Financial Performance - For the year ended December 31, 2023, the Group recorded cumulative contracted sales of approximately RMB 783.2 million, a year-on-year decrease of approximately 64.6%[18] - The Group recognized sales revenue of RMB 2,623.4 million during the Reporting Period, representing a year-on-year decrease of 41.5%[18] - The Group reported an annual loss of RMB 384.8 million for the year ended December 31, 2023[18] - Revenue for the year ended December 31, 2023, amounted to approximately RMB 2,623.4 million, representing a decrease of approximately 41.5% compared to the year ended December 31, 2022[32] - Gross profit for the year ended December 31, 2023, was approximately RMB 32.8 million, with a gross profit margin of approximately 1.25%[32] - Loss for the year ended December 31, 2023, was approximately RMB 384.8 million, representing a decrease of approximately 454.3% compared to the profit of approximately RMB 108.6 million for the year ended December 31, 2022[32] - Total assets as of December 31, 2023, were approximately RMB 11,158.4 million, representing a decrease of approximately 21.3% compared to December 31, 2022[32] - Cash and bank balances were approximately RMB 391.4 million as of December 31, 2023[32] - The Group's revenue decreased by 41.6% from approximately RMB 4,486.0 million in 2022 to approximately RMB 2,621.8 million in 2023, primarily due to a decrease in delivered GFA[102] - Gross profit fell by 94.5% from approximately RMB 596.8 million in 2022 to approximately RMB 32.8 million in 2023, mainly due to reduced revenue[108] Market Conditions - The real estate market in China is projected to maintain a scale of RMB 10 trillion in the long run, with structural opportunities in different cities[14] - In 2024, the national new housing market is expected to continue facing downside pressure, requiring real estate enterprises to formulate corresponding strategies[14] - Looking ahead to 2024, the national new housing market is expected to face continued downside pressure, necessitating tailored strategies from different real estate enterprises[49] - The overall real estate market in China is projected to maintain a scale of RMB 10 trillion in the long run, with structural opportunities in various cities[49] - The real estate market recovery in 2024 will depend on restoring homebuyer expectations and effective supply and demand policies[81] - The new home sales market is expected to continue facing adjustment pressure in 2024, with potential modest growth if economic recovery continues[81] - The "Three major projects" will be the main direction of policy implementation, expected to stabilize investments and restore sales in 2024[81] Operational Strategies - The Group aims to adapt to new market conditions and achieve high-quality development through a balanced structure of asset-light and asset-heavy business[14] - The Group has re-established its operation and management system to enhance operational efficiency and effectiveness[19] - The Group actively adopted regional products as models for research and development, promoting existing major projects effectively[19] - The Group aims to achieve breakthroughs in the performance of major projects in 2024 while creating more development opportunities[24] - The Group will continue to embrace market development and improve operating performance through asset revitalization and operational optimization[25] Financial Ratios and Liabilities - Net gearing ratio was approximately 24.4% as of December 31, 2023, compared to 3.8% as of December 31, 2022[36] - As of December 31, 2023, the company's net asset liability ratio was 24.4%, a significant increase from 3.8% on December 31, 2022[38] - The cash to short-term borrowing ratio decreased to 0.59 times from 1.5 times year-on-year[38] - The asset liability ratio, excluding pre-sale proceeds, rose to 64.9% from 61.7% in the previous year[38] - Total indebtedness as of December 31, 2023 was approximately RMB 901.8 million, a decrease from approximately RMB 1,071.5 million in 2022[135] - Current borrowings increased from RMB 635.4 million in 2022 to RMB 667.6 million in 2023, while non-current borrowings decreased from RMB 436.2 million to RMB 234.2 million[144] Employee and Management Information - The Group had 223 employees as of December 31, 2023, a decrease from 289 employees in the previous year[177] - The group provides competitive compensation packages, including salaries, bonuses, and various allowances, along with social insurance contributions[180] - The executive directors have extensive experience in the real estate industry, with Mr. Qian and Ms. An each having over 18 years of experience[183][187] - Mr. Wang has over 13 years of experience in construction and real estate, having joined the group in March 2010[189] - Mr. Zhang has over 28 years of business management experience, focusing on cost management for property development projects[195] Policy and Regulatory Environment - In February 2023, the government emphasized the importance of the real estate industry and proposed in-depth research on supply and demand relationships in the market[60] - By July 2023, significant changes in the supply and demand relationship of China's real estate market were acknowledged, leading to adjustments in regulatory policies[61] - Since the end of August 2023, various ministries have gradually loosened restrictive policies, marking a positive shift for the real estate industry[63] - The Central Financial Work Conference in October 2023 outlined plans to promote a virtuous cycle between finance and real estate, focusing on equitable financing needs for real estate enterprises[66] - The Central Economic Work Conference in December 2023 confirmed the policy direction for 2024, emphasizing the need to guard against systemic risks while promoting stable market development[66] - Since August 2023, first home mortgage policies have been implemented in major cities, with record-high application frequencies in September 2023[69] - Nearly 30 cities have lowered or canceled sales restriction requirements in 2023, indicating a trend towards policy optimization in the real estate market[75] - The overall environment for real estate policies has remained relaxed, with a focus on supporting rigid and improving housing demand[62] Sales and Marketing Performance - The contracted gross floor area sold was approximately 107,114 square meters, reflecting a year-on-year decrease of 60.9%[82] - The average selling price for contracted sales was approximately RMB 7,227.8 per square meter, a decrease of about 6.5% year-on-year[82] - The Group's contract liabilities were approximately RMB 5,201.6 million, down 31.6% from RMB 7,606.1 million as of December 31, 2022[83] - The Group had completed properties held for sale valued at RMB 2,850.0 million, a 33.9% increase from RMB 2,128.8 million as of December 31, 2022[94] - Properties under development amounted to RMB 5,231.3 million, representing a 34.3% decrease from RMB 7,960.9 million as of December 31, 2022[95]

Financial Performance - For the year ended December 31, 2023, the revenue was approximately RMB 2,623.4 million, a decrease of about 41.5% compared to RMB 4,487.6 million for the year ended December 31, 2022[4]. - The gross profit for the year ended December 31, 2023, was approximately RMB 32.8 million, with a gross margin of approximately 1.25%[4]. - The loss for the year ended December 31, 2023, was approximately RMB 384.8 million, a decrease of about 454.3% compared to a profit of approximately RMB 108.6 million for the year ended December 31, 2022[4]. - Revenue for 2023 was RMB 2,623,434,000, a decrease of 41.5% from RMB 4,487,643,000 in 2022[28]. - Property sales revenue accounted for RMB 2,621,824,000 in 2023, down from RMB 4,486,029,000 in 2022, indicating a significant decline[28]. - The group reported a pre-tax loss of RMB 257,754,000 for 2023, compared to a profit of RMB 311,476,000 in 2022[38]. - The company recorded a loss of approximately RMB 384.8 million for the year ended December 31, 2023, compared to a profit of approximately RMB 108.6 million for the year ended December 31, 2022[84]. Assets and Liabilities - The total assets as of December 31, 2023, were approximately RMB 11,158.4 million, a decrease of about 21.3% from RMB 14,189.5 million as of December 31, 2022[4]. - The net asset liability ratio as of December 31, 2023, was 24.4%[4]. - The company's total debt as of December 31, 2023, was approximately RMB 901.8 million, a decrease from approximately RMB 1,071.5 million as of December 31, 2022[89]. - The net debt-to-equity ratio as of December 31, 2023, was 24.4%, compared to 3.8% as of December 31, 2022[93]. - The group's capital commitments as of December 31, 2023, were RMB 1,827,500,000, down from RMB 2,447,000,000 in 2022, indicating a decrease of about 25.3%[101]. Cash Flow and Liquidity - As of December 31, 2023, cash and bank balances were approximately RMB 391.4 million[4]. - The cash to short-term borrowings ratio decreased to 0.59 times in 2023 from 1.5 times in 2022, suggesting tighter liquidity conditions[52]. - The company has not repaid RMB 390,013,000 of principal on due interest-bearing borrowings as of December 31, 2023[122]. - The company is exploring strategies to improve liquidity and financial conditions, including asset sales and collection of receivables[122]. Sales and Market Conditions - The contracted sales amount for the group and its associates was approximately RMB 783.2 million, a year-on-year decrease of 64.6%[4]. - The total area of contracted sales for the year ended December 31, 2023, was approximately 108,278 square meters, a decrease of 63.0% year-on-year[4]. - The overall real estate market in China faced a 17.3% decline in sales for the top 100 real estate companies in 2023, highlighting ongoing market challenges[54]. - The outlook for the real estate market in 2024 remains under pressure, but there is potential for slight growth in sales if economic recovery continues[67]. Expenses and Financial Costs - Total financing costs for 2023 were RMB 42,293,000, an increase from RMB 27,580,000 in 2022[34]. - Other income and gains decreased by 72% to approximately RMB 5.1 million for the year ended December 31, 2023, from RMB 18.3 million for the year ended December 31, 2022, mainly due to a reduction in government subsidies received[76]. - Sales and distribution expenses decreased by 58.4% from approximately RMB 173.2 million for the year ended December 31, 2022, to approximately RMB 72.1 million for the year ended December 31, 2023, mainly due to reduced promotional and marketing activities[78]. - Financial costs increased by 53.3% from approximately RMB 27.6 million for the year ended December 31, 2022, to approximately RMB 42.3 million for the year ended December 31, 2023, primarily due to increased interest on presale deposits[81]. Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules, ensuring compliance with applicable governance standards[110]. - The independent auditor's report indicated no opinion on the consolidated financial statements due to uncertainties related to going concern[120]. Future Outlook and Strategies - The board believes the group has taken various measures to ensure sufficient available funds for sustainable operations, considering past performance and cash flow forecasts for the next 12 months[16]. - The group is accelerating the sale of developed and under-development properties and expediting the collection of outstanding sales proceeds[18]. - The policy environment for real estate is expected to improve, with significant measures anticipated to be implemented to stabilize the market[65].

Financial Performance - The Group's revenue increased from RMB 1,806.7 million for the six months ended June 30, 2022, to RMB 1,985.2 million for the six months ended June 30, 2023, representing an increase of 9.9%[13]. - The Group recorded a loss of RMB 121.9 million for the six months ended June 30, 2023, compared to a profit of RMB 31.3 million for the same period in 2022[13]. - The Group's gross profit decreased by 40.7% from approximately RMB 243.3 million for the six months ended June 30, 2022, to approximately RMB 144.2 million for the six months ended June 30, 2023[51]. - The gross profit margin decreased to 7.3% for the six months ended June 30, 2023, compared to 13.5% for the same period in 2022[52]. - The net loss for the period was RMB 121,923, a significant decline from a profit of RMB 31,285 in the previous year[165]. - Basic and diluted loss per share was RMB (0.34), compared to RMB (0.05) in the same period of 2022[165]. Sales and Market Activity - The Group's unaudited contracted sales for the six months ended June 30, 2023, were approximately RMB 532.9 million, reflecting a significant decrease of 62.3% year-on-year[13]. - The contracted gross floor area (GFA) sold was approximately 74,090 sq.m., representing a period-on-period decrease of 59.1%[29]. - The average selling price (ASP) of contracted sales for the six months ended June 30, 2023, was approximately RMB 7,193 per sq.m., representing a period-on-period decrease of approximately 7.8%[29]. - The national land market continued to be in a downturn, with the scale of residential land demand and supply in 300 cities falling by more than 30% year-on-year, the lowest level in the past ten years[24]. - In the first half of 2023, the trading activity of new commercial housing in key 100 cities increased by 11% year-on-year, although the sales area fell by more than 20% period-on-period[23]. Financial Position and Ratios - As of June 30, 2023, the net gearing ratio was 9.9%, up from 3.8% as of December 31, 2022[16]. - The cash-to-short term borrowing ratio decreased to 0.98 times as of June 30, 2023, compared to 1.5 times as of December 31, 2022[16]. - The liabilities to asset ratio (excluding advanced sales proceeds) was 62.0% as of June 30, 2023, slightly up from 61.7% as of December 31, 2022[16]. - As of June 30, 2023, total current liabilities decreased to RMB 9,598,267 from RMB 11,225,278 as of December 31, 2022[168]. - Net assets as of June 30, 2023, were RMB 2,365,195, down from RMB 2,516,018 at the end of 2022[168]. Cost Management and Expenses - Selling and marketing expenses decreased by 40.6% from approximately RMB 83.0 million for the six months ended June 30, 2022, to approximately RMB 49.3 million for the six months ended June 30, 2023, attributed to reduced promotional activities[59]. - Administrative expenses decreased by 49.3% from approximately RMB 57.4 million for the six months ended June 30, 2022, to approximately RMB 29.1 million for the six months ended June 30, 2023, due to tighter cost controls[64]. - Other expenses increased by 522.6% from approximately RMB 9.3 million for the six months ended June 30, 2022, to approximately RMB 57.9 million for the six months ended June 30, 2023, primarily due to a contract revocation with the government resulting in a loss of RMB 49.6 million[66]. Cash Flow and Liquidity - Cash generated from operations for the first half of 2023 was RMB 312,504,000, a decrease from RMB 789,949,000 in the prior year[176]. - The total cash flows used in investing activities amounted to RMB 46,353,000, contrasting with a net inflow of RMB 29,467,000 in the prior year[176]. - The Group's current portion of interest-bearing bank and other borrowings as of June 30, 2023, was RMB 744,803,000, while cash and cash equivalents were only RMB 123,052,000, indicating a significant liquidity concern[186]. - The net decrease in cash and cash equivalents for the same period was RMB 10,281,000, significantly improved from RMB 193,265,000 in 2022[181]. Corporate Governance and Management - The Group is committed to high standards of corporate governance and has complied with all applicable code provisions during the six months ended June 30, 2023[126][128]. - The Directors and senior management receive compensation in the form of salaries, bonuses, and other benefits, with remuneration packages reviewed by the Board[117][121]. - The Group emphasizes employee training programs to enhance individual initiative and responsibility[115][121]. Future Outlook and Risks - The overall economic situation is expected to improve in the second half of 2023 due to the introduction of positive economic policies since May 2023[28]. - Material uncertainties exist regarding the Group's ability to achieve its plans due to the volatility of the property sector in China[194]. - The management acknowledges significant uncertainty regarding the ability to implement plans and measures due to the volatility in the real estate sector and the support from banks and creditors[196].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Sanxun Holdings Group Limited 三 巽 控 股集 團有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：6611） 截至2023年6月30日止六個月之 中期業績公告 中期業績概要 (cid:127) 截至2023年6月30日止六個月的收入約為人民幣1,985.2百萬元，較截至2022 年6月30日止六個月增加約9.9%。 • 截至2023年6月30日止六個月的毛利約為人民幣144.2百萬元，毛利率約為 7.3%。 • 截至2023年6月30日止六個月的虧損約為人民幣121.9百萬元，而截至2022 年6月30日止六個月的溢利約為人民幣31.3百萬元。母公司擁有人應佔虧 損約為人民幣226.4百萬元，與截至2022年6月30日止六個月增加約558.1%。 • 於2023年6月30日的總資產約為人民幣12,187.9百萬元，較2022年12月31日 ...

Financial Performance - For the year ended December 31, 2022, the Group recorded cumulative contracted sales of approximately RMB 2,210.0 million, a year-on-year decrease of approximately 70.2%[14] - The Group recognized sales revenue of RMB 4,487.6 million during the Reporting Period, representing a year-on-year decrease of 20.1%[14] - The annual net profit for the Group was RMB 108.6 million[14] - Revenue for the year ended December 31, 2022, amounted to approximately RMB4,487.6 million, representing a decrease of approximately 20.1% compared to the previous year[28] - Gross profit for the year ended December 31, 2022, was approximately RMB596.8 million, with a gross profit margin of approximately 13.3%[28] - Profit for the year ended December 31, 2022, was approximately RMB108.6 million, representing a decrease of approximately 58.1% compared to the previous year, with a loss attributable to owners of the parent of approximately RMB86.1 million[28] - The Group's revenue from property sales decreased by 20.1% from approximately RMB5,616.6 million in 2021 to approximately RMB4,486.0 million in 2022, primarily due to a reduction in delivered GFA from 768,650 sq.m. to 545,909 sq.m.[89] - Gross profit fell by 35.4% from approximately RMB923.3 million in 2021 to approximately RMB596.8 million in 2022, leading to a gross profit margin decline to 13.3% from 16.4%[95][96] Assets and Liabilities - Total assets amounted to approximately RMB 14,178.6 million, with total cash and bank balances of approximately RMB 976.4 million[14] - Cash and bank balances were approximately RMB976.4 million as of December 31, 2022[28] - The net gearing ratio was 3.8% as of December 31, 2022, indicating a healthy level of financial risk resistance[33] - As of December 31, 2022, the net asset liability ratio was 3.8%, down from net cash in 2021, indicating a strong financial position[35] - The cash to short-term borrowing ratio was 1.5 times, compared to 2.1 times in the previous year, reflecting a decrease in liquidity[35] - Total indebtedness decreased from approximately RMB 1,598.9 million as of December 31, 2021, to approximately RMB 1,071.5 million as of December 31, 2022[124] - As of December 31, 2022, the total borrowings amounted to RMB 1,071.5 million, a decrease of 33% from RMB 1,598.9 million in 2021[137] - The Group's total guarantees to banks for mortgage loans provided to customers were RMB 5,897.8 million as of December 31, 2022, down from RMB 6,774.9 million in 2021[152] - The Group's capital commitment contracted but not yet provided for was RMB 2,447.0 million as of December 31, 2022, compared to RMB 2,809.4 million in 2021[153] Market Conditions and Economic Outlook - The targeted GDP growth for China in 2023 is set at about 5%[13] - The real estate sector is expected to receive more support and attention from macroeconomic and financial policies in 2023[13] - The economic development in 2023 will aim to stimulate private consumption and investment vitality[13] - The Group anticipates that property prices in major tier-1 and tier-2 cities will stabilize in 2023, although recovery may take longer[45] - Local governments are expected to list various premium land for sale in 2023 to attract enterprises, with a focus on improvement projects[50] - The government plans to issue RMB 3.8 trillion in special bonds to stimulate investment and support housing demand, indicating a proactive approach to economic recovery[49] Operational Strategy - The Group is committed to enhancing management efficiency and increasing its new land bank to embrace potential development opportunities[18] - The Group maintained a focus on profitability and cash flow while navigating the challenges in the real estate industry[18] - The Group actively cooperated and communicated with various institutions to sustain its profitability[18] - The Group aims to enhance its core business capabilities and deepen its development footprint in the Yangtze River Delta region to achieve better operational results[38] - The Group plans to broaden financing channels and develop low-cost financing options to enhance financial security[56] - The Group actively improved its management efficiency and operational capabilities throughout 2022, leading to enhanced competitiveness in customer reputation and market recognition[22] Employee and Management Information - As of December 31, 2022, the Group had 289 employees, a significant reduction from 779 employees in 2021[163] - The Group provides competitive compensation packages, including salaries, bonuses, and various allowances, along with social insurance contributions[166] - The Group emphasizes training programs for employees to meet various requirements and values individual initiative and responsibility[166] - The Group's executive directors have over 17 years of experience in the real estate industry, contributing to strategic planning and major decision-making[169][173] - The Group's management team includes professionals with diverse backgrounds in finance, engineering, and real estate, contributing to its strategic decision-making[184] Project Development - As of December 31, 2022, the Group had a total land bank of approximately 2.54 million sq.m. at different stages of development[19] - The Group has a diverse portfolio of 47 projects, including 27 completed projects and 19 under development as of December 31, 2022[69] - The Group's total land bank is approximately 2,539,144 sq.m., with significant projects in Wuxi, Chuzhou, and Changzhou scheduled for completion between late 2023 and 2024[86] - The Group's completed properties held for sale amounted to RMB2,128.8 million, a 37.3% increase from RMB1,550.3 million as of December 31, 2021[70] - Properties under development were valued at RMB7,960.9 million, representing a 25.2% decrease from RMB10,645.9 million as of December 31, 2021[71]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Sanxun Holdings Group Limited 三 巽 控 股 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：6611） 截至2022年12月31日止年度之 年度業績公告 年度業績概要 • 截至2022年12月31日止年度的收入約為人民幣4,487.6百萬元，較截至2021 年12月31日止年度減少約20.1%。 • 截至2022年12月31日止年度的毛利約為人民幣596.8百萬元，毛利率約為 13.3%。 • 截至2022年12月31日止年度的溢利約為人民幣108.6百萬元，較截至2021年 12月31日止年度減少約58.1%。母公司擁有人應佔虧損約為人民幣86.1百 萬元。 • 於2022年12月31日的總資產約為人民幣14,178.6百萬元，較2021年12月31日 減少約17.6%。 ...

Financial Performance - The Group's revenue decreased from RMB2,166.0 million for the six months ended 30 June 2021 to RMB1,806.7 million for the six months ended 30 June 2022, representing a decline of approximately 16.6%[11]. - The Group's profit decreased from RMB194.4 million for the six months ended 30 June 2021 to RMB31.3 million for the six months ended 30 June 2022, a decline of approximately 83.9%[11]. - For the six months ended June 30, 2022, the Group recorded unaudited contracted sales of approximately RMB1,414.0 million, representing a period-on-period decrease of 70.6%[42]. - The average selling price (ASP) of contracted sales for the same period was approximately RMB7,801 per sq.m., a decrease of about 12.8% year-on-year[42]. - Gross profit decreased by 52.1% from approximately RMB507.8 million for the six months ended June 30, 2021, to approximately RMB243.3 million for the six months ended June 30, 2022, primarily due to fewer properties completed and delivered[75]. - Profit before tax decreased to RMB 91,186, representing a decline of 68.1% from RMB 285,858 in the prior year[177]. - The company reported a basic and diluted loss per share of RMB (0.05) compared to earnings of RMB 0.13 per share in the previous year[177]. Financial Position - As of 30 June 2022, the Group's net gearing ratio was at a net cash position, indicating a strong financial position[13]. - The cash-to-short term borrowing ratio improved to 1.4 times as of 30 June 2022, up from 1.2 times as of 31 December 2021[13]. - The liabilities to asset ratio (excluding advanced sales proceeds) decreased to 63.4% as of 30 June 2022, down from 66.0% as of 31 December 2021[13]. - The total indebtedness of the Group decreased to RMB 1,211,153,000 as of June 30, 2022, down 24.2% from RMB 1,598,874,000 as of December 31, 2021[96]. - The Group's assets pledged for borrowings were valued at approximately RMB 3,367.8 million as of June 30, 2022, down from RMB 4,275.0 million as of December 31, 2021[113]. - Total current assets amounted to RMB 15,692,010, a decrease from RMB 16,689,343 as of December 31, 2021[179]. - Total current liabilities were RMB 13,480,442, down from RMB 14,356,365 at the end of 2021[179]. Market Conditions - The real estate industry is expected to benefit from continued monetary policy relaxation in the second half of 2022, with adjustments on both supply and demand sides[28]. - The real estate market is expected to fully warm up in September and October 2022, with significant recovery signs in cities like Suzhou, Dongguan, and Chengdu[30]. - The number of cities experiencing month-on-month price increases for commercial residential buildings has risen, indicating a recovery in real estate sales and investment data[29]. - Major projects are concentrated in Nanjing and Hefei urban agglomerations, which are gradually gaining market influence due to improved urban capabilities[24]. Operational Strategies - The Group aims to maintain stable results with a rising trend while increasing efficiency and reducing expenditure[15]. - The Group is focused on improving core business capabilities and deepening its development footprint in the Yangtze River Delta[15]. - The Group plans to control quality and profits while organizing sufficient funds to balance supply and demand[39]. - The Group aims to enhance competitiveness through quality management, service improvement, and internal project operations in response to new market demands[24]. - The Group plans to enhance its market expansion strategies and focus on new product development to improve future performance[67]. Employee and Governance - The Group had 385 employees as of June 30, 2022, down from 779 employees as of December 31, 2021, indicating a reduction of approximately 50.6%[123]. - The Group is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions set out in the Corporate Governance Code during the reporting period[138]. - The Directors and senior management receive compensation in the form of salaries, bonuses, and other benefits, with remuneration packages reviewed by the Board[127]. Cash Flow and Liquidity - The cash generated from operations for the six months ended June 30, 2022, was RMB 789,949,000, a decrease from RMB 1,211,953,000 in the same period of 2021[188]. - The net cash flows from operating activities amounted to RMB 653,633,000 for the first half of 2022, compared to RMB 998,715,000 in the prior year[188]. - The current portion of interest-bearing bank and other borrowings as of 30 June 2022 was RMB 941,075,000, raising concerns about the Group's ability to continue as a going concern given the low cash reserves[198]. - The significant drop in cash and cash equivalents suggests potential liquidity issues that could impact future operations and investments[198]. Shareholder Information - As of June 30, 2022, Mr. Qian Kun holds 434,895,000 shares, representing a 64.38% shareholding interest in the company[153]. - The total number of issued shares as of June 30, 2022, is 675,529,000 shares[156]. - Q Kun Ltd. is a substantial shareholder with 397,275,000 shares, accounting for 58.81% of the company's shares[165]. - The company confirms that public float is no less than 25% of the entire share capital as of the date of the interim report[171].

Financial Performance - For the year ended December 31, 2021, the Group recorded a cumulative contracted sales amount of approximately RMB 7,405.4 million, representing a year-on-year increase of approximately 16.8%[18]. - The Group confirmed sales revenue of RMB 5,616.6 million during the Reporting Period, reflecting a substantial year-on-year increase of 42.3%[18]. - The annual net profit for the Group was RMB 259 million[18]. - Revenue for the year ended 31 December 2021 amounted to approximately RMB 5,616.6 million, representing an increase of approximately 42.3% compared to the year ended 31 December 2020[42]. - Gross profit for the year ended 31 December 2021 was approximately RMB 923.3 million with a gross profit margin of approximately 16.4%[42]. - Profit for the year ended 31 December 2021 was approximately RMB 258.9 million, representing a decrease of approximately 29.6% compared to the year ended 31 December 2020[42]. - The Group's revenue increased by 42.3% from approximately RMB 3,946.1 million in 2020 to approximately RMB 5,616.6 million in 2021, driven by an increase in delivered GFA[128]. - The total aggregate GFA recognized rose from 579,817 sq.m. in 2020 to 768,605 sq.m. in 2021, reflecting more properties completed and delivered[129]. Assets and Liabilities - Total assets amounted to approximately RMB 17,211.2 million[18]. - Total cash and bank balances were approximately RMB 1,694.1 million[18]. - As of December 31, 2021, the Group had total assets of approximately RMB 17,211.2 million and cash and bank balances totaling approximately RMB 1,694.1 million[21]. - Total current borrowings increased to RMB 1,372,124, up from RMB 1,065,298, representing a growth of approximately 29% year-over-year[167]. - Total non-current borrowings decreased to RMB 226,750 from RMB 1,031,154, a decline of approximately 78% year-over-year[170]. - The total indebtedness of the Group as of December 31, 2021, was RMB 1,598,874, down from RMB 2,096,452, a reduction of about 24% year-over-year[171]. - The net gearing ratio was at a net cash position as of December 31, 2021, indicating no significant debt burden[171]. - The Group's total guarantees given to banks for mortgage loans amounted to RMB 6,774,905, a decrease from RMB 7,084,443, reflecting a reduction of approximately 4% year-over-year[186]. Land and Development - The Group acquired 3 plots of land with a total construction area of approximately 271,100 square meters, further implementing its investment strategy in Anhui and the Yangtze River Delta[23]. - The Group's land bank totaled approximately 3.7 million square meters at different stages of development as of December 31, 2021[24]. - The company reported a land bank of approximately 1,000,000 square meters across various projects, with significant developments in Bozhou and Hefei[106]. - The company has a land bank of 1,200,000 square meters across various projects, with significant equity attributable to the group ranging from 27% to 100%[118]. - The Group's strategic focus on expanding its property development projects is evident in its ongoing and future project pipeline, aimed at enhancing market presence[87]. Market Position and Strategy - The Group was ranked 85th among the top 100 China real estate enterprises in terms of comprehensive strength and 70th in brand value in 2021[24]. - In July 2021, the Group was successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited, raising over USD 110 million[25]. - Looking forward to 2022, the Group plans to adjust its business strategy to adapt to the new operating model of the industry and aims for steady breakthroughs in business performance[31]. - The Group will focus on improving customer satisfaction and enhancing product and service capabilities to increase customer stickiness in 2022[33]. - The Group aims to optimize its organizational structure and enhance internal management capabilities to achieve healthy, sustainable, and high-quality development[33]. Costs and Expenses - The cost of sales increased by 62.9% from approximately RMB 2,881.1 million in 2020 to approximately RMB 4,693.3 million in 2021, attributed to the higher delivery of properties[134]. - Gross profit decreased by 13.3% from approximately RMB 1,065.0 million in 2020 to approximately RMB 923.3 million in 2021, primarily due to increased cost of sales[135]. - The gross profit margin fell to 16.4% in 2021 from 27.0% in 2020, influenced by lower margin projects and cost overruns[136]. - Selling and distribution expenses increased by 10.5% from approximately RMB 200.2 million in 2020 to approximately RMB 221.2 million in 2021, primarily due to increased promotion and marketing activities[144]. - Administrative expenses rose by 4.0% from approximately RMB 188.7 million in 2020 to approximately RMB 196.3 million in 2021, attributed to continuous business expansion[145]. Other Financial Metrics - Other income and gains rose by 15.3% from approximately RMB 12.4 million in 2020 to approximately RMB 14.3 million in 2021, mainly due to increased interest income on bank deposits[142]. - Finance costs surged by 81.0% from approximately RMB 22.1 million in 2020 to approximately RMB 40.0 million in 2021, primarily due to increased interest on borrowings before project commencement[153]. - Income tax expenses decreased by 32.3% from approximately RMB 275.6 million in 2020 to approximately RMB 186.5 million in 2021, mainly due to a lower gross profit margin and reduced taxable income[156]. - The current ratio improved to 1.2 times as of December 31, 2021, compared to 1.1 times as of December 31, 2020[164]. Compliance and Risk Management - The Group does not have a policy to hedge against foreign exchange risk, with only RMB 1.2 million in cash denominated in Hong Kong dollars[176]. - The Group's exposure to interest rate risk is limited as all borrowings are at fixed rates, with no significant anticipated impacts from interest rate changes[178]. - As of December 31, 2021, the Group's assets pledged for borrowings had a carrying value of approximately RMB 4,275.0 million, an increase from RMB 4,060.5 million[180].

Financial Performance - The Group's revenue increased from RMB1,099.7 million for the six months ended June 30, 2020, to RMB2,166.0 million for the six months ended June 30, 2021, representing a growth of 97%[15]. - The Group's profit rose from RMB82.6 million for the six months ended June 30, 2020, to RMB194.4 million for the six months ended June 30, 2021, marking an increase of 135%[15]. - The Group recorded unaudited contracted sales of approximately RMB4,805.5 million for the six months ended June 30, 2021, reflecting a period-on-period increase of 44.7%[15]. - The contracted gross floor area (GFA) sold was approximately 537,100 sq.m., representing a period-on-period increase of 29.5%[42]. - The average selling price (ASP) of contracted sales for the same period was approximately RMB8,947 per sq.m., representing a period-on-period increase of approximately 11.7%[42]. - The total recognized revenue from residential properties was RMB2,096.3 million for the six months ended June 30, 2021[72]. - Gross profit increased by 63.8% from approximately RMB310.0 million for the six months ended June 30, 2020, to approximately RMB507.8 million for the six months ended June 30, 2021[77]. - The gross profit margin decreased to 23.4% for the six months ended June 30, 2021, compared to 28.2% for the six months ended June 30, 2020, primarily due to the completion and delivery of certain projects[77]. Financial Position - As of June 30, 2021, the Group's net gearing ratio was 7.3%, with a cash-to-short term borrowing ratio of 1.5 times and a liabilities to asset ratio of 76.3%[18]. - As of June 30, 2021, the company's net asset liability ratio was 7.3%, down from a net cash position at the end of 2020, indicating strong financial health[21]. - The cash to short-term borrowing ratio was 1.5 times, compared to 2.1 times at the end of 2020, reflecting a slight decrease in liquidity[21]. - The asset liability ratio, excluding pre-sale proceeds, was 76.3%, improved from 79.4% at the end of 2020, showing effective debt management[21]. - Total indebtedness amounted to approximately RMB2,312.0 million as of June 30, 2021, up from approximately RMB2,096.5 million as of December 31, 2020[102]. - Total current borrowings increased to RMB 1,482.7 million as of June 30, 2021, up from RMB 1,065.3 million as of December 31, 2020, representing a growth of approximately 39.2%[104]. - The net gearing ratio as of June 30, 2021, was approximately 7.3%, an increase from a net cash position as of December 31, 2020, indicating a rise in financial leverage[108]. - The Group's total non-current borrowings decreased to RMB 829.3 million as of June 30, 2021, from RMB 1,031.2 million as of December 31, 2020, a decline of approximately 19.6%[107]. Market and Operational Insights - The Group has successfully expanded its operations into the real estate markets of Shandong and Jiangsu provinces since 2018[12]. - The real estate market in Anhui Province has shown resilience, with total sales and average selling prices rebounding quickly since Q2 2020, maintaining a relatively high level[29]. - The sales volume in core tier-1 and tier-2 cities, particularly in the Yangtze River Delta Region, has remained at a higher growth rate, indicating sustained market demand[25]. - The "Three Red Lines" policy has led to further deleveraging among real estate companies, ensuring that debt levels remain reasonable and safe[30]. - The Ministry of Housing and Urban-Rural Development's policy for centralized supply of residential land in 22 major cities has enhanced transparency and predictability in land supply[30]. - The Group plans to actively expand in Yangtze River Delta cities, leveraging its established presence in Anhui province[40]. - The Group aims to enhance its core business capabilities and deepen its development footprint in the Yangtze River Delta, achieving good operational results[21]. Awards and Recognition - The Group's project Hefei Sanxun·Elegance received the "Year 2020 Excellent Project" award, highlighting its quality and production capabilities[19]. - The Group's project Huaiyuan Sanxun·Elegance was awarded "Year 2021 Real Estate Quality and Safety Premises," further reflecting its commitment to quality[19]. - The company received multiple awards for its projects, showcasing its quality and development capabilities, including recognition for "Outstanding Property" in Anhui Province[21]. Strategic Initiatives - The Group has been optimizing its debt structure and strengthening cash reserves to enhance financial risk resistance[18]. - The Group aims to broaden financing channels and develop low-cost financing options to strengthen financial security and maintain sufficient liquidity[38]. - The Group will focus on cash flow from operating activities and improve sustainable operation capabilities in response to real estate investment challenges[38]. - The Group will explore non-public market resources for quality land reserves through mergers and acquisitions and urban renewal initiatives[38]. Shareholder Information - As of the listing date, Mr. Qian Kun holds a long position of 432,630,000 shares, representing 65.55% of the company's shareholding interest[158]. - Ms. An Juan also holds a long position of 432,630,000 shares, equating to 65.55% of the company's shareholding interest[158]. - Q Kun Ltd. holds 395,010,000 shares and has a short position of 24,750,000 shares, representing 59.85% and 3.75% of the company's shareholding interest respectively[171]. Use of Proceeds - The company received net proceeds of approximately HK$773.5 million from the Global Offering after deducting underwriting commissions and related costs[176]. - The company plans to fully utilize 60% of the net proceeds, approximately HK$464.1 million, by the end of 2021[182]. - 30% of the net proceeds, approximately HK$232.0 million, is allocated for land acquisition to increase the land bank, expected to be fully utilized by 2021[183]. - General working capital is allocated 10% of the net proceeds, approximately HK$77.4 million, expected to be fully utilized by June 30, 2022[189].