the fair value of investment properties of approximately RMB 95.6 million[90] - The group's gearing ratio as of June 30, 2022, was 46%, up from 42% as of December 31, 2021, indicating an increase in financial leverage[94] - The company reported a loss for the period of RMB 238,516,000, compared to a loss of RMB 67,741,000 in the previous year, representing a significant increase in losses[122] - Total comprehensive loss for the period amounted to RMB 249,905,000, up from RMB 96,355,000 in the prior period, reflecting a worsening financial performance[127] Market Outlook and Strategy - The company anticipates improved credit conditions in the second half of 2022 due to adjustments in the housing market, which may stabilize real estate investment growth[43] - The management expects the policy environment to support the real estate market's development momentum, indicating a potential recovery in the industry[45] - The company is focused on maintaining a balance between ensuring project completion and improving corporate fund utilization efficiency[44] - The overall trend in the real estate market is likely to continue positively in the second half of 2022, driven by government policies aimed at stabilizing the market[43] - The company is likely to explore market expansion opportunities, particularly in the Zhejiang Province, given its significant property holdings in the region[35] Cash Flow and Liquidity - As of June 30, 2022, the group had cash and cash equivalents totaling approximately RMB 1,321,338,000, down from approximately RMB 1,948,034,000 as of December 31, 2021, with a current ratio of 0.88[90] - Cash and cash equivalents decreased to RMB 1,104,273,000 from RMB 1,603,069,000, indicating a reduction in available liquidity[130] - The net current liabilities stood at RMB (810,416,000), a decline from net current assets of RMB 273,778,000 in the previous period, highlighting liquidity challenges[130] - The company’s equity attributable to owners of the parent decreased to RMB 5,266,432,000 from RMB 5,500,142,000, reflecting a reduction in shareholder value[132] - The company has adopted a prudent treasury policy, primarily holding cash in short-term deposits, mostly in RMB[105] - The Group had net current liabilities of approximately RMB 810,416,000 as of June 30, 2022[149] - Available unutilized credit and banking facilities amounted to RMB 4,646,000,000, expiring after June 30, 2023[149] Employee and Operational Metrics - The group had 1,435 employees as of June 30, 2022, a decrease from 1,630 employees as of December 31, 2021, reflecting adjustments in workforce management[104] - The company experienced a significant increase in contract liabilities, which rose by RMB 378,960,000 in the first half of 2022[140] - The company recorded an increase in properties under development amounting to RMB 840,893,000 in the first half of 2022[140] - The company completed the transfer of its commercial property management business on April 13, 2021, and is no longer engaged in this sector[159][160] - Management continues to monitor segment performance for resource allocation and performance assessment, excluding interest income and finance costs from segment results[161]

Economic Challenges and Responses - The Group faced significant challenges in 2021 due to the ongoing Covid-19 pandemic and macroeconomic uncertainties, impacting investment growth and business conditions for MSMEs [13]. - In response to adverse market conditions, the Group accelerated the destocking of inventory properties and cash recovery to ensure fund security [19]. - The outlook for 2022 indicates a trend of steady recovery in the Chinese economy, despite new challenges and uncertainties [63]. - The principle of safeguarding the healthy development of the real estate market is expected to be implemented more effectively in 2022 [63]. - Local governments are anticipated to further improve delivery assurance policies, with a focus on balancing property delivery and corporate capital utilization efficiency [63]. Business Development and Strategy - The Group launched the commercial brand "Pleasant Living for All" to focus on future community operations, leveraging opportunities in Zhejiang Province [22]. - The Group aims to expand its business segment based on three future communities in Taizhou, Wenzhou, and Shaoxing, contributing to common prosperity initiatives in Zhejiang Province [22]. - The Group plans to establish a successful template for future communities and transform traditional department store models into fast-selling, experiential business models [27]. - The Group aims to create an integrated management ecological chain centered around hotels to enhance resource sharing and operational efficiency [29]. - The Group will seek investment opportunities in China or overseas to diversify income sources and mitigate risks [34]. Financial Performance - In 2021, the Group's revenue was approximately RMB 871,066,000, representing a year-on-year increase of approximately 24.3% [32]. - The gross profit for the year was approximately RMB 216,497,000, reflecting a year-on-year increase of approximately 27.2% [32]. - The loss attributable to owners of the Company was approximately RMB 295,136,000 [32]. - As of the end of 2021, the total equity of the Group was approximately RMB 5,733,595,000, a slight decrease of approximately 5.7% from the end of 2020 [32]. - The total cash balance reached approximately RMB 1,948,034,000, with improvements in cash position and gearing ratio [32]. Property Development and Sales - The Group holds several major properties for development and sale, including Zhong An Times Square and Hidden Dragon Bay, with significant gross floor areas [56]. - For the year ended December 31, 2021, recognized sales of properties sold and delivered amounted to approximately RMB 410,180,000, a significant increase from RMB 248,942,000 in 2020 [78]. - The contracted sales area for the Group was approximately 105,453 sq.m. in 2021, up from approximately 60,936 sq.m. in 2020, with contracted sales revenue reaching approximately RMB 2,650,800,000, compared to RMB 1,242,900,000 in 2020 [84]. Hotel Operations - The hotel operations maintained leadership in consolidated revenue, occupancy rate, and average room prices despite the pandemic's impact [28]. - The hotel operation recorded a revenue of approximately RMB 173,177,000 in 2021, representing a decrease of approximately 5.1% from RMB 182,516,000 in 2020, with an occupancy rate of approximately 40% [88]. Corporate Governance - The Board has complied with the corporate governance code provisions as set out in the Listing Rules for the year ended December 31, 2021 [172]. - The Board regularly meets to discuss the overall strategy and operational performance of the Group, ensuring effective governance [181]. - The chairperson, Mr. Shi Zhongan, and the CEO, Mr. Shi Nanlu, hold separate roles to ensure better corporate governance [186]. - The Board focuses on overall corporate strategies, financial performance, and corporate governance standards, making decisions on annual results and major transactions [194][198]. Environmental Compliance - The Group is committed to environmental protection and compliance with government standards, ensuring that project operations adhere to environmental laws and regulations [160]. - No significant accidents or environmental claims were reported during the year, indicating compliance with relevant laws and regulations [155].

中國新城市商業發展有限公司 China New City Commercial Development Limited Stock Code 股份代號: 1321 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) INTERIM REPORT 中期報告 2021 CONTENTS 目 錄 Corporate Information 2 公司資料 Investment Properties 4 投資物業 Major Properties Held for Development and/or Sales 5 持作發展及╱或銷售的主要物業 Management Discussion and Analysis 8 管理層討論與分析 Independent Review Report 19 獨立審閱報告 Interim Condensed Consolidated Statement of Profit or Loss 21 中期簡明綜合損益表 Interim Condensed Consolidated Stat ...