Core Viewpoint - Longfor Group Holdings Limited reported its annual performance for the year ending December 31, 2023, highlighting a resilient approach amid macroeconomic shifts towards high-quality development in the real estate market [1] Financial Performance - The company achieved a total revenue of 180.74 billion yuan and a net profit attributable to shareholders of 12.85 billion yuan, with core net profit after excluding fair value changes reaching 11.35 billion yuan [1] - Gross profit amounted to 30.58 billion yuan, resulting in a gross margin of 16.9%, while the core net profit margin stood at 8.7% and the core profit attributable to equity holders was 6.3% [1] Development Business - The development segment generated revenue of 155.86 billion yuan, with a total delivered property area of 10.708 million square meters and a settlement gross margin of 11.0% [1] - The company recorded contract sales in real estate development of 173.49 billion yuan, achieving a sales collection rate exceeding 100% [1] Regional Sales Performance - Sales distribution by region showed that the Yangtze River Delta, Bohai Rim, Western China, South China, and Central China accounted for 28.9%, 21.8%, 28.4%, 11.8%, and 9.1% of total sales, respectively, with first and second-tier cities making up 95% of sales [1] Delivery and Customer Satisfaction - Longfor Group delivered a total of 140,000 housing units in 2023, with 20% delivered more than a month ahead of schedule, achieving a customer satisfaction rate exceeding 90% [1] Investment Strategy - The company focused on investment in core regions, acquiring 31 new land parcels in major cities such as Shenzhen, Shanghai, Guangzhou, Chengdu, Hangzhou, and Suzhou, with a total new land reserve area of 3.68 million square meters and an equity area of 2.66 million square meters [1] - As of December 31, 2023, the total land reserve reached 45.39 million square meters, with an equity area of 32.36 million square meters, concentrating 77% of its value in high-energy cities and valuable areas at reasonable costs [1]

Financial Performance - Contract sales amounted to RMB 173.49 billion, corresponding to a total sales area of 10.796 million square meters[1] - Operating revenue reached RMB 180.74 billion, with revenue from operations and services increasing by 5.7% year-on-year to RMB 24.88 billion[1] - Shareholders' profit attributable to the company was RMB 12.85 billion, with core profit after excluding fair value changes at RMB 11.35 billion, contributing over 60% from operations and services[1] - Gross profit was RMB 30.58 billion, with a gross profit margin of 16.9% and a core net profit margin of 8.7%[1] - Total comprehensive income for the year was RMB 15.68 billion, down from RMB 30.85 billion in the previous year[7] - The company's annual profit attributable to shareholders for 2023 was RMB 12,850,011,000, a decrease from RMB 24,362,046,000 in 2022, representing a decline of approximately 47.3%[33] - The adjusted profit for the segment was RMB 24,528,297 for 2023, down 47.6% from RMB 46,812,618 in 2022[17] - The revenue from the development segment was RMB 155,857,211 in 2023, compared to RMB 227,017,339 in 2022, reflecting a decline of 31.4%[19] - The revenue from service and other segments was RMB 11,943,543 in 2023, slightly up from RMB 11,667,957 in 2022[19] Assets and Liabilities - Total assets decreased to RMB 433.42 billion from RMB 450.90 billion year-on-year[9] - The total assets of the company decreased to RMB 700,406,875 in 2023 from RMB 786,774,416 in 2022, a reduction of 10.9%[17] - The total liabilities also decreased to RMB 463,948,608 in 2023 from RMB 553,595,326 in 2022, a decline of 16.2%[17] - The company's total liabilities decreased from RMB 93,902,617,000 in 2022 to RMB 67,600,213,000 in 2023, indicating a reduction of about 28%[36] - The total amount of trade payables and accrued construction costs was RMB 42,482,145,000 in 2023, down from RMB 64,096,184,000 in 2022, reflecting a decrease of approximately 33.7%[36] Cash Flow and Debt - Net debt ratio stood at 55.9%, with cash on hand amounting to RMB 60.42 billion[1] - Total consolidated borrowings decreased by 7.4% year-on-year to RMB 192.65 billion, with an average borrowing cost of 4.24%[1] - The company's interest-bearing debt as of the end of 2023 was RMB 192.6 billion, a decrease of 7.4% from 2022, with bank financing accounting for 77%[39] - The average borrowing cost for the group was 4.24%, with fixed-rate debt accounting for 32% of total debt[63] Dividends - The board proposed a final dividend of RMB 0.23 per share, totaling an annual dividend of RMB 0.55 per share[1] - The company confirmed an interim dividend of RMB 0.32 per share for 2023, compared to RMB 0.33 per share in 2022, indicating a slight decrease of 3%[31] Segment Performance - The company operates through three main business segments: Development, Operations, and Services, primarily in China[13] - The performance of each segment is monitored based on revenue, performance, assets, and liabilities allocated to each segment[14] - The company evaluates segment performance using adjusted profit metrics, which exclude interest, other income, taxes, depreciation, and amortization[14] - The sustainable revenue from the operations and services segment reached RMB 24.9 billion, representing a year-on-year growth of nearly 6%[40] Investment Properties - The company’s investment property portfolio primarily consists of shopping malls and rental housing, all located in China[13] - The rental income from shopping malls accounted for 77.4% of the total rental income, while rental apartments contributed 19.7%[48] - The group's operating income from rental activities in 2023 was RMB 12.94 billion, representing an 8.9% increase from the previous year, with a gross profit margin of 75.9%[48] - The total area of operational shopping malls reached 7.97 million square meters, with an overall occupancy rate of 96.2%[48] Market Expansion and Future Plans - The company expects to continue focusing on market expansion and new product development in the upcoming fiscal year[16] - The group continues to expand its presence in first and second-tier cities across China, focusing on urban shopping centers and rental housing[48] - The group plans to complete approximately 16 million square meters of properties in 2023 and aims for about 15 million square meters in 2024, with most projects concentrated in the second half of the year[66] - The group will adjust the pace of property launches flexibly in 2024 based on market conditions, focusing on improving demand[66] Compliance and Governance - The company adopted new International Financial Reporting Standards (IFRS) and amendments effective from January 1, 2023, with no significant impact on financial position or performance[11] - The audit committee has reviewed the accounting principles and discussed risk management and internal control systems for the financial year ending December 31, 2023[70] - The company has complied with the securities trading standards set forth in the listing rules for the year ending December 31, 2023[73]

股 票 研 究 [Table_industryInfo] 房地产 [ Table_Main[龙I Tnaf 湖bol]e 集_Ti团tle]（ 0960） [评Tab级le_：Inv est] 增持 当前价格（港元）： 10.84 聚焦协同，稳健发展 2024.03.13 海 ——2023年业绩预告点评 [ 交Ta易bl数e_M据a rket] 外 谢皓宇(分析师) 黄可意(研究助理) 白淑媛(分析师) 52周内股价区间（港元） 7.92-24.85 当前股本（百万股） 6,767 公 010-83939826 010-83939815 021-38675923 当前市值（百万港元） 73,357 司 xiehaoyu@gtjas.com huangkeyi028691@gtjas.com baishuyuan@gtjas.com 证书编号 S0880518010002 S0880123070129 S0880518010004 （ [ Table_PicQuote] 中 本报告导读： 52周内股价走势图 国 公司预计 2023 年归母净利润同比下滑 45%~50%，主要源自开发业务收入和毛利率 XX股票 X ...

[Table_Header] 公司点评●房地产 2024年 03 月10 日 [Table_Title] [Table_StockCode] 龙湖集团(0960) 业绩下降控负债，非开发业务占比提升 [Table_InvestRank] 推荐 (维持) --2023 年业绩预警点评 核心观点： 分析师 [Table⚫_ Sum事m件ar：y] 公司发布 2023 年业绩预警，2023 年全年实现的归母净利润和剔 [胡Ta孝b宇le_ Authors] 除公允价值变动等影响后的股东应占核心净利润均预计同比下降 45%- 50%。 ：huxiaoyu_yj@chinastock.com.cn ⚫ 业绩下滑：公司发布 2023 年业绩预警。2023 年全年实现的归母净利润 分析师登记编码：S0130523070001 和剔除公允价值变动等影响后的股东应占核心净利润均预计同比下降 45%-50%。受到 2022年、2023年行业整体下行的影响，销售下滑、价格 承压等造成地产开发业务结算规模下行、结算毛利率下降是业绩下滑的 [市Ta场ble数_M据ark et] 2024-03-08 主要原因。 股票代码 0960 ...

海 外 研 证券研究报告 究 ＃industryId＃ 房地产行业 ＃00960 .HK ＃龙dy湖Com集pa团ny＃ 港股通（沪、深） dyStockco d e＃ ＃ ＃investSuggestion＃ ＃title＃ 增持 ( i下nve调stS ） 销售下降符合预期，经营性业务贡献增强 uggesti onC han ge＃ ＃createTime1＃ 2024年 3 月 2 日 投资要点 跟 ＃市场ma数rk据et Data＃ ＃ ⚫ sum 我ma 们ry 的＃观 点：公司保持项目如期交付，当前短债占比可控，销售规模下降和拿地节奏有所 踪 日期 2024.3.1 放缓，符合预期，公司战略重心一方面放在管控财务风险，另一方面积极培育多元化业务， 报 收盘价(港元) 9.77 经营性业务盈利贡献正在持续增强。受到行业销售规模下行影响，以及与行业毛利率整体 告 总股本(亿股) 67.67 下滑同步，我们预计公司 2023/2024/2025 年的营业收入为 1792/1497/1327 亿元，同比 -28.5%/-16.5%/-11.4%；核心净利润为117/113/114亿元，同比-48.1%/- ...

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the next 6-12 months with expected investment returns leading the market benchmark by more than 15% [7] Core Views - The company's five major business segments (property development, commercial investment, long-term rental apartments, property management, and smart construction) are developing steadily, contributing to stable performance and cash flow [1][2] - Despite short-term pressure from the real estate market downturn, the company's sales layout and product structure are gradually upgrading to better adapt to industry trends [1] - The company's financial position remains robust, with a reasonable debt maturity structure and manageable short-term debt pressure [2] Financial Performance and Valuation - Revenue is expected to decline from RMB 211.17 billion in 2023E to RMB 178.39 billion in 2025E, with a year-on-year decrease of 7.9% in 2025E [1] - Net profit attributable to the parent company is forecasted to grow from RMB 14.46 billion in 2023E to RMB 16.13 billion in 2025E, with a year-on-year growth of 5.0% in 2025E [1] - The basic EPS is projected to increase from RMB 2.14 in 2023E to RMB 2.38 in 2025E, while the core EPS is expected to rise from RMB 1.97 in 2023E to RMB 2.24 in 2025E [1] - The P/E ratio (basic) is estimated to decrease from 4.09X in 2023E to 3.67X in 2025E, indicating a potential undervaluation [1] Sales and Market Position - In 2023, the company achieved sales of RMB 173.49 billion, a year-on-year decrease of 13.9%, but the decline narrowed by 16.6 percentage points compared to 2022 [1] - The sales price per square meter increased by 4.09% year-on-year in 2023, driven by the promotion of high-end products and strengthened core city layout [1] - In the first two months of 2024, the company's sales amounted to RMB 12.59 billion, ranking ninth in the CRIC sales ranking, despite a 55.2% year-on-year decrease due to industry-wide demand decline [1] Land Acquisition Strategy - In 2023, the company acquired land worth RMB 35.1 billion, with a land acquisition to sales ratio of 20.2%, focusing on high-value core second-tier cities such as Xi'an, Chengdu, and Suzhou [2] - The company's land acquisition in first-tier and core second-tier cities accounted for 23.7% and 70.3% of the total, respectively, laying a solid foundation for future sales [2] Operational Income and Business Segments - The company's operational income (excluding tax) reached RMB 24.87 billion in 2023, a year-on-year increase of 6.3%, with RMB 12.94 billion from operations and RMB 11.93 billion from services [2] - The five major business segments are showing good synergy, with operational income playing an increasingly important role in stabilizing the company's performance and cash flow [2] Debt and Credit Management - In 2023, the company successfully issued two medium-term notes guaranteed by China Bond Insurance, totaling RMB 2.3 billion, with coupon rates of 3.50% and 3.66% [2] - The company has cleared its overseas debt due in 2024, and its short-term debt pressure is relatively manageable [2] Market Data and Valuation - The company's current share price is HKD 9.63, with a total market capitalization of HKD 65.17 billion [3] - The stock's 52-week low and high are HKD 7.92 and HKD 23.01, respectively, with a 3-month turnover rate of 20.92% [3]

股 票 研 究 [Table_industryInfo] 房地产 [ Table_Main[龙I Tnaf 湖bol]e 集_Ti团tle]（ 0960） [评Tab级le_：Inv est] 增持 当前价格（港元）： 9.17 业务结构逐步优化 2024.02.21 海 ——1 月经营数据点评 [ 交Ta易bl数e_M据a rket] 外 谢皓宇(分析师) 黄可意(研究助理) 白淑媛(分析师) 52周内股价区间（港元） 7.92-24.90 当前股本（百万股） 6,767 公 010-83939826 010-83939815 021-38675923 当前市值（百万港元） 62,056 司 xiehaoyu@gtjas.com huangkeyi028691@gtjas.com baishuyuan@gtjas.com 证书编号 S0880518010002 S0880123070129 S0880518010004 （ [ Table_PicQuote] 中 本报告导读： 52周内股价走势图 国 公司发布 1 月经营数据，开发业务表现与行业基本一致，即销售延续弱势但跌幅收 龙湖集团 恒生指数 香 窄，拿 ...

Financial Performance - Longfor Group's revenue for the first half of 2023 reached HKD 30 billion, representing a 15% increase compared to the same period last year[9]. - The Group's total revenue for the first half of 2023 was RMB 49.87 billion, down from RMB 83.77 billion in the same period of 2022[64]. - The Group achieved contracted sales of RMB 98.52 billion from January to June 2023, with a total GFA sold of 5.799 million square meters[65]. - The average selling price of GFA sold was RMB 16,987 per square meter[65]. - The Group's core attributable profit reached RMB 6.59 billion, with a dividend distribution of RMB 0.32 per share[53]. - Profit for the period was RMB 9,295,402, a decline of 14.6% from RMB 10,883,297 in the previous year[137]. - Total comprehensive income for the period was RMB 9,572,104, compared to RMB 9,934,952 in 2022, reflecting a decrease of 3.6%[139]. - The Group's total gross floor area under management for property services exceeded 350 million square meters[57]. - The Group's total land bank was 54.89 million square meters, with an average unit land cost of RMB 5,027 per square meter[80]. Market Strategy and Development - Longfor Group reported a high-quality development strategy focusing on stable growth amid market challenges[2]. - The company plans to expand its market presence through strategic acquisitions, targeting at least two new properties in key urban areas by Q4 2023[9]. - The company continues to focus on developing new projects and enhancing its portfolio in key urban areas[40]. - Longfor Group is actively expanding its footprint, with ongoing developments such as the Changzhou Yuanshan Paradise Walk, expected to complete by November 2027[45]. - The company aims to transition to a development model characterized by low leverage, low costs, and positive operating cash flow, moving away from debt-driven growth[102]. Project Completion and Development Timeline - The overall project completion date for the Train New Town in Baoding is expected in November 2026, with a group interest of 70% and a remaining unsold area of 50,236 sqm[11]. - Jiuli Xichen in Beijing is expected to complete in November 2023, with a group interest of 30%[11]. - The Wangquan Temple Elegant Mansion project in Beijing has a completion date of December 2023, with a group interest of 95% and a remaining unsold area of 28,505 sqm[11]. - The Light Year project in Chengdu is expected to complete in December 2025, with a group interest of 66% and a remaining unsold area of 1,822 sqm[11]. - The company has a total of 19 ongoing projects in Changchun, with a combined GFA under development of 149,429 sqm and 56,319 sqm under planning[31]. Rental Income and Commercial Operations - The operation business generated over RMB 6.0 billion in rental income, contributing to positive cash flow from commercial divisions[56]. - The overall rental income from shopping malls was RMB 4.88 billion, contributing significantly to the Group's revenue[71]. - The total Gross Floor Area (GFA) of operational shopping malls reached 7.62 million square meters, with an overall occupancy rate of 95.4% as of June 30, 2023[70]. - The Group's rental housing brand "Goyoo" has over 119,000 rooms in operation, with an occupancy rate of 95.9% for rooms operational for over 6 months[96][97]. - The rental income from shopping malls reached RMB 5,012,120,000, representing a 100% share of rental income[75]. Debt and Financial Management - The Group's consolidated borrowings amounted to RMB 207.09 billion, with cash in hand of RMB 72.43 billion, resulting in a net debt to equity ratio of 57.2%[92]. - The Group has reduced its overall debt size while optimizing the debt structure, with 97% of foreign exchange risks hedged[58]. - The average maturity period of loans was 7.19 years, with unsecured debt accounting for 67.6% of total debt[94]. - The Group's liabilities to asset ratio, excluding pre-sale deposits, was 61.9%[92]. - The Group's cash to short-term debt ratio was 1.96X, excluding regulated pre-sale funds and restricted capital[94]. Corporate Governance and Shareholder Information - The Company is committed to high standards of corporate governance to enhance company value and performance[124]. - The audit committee consists of three independent non-executive directors, ensuring oversight of the Group's financial reporting[124]. - The Company declared an interim dividend of RMB 0.32 per share for the six months ended June 30, 2023[125]. - The total interest of major shareholders in the company exceeds 5% of the nominal value of shares as recorded in the register[111]. - The Company has a Restricted Share Award Scheme for selected employees and directors[107]. Future Outlook - The management team remains optimistic about future market conditions, citing a potential recovery in the real estate sector in the second half of 2023[9]. - The company plans to expand its market presence by developing additional properties in key urban areas, targeting a 10% increase in rental income by the end of 2024[73]. - Future outlook remains positive, with ongoing investments in technology and infrastructure to support growth[147].

Financial Performance - Revenue for the period was RMB 62.04 billion, a decrease from RMB 94.80 billion in the same period last year[2] - Shareholders' profit attributable to the company was RMB 8.06 billion, with core profit after fair value adjustments increasing by 0.6% to RMB 6.59 billion[1] - Gross profit was RMB 13.90 billion, with a gross margin of 22.4%[2] - Total comprehensive income for the period was RMB 9.57 billion, compared to RMB 9.93 billion in the previous year[3] - The company reported a pre-tax profit of RMB 12.37 billion, down from RMB 15.93 billion year-on-year[2] - Basic earnings per share were RMB 1.316, with core basic earnings per share at RMB 1.076[1] - The adjusted profit for the development business was RMB 12,389,203 thousand for the six months ended June 30, 2022, compared to RMB 11,084,545 thousand for the same period in 2023, indicating a decrease of about 11%[14] - Basic and diluted earnings attributable to shareholders for the first half of 2023 were RMB 8,057,952, an increase of 7.7% from RMB 7,480,032 in the same period of 2022[27] Sales and Contracted Sales - Contract sales amounted to RMB 98.52 billion, corresponding to a total sales area of 5.799 million square meters[1] - The group's contracted sales for the first half of 2023 amounted to RMB 98.52 billion, with a total sales area of 5.799 million square meters, resulting in a sales price of RMB 16,987 per square meter[37] - As of June 30, 2023, the group had sold but not yet recognized contracted sales amounting to RMB 24.65 billion, covering approximately 1.57 million square meters, laying a solid foundation for future core profit growth[40] - The total area of properties sold in the first half of 2023 was 598.3 thousand square meters, compared to 383.2 thousand square meters in the same period of 2022[36] Debt and Financial Position - Net debt ratio stood at 57.2%, with cash on hand amounting to RMB 72.43 billion[1] - The average borrowing cost was 4.26%, with an average loan term of 7.19 years[1] - Total liabilities as of June 30, 2023, amounted to RMB 212,900,485, an increase from RMB 205,288,350 as of December 31, 2022, representing a growth of approximately 3.9%[18] - The group’s total borrowings amounted to RMB 207.09 billion, with cash on hand of RMB 72.43 billion, resulting in a net debt ratio of 57.2%[58] - The average borrowing cost for the group is 4.26%, with fixed-rate debt accounting for 33% of total debt[59] Dividends - The board declared an interim dividend of RMB 0.32 per share[1] - The company declared an interim dividend of RMB 2,029,345,000 for the six months ended June 30, 2023, translating to a dividend of RMB 0.32 per share, compared to RMB 0.33 per share in the same period of 2022[26] - The interim dividend will be paid on February 8, 2024, to shareholders listed on January 4, 2024[63] Operational Performance - The operating business generated revenue of RMB 6,332,308 thousand in the first half of 2023, compared to RMB 5,862,558 thousand in the same period of 2022, reflecting an increase of approximately 8%[16] - The rental income exceeded RMB 6 billion in the first half of the year, with ongoing improvements in operational efficiency[32] - The rental income from the group's operational business in the first half of 2023 was RMB 257.66 million, accounting for 5.1% of total revenue, with an occupancy rate of 97.4%[41] - The group achieved a rental income of RMB 5.01 billion from commercial operations, reflecting an 8% year-on-year growth[61] Investment and Land Acquisition - The group’s land reserve totaled 54.89 million square meters as of June 30, 2023, with an average cost of RMB 5,027 per square meter, which is 29.6% of the current signed unit price[53] - The group acquired a total of 2.57 million square meters of new land reserves in the first half of 2023, with an average acquisition cost of RMB 9,744 per square meter[53] - The total land acquisition in the first half of 2023 reached 2,572,847 square meters, with a total attributable area of 1,844,115 square meters[56] Corporate Governance - The company is committed to high standards of corporate governance and has adhered to the corporate governance code, with a noted deviation regarding the roles of the chairman and CEO[66] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim results for the six months ended June 30, 2023[67] - The company has adopted the standard code for securities transactions by directors and confirmed compliance for the six months ended June 30, 2023[68] Future Outlook - The company aims to increase the proportion of profits from non-development businesses to over 50% in the future[33] - The group plans to open approximately six new shopping malls in major cities such as Beijing, Shanghai, and Chongqing in the second half of 2023[62] - The group is expanding its investment properties with several projects scheduled to open between 2023 and 2024, including major developments in cities like Chongqing, Jinan, and Hangzhou[47]

Financial Performance - Longfor Group reported a total revenue of RMB 100 billion for the fiscal year 2022, representing a year-on-year increase of 15%[1]. - The company achieved a net profit of RMB 20 billion, which is a 10% increase compared to the previous year[1]. - The core attributable profit for the year reached RMB 22.5 billion, reflecting stable growth[46]. - Revenue increased by 12.17% to RMB 250.57 billion from RMB 223.38 billion in 2021[175]. - Gross profit decreased by 6.19% to RMB 53.04 billion, down from RMB 56.54 billion[175]. - Profit attributable to shareholders rose by 2.14% to RMB 24.36 billion, compared to RMB 23.85 billion in 2021[175]. - Core net profit, excluding minority interests and valuation gains, was RMB 22.54 billion, a slight increase of 0.45% from RMB 22.44 billion[175]. - The gross profit margin decreased to 21.20% from 25.30% in the previous year[175]. - The net debt-to-equity ratio increased to 58.10% from 46.70% at the end of the previous year[175]. Market Expansion and Strategy - The company plans to launch three new residential projects in the Yangtze River Delta region, aiming for a sales target of RMB 30 billion in 2023[1]. - Longfor Group's market expansion strategy includes entering two new cities in Central China, projected to contribute an additional RMB 8 billion in revenue[1]. - The company has identified potential acquisition targets in the Western China region, with an estimated investment of RMB 10 billion planned for 2023[1]. - The Group's strategic focus includes expanding its presence in key regions such as the Yangtze River Delta and western China[57]. - The company is actively pursuing new developments, with several projects in the planning stage, indicating a robust pipeline for future growth[12][14]. Project Development and Completion - The company has a total of 38 ongoing projects with a combined GFA under development of approximately 2,000,000 sqm[12]. - The completed GFA remaining unsold across various projects is approximately 200,000 sqm, with significant projects in Hefei and Hangzhou[12]. - The company is focusing on residential developments, with several projects in various stages of completion across major cities in China[10]. - The company has a total of 20 ongoing projects with a combined gross floor area (GFA) under development of approximately 1,500,000 square meters[20]. - The company is expanding its market presence with multiple projects in Hefei, Hangzhou, and Ji'nan, indicating a strategic focus on these regions[12][14]. Rental Income and Investment Properties - Recurring income from investment property operation and services businesses amounted to RMB 23.6 billion, representing a year-on-year growth of 25%[46]. - The Group's rental income from Investment Property Operations in 2022 was RMB 11.88 billion, representing a 14.1% increase from the previous year, with shopping malls contributing 78.1% of total rental income[62][64]. - The total operational area of shopping malls reached 7.22 million square meters, with an occupancy rate of 93.9%[62][64]. - The overall rental income growth rate for the Group's shopping malls showed fluctuations, with some locations experiencing declines while others reported significant increases[67][68]. - The rental income for Chengdu Three Thousand Paradise Walk decreased by 21.4% year-on-year, totaling RMB 26,041,000 in 2022, with an occupancy rate of 63.0%[67]. Corporate Governance and Leadership - Mr. Chen Xuping was appointed as CEO on March 1, 2022, and later became Chairman on October 28, 2022[98]. - The Group has a strong leadership team with diverse backgrounds in engineering, finance, and human resources, enhancing its operational capabilities[98][99][101][103]. - The Board currently comprises nine directors, including four executive directors and four independent non-executive directors, ensuring a strong independence element in its composition[116]. - The Company is committed to high standards of corporate governance to enhance performance and corporate value[114]. - The Company has established effective mechanisms to ensure independent views and input are available to the Board, with independent non-executive directors meeting annually without the presence of other directors[116]. Financial Management and Debt Structure - The Group's consolidated borrowings amounted to RMB 208.01 billion, with cash in hand of RMB 72.62 billion, resulting in a net debt to equity ratio of 58.1%[92]. - The average cost of borrowing for the Group was 4.10% per annum, with an average loan maturity of 6.67 years[92]. - The Group aims to maintain a reasonable and safe debt level while adhering to a sound financial management strategy for stable and sustainable development[97]. - The Group has optimized its debt structure, achieving a 98% coverage of foreign exchange swaps on offshore debt, effectively mitigating foreign exchange risks[50]. Sustainability and Social Responsibility - The company has established a new environmental sustainability initiative, committing to reduce carbon emissions by 30% by 2025[1]. - The Group emphasizes the importance of employee development and has adopted a share award scheme to motivate employees[189]. - Donations made by the Group during the year amounted to approximately RMB 204,470,000, compared to RMB 289,002,500 in 2021[187]. - The Group's focus on improving organizational and business efficiency has led to a reduction in overall expenses[80]. Future Outlook - The company plans to complete the Longfor Origin project in Hangzhou by May 2026, with a 60% interest and a GFA under planning of 103,705 sqm[12]. - Approximately 10 shopping malls are expected to open in 2023 in cities such as Beijing, Hangzhou, and Suzhou[96]. - The Group will continue to control land acquisition costs and improve capital efficiency through external cooperation and secondary market acquisitions[94]. - Future developments include projects in Chongqing, with the Chongqing U-City Paradise Walk Phase II having a completed GFA of 164,609 sqm and a 100% ownership interest[38].