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].