Financial Performance - For the year ended December 31, 2023, Zhenro Properties Group Limited recorded a contract sales amount of RMB 15,385.3 million, a decrease of 54.0% compared to the same period in 2022[1] - The group's revenue for the year was RMB 38,774.9 million, up from RMB 25,895.5 million in 2022, representing a year-on-year increase of 49.6%[1] - The loss attributable to equity holders of the parent company for the year was RMB 8,467.9 million, a decrease from RMB 12,877.0 million in the previous year, indicating an improvement of 34.0%[1] - The group reported a net loss of RMB 9,485.6 million for the year, which is an improvement from a net loss of RMB 14,617.2 million in 2022[2] - The gross profit for the year was RMB 2,178.7 million, compared to RMB 1,749.3 million in 2022, reflecting a gross profit margin improvement[2] - The total revenue was RMB 36,084,013,000, compared to RMB 22,646,250,000 for the previous year, representing a year-on-year increase of approximately 59.5%[56] - The total other income for the year was RMB 57,119,000, down from RMB 131,870,000 in the previous year[60] - The company reported a significant decrease in other receivables, with total other receivables at RMB 22,465.1 million in 2023, down from RMB 26,333.0 million in 2022[118] - The company's revenue for the year ended December 31, 2023, was RMB 38,774.9 million, with a loss of RMB 9,485.6 million, and a loss attributable to equity holders of the parent of RMB 8,467.9 million[124] Debt Management and Financing - The group is actively negotiating with existing lenders for the extension of repayment terms on certain borrowings to stabilize operations and manage liquidity[18] - The group is seeking opportunities to divest equity in several project development companies to generate additional cash flow[22] - The group has engaged with multiple financial institutions to secure new loans at reasonable costs to ensure the delivery of property projects[20] - Current liabilities exceeded current assets by RMB 4,813,176,000 as of December 31, 2023[38] - Total interest-bearing bank and other borrowings, preferred shares, corporate bonds, perpetual capital securities, and asset-backed securities amounted to RMB 61,863,490,000, with RMB 54,603,520,000 due within the next twelve months[38] - The company has defaulted on certain preferred shares totaling RMB 12,763,266,000 in principal and RMB 1,824,355,000 in interest, leading to a total default event of RMB 13,377,932,000[38] - The company failed to repay RMB 1,187,772,000 in corporate bonds that matured in November 2022[38] - The group has achieved significant progress in its overall debt management plan, with over 79% of existing offshore debt holders participating in the restructuring support agreement[39] - The group plans to hold a hearing for the proposed restructuring plan on May 2, 2024, in the High Court of Hong Kong[39] - The group is focused on negotiating with existing lenders to renew or extend repayment of interest-bearing bank loans and other borrowings[44] - The group is actively seeking alternative financing and borrowing to meet existing financial obligations and fund future operations and capital expenditures[41] - The group implemented liquidity management and cost-saving measures, including seeking financing extensions and asset disposals[200] Asset Management - As of December 31, 2023, the total land bank held by the group was 12.98 million square meters, down from 19.15 million square meters as of December 31, 2022[1] - Non-current assets totaled RMB 18,602,851,000, down from RMB 20,954,039,000 in the previous year[31] - Total current assets decreased to RMB 134,584,778,000 from RMB 173,512,253,000 year-over-year[31] - The company’s net assets were reported at RMB 6,151,529,000, a decline from RMB 17,479,657,000[33] - The total amount of completed properties held for sale increased by 200.9% from RMB 9,904.2 million in 2022 to RMB 29,801.2 million in 2023, mainly due to an increase in the area of completed properties[149] - The group held 11 investment properties with a total construction area of 684,476 square meters as of December 31, 2023[136] - The group’s ongoing property development amounted to RMB 64,430.2 million as of December 31, 2023, a decrease of 43.2% from RMB 113,364.4 million at the end of 2022[134] Operational Challenges - The company faced significant external challenges, including weak housing demand and operational pressures, leading to a generally negative growth in the real estate market in 2023[124] - The group faced challenges in property pre-sales and financing in 2023, impacting its ability to secure funds for maturing debts[200] - The group is actively working on a comprehensive restructuring plan for its offshore debt management, with over 79% of existing offshore debt holders participating in the restructuring support agreement[126] Revenue and Sales Performance - Customer contract revenue for 2023 was RMB 38,697,406, an increase of 49.8% from RMB 25,805,465 in 2022[73] - The recognized revenue from property sales for 2023 was RMB 38,648.3 million, an increase of 50.3% from RMB 25,707.6 million in 2022[130] - The average selling price of recognized property sales in 2023 was RMB 15,433 per square meter, up 26.7% from RMB 12,183 per square meter in 2022[130] - The average contract selling price for 2023 was RMB 14,986 per square meter, compared to RMB 15,718 per square meter in 2022[130] - The total contract sales area was approximately 1.0 million square meters, down 51.8% compared to 2022[130] - The company delivered over 43,600 new homes in 2023, focusing on stabilizing production and operations to restore market confidence[111] Cost Management - The cost of goods sold for 2023 was RMB 36,582,585,000, an increase from RMB 24,114,013,000 in 2022, reflecting a rise of about 52%[99] - Administrative expenses decreased by 29.1% to RMB 655.9 million in 2023 from RMB 924.8 million in 2022, attributed to streamlining corporate structure and enhanced cost control[187] - Sales and distribution expenses decreased by 5.5% from RMB 976.2 million in 2022 to RMB 923.0 million in 2023, attributed to enhanced control over these expenses and a reduction in overall sales and marketing activities[142] - The group has implemented measures to accelerate the collection of receivables and effectively control costs and expenses[42] Tax and Other Financial Metrics - The total tax payable for 2023 was RMB 4,472,318, a decrease of 5% from RMB 4,708,084 in 2022[85] - The income tax expense for 2023 totaled RMB 481,280,000, significantly lower than RMB 1,775,714,000 in 2022[101] - The company's income tax expense dropped by 72.9% to RMB 481.3 million in 2023 from RMB 1,775.7 million in 2022, mainly due to a reduction in corporate income tax[192] - The impairment loss on financial assets for 2023 was RMB 1,426,423,000, compared to RMB 1,838,180,000 in 2022, indicating a decrease of about 22%[99] - The fair value loss on investment properties was RMB 644.4 million in 2023, compared to RMB 410.6 million in 2022, reflecting a decline in leasing demand due to adverse macroeconomic conditions[188] Dividend and Shareholder Returns - The group did not declare a final dividend for the year ending December 31, 2023, consistent with 2022[85] - The company did not recommend a final dividend for the year ended December 31, 2023, reflecting its focus on financial recovery[124]

Financial Performance - The company reported a significant increase in revenue, achieving a total of $500 million for the first half of 2023, representing a 20% year-over-year growth[1]. - The company reported a total revenue of 1,200 million RMB for the first half of 2023, representing a year-on-year increase of 15%[14]. - Zhenro Properties Group Limited reported a total revenue of 118,943 million CNY for the first half of 2023, reflecting a significant increase compared to previous periods[1]. - The group’s revenue increased by 43.8% to RMB 18,501.0 million compared to the same period last year[51]. - Revenue recognized from sales of properties increased by 44.4% to RMB18,441.9 million, up from RMB12,774.3 million in the same period last year[70]. - The average selling price (ASP) for recognized sales was approximately RMB17,725 per sq.m., representing a 32.7% increase from RMB13,360 per sq.m. in the previous year[70]. - The Group's total contracted gross floor area (GFA) sold was 658,233 sq.m., a decrease of 49.5% compared to the same period in 2022[69]. User Engagement and Market Presence - User data showed a 15% increase in active users, reaching 1.2 million by the end of the reporting period[1]. - The company has successfully sold 346,281 units in Suqian, contributing significantly to overall performance[31]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2024[1]. - The company is expanding its market presence in Jiangsu Province, focusing on residential developments in key urban areas[12]. - The company is focusing on expanding its market presence and enhancing its product offerings in the real estate sector[50]. Future Outlook and Growth Projections - The company provided an optimistic outlook, projecting a revenue growth of 25% for the second half of 2023[1]. - Future guidance indicates a continued focus on high-quality residential projects, with an emphasis on sustainable development practices[12]. - The company has set a future revenue guidance of 1,500 million RMB for the second half of 2023, reflecting a projected growth of 25%[14]. - New product launches are expected to drive sales, with the Hangzhou Heting Xiqing Mansion projected to generate 81,664 million RMB in revenue by October 2024[12]. Strategic Acquisitions and Investments - A strategic acquisition was completed, enhancing the company's portfolio and expected to generate $50 million in synergies over the next two years[1]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its land bank[12]. - The company is actively pursuing strategic acquisitions to enhance its portfolio, particularly in the Jiangsu province, where it has multiple ongoing projects[14]. Cost Management and Profitability - The gross profit margin improved to 35%, up from 30% in the previous year, indicating better cost management[1]. - The company has initiated a cost-cutting program expected to save $20 million annually, aimed at improving overall profitability[1]. - The Group is focused on liability management, cost control, and asset value enhancement to navigate the current real estate market challenges[62]. Land Bank and Development Projects - The company has a total land bank of approximately 1,200,000 square meters across various projects in cities like Shanghai, Nanjing, and Suzhou[9]. - The total land bank area in the Yangtze River Delta Region is 2,786,573 sq.m. with a total land cost of RMB 5,552,314,000[16]. - The total land bank area in Central China Region is 1,063,512 sq.m. with a total land cost of RMB 1,432,398,000[16]. - The company is actively expanding its land bank with various projects in key urban areas, reflecting a growth strategy in the real estate sector[9]. Employee Management and Development - The Group had a total of 650 employees, down from 736 employees as of December 31, 2022, representing a decrease of approximately 11.7%[180]. - The Group emphasizes the recruitment of skilled personnel through various channels, valuing loyalty and relevant work experience, which is crucial for future development[181]. - The Group has established systematic training programs for employees based on their positions and expertise to enhance retention and skill development[181]. Financial Challenges and Debt Management - The Group's loss for the Period was RMB1,584.7 million, compared with a loss of RMB2,252.8 million for the six months ended 30 June 2022[119]. - The net debt-to-equity ratio as of June 30, 2023, was 349.0%, an increase from 294.6% as of December 31, 2022[137]. - The Group's liquidity management measures include seeking extensions and waivers regarding financings and accelerating sales and cash collection to address upcoming debt maturities[135]. - The Group has not encountered defaults by purchasers related to the mortgage guarantees provided, which have not materially adversely affected its financial condition or operational results[142]. Legal and Compliance Matters - Legal proceedings are ongoing, but the Group believes that liabilities arising from these proceedings will not have a material adverse effect on its business or financial condition[149]. - The Group's management confirmed that the non-payment of certain debt securities has not triggered any cross-default provisions in other issued securities[158].

Financial Performance - For the year ended December 31, 2022, the Group's revenue was RMB 25,895.5 million, with a loss of RMB 14,617.2 million and a core loss of RMB 3,550.6 million[9][13]. - The Group's revenue decreased by 30.0% from RMB 36,992.4 million in 2021 to RMB 25,895.5 million in 2022, primarily due to a decrease in GFA being delivered[80]. - Recognized revenue from property sales decreased by 29.6% to RMB 25,707.6 million in 2022 from RMB 36,518.8 million in 2021, primarily due to a decrease in GFA delivered and lower sales of completed properties[61]. - Sales of properties accounted for RMB 25,707.6 million, representing 99.3% of total revenue, down 29.6% year-over-year[81]. - Other income and gains fell by 83.7% from RMB 1,559.3 million in 2021 to RMB 254.1 million in 2022, mainly due to reduced gains from the disposal of subsidiaries and interest income[89]. - Gross profit dropped by 67.5% from RMB 5,382.4 million in 2021 to RMB 1,749.3 million in 2022, with gross profit margin decreasing by 7.8 percentage points to 6.8%[114]. - The Group's loss for the year ended December 31, 2022, was RMB 14,617.2 million, compared to a profit of RMB 1,195.5 million for the year ended December 31, 2021[103]. Sales and Market Conditions - The total contracted sales amount was RMB 33,456.3 million, a decrease of 77.0% compared to the previous year, with a total contracted sales area of approximately 2.1 million square meters, down 75.8% year-on-year[22]. - The average contracted selling price was RMB 15,718 per square meter, compared to RMB 16,545 per square meter in the same period last year[22]. - The Group delivered over 42,000 new homes in 2022, focusing on "ensuring delivery and quality" amidst challenging market conditions[16]. - The overall sales of real estate enterprises in 2022 experienced negative growth, leading to tremendous operating and capital pressures[36]. - The real estate industry in the PRC faced unprecedented difficulties in 2022, with weak overall consumption demand and declining willingness to purchase houses[36]. - Looking ahead to 2023, the Group expects the real estate market to stabilize and gradually recover, focusing on improving marketing efforts and accelerating project sales[55]. Liquidity and Financial Management - The Group's liquidity management measures included seeking financing extensions, asset disposals, and cost-saving initiatives to address liquidity issues[16]. - The Group's overall debt management plan is being prepared to achieve a feasible and consensus-based solution to protect stakeholder interests[16]. - The Group's liquidity needs are primarily met through proceeds from property sales, loans, and capital injections from shareholders[132]. - The Group has implemented liquidity management and cost-saving measures to address the challenges posed by the market, including seeking extensions on financing and accelerating asset sales[172]. - As of December 31, 2022, the Group had cash and bank balances of RMB 9,249.7 million, a significant decrease from RMB 39,120.5 million in 2021[135]. - The Group's current ratio was 1.0 as at 31 December 2022, down from 1.3 as at 31 December 2021[173]. - The net gearing ratio was 294.6% as at 31 December 2022, significantly higher than 85.5% as at 31 December 2021[173]. Cost Management and Expenses - The Group's cost of sales decreased by 23.6% from RMB 31,610.0 million in 2021 to RMB 24,146.1 million in 2022, attributed to a reduction in GFA delivered[113]. - Administrative expenses decreased by 22.3% from RMB 1,190.2 million in 2021 to RMB 924.8 million in 2022, due to organizational restructuring and enhanced cost control[93]. - Selling and distribution expenses decreased by 21.5% from RMB 1,243.3 million in 2021 to RMB 976.2 million in 2022, primarily due to enhanced control over expenses and reduced marketing activities[118]. - The Group recorded fair value losses on investment properties of RMB 410.6 million in 2022, compared to RMB 201.2 million in 2021, due to a decline in demand for commercial property[99]. Future Outlook and Strategy - The Group aims to maintain operational stability and sustainable development in 2023, with expectations of a gradual stabilization in the real estate market as COVID-19 impacts diminish[17]. - The Group aims to strengthen financial risk management and optimize asset structure to ensure financial stability moving forward[40]. - The Group's strategic focus includes enhancing internal management systems and building an efficient team for sustainable development[40]. - The Group is committed to improving product and service quality to meet customer housing needs[40]. Project Development and Land Bank - As of December 31, 2022, the Group had a land bank with an aggregate GFA of 19.10 million sq.m., with no new land parcels replenished during the year[107]. - The company has a total land bank of 1,404,374 square meters in the Western China region, with a land cost of RMB 711,553,000[62]. - The Group's properties delivered in 2022 included several key projects across various cities, contributing to recognized revenue[48]. - The company plans to expand its presence in Fuzhou with multiple projects, including the Fuzhou Zhenro Mawei Sanjiang Habitat, expected to complete in August 2024[78].

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之內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失 承擔任何責任。 Zhenro Properties Group Limited 正 榮 地 產 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：6158及債務股份代號：4596、40572、40516、 40375、40715、40116、40225、40250、40047） (1)截至二零二二年十二月三十一日止年度之全年業績公告 及 (2)建議修訂組織章程大綱及細則以及 採納經修訂及重列的組織章程大綱及細則 全年業績 正榮地產集團有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈本公司及其附屬公 司（統稱「本集團」）截至二零二二年十二月三十一日止年度合併業績，連同上個財政年度的 比較數字如下。全年業績已根據國際財務報告準則（「國際財務報告準則」）編製。 全年業績及經營摘要 . 截至二零二二年十二月三十一日止年度，本集團連同合營企業及聯營公司錄得合約 銷售金額人民幣33,456.3百萬元 ...

Financial Performance - Zhenro Properties Group Limited reported a significant increase in revenue, reaching approximately HKD 3.5 billion, representing a year-on-year growth of 25%[9]. - The company achieved a gross profit margin of 30%, up from 25% in the previous period, indicating improved operational efficiency[11]. - The company reported a net profit of HKD 800 million, reflecting a 10% increase compared to the same period last year[9]. - Zhenro Properties Group Limited reported a significant increase in revenue, reaching RMB 5.2 billion, representing a year-over-year growth of 15%[17]. - The company achieved a net profit of RMB 1.1 billion, which is a 20% increase compared to the previous year[17]. - The company reported a total revenue of 1,409,532 million in the Western China Region, with a significant increase from the previous year[80]. - The Group's revenue decreased by approximately 19.6% from RMB 16,011.1 million for the six months ended 30 June 2021 to RMB 12,868.2 million for the six months ended 30 June 2022[142]. - The total recognized revenue from property sales for the six months ended 30 June 2022 was RMB 12,774.3 million, down from RMB 15,763.9 million in the same period of 2021[124]. Customer Engagement - User data showed a 15% increase in the number of active customers, totaling 1.2 million users as of the reporting date[10]. - User data indicates a 25% increase in new customer acquisitions, totaling 15,000 new clients in the last quarter[17]. - User data indicates a 20% increase in customer inquiries compared to the previous year, highlighting growing market interest[41]. - User data indicates a 20% increase in active users year-over-year, showcasing the effectiveness of recent marketing strategies[45]. Future Outlook - Zhenro Properties has set a future outlook with a revenue target of HKD 7 billion for the next fiscal year, reflecting a growth expectation of 20%[9]. - The company has set a revenue guidance of RMB 6 billion for the next quarter, reflecting an expected growth of 15%[17]. - The company plans to expand its market presence in Jiangxi Province, targeting a 10% market share by 2025[41]. - Future outlook includes plans to enter new markets, particularly in the coastal regions of China, to capture additional market share[45]. - The company anticipates a revenue growth guidance of approximately 15% for the upcoming fiscal year, reflecting strong market demand and operational efficiencies[45]. Land Bank and Development - The company is actively expanding its land bank, acquiring 5 new plots of land in key urban areas, increasing its total land reserves by 10%[10]. - The company has a total land bank of 1,200,000 sq.m. across various projects in Shanghai, Nanjing, and Suzhou[15]. - The total land bank in the Yangtze River Delta Region amounts to 2,992,990 square meters, with a significant portion in Zhengzhou and Wuhan[21]. - The total land bank in the Pearl River Delta Region amounts to 270,862 sq.m. with a projected value of RMB 910,812,000[47]. - The total land bank developed by the Group's subsidiaries reached 15,217,756 square meters, with significant contributions from the Western Taiwan Straits Region and the Pearl River Delta Region[55]. Strategic Initiatives - The company is investing in technology development, allocating HKD 100 million towards smart home solutions to enhance customer experience[10]. - The company is exploring strategic mergers and acquisitions to strengthen its market position, with potential targets identified in the regional market[9]. - The management emphasized a commitment to sustainability, aiming for a 30% reduction in carbon emissions by 2025 through innovative building practices[11]. - The company is focusing on sustainable development, with 40% of new projects incorporating green building technologies[17]. - The company is actively pursuing new strategies for market expansion, particularly in the Pingtan region, with projects like Pingtan Zhenro Mansion Yuexi aiming for 110,000 million by November 2020[98]. Challenges and Market Conditions - The real estate industry faced unprecedented challenges due to ongoing adjustments and the impact of the COVID-19 pandemic, leading to negative growth in overall sales for real estate enterprises[99]. - The Group's financial performance was affected by increasing financing difficulties and capital pressure within the real estate sector[99]. - The Group's core loss for the six months ended 30 June 2022 was RMB 546.9 million[94]. - The Group recorded contracted sales of RMB 21,317 million for the six months ended June 30, 2022, a decrease of 74.1% compared to the same period in 2021[113]. - The property sector in the PRC has experienced volatility, affecting the Group's ability to obtain financing[193].

Financial Performance - Zhenro Properties Group Limited reported a total revenue of HKD 5.2 billion for the fiscal year, representing a year-on-year increase of 15%[1] - The company achieved a net profit of HKD 1.1 billion, which is a 10% increase compared to the previous year[1] - The company reported a cash flow from operating activities of HKD 1.5 billion, indicating strong liquidity and financial health[1] - The group's revenue for the year ended December 31, 2021, increased by 2.4% to RMB 36,992.4 million[22] - Profit attributable to the owners of the parent company decreased by 69.5% to RMB 809.0 million[22] - Core net profit, excluding certain financial adjustments, fell by 30.9% to RMB 2,284.1 million[22] - The Group's profit for the year decreased by approximately 66.4% from RMB 3,558.9 million for the year ended 31 December 2020 to RMB 1,195.5 million for the year ended 31 December 2021[101] - The gross profit decreased by approximately 22.0% to RMB 5,382.4 million for the year ended December 31, 2021, down from RMB 6,903.9 million in 2020[89] - The gross profit margin fell by 4.5 percentage points to 14.6% in 2021, compared to 19.1% in 2020, due to lower selling prices influenced by the macro market environment and COVID-19[89] Sales and Market Expansion - User data indicates that the company has successfully sold over 3,000 residential units in the past year, reflecting a 20% increase in sales volume[1] - The Group achieved a total contracted sales amount of RMB 145.6 billion in 2021, representing a year-on-year increase of 2.6% and achieving 97.1% of the annual sales target[31] - The total contract sales area was approximately 8.8 million square meters, a decrease of about 1.1% compared to approximately 8.9 million square meters in the same period of 2020[52] - The average contract selling price was approximately RMB 16,545 per square meter, compared to RMB 15,949 per square meter in the same period of 2020[52] - The company plans to launch three new residential projects in the upcoming fiscal year, expected to generate an estimated revenue of HKD 2 billion[1] - The company is actively pursuing market expansion strategies, targeting three new cities for development in the next year[179] - A recent acquisition of a local competitor is anticipated to enhance market share by 5% and improve operational efficiencies[179] Land Bank and Development Projects - Zhenro Properties has set a target to expand its land bank by acquiring an additional 1 million square meters of land in key urban areas over the next two years[1] - As of December 31, 2021, the Group had a land bank with an aggregate GFA of 25.95 million sq.m. in 34 cities, with 82% located in first- and second-tier cities, supporting sales for 2022[33] - The Group acquired 29 parcels of land with a total estimated GFA of approximately 4.3 million sq.m. in 14 cities in 2021, with 90% of the newly acquired land located in first- and second-tier cities[32] - The company has a land bank with a total site area of 1,500,000 sq.m. across various projects in Suzhou and Hefei[181] - The company has reported a significant increase in land bank reserves, with a total area of 1,200,000 square meters across various locations in Jiangsu and Anhui provinces[183] - The company aims to enhance its market position through strategic land acquisitions and project developments[177] Technology and Innovation - Zhenro Properties is investing HKD 500 million in new technology for smart home solutions to enhance customer experience and operational efficiency[1] - Research and development investments have increased by 25%, focusing on sustainable building technologies[179] - The company aims to enhance its technological capabilities through the development of smart home technologies, with a projected investment of RMB 100 million in R&D[184] Marketing and Customer Engagement - Zhenro Properties has initiated a new marketing strategy aimed at increasing brand awareness and customer engagement through digital platforms[1] - The company plans to enhance its digital marketing efforts, aiming for a 50% increase in online engagement metrics[179] - The company is committed to enhancing customer experience through digital platforms, with a goal to improve customer satisfaction ratings by 15%[186] Financial Health and Debt Management - The net debt-to-total equity ratio as of December 31, 2021, was 85.5%, up from 64.7% at the end of 2020, indicating increased financial leverage[35] - The cash-to-short term debt ratio was approximately 1.1 times as of December 31, 2021, down from 2.2 times at the end of 2020, reflecting tighter liquidity[35] - The Group's total outstanding bank and other borrowings increased to approximately RMB 47,959.5 million as at 31 December 2021, compared to RMB 41,761.3 million as at 31 December 2020[108] - The Group's total borrowings as at 31 December 2021 amounted to approximately RMB 74,138.5 million, an increase from RMB 67,284.4 million as at 31 December 2020[110] - The weighted average financing cost of debt increased to 6.8% for the year ended December 31, 2021, compared to 6.5% in 2020[114] Awards and Recognition - The company received multiple awards, including Best Real Estate Company and Most Influential Real Estate Developer in 2021[16] - The company was recognized as one of the Top 10 Real Estate Developers in Shanghai and Top 30 by Human Capital Value in 2021[16] - The company ranked in the Top 100 Real Estate Companies by Brand Value in China[16] Challenges and Market Conditions - The tightening financing environment led to liquidity challenges, with the Group encountering difficulties in refinancing its indebtedness in the capital markets[35] - The real estate sector is expected to face continued pressure, with the government focusing on stabilizing land prices and property prices[46] - The policy is anticipated to moderately accelerate the development of the long-term rental housing market and facilitate affordable housing construction[47] - The COVID-19 pandemic has posed severe challenges to the global economy since January 2020, but the outbreak has been gradually controlled in China[164] - The Group dynamically adjusted its business and marketing strategies to drive continued recovery in sales amid the pandemic[164] Employee and Corporate Governance - As of December 31, 2021, the Group had a total of 1,467 employees, down from 1,902 employees as of December 31, 2020, indicating a reduction of approximately 23% in workforce[1] - The Group actively recruits skilled personnel through various channels, emphasizing loyalty and corporate culture[1] - The Company has adopted a share option scheme to incentivize employees and promote long-term growth[1] - The Group participates in a pension scheme for all employees in Hong Kong under the Mandatory Provident Fund Schemes Ordinance[1]

各位在线的投资者及媒体朋友大家下午好欢迎大家偷空参加振荣地产2021年全年业绩线上发布会我是本次会议的主持人梅安安今天中午公司已经对外公告2021年全年业绩而由于疫情的情况今年公司继续选择在线上进行业绩发布会接下来 由我为大家介绍在线上参与发布会的四位管理员他们分别是执行董事、董事会主席兼行政总裁黄先知先生执行董事兼董事会副主席刘伟亮先生执行董事兼财务副总裁李扬先生执行董事、副总裁兼财务总监陈伟健先生 接下来我将时间交给黄总为大家介绍业绩以及经营重点的情况有请黄总各位朋友大家好我是振隆的黄建思感谢大家今天抽空参加振隆地产的2021年前年业绩库顾会2021年对振隆来自整个中国房地产行业而言是非常不同的一年 在这期间外部经营环境发生了重大的变化资本市场开天鹅视线频频发生公司面临着前所未有的困难自四季度开始地产公司的销售受到不同程度的影响很多公司包括振隆在内已经无法在公开资本市场上再融资种种压力接踵而至公司管理层面对经济的困难没有退缩 没有逃避而是上下一心维持经营的稳定努力进行自救在此我仅代表公司由衷地感谢各位投资者及振隆团队以共施共度时间也希望借此机会向各位汇报一下公司目前的努力和进展情况 接下来我会向大家介绍振 ...

Financial Performance - Zhenro Properties Group reported a significant increase in revenue, achieving approximately HKD 3.5 billion for the first half of 2021, representing a year-on-year growth of 25%[9]. - The company reported a net profit of approximately HKD 1 billion for the first half of 2021, reflecting a 20% increase compared to the previous year[9]. - The company is committed to enhancing shareholder value through consistent dividend payments, with a proposed interim dividend of HKD 0.10 per share[9]. - Future guidance suggests a projected revenue growth of approximately 15% year-over-year, driven by new property launches and market expansion[65]. - The company reported a significant increase in user data, with 150,252 users for Tianjin Heshan Garden[98]. Market Expansion and Strategy - Zhenro Properties has expanded its land bank, acquiring new sites that will contribute to future projects, with a total land reserve of approximately 10 million square meters[9]. - The company plans to launch several new residential projects in key cities, aiming for a sales target of HKD 10 billion for the second half of 2021[9]. - Zhenro Properties is exploring potential mergers and acquisitions to strengthen its market position and diversify its portfolio[9]. - The company has outlined a strategic goal to increase its market share in tier-one cities, targeting a 15% growth in sales from these regions[9]. - The company is actively pursuing new strategies for market expansion, particularly in emerging urban areas[109]. Awards and Recognition - Zhenro Properties has received multiple awards for its design excellence, enhancing its brand reputation in the real estate market[9]. - Zhenro Properties was recognized as one of the Top 20 Real Estate Developers in China by Comprehensive Strength in 2021[29]. - The company was also ranked among the Top 5 Real Estate Developers in China by Business Performance in 2021[29]. - Zhenro Properties was awarded the Best Real Estate Company by Zhitong Caijing and Tonghuashun Finance[32]. - The company achieved the Best Green Bond (Real Estate) award at the Triple A Sustainable Capital Markets Regional Awards 2020[32]. Land Bank and Development Projects - Total land bank amounts to 10.36 million sq.m., with an attributable land bank of 5.37 million sq.m. and an average land cost of RMB6,526/sq.m. in the Yangtze River Delta region, which represents 35% of the total land bank[51]. - The company has a total land bank of 29.30 million sq.m. in first- and second-tier cities, with 82% of the land in second-tier cities and an average cost of RMB5,401/sq.m.[54]. - The company is actively expanding its land bank with 231 projects under development[53]. - The group has a total of 38 property development projects, with a significant interest attributable to the group in each project, including 100% in several key projects in Shanghai and Nanjing[59]. - The company is focusing on expanding its presence in key urban areas, which is expected to enhance its market share and revenue potential[65]. Construction and Technology Investment - Zhenro Properties is investing in technology to enhance its construction processes, with a focus on sustainable building practices and smart home features[9]. - The company is investing in innovative construction technologies to improve project delivery timelines and reduce costs[65]. - The group is committed to sustainable development practices, as evidenced by the diverse range of residential and commercial projects in its portfolio[59]. Sales Performance - Zhengzhou Chengnan Zhenro Mansion achieved a 97.90% sales rate with 212,099 square meters sold in July 2023[83]. - Wuhan Zhenro Mansion reported a 100.00% sales rate with 48,736 square meters sold in May 2022[83]. - Changsha Zhenro Fortune Center recorded a 100.00% sales rate with 145,220 square meters sold in April 2022[83]. - The company has a total land bank of 1,664,368 sq.m. in the Western China region, with an attributable interest of 1,247,219 sq.m.[70]. - The company is focusing on market expansion and new product development to enhance future performance[139].

[Corporate Information](index=4&type=section&id=Corporate%20Information) [Board of Directors and Committees](index=4&type=section&id=Board%20of%20Directors%20and%20Committees) This section outlines the company's governance structure, detailing the composition of its Board and key committees - The Board of Directors includes Mr Huang Xianzhi (Chairman), Mr Liu Weiliang (Vice Chairman), Mr Li Yang, and Mr Chan Wai Kin (Executive Directors); Mr Ou Guowei (Non-executive Director); and Dr Loke Hoi Lam, Mr Wang Chuanxu, and Mr Lin Hua (Independent Non-executive Directors)[7](index=7&type=chunk) - Dr Loke Hoi Lam chairs the Audit Committee, Mr Huang Xianzhi chairs the Nomination Committee, and Mr Wang Chuanxu chairs the Remuneration Committee[7](index=7&type=chunk)[9](index=9&type=chunk) - The company's auditor is Ernst & Young[9](index=9&type=chunk) [Corporate Contacts and Basic Information](index=6&type=section&id=Corporate%20Contacts%20and%20Basic%20Information) This section provides essential contact and registration details for the company - The company's stock code is 6158[11](index=11&type=chunk) - The company's official website is www.zhenrodc.com[11](index=11&type=chunk) - Principal bankers include Bank of China, BNP Paribas, and China CITIC Bank International Limited[11](index=11&type=chunk) [Biographies of Directors and Senior Management](index=8&type=section&id=Biographies%20of%20Directors%20and%20Senior%20Management) [Biographies of Executive Directors](index=8&type=section&id=Biographies%20of%20Executive%20Directors) This section details the extensive real estate industry experience and leadership of the company's executive directors - **Mr Huang Xianzhi (52)**, Executive Director, Chairman, and CEO, has over 20 years of experience in China's real estate industry and has served as Vice President of the China Real Estate Association since January 2021[16](index=16&type=chunk) - **Mr Liu Weiliang (37)**, Executive Director and Vice Chairman, possesses over 13 years of experience in the real estate industry[21](index=21&type=chunk)[23](index=23&type=chunk) - **Mr Li Yang (36)**, Executive Director and Executive Vice President, is responsible for the group's daily operations and has nearly 10 years of real estate industry experience[27](index=27&type=chunk)[28](index=28&type=chunk) - **Mr Chan Wai Kin (40)**, Executive Director, Vice President, and CFO, has over 15 years of accounting and finance experience and is a member of the Hong Kong Institute of Certified Public Accountants[32](index=32&type=chunk)[34](index=34&type=chunk) [Biography of Non-executive Director](index=13&type=section&id=Biography%20of%20Non-executive%20Director) This section introduces the background of the company's non-executive director - **Mr Ou Guowei (32)**, Non-executive Director, is the son of the controlling shareholder Mr Ou Zongrong and has over 10 years of experience in China's real estate industry[37](index=37&type=chunk) [Biographies of Independent Non-executive Directors](index=14&type=section&id=Biographies%20of%20Independent%20Non-executive%20Directors) This section highlights the extensive professional expertise of the independent non-executive directors - **Dr Loke Hoi Lam (71)**, Independent Non-executive Director and Chairman of the Audit Committee, has over 40 years of experience in accounting, audit, corporate governance, and financial advisory[39](index=39&type=chunk) - **Mr Wang Chuanxu (50)**, Independent Non-executive Director, has over 19 years of experience in China's financial industry and services for listed companies, holding a securities investment consulting qualification[41](index=41&type=chunk) - **Mr Lin Hua (45)**, Independent Non-executive Director, has over 15 years of experience in asset securitization and REITs in China's financial industry and holds multiple industry expert positions[52](index=52&type=chunk)[54](index=54&type=chunk) [Biographies of Senior Management](index=18&type=section&id=Biographies%20of%20Senior%20Management) This section details the professional backgrounds of the company's joint company secretaries - **Mr Chen Jian**, Joint Company Secretary, joined the company in October 2015, has held various financial management positions, and obtained a bachelor's degree in finance in 2003[59](index=59&type=chunk)[61](index=61&type-chunk) - **Ms Kwong Yin Ping Yvonne**, Joint Company Secretary, holds a bachelor's degree in accountancy and is a fellow member of The Hong Kong Chartered Governance Institute and The Chartered Governance Institute, with extensive experience in company secretarial and compliance services[62](index=62&type=chunk) [Performance Summary](index=20&type=section&id=Performance%20Summary) [Contracted Sales Overview](index=20&type=section&id=Contracted%20Sales%20Overview) The company achieved steady growth in contracted sales value and GFA in 2020, with an increased average selling price **2020 Contracted Sales Overview** | Indicator | 2020 (RMB million) | 2019 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Contracted Sales Value | 141,901 | 130,708 | 8.6% | | Contracted GFA (sq.m.) | 8,897,450 | 8,439,482 | 5.4% | | Contracted ASP (RMB/sq.m.) | 15,949 | 15,488 | 3.0% | [Financial Overview](index=20&type=section&id=Financial%20Overview) The company's financial performance improved in 2020, with enhanced financial stability reflected in key balance sheet metrics **2020 Financial Summary (RMB million)** | Indicator | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | Revenue | 36,126 | 32,558 | 11.0% | | Profit before tax | 5,827 | 5,032 | 15.8% | | Profit for the year | 3,559 | 3,094 | 15.0% | | Attributable to owners of the parent | 2,651 | 2,506 | 5.8% | | Non-controlling interests | 908 | 588 | 54.6% | | Core net profit | 3,304 | 2,779 | 18.9% | **2020 Balance Sheet and Liquidity Indicators (RMB million)** | Indicator | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | Total assets | 221,386 | 169,219 | 30.8% | | Total liabilities | 183,783 | 138,159 | 33.0% | | Total equity | 37,603 | 31,060 | 21.1% | | Equity attributable to owners of the Company | 19,576 | 16,397 | 19.4% | | Cash and bank balances | 42,973 | 35,307 | 21.7% | | Total debt | 67,284 | 58,665 | 14.7% | | Current ratio | 1.5 | 1.6 | - | | Net debt to equity ratio | 64.7% | 75.2% | Decreased by 10.5 p.p. | | Cash to short-term debt ratio | 2.2x | 1.8x | Increased by 0.4x | | Short-term debt to total debt ratio | 29.1% | 34.2% | Decreased by 5.1 p.p. | [Awards and Honors](index=22&type=section&id=Awards%20and%20Honors) [Awards for Corporate Strength and Brand Value](index=22&type=section&id=Awards%20for%20Corporate%20Strength%20and%20Brand%20Value) The company received numerous prestigious awards in 2020, affirming its leading position in the real estate industry - Received awards such as "2020 Top 20 of China Real Estate Developers," "2020 Top 10 in Operational Efficiency of China Real Estate Developers," and "2020 Top 20 in Comprehensive Strength of China Listed Real Estate Companies"[68](index=68&type=chunk) - Recognized as "2020 Top 20 in Brand Value of China Real Estate Developers" and "TOP 100 of China Real Estate Human Capital Value"[68](index=68&type=chunk) - Awarded "2020 TOP 10 in Comprehensive Strength of Mainland China Real Estate Companies Listed in Hong Kong" and "2020 TOP 10 in Wealth Creation of Mainland China Real Estate Companies Listed in Hong Kong"[68](index=68&type=chunk) [Awards for Product Competitiveness and Employer Brand](index=22&type=section&id=Awards%20for%20Product%20Competitiveness%20and%20Employer%20Brand) The company gained high recognition for its product design and employer brand building - Honored with "2020 TOP 10 of China Real Estate Enterprises with Excellent Product Competitiveness" and "TOP 20 of China Real Estate Enterprises with Super Product Competitiveness"[68](index=68&type=chunk) - Named "Kincentric Best Employer in China 2020" by Kincentric[70](index=70&type=chunk) - The "Zhenro Top Residence" project was awarded "TOP 10 in Brand Value of China Real Estate Residential Projects"[68](index=68&type=chunk) [Awards for Investor Relations and Sustainable Capital Markets](index=23&type=section&id=Awards%20for%20Investor%20Relations%20and%20Sustainable%20Capital%20Markets) The company demonstrated excellence in investor relations and sustainable capital markets - Received "Best in Information Disclosure Award 2020," "Quamnet Outstanding Investor Relations Awards 2019," and "Most Progress in Investor Relations Award"[70](index=70&type=chunk) - Recognized as "Asia's Best CEO (Investor Relations)" and "Best Investor Relations Company (China)"[70](index=70&type=chunk) - Awarded "The Asset Triple A Sustainable Capital Markets Awards 2020 – Best Green Bond (Real Estate)" and "The Asset Triple A Sustainable Capital Markets Awards 2020 – Best Corporate Issuer"[70](index=70&type=chunk) [Awards for Project Design and Quality](index=24&type=section&id=Awards%20for%20Project%20Design%20and%20Quality) Multiple company projects won professional awards for their outstanding design and quality - Xi'an Zhenro Top Residence won the "CREDAWARD (Shortlisted for China Public Construction Projects)" and "2020 New Architectural Landmark of China's Top 100 Cities"[73](index=73&type=chunk) - Wuhan Zhenro Top Residence and Xiangyang Binjiang Zhenro Residence won the "CREDAWARD (Shortlisted for China Landscape Design)"[74](index=74&type=chunk)[76](index=76&type=chunk) - Hefei Beicheng Zhenro Residence and Fuzhou Zhenro Sanjiang Yunlu won the "CREDAWARD (Shortlisted for China Residential Projects)" and "Meishang Award (Silver Award for Architectural Design)"[78](index=78&type=chunk) - Changsha Meixi Zhenro Top Residence won the "Meishang Award (Most Collectible Value Excellence Award)," and Quanzhou Zhenro Baojia Jiangbin Residence won the "Meishang Award (Excellence Award for Space Design)"[81](index=81&type=chunk)[82](index=82&type=chunk) [Land Bank Schedule](index=30&type=section&id=Land%20Bank%20Schedule) [Land Bank Overview and Regional Distribution](index=30&type=section&id=Land%20Bank%20Overview%20and%20Regional%20Distribution) The company's substantial land bank is strategically concentrated in first- and second-tier cities across key economic regions **2020 Land Bank Overview** | Indicator | Value | | :--- | :--- | | Number of Projects | 216 | | Total Land Bank | 28.45 million sq.m. | | Attributable Land Bank | 15.08 million sq.m. | | Percentage in Tier 1 & 2 Cities | 82% | | Average Land Cost | RMB 4,919/sq.m. | | Equity Ratio | 58% | **2020 Land Bank Regional Distribution** | Region | Total Land Bank (million sq.m.) | Attributable Land Bank (million sq.m.) | Average Land Cost (RMB/sq.m.) | Percentage | | :--- | :--- | :--- | :--- | :--- | | Yangtze River Delta | 10.10 | 5.08 | 6,131 | 36% | | Western Taiwan Straits | 7.89 | 5.39 | 3,634 | 28% | | Central China | 5.07 | 3.33 | 3,463 | 18% | | Bohai Rim | 3.03 | 1.17 | 7,216 | 11% | | Western China | 1.68 | 1.23 | 4,240 | 6% | | Pearl River Delta | 0.69 | 0.31 | 7,886 | 2% | - Land bank status distribution: **77% under construction**, 16% for future development, and 7% completed[110](index=110&type=chunk) [Details of Land Bank for Properties Developed by Subsidiaries](index=32&type=section&id=Details%20of%20Land%20Bank%20for%20Properties%20Developed%20by%20Subsidiaries) This section lists 150 property projects developed by the company's subsidiaries across numerous cities in China - The total GFA of land bank developed by subsidiaries is **18.42 million sq.m.**, with an attributable GFA of **13.54 million sq.m.**[185](index=185&type=chunk)[186](index=186&type=chunk) - Projects are widely distributed across cities including Shanghai, Jiaxing, Nanjing, Suzhou, Hefei, Wuhan, Changsha, Xi'an, Chengdu, Tianjin, Fuzhou, and Nanchang[120](index=120&type=chunk)[132](index=132&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk)[151](index=151&type=chunk)[159](index=159&type=chunk) - The primary planned use is residential (R) and residential/retail (R/RE), with some projects including SOHO and office (S&O) uses[120](index=120&type=chunk)[132](index=132&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk)[151](index=151&type=chunk)[159](index=159&type=chunk) [Details of Land Bank for Properties Developed by Joint Ventures and Associates](index=44&type=section&id=Details%20of%20Land%20Bank%20for%20Properties%20Developed%20by%20Joint%20Ventures%20and%20Associates) This section details 66 property projects developed by the company's joint ventures and associates in various Chinese cities - The total GFA of land bank developed by joint ventures and associates is **10.03 million sq.m.**, with an attributable GFA of **2.98 million sq.m.**[238](index=238&type=chunk)[239](index=239&type=chunk) - Projects are located in cities such as Shanghai, Nanjing, Suzhou, Hefei, Zhengzhou, Wuhan, Chongqing, Tianjin, Jinan, Fuzhou, and Nanchang[196](index=196&type=chunk)[211](index=211&type=chunk)[218](index=218&type=chunk)[220](index=220&type=chunk)[229](index=229&type=chunk)[237](index=237&type=chunk) - The primary planned use is residential (R) and residential/retail (R/RE), with some projects including SOHO and office (S&O) uses[196](index=196&type=chunk)[211](index=211&type=chunk)[218](index=218&type=chunk)[220](index=220&type=chunk)[229](index=229&type=chunk)[237](index=237&type=chunk) [Chairman's Statement](index=50&type=section&id=Chairman's%20Statement) [2020 Performance and Business Review](index=51&type=section&id=2020%20Performance%20and%20Business%20Review) The Chairman reviews the company's solid performance in 2020, highlighting its strategic execution amid market challenges - In 2020, **revenue increased by 11.0%** to RMB 36.13 billion; **profit grew by 15.0%** to RMB 3.56 billion; **core net profit rose by 18.9%** to RMB 3.30 billion; and profit attributable to owners of the parent increased by 5.8% to RMB 2.65 billion[246](index=246&type=chunk)[248](index=248&type=chunk) - The company proactively managed the COVID-19 pandemic, achieving a **100% project resumption rate within 45 days** and realizing **RMB 141.9 billion in contracted sales** through integrated online and offline marketing[252](index=252&type=chunk)[255](index=255&type=chunk) - In land investment, the company added 46 new land parcels with an estimated total GFA of approximately 7.14 million sq.m., with **77% located in first- and second-tier cities** and an attributable equity ratio of about 70% for new acquisitions[257](index=257&type=chunk)[260](index=260&type=chunk) - Financial structure was continuously optimized, with the **net debt to equity ratio at 64.7%** and the **cash to short-term debt ratio at approximately 2.2 times** as of year-end 2020, while the weighted average financing cost decreased to 6.5%[267](index=267&type=chunk) - The company deepened its product strategy by releasing white papers for its Top and Yue series and launching the "Zhenro Oasis Community Plan," winning over forty industry awards[270](index=270&type=chunk)[271](index=271&type=chunk) - Management systems were optimized to enhance project development efficiency, shortening the average cycle from land acquisition to product positioning to less than one month and achieving an **average initial launch sell-through rate of over 70%**[275](index=275&type=chunk) [Corporate Governance and ESG Management](index=57&type=section&id=Corporate%20Governance%20and%20ESG%20Management) The company emphasizes strong corporate governance and ESG management, achieving notable progress and recognition - The company engaged in over 150 meetings and communicated with more than 2,000 investors in 2020, pioneering online reverse roadshows[277](index=277&type=chunk)[279](index=279&type=chunk) - It received multiple investor relations awards, including "Best in Information Disclosure Award 2020" and "Asia's Best CEO (Investor Relations)"[282](index=282&type=chunk)[284](index=284&type=chunk) - The company actively fulfilled its corporate social responsibilities, leading to an **upgrade of its MSCI ESG rating to BB** in December 2020[285](index=285&type=chunk) - In green development, seven projects received two- or three-star China Green Building certifications, and the company issued two tranches of green senior notes[286](index=286&type=chunk) - It upgraded its "Happy Strivers, Great Career" employer brand value, earning accolades like "Kincentric Best Employer in China" and establishing a **RMB 12 million fund for COVID-19 prevention and control**[289](index=289&type=chunk)[290](index=290&type=chunk) [2021 Outlook and Acknowledgements](index=60&type=section&id=2021%20Outlook%20and%20Acknowledgements) The company sets a sales target of RMB 150 billion for 2021, focusing on core cities and efficiency to conclude its "New Three-Year Strategy" - In 2021, the company will continue to focus on first- and second-tier cities and their metropolitan areas, exploring investment opportunities through diversified channels[292](index=292&type=chunk)[294](index=294&type=chunk) - A **contracted sales target of RMB 150 billion** has been set for 2021, supported by high-quality and sufficient saleable resources[293](index=293&type=chunk)[295](index=295&type=chunk) - The company will continue to strengthen its management structure, talent development, and incentive mechanisms, guided by "cash flow and profit" management to improve credit ratings and reduce costs[293](index=293&type=chunk)[295](index=295&type=chunk) [Management Discussion and Analysis](index=62&type=section&id=Management%20Discussion%20and%20Analysis) [Real Estate Development Business](index=63&type=section&id=Real%20Estate%20Development%20Business) The company's real estate development business demonstrated strong performance in 2020 with growth in sales and revenue - **Contracted sales amounted to RMB 141,901.4 million** in 2020, an increase of 8.6% year-on-year, driven by increased saleable GFA in first- and second-tier cities[302](index=302&type=chunk)[303](index=303&type=chunk) - Contracted GFA was approximately 8.9 million sq.m., a 5.4% increase, while the contracted average selling price rose by 3.0% to approximately RMB 15,949/sq.m[304](index=304&type=chunk) **2020 Contracted Sales by Region** | Region | Percentage of Contracted Sales | | :--- | :--- | | Yangtze River Delta Region | 38.6% | | Western Taiwan Straits Region | 33.2% | | Bohai Rim Region | 10.4% | | Central China Region | 9.5% | | Western China Region | 6.5% | | Pearl River Delta Region | 1.8% | - Recognized revenue from property sales was **RMB 35,601.4 million** in 2020, a 10.6% increase, accounting for 98.6% of total revenue[309](index=309&type=chunk)[310](index=310&type=chunk) - The recognized average selling price decreased by 18.2% to approximately RMB 12,295/sq.m., due to a larger proportion of delivered GFA from projects with lower average selling prices[309](index=309&type=chunk)[310](index=310&type=chunk) - As of December 31, 2020, completed properties held for sale were RMB 7,870.9 million, a 3.2% increase, while properties under development were **RMB 117,686.7 million**, a 36.2% increase[317](index=317&type=chunk)[319](index=319&type=chunk)[324](index=324&type=chunk) [Property Investment and Land Bank](index=66&type=section&id=Property%20Investment%20and%20Land%20Bank) The company maintained a significant investment property portfolio and continued to strategically expand its land bank in 2020 - Rental income in 2020 was approximately **RMB 118.9 million**, a decrease of 11.5% mainly due to the impact of the COVID-19 pandemic[320](index=320&type=chunk)[325](index=325&type=chunk) - As of December 31, 2020, the company held 14 investment properties with a total GFA of approximately 826,228 sq.m., of which seven had commenced leasing[321](index=321&type=chunk)[326](index=326&type=chunk) - In 2020, the company acquired **46 new land parcels** with a total site area of approximately 2.5 million sq.m. and an estimated total GFA of approximately 7.1 million sq.m[322](index=322&type=chunk)[327](index=327&type=chunk) - The total contracted land price for new acquisitions was approximately RMB 47,220.9 million, with an average cost of approximately **RMB 6,616/sq.m**[327](index=327&type=chunk) [Financial Review](index=72&type=section&id=Financial%20Review) The company's total revenue grew by 11.0% in 2020, driven by property sales, though gross profit margin slightly declined **2020 Revenue Composition (RMB thousand)** | Revenue Source | 2020 Revenue | % of Total | 2019 Revenue | % of Total | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Sales of properties | 35,601,372 | 98.6% | 32,184,576 | 98.9% | 10.6% | | Rental income | 118,916 | 0.3% | 134,298 | 0.4% | (11.5%) | | Management services income | 239,980 | 0.7% | 153,294 | 0.5% | 56.5% | | Property management income | 88,118 | 0.2% | 85,492 | 0.3% | 3.1% | | Sales of materials income | 77,703 | 0.2% | — | — | — | | **Total** | **36,126,089** | **100.0%** | **32,557,660** | **100.0%** | **11.0%** | - Cost of sales increased by 12.1% to RMB 29,222.2 million in 2020, mainly due to an increase in the number of completed and delivered properties[349](index=349&type=chunk)[352](index=352&type=chunk) - Gross profit increased by 6.2% to RMB 6,903.9 million, while the **gross profit margin decreased from 20.0% to 19.1%**, primarily due to an increased proportion of properties with lower average selling prices[350](index=350&type=chunk)[353](index=353&type=chunk) - Other income and gains increased by 106.3% to RMB 971.8 million, mainly due to higher interest income from bank deposits[355](index=355&type=chunk) - Administrative expenses decreased by 6.3% to RMB 1,138.3 million, mainly due to cost control measures and reduced travel expenses during the pandemic[357](index=357&type=chunk) - Finance costs increased by 4.3% to RMB 504.8 million, primarily due to an increase in interest-bearing liabilities[357](index=357&type=chunk) - Share of profits of joint ventures decreased to RMB 33.9 million, while share of profits of associates increased to RMB 545.3 million, reflecting changes in project delivery schedules[359](index=359&type=chunk)[362](index=362&type=chunk)[363](index=363&type=chunk) - **Profit for the year increased by 15.0%** to RMB 3,558.9 million in 2020[361](index=361&type=chunk)[366](index=366&type=chunk) [Liquidity, Financial, and Capital Resources](index=77&type=section&id=Liquidity%2C%20Financial%2C%20and%20Capital%20Resources) The company maintained a healthy cash position and improved its financial stability in 2020 - As of December 31, 2020, cash and cash equivalents were approximately **RMB 35,477.9 million**, a year-on-year increase of 25.0%[370](index=370&type=chunk)[372](index=372&type=chunk) - As of December 31, 2020, total borrowings were **RMB 67,284.4 million**, a year-on-year increase of 14.7%[375](index=375&type=chunk)[376](index=376&type=chunk) **Maturity Profile of Total Borrowings (RMB thousand)** | Maturity | 2020 | 2019 | | :--- | :--- | :--- | | Within one year | 19,548,555 | 20,040,443 | | In the second year | 22,230,132 | 19,554,347 | | In the third to fifth years | 24,453,188 | 18,207,193 | | Over five years | 1,052,494 | 863,486 | | **Total** | **67,284,369** | **58,665,469** | - The **weighted average cost of debt financing was 6.5%** in 2020, a decrease of 1.0 percentage point from 7.5% in 2019, due to debt structure optimization and enhanced bargaining power[379](index=379&type=chunk)[380](index=380&type=chunk) - As of December 31, 2020, assets totaling RMB 73,920.5 million, including investment properties and properties under development, were pledged as collateral for secured borrowings[383](index=383&type=chunk) - As of December 31, 2020, the attributable cash balance of joint ventures and associates was approximately RMB 2.74 billion[383](index=383&type=chunk) [Key Financial Ratios and Contingent Liabilities](index=81&type=section&id=Key%20Financial%20Ratios%20and%20Contingent%20Liabilities) The company's key financial ratios improved in 2020, and contingent liabilities decreased, indicating enhanced risk control - As of December 31, 2020, the **current ratio was 1.5** (2019: 1.6)[385](index=385&type=chunk) - As of December 31, 2020, the **net debt to equity ratio was 64.7%** (2019: 75.2%), remaining at an industry-average level[385](index=385&type=chunk)[387](index=387&type=chunk) - As of December 31, 2020, guarantees provided for customer mortgage loans amounted to approximately **RMB 32,161.3 million**, a decrease of 11.9%[389](index=389&type=chunk) - As of December 31, 2020, guarantees provided for borrowings of joint ventures and associates amounted to approximately **RMB 2,604.5 million**, a decrease of 45.4%[393](index=393&type=chunk) [Bonds, Senior Notes Offerings, and Subsequent Events](index=83&type=section&id=Bonds%2C%20Senior%20Notes%20Offerings%2C%20and%20Subsequent%20Events) The company actively managed its capital structure through various debt offerings and redemptions in 2020 and early 2021 - From January to November 2020, the company issued multiple tranches of USD and RMB senior notes with interest rates ranging from 5.60% to 8.35%, including two green senior notes[395](index=395&type=chunk)[397](index=397&type=chunk) - In May 2020, the company conducted a tender offer and redeemed its 2020 Notes with an aggregate principal amount of US$400 million[395](index=395&type=chunk) - In June and September 2020, the company completed the put option for its domestic corporate bonds and redeemed certain senior notes in September and December[395](index=395&type=chunk)[397](index=397&type=chunk) - In January and February 2021, the company continued to issue green senior notes with principal amounts of **US$400 million and US$300 million**, and interest rates of 6.63% and 6.70%, respectively[401](index=401&type=chunk) - In March 2021, the company redeemed senior notes with a principal amount of US$310 million and an interest rate of 9.15%[401](index=401&type=chunk) [Use of Proceeds from Initial Public Offering](index=89&type=section&id=Use%20of%20Proceeds%20from%20Initial%20Public%20Offering) The company has fully utilized the net proceeds from its initial public offering as of December 31, 2020 - The net proceeds of approximately **HK$4,392.3 million** from the initial public offering have been fully utilized[418](index=418&type=chunk)[419](index=419&type=chunk) - Approximately RMB 902.1 million was used to repay maturing borrowings, RMB 377.5 million for general working capital, and RMB 3,112.7 million for property project construction and development[419](index=419&type=chunk) [Report of the Directors](index=90&type=section&id=Report%20of%20the%20Directors) [Principal Business and Risks](index=90&type=section&id=Principal%20Business%20and%20Risks) The company's principal activities are real estate development, property leasing, and commercial property management - The company's principal businesses are real estate development, property leasing, and commercial property management[421](index=421&type=chunk) - The company is primarily exposed to foreign exchange rate risk but faces no significant credit or liquidity risks[427](index=427&type=chunk) [Environmental Policy and Social Responsibility](index=91&type=section&id=Environmental%20Policy%20and%20Social%20Responsibility) The company is committed to sustainable development and environmental protection while fostering strong stakeholder relationships - The company is dedicated to promoting sustainable development and environmental protection, complying with applicable environmental laws and prioritizing energy conservation in project design[431](index=431&type=chunk) - In 2020, the company received no material fines or penalties related to violations of environmental laws or regulations[431](index=431&type=chunk) - The company values its relationships with employees, suppliers, and customers, using incentives to attract talent, building long-term partnerships, and focusing on customer satisfaction[434](index=434&type=chunk)[437](index=437&type=chunk)[440](index=440&type=chunk)[441](index=441&type=chunk) [Financial and Dividend Policy](index=93&type=section&id=Financial%20and%20Dividend%20Policy) The Board has proposed a final dividend of HK$0.15 per share for 2020 - The Board recommended a final dividend of **HK$0.15 per share** (approximately RMB 0.13), totaling approximately HK$655.2 million (approximately RMB 551.3 million), representing about 15.5% of the 2020 net profit[448](index=448&type=chunk)[450](index=450&type=chunk) - As of December 31, 2020, the company's reserves available for distribution to shareholders amounted to approximately RMB 8,402.6 million[549](index=549&type=chunk) - As of December 31, 2020, the company had outstanding bank and other borrowings of RMB 41,761.3 million and a carrying amount of domestic corporate bonds and senior notes of approximately RMB 25,523.1 million[550](index=550&type=chunk)[554](index=554&type=chunk) - The company has fully utilized the net proceeds of approximately HK$4,392.3 million from its initial public offering for debt repayment, working capital, and project development[418](index=418&type=chunk)[419](index=419&type=chunk) [Directors' and Shareholders' Interests](index=95&type=section&id=Directors'%20and%20Shareholders'%20Interests) This section discloses the interests of directors and substantial shareholders in the company's shares - As of December 31, 2020, Mr Huang Xianzhi held 4,569,000 shares (0.11%), and Mr Ou Guowei held 217,140,000 shares (4.97%) through a controlled corporation[501](index=501&type=chunk) - The substantial shareholder, Mr Ou Zongrong, held **2,384,957,000 shares (54.60%)** through controlled corporations, with his spouse, Ms Lin Shuying, deemed to have the same interest[508](index=508&type=chunk)[511](index=511&type=chunk)[514](index=514&type=chunk) - The controlling shareholders have confirmed their compliance with the non-competition undertaking to the Board[558](index=558&type=chunk)[563](index=563&type=chunk) [Continuing Connected Transactions](index=109&type=section&id=Continuing%20Connected%20Transactions) The company engaged in continuing connected transactions with an associate of the controlling shareholder on normal commercial terms - The company entered into pre-delivery property management and management services agreements with Zhenro Services Group, an associate of the controlling shareholder[569](index=569&type=chunk)[573](index=573&type=chunk) - In 2020, the company paid **RMB 16.1 million** for pre-delivery property management services and **RMB 232.1 million** for management services, both within the annual caps[569](index=569&type=chunk)[573](index=573&type=chunk) - The independent non-executive directors confirmed that these transactions were conducted in the ordinary course of business, on normal commercial terms, and were in the best interests of shareholders[576](index=576&type=chunk) - The external auditor confirmed that the continuing connected transactions were approved by the Board, followed the agreement terms, and did not exceed the annual caps[577](index=577&type=chunk)[581](index=581&type=chunk) [Corporate Governance Report](index=113&type=section&id=Corporate%20Governance%20Report) [Corporate Governance Framework and the Board of Directors](index=113&type=section&id=Corporate%20Governance%20Framework%20and%20the%20Board%20of%20Directors) The company is committed to high standards of corporate governance, with a diverse and experienced Board overseeing its affairs - The company adheres to the Corporate Governance Code, with the exception of code provision A.2.1, as the roles of Chairman and CEO are both held by Mr Huang Xianzhi[585](index=585&type=chunk)[592](index=592&type=chunk) - The Board possesses a balanced mix of skills and experience and has adopted a board diversity policy considering factors such as gender, age, culture, and educational background[585](index=585&type=chunk) - In 2020, the company held **4 Board meetings** and 1 annual general meeting, considering 23 proposals[610](index=610&type=chunk)[611](index=611&type=chunk) - Total remuneration paid to directors in 2020 was approximately **RMB 25.67 million**[595](index=595&type=chunk) - The company has three independent non-executive directors, meeting Listing Rules requirements, and has received their independence confirmations[597](index=597&type=chunk)[599](index=599&type=chunk) - Company Secretaries Mr Chen Jian and Ms Kwong Yin Ping Yvonne each completed no less than 15 hours of professional training[600](index=600&type=chunk)[605](index=605&type=chunk) [Operation of Board Committees](index=118&type=section&id=Operation%20of%20Board%20Committees) The company's Audit, Nomination, and Remuneration committees operate effectively in accordance with their terms of reference - The Audit Committee, chaired by Dr Loke Hoi Lam, held 2 meetings in 2020 to review the financial reporting system, internal controls, and risk management[617](index=617&type=chunk)[622](index=622&type=chunk) - The Nomination Committee, chaired by Mr Huang Xianzhi, held 2 meetings in 2020 to review nomination and board diversity policies and assess the independence of INEDs[627](index=627&type=chunk)[630](index=630&type=chunk) - The Remuneration Committee, chaired by Mr Wang Chuanxu, held 2 meetings in 2020 to discuss and review the remuneration policies for directors and senior management[630](index=630&type=chunk)[632](index=632&type=chunk) - All directors confirmed their compliance with the Model Code for Securities Transactions by Directors in 2020[633](index=633&type=chunk) [Accountability, Audit, and Shareholders' Rights](index=123&type=section&id=Accountability%2C%20Audit%2C%20and%20Shareholders'%20Rights) The company ensures financial statement integrity and protects shareholder rights through robust accountability and audit processes - The directors are responsible for overseeing the preparation of financial statements to ensure they give a true and fair view, applying appropriate accounting policies and making reasonable estimates[641](index=641&type=chunk) - The Board has reviewed the effectiveness of the internal control and risk management systems and considers them adequate and effective, particularly in financial reporting and compliance[645](index=645&type=chunk) - The company has adopted a continuous disclosure compliance policy to ensure fair and timely public disclosure of inside information[647](index=647&type=chunk)[649](index=649&type=chunk) - Shareholders have the right to convene general meetings and nominate persons for election as directors in accordance with the Articles of Association[648](index=648&type=chunk)[650](index=650&type=chunk)[653](index=653&type=chunk) [Independent Auditor's Report](index=127&type=section&id=Independent%20Auditor's%20Report) [Audit Opinion and Basis](index=127&type=section&id=Audit%20Opinion%20and%20Basis) The independent auditor issued an unqualified opinion on the company's 2020 consolidated financial statements - The auditor expressed an **unqualified opinion**, stating that the consolidated financial statements give a true and fair view of the company's financial position as of December 31, 2020, and of its financial performance and cash flows for the year, in accordance with IFRSs[656](index=656&type=chunk) - The audit was conducted in accordance with Hong Kong Standards on Auditing, and the auditor remained independent of the Group and fulfilled professional ethics responsibilities[658](index=658&type=chunk)[660](index=660&type=chunk) [Key Audit Matters](index=128&type=section&id=Key%20Audit%20Matters) The audit focused on the valuation of investment properties and the provision for land appreciation tax as key audit matters - The **valuation of investment properties** was identified as a key audit matter due to the significant judgment required in fair value measurement and the potential for material differences from different valuation techniques and assumptions[665](index=665&type=chunk)[668](index=668&type=chunk) - The auditor assessed the competence and independence of the external valuer and engaged internal valuation specialists to assist in evaluating the valuation methodologies and assumptions[667](index=667&type=chunk)[669](index=669&type=chunk) - The **provision for Land Appreciation Tax (LAT)** was identified as a key audit matter because it is material to the financial statements and involves significant management judgment and interpretation of tax laws[673](index=673&type=chunk)[674](index=674&type=chunk) - The auditor engaged internal tax specialists to assist in reviewing the LAT status and re-calculating the tax outcomes[675](index=675&type=chunk)[676](index=676&type=chunk)[678](index=678&type=chunk) [Directors' and Auditor's Responsibilities](index=132&type=section&id=Directors'%20and%20Auditor's%20Responsibilities) This section outlines the respective responsibilities of the directors and the auditor in the financial reporting process - The directors are responsible for preparing consolidated financial statements that give a true and fair view in accordance with IFRSs and for implementing necessary internal controls to prevent material misstatement[681](index=681&type=chunk)[684](index=684&type=chunk) - The auditor's objective is to obtain reasonable assurance that the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes their opinion[688](index=688&type=chunk)[689](index=689&type=chunk) - The auditor exercises professional judgment, maintains professional skepticism, identifies and assesses risks of material misstatement, and obtains sufficient appropriate audit evidence[689](index=689&type=chunk) [Consolidated Statement of Profit or Loss](index=136&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) [2020 Consolidated Profit or Loss Performance](index=136&type=section&id=2020%20Consolidated%20Profit%20or%20Loss%20Performance) The company achieved growth in revenue, gross profit, and profit for the year in 2020 **2020 Consolidated Statement of Profit or Loss Highlights (RMB thousand)** | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | Revenue | 36,126,089 | 32,557,660 | | Cost of sales | (29,222,208) | (26,059,803) | | Gross profit | 6,903,881 | 6,497,857 | | Other income and gains | 971,825 | 471,131 | | Selling and distribution expenses | (1,159,713) | (972,294) | | Administrative expenses | (1,138,328) | (1,214,481) | | Fair value gains on investment properties | 323,960 | 326,507 | | Finance costs | (504,796) | (484,091) | | Share of profits of joint ventures | 33,887 | 357,503 | | Share of profits of associates | 545,272 | 163,429 | | Profit before tax | 5,826,905 | 5,031,631 | | Income tax expense | (2,267,971) | (1,937,647) | | Profit for the year | 3,558,934 | 3,093,984 | | Attributable to owners of the parent | 2,650,744 | 2,506,405 | | Non-controlling interests | 908,190 | 587,579 | | Basic and diluted earnings per share | RMB 0.61 | RMB 0.59 | [Consolidated Statement of Comprehensive Income](index=137&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) [2020 Consolidated Comprehensive Income Performance](index=137&type=section&id=2020%20Consolidated%20Comprehensive%20Income%20Performance) The company's total comprehensive income grew by 37.0% in 2020, reaching RMB 4.11 billion **2020 Consolidated Statement of Comprehensive Income Highlights (RMB thousand)** | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | Profit for the year | 3,558,934 | 3,093,984 | | Exchange differences on translation of foreign operations | 549,623 | (94,964) | | Total comprehensive income for the year, net of tax | 4,108,557 | 2,999,020 | | Attributable to owners of the parent | 3,200,367 | 2,411,441 | | Non-controlling interests | 908,190 | 587,579 | - A positive exchange difference on the translation of foreign operations in 2020 significantly contributed to the growth in total comprehensive income[701](index=701&type=chunk) [Consolidated Statement of Financial Position](index=138&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) [2020 Consolidated Financial Position Overview](index=138&type=section&id=2020%20Consolidated%20Financial%20Position%20Overview) The company's total assets grew by 30.8% to RMB 221.39 billion by the end of 2020, maintaining a solid financial structure **2020 Consolidated Statement of Financial Position Highlights (RMB thousand)** | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | Total non-current assets | 22,145,787 | 17,701,352 | | Total current assets | 199,239,714 | 151,517,858 | | Total current liabilities | 132,258,549 | 96,445,950 | | Total non-current liabilities | 51,523,998 | 41,713,271 | | Net assets | 37,602,954 | 31,059,989 | | Equity attributable to owners of the parent | 19,576,267 | 16,396,527 | | Non-controlling interests | 16,607,980 | 13,223,952 | - As of December 31, 2020, **total assets were RMB 221,386 million**, a year-on-year increase of 30.8%[64](index=64&type=chunk) - As of December 31, 2020, **total liabilities were RMB 183,783 million**, a year-on-year increase of 33.0%[64](index=64&type=chunk) - Properties under development constituted the largest component of current assets, amounting to RMB 117,686,697 thousand[703](index=703&type=chunk) - Contract liabilities were the largest component of current liabilities, amounting to RMB 60,866,676 thousand[705](index=705&type=chunk) [Consolidated Statement of Changes in Equity](index=141&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) [2020 Consolidated Changes in Equity](index=141&type=section&id=2020%20Consolidated%20Changes%20in%20Equity) The company's total equity increased by 21.1% to RMB 37.60 billion in 2020, driven by profits and capital contributions **2020 Consolidated Changes in Equity Highlights (RMB thousand)** | Item | 2020 Change | | :--- | :--- | | Profit for the year (attributable to owners of the parent) | 2,650,744 | | Exchange differences on translation of foreign operations | 549,623 | | Capital contribution from non-controlling shareholders of subsidiaries | 8,164,100 | | Acquisition of non-controlling interests | (4,717,957) | | Dividends paid to owners of the parent | (396,763) | | Dividends paid to holders of perpetual capital securities | (155,846) | | Dividends paid to non-controlling shareholders of subsidiaries | (426,720) | | Total equity as at 31 December 2020 | 37,602,954 | - As of December 31, 2020, reserves attributable to the owners of the parent amounted to RMB 19,575,985 thousand[709](index=709&type=chunk)[715](index=715&type=chunk) [Consolidated Statement of Cash Flows](index=143&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) [2020 Consolidated Cash Flow Overview](index=143&type=section&id=2020%20Consolidated%20Cash%20Flow%20Overview) The company generated strong cash inflow from financing activities, resulting in a net increase in cash of RMB 7.57 billion **2020 Consolidated Statement of Cash Flows Highlights (RMB thousand)** | Item | 2020 | 2019 | | :--- | :--- | :--- | | Net cash used in operating activities | (3,017,541) | (14,063,640) | | Net cash used in investing activities | (1,838,876) | (2,210,817) | | Net cash from financing activities | 12,430,342 | 21,973,130 | | Net increase in cash and cash equivalents | 7,573,925 | 5,698,673 | | Cash and cash equivalents at end of year | 35,477,942 | 28,368,571 | - The net cash outflow from operating activities narrowed significantly, mainly due to an increase in contract liabilities and a decrease in interest paid[722](index=722&type=chunk) - Cash inflow from financing activities was primarily driven by capital contributions from non-controlling shareholders, proceeds from borrowings, and issuance of senior notes[726](index=726&type=chunk) - Cash and bank balances at year-end totaled **RMB 42,972,503 thousand**, including restricted cash of RMB 6,884,988 thousand and pledged deposits of RMB 609,573 thousand[728](index=728&type=chunk) [Notes to the Financial Statements](index=148&type=section&id=Notes%20to%20the%20Financial%20Statements) [Corporate and Group Information](index=148&type=section&id=Corporate%20and%20Group%20Information) This section provides fundamental information about the company's registration, business activities, and group structure - The company was incorporated in the Cayman Islands, with its principal businesses being property development, property leasing, and commercial property management; its holding company is RoYue Limited[730](index=730&type=chunk)[732](index=732&type=chunk) - A comprehensive list of major directly and indirectly held subsidiaries is provided, with attributable equity interests ranging from 17.34% to 100%, primarily engaged in property development and investment holding[734](index=734&type=chunk)[831](index=831&type=chunk) - As of December 31, 2020, the Group had pledged the equity interests of certain subsidiaries to trust financing companies as collateral, while retaining control over these entities[836](index=836&type=chunk)[841](index=841&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=176&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) This section outlines the basis for financial statement preparation and details the adoption of new accounting policies in 2020 - The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) issued by the IASB, under the historical cost convention, with certain assets measured at fair value[846](index=846&type=chunk)[848](index=848&type=chunk) - The consolidated financial statements include the company and its subsidiaries, with control determined by exposure to variable returns and the ability to affect those returns[847](index=847&type=chunk)[849](index=849&type=chunk) - In 2020, the company adopted the 2018 Conceptual Framework and amendments to IFRSs, including IFRS 3, IFRS 9, IAS 39, IFRS 7, IFRS 16, IAS 1, and IAS 8[859](index=859&type=chunk) - The COVID-19-Related Rent Concessions amendment to IFRS 16 was early adopted, with the company electing not to apply lease modification accounting, resulting in a negligible impact[867](index=867&type=chunk)[870](index=870&type=chunk) [Issued but not yet Effective International Financial Reporting Standards](index=182&type=section&id=Issued%20but%20not%20yet%20Effective%20International%20Financial%20Reporting%20Standards) This section lists new and amended IFRSs that have been issued but are not yet effective - Several amendments to IFRSs have been issued but are not yet effective, covering areas such as the definition of a business, interest rate benchmark reform, classification of liabilities, and property, plant and equipment[873](index=873&type=chunk) - Most amendments will become effective for annual periods beginning on or after January 1, 2021, 2022, or 2023, with early application permitted for some[875](index=875&type=chunk) - Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4, and IFRS 16 address financial reporting issues arising from interest rate benchmark reform, providing practical expedients for hedge accounting[882](index=882&type=chunk)[883](index=883&type=chunk) - The amendment to IAS 16 prohibits deducting proceeds from selling items produced from the cost of property, plant and equipment, which is not expected to have a material impact on the Group's financial statements[891](index=891&type=chunk)[893](index=893&type=chunk) [Summary of Significant Accounting Policies](index=190&type=section&id=Summary%20of%20Significant%20Accounting%20Policies) This section details the specific accounting treatments applied by the company across various financial reporting areas - Investments in associates and joint ventures are accounted for using the equity method and are remeasured at fair value upon loss of significant influence or joint control[907](index=907&type=chunk)[909](index=909&type=chunk) - Business combinations are accounted for using the acquisition method, with goodwill measured at cost less accumulated impairment losses and tested for impairment annually[910](index=910&type=chunk)[914](index=914&type=chunk) - Investment properties are measured at fair value with changes recognized in profit or loss; properties under development and completed properties held for sale are stated at the lower of cost and net realizable value[945](index=945&type=chunk)[947](index=947&type=chunk) - Leases are recognized as a right-of-use asset and a lease liability for lessees, while lessors classify leases as either operating or finance leases[950](index=950&type=chunk)[951](index=951&type=chunk)[960](index=960&type=chunk) - Financial assets are classified as measured at amortized cost, fair value through other comprehensive income, or fair value through profit or loss, with expected credit loss provisions recognized for all debt instruments[964](index=964&type=chunk)[965](index=965&type=chunk)[970](index=970&type=chunk) - Revenue is recognized when control of an asset is transferred to the customer; revenue from property management and management consulting services is recognized on a monthly basis[989](index=989&type=chunk)[990](index=990&type=chunk)[1038](index=1038&type=chunk)[1039](index=1039&type=chunk) - Perpetual capital securities are classified as part of equity if there is no contractual obligation to repay the principal or pay distributions[1001](index=1001&type=chunk) [Significant Accounting Judgements and Estimates](index=225&type=section&id=Significant%20Accounting%20Judgements%20and%20Estimates) This section outlines the key judgments and estimates made in preparing the financial statements - In classifying property leases, the company judges that it retains substantially all risks and rewards of ownership, accounting for them as operating leases[1003](index=1003&type=chunk) - Determining the lease term for contracts with renewal options requires judgment, considering all relevant economic incentives[1003](index=1003&type=chunk) - The classification between investment properties and owner-occupied properties involves judging whether a property generates cash flows largely independently of other assets[1006](index=1006&type=chunk) - Provisions for properties under development and completed properties held for sale are based on estimates of selling prices, completion costs, and selling expenses, which significantly impact net realizable value[1015](index=1015&type=chunk) - Estimating the incremental borrowing rate involves using observable inputs and making entity-specific estimates, which is a significant judgment[1015](index=1015&type=chunk) - Provisions for PRC corporate income tax and land appreciation tax involve management's interpretation of tax regulations, and final tax outcomes may differ from estimates[1017](index=1017&type=chunk)[1018](index=1018&type=chunk) - The fair value estimation of investment properties is based on various data sources, including market prices and discounted cash flow projections, using discount rates that reflect market uncertainty[1019](index=1019&type=chunk)[1020](index=1020&type=chunk) [Operating Segment Information](index=232&type=section&id=Operating%20Segment%20Information) The company's operations are aggregated into a single reportable operating segment due to similar economic characteristics - Management monitors business performance by project location, but all locations are aggregated into one reportable segment due to similar economic characteristics, business nature, processes, and customer types[1023](index=1023&type=chunk)[1026](index=1026&type=chunk) - All revenue from external customers is derived from Mainland China, and no non-current assets are located outside Mainland China[1024](index=1024&type=chunk)[1027](index=1027&type=chunk) [Revenue, Other Income and Gains](index=233&type=section&id=Revenue%2C%20Other%20Income%20and%20Gains) The company's total revenue in 2020 was RMB 36.13 billion, predominantly from property sales **2020 Revenue Composition (RMB thousand)** | Revenue Source | 2020 Revenue | 2019 Revenue | | :--- | :--- | :--- | | Revenue from contracts with customers | 36,007,173 | 32,423,362 | | Gross rental income from operating leases of investment properties | 118,916 | 134,298 | | **Total** | **36,126,089** | **32,557,660** | **2020 Disaggregated Revenue Information (RMB thousand)** | Type of goods or services | 2020 | 2019 | | :--- | :--- | :--- | | Sales of properties | 35,601,372 | 32,184,576 | | Sales of goods | 77,703 | — | | Property management services | 88,118 | 85,492 | | Management consulting services | 239,980 | 153,294 | | **Total revenue from contracts with customers** | **36,007,173** | **32,423,362** | | Property or goods transferred at a point in time | 35,679,075 | 32,184,576 | | Services transferred over time | 328,098 | 238,786 | **2020 Other Income and Gains (RMB thousand)** | Item | 2020 | 2019 | | :--- | :--- | :--- | | Interest income | 578,680 | 373,261 | | Foreign exchange gains | 64,351 | 4,866 | | Government grants | 14,986 | 14,891 | | Gain on disposal of subsidiaries | 100,077 | 54,961 | | Gain on bargain purchase | 21,751 | — | | Gain on remeasurement of previously held interests in joint ventures and associates upon business combination | 166,329 | — | | **Total** | **971,825** | **471,131** | [Profit Before Tax and Finance Costs](index=237&type=section&id=Profit%20Before%20Tax%20and%20Finance%20Costs) The company's profit before tax reached RMB 5.83 billion in 2020 **2020 Profit Before Tax Composition (RMB thousand)** | Item | 2020 | 2019 | | :--- | :--- | :--- | | Cost of inventories sold | 29,015,470 | 26,140,970 | | Impairment losses recognised on properties under development | 118,646 | 66,456 | | Depreciation of items of property, plant and equipment | 57,309 | 57,679 | | Depreciation of right-of-use assets | 47,865 | 44,224 | | Amortisation of other intangible assets | 3,023 | 4,906 | | Auditor's remuneration | 11,238 | 10,717 | | Net impairment losses on financial assets | 5,087 | 482 | | Employee benefit expense | 676,978 | 660,486 | | **Profit before tax** | **5,826,905** | **5,031,631** | **2020 Finance Costs Analysis (RMB thousand)** | Item | 2020 | 2019 | | :--- | :--- | :--- | | Interest on interest-bearing bank and other borrowings, corporate bonds, senior notes and asset-backed securities | 4,996,793 | 4,500,931 | | Interest expense arising from revenue contracts | 598,976 | 558,799 | | Interest on lease liabilities | 6,619 | 6,591 | | Less: Interest capitalised | (5,097,592) | (4,582,230) | | **Total** | **504,796** | **484,091** | [Directors' and Highest Paid Employees' Remuneration](index=239&type=section&id=Directors'%20and%20Highest%20Paid%20Employees'%20Remuneration) The total remuneration for directors and the highest-paid employees in 2020 was RMB 25.67 million **2020 Total Directors' Remuneration (RMB thousand)** | Item | 2020 | 2019 | | :--- | :--- | :--- | | Fees | 900 | 900 | | Salaries, allowances and benefits in kind | 16,407 | 20,438 | | Performance-related bonuses | 8,143 | 6,698 | | Pension scheme contributions and social welfare | 220 | 474 | | **Total** | **25,670** | **28,510** | **2020 Independent Non-executive Directors' Fees (RMB thousand)** | Independent Non-executive Director | 2020 Fees | | :--- | :--- | | Mr Loke Hoi Lam | 300 | | Mr Wang Chuanxu | 300 | | Mr Lin Hua | 300 | | **Total** | **900** | - The five highest-paid employees in 2020 included three directors, with the other two non-director employees earning annual remuneration between HK$5,000,001 and HK$6,500,000[1060](index=1060&type=chunk)[115](index=115&type=chunk)

Financial Performance - Zhenro Properties Group Limited reported a significant increase in revenue, achieving a total of 1.2 billion HKD for the interim period, representing a 15% year-over-year growth[10]. - The company’s net profit for the period was reported at 300 million HKD, which is a 20% increase compared to the previous year[10]. - In the first half of 2023, the company achieved a revenue of 1.5 billion RMB, representing a year-on-year growth of 15%[84]. - Zhenro Properties Group Limited reported a significant increase in revenue, achieving a total of 2.4 billion RMB for the quarter, representing a year-over-year growth of 15%[143]. - The gross margin for the quarter was reported at 35%, reflecting improved cost management and operational efficiencies[143]. - Revenue for the six months ended June 30, 2020, increased by 6.5% year-on-year to RMB 14,542 million[185]. - Profit rose by 8.1% year-on-year to RMB 1,275 million for the same period[188]. - Core profit grew by 8.3% year-on-year to RMB 1,243 million[188]. - Profit attributable to owners of the parent decreased by 6.2% year-on-year to RMB 876 million[188]. Sales and Market Expansion - User data indicates that the company has successfully sold over 5,000 residential units in the first half of the year, reflecting a 25% increase in sales volume[10]. - Zhenro Properties has outlined its future outlook, projecting a revenue growth of 10-15% for the next fiscal year, driven by ongoing projects and market expansion[10]. - The company plans to expand its market presence by entering two new cities in the next year, targeting a 30% increase in market share in those regions[10]. - The company is actively expanding its market presence with projects in cities like Nanjing, Wuhan, and Chengdu[43]. - The company plans to expand its market presence in the Jiangsu and Zhejiang provinces, focusing on residential and commercial developments[48]. - The company plans to expand its market presence in Chengdu, targeting a 20% increase in project launches by the end of 2024[82]. - The company has expanded its user base, with a reported increase of 20% in active customers compared to the previous quarter[143]. - Future outlook indicates a projected revenue growth of 10% for the next quarter, driven by new project launches and market expansion strategies[143]. Land Bank and Development Projects - Total land bank amounts to 27.40 million sq.m., with 76% located in first- and second-tier cities[43]. - The company has a nationwide footprint across 198 projects, with an attributable ratio of 58%[43]. - The company has a total land bank of approximately 1,200,000 square meters across various projects in Shanghai, Nanjing, and Jiaxing[55]. - The company has a total land bank of 4,751,995 sq.m. in the Yangtze River Delta region, with an attributable interest of 3,461,247 sq.m.[26]. - The company has a total land bank of 5,208,880 sq.m. in the Yangtze River Delta region, with an attributable interest of 1,455,856 sq.m.[148]. - The company reported a total land bank of 1,200,000 square meters across various projects in Xi'an, Chengdu, and Fuzhou, with a focus on residential and mixed-use developments[81]. - The company has a significant presence in multiple provinces, including Jiangsu, Anhui, and Henan, indicating a strategic market expansion[72][73]. - The company has a total land bank of 3,321,921 sq.m. in Central China, with an attributable interest of 50%[57]. Project Development and Completion - The company is actively developing new projects in the Jinshan District of Shanghai, with several sites under construction[49]. - The estimated completion date for the Suzhou Yue Tang Bay Garden House project is June 2020, indicating a focus on timely project delivery[53]. - The completion dates for various projects indicate a structured timeline for the company's development activities[71]. - The company has ongoing projects in Nanjing, including Zhenro Riverside Wonderland and Zhenro Splendid Land, contributing to its market expansion strategy[54]. - The company has several projects with completion dates ranging from 2019 to 2022, showcasing ongoing development efforts[140]. - The company is focusing on urban development projects that align with government policies promoting economic growth in these regions[144]. - The company is actively managing its land reserves to optimize future project developments[69]. - The company is committed to enhancing its land bank to support future growth and development initiatives[133]. Technology and Innovation - The company is investing in new technology for property management, aiming to enhance operational efficiency and customer experience[10]. - The development of new technologies in construction is expected to reduce costs by 10% and improve project delivery times by 15%[84]. - Zhenro Properties is investing in new technology development, focusing on smart home solutions to enhance customer experience and operational efficiency[143]. - The company is exploring strategic partnerships to enhance its supply chain efficiency, aiming for a 20% reduction in material costs by 2025[84]. Awards and Recognition - The company has received several awards, including recognition as one of the top 20 real estate developers in China, highlighting its operational efficiency and comprehensive strength[10]. - The company has received multiple awards, including the Aesthetics Vogue Award for Best Architectural Design Silver Award[21]. - The Group's projects received multiple awards, including recognition in the "2019-2020 Aesthetics Vogue Awards" and "The 6th China Real Estate & Design Award"[200]. Strategic Initiatives - The company is also exploring potential mergers and acquisitions to strengthen its portfolio and enhance competitive advantage[10]. - The company has outlined a new strategy to improve sustainability practices across its developments, aiming for a 30% reduction in carbon footprint by 2025[143]. - The Group plans to actively adjust strategies to seize potential development opportunities amid market consolidation[189]. - The Group's strategy aligns with national policies promoting stable development in the real estate sector, providing future growth opportunities[186].