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 ...

Financial Performance - The Group's revenue for 2020 was approximately RMB 700,370,000, representing a year-on-year decrease of approximately 64.2%[18] - Gross profit for the year was approximately RMB 170,155,000, reflecting a year-on-year decrease of approximately 78.1%[18] - Profit attributable to owners of the Company was approximately RMB 44,429,000, indicating a year-on-year increase of approximately 69.1%[18] - In 2020, the Group's revenue was approximately RMB 700,370,000, a year-on-year decrease of about 64.2%[21] - The gross profit for the year was approximately RMB 170,155,000, down approximately 78.1% year-on-year[21] - The profit attributable to the owners of the company was approximately RMB 44,429,000, an increase of about 69.1% year-on-year[21] - The recognized sales of properties sold and delivered for the year ended December 31, 2020, was approximately RMB 248,942,000, a decrease of 83.8% from RMB 1,534,552,000 in 2019[60] - Revenue from property sales dropped to approximately RMB 248,942,000, representing a decrease of approximately RMB 1,285,610,000 or 83.8% compared to the same period in 2019; after accounting for the disposal of investment properties, the adjusted drop was approximately RMB 465,851,000 or 30.4%[78] - Revenue from property rental and management amounted to approximately RMB 144,845,000, a decrease of approximately RMB 30,567,000 or 17.4% compared to the same period in 2019, mainly due to rental concessions offered to tenants during city lockdowns[79] - Revenue from hotel operations increased to approximately RMB 182,516,000, representing an increase of approximately RMB 41,246,000 or 29.2% compared to the same period in 2019, attributed to the opening of a new hotel in late October 2019[80] Equity and Cash Position - As of the end of 2020, the total equity of the Group reached approximately RMB 6,077,418,000, a slight decrease of approximately 1.0% from the end of 2019[18] - The carrying amount of cash at the end of 2020 was approximately RMB 1,108,888,000[18] - As of the end of 2020, the total equity of the Group was approximately RMB 6,077,418,000, a slight decrease of about 1.0% compared to the end of 2019[21] - The Group's cash balance was approximately RMB 1,108,888,000[21] - As of December 31, 2020, the Group's cash and cash equivalents and restricted cash totaled approximately RMB 1,108,888,000, an increase from approximately RMB 431,686,000 as of December 31, 2019[104] Strategic Focus and Development Plans - The Group plans to focus on land bank replenishment and the development and sales of commercial properties to generate quick and stable income and cash flows[19] - The Group is exploring potential mergers and acquisitions to achieve structural optimization and become more market-oriented[19] - The Group aims to diversify income sources and risk exposure through potential investment opportunities in China or overseas[19] - The Group will continue to optimize its capital structure while assessing market opportunities and acquiring quality land prudently[47][51] - The Group plans to upgrade its organizational capabilities to enhance competitiveness across different business segments[48][51] - The core business will remain focused on commercial property development, aiming for balanced and high-quality growth[49][51] Operational Performance - The total gross floor area (GFA) of land reserves was approximately 4,087,876 sq.m. as of December 31, 2020[25][26] - The contracted sales area for the Group was approximately 60,936 sq.m., an increase of 32% from 46,069 sq.m. in 2019, with contracted sales revenue of approximately RMB 1,242,900,000, up from RMB 1,040,700,000[65] - Hotel operations recorded revenue of approximately RMB 182,516,000, an increase of 29.2% from RMB 141,270,000 in 2019, with an occupancy rate of approximately 43%[69] - The total revenue from leasing business was approximately RMB 144,845,000, a decrease of approximately RMB 30,567,000 from RMB 175,412,000 in 2019, with an average occupancy rate of approximately 94%[70] Corporate Governance - The Board does not recommend any final dividend for the year ended December 31, 2020, maintaining a consistent approach from the previous year[136] - The roles of the chairperson and chief executive officer are separate, enhancing corporate governance[148] - The Board focuses on overall corporate strategies, financial performance, and corporate governance standards[156] - The Board has delegated day-to-day operations to senior management, who must report back and seek approval for key decisions[157] - Non-executive and independent non-executive directors possess extensive expertise and management experience[159] - The Articles stipulate that one third of the Directors must retire by rotation at each AGM, ensuring regular re-election[164] - The Board has established four committees to handle various responsibilities, including remuneration and audit[165] - The Audit Committee comprises three independent non-executive Directors, ensuring appropriate professional qualifications and expertise in accounting and financial management[191] Environmental and Social Responsibility - The Group is committed to environmental protection, monitoring projects to ensure compliance with environmental laws and regulations[130] - The Group encourages employees to be environmentally conscious, promoting pollution prevention and waste reduction[130] - No material accidents or environmental claims were reported during the year, indicating strong adherence to safety and environmental standards[126] - Customer satisfaction significantly impacts profitability, with the sales team actively engaging with customers to identify needs and adjust strategies accordingly[126] Employee and Investor Relations - The Group's employee count as of December 31, 2020, was 1,729, a decrease from 1,763 in 2019[120] - The Group's strategy includes improving product and service quality and enhancing investor relations management to maximize shareholder value[121] - The management is focused on enhancing investor relations through various communication methods to convey business strategies and performance[124]

Financial Performance - The Group's revenue for the six months ended June 30, 2020, dropped to approximately RMB 305,533,000, representing a decrease of approximately RMB 357,689,000 or 53.9% compared to the previous period[18]. - The Group's consolidated revenue for the six months ended June 30, 2020, was approximately RMB 305,533,000, representing a decrease of approximately RMB 357,689,000 or 53.9% compared to the same period in 2019[36]. - Revenue from property sales dropped to approximately RMB 122,443,000, a decrease of approximately RMB 351,932,000 or 74.2% compared to the same period in 2019[37]. - Revenue from property rental and management amounted to approximately RMB 80,591,000, an increase of approximately RMB 2,794,000 or 3.6% compared to the same period in 2019[37]. - Revenue from hotel operations was approximately RMB 63,869,000, representing an increase of approximately RMB 3,753,000 or 6.2% compared to the same period in 2019[39]. - The Group's gross profit for the period was approximately RMB 55,528,000, a decrease of approximately RMB 234,794,000 or 80.9% compared to the same period in 2019, with a gross profit margin of 18.2%, down by 25.6 percentage points[40]. - The profit attributable to the Group was approximately RMB 54,789,000 for the period, compared to approximately RMB 8,171,000 in the same period in 2019, mainly due to a fair value gain of approximately RMB 356,806,000 upon transfer to investment properties[57]. - The company reported a profit before tax of RMB 111,177,000 for the six months ended June 30, 2020, down from RMB 143,454,000 in the same period of 2019, representing a decline of about 22.5%[152]. - Total comprehensive income for the period reached RMB 64,989,000, up from RMB 49,782,000, indicating an increase of 30.5% year-over-year[99]. Market Conditions - The GDP of China decreased by 6.8% in the first quarter of 2020, marking the worst quarterly figures since 1992[16]. - The hotel operation in China experienced a significant decline in occupancy, reaching record lows in February 2020, but there are early signs of recovery driven by corporate travel and small-scale meetings[19]. - The PRC property market has shown signs of recovery as the pandemic was gradually controlled from the second quarter of 2020[18]. - The overall economy in China has been returning to normal as factories resume production and people restart work[16]. Strategic Initiatives - The Group plans to focus on land bank replenishment and the development and sales of commercial properties to generate quick and stable income and cash flows[20]. - The Group will consider potential mergers and acquisitions to achieve structural optimization and become more market-oriented[20]. - The Group will monitor the impact of the COVID-19 pandemic and adjust its strategies accordingly[20]. - The Group aims to diversify its revenue sources and mitigate risks through potential investments in China or overseas[22]. - The company plans to focus on expanding its property management services and enhancing operational efficiency in response to market challenges[150]. - The company is focusing on market expansion and new product development as part of its strategic initiatives moving forward[200]. Financial Position - As of June 30, 2020, the Group's cash and cash equivalents and restricted cash totaled approximately RMB 409,389,000, down from approximately RMB 431,686,000 as of December 31, 2019[69]. - The Group's gearing ratio as of June 30, 2020, was 71%, up from 66% as of December 31, 2019[69]. - Capital commitments as of June 30, 2020, were approximately RMB 823,258,000, compared to approximately RMB 767,467,000 as of December 31, 2019[71]. - Contingent liabilities as of June 30, 2020, were approximately RMB 6,540,000, significantly down from approximately RMB 258,800,000 as of December 31, 2019[72]. - As of June 30, 2020, the Group's bank borrowings and other borrowings amounted to approximately RMB 4,822,800,000, an increase from approximately RMB 4,456,105,000 as of December 31, 2019[77]. - The Group's total assets pledged as collateral for borrowings were valued at RMB 2,857,609,000 as of June 30, 2020[78]. - The number of employees decreased to 1,627 as of June 30, 2020, from 1,763 as of December 31, 2019, reflecting a reduction in workforce[80]. Cash Flow - The net cash used in operating activities for the six months ended June 30, 2020, was RMB 1,060,503,000, compared to RMB 277,752,000 in the same period of 2019, indicating a significant increase in cash outflow[117]. - Net cash generated from investing activities was RMB 707,978,000, compared to a net cash used of RMB (67,731,000) in the previous period[122]. - The net cash generated from financing activities was RMB 330,640,000, compared to RMB 32,976,000 in the previous period[122]. - Cash and cash equivalents at the end of the period were RMB 387,449,000, an increase from RMB 236,773,000 at the end of the previous period[122]. - The company reported a net decrease in cash and cash equivalents of RMB (21,885,000) for the current period, compared to a decrease of RMB (312,507,000) previously[122]. Revenue Breakdown - The commercial property development segment generated revenue of RMB 122,443,000, down from RMB 474,375,000 in the prior year, reflecting a decrease of about 74.2%[152]. - The property rental segment reported revenue of RMB 80,591,000, compared to RMB 77,797,000 in the previous year, indicating an increase of approximately 3.6%[152]. - Hotel operations segment revenue was RMB 63,869,000, slightly up from RMB 60,116,000 in 2019, marking an increase of about 4.6%[152]. - The geographical revenue breakdown indicates that Mainland China contributed RMB 290,656,000, while other regions contributed RMB 14,877,000 for the reporting period[159].