Audit and Risk Management - The Audit Committee held four meetings during the reporting period on 31 March 2022, 29 April 2022, 31 August 2022, and 31 March 2023[3] - The internal audit team reports directly to the Audit Committee and ensures proper handling and dissemination of inside information in compliance with regulatory guidelines[27] - The company maintains a risk management framework with responsibilities delegated to the audit committee[39] - Internal audit reviews are conducted on a rotational basis, with reports delivered directly to the audit committee[44] - The company has established a risk management communication channel to ensure timely and accurate information flow[45] - The company has implemented procedures and internal controls to handle and disseminate insider information[46] - The company's internal audit function reports directly to the audit committee[46] Board and Committee Activities - The Nomination Committee reviewed the Board composition, diversity policy implementation, and succession planning for Directors[6] - The Remuneration Committee reviewed and made recommendations on the remuneration packages of executive Directors and senior management, ensuring no Director decides their own remuneration[8][10] Financial Performance and Dividends - The Board considers factors such as financial performance, retained earnings, debt-to-equity ratio, and economic conditions when proposing dividend payouts[16] - The company did not recommend payment of a final dividend for the reporting period[34] - Revenue for the reporting period was approximately RMB1,391.7 million, representing an increase of 1.5 times compared to 2021[94] - Gross profit for the reporting period was approximately RMB436.7 million, an increase of 45.7% compared to 2021[94] - Loss attributable to equity shareholders was approximately RMB631.6 million, compared to a profit of RMB15.4 million in 2021[94] - Gross profit margin decreased to 31.4% in 2022 from 53.8% in 2021, a drop of 22.4 percentage points[96] - Gearing ratio increased to 175.2% in 2022 from 99.1% in 2021, a rise of 76.1 percentage points[96] - Cash and bank balances (including cash equivalents and restricted cash) increased to RMB1,078.1 million in 2022 from RMB907.8 million in 2021[96] Property Development and Sales - The company's subsidiaries are primarily engaged in investment holding, property development, and sales/rental of developed properties[51] - The Group's contracted sales during the reporting period amounted to RMB1,839.5 million, representing a 22.6% increase compared to 2021[88][89] - The contracted saleable gross floor area (GFA) was approximately 121,326.6 square meters, a 21.3% increase from 2021[88][89] - The contracted average selling price (ASP) was approximately RMB15,161.6 per square meter, a 1.1% increase over 2021[88][89] - Contracted sales for 2022 were RMB1,839.5 million, an increase from RMB1,500.6 million in 2021[96] - Contracted saleable GFA for 2022 was 121,326.6 sq.m., up from 100,016.2 sq.m. in 2021[96] - The GFA of delivered properties increased to 114,657.3 sq.m., a 7.2 times increase compared to 2021[120] - Revenue from property sales was approximately RMB1,387.0 million, a 1.5 times increase compared to 2021, accounting for 99.7% of total revenue[120] - Completed property projects as of 31 December 2022 amounted to RMB1,914.6 million, a 3.8 times increase compared to 2021[121] - The Sanya Phoenix Aqua City South Shore project has a completed GFA of 122,025.4 sq.m. with a saleable GFA of 87,958.2 sq.m.[124] - The Haikou Phoenix Aqua City Phase I project has a completed GFA of 45,988.0 sq.m. with a saleable GFA of 34,216.6 sq.m.[124] - The Zhanjiang City Binjianghua Fu project has a completed GFA of 93,635.6 sq.m. with a saleable GFA of 93,635.6 sq.m.[124] - The Group's property investment ownership interests range from 53.2% to 100% across various projects[124] - Contracted sales for 2022 reached RMB 1,839.5 million, a 22.6% increase compared to 2021[131] - Contracted sales GFA for 2022 was 121,326.6 sq.m., a 21.3% year-on-year increase[131] - The average selling price per sq.m. for contracted sales in 2022 was RMB 15,161.6, a 1.1% increase from 2021[131] - 99.6% of the completed GFA remaining undelivered at the end of 2022 was located in the PRC[135][137] - The Group had 8 property projects under development as of 31 December 2022, amounting to RMB 4,393.6 million, a 36.2% decrease compared to 2021[161][163] - Certain projects under development in the PRC with carrying amounts of RMB 2,035.7 million were written down by RMB 693.0 million to their net realisable values due to the decline in expected unit selling prices in Danzhou and Haikou regions[163][175] - The Sanya Phoenix Aqua City South Shore project is expected to be completed by 30 December 2024, with a GFA under development of 302,810.1 sq.m.[165] - The Jingzhuya Court project is expected to be completed by 30 December 2023[168] - The total GFA for all projects as of 2022 was 390,191.7 sq.m., compared to 349,129.4 sq.m. in 2021[146] - The Hamilton Sierra Vista project in San Jose, USA, had a contracted GFA of 2,377.0 sq.m. and contracted sales of RMB 189.4 million in 2022[130] - The carrying amount of a development property project is RMB 331.0 million, with a cumulative impairment of RMB 153.8 million, which was transferred to construction in progress classified as property, plant, and equipment for future development upon change of use[177] - The total gross floor area (GFA) under development is 829,532.3 sq.m, with 96,653.6 sq.m pre-sold[194] - The Hailan Rongjing project in Danzhou Phoenix Shores has a GFA of 730,429.2 sq.m, with a 99.45% ownership interest[185] - The Zhanjiang Suixi No. 1 project in Guangdong has a GFA of 10,159.6 sq.m and a pre-sold area of 11,327.6 sq.m[188] - The Shibu Resident Committee project in Foshan has a GFA of 15,166.1 sq.m and a pre-sold area of 2,181.0 sq.m, with an expected completion date of 2024.06.30[189] - The Hailan Zhongtang project in Nanjing has a GFA of 22,371.9 sq.m and a 70% ownership interest[191] - The C65 Regulatory Plan for the First and Second Cluster Area in Binhai New District has a GFA of 412,200.3 sq.m[192] Investment Properties - The carrying amount of investment properties as of 31 December 2022 was RMB461.4 million, pledged for bank borrowings[68] - The rental income from investment properties is reported under the investment property segment[200] Debt and Equity - The gearing ratio as of 31 December 2022 was 175.2%, up from 99.3% in 2021[60] - The Group's debt-to-equity ratio (total debt divided by total equity) as of 31 December 2022 was 175.2%, compared to 99.3% in 2021[75] Strategic Focus and Expansion - The Group is focusing on projects in Hainan Province, aiming to establish a closed operation system by the end of 2025[90] - The Group is expanding into new regions nationwide, optimizing its metropolitan portfolio, and focusing on mainstream cities[90] Asset Disposal and Impairment - The company disposed of 65% equity interest in Jiangxi Hailan for a total consideration of RMB 39,210,172[59] - The carrying amount of properties under development and completed properties held for sale was RMB2,392.2 million and RMB435.8 million respectively, pledged for bank and other borrowings[68] Diversity and Inclusion - The Company achieved gender diversity in its workforce, including senior management, and will continue to consider diversity perspectives in hiring[13][14] Shareholder Relations - The company values shareholder feedback to enhance transparency and investor relationships[53]

Financial Performance - The company's revenue for the year ended December 31, 2022, was RMB 1,158,230 thousand, an increase from RMB 945,130 thousand in 2021, representing a growth of approximately 22.5%[6] - The gross profit for 2022 was RMB 436,711 thousand, compared to RMB 299,694 thousand in 2021, indicating a gross profit margin of 31.4%, down 22.4 percentage points from the previous year[7][12] - The company reported a net loss attributable to shareholders of RMB 631,634 thousand for 2022, compared to a profit of RMB 15,448 thousand in 2021, reflecting a significant decline in profitability[12] - The financial income for 2022 was RMB 8,936 thousand, an increase from RMB 5,827 thousand in 2021, while financial costs decreased from RMB 32,197 thousand to RMB 27,766 thousand[12] - The company's basic and diluted loss per share for 2022 was RMB (2.11), a decline from RMB 0.05 in 2021, highlighting the adverse impact on shareholder value[12] - The total comprehensive loss for the year amounted to HKD 611,446,000, compared to a loss of HKD 46,275,000 in the previous year[35] - The company's bank interest income rose to RMB 8,936,000 in 2022 from RMB 5,827,000 in 2021, reflecting a growth of 53.9%[59] - The net financial cost decreased to RMB (18,830,000) in 2022 from RMB (26,370,000) in 2021, indicating an improvement of 28.5%[59] - The net loss attributable to owners for 2022 was RMB (631.6) million, compared to a profit of RMB 15.4 million in 2021[97] - The group recorded a loss attributable to shareholders of approximately RMB 631.6 million, compared to a profit of RMB 15.4 million in 2021, primarily due to impairment losses on development properties[112] Revenue and Sales - The company's total revenue from contracts with customers was RMB 1,391,710 thousand for the year, compared to RMB 557,571 thousand in 2021, marking a substantial increase[12] - Total revenue for 2022 reached RMB 1,391,710,000, a significant increase of 149% compared to RMB 557,571,000 in 2021[49] - The revenue from property sales (excluding Phase I of Danzhou) was RMB 1,386,961,000 in 2022, up from RMB 552,928,000 in 2021, representing a growth of 150.9%[73] - The group's revenue during the reporting period was approximately RMB 1,391.7 million, representing an increase of about 150% compared to 2021[137] - Property sales revenue was approximately RMB 1,387.0 million, an increase of about 1.5 times compared to 2021, accounting for 99.7% of total revenue[102] Operational Performance - The company’s operating loss for 2022 was RMB 456,064 thousand, compared to an operating profit of RMB 116,671 thousand in 2021, indicating a substantial operational downturn[12] - The company’s financial performance was impacted by a significant increase in administrative expenses, which rose from RMB 67,587 thousand in 2021 to RMB 75,434 thousand in 2022[12] - The total liabilities amounted to approximately RMB 7,662.0 million, an increase from approximately RMB 7,269.2 million in 2021[143] - The group reported a significant increase in trade payables to third parties, amounting to RMB 1,080.46 million, up from RMB 873.64 million in 2021[200] Assets and Liabilities - The group's total assets, less current liabilities, stood at HKD 2,888,628,000, compared to HKD 3,316,831,000 in the previous year[37] - The net asset value of current assets was HKD 2,074,067,000, reflecting a decrease from HKD 3,150,597,000 year-on-year[37] - The group's cash and cash equivalents totaled HKD 594,623,000, compared to HKD 454,088,000 in the previous year[37] - The total assets as of December 31, 2022, were RMB 8,698.5 million, a decrease of 2.5% from RMB 8,925.7 million in 2021[97] - The group's total liabilities were approximately RMB 7,661.97 million, reflecting a slight increase from RMB 7,269.19 million in the previous year[187] Market and Strategic Focus - The company is focusing on expanding its market presence, particularly in the Hainan Free Trade Port, which has shown significant economic development[67] - The management highlighted ongoing challenges in the real estate sector, including declining market confidence and increased pressure on sales and pricing strategies[67] - The company aims to enhance its project focus in Hainan Province and prepare for the full island closure operation by the end of 2025[93] - The group plans to continue investing in property development projects and acquiring suitable land parcels in China, Hong Kong, Southeast Asia, and North America[118] - The group plans to enhance product and service capabilities while actively seeking new regional entries across the country[125] Employee and Administrative Information - The group employed 222 staff members as of December 31, 2022, down from 328 employees in 2021, with employee costs amounting to approximately RMB 56.0 million during the reporting period[150] - Administrative expenses decreased by 8.8% to approximately RMB 109.3 million, mainly due to reduced personnel costs and tax surcharges[109] Compliance and Governance - The annual performance report for the reporting period has been reviewed and approved by the audit committee[173] - The financial statements are prepared in accordance with applicable accounting standards and legal requirements[169] - The company maintains sufficient public float as required by listing rules during the reporting period[173] - The group has not engaged in any purchase, sale, or redemption of its listed securities during the reporting period[172]

Sales Performance - The contracted sales of Hailan Holdings amounted to RMB 1,106.0 million, representing a decrease of 32.9% compared to 2021[23]. - The contracted saleable gross floor area (GFA) was approximately 77,435.3 square meters, reflecting a decrease of approximately 31.9% from 2021[23]. - The contracted average selling price (ASP) was approximately RMB 14,282.9 per square meter, indicating a decrease of approximately 1.5% from 2021[23]. - Contracted sales for the reporting period were approximately RMB 1,106.0 million, a decrease of approximately 32.9% compared to RMB 1,647.8 million in the corresponding period of 2021[43]. - The contracted saleable gross floor area (GFA) was 77,435.3 sq.m., representing a decrease of approximately 31.9% compared to 113,665.3 sq.m. in the corresponding period of 2021[43]. - The average selling price (ASP) of contracted sales was RMB 14,282.9 per sq.m., a slight decrease of approximately 1.5% compared to RMB 14,496.9 per sq.m. in the corresponding period of 2021[43]. - Revenue from property sales amounted to approximately RMB 397.2 million, representing an increase of approximately 6.0% compared to RMB 374.6 million in the corresponding period of 2021[46]. - Revenue from property sales (excluding Danzhou Phase I) was RMB 397,168,000, up from RMB 374,578,000, reflecting a growth of 6.0% year-over-year[182]. Financial Performance - For the reporting period, the Group's revenue was approximately RMB400.1 million, representing an increase of approximately 5.9% compared to the corresponding period of 2021[35]. - The gross profit decreased by 56% from approximately RMB229.8 million in 2021 to approximately RMB101.0 million in 2022[35]. - The loss attributable to owners of the Company was approximately RMB30.8 million, compared to a profit of approximately RMB43.1 million in the corresponding period of 2021[35]. - Gross profit decreased to RMB 101,115, down 56.0% from RMB 229,773 in the prior year[125]. - Operating profit significantly declined to RMB 26,234, a decrease of 83.4% from RMB 157,562 in the previous year[125]. - Profit before taxation fell to RMB 10,927, down 91.7% from RMB 131,082 in the same period last year[125]. - The company reported a loss for the period of RMB 39,578, compared to a profit of RMB 13,928 in the same period of 2021[125]. - Total comprehensive loss for the period was RMB 31,314, compared to a comprehensive income of RMB 11,997 in the prior year[128]. Assets and Liabilities - Total assets increased by 10.8% to RMB9,889.6 million as of June 30, 2022, compared to RMB8,925.7 million as of December 31, 2021[38]. - As of 30 June 2022, the Group's total liabilities amounted to approximately RMB8,264.3 million, an increase from approximately RMB7,269.2 million as of 31 December 2021[75]. - The Group's gearing ratio as of 30 June 2022 was 123.3%, up from approximately 99.1% as of 31 December 2021[76]. - The carrying amount of properties under development and completed properties held for sale was approximately RMB2,674.9 million as of 30 June 2022, compared to RMB1,772.5 million as of 31 December 2021[84]. - Reportable segment assets as of June 30, 2022, totaled RMB 9,793,550,000, an increase from RMB 8,830,192,000 as of December 31, 2021, representing a growth of about 11%[198]. - Reportable segment liabilities as of June 30, 2022, were RMB 8,260,420,000, up from RMB 7,265,213,000 as of December 31, 2021, reflecting an increase of approximately 14%[198]. Corporate Governance - The company has adopted the Corporate Governance Code and complied with its provisions, except for a deviation regarding the roles of chairman and CEO[104][105]. - The company believes that combining the roles of chairman and CEO in Ms. Zhou Li ensures consistent leadership and effective strategic planning[105]. - The board comprises experienced individuals, with more than one-third being independent non-executive directors, ensuring a balance of power[106]. - The company is committed to high standards of corporate governance to protect shareholders' interests[104][107]. - The company emphasizes the importance of transparency and accountability in corporate governance for maximizing shareholder interests[104]. Development Strategy - The Group will focus on development projects in Hainan Province, leveraging opportunities from the free trade port initiative[30]. - Overseas projects in North America have entered a harvest period, expected to contribute capital and profit to the Group[30]. - The Group is actively seeking to enter new regions nationwide while optimizing its city presence[30]. - The Group plans to continue investing in property development projects and acquiring suitable land parcels in the PRC, Hong Kong, Southeast Asia, and the USA[76]. Cash Flow and Financing - Cash flows used in operating activities amounted to RMB 153,256,000, with cash from operations at RMB 3,605,000, income tax paid at RMB 112,777,000, and interest paid at RMB 44,084,000[151]. - New bank borrowings raised amounted to RMB 519,823, an increase of 261.5% compared to RMB 143,855 in the same period last year[152]. - Net cash from financing activities was RMB 320,827, up from RMB 149,221, representing a growth of 115.5% year-on-year[152]. - Cash and cash equivalents at the end of the period were RMB 468,122, a decrease of 60.5% from RMB 1,185,843 at the end of the previous year[152]. - The total net increase in cash and cash equivalents was RMB 5,566, a substantial decrease from RMB 460,234 in the previous year[152].

Sales Performance - The contracted sales of Hailan Holdings amounted to RMB1,500.6 million, representing a decrease of 35.0% compared to 2020[18]. - The contracted saleable gross floor area (GFA) was approximately 100,016.2 square meters, reflecting a decrease of approximately 41.8% from 2020[18]. - The average selling price (ASP) was about RMB15,003.5 per square meter, indicating an increase of approximately 11.7% over 2020[18]. - For the reporting period, the Group recorded contracted sales of approximately RMB1,500.6 million, representing a decrease of approximately 35.0% compared to 2020[42]. - The contracted saleable GFA was 100,016.2 sq.m., representing a decrease of approximately 41.8% year-on-year[42]. - The ASP of contracted sales was RMB15,003.5 per sq.m., representing an increase of approximately 11.7% year-on-year[42]. - The total gross floor area (GFA) of delivered properties decreased to 13,973.9 sq.m., representing a decrease of approximately 48.5% compared to 2020, with revenue from property sales amounting to approximately RMB 552.9 million, a decrease of about 22.7%[45]. Financial Performance - The Group's revenue for the period was approximately RMB557.6 million, a decrease of approximately 22.6% compared to 2020[33]. - Gross profit for the period was approximately RMB299.7 million, representing a decrease of 8.1% compared to the previous year[33]. - Profit attributable to equity shareholders was approximately RMB15.4 million, down from RMB64.0 million in 2020[35]. - Basic earnings per share were RMB0.05, compared to RMB0.21 in 2020[35]. - The Group's total revenue for the reporting period was approximately RMB557.6 million, a decrease of about 22.6% compared to 2020[59]. - The cost of sales was approximately RMB257.9 million, representing a decrease of approximately 34.6% compared to 2020[59]. - Net finance costs for the reporting period amounted to approximately RMB26.4 million, an increase compared to RMB13.0 million in 2020[59]. - Income tax expenses decreased by 14.0% to approximately RMB132.0 million, primarily due to lower operating profit recorded during 2021[59]. - The profit attributable to owners of the Company for the Reporting Period was approximately RMB15.4 million, a decrease from RMB64.0 million in 2020, primarily due to a decrease in properties delivered and increased operating expenses[62]. Market Conditions - The overall real estate market regulation policy in China remained stable, with a focus on "housing properties for accommodation, not speculation"[17]. - The slowdown in demand for properties in the PRC property market during 2021 contributed to the decrease in contracted sales and GFA[18]. - The company anticipates continued challenges in the domestic real estate market due to regulatory measures and economic conditions[17]. Strategic Initiatives - Hailan Holdings is committed to adapting its strategies in response to market changes and regulatory environments[17]. - The company aims to stabilize its operations and maintain a healthy development trajectory amidst market fluctuations[17]. - Future strategies may include exploring new market opportunities and enhancing product offerings to meet consumer demand[17]. - The Group plans to focus on development projects in Hainan Province, leveraging opportunities from the free trade port initiative[24]. - The management has formulated a future development plan to expand into new regions nationwide and enhance brand competitiveness[26]. - The Group plans to continue investing in property development projects and acquiring suitable land parcels in the PRC, Hong Kong, Southeast Asia, and the United States[81]. Assets and Liabilities - Total assets amounted to approximately RMB8,921.7 million, with total equity at RMB1,652.3 million[34]. - As of December 31, 2021, total assets amounted to approximately RMB8,925.7 million, up from RMB7,543.3 million in 2020, while total liabilities increased to approximately RMB7,269.2 million from RMB5,629.3 million[62]. - The Group's cash and bank balances, including restricted cash, were approximately RMB907.8 million as of December 31, 2021, compared to RMB1,031.5 million in 2020[62]. Corporate Governance - The company emphasizes the importance of independent directors in its governance structure, ensuring compliance and oversight[120]. - The company is committed to maintaining high standards of corporate governance to protect the interests of all shareholders[127]. - The company has complied with all applicable Code Provisions set out in the CG Code during the reporting period, except for certain deviations[139]. - The roles of chairman and chief executive officer are performed by the same individual, which the board believes ensures consistent leadership[139]. - The board comprises experienced individuals, with more than one-third being independent non-executive directors, ensuring a balance of power and authority[139]. - The Company has adhered to all applicable corporate governance codes during the reporting period, with some deviations explained[141]. Board Composition and Diversity - The Company aims to maintain at least one female Director on the Board to support gender diversity initiatives[197]. - The workforce gender ratio, including senior management, is 59% male and 41% female, indicating achieved gender diversity[198]. - The Nomination Committee is responsible for recommending measurable objectives for achieving Board diversity and monitoring the implementation of the Board Diversity Policy[190]. - The Company has adopted relevant hiring policies to consider diversity perspectives, including gender diversity, for senior management positions[197]. Employee and Management Information - The Group incurred employee costs of approximately RMB 77.7 million during the Reporting Period[81]. - The Group had 328 employees as of December 31, 2021, down from 364 employees in 2020[81]. - Continuous professional development for Directors is emphasized, with all Directors encouraged to attend relevant training courses at the Company's expense[159].