Land Reserves and Development - As of June 30, 2024, the total land reserve of the company reached approximately 3.85 million square meters[1] - The group has a total land reserve of approximately 3.63 million square meters across 11 cities as of June 30, 2024[40] - The land reserve includes 34 projects developed and owned by the group and 1 project developed by a joint venture[40] - The total construction area of the land reserve includes completed properties, properties under construction, and those held for future development[40] - The group has a total of 2,057,709 square meters of land area, with 392,924 square meters completed but unsold or leased, and 732,106 square meters currently under construction[46] - The estimated future development area for the group is projected to be 2,501,508 square meters, indicating potential growth opportunities[46] Financial Performance - The total contracted sales for the group amounted to approximately RMB 323.6 million for the six months ended June 30, 2024, a decrease of 64.2% compared to RMB 905.1 million for the same period in 2023[15] - The confirmed revenue for the group was RMB 2,304.0 million, a significant increase of 607.2% from RMB 325.8 million in the same period of 2023[16] - The operating loss for the period was RMB 174.1 million, an improvement from the operating loss of RMB 360.6 million in the first half of 2023[15] - The group recorded a net loss of RMB 182.4 million for the six months ended June 30, 2024, compared to a loss of RMB 421.5 million for the same period in 2023[22] - Basic and diluted loss per share was RMB 0.16, compared to RMB 0.23 in the first half of 2023[22] - Revenue for the six months ended June 30, 2024, was RMB 2,304,025 thousand, compared to RMB 2,090,320 thousand for the same period in 2023, representing an increase of approximately 10.2%[64] Revenue Sources - The revenue from property development and sales increased significantly by 729.2%, from RMB 271.4 million in the first half of 2023 to RMB 2,250.4 million in the same period of 2024, accounting for 97.7% of the total revenue during the review period[17] - The revenue from hotel operations decreased slightly by 5.6%, from RMB 35.6 million in 2023 to RMB 33.6 million in 2024, primarily due to increased demand for outbound and long-distance travel[19] - Property management service revenue grew to RMB 17.1 million, a 9.6% increase from RMB 15.6 million in 2023, attributed to a stable increase in the total construction area under management[20] - The revenue from external customers for property development and sales was RMB 2,250,430 thousand, while the revenue from property investment, hotel operations, and property management contributed RMB 2,930 thousand, RMB 33,559 thousand, and RMB 17,106 thousand respectively[80] Cost and Expenses - The sales cost for the group increased by 654.6%, reaching RMB 2,090.3 million compared to RMB 277.0 million in the first half of 2023, aligning with the trend of increased property deliveries during the review period[20] - Sales and marketing expenses increased by 247.3% to RMB 110.1 million compared to RMB 31.7 million in the same period of 2023, primarily due to increased commission expenses from recognized revenue in property sales[22] - Administrative expenses decreased by 9.4% to RMB 36.7 million from RMB 40.5 million in the same period of 2023, attributed to ongoing cost control measures[22] - The total expenses for the six months ended June 30, 2024, were RMB 2,402,895 thousand, a substantial increase from RMB 690,836 thousand in the previous year[89] Debt and Financing - The company is focused on optimizing debt management through various measures, including seeking new financing sources and asset disposal[6] - The group has successfully completed the exchange of priority notes totaling USD 152 million due in 2024 and USD 159 million due in 2025, along with repaying several maturing loans[9] - The group is increasing efforts to revitalize its own assets and improve cash flow through strategies such as leasing idle properties and enhancing the efficiency of asset utilization[9] - Total borrowings and senior notes amounted to RMB 3,208.6 million as of June 30, 2024, slightly up from RMB 3,202.2 million as of December 31, 2023[25] - The company issued new senior notes totaling USD 159,284,612 with a coupon rate of 9.5% on January 11, 2024, to refinance existing notes[125] Corporate Governance and Compliance - The group maintains compliance with corporate governance codes and has adopted the corporate governance code as per the listing rules[48] - The company confirmed compliance with the standard code for securities transactions by directors for the six months ended June 30, 2024[49] - The audit committee reviewed the interim results for the six months ended June 30, 2024, and the financial statements were not audited[63] Market Conditions - The global economic growth in the first half of 2024 was resilient but faced challenges from inflation, geopolitical conflicts, and political risks[8] - The Chinese real estate market continues to experience policy easing from the central government, with new measures stimulating both supply and demand[8] - Market sentiment and confidence remain weak, impacting the overall recovery process of the real estate market[8] Employee and Management - The employee cost for the group during the review period was RMB 48.9 million, slightly down from RMB 49.5 million in the first half of 2023[53] - The group had a total of 662 employees as of June 30, 2024, a decrease from 843 employees as of June 30, 2023[53] - The total remuneration for key management personnel was RMB 2,701,000 for the six months ended June 30, 2024, down 44.6% from RMB 4,868,000 for the same period in 2023[139] Impairment and Provisions - The company confirmed an impairment provision of RMB 165.8 million for completed and under-construction properties, compared to RMB 341.5 million in the first half of 2023[20] - The total impairment provision for properties under construction is RMB 1,636,551,000 as of June 30, 2024, slightly down from RMB 1,646,255,000 as of December 31, 2023[109] Cash Flow and Liquidity - As of June 30, 2024, total cash and bank balances amounted to RMB 267.9 million, down from RMB 464.2 million as of December 31, 2023[24] - Cash and cash equivalents dropped to RMB 32,249 thousand as of June 30, 2024, down from RMB 125,006 thousand as of December 31, 2023, indicating a decrease of about 74.2%[69] - The net cash used in operating activities was RMB (15,434) thousand for the six months ended June 30, 2024, compared to RMB 419,047 thousand for the same period in 2023, showing a significant decline[69] Future Outlook - The group plans to continue focusing on "stabilizing the market," "reducing inventory," and "ensuring delivery" in response to government policies, which are expected to remain accommodative[12] - The group aims to enhance its product and service capabilities while adapting to new market demands, providing diverse improvement and wellness-oriented products[12] - The company aims to adjust pre-sale and sales activities to better respond to market demand and achieve budgeted sales targets[73]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 2,304,025 thousand, an increase from RMB 2,090,320 thousand in the same period of 2023, representing a growth of approximately 10.2%[1] - Gross profit before impairment losses on completed properties and properties under construction was RMB 213,705 thousand, compared to RMB 48,823 thousand in the previous year, indicating a significant improvement[1] - The net loss for the period was RMB 182,378 thousand, a reduction from a loss of RMB 421,472 thousand in the same period last year, reflecting a decrease in losses of approximately 56.7%[2] - The company reported a basic and diluted loss per share of RMB 0.16, an improvement from RMB 0.23 in the same period last year[2] - The company reported a loss attributable to shareholders of RMB 262,941,000 for the six months ended June 30, 2024, compared to a loss of RMB 377,280,000 for the same period in 2023, representing a 30.3% improvement[29] - Basic and diluted loss per share for the six months ended June 30, 2024, was RMB 0.16, compared to RMB 0.23 for the same period in 2023, indicating a reduction of 30.4%[29] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 8,360,356 thousand, down from RMB 10,304,103 thousand as of December 31, 2023, indicating a decrease of about 18.8%[3] - The total liabilities decreased to RMB 6,999,876 thousand from RMB 8,747,977 thousand, representing a reduction of about 20.0%[4] - The company's cash and cash equivalents decreased to RMB 32,249 thousand from RMB 125,006 thousand at the end of 2023, showing a decline of approximately 74.2%[3] - As of June 30, 2024, total bank and other borrowings amounted to RMB 3,209 million, with RMB 3,176 million due within 12 months[6] - The short-term and long-term borrowings' current portion was RMB 3,175,505 thousand as of June 30, 2024, slightly up from RMB 3,173,236 thousand as of December 31, 2023, indicating a marginal increase of about 0.1%[22] - The total interest-bearing loans and preferred notes amounted to RMB 3,208.6 million, a slight increase from RMB 3,202.2 million as of December 31, 2023[65] Operational Challenges - The group experienced a decline in pre-sales and sales volume, failing to meet management expectations due to a slowdown in the real estate market in mainland China[6] - There is significant uncertainty regarding the group's ability to continue as a going concern, dependent on generating sufficient financing and operational cash flow[9] - In the first half of 2024, the company faced challenges due to persistent inflation, geopolitical conflicts, and increased political risks, leading to weaker growth momentum in the global economy[38] Marketing and Sales - The company’s marketing expenses rose to RMB 110,093 thousand from RMB 31,746 thousand, indicating an increase of approximately 246.5%[1] - The total contract sales for the group amounted to approximately RMB 323.6 million for the six months ended June 30, 2024, a decrease of 64.2% compared to RMB 905.1 million for the same period in 2023[46] - The revenue from property development and sales recorded a substantial increase of 729.2%, rising from RMB 271.4 million in the first half of 2023 to RMB 2,250.4 million in 2024, accounting for 97.7% of total revenue during the review period[48] Debt Management - The group successfully extended or modified repayment terms for borrowings totaling RMB 2,916 million to alleviate cash flow pressure[7] - The group is actively negotiating with lenders regarding defaulted borrowings to avoid immediate repayment demands[9] - The group is enhancing its marketing efficiency by implementing a dual strategy of increasing and decreasing marketing expenses to optimize costs[41] - The company is actively optimizing its debt management by seeking new financing sources and enhancing liquidity through various measures, including asset disposals[39] Impairment and Expenses - The cost of completed properties held for sale and construction in progress impairment loss net amount was RMB 165,805 thousand for the six months ended June 30, 2024, significantly lower than RMB 341,524 thousand for the same period in 2023, showing a decrease of about 51.5%[23] - The total impairment loss on investment properties was RMB 8,310 thousand for the six months ended June 30, 2024, compared to a loss of RMB 3,977 thousand for the same period in 2023, reflecting an increase in impairment losses[23] - Sales and marketing expenses increased by 247.3% to RMB 110.1 million from RMB 31.7 million in the same period of 2023, primarily due to increased commission expenses[56] Corporate Governance - The board has resolved not to declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[30] - The board and management are committed to maintaining good corporate governance practices and have adhered to all applicable rules under the corporate governance code[77] - All directors have confirmed compliance with the standard code of conduct for securities transactions during the six-month period ending June 30, 2024[78] Future Outlook - The board believes that the group will have sufficient operating funds to meet its financing obligations over the next twelve months based on cash flow forecasts and planned measures[9] - The group anticipates continued government support for the real estate sector, although market expectations regarding income and property price declines remain uncertain[46] - The company continues to evaluate its strategies for market expansion and new product development to enhance future performance[20]

Financial Performance - In 2023, the total borrowing cost of the group was RMB 282.8 million, a decrease of 12.6% from RMB 323.7 million in 2022[1]. - The annual weighted average effective interest rate increased to 8.00% in 2023, compared to 6.79% in 2022[1]. - The group's net loss for the year ended December 31, 2023, was RMB 2,143 million, with a net cash outflow of RMB 66 million[35]. - Total borrowings as of December 31, 2023, were RMB 3,202 million, with current borrowings amounting to RMB 3,173 million, while cash and cash equivalents were only RMB 125 million[35]. - The group faced a cross-default situation with borrowings totaling RMB 2,275 million due to overdue loans, including priority notes of USD 152 million (equivalent to RMB 1,077 million)[35]. - The group reported a significant decline in presale performance, impacting cash flow and liquidity, with ongoing pressures from construction costs for properties scheduled for delivery within the next twelve months[36]. - Employee costs for the year ended December 31, 2023, amounted to RMB 102.1 million, down from RMB 124.5 million in 2022, reflecting a reduction of approximately 18%[140]. Borrowings and Debt Management - As of December 31, 2023, the group's total borrowings amounted to RMB 3,202.236 million, a decrease from RMB 3,628.493 million in 2022, representing a reduction of approximately 11.7%[17]. - The group issued priority notes totaling USD 152.1 million with a coupon rate of 9.5%, maturing on January 11, 2024, as part of a refinancing strategy[15]. - The group has outstanding principal amounts of RMB 78 million in overdue borrowings, contributing to a default situation[15]. - The group has reclassified RMB 758 million of borrowings as current liabilities as of December 31, 2023[15]. - The group has not been able to repay certain borrowings totaling RMB 78 million, which are part of the aforementioned default and cross-default borrowings[15]. - As of December 31, 2023, the total bank and other borrowings of the group amounted to RMB 1,955.0 million, a decrease from RMB 2,429.0 million as of December 31, 2022[19]. Corporate Governance - The group has been actively involved in corporate governance, with independent directors serving on various committees[14]. - The group adopted a corporate governance code to ensure transparency and accountability to stakeholders[158]. - The group has complied with all provisions of the corporate governance code throughout the year ended December 31, 2023[159]. - The board consists of five executive directors and three independent non-executive directors, ensuring a diverse and experienced leadership team[174]. - The company has established committees, including the audit, remuneration, and nomination committees, to enhance governance practices[162]. - The nomination committee was established on November 13, 2019, to review the board's structure, size, and composition at least once a year[194]. Strategic Focus and Market Position - The group continues to explore opportunities for market expansion and new strategies to enhance its competitive position[14]. - The group has implemented various plans and measures to alleviate liquidity pressure and improve financial conditions, including addressing overdue loan repayments[37]. - The group emphasized the importance of maintaining good relationships with employees, customers, and suppliers for sustainable development[30]. - The group has established strong relationships with customers and suppliers to enhance cooperation and meet market demands[156]. Compliance and Risk Management - The company faces major risks including impacts from COVID-19, government regulations, and reliance on the Chinese real estate market[68]. - The company has established compliance procedures to ensure adherence to applicable laws and regulations related to real estate development and management[70]. - The group maintained compliance with environmental regulations, with no significant fines or penalties reported as of December 31, 2023[145]. Share Option Plan - The stock option plan approved on November 13, 2019, aims to attract and retain top talent within the company[71]. - The maximum number of shares that can be issued under the stock option plan is capped at 10% of the total shares issued on the listing date, equating to a maximum of 160 million shares[78]. - The stock option plan will remain effective for ten years from the adoption date, expiring on November 12, 2029, unless terminated earlier by shareholders at a general meeting[109]. - The company must notify option holders promptly upon issuing a notice for a shareholders' meeting to consider a resolution for automatic winding-up[101]. - The plan includes provisions for the cancellation of unexercised options at the discretion of the board, in accordance with relevant legal requirements[108]. Employee Relations - The group has implemented a stock option plan to incentivize and reward employee contributions[140]. - The group is committed to providing competitive salaries and benefits, regularly reviewing compensation policies based on market standards[140]. - As of December 31, 2023, the group had a total of 743 employees, a decrease from 873 employees in 2022[140]. - There were no significant safety incidents reported during the year ended December 31, 2023[153].

Financial Performance - For the year ended December 31, 2023, the group recorded a net loss of RMB 2,143 million and a net cash outflow of RMB 66 million[8]. - The group reported a total loss for the year of RMB 2,142,608 thousand, compared to a loss of RMB 887,825 thousand in 2022, representing an increase in losses of approximately 141%[27]. - The operating loss for the year was RMB 1,977,499 thousand, compared to RMB 1,013,715 thousand in 2022, indicating a worsening of operational performance[27]. - The net loss for the year amounted to RMB 2,142,608 thousand, reflecting a substantial increase compared to the previous year's loss[48]. - The group reported a loss of RMB 2,142.6 million for the year, with attributable loss to the company amounting to RMB 1,835.4 million[59]. - The net loss for 2023 was RMB 2,142.6 million, significantly higher than the net loss of RMB 887.8 million in 2022, with attributable loss to owners amounting to RMB 1,835.4 million[137]. Revenue and Sales - The group's revenue for the year ended December 31, 2023, was RMB 513,462 thousand, compared to RMB 513,310 thousand in 2022, reflecting a slight increase[27]. - Total revenue for the property development and sales segment reached RMB 517,736 thousand, with a significant contribution from external customer revenue of RMB 513,462 thousand[40]. - In 2023, the revenue from property development and sales was RMB 402.2 million, a decrease of 2.8% from RMB 413.8 million in 2022, accounting for 78.3% of total revenue[105]. - Revenue from hotel operations increased by 12.1% to RMB 72.3 million in 2023, up from RMB 64.5 million in 2022, driven by a recovery in travel demand post-pandemic[106]. - The commercial property investment income for 2023 was RMB 5.2 million, a decrease of 16.1% compared to RMB 6.2 million in 2022, primarily due to a reduction in rental properties[77]. Assets and Liabilities - As of December 31, 2023, the total borrowings of the group amounted to RMB 3,202 million, with current borrowings of RMB 3,173 million[8]. - The total liabilities of the group were RMB 8,747,977 thousand, while total equity and liabilities amounted to RMB 10,304,103 thousand[6]. - The group’s total equity decreased from RMB 12,487,254 thousand in 2022 to RMB 10,304,103 thousand in 2023[6]. - The group had overdue borrowings amounting to RMB 108 million, which included a principal amount of RMB 795 million[8]. - The group had cash and cash equivalents of RMB 125 million and restricted cash of RMB 339 million as of December 31, 2023[8]. - The group’s non-current assets totaled RMB 812,016 thousand, down from RMB 1,172,564 thousand in the previous year[4]. - The net debt ratio was 175.9%, a substantial increase from 73.8% in 2022, indicating a significant rise in leverage[144]. Impairment and Expenses - The impairment loss on completed properties held for sale and properties under construction was RMB 1,666,138 thousand, significantly higher than RMB 679,553 thousand in the previous year[27]. - The gross profit before impairment losses decreased by 37.4% to RMB 46.1 million in 2023, down from RMB 73.6 million in 2022, with the gross profit margin dropping from 14.3% to 9.0%[129]. - The group reported a total of RMB 10,869 thousand in expenses for the year ended December 31, 2023, compared to RMB 14,326 thousand in 2022[20]. - The company reported a decrease in employee benefits expenses, totaling RMB 102,087 thousand, down from RMB 111,595 thousand in the previous year[45]. - Sales and marketing expenses decreased by 15.5% to RMB 56.0 million in 2023, representing 3.6% of total contract sales, compared to 3.2% in 2022[111]. - Administrative expenses fell by 26.1% to RMB 86.8 million in 2023, accounting for 5.6% of total contract sales, down from 5.7% in 2022[112]. Cash Flow and Financing - The group anticipates continued pressure on cash flow due to declining pre-sale performance in the real estate market since 2021[33]. - The group is actively negotiating with lenders to seek waivers and extensions on loan repayments to ensure operational continuity[35]. - The group has successfully extended the repayment period for loans totaling RMB 598 million, with the new due date set for September 17, 2026[34]. - The group has arranged bank financing for certain property buyers, providing guarantees for their repayment obligations, which may impact future cash flows[146]. - The group is committed to managing liquidity risks by optimizing debt structure and disposing of non-core quality assets[66]. Market Conditions and Strategy - The real estate market continues to face downward pressure, with structural challenges affecting demand and financing channels for property companies[89]. - The group is focused on enhancing operational efficiency through organizational restructuring and a flatter management system to better allocate resources and reduce costs[97]. - The company is implementing measures to accelerate pre-sales and sales of properties under construction and to recover related sales proceeds in a timely manner[186]. - The company anticipates continued easing of government policies on the real estate sector in 2024, which is expected to gradually stabilize the industry[68]. - The group aims to enhance its product and service capabilities by focusing on the emerging market demands from the aging population and the Z generation[69]. Corporate Governance and Social Responsibility - The group emphasizes its commitment to corporate social responsibility and sustainable development initiatives[67]. - The group is committed to corporate social responsibility, supporting sustainable development initiatives in charity and green projects[100]. - The board has proposed not to distribute a final dividend for the year ending December 31, 2023[90]. Future Outlook - The effectiveness of the company's ongoing operations is contingent upon the success of these plans and measures, which are subject to various uncertainties[194]. - The consolidated financial statements are prepared on a going concern basis, dependent on the outcomes of the aforementioned plans[194]. - The company plans to successfully complete construction projects and deliver them to customers to facilitate the release of restricted pre-sale proceeds[195].

Financial Performance - Revenue from hotel operations increased by 12.1% to RMB 72.3 million in 2023 compared to RMB 64.5 million in 2022, driven by the recovery of tourism demand post-pandemic[19] - The company recorded a net loss of RMB 2,142,608 thousand for the year 2023, compared to a net loss of RMB 887,825 thousand in 2022[4] - Gross loss after deducting impairment losses on completed and under-construction properties was RMB 1,620,079 thousand in 2023, compared to RMB 605,947 thousand in 2022[4] - The company recorded a net loss of RMB 2,142.6 million in 2023, compared to a net loss of RMB 887.8 million in 2022, with attributable losses to owners of RMB 1,835.4 million and RMB 721.9 million, respectively[25] - The group recorded a net loss of RMB 2,143 million for the year ended December 31, 2023, with a net cash outflow of RMB 66 million[47] - The group reported a net loss attributable to owners of RMB 1,835,407 thousand in 2023, compared to a net loss of RMB 721,859 thousand in 2022[68] - The company reported a net loss of RMB 2,142,608,000 in 2023, compared to a net loss of RMB 887,825,000 in 2022, showing a significant deterioration in financial performance[79][80] - The company's basic and diluted loss per share was RMB 1.11 in 2023, compared to RMB 0.44 in 2022[169] Assets and Liabilities - Total assets decreased to RMB 10,304,103 thousand in 2023 from RMB 12,487,254 thousand in 2022[10] - Total liabilities decreased to RMB 8,747,977 thousand in 2023 from RMB 8,769,231 thousand in 2022[13] - The company's equity attributable to owners decreased to RMB 392,414 thousand in 2023 from RMB 2,247,110 thousand in 2022[10] - Non-current assets decreased to RMB 812,016 thousand in 2023 from RMB 1,172,564 thousand in 2022[9] - The company's cash and cash equivalents decreased to RMB 125,006 thousand in 2023 from RMB 187,025 thousand in 2022[9] - The company's inventory decreased to RMB 914 thousand in 2023 from RMB 1,173 thousand in 2022[9] - The company's total equity decreased to RMB 1,556,126 thousand in 2023 from RMB 3,718,023 thousand in 2022[10] - Total borrowings as of December 31, 2023, amounted to RMB 3,202 million, with current borrowings at RMB 3,173 million, while cash and cash equivalents and restricted cash were RMB 125 million and RMB 339 million, respectively[47] - Total liabilities for the group amounted to RMB 8,747,977 thousand in 2023, compared to RMB 8,769,231 thousand in 2022[60] - The group's short-term and long-term borrowings (current portion) increased to RMB 3,173,236 thousand in 2023 from RMB 1,797,073 thousand in 2022[60] - The company's total assets decreased to RMB 10,042,186,000 in 2023 from RMB 12,137,449,000 in 2022, indicating a reduction in asset base[79][80] - The company's total liabilities decreased to RMB 4,921,808,000 in 2023 from RMB 4,547,151,000 in 2022, reflecting a reduction in overall debt[79][80] - Total assets decreased to RMB 10,304,103 thousand in 2023 from RMB 12,487,254 thousand in 2022, a decline of 17.5%[83] - Deferred tax assets decreased to RMB 261,917 thousand in 2023 from RMB 349,805 thousand in 2022, a decline of 25.1%[83] - The company's cash and bank balances totaled RMB 464.2 million as of December 31, 2023, a decrease from RMB 884.7 million as of December 31, 2022[171] - The company's net debt ratio increased significantly to 175.9% as of December 31, 2023, up from 73.8% as of December 31, 2022[178] - The company's interest-bearing borrowings and priority notes totaled RMB 3,202.2 million as of December 31, 2023, down from RMB 3,628.5 million as of December 31, 2022[173] - Property presale proceeds of RMB 304.1 million were deposited in designated bank accounts as construction guarantees, down from RMB 615.1 million in 2022[183] - Cash deposits for bank loan guarantees decreased to RMB 5.5 million from RMB 26.0 million in 2022[183] - Total bank and other borrowings decreased to RMB 1,955.0 million from RMB 2,429.0 million in 2022, secured by assets including land, property, and equipment[189] - Outstanding guarantees for property buyers' bank financing stood at RMB 2,070.9 million, slightly down from RMB 2,084.5 million in 2022[193] - The company's borrowings are primarily denominated in RMB, USD, and HKD, with RMB borrowings decreasing to RMB 1,600.31 million from RMB 2,043.74 million in 2022[187] Revenue and Sales - The company's total contract sales in 2023 were approximately RMB 1,541.5 million, a decrease of 25.3% from RMB 2,064.4 million in 2022, with corresponding contract construction area decreasing by 20.2% to 158,000 square meters from 198,000 square meters[43] - Revenue from property development and sales decreased by 2.8% to RMB 402.2 million in 2023, accounting for 78.3% of total revenue, primarily due to lower average selling prices[115] - Property management service revenue increased by 17.0% to RMB 33.7 million in 2023, driven by growth in the total managed floor area[117] - Commercial property investment revenue decreased by 16.1% to RMB 5.2 million in 2023, mainly due to reduced rental properties[118] - Contract sales amounted to RMB 1,541.5 million in 2023, a 25.3% year-on-year decrease, with a 20.2% drop in sales area to 158,000 square meters[130] - Revenue from property development and sales in Zhaoqing increased to RMB 226.4 million, accounting for 56.3% of total property sales revenue, with a total construction area of 52,207 square meters and an average selling price of RMB 4,336 per square meter[144] - The group's total confirmed revenue remained relatively stable at RMB 513.5 million in 2023, compared to RMB 513.3 million in 2022[142] - Zhuodu Property achieved revenue of RMB 33.7 million in 2023, a year-on-year increase of 17.0%[134] - The group's property sales revenue in Guangzhou accounted for 6.2% of total revenue, with a total construction area of 3,471 square meters and an average selling price of RMB 7,181 per square meter[144] - Property sales revenue in Tengchong accounted for 3.9% of total revenue, with a total construction area of 4,498 square meters and an average selling price of RMB 3,468 per square meter[144] - The group's total property sales revenue in 2023 was RMB 402.2 million, with a total construction area of 72,641 square meters and an average selling price of RMB 5,332 per square meter[144] - The company's revenue for 2023 was RMB 513.5 million, a slight increase from RMB 513.3 million in 2022[155] - The top three cities by revenue, Qingyuan, Tengchong, and Zhaoqing, achieved an average gross profit margin of 16.3% before impairment losses, accounting for 82.7% of the company's property development and sales revenue in 2023[161] Expenses and Costs - The company's administrative expenses decreased by 26.1% to RMB 86.8 million in 2023, compared to RMB 117.5 million in 2022, accounting for 5.6% of total contract sales (2022: 5.7%)[24] - Other net losses decreased from RMB 200.5 million in 2022 to RMB 163.0 million in 2023, primarily due to non-recurring losses from the sale of subsidiaries in 2022, partially offset by an increase in impairment losses on right-of-use assets[45] - The group's total expenses for 2023 were RMB 2,276,399 thousand, a significant increase from RMB 1,303,097 thousand in 2022[61] - The group's impairment losses on completed and under-construction properties amounted to RMB 1,666,138 thousand in 2023, up from RMB 679,553 thousand in 2022[61] - The group's employee benefit expenses (including directors' remuneration) decreased to RMB 102,087 thousand in 2023 from RMB 124,497 thousand in 2022[61] - The group's finance costs net of capitalized interest amounted to RMB 13,916 thousand in 2023, down from RMB 28,731 thousand in 2022[62] - The group's hotel operating expenses increased to RMB 42,951 thousand in 2023 from RMB 34,664 thousand in 2022[61] - The group's advertising costs decreased slightly to RMB 22,267 thousand in 2023 from RMB 22,831 thousand in 2022[61] - The company's sales cost increased by 6.3% to RMB 467.4 million in 2023, up from RMB 439.7 million in 2022[159] - The company's gross profit before impairment losses on completed and under-construction properties decreased by 37.4% to RMB 46.1 million in 2023, down from RMB 73.6 million in 2022[160] - The gross profit margin before impairment losses on completed and under-construction properties dropped from 14.3% in 2022 to 9.0% in 2023[160] - The company's net financing costs decreased to RMB 9.9 million in 2023 from RMB 22.0 million in 2022, primarily due to a non-recurring loss of RMB 9.1 million from early redemption of bank loans in 2022[166] - Borrowing costs decreased by 12.6% to RMB 282.8 million in 2023, with a weighted average interest rate of 8.00%[190] Liquidity and Financing - The company failed to repay certain borrowings totaling RMB 78 million after December 31, 2023, which also constitutes part of the aforementioned default and cross-default borrowings[28] - The company plans to accelerate pre-sales and sales of properties under construction and completed properties for sale, and to speed up the collection of sales proceeds to alleviate liquidity pressure[30] - The company will continue to seek alternative financing and borrowings to meet existing financial obligations and fund future operating expenses[30] - The company's ability to obtain new financing depends on the current and future regulatory environment, the willingness of existing lenders to agree to extension or renewal terms, and the company's ability to comply with the terms and conditions of its borrowings[33] - The group successfully extended the repayment period for loans totaling RMB 598 million, with the maturity date extended to September 17, 2026[50] - In January 2024, the group completed an exchange of USD 152 million (RMB 1,077 million) in priority notes due January 11, 2024, for new priority notes due January 9, 2025[50] - Restricted cash as of December 31, 2023, was RMB 339 million, primarily from restricted presale proceeds in designated bank accounts[50] - The group's ability to continue as a going concern depends on successful negotiations with lenders to avoid immediate repayment demands and to secure related waivers[51] - The group plans to complete and deliver properties to customers as scheduled, enabling the release of restricted presale proceeds to fulfill other financing obligations[52] - The group's cash flow forecast indicates sufficient working capital to meet financing obligations over the next 12 months from December 31, 2023[50] - The company failed to repay loans totaling RMB 78 million, which are part of cross-defaulted borrowings[185] Market and Strategy - The company focused on expanding its marketing strategy for vacation and wellness projects in cities like Xi'an, Beijing, and Chongqing, targeting inland customer groups[104] - Projects such as Zengcheng Jingye Yifang Tiandi and Nanjing Jiuyunfu continued to perform well, contributing to revenue[105] - The company leveraged the post-pandemic recovery in service-oriented consumption, focusing on hotel, homestay, and commercial complex operations through new media marketing[106] - The company successfully issued $159,284,612 in senior notes with a 9.5% interest rate, maturing on January 9, 2025, including an exchange offer for $152,100,000 of notes due in January 2024[107] - The group expects the central government to continue implementing loose policies in the real estate sector in 2024, with market expectations gradually recovering[138] - The group is committed to promoting the coordinated development of cultural tourism, vacation hotels, homestays, and commercial complexes, adopting a "rent and sell simultaneously" strategy to revitalize existing resources[135] Other Financial Metrics - The company's deferred tax assets are not classified as segment assets but are managed uniformly[42] - The company's consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance[26] - The company's future liquidity and performance, as well as available financial resources, are under careful consideration by the board to assess the company's ability to continue as a going concern[29] - The group's deferred tax liabilities increased to RMB 239,045 thousand in 2023 from RMB 200,280 thousand in 2022[60] - Corporate income tax increased to RMB 22,109 thousand in 2023 from RMB 6,244 thousand in 2022, a significant rise of 254%[89] - Land value-added tax decreased to RMB (2,709) thousand in 2023 from RMB 15,210 thousand in 2022, a decline of 117.8%[89] - Trade receivables provision increased significantly to RMB 13,357,000 in 2023 from RMB 426,000 in 2022, reflecting a substantial rise in expected credit losses[73] - Total trade payables increased to RMB 901,025,000 in 2023 from RMB 832,347,000 in 2022, indicating higher liabilities[75] - Trade receivables pledged as collateral amounted to RMB 1,097,000 thousand in 2023, down from RMB 1,600,000 thousand in 2022, a decline of 31.4%[94] - Other receivables net of impairment provisions decreased to RMB 866,057 thousand in 2023 from RMB 1,030,147 thousand in 2022, a decline of 15.9%[97] - The company did not recommend the distribution of a final dividend for the year ended December 31, 2023[102] - The adoption of new and revised standards and interpretations did not have a significant impact on the group's consolidated financial statements[53] - The company completed a transaction on July 26, 2023, resulting in no longer holding any equity in the target company[197]

Financial Performance - For the six months ended June 30, 2023, the company reported a net loss of RMB 421 million, compared to a net loss of RMB 305 million for the same period in 2022, indicating a year-over-year increase in losses of approximately 38%[12] - The group reported a total loss of RMB 421,472,000 for the six months ended June 30, 2023[30] - The group experienced a net loss before tax of RMB 381,303,000[30] - The company reported a loss attributable to shareholders of RMB 377,280,000 for the six months ended June 30, 2023, compared to a loss of RMB 185,787,000 for the same period in 2022, representing an increase in loss of approximately 103.5%[66] - The basic and diluted loss per share for the six months ended June 30, 2023, was RMB 0.23, compared to RMB 0.11 for the same period in 2022, indicating a 109.1% increase in loss per share[66] - The group incurred administrative expenses of RMB 40,548,000 during the reporting period[30] - The financial costs net amount to RMB 13,203,000, contributing to the overall loss[30] - The group reported a loss from the sale of investment properties and property, plant, and equipment amounting to RMB 16,053 thousand for the six months ended June 30, 2023, compared to a gain of RMB 8,710 thousand in the same period of 2022[51] - The group’s employee benefits expenses, including directors' remuneration, decreased to RMB 49,481 thousand for the six months ended June 30, 2023, from RMB 61,663 thousand in the same period of 2022, a reduction of 19.7%[50] Revenue and Sales - Total revenue for the property development and sales segment was RMB 271,420,000, while the commercial property investment segment generated RMB 35,671,000[30] - For the six months ended June 30, 2023, total revenue from property development and sales was RMB 259,853,000, with additional revenue from commercial operations amounting to RMB 32,658,000, leading to a total of RMB 311,612,000[32] - The group reported a confirmed revenue of RMB 325.8 million, a 5.7% increase from RMB 308.2 million in the same period of 2022[195] - The total contracted sales amount for the group was approximately RMB 905.1 million, a decrease of 28.3% from RMB 1,262.0 million for the six months ended June 30, 2022[200] - The company reported a contract sales amount of approximately RMB 905.1 million, a decrease of 28.3% year-on-year, with a confirmed revenue of RMB 325.8 million, an increase of 5.7% year-on-year[182] Liquidity and Borrowings - As of June 30, 2023, the company's total bank and other borrowings amounted to RMB 3,471 million, with RMB 2,703 million due within 12 months[12] - The company's cash and cash equivalents stood at RMB 192 million as of June 30, 2023, reflecting a significant liquidity challenge[12] - The company successfully obtained a waiver from lenders regarding compliance with financial covenants for the year ending December 31, 2023, to alleviate liquidity pressure[14] - The company is closely monitoring its liquidity situation to ensure timely repayment of new senior notes due in January 2024[15] - The group’s total liabilities increased to RMB 4,629,820,000 as of June 30, 2023, compared to RMB 4,547,151,000 as of December 31, 2022[44] - The total assets as of June 30, 2023, were RMB 11,614,389,000, a decrease from RMB 12,137,449,000 as of December 31, 2022[40] - The group’s bank and other borrowings increased to RMB 2,702,983 thousand from RMB 1,797,073 thousand, marking an increase of approximately 50.4%[171] - The group provided guarantees for bank financing arrangements for several property buyers, with the guarantees terminating upon issuance of property ownership certificates or full repayment of mortgage loans[137] Impairment and Provisions - The net loss from completed and under-construction property impairment was RMB 341,524,000[30] - The company reported a net impairment loss of RMB 276,942,000 on completed properties held for sale and properties under construction[32] - The provision for impairment of completed properties held for sale was RMB 264,357,000 as of June 30, 2023, up from RMB 151,844,000 as of December 31, 2022, indicating an increase of about 74%[92] Market Conditions and Strategic Initiatives - The company experienced a decline in pre-sales and sales volume, failing to meet management's expectations due to a slowdown in the real estate market in mainland China[12] - The real estate market in China saw a 7.9% year-on-year decline in development investment, with a sales area decrease of 5.3%[182] - The company aims to adjust its pre-sale and sales activities to meet budgeted targets and expedite the sale of properties under construction and completed properties[15] - The company plans to launch new projects in the tourism and wellness sectors to capture the recovering market demand post-pandemic[185] - The group is focusing on enhancing product and service capabilities to adapt to market demand changes, including developing health-oriented residential products[192] - The group is committed to green sustainable development and actively participates in social welfare initiatives[190] Assets and Receivables - The total value of completed properties held for sale was RMB 1,250,129,000 as of June 30, 2023, compared to RMB 1,347,186,000 as of December 31, 2022, reflecting a decrease of approximately 7.2%[91] - The company's total trade and other receivables amounted to RMB 1,409,152,000 as of June 30, 2023, down from RMB 1,493,186,000 as of December 31, 2022, indicating a decline of about 5.6%[94] - The net book value of completed properties held for sale was RMB 811,455,000 as of June 30, 2023, compared to RMB 871,823,000 as of December 31, 2022, representing a decrease of approximately 6.9%[92] - The company has made cash advances to a related party totaling approximately RMB 203,350,000, earning interest at an 11% rate[102] - The group’s total land reserves reached approximately 3.85 million square meters as of June 30, 2023, supporting its ongoing property development initiatives[159] Management and Governance - The group’s financial risk management policies remained unchanged during the reporting period[27] - The group is undergoing structural adjustments to enhance operational efficiency and management effectiveness[187] - The remuneration for key management personnel was reported at RMB 4,868,000 for the six months ended June 30, 2023, down from RMB 5,254,000 for the same period in 2022, a decrease of approximately 7.4%[156] - The company aims to maintain a "prudent and optimistic" approach, focusing on cash flow management and cost control to enhance its financial resilience[178]

Financial Performance - The total contract sales amount for the group was approximately RMB 905.1 million, a decrease of 28.3% compared to RMB 1,262.0 million for the six months ended June 30, 2022[10]. - The recognized revenue for the group was RMB 325.8 million, an increase of 5.7% from RMB 308.2 million in the same period of 2022[10]. - The operating loss for the period was RMB 360.6 million, compared to an operating loss of RMB 324.1 million in the first half of 2022[10]. - The gross profit before impairment losses on completed and under-construction properties was RMB 48.8 million, a decrease of 20.5% from RMB 61.4 million in the same period of 2022[14]. - The gross profit margin before impairment losses decreased from 19.9% in 2022 to 15.0% in the current period[14]. - The net impairment losses on completed and under-construction properties amounted to RMB 341.5 million, compared to RMB 276.9 million in the first half of 2022[16]. - The company achieved contract sales of approximately RMB 905.1 million, a year-on-year decrease of 28.3%[20]. - The recognized revenue for the period was RMB 325.8 million, reflecting a year-on-year increase of 5.7%[22]. - The group reported a revenue of RMB 325,841,000 for the first half of 2023, compared to RMB 308,168,000 in the same period of 2022, reflecting an increase of approximately 5.4%[45]. - The operating loss for the first half of 2023 was RMB 421,472,000, compared to a loss of RMB 305,388,000 in the first half of 2022, indicating a deterioration in performance[45]. - The group reported a net loss of RMB 341,524,000 due to impairment losses on completed and under-construction properties[111]. - The company reported a net loss of RMB 421.5 million for the six months ended June 30, 2023, compared to a net loss of RMB 305.4 million for the same period in 2022, representing a year-over-year increase in loss of approximately 37.9%[140]. Revenue Sources - Revenue from property development and sales was RMB 271.4 million, an increase of 4.4% from RMB 259.9 million in the same period of 2022, accounting for 83.3% of total revenue[23]. - Hotel operations generated revenue of RMB 35.6 million, a 9.9% increase from RMB 32.4 million in the same period of 2022[28]. - Property management services revenue reached RMB 15.6 million, a 22.8% increase from RMB 12.7 million in the same period of 2022[29]. - The commercial property investment revenue remained stable at RMB 3.2 million during the review period[30]. Cost Management - The sales and marketing expenses amounted to RMB 31.7 million, a decrease of 16.1% compared to RMB 37.8 million in the same period of 2022, representing 3.5% of total contract sales[21]. - Administrative expenses for the group were RMB 40.5 million for the first half of 2023, a decrease of 27.5% from RMB 55.9 million in the first half of 2022, representing 4.5% of total contract sales[136]. - Financing costs for the period were RMB 158,291 thousand, with net financing costs at RMB 13,203 thousand[119]. Market Conditions - The total real estate development investment in China for the first half of the year was RMB 5.9 trillion, a decrease of 7.9% year-on-year[19]. - The total sales area of commercial housing was 595 million square meters, a decrease of 5.3% year-on-year[19]. - The total sales amount of commercial housing was RMB 6.31 trillion, an increase of 1.1% year-on-year[19]. - The group is subject to various government regulations and macroeconomic control measures affecting the real estate industry in China, which may adversely impact available operating funds[77]. Financial Position - As of June 30, 2023, trade payables amounted to RMB 770,170,000, a decrease from RMB 832,347,000 as of December 31, 2022[40]. - The total assets as of June 30, 2023, were RMB 11,959.3 million, a decrease from RMB 12,487.3 million as of December 31, 2022[47]. - The group had total bank and other borrowings of RMB 3,471 million as of June 30, 2023, with RMB 2,703 million due within 12 months[57]. - The total liabilities as of June 30, 2023, were RMB 8,714.3 million, compared to RMB 8,769.2 million as of December 31, 2022[75]. - The net debt ratio was 84.8%, with cash and bank balances amounting to RMB 718.0 million[71]. - The group’s total liabilities as of June 30, 2023, are RMB 4,629,820 thousand[90]. - The total interest-bearing borrowings and preferred shares amounted to RMB 3,470.7 million as of June 30, 2023, compared to RMB 3,628.5 million as of December 31, 2022[183]. Strategic Initiatives - The company is focusing on enhancing operational efficiency through cost control measures and improving service quality in property management[33]. - The company plans to launch new tourism and residential projects to capture post-pandemic demand, contributing to sales performance[31]. - The group is actively pursuing market expansion and restructuring to enhance organizational efficiency and management effectiveness[38]. - The group plans to monitor the construction progress of its property development projects closely to ensure timely completion and delivery to customers[79]. - The group aims to successfully extend and renew its bank financing and other borrowings, including project loans and priority notes, due in January 2024[81]. Dividend Policy - The company has decided not to declare an interim dividend for the six months ended June 30, 2023[5]. - The group has not declared any interim dividend for the six months ended June 30, 2023[71]. - The group did not declare an interim dividend for the six months ended June 30, 2023[191]. Risk Management - The group emphasized a cautious approach to financial management, focusing on cash flow management and risk reduction to support future sustainability[38]. - The financial liabilities remain a significant concern, with ongoing risks of defaults among property companies in the market[38]. - The group faces significant uncertainty regarding its ability to continue as a going concern, dependent on its ability to generate sufficient financing and operating cash flows[61]. - The group has successfully obtained additional financing resources when necessary[62]. Taxation - The company’s income tax expense is calculated based on an applicable corporate income tax rate of 25% for its operations in mainland China[120]. - The corporate income tax expense for the review period was RMB 39.4 million, up from a tax credit of RMB 30.0 million in the first half of 2022, primarily due to the impact of not recognizing deferred tax assets for losses[163]. - The group has no taxable profits in Hong Kong for the six months ended June 30, 2023, similar to the previous year[99].

Shareholding and Stock Options - The company has a significant shareholder, Mr. Chan Si Ming, holding 1,200,000,000 shares, which represents approximately 72.9% of the total issued share capital[15]. - Mr. Liu Hua Xi holds a 2.5% interest in Zhongshan Jingyue, which is part of the company's joint venture[16]. - No stock options were granted or agreed upon during the year ending December 31, 2022[11]. - The stock option plan will remain effective for ten years from the adoption date, expiring on the business day before the tenth anniversary[8]. - The company can terminate the stock option plan at any time by resolution at a shareholders' meeting, but previously granted options will remain valid[10]. - The company must notify all option holders regarding any proposed restructuring or merger plans on the same day as the meeting notice to shareholders[1]. - All unexercised stock options will become invalid and terminate upon the effectiveness of any approved restructuring or arrangement[4]. - The board is required to make efforts to ensure that shares issued due to exercised options become part of the company's issued capital upon the effective date of any arrangement[1]. - The company has no arrangements to grant rights to purchase shares or debt securities to any directors or their immediate family members during the year ending December 31, 2022[12]. - The stock option plan can be amended by board resolution, but any significant changes must be approved by shareholders at a general meeting[9]. - As of December 31, 2022, major shareholders hold approximately 72.9% of the company's issued share capital, totaling 1,200,000,000 shares[19]. Financial Performance - The group's revenue for the year ended December 31, 2022, was RMB 513 million, a decrease of 75% compared to RMB 2,043 million for the year ended December 31, 2021[129]. - The group recorded a net loss of RMB 888 million for the year ended December 31, 2022[129]. - As of December 31, 2022, the total amount of bank and other borrowings was RMB 3,628 million, with RMB 1,797 million due within 12 months[129]. - The group's cash and cash equivalents amounted to RMB 187 million as of December 31, 2022[129]. - The board believes that the group will have sufficient operating funds to meet its financing obligations for the next twelve months[139]. - The company has implemented plans to alleviate liquidity pressure and improve financial conditions, as detailed in the financial statements[107]. Corporate Governance - The board of directors confirmed adherence to all corporate governance code provisions throughout the fiscal year ending December 31, 2022[45]. - The company has adopted a standard code for securities trading by directors, ensuring compliance throughout the fiscal year[46]. - The company has appointed at least three independent non-executive directors, constituting at least one-third of the board members, in compliance with listing rules[81]. - The independent non-executive directors do not receive performance-related equity compensation, ensuring their objectivity and independence[55]. - The board of directors is composed of five executive directors and three independent non-executive directors, all of whom possess extensive experience and professional knowledge[76]. - The term for independent non-executive directors is fixed at three years, starting from December 5, 2022, with the possibility of termination by either party with a three-month written notice[61]. - The board meets at least four times a year, with additional meetings as necessary, ensuring adequate time for discussion of relevant issues[70]. - The company has mechanisms in place to ensure the board receives independent viewpoints, with annual reviews of the effectiveness of these mechanisms[77]. - The nomination committee was established on November 13, 2019, to review the board's structure and composition at least annually[85]. - The company has complied with listing rules regarding the appointment of independent non-executive directors, ensuring at least one has appropriate professional qualifications or financial management expertise[81]. - Independent non-executive directors are required to notify the company promptly of any changes in their personal information that may significantly affect their independence[79]. - The board held a total of five meetings during the fiscal year, ensuring all directors allocated reasonable time to follow up on company matters[94]. - The nomination committee was established on November 13, 2019, and is responsible for proposing candidates for the board, ensuring diversity and quality requirements are met[99]. - The audit committee, consisting of three independent non-executive directors, oversees the integrity of financial statements and risk management systems[96]. - The board is responsible for ensuring clear and balanced financial disclosures in annual and interim reports[103]. - The remuneration committee reviewed and assessed the compensation of directors and senior management during the fiscal year[98]. - The board aims to maintain a balance of skills and experience among its members, considering diversity as a key factor in nominations[88]. - The company encourages active participation from all directors in board matters, ensuring decisions reflect a consensus[90]. - The company has adopted a board diversity policy to enhance governance and efficiency, emphasizing the importance of diverse skills and backgrounds[123]. - The remuneration committee consists of one executive director and three independent non-executive directors, ensuring transparency in compensation policies[120]. - The company’s remuneration policy aims to provide competitive market salaries to attract and retain high-quality talent[126]. - The board of directors has a balanced mix of knowledge and skills, with members aged between 34 and 70 years[124]. - The company’s audit report for the fiscal year ending December 31, 2022, reflects compliance with applicable accounting standards[128]. - The company has implemented strict internal controls to prevent unauthorized use of confidential information[109]. - The board meetings and committee meetings were attended by all directors, demonstrating strong governance practices[116]. - The company is committed to timely disclosure of insider information as per regulatory requirements[109]. Operational Highlights - The total land reserve of the group reached approximately 3.9 million square meters as of December 31, 2022[152]. - The group operates in five provinces, focusing on property development, hotel operations, property management, and commercial property investment[152]. - The company emphasizes its positioning as an "ecological and cultural real estate developer" based on selected project locations and cultural heritage[148]. - The company successfully issued $152.1 million 7.5% senior notes due in 2023, with an exchange offer completed for $149.6 million of existing notes[178]. - As of December 31, 2022, the company has a total land reserve of approximately 3.9 million square meters across 36 property projects in 11 cities[189]. - The company has completed the delivery of two projects, Qingyuan Jingye Yongjing Garden and Zhaoqing Jingye Yifang Tiandi, by September 30, 2022, fulfilling market commitments[180]. - The company has expanded its hotel brand with the opening of Zhuosi Dao Yueshe in Guangzhou, enhancing its diversified strategic layout[166]. - The company has a total of 36 projects, with 15 under construction and 11 planned for future development[190]. - The company is focusing on rural revitalization as part of its strategic initiatives[166]. - The company has received multiple awards, including being recognized as a council member unit by Guangdong Housing Association for the period 2022-2026[181]. - The company has a significant presence in various provinces, including Guangdong, Hunan, Jiangsu, and Yunnan, with ongoing projects in these regions[190]. - The company is committed to enhancing its property management services, as evidenced by its recognition as an outstanding member unit by Hunan Zhuodu Property Service Co., Ltd.[169]. - The company reported a total land area of 1,000,000 square meters for future development projects, with an estimated total building area of 500,000 square meters[192]. - The completed and unsold rental properties amount to 200,000 square meters, representing 20% of the total land area[194]. - The company has ongoing construction projects totaling 300,000 square meters, with an expected completion date in 2024[196]. - The residential projects in Hainan Province cover an area of 58,823 square meters, with no unsold or rental properties reported[196]. - The company plans to expand its market presence in Guangdong Province, with new projects covering an area of 252,047 square meters[196]. - The total estimated building area for future developments in Yunnan Province is projected to be 113,842 square meters[196]. - The company has a strategic focus on residential properties, with 100% ownership in all listed projects[196]. - The total area of completed projects is 1,000,000 square meters, with a significant portion already sold or rented out[194]. - The company is exploring potential acquisitions to enhance its market position and expand its portfolio[200]. - The projected total building area for the next phase of development is estimated at 400,784 square meters, with a completion target of 2024[196]. Compliance and Safety - No significant safety incidents or claims for personal or property damage were reported during the fiscal year ending December 31, 2022[35]. - The company has not incurred any major fines or penalties for non-compliance with environmental laws and regulations as of December 31, 2022[34].

Financial Performance - The company's confirmed revenue for the year ended December 31, 2022, was RMB 513.3 million, a decrease of 74.9% compared to RMB 2,043.1 million in 2021[13]. - The net loss for the year was RMB 887.8 million, while the profit for 2021 was RMB 198.8 million, resulting in a loss attributable to shareholders of RMB 721.9 million compared to a profit of RMB 216.4 million in 2021[13]. - The group recorded a net loss of RMB 887.8 million in 2022, compared to a net profit of RMB 198.8 million in 2021, with a loss attributable to the owners of the company amounting to RMB 721.9 million[34]. - Basic and diluted loss per share for 2022 was RMB (0.44), compared to earnings of RMB 0.13 per share in 2021[5]. - The gross loss after deducting impairment losses for completed and under-construction properties was RMB 605.9 million, compared to a gross profit of RMB 583.2 million in 2021[85]. - The company's selling and marketing expenses for 2022 were RMB 66.3 million, down 56.8% from RMB 153.3 million in 2021, accounting for 3.2% of total contract sales[79]. - The share of profits from investments accounted for using the equity method decreased from RMB 23.6 million in 2021 to RMB 3.0 million in 2022, primarily due to reduced property deliveries[76]. - The company reported a net loss of RMB 887.8 million for the year, compared to a profit of RMB 198.8 million in 2021[85]. Property Management and Development - The total number of managed properties as of December 31, 2022, was 9,790 units, with a total managed area of 1.365 million square meters, adding 3,478 units and 284,400 square meters during the year[18]. - The property management service revenue for 2022 reached RMB 28.8 million, an increase of 29.7% from RMB 22.2 million in 2021, primarily due to stable growth in managed property area[28]. - The average gross profit margin before impairment losses for the top three cities (Zhaoqing, Tengchong, and Qingyuan) was 19.7%, accounting for 64.4% of the total property development and sales revenue in 2022[30]. - The annual contracted sales amounted to RMB 2,064.4 million, a decrease of 51.0% year-on-year; the total contracted sales area was approximately 198,000 square meters, down 40.7% from 2021[107]. - Revenue from property development and sales in 2022 was RMB 413.8 million, down 78.6% from RMB 1,932.5 million in 2021, accounting for 80.6% of total group revenue[184]. Financial Position and Liabilities - As of December 31, 2022, total assets were RMB 12,487.3 million and total liabilities were RMB 8,769.2 million, representing a decrease of 10.3% and 4.1% respectively compared to December 31, 2021[35]. - The group's total borrowings amounted to RMB 3,628.5 million as of December 31, 2022, a decrease from RMB 4,495.7 million in 2021[63]. - The net debt ratio as of December 31, 2022, was 73.8%, with total borrowings amounting to RMB 3,628.5 million and an average effective interest rate of 6.79%[84]. - The company's current tax liabilities were RMB 393,307 thousand, a decrease of 8.6% from RMB 430,363 thousand in 2021[152]. - The total trade receivables as of December 31, 2022, were RMB 1,481.6 million, compared to RMB 1,299.6 million as of December 31, 2021[196]. Cash Flow and Financing - As of December 31, 2022, cash and bank balances totaled RMB 884.7 million, down from RMB 2,299.8 million on December 31, 2021[61]. - The group's cash and cash equivalents were RMB 187 million as of December 31, 2022[95]. - The group plans to negotiate with banks to extend financing credit and secure new financing to support project-related expenditures[116]. - The group aims to enhance cash flow management and reduce debt ratios while exploring new business models to create higher capital efficiency[178]. - The group has implemented measures to monitor cash flow and ensure sufficient operational funds to meet upcoming financial obligations[116]. Outlook and Strategic Plans - The company will maintain a "cautiously optimistic" outlook for 2023, focusing on stable development and cash flow management to ensure financial stability[20]. - The group plans to accelerate the pre-sale and sale of its properties under construction and completed properties[98]. - The group intends to deepen existing projects and implement a more prudent financial strategy in 2023[178]. - The group will continue to seek alternative financing and loans to meet its existing financial obligations and future operating expenses[98]. - There is significant uncertainty regarding the group's ability to continue as a going concern, dependent on generating sufficient financing and operating cash flows[99]. Regulatory and Market Conditions - The company faced regulatory restrictions and macroeconomic control measures from the Chinese government affecting its operational liquidity[114]. - The majority of the group's consolidated revenue and performance is derived from the Chinese market, with most non-current assets located within China[104].

Financial Performance - The company achieved contract sales of approximately RMB 1,262.0 million, a year-on-year decrease of 49.2% compared to RMB 2,486.4 million for the six months ended June 30, 2021[16]. - The confirmed revenue for the period was RMB 308.2 million, down 70.4% year-on-year, with a loss of RMB 305.4 million compared to a profit of RMB 168.4 million in the same period of 2021[16]. - The company's confirmed revenue for the first half of 2022 was RMB 308.2 million, a decrease of 70.4% compared to RMB 1,042.8 million in the same period of 2021[34]. - The operating loss for the first half of 2022 was RMB 324.1 million, while the operating profit for the same period in 2021 was RMB 308.7 million[34]. - The total contracted sales amount for the company was approximately RMB 1,262.0 million, a decrease of 49.2% from RMB 2,486.4 million in the first half of 2021[37]. - Revenue from hotel operations decreased by 6.1% to RMB 32.4 million compared to RMB 34.5 million in the same period of 2021[41]. - Revenue from commercial property investments decreased by 38.5% to RMB 3.2 million, down from RMB 5.2 million in the same period of 2021[43]. - Gross profit decreased by 85.1% to RMB 61.4 million, with a gross margin dropping from 39.5% to 19.9%[46]. - The total comprehensive loss for the six months ended June 30, 2022, was RMB 366,469 thousand, compared to a total comprehensive income of RMB 174,019 thousand in the same period of 2021[142]. - The group recorded a net loss of RMB 305 million for the six months ended June 30, 2022[155]. Land and Property Development - The company had approximately 4 million square meters of land reserves as of June 30, 2022, across 12 cities with 38 property projects[17]. - The company has made significant progress in its urban renewal business, with the Zhujiang Village renovation project included in the Guangzhou 2022 Urban Renewal Project Implementation Plan[26]. - The company has a total land reserve of approximately 4 million square meters, with an average land cost of RMB 1,815 per square meter[78]. - The group owns 38 property projects across 12 cities, with 35 projects developed and owned by the group and 3 developed by joint ventures and associates[78]. - The company is focused on residential and commercial property types, indicating a diversified portfolio in real estate development[84]. - The company is actively expanding its land reserves and project pipeline, reflecting a strategic approach to growth in the real estate market[84]. - The company is developing multiple residential projects across various provinces, with significant projects in Yunnan and Guangdong provinces[98]. - The company has a strong pipeline of projects, with several scheduled for completion in 2023 and 2024, indicating robust future growth potential[98]. Financial Position and Cash Flow - As of June 30, 2022, the group's total cash and bank balances were RMB 1,497.5 million, down from RMB 2,299.8 million as of December 31, 2021[52]. - The group's total borrowings amounted to RMB 4,207.8 million as of June 30, 2022, a decrease from RMB 4,495.7 million as of December 31, 2021[53]. - The group's net debt ratio was maintained at a low level of 61.6% as of June 30, 2022[60]. - The group had unused borrowing facilities of approximately RMB 465.2 million as of June 30, 2022, compared to RMB 782.7 million as of December 31, 2021[52]. - The group reported a net cash outflow from investing activities of RMB 34,591 thousand, compared to a cash inflow of RMB 31,908 thousand in the previous year[148]. - The group had cash and cash equivalents of RMB 459 million as of June 30, 2022[155]. - The group has unutilized non-committed project loan financing and general financing credit lines amounting to RMB 465 million as of June 30, 2022[157]. - The board believes that the group will have sufficient operating funds to meet its financing obligations for the next twelve months[159]. Corporate Governance and Management - The company is committed to maintaining good corporate governance practices, adhering to all applicable codes during the reporting period[105]. - The company has implemented a share option plan to attract and retain top talent[120]. - The share option plan was conditionally approved by shareholders on November 13, 2019, to incentivize employees and partners[120]. - The company is committed to providing competitive salaries and benefits compared to market standards[117]. - The company has established a medical insurance and social insurance contribution plan in accordance with applicable Chinese laws[118]. Operational Efficiency and Cost Management - The company is focusing on optimizing its organizational structure to reduce costs and improve operational efficiency in response to the challenging market conditions[23]. - Sales and marketing expenses for the group amounted to RMB 378 million, a decrease of 21.7% compared to RMB 483 million in the same period of 2021, representing 12.3% of total revenue[48]. - Administrative expenses were RMB 559 million, down 26.3% from RMB 758 million in the same period of 2021, accounting for 18.1% of total revenue[48]. - Total expenses amounted to RMB 617,392 thousand, a decrease of 18.2% from RMB 754,685 thousand in the same period last year[200]. Market and Segment Performance - The group operates in four business segments: property development and sales, commercial property investment, hotel operations, and property management[173]. - The group reported segment revenue of RMB 311,612 thousand for the six months ended June 30, 2022, with property development contributing RMB 259,853 thousand[178]. - The gross profit for the property development and sales segment was RMB 406,222,000, representing a significant contribution to overall profitability[182]. - The group's external customer revenue from property management was RMB 12,657 thousand, contributing to the overall segment performance[178].