Core Viewpoint - Guorui Health is transitioning from a traditional real estate developer to a leader in the health industry, supported by a solid asset base of 9.929 billion RMB in net assets, which provides stable cash flow and strong risk resistance [1] Group 1: Asset Overview - Guorui Health's net assets are concentrated in core locations of first and second-tier cities such as Beijing, Shenzhen, and Xi'an, forming a diversified asset matrix that includes high-end commercial real estate, large hospitals, and modern health and wellness communities [1] - The company has developed key projects such as the Beijing Hademen Center, which is a premium business complex with a total area of 140,000 square meters, and the Xi'an IFC, which is the tallest building in Xi'an at 350 meters [3][3] Group 2: Strategic Goals - The strategic goal of Guorui Health is to become a leader in elderly care management, health maintenance, and cultural entertainment online services, leveraging resources from the Ministry of Civil Affairs to build a complete health value chain [7] - The company has launched the "Health Online" smart health service platform aimed at providing comprehensive services to 300 million elderly people in China [8] Group 3: Community Health Model - Guorui Health has made significant progress in community health, with the Beijing Yongqing and Haikou Yunlong elderly living demonstration zones, which provide well-equipped and comfortable living services for the elderly [10][10] - The community health model includes the establishment of health living centers that offer six smart health scenarios: home services, online shopping, health management, leisure and entertainment, smart home, and community management [14] Group 4: AI Medical Investment - The company is expanding its innovative industrial investments in Shenzhen, focusing on AI medical, internet medical, and biomedicine, with plans to establish 300 R&D projects and achieve 200 technology patents in the next five years [17] - The AI medical investment center aims to enhance the accuracy of medical prescriptions to 90% and reduce operational costs by 50% [17] Group 5: Business Model Transformation - Guorui Health is integrating AI technology, health industry, and service ecology to create a comprehensive smart health industry ecosystem, marking a successful transition from traditional real estate to a high-value, technology-driven elderly care industry [18] - The model emphasizes scalability and replicability, effectively connecting technology, services, and assets, while aligning with national policy support and demographic trends in the health industry [18]

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責 ， 對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明 ， 並 明 確 表 示 概 不 對 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任 。 Glory Health Industry Limited 國 瑞 健 康 產 業 有 限公 司 （於開曼群島註冊成立的有限公司） （股份代號：2329） 补 充 公 告 有 關 截 至 二 零 二 四 年 十 二 月 三 十 一 日 止 年 度 之 年 报 正如年報特別是在第44頁標題為「不發表意見」一節中所披露，存在重大不確定性因素，可 能對本集團持續經營能力構成重大疑問。因此，本集團可能無法在日常業務過程中變現其資 產及償還其負債。 本公司為解決不發表意見而採取的行動 為解決不發表意見問題，自二零二五年四月三十日以來，本公司根据年报第39页標題為「(c) 應對二零二四年審計修訂的行動計劃」採取的措施及進展如 ...

Financial Performance - The total revenue for the year 2024 was RMB 2,705.3 million, an increase of 8% compared to RMB 2,506 million in 2023[6]. - The net loss for the year was RMB 1,416 million, representing a 138% increase from a loss of RMB 594 million in 2023[6]. - The group's revenue for the year ended December 31, 2024, was RMB 2,705.3 million, an increase of 7.9% compared to RMB 2,506.3 million for the previous year[31]. - Property development revenue for the same period was RMB 2,116.7 million, reflecting a 3.7% increase year-on-year[31]. - The group's gross profit for the year was RMB 555.6 million, an increase of RMB 605.8 million compared to the previous year, primarily due to the recognition of higher-margin properties[33]. - The total comprehensive loss increased from RMB 593.5 million for the year ended December 31, 2023, to RMB 1,415.5 million for the year ended December 31, 2024[41]. - The company reported significant revenue generated from its main business activities, including property development and management in China[60]. - The company reported a loss of RMB 1,240,429 thousand for the year, compared to a loss of RMB 563,971 thousand in the previous year, indicating a worsening of approximately 120.0%[195]. - The company’s basic and diluted loss per share for the year was RMB 0.28, compared to RMB 0.13 in the previous year, indicating a worsening financial position[190]. Assets and Liabilities - The total assets increased by 2% to RMB 57,205 million from RMB 56,354 million[6]. - The company's current assets net amount was approximately RMB 1,054,403,000[158]. - The total book value of the company's bank and other borrowings was approximately RMB 7,620,237,000, due on demand or within one year[158]. - The company’s total liabilities increased to RMB 44,834,776 thousand in 2024, up from RMB 42,568,121 thousand in 2023, representing an increase of about 5.3%[193]. - The net asset value decreased to RMB 12,369,902 thousand in 2024 from RMB 13,785,405 thousand in 2023, indicating a decline of approximately 10.3%[193]. - The company faced significant liquidity challenges, with total bank and other borrowings amounting to approximately RMB 7,620,237,000, while cash and cash equivalents were only about RMB 70,451,000[182]. - The company has outstanding amounts of approximately RMB 3,942,744,000 and RMB 5,396,323,000 in priority notes and bank borrowings that were not repaid as planned, raising concerns about potential early repayment demands[182]. Revenue and Sales - The contracted sales amount decreased by 7% to RMB 3,262 million from RMB 3,523 million in the previous year[6]. - The signed sales amount for the year 2024 was approximately RMB 3,262.4 million, with major contributions from Beijing (RMB 1,538.6 million, 47.2%), Xi'an (RMB 884.9 million, 27.1%), and Qidong (RMB 285.6 million, 8.8%)[24]. - The rental income for the reporting period was RMB 286.8 million, reflecting a decline due to the impact of e-commerce and the downturn in the physical economy[12]. Cost Management - The group's sales and service costs decreased by 15.9% to RMB 2,149.8 million, attributed to the recognition of higher-margin properties during the year[32]. - Administrative expenses decreased by 41.5% from RMB 323.2 million for the year ended December 31, 2023, to RMB 189.0 million for the year ended December 31, 2024, due to organizational restructuring and optimization[38]. - Distribution and selling expenses increased by 5.8% from RMB 83.5 million for the year ended December 31, 2023, to RMB 88.4 million for the year ended December 31, 2024[37]. Future Outlook and Strategy - The outlook for 2025 indicates continued support for the real estate market, although challenges remain due to macroeconomic conditions[16]. - The company plans to transition towards the health industry, focusing on developing health-oriented communities and online health services[15]. - The company plans to continue investing in property development projects and acquiring suitable land parcels in selected cities, with internal resources and bank borrowings expected to meet funding needs[47]. - The group plans to engage financial advisors for debt restructuring and is negotiating with senior noteholders and banks to extend repayment terms[164]. - The group intends to sell part of its investment properties to improve its financial condition, liquidity, and cash flow[164]. Corporate Governance - The board of directors presented the audited consolidated financial statements for the reporting period[59]. - The company has a strong commitment to environmental protection and compliance with relevant laws and regulations in its operations[62][63]. - The company recognizes the importance of maintaining good relationships with stakeholders, including customers, suppliers, and regulatory bodies[66][69][70]. - The company has established a remuneration committee to review the compensation policy for all directors and senior management based on performance and market comparisons[100]. - The company has adopted a board diversity policy to ensure a wide range of valuable business experience and skills among directors, complying with relevant governance codes[124]. Shareholder Information - The board does not recommend the payment of a final dividend for the year ended December 31, 2024[49]. - The company’s distributable reserves as of December 31, 2024, amounted to RMB 1,183.8 million[82]. - The company does not recommend the distribution of any final dividend for the year ending December 31, 2024[74]. - The company has maintained compliance with the public float exemption, ensuring that at least 15% of the total issued shares are held by the public[110]. Risk Management - The company is aware of risks associated with the real estate industry in China, including government policies that may impact financial performance[64]. - The audit committee reviewed the effectiveness of the risk management and internal control systems during the reporting period[150]. - The board has established a robust risk management and internal control framework to safeguard shareholder investments and company assets[162].

Financial Performance - For the fiscal year ending December 31, 2024, the contracted sales amounted to RMB 3,262.4 million[3] - Revenue from property development was RMB 2,116.7 million, reflecting pressure from the rental market[3] - The total revenue for the year was RMB 2,705.3 million, an increase from RMB 2,506.3 million in the previous year[5] - The gross profit for the year was RMB 555.6 million, compared to a gross loss of RMB 50.3 million in the previous year[5] - The net loss for the year was RMB 1,415.5 million, compared to a net loss of RMB 593.5 million in the previous year[5] - Total revenue for the year ended December 31, 2024, reached RMB 2,705,332,000, an increase from RMB 2,506,285,000 for the year ended December 31, 2023, representing a growth of approximately 7.9%[28] - Revenue from property development was RMB 2,116,743,000 for the year ended December 31, 2024, compared to RMB 2,040,432,000 for the previous year, indicating an increase of about 3.7%[33] - The company reported a total segment loss of RMB 454,651,000 for the year ended December 31, 2023, which improved to a profit of RMB 251,810,000 for the year ended December 31, 2024[35] - The company’s total revenue from external customers for the year ended December 31, 2024, was entirely derived from the Chinese market[37] - The group reported a loss of approximately RMB 1,415.5 million for the year ended December 31, 2024, with net current assets of about RMB 1,054.4 million[104] Assets and Liabilities - As of December 31, 2024, the total land reserve reached 6,344,963 square meters[3] - The total assets as of December 31, 2024, were RMB 32,365.6 million, up from RMB 29,719.6 million in the previous year[10] - Current liabilities increased to RMB 31,311,224 thousand in 2024 from RMB 29,652,393 thousand in 2023, representing a growth of approximately 5.6%[11] - Total assets decreased to RMB 25,893,454 thousand in 2024 from RMB 26,701,133 thousand in 2023, a decline of about 3.0%[11] - Non-current liabilities rose to RMB 13,523,552 thousand in 2024 compared to RMB 12,915,728 thousand in 2023, indicating an increase of approximately 4.7%[11] - The company's net asset value decreased to RMB 12,369,902 thousand in 2024 from RMB 13,785,405 thousand in 2023, a reduction of around 10.3%[11] - The company's equity attributable to owners decreased to RMB 9,928,691 thousand in 2024 from RMB 11,169,120 thousand in 2023, reflecting a decline of approximately 11.1%[11] - The company reported a significant decrease in financing costs, which amounted to RMB 1,061,701,000 for the year ended December 31, 2024, compared to RMB 561,613,000 for the previous year[35] - The total carrying amount of bank and other borrowings was approximately RMB 7,620.2 million as of December 31, 2024, with cash and cash equivalents of only about RMB 70.5 million[104] Operational Strategies - The company continues to focus on property development and management services as its primary business operations[15] - The group plans to actively negotiate with senior noteholders and banks to extend repayment schedules for borrowings due before December 31, 2025[27] - The group intends to sell part of its investment properties to improve its financial condition, liquidity, and cash flow[27] - The group will implement pre-sale and sales plans for properties under development and held for sale to timely recover related sales proceeds[27] - Cost control measures will be adopted to manage selling, service costs, and administrative expenses[27] - The group has adjusted its investment and sales strategies to capture market share within limited market capacity, focusing on debt reduction and asset disposal[57] - The group aims to enhance urban renewal and the renovation of existing housing, which are expected to become new profit growth points starting from 2025[59] - The group plans to continue investing in property development projects and acquiring suitable land parcels in selected cities, relying on internal resources and bank borrowings to meet funding needs[94] Market Conditions and Future Outlook - The outlook for 2025 suggests continued government support for the real estate market, although the market remains under pressure with declining sales and prices[62] - The group emphasizes the need for improved financing conditions to support industry recovery, as current policies have limited coverage and effectiveness[62] - The transition to the health industry is seen as a strategic move to tap into a broader market opportunity[64] - The group is gradually reducing its real estate business and transitioning towards the health industry, focusing on innovative living environments and health-related services[61] Employee and Operational Costs - Total employee costs for 2024 amounted to RMB 149,074,000, down from RMB 163,805,000 in 2023, reflecting a decrease of approximately 9%[41] - Administrative expenses decreased by 41.5% to RMB 189.0 million due to organizational restructuring and optimization[84] Dividends and Shareholder Returns - The company did not recommend any dividend payments for the years ending December 31, 2024, and December 31, 2023[48] - The board did not recommend the payment of a final dividend for the year ended December 31, 2024[96]

Financial Performance - For the six months ended June 30, 2024, the contracted sales amounted to RMB 1,184.1 million[3]. - The revenue for the reporting period was RMB 987.5 million, with property development revenue contributing RMB 792.3 million[4]. - The group's revenue for the six months ended June 30, 2024, was RMB 987.5 million, a decrease of 32.2% compared to RMB 1,456.9 million for the same period in 2023[17]. - Property development revenue for the same period was RMB 792.3 million, down 33.2% year-on-year, primarily due to a decrease in the area of completed projects and sales[17]. - The gross profit for the same period was RMB 432.3 million, while the net loss amounted to RMB 64.4 million[12]. - The company reported a net loss of RMB 64,445 thousand for the six months ended June 30, 2024, compared to a net loss of RMB 269,817 thousand in the prior year, indicating a substantial reduction in losses[32]. - The group reported a loss attributable to owners of RMB 58.7 million for the six months ended June 30, 2024, an improvement of RMB 208.2 million compared to a loss of RMB 266.9 million in the same period last year[18]. - The company recorded a net loss of RMB 266,874 thousand for the first half of 2024, compared to a loss of RMB 58,659 thousand in the same period of 2023, indicating ongoing challenges despite improvements in certain areas[56]. Sales and Market Conditions - The contracted sales for the first half of 2024 reached approximately RMB 1,184.1 million, a decrease of 43.3% compared to RMB 2,087.4 million in the same period of 2023[13]. - The major sources of contracted sales in the first half of 2024 were Beijing (RMB 836.8 million, 70.7%), Shenyang (RMB 162.1 million, 13.7%), and cooperative projects (RMB 120.1 million, 10.1%)[13]. - The real estate market is expected to remain under pressure, with ongoing adjustments in sales and prices despite supportive government policies[8]. - The macro policies are clearly aimed at boosting the real estate market, with ongoing relaxation of purchasing restrictions and financial incentives[4]. Strategic Initiatives - The company aims to enhance urban renewal and the transformation of existing housing as a new strategic direction in the stock market[6]. - The company is focused on debt reduction and asset disposal to improve liquidity during the reporting period[5]. - The group is leveraging various financing channels to optimize capital structure and reduce financing costs[6]. - The company plans to enhance its competitive edge by improving product quality, service standards, and operational management capabilities[8]. - The company is transitioning from real estate to the health industry, focusing on developing health-oriented communities and online health services[9]. Financial Position and Liquidity - As of June 30, 2024, the company's cash, restricted bank deposits, and bank balances amounted to RMB 251.6 million, down from RMB 319.9 million as of December 31, 2023[23]. - The net operating cash flow for the six months ended June 30, 2024, was RMB 49.2 million, a significant decrease from RMB 462.1 million for the same period in 2023[23]. - The outstanding borrowings as of June 30, 2024, totaled RMB 22,132.3 million, which includes bank borrowings and other borrowings of RMB 18,512.3 million and senior notes of RMB 3,620.1 million[24]. - The group reported a net cash outflow from financing activities of RMB 60,283 thousand for the six months ended June 30, 2024, compared to an outflow of RMB 596,030 thousand in the same period of 2023, indicating a decrease of approximately 89.9%[37]. - The company has provided guarantees for customer mortgage loans amounting to RMB 2,589.5 million as of June 30, 2024[24]. Investment Properties and Assets - The group has 9 investment properties in core locations of first and second-tier cities, with a total planned construction area of approximately 763,478 square meters[5]. - Investment properties valued at RMB 20,267,430 thousand as of June 30, 2024, slightly decreased from RMB 20,577,166 thousand at the end of 2023[33]. - The total land reserve reached 6,476,560 square meters[3]. - The total unsold completed building area as of June 30, 2024, was 1,121,389 square meters, with total land reserves of 6,476,560 square meters[15]. Related Party Transactions - The group has a significant relationship with various related parties, including Beijing Rui Mei Real Estate Development Co., Ltd. and Guangdong Guo Xia Investment Holdings Group Co., Ltd.[94]. - The group reported trade receivables with a total amount of RMB 2,912,523 thousand, with a credit loss provision of RMB 11,478 thousand[96]. - The group’s total related party transactions for management services amounted to RMB 943,000 in the first half of 2024, compared to RMB 9,049,000 in the same period of 2023, showing a significant reduction[100]. - The group continues to monitor and manage its related party transactions to ensure compliance and mitigate risks associated with these relationships[96]. Debt and Financing - The group provided guarantees for bank loans amounting to RMB 14,442,491,000 as of June 30, 2024, down from RMB 15,058,788,000 as of December 31, 2023, indicating a decrease of about 4.1%[100]. - The company has secured various bank and other financing through the pledge of assets, including properties and equity stakes in subsidiaries[84]. - The company is actively negotiating with noteholders to extend the repayment dates for the 2021 and 2022 preferred notes, which may be subject to immediate repayment[81]. - The company has outstanding commitments for construction expenditures related to investment properties amounting to RMB 173.273 million as of June 30, 2024[85]. Operational Efficiency - The company is implementing cost control measures to manage sales and administrative expenses[40]. - Other losses decreased from RMB 61,077 thousand in the first half of 2023 to RMB 30,013 thousand in the first half of 2024, reflecting improved operational efficiency[50]. - Financing costs were reduced to RMB 38,517 thousand in the first half of 2024 from RMB 142,455 thousand in the same period of 2023, showcasing effective cost management strategies[51]. Corporate Governance - The company has taken proactive measures to identify suitable candidates to fill board and audit committee vacancies to comply with listing rules[31]. - The company has established an internal control committee that reports quarterly to the board to review regulatory and compliance matters[31]. - The board has decided not to declare an interim dividend for shareholders[25].

Financial Performance - The signed sales amount for the six months ending June 30, 2024, was RMB 1,184.1 million[1]. - Revenue from property development for the same period was RMB 987.5 million, reflecting pressure in the rental market[1]. - The total revenue for the six months ending June 30, 2024, was RMB 987.5 million, down from RMB 1,456.9 million in the same period last year[4]. - The net loss attributable to shareholders for the period was RMB 64.4 million, compared to a loss of RMB 269.8 million in the previous year[2]. - Basic and diluted loss per share was RMB 1.32, an improvement from RMB 6.00 in the previous year[2]. - Total revenue for the period reached RMB 987,459,000, with property development contributing RMB 792,314,000 and property investment contributing RMB 158,120,000[13]. - The total segment profit for the six months ended June 30, 2024, was RMB 275,541,000, while the total segment loss for the same period in 2023 was RMB 11,505,000, indicating a turnaround in performance[17]. - The gross profit for the same period was RMB 432.3 million, while the net loss amounted to RMB 64.4 million[43]. - The company reported a loss attributable to shareholders of RMB 58,659,000 for the six months ended June 30, 2024, compared to a loss of RMB 266,874,000 for the same period in 2023[23]. Revenue Breakdown - Customer contract revenue amounted to RMB 829,339,000, with significant contributions from property development and land construction services[13]. - The property development segment reported a profit of RMB 275,541,000 for the six months ended June 30, 2024, compared to a loss of RMB 11,505,000 in the same period of 2023[17]. - The revenue from the first-level land construction and development services segment was RMB 24,612,000 for the six months ended June 30, 2024, down from RMB 50,246,000 in 2023, indicating a decline of approximately 51.0%[16]. - The property investment segment generated revenue of RMB 158,120,000 for the six months ended June 30, 2024, compared to RMB 204,281,000 in 2023, reflecting a decrease of about 22.6%[16]. - The company’s total revenue from property management and related services was RMB 12,413,000 for the six months ended June 30, 2024, compared to RMB 16,093,000 in 2023, a decrease of approximately 22.0%[16]. Assets and Liabilities - Non-current assets, including investment properties, were valued at RMB 20,267.4 million as of June 30, 2024[5]. - Current liabilities totaled RMB 28,947.9 million, a decrease from RMB 29,652.4 million at the end of 2023[6]. - The company's total assets minus current liabilities stood at RMB 26,133.0 million as of June 30, 2024[6]. - The net accounts receivable as of June 30, 2024, was RMB 403,710,000, compared to RMB 382,034,000 as of December 31, 2023[26]. - Total accounts payable as of June 30, 2024, was RMB 2,665,640,000, an increase from RMB 2,594,993,000 as of December 31, 2023[28]. - The outstanding borrowings as of June 30, 2024, amounted to RMB 22,132.3 million, including bank borrowings of RMB 18,512.3 million and preferred notes of RMB 3,620.1 million[63]. Market Conditions and Strategy - The real estate market is expected to continue facing pressure, with sales remaining low and housing prices declining, despite ongoing supportive policies from the government[40]. - The group is transitioning towards the health industry, focusing on developing health-oriented communities and online health services[39]. - The group aims to optimize its capital structure and reduce financing costs through diversified financing channels[38]. - The group has adjusted its investment and sales strategies in response to market changes, focusing on debt reduction and asset disposal to improve liquidity[35]. - The group anticipates that the real estate industry will enter a new long cycle, shifting from leverage-driven growth to stable, high-quality growth[41]. - The group plans to enhance its competitive edge by improving product quality and service levels while adapting to industry changes[41]. Operational Measures - The company is implementing cost control measures to manage sales and administrative expenses[12]. - The group continues to operate under the assumption of going concern, with ongoing assessments of its financial position[12]. - The company has adopted measures to ensure it can meet its financial obligations as they come due[12]. - The company plans to continue investing in property development projects and acquiring suitable land parcels in selected cities, with sufficient internal resources and bank loans to meet funding needs[66]. Corporate Governance - The audit committee consists of two independent non-executive directors as of January 29, 2024[72]. - The company has adhered to the corporate governance code and is actively seeking suitable candidates to fill board vacancies[69]. - The company has confirmed compliance with the standard code for directors' securities transactions as of June 30, 2024[70]. - There are no significant contingent liabilities other than those disclosed in the announcement as of June 30, 2024[65].

Financial Performance - The company's revenue for 2023 was RMB 2,506.3 million, a decrease of 36% compared to RMB 3,905 million in 2022[6]. - The contracted sales amount for 2023 was RMB 3,523 million, down 22% from RMB 4,532 million in 2022[6]. - The net loss attributable to shareholders for 2023 was RMB 564 million, a 38% improvement from a loss of RMB 913 million in 2022[6]. - The gross profit margin for 2023 was -2%, a decline of 167% from a positive margin of 3% in 2022[6]. - The group's revenue for the year ended December 31, 2023, was RMB 2,506.3 million, with property development revenue accounting for RMB 2,040.4 million[24]. - Property development revenue for the year ended December 31, 2023, was RMB 2,040.4 million, down 38.9% year-on-year, primarily due to a decrease in completed delivery area and sales[36]. - The company's gross loss for the year ended December 31, 2023, was RMB 50.3 million, a decrease of RMB 163.8 million compared to the previous year, attributed to declining sales and increased costs due to project delays[38]. - The company's cash resources were reported at RMB 320 million, a decrease of 15% from RMB 377 million in 2022[6]. - The company's cash, restricted bank deposits, and bank balances as of December 31, 2023, were approximately RMB 319.9 million, down from RMB 377.3 million as of December 31, 2022[49]. - Net operating cash flow for the year ended December 31, 2023, was RMB 512.9 million, compared to RMB 606.3 million for the previous year[50]. - The company reported a net loss of approximately RMB 593,503,000 for the year ended December 31, 2023[193]. Market Outlook - The company anticipates that the real estate industry will enter a "new normal," shifting from explosive growth driven by financial leverage to stable, high-quality growth[20]. - The group expects a limited recovery in the real estate market, predicting an L-shaped recovery trend rather than a V-shaped rebound[20]. - The company has identified urban renewal projects as a new profit growth point, with significant contributions expected from the Beijing Qinian Street project in 2024[15]. - The company plans to adopt a regional deep cultivation strategy and flexible sales policies to seize market opportunities and improve product structure[20]. - The company aims to explore innovative living formats and continuously upgrade its products to attract more customers and boost sales[20]. Debt and Financial Management - The company plans to enhance its financial management and optimize its debt structure to lower financing costs and manage currency risks[16]. - The company's outstanding borrowings as of December 31, 2023, amounted to RMB 22,174.4 million, including bank and other borrowings of RMB 18,576.3 million and senior notes of RMB 3,598.1 million[51]. - Management is actively negotiating with creditors and has engaged financial advisors for debt restructuring, aiming to extend repayment terms for borrowings due by December 31, 2024[195]. - The audit committee has reviewed and agreed with management's assessment regarding the going concern assumption, considering the company's action plan to mitigate liquidity issues[195]. Corporate Governance - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2023[58]. - The company has established a remuneration committee to review the remuneration policy and structure for all directors and senior management based on performance and contributions[127]. - The independent non-executive directors have reviewed the compliance of the controlling shareholders with the non-competition agreement and found no violations[125]. - The company has complied with all corporate governance code provisions, with deviations noted in specific clauses[148]. - The board's governance responsibilities include reviewing compliance with legal and regulatory requirements[173]. Operational Focus - The company is shifting its business focus towards the health industry, aiming to develop health-oriented living communities and online health services[17]. - The company operates primarily in property development, land construction, and property investment and management in China[70]. - The company has a strong reliance on key stakeholders, including directors, management, employees, customers, suppliers, regulators, and shareholders for its success[77]. - The company has a commitment to maintaining good relationships with regulatory bodies to ensure compliance with relevant laws and regulations[73]. Community and Social Responsibility - During the reporting period, the group made charitable donations totaling RMB 0.3 million[142]. - The company has been actively involved in various community and industry associations, enhancing its reputation and influence in the real estate sector[65]. Shareholder Information - The company aims to enhance shareholder value while ensuring sustainable profit growth and stable dividend returns[83]. - The chairman holds a controlled corporation interest of 3,409,431,570 shares, representing approximately 76.71% of the company's equity[111]. - The largest customer contributed about 1.1% to the group's total revenue, with the top five customers accounting for less than 30% of total revenue for the year[110].

Audit Committee - The audit committee has been established and is composed of independent non-executive directors, with Liu Chengjiang serving until January 29, 2024, after which it will consist of Chen Jinrong and Deng Zhidong[4]. Financial Review - The company has reviewed the unaudited full-year results for the year ending December 31, 2023, along with its risk management framework and internal control systems[4]. Board Composition - The board of directors includes five executive directors and two independent non-executive directors as of the announcement date[5].

Financial Performance - Total revenue for 2023 was RMB 2,506.3 million, a decrease of 35.8% compared to RMB 3,904.7 million in 2022[10]. - The gross loss for the year was RMB 50.3 million, compared to a gross profit of RMB 113.5 million in the previous year[11]. - The net loss attributable to the owners of the company for the year was RMB 593.5 million, a reduction from RMB 995.3 million in 2022[15]. - Basic and diluted loss per share for 2023 was RMB 0.13, compared to RMB 0.21 in 2022[17]. - The group experienced a loss of RMB 454,651 thousand for the year ended December 31, 2023, compared to a loss of RMB 224,458 thousand in the previous year, indicating a worsening financial performance[71][73]. - The total comprehensive loss for the year ended December 31, 2023, was RMB 593.5 million, compared to RMB 995.3 million for the previous year[174]. Revenue Breakdown - Revenue from property development was RMB 2,040.4 million, impacted by market sentiment in the rental market[5]. - The revenue from property development was RMB 2,040,432 thousand, while property management and related services generated RMB 93,988 thousand, and rental income contributed RMB 333,336 thousand[60][71]. - The total rental income for the reporting period was RMB 333.3 million, expected to grow steadily due to economic recovery and increased consumer spending[134]. - Revenue from the sale of subsidiaries was RMB 145,904 thousand in 2023, with no comparable figure for 2022[80]. Assets and Liabilities - Total assets as of December 31, 2023, were RMB 29,719.6 million, down from RMB 31,223.2 million in 2022[26]. - The total equity attributable to owners of the company was RMB 11,169.1 million, compared to RMB 11,733.1 million in the previous year[36]. - As of December 31, 2023, the company's total bank and other borrowings amounted to approximately RMB 8,002,459,000, with cash and cash equivalents of only about RMB 74,697,000[53]. - The company's current assets include development properties and properties held for sale totaling approximately RMB 22,182,150,000, with about RMB 5,020,620,000 expected to be unrealizable within 12 months after the reporting period[53]. - The average credit period for accounts payable is 180 days, with accounts payable amounting to RMB 2,594.993 million, an increase from RMB 2,375.998 million in the previous year[121][116]. Investment and Development - As of December 31, 2023, the total land reserve reached 6,628,038 square meters, with 61% of the saleable value located in Beijing[5]. - The company holds nine investment properties in core locations of first-tier cities, with a total planned construction area of approximately 763,478 square meters[135]. - The group plans to continue investing in property development projects and acquiring suitable land parcels in selected cities, with internal resources and bank loans expected to meet funding needs[181]. - The group is focusing on strategic land development projects, including urban renewal and "three old renovation" policies in cities like Beijing and Shenzhen[158]. Cost Management and Financial Strategy - Cost control measures have been implemented to manage sales, service costs, and administrative expenses[56]. - The company has implemented strategies to reduce debt and improve liquidity, including asset disposal and debt restructuring[132]. - The group plans to enhance product structure and quality to attract more customers while improving sales collection efforts[151]. - The board believes that the group will have sufficient working capital to meet its operational and overdue financing needs[197]. Corporate Governance - The company has appointed Chen Jinrong and Deng Zhidong as independent directors on January 29, 2024[188]. - The audit committee was restructured following the resignation of independent directors, now consisting of independent non-executive directors[193]. - The company continues to review and strengthen its corporate governance practices to ensure compliance with the corporate governance code[190].

Financial Performance - Total revenue for 2023 was RMB 2,506.3 million, a decrease of 35.8% compared to RMB 3,904.7 million in 2022[10]. - The gross loss for the year was RMB 50.3 million, compared to a gross profit of RMB 113.5 million in the previous year[11]. - The net loss attributable to the owners of the company for the year was RMB 593.5 million, a reduction from RMB 995.3 million in 2022[14]. - Basic and diluted loss per share for the year was RMB 0.13, compared to RMB 0.21 in the previous year[18][21]. - The group experienced a segment loss of RMB 454,651 thousand for the year ended December 31, 2023, compared to a loss of RMB 224,458 thousand in the previous year, indicating a worsening financial performance[73]. - The total loss attributable to the owners of the company for the year was RMB 912,782 thousand in 2023 compared to RMB 563,971 thousand in 2022[107]. - The group's revenue for the year ended December 31, 2023, was RMB 2,506.3 million, a decrease of 35.8% compared to RMB 3,904.7 million for the year ended December 31, 2022[164]. - Property development revenue for the year ended December 31, 2023, was RMB 2,040.4 million, down 38.9% year-on-year, primarily due to a decrease in completed delivery area and sales[165]. Assets and Liabilities - Total assets as of December 31, 2023, were RMB 29,719.6 million, a decrease from RMB 31,223.2 million in 2022[29]. - The total equity attributable to owners of the company was RMB 11,169.1 million, down from RMB 11,733.1 million in the previous year[39]. - As of December 31, 2023, the company's total bank and other borrowings amounted to approximately RMB 8,002,459,000, with cash and cash equivalents of only about RMB 74,697,000[55]. - The company's current assets include development properties and properties held for sale totaling approximately RMB 22,157,000,000, with about RMB 5,020,620,000 expected to be unrealizable within 12 months after the reporting period[55]. - The company's net current assets were approximately RMB 67,172,000 as of December 31, 2023[198]. - The total face value of bank and other borrowings was approximately RMB 8,002,459,000, with cash and cash equivalents only around RMB 74,697,000[198]. - The company has outstanding priority notes and bank borrowings amounting to approximately RMB 3,598,057,000 and RMB 2,739,318,000 respectively, which were not repaid as planned[198]. Revenue Sources - Revenue from property development was RMB 2,040.4 million, impacted by market sentiment in the rental market[5]. - The group reported a significant segment revenue of RMB 2,040,432 thousand from property development for the year ended December 31, 2023[73]. - The group's rental income for the year was RMB 333,336 thousand, contributing to the overall revenue[64]. - Revenue from the sale of subsidiaries amounted to RMB 145,904 thousand in 2023[83]. Financing and Costs - The financing costs for the year were RMB 561.6 million, a decrease from RMB 725.4 million in 2022[11]. - The group's financing costs decreased by 22.6% to RMB 561.6 million for the year ended December 31, 2023, from RMB 725.4 million in the previous year, primarily due to debt restructuring[174]. - The total employee costs decreased to RMB 163,805 thousand in 2023 from RMB 198,545 thousand in 2022[90]. Strategic Initiatives - The group plans to sell part of its investment properties to improve financial conditions and cash flow, alongside implementing pre-sale and sales plans for properties under development[61]. - The group aims to actively negotiate with noteholders and banks to extend repayment schedules for loans due by December 31, 2024, with expectations of successfully renewing most bank loans[61]. - The company plans to transition towards the health industry, focusing on developing health-oriented communities and online health services[146]. - The company has identified urban renewal projects as a new growth point, with potential sales from these projects expected to contribute significantly to profits in the coming years[141]. - The company aims to optimize its financial management and reduce financing costs through diversified financing channels and risk control measures[143]. Market Conditions - The real estate policy environment has become increasingly relaxed, with over 750 local policy adjustments made throughout the year, significantly more than in 2022[135]. - The real estate industry is expected to transition to a stable and balanced growth model, with opportunities and risks coexisting in the future[154]. - The outlook for 2024 indicates a continued focus on stabilizing the real estate market and addressing industry risks through macroeconomic guidance[147]. Governance and Compliance - The company continues to strengthen its corporate governance practices to ensure compliance with the corporate governance code[192]. - The audit committee has reviewed the unaudited annual results and risk management framework for the year ended December 31, 2023[195]. - The company has appointed Chen Jinrong and Deng Zhidong as independent directors on January 29, 2024, to fill board vacancies[190]. Other Financial Metrics - The net operating cash flow for the year ended December 31, 2023, was RMB 512.9 million, compared to RMB 923.1 million for the year ended December 31, 2022[178]. - The average credit period for accounts payable was 180 days, with accounts payable totaling RMB 2,594.993 million, an increase from RMB 2,375.998 million in the previous year[127][134]. - The company does not recommend the payment of any dividends for the years ended December 31, 2023, and 2022[110]. - The board does not recommend the payment of a final dividend for the year ended December 31, 2023[186].