Investment Rating - The report does not explicitly state an investment rating for the company [1]. Core Insights - The real estate industry in 2024 is still facing deep adjustments, and the proactive exploration and effectiveness of the company in response to industry changes are noteworthy. The company is committed to a service-oriented approach, seeking stability while embracing change, and is transitioning towards a model of "development agency + property management services + asset operation + real estate technology" to achieve higher profit margins and a more scientific development model [2][4]. Summary by Sections 1. Strategic Transformation and Business Model Exploration - The company is actively reshaping its strategy and exploring new business transformation models during a period of industry clearing and transition. It maintains confidence in the real estate sector and is embracing changes to achieve better operational development. The focus is on a low-leverage, light-asset approach to deepen its involvement across the entire real estate development value chain [5][6]. 2. Strong Foundation and Future Potential - The company has a solid foundation and clear advantages in property management, commercial, industrial parks, and real estate technology. With the support of its controlling shareholder and a wealth of experience across the entire chain, the future potential is vast [6][7]. 3. Positive Profitability and Strong Financing Capability - In the first half of 2024, the company maintained positive profitability with a net profit of 596 million yuan and a core net profit of 642 million yuan, while most real estate companies faced losses. The company has a competitive dividend policy, having distributed approximately 9 billion HKD since its listing in 2018, with a payout ratio consistently above 40% [18][20]. - The company has successfully issued bonds totaling 4.12 billion yuan with interest rates below 5%, and plans to issue additional bonds at a rate as low as 2.8%. Its average financing cost has decreased to 4.54%, placing it in the top tier of credit ratings [20][21]. - The company has reduced interest-bearing liabilities by approximately 19.2 billion yuan from 2021 to mid-2024, achieving a total of 37.1 billion yuan, the lowest in its history, with a manageable debt repayment schedule [22][23]. 4. Business Segments and Development Focus - The company is focusing on three main areas: asset operation, light asset management, and real estate technology, all of which have broad prospects. It aims to expand quality light asset commercial projects and enhance asset management capabilities [16][17]. - In property management, the company is extending its services beyond residential to include industrial parks and healthcare, with a focus on creating a comprehensive service system that combines basic services with value-added operations [8][9]. - The real estate technology segment is centered on modular construction products, with plans to expand into the prefabricated interior market, indicating a shift towards sustainable development practices [11][12]. 5. Overall Outlook - The company is expected to become a more promising and valuable listed entity, supported by a resilient corporate culture and the backing of its controlling shareholder [23].

Summary of the Conference Call Company Overview - The conference call is regarding Midea Real Estate's 2024 half-year performance release, conducted online with the presence of key management representatives including Chairman and CEO Hao Hengle and Executive Director and CEO Wang Dazhai [1] Key Points and Arguments - The call marks the company's mid-year performance review, indicating a focus on financial results and strategic direction for the upcoming period [1] Other Important Content - The format of the meeting is online, which reflects a trend in corporate communications, especially in the real estate sector, adapting to digital platforms for broader accessibility [1]

Financial Data and Key Metrics Changes - In the first half of 2024, the company's operating revenue was 25.1 billion, with a gross profit margin of 9.2%. The core net profit was 400 million, a decline of over 50% year-on-year [3][4] - The net debt ratio stood at 50.1%, with a cash-to-short-term debt ratio of 1.26. The total cash amount was 13.5 billion, maintaining a stable credit rating of 3A [3][4] - The average financing cost decreased to 4.54%, down 15 basis points year-on-year [4] Business Line Data and Key Metrics Changes - The company signed contracts worth 20.2 billion, with an average sales price of 11,398 per unit. The remaining land area was 24.69 million square meters, with an equity ratio of 73% [4][5] - The property management segment generated revenue of 1.7 billion, with a managed area of 69.89 million square meters [13][14] Market Data and Key Metrics Changes - The commercial projects generated revenue of 400 million, with 13 operational projects covering over 700,000 square meters [16][17] - The industrial park projects contributed 100 million in revenue, with a rental rate exceeding 92% [17] Company Strategy and Development Direction - The company aims to focus on perfect delivery, with a total of 26,000 units delivered in the first half of 2024 and an expected 28,000 units in the second half [11][12] - The restructuring plan involves spinning off the development business to allow for a more agile operation and better resource allocation [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the real estate sector despite current challenges, emphasizing the need for unconventional strategies to navigate the transitional phase [30][31] - The company targets a compound annual growth rate of at least 25% in revenue and 20% in net profit margin over the next few years [22][35] Other Important Information - The restructuring plan includes a cash alternative for shareholders at a price of 5.9 HKD, representing a 57.33% premium over the last trading day's closing price [5][6] - The company has a clear plan for future asset management and operational improvements, particularly in commercial properties [37][39] Q&A Session All Questions and Answers Question: Will the dividend distribution be more stable after the restructuring? - Management confirmed that the company has maintained an attractive dividend policy since its listing, with a payout ratio exceeding 40% and a total of 9 billion HKD distributed to shareholders [27][28] Question: Why choose restructuring over privatization? - Management explained that the restructuring allows the company to retain a public platform while addressing the challenges in the real estate sector, ensuring better resource utilization and flexibility [30][31] Question: What are the future plans for the commercial property segment? - Management indicated that the focus will be on enhancing the value of existing commercial assets and improving customer experience, with a target of maintaining a net profit margin above 65% [17][39] Question: How will the company ensure sustainable growth in third-party services? - Management highlighted the importance of building a strong reputation and customer base in the development and construction sectors, aiming for third-party services to account for over 20% of total development activities in the coming years [55][56]

Financial Performance - For the six months ended June 30, 2024, the group's revenue was RMB 25,134.11 million, with a gross profit of RMB 2,321.03 million[2]. - The core net profit for the period was RMB 642.47 million, with the attributable core net profit to the company amounting to RMB 418.56 million[2]. - The net profit before tax for the period was RMB 1,223.92 million, down from RMB 2,750.83 million in the previous year[6]. - The total comprehensive income for the period was RMB 596.18 million, compared to RMB 1,665.50 million in the same period last year[6]. - The company's profit attributable to shareholders for the six months ended June 30, 2024, is RMB 375,869,000, a decrease of 52% from RMB 782,097,000 in the same period of 2023[32]. - The basic earnings per share for the six months ended June 30, 2024, is RMB 0.26, down from RMB 0.58 in the same period of 2023, reflecting a decline of 55%[32]. - Operating profit fell by 86.5% to RMB 351.32 million, down from RMB 2,609.93 million in the same period of 2023[58]. - The group's gross profit decreased by 51.6% to RMB 2,321.03 million, down from RMB 4,792.27 million in the same period of 2023, mainly due to higher costs of recognized projects and increased impairment provisions for property development projects[65]. Revenue Breakdown - For the six months ended June 30, 2024, total revenue from property development and sales was RMB 24,104,751, a decrease of 32% from RMB 35,466,736 for the same period in 2023[19]. - Revenue from property management services increased to RMB 840,101, up 16% from RMB 724,887 in the previous year[19]. - The group's property development and sales recognized revenue was RMB 24,104.75 million, a decrease of 32.0% compared to RMB 35,466.74 million in the same period of 2023, primarily due to a reduction in recognized sales area[61]. - The group's property management service revenue increased by 15.9% to RMB 840.10 million, up from RMB 724.89 million in the same period of 2023, mainly due to an increase in the managed property area[62]. - The group's commercial property investment and operation revenue rose by 32.4% to RMB 189.26 million, compared to RMB 142.96 million in the same period of 2023, driven by property leasing services and cultural tourism project development[63]. Debt and Liabilities - As of June 30, 2024, the total interest-bearing debt was RMB 37.11 billion, a decrease of 2.5% compared to the end of the previous year[2]. - The company's total equity as of June 30, 2024, is CNY 47,148,088, a decrease from CNY 50,118,747 as of December 31, 2023, representing a decline of approximately 3.86%[9]. - Total liabilities decreased to CNY 131,849,953 from CNY 151,460,458, indicating a reduction of about 12.97%[10]. - The total liabilities as of June 30, 2024, were RMB 55,404,974,000, a decrease from RMB 59,525,590,000 as of December 31, 2023[44]. - The company's bank and other borrowings decreased to CNY 17,405,140 from CNY 19,202,605, a reduction of about 9.36%[10]. - The group's total borrowings were RMB 37,105.17 million, with a net debt ratio of 50.1%, up from 35.8% as of December 31, 2023, primarily due to a decrease in total cash and bank deposits[73]. Cash Flow and Financial Management - The company plans to accelerate the pre-sale and sale of properties under construction and completed properties to improve cash flow, which has been negatively impacted by the ongoing decline in the Chinese real estate market since 2021[12]. - The average actual interest rate on total borrowings during the reporting period was 4.54%[2]. - The company will continue to control sales and marketing expenses as well as administrative costs to manage cash flow effectively[12]. - The total amount of non-controlling interests decreased to CNY 21,949,151 from CNY 24,809,433, a decline of approximately 11.48%[9]. - The company has confirmed that its major shareholder intends to provide ongoing financial support to ensure the company can meet its financial obligations[12]. Market and Strategic Initiatives - The company is actively exploring new models for real estate development to adapt to the ongoing market adjustments and ensure high-quality growth[46]. - The company is focusing on providing quality housing and services as a strategy to navigate the challenging real estate market[46]. - The company aims to restructure its real estate development business to reduce debt and credit risk, focusing on a new business model that integrates development, property management, asset operation, and real estate technology[48]. - The company plans to integrate five self-operated commercial entities into its commercial business segment to enhance asset operation and management capabilities[52]. - The company is committed to exploring new value-added services in residential, industrial park, and healthcare sectors, aiming to create a comprehensive service system[50]. Corporate Governance and Compliance - The company has established an Audit Committee to assist the Board in the independent review of financial statements, risk management, and internal control systems[96]. - The company has complied with the Corporate Governance Code throughout the six months ended June 30, 2024, except for the separation of roles between the Chairman and CEO[94]. - The Chairman and CEO, Mr. Hao Hengle, has been serving in both roles, which the Board believes is beneficial for executing the company's long-term strategic goals[94]. - The company has appointed external internal control consultants annually to conduct a top ten risk assessment to identify and mitigate potential risks[95]. Employee and Shareholder Matters - As of June 30, 2024, the company employed 9,593 full-time employees, primarily located in China[85]. - The company has issued stock options and reward shares to incentivize eligible participants under the 2020 and 2021 plans, which have now been terminated in favor of new plans[86]. - The total number of new shares that can be granted under the 2024 Share Option Plan is capped at 143,541,148 shares, representing approximately 10% of the total shares issued as of May 24, 2024[91]. - The company did not declare an interim dividend for the six months ended June 30, 2024, compared to no dividend declared in the same period of 2023[97].

Financial Performance - Total revenue for 2023 was RMB 73,564.5 million, a slight decrease of 0.1% compared to RMB 73,630.8 million in 2022[4] - Gross profit decreased by 25.0% to RMB 8,483.6 million, with a gross margin of 11.5%, down from 15.4% in the previous year[4] - Net profit fell by 40.6% to RMB 2,125.1 million, resulting in a net profit margin of 2.9%, down from 4.9% in 2022[4] - Operating profit fell to RMB 4,306.61 million, down 37.0% from RMB 6,831.10 million in 2022[24] - The net profit attributable to the company's owners was RMB 913.58 million, representing a decline of 47.1% from RMB 1,726.36 million in 2022[35] - The total cash and bank deposits as of December 31, 2023, were RMB 20,141.70 million, down from RMB 26,390.87 million in 2022[36] - The company's total borrowings amounted to RMB 38,066.96 million as of December 31, 2023[37] - The total interest-bearing debt at the end of the reporting period was RMB 38.07 billion, a decrease of RMB 10.39 billion compared to the same period last year, with a net debt ratio of 35.8%[18] - The company reported a financial asset impairment loss of RMB 449,980 thousand in 2023, up from RMB 308,858 thousand in 2022, an increase of about 46%[177] - The company’s cash and cash equivalents decreased to RMB 17,553,071 thousand in 2023 from RMB 21,810,599 thousand in 2022, a decline of approximately 19.7%[178] Assets and Liabilities - The company’s total assets decreased by 20.0% to RMB 201,579.2 million, while total equity remained relatively stable at RMB 50,118.7 million, a decrease of only 0.4%[5] - Total assets as of December 31, 2023, were RMB 201,579,205 thousand, a decrease from RMB 251,938,754 thousand in 2022, representing a decline of approximately 20%[179] - Total liabilities decreased to RMB 151,460,458 thousand in 2023 from RMB 201,624,905 thousand in 2022, indicating a reduction of about 25%[179] - Non-current assets were RMB 38,931,877 thousand in 2023, compared to RMB 37,655,459 thousand in 2022, showing an increase of approximately 3.4%[178] Dividends and Shareholder Returns - The proposed final dividend per share is HKD 0.36, a decrease of 55.0% from HKD 0.80 in the previous year[4] - The company paid dividends to shareholders amounting to RMB 477,262 thousand in 2023, compared to RMB 403,054 thousand in 2022, representing an increase of about 18.4%[182] Market Strategy and Development - The company plans to focus on high-potential first and second-tier cities, targeting middle-class and high-net-worth customers for residential development[3] - Midea Real Estate aims to enhance its light-asset operational capabilities and expand third-party business through operational innovation[3] - The company aims to focus on high-paying families in first and second-tier cities, emphasizing technology, health, and energy-saving products[20] - The company plans to expand its market presence with new projects in cities like Xu Zhou and Nanjing, with several projects expected to complete by 2026[52] - The company is focusing on new product development and technology integration to enhance property offerings and customer experience[52] Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules to enhance transparency and accountability to shareholders[68] - The board believes that good corporate governance will help maximize shareholder value, reflecting a commitment to high governance standards[68] - The company has established a clear and transparent process for determining the compensation of individual executive directors and senior management[88] - The board consists of nine experienced members, including three independent non-executive directors, ensuring a balanced power structure[74] Risk Management - The group has established a risk management and internal control system to enhance accountability and communication regarding identified risks, aiming to provide reasonable assurance against material misstatements or losses[103] - The group faces various financial risks, including market risk, credit risk, and liquidity risk, with a focus on mitigating potential adverse impacts on financial performance[195] - The company is committed to enhancing its risk management framework and integrating it into business processes continuously[109] Employee and Workforce - As of December 31, 2023, the group employs 10,152 full-time employees, primarily located in China, with compensation based on performance and market levels[47] - The company plans to appoint at least one female director by December 31, 2024, to enhance gender diversity on the board[77] Project Development and Construction - The company delivered 140 projects with over 90,000 units in 2023, maintaining high delivery quality and customer satisfaction[20] - The company has ongoing projects with a total construction area of 1,200,000 square meters, including significant developments in Foshan and Yangjiang, expected to be completed by 2029[52] - The company is committed to delivering new residential projects, with a focus on quality and timely completion, to meet market demand[54] Financial Outlook - The company anticipates a steady growth trajectory, projecting a revenue increase of 15% year-over-year driven by new project launches and market expansion[52] - The cash flow forecast indicates that the company will have sufficient operating funds to meet its financial obligations for the next twelve months[189]

Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][11]. Core Insights - The company's operational fundamentals are solid, with a slight decrease in revenue of 0.1% year-on-year, totaling RMB 73.56 billion in 2023. The revenue contributions from property development and sales, property management services, and commercial property investment were RMB 71.68 billion, RMB 1.52 billion, and RMB 0.36 billion, reflecting year-on-year changes of -0.7%, +33.3%, and +22.5% respectively [6][9]. - The net profit attributable to the parent company was RMB 0.914 billion, a decrease of 47.1% year-on-year, with gross and net profit margins at 11.53% and 1.24%, down by 2.96 percentage points and 2.73 percentage points respectively [6][10]. - The company has maintained a competitive dividend policy, proposing a dividend of HKD 0.36 per share for the year ending 2023, continuing a six-year trend since its listing in 2018 [6][11]. - The company has successfully reduced leverage, with total interest-bearing liabilities at RMB 38.07 billion, down RMB 10.39 billion from the previous year, and a net debt ratio of 35.8% [6][10]. - The company has optimized its land reserve structure, acquiring five plots in cities like Guangzhou and Changsha at a cost of RMB 2.24 billion, adding a value of approximately RMB 7 billion [6][7]. - The company is transitioning to a new growth model through an integrated ecosystem of "Development + Operation + Technology," with significant growth in commercial sales and service contract areas [7][11]. Financial Summary - The company reported total revenue of RMB 73.564 billion in 2023, with a slight year-on-year decrease of 0.09% [9]. - The net profit for 2023 was RMB 0.914 billion, reflecting a year-on-year decline of 47.08% [9][10]. - The gross profit margin decreased to 11.53%, while the net profit margin was 1.24% [10][15]. - The company’s total assets were RMB 201.579 billion, with a debt-to-asset ratio of 75.14% [10][15]. - The forecast for 2024 indicates a revenue increase of 2.4%, with an expected EPS of RMB 0.66 [8][11].

Financial Performance - For the year ended December 31, 2023, the group's operating revenue was RMB 73,564.50 million, with a gross profit of RMB 8,483.57 million and total profit and comprehensive income of RMB 2,125.07 million[2]. - The core net profit for the year was RMB 2,256.45 million, with the attributable core net profit to the company amounting to RMB 1,029.72 million[2]. - The total comprehensive income for the year attributable to the company was RMB 913.58 million, down from RMB 1,726.36 million in the previous year[6]. - The operating profit for the year was RMB 4,306.61 million, compared to RMB 6,831.10 million in the previous year[5]. - The company's profit before tax for the year ended December 31, 2023, was RMB 4,486,978 thousand, a decrease of 34.5% compared to RMB 6,888,005 thousand for the year ended December 31, 2022[30]. - Net profit decreased by 40.6% to RMB 2,125.07 million, down from RMB 3,576.77 million in 2022[59]. - Core net profit dropped by 41.7% to RMB 2,256.45 million, compared to RMB 3,870.19 million in 2022[59]. - Basic earnings per share for the year ended December 31, 2023, was RMB 0.66, a decline of 50% from RMB 1.34 in 2022[33]. Revenue Breakdown - Total revenue for the property development and sales segment was RMB 71,679,140,000 for the year ended December 31, 2023, a slight decrease from RMB 72,192,121,000 in 2022[16]. - Revenue from property management services increased to RMB 1,521,957,000 in 2023, up from RMB 1,142,112,000 in 2022, representing a growth of approximately 33.2%[16]. - The group's recognized revenue from property development and sales for the year was RMB 58,087,021,000, compared to RMB 57,411,558,000 in 2022[22]. - Revenue from commercial property investment and operations rose by 22.5% to RMB 363.40 million, up from RMB 296.62 million in 2022, attributed to the recovery of leasing and cultural tourism projects post-pandemic[63]. Assets and Liabilities - As of December 31, 2023, the asset-liability ratio after deducting advance receipts was 67.3%, and the net debt ratio was 35.8%[2]. - The total interest-bearing debt as of December 31, 2023, was RMB 38.07 billion, a decrease of 21.4% compared to the end of the previous year[2]. - Total assets decreased from RMB 251,938,754 thousand in 2022 to RMB 201,579,205 thousand in 2023, a decline of approximately 20%[8]. - Total liabilities decreased from RMB 201,624,905 thousand in 2022 to RMB 151,460,458 thousand in 2023, a reduction of around 25%[8]. - The company's equity attributable to owners decreased slightly from RMB 24,864,820 thousand in 2022 to RMB 25,309,314 thousand in 2023, an increase of about 1.8%[8]. Cash Flow and Financing - The average effective interest rate for the year was 4.80%[2]. - The company's total current liabilities decreased from RMB 166,263,702 thousand in 2022 to RMB 125,275,600 thousand in 2023, a decrease of approximately 24.7%[8]. - The company's retained earnings increased from RMB 15,876,293 thousand in 2022 to RMB 16,032,062 thousand in 2023, an increase of about 1%[8]. - The total cash and bank deposits as of December 31, 2023, were RMB 20,141.70 million, down from RMB 26,390.87 million in 2022[71]. - The net debt ratio improved to 35.8% as of December 31, 2023, compared to 43.9% in 2022, reflecting a decrease in net debt[72]. Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.36 per share for the year ended December 31, 2023, compared to HKD 0.80 per share in 2022[36]. - The company issued 79,460,990 shares as part of the final dividend payment, with a total market value of approximately RMB 495,822,000[46]. - The proposed final dividend for the year ended December 31, 2022, was HKD 0.80 per share, down from HKD 1.60 per share in 2021, a reduction of 50%[46]. Operational Highlights - The company delivered 140 projects, totaling over 90,000 units in 2023, ensuring stable and high-quality delivery[53]. - The total land reserve reached 28.16 million square meters, covering 327 property development projects across five major economic regions[60]. - The service segment reported a contract area of 90.32 million square meters, with a managed area of 65.35 million square meters and a customer satisfaction score consistently above 89[55]. - The green prefabricated industry achieved a cumulative production capacity of over 130,000 cubic meters, with external project contributions reaching 98.2%[56]. - The company has delivered approximately 51,000 households, positioning itself among the industry leaders in market share[57]. Risk Management and Compliance - The company does not anticipate significant adverse effects on its business or financial condition from ongoing litigation and legal proceedings[80]. - The audit committee reviewed the consolidated financial statements for the year ended December 31, 2023, ensuring compliance with accounting principles and risk management[91]. - The company has maintained compliance with the corporate governance code as of December 31, 2023, despite the chairman also serving as CEO[89]. - The company conducts annual risk assessments with external consultants to identify and mitigate potential operational risks[90].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 36,334.6 million, an increase of 14.8% from RMB 31,662.9 million in 2022[14]. - Core net profit for the same period was RMB 1,750.4 million, a decrease of 36.0% compared to RMB 2,735.5 million in 2022[14]. - The net profit attributable to the company's owners was RMB 782.1 million, down 49.2% from RMB 1,538.1 million in the previous year[14]. - Operating profit decreased by 33.0% to RMB 2,609.93 million, down from RMB 3,897.52 million in the previous year[26]. - Profit for the period was RMB 1,665.50 million, a decline of 36.1% from RMB 2,608.37 million year-on-year[26]. - Basic and diluted earnings per share were RMB 0.58, down from RMB 1.25 in the same period of 2022, reflecting a decrease of 53.6%[26]. - The company reported a net loss of RMB 110.81 million in other income and gains, compared to a net gain of RMB 252.34 million in the same period of 2022[62]. - The company reported a profit of RMB 782,097 thousand for the six months ended June 30, 2023[174]. Assets and Liabilities - Total assets as of June 30, 2023, were RMB 231,466.8 million, a decrease from RMB 251,938.8 million at the end of 2022[15]. - The company's total liabilities as of June 30, 2023, amounted to RMB 105,982,131, compared to RMB 109,362,426 as of December 31, 2022, reflecting a decrease of about 3.5%[134]. - The total equity attributable to owners of the company decreased from RMB 24,864,820 thousand to RMB 24,659,239 thousand, a decline of about 1%[110]. - The company's cash and cash equivalents decreased from RMB 21,810,599 thousand to RMB 18,436,816 thousand, a decline of around 15%[110]. - The group provided guarantees for mortgage loans amounting to RMB 71,971.17 million as of June 30, 2023, down from RMB 84,719.42 million as of December 31, 2022[70]. Cash Flow and Financing - The net cash flow from operating activities for the first half of 2023 was RMB 1,440,420 thousand, a significant improvement compared to a net cash outflow of RMB 1,750,418 thousand in the same period of 2022[115]. - The company incurred a net cash outflow of RMB 5,732,973 thousand from financing activities, compared to RMB 7,574,523 thousand in the same period of 2022[115]. - The total borrowing cost for the reporting period was RMB 1,085.15 million, a decrease of RMB 281.61 million compared to RMB 1,366.76 million in the same period of 2022[69]. - The group has multiple contingency plans to mitigate potential adverse impacts on forecasted cash flows due to significant economic changes[125]. Property Development and Sales - During the reporting period, the company achieved a contract sales amount of approximately RMB 40.56 billion, with a sold building area of about 3.206 million square meters, and an average sales price increase of 3.4% to RMB 12,653 per square meter[20]. - The total revenue for property development and sales reached RMB 35,466,736, an increase from RMB 30,971,210 in the previous year, representing a growth of approximately 14.4%[133]. - Revenue recognized from property development and sales for the six months ended June 30, 2023, was RMB 29,944,116,000, an increase of 15.4% compared to RMB 25,937,984,000 for the same period in 2022[138]. - The total contract assets related to property development and sales decreased to RMB 894,750 from RMB 1,148,069, a decline of approximately 22.1%[135]. Strategic Initiatives and Market Position - The company aims to lead industry development through innovation and transformation, focusing on smart and healthy living solutions[3]. - The company plans to continue optimizing its investment layout, focusing on high-quality cities to enhance its risk resilience[24]. - The company aims to strengthen its brand premium capabilities while emphasizing diversified real estate-related businesses to cultivate core competitive advantages[24]. - The company plans to continue expanding its market presence and product offerings in response to current market pressures[27]. Shareholder and Governance Information - The company has complied with the Corporate Governance Code as of June 30, 2023, except for the deviation mentioned regarding the roles of the Chairman and CEO[79]. - The board consists of four executive directors, two non-executive directors, and three independent non-executive directors, meeting the requirement of having at least three independent non-executive directors[81]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2023[87]. - The company granted a total of 66,660,000 share options to 193 eligible participants on April 22, 2021, with a fair value of approximately RMB 170.47 million[90]. Operational Performance - The company delivered over 40,000 homes nationwide, with 64% of batches delivered ahead of schedule, achieving a customer satisfaction rate in the industry’s top tier[22]. - The property management business has a contracted area of 91.14 million square meters and a managed area of 58.6 million square meters, demonstrating strong cash flow operations[23]. - The company has completed 92 delivery projects, cumulatively delivering 39,000 households, maintaining a leading market share in the industry[23]. - The property management service revenue increased by 30.0% to RMB 724.89 million, compared to RMB 557.58 million in the previous year[58].

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。 MIDEA REAL ESTATE HOLDING LIMITED 美的置業控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：3990） 截 至2023年6月30日 止 六 個 月 中 期 業 績 | --- | --- | |-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Performance - Total revenue for 2022 was RMB 73,630.8 million, a slight decrease of 0.1% compared to RMB 73,703.1 million in 2021[11] - Gross profit decreased by 16.2% to RMB 11,306.4 million, with a gross margin of 15.4%, down from 18.3% in the previous year[11] - Net profit fell by 32.5% to RMB 3,576.8 million, resulting in a net profit margin of 4.9%, down from 7.2%[11] - Operating profit decreased by 14.8% to RMB 6,831.10 million from RMB 8,021.88 million in 2021[38] - Core net profit fell by 29.1% to RMB 3,870.19 million from RMB 5,457.54 million in 2021[38] Assets and Liabilities - The company’s total assets decreased by 12.7% to RMB 251,938.8 million, while total liabilities to total assets ratio improved to 80.0% from 83.4%[12] - The total equity increased by 5.2% to RMB 50,313.8 million, with a return on equity of 6.9%[12] - The company's net debt ratio stands at 43.9%, with a cash-to-short-term debt ratio of 1.60, indicating strong financial health[27] - The total interest-bearing debt amounts to 48.5 billion yuan, while cash holdings are approximately 26.4 billion yuan, with unused bank credit lines increasing to 108 billion yuan[27] Land and Property Development - The total land reserve reached 38.74 million square meters, covering 332 property development projects across five major economic regions[5] - The company participated in 332 property development projects with a total land reserve of 38.74 million square meters as of December 31, 2022[29] - The company’s land reserve equity ratio reached 70%, with 66% of the area located in first- and second-tier cities[29] - The company has a total land reserve area of 2,500,000 square meters across various projects, with 1,000,000 square meters available for sale and rental[78] Sales and Revenue Growth - The company achieved a contract sales amount of approximately RMB 79.24 billion, with a sold building area of about 6.316 million square meters during the reporting period[31] - The average sales price increased by 8% to RMB 12,546 per square meter compared to 2021, with sales from second-tier cities and above accounting for 82%[31] - The company’s revenue from smart home solutions grew by 33%, with 230 projects delivered and over 160,000 households served[33] - The company’s commercial operations saw a 19% increase in foot traffic and a 27% increase in sales revenue year-on-year[32] Strategic Partnerships and Financing - The company issued RMB 1.5 billion in medium-term notes, becoming the first real estate company to obtain such approval[15] - Strategic partnerships were established with major banks, securing RMB 390 billion for mergers and affordable rental housing loans[15] - The company has received over 150 billion yuan in credit support from major banks, including strategic agreements with state-owned banks[28] Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules to enhance transparency and accountability to shareholders[103] - The board believes that good corporate governance will help maximize shareholder value[103] - The management team includes experienced professionals with diverse backgrounds in finance, accounting, and management, contributing to strategic decision-making[99][100][101] Risk Management - The company aims to enhance its risk resilience by continuously optimizing its financing structure and maintaining sufficient cash flow and credit lines[139] - The risk management system includes a clear structure with designated responsibilities, focusing on identifying and mitigating significant risks related to business strategies and objectives[139] - The company has established a comprehensive anti-fraud system, including clear guidelines on business ethics and anti-corruption measures[142] Employee and Workforce - The company employs 11,159 full-time employees, primarily located in China, with a comprehensive benefits plan and career development opportunities[61] - As of December 31, 2022, the company employed 11,159 full-time employees, with 4,433 females, representing approximately 40% of the workforce[111] - The proportion of women in senior management is about 8.1%[111] Sustainability and Innovation - The company is committed to sustainable development, managing environmental resources and fostering strong relationships with stakeholders[183] - The company has developed low-carbon new materials and space products, enhancing product upgrades and capabilities for the Greater Bay Area market[93] - The company aims to actively participate in industry standard upgrades to support high-quality development in building technology and achieve carbon neutrality goals[92] Shareholder Communication and Dividends - The company has adopted a shareholder communication policy to ensure shareholders receive unbiased and comprehensible information regarding financial performance, strategic goals, and significant developments[135] - The proposed final dividend for the year ending December 31, 2022, is HKD 0.80 per share, down from HKD 1.60 per share in 2021[150] - The company will send a circular detailing the scrip dividend plan to eligible shareholders around July 7, 2023[150]