Core Viewpoint - Shimao Group reported a total contracted sales amount of approximately RMB 13.523 billion for the six months ending June 30, 2025, with a total contracted sales area of 1.1091 million square meters and an average selling price of RMB 12,192 per square meter [1] Group 1 - The contracted sales amount for June 2025 was approximately RMB 2.321 billion [1] - The contracted sales area for June 2025 was 190,200 square meters [1] - The average selling price for June 2025 was RMB 12,200 per square meter [1]

Group 1 - Hong Kong property stocks experienced a rise in early trading, with China Overseas Land & Investment (03377.HK) increasing by over 13% [1] - Country Garden (02007.HK) and New World Development (01030.HK) both saw gains of over 5% [1] - Other stocks such as Sunac China (01918.HK), R&F Properties (02777.HK), and Shimao Group (00813.HK) also followed the upward trend [1] Group 2 - According to CRIC Property Management statistics, the top 50 property service companies in China added a contract area of approximately 84.47 million square meters in June [1]

Core Viewpoint - Shimao Group is accelerating asset sales to recover funds and alleviate debt, with significant progress in debt restructuring and cash flow improvement [1][4]. Group 1: Asset Sales - Shimao Group announced the sale of a 50% stake and debt in a commercial project in Beijing for 156 million RMB, part of a strategy to focus on core cities and divest non-strategic assets [2][3]. - The company has sold over 10 billion RMB worth of quality assets since late 2021, including the sale of the Shanghai Bund Hotel and Guangzhou Asian Games Village equity, to support debt restructuring and ensure project delivery [3][4]. Group 2: Debt Restructuring - The company initiated a comprehensive restructuring of its offshore debt after a default on a 1 billion USD bond in July 2022, with a plan approved by the Hong Kong court in March 2025 [4][5]. - The restructuring plan aims to relieve approximately 11.5 billion USD of existing offshore debt, significantly reducing the overall debt burden and improving financial health [4][5]. Group 3: Financial Management - Shimao Group has successfully extended domestic loans totaling about 9.3 billion RMB, with some loans extended until 2030, signaling positive developments in financial management [5]. - The company is exploring various financing channels, including asset securitization and supply chain financing, to optimize funding and support project delivery [6]. Group 4: Project Delivery - The company has prioritized project delivery, successfully delivering around 8,300 housing units in 2025, significantly easing delivery pressure [6]. - In the first five months of the year, Shimao Group achieved a contract sales total of approximately 11.202 billion RMB, with a notable reduction in the decline compared to the previous year [7].

世茂集团公告，公司间接全资附属公司卖方与买方、项目公司及担保人于2025年7月3日订立该协议，卖 方同意向买方出售销售股份及销售债权，总代价约为人民币1.56亿元。销售股份相当于项目公司的50% 股权，项目公司为一家物业开发公司并持有该项目，该项目为位于北京的综合商业及商用综合体。于出 售事项完成后，世茂集团将不再于项目公司拥有任何权益。代价将按股权转让款人民币1.5亿元及债权 转让款人民币618.42万元支付。 ...

世茂集团4月合约销售额20.0亿元人民币，1-4月累计合约销售额90.7亿元人民币。 ...

Core Viewpoint - The Hong Kong property stocks are experiencing a strong upward trend, with significant gains observed in various companies within the sector [1] Company Performance - Jin Hui Holdings (09993.HK) has surged over 30% [1] - Ronshine China (03301.HK) has increased nearly 7% [1] - Zhongliang Holdings (02772.HK) has risen nearly 6% [1] - Shimao Group (00813.HK), Greentown China (03900.HK), and Sunac China (01918.HK) have all gained over 4% [1] - Fuli Properties (02777.HK) and Country Garden (02007.HK) have both seen increases of over 3% [1]

Group 1 - Hong Kong property stocks experienced a significant rise at the beginning of trading, with major companies like Ronshine China (03301.HK) and Jin Hui Holdings (09993.HK) both increasing by over 13% [1] - Shimao Group (00813.HK) saw an increase of over 9%, while Sunac China (01918.HK) rose by more than 6% [1] - Other companies such as Zhongliang Holdings (02772.HK) and New World Development Holdings (01030.HK) also recorded gains exceeding 5% [1]

Financial Performance - In 2024, Shimao Group reported a revenue of RMB 59,975 million, a slight increase of 0.9% compared to RMB 59,464 million in 2023[5]. - The company experienced a gross loss of RMB 5,869 million in 2024, compared to a gross profit of RMB 5,848 million in 2023[5]. - The net loss attributable to equity holders was RMB 35,905 million in 2024, compared to a loss of RMB 21,030 million in 2023, indicating a significant increase in losses[5]. - For the fiscal year ending December 31, 2024, the company's total revenue reached RMB 59,975 million, a 0.9% increase from RMB 59,464 million in 2023[28]. - The company reported a total comprehensive loss of RMB 43.67 billion for the year ended December 31, 2024, compared to a total comprehensive loss of RMB 24.80 billion in 2023[200]. - Basic and diluted loss per share for the year was RMB 9.48, compared to RMB 5.55 in the previous year, indicating a significant increase in losses per share[200]. Sales and Contracted Sales - Contracted sales for 2024 reached RMB 34,002 million, with a total contracted sales area of 2.675 million square meters, resulting in an average selling price of RMB 12,710 per square meter[9]. - In 2024, the company achieved contract sales of RMB 34.002 billion, with a total sales area of 2.675 million square meters and an average selling price of RMB 12,710 per square meter[18]. - Property sales accounted for 79.9% of total revenue, amounting to RMB 47,911 million, with a sales area of 3,579,261 square meters[28][30]. Assets and Liabilities - Total assets decreased to RMB 436,429 million in 2024 from RMB 543,250 million in 2023, reflecting a decline of approximately 19.7%[5]. - Non-current assets decreased to RMB 87,417 million in 2024 from RMB 115,518 million in 2023, a decline of about 24.3%[5]. - The company reported a total liability of RMB 433,083 million in 2024, down from RMB 491,999 million in 2023, a reduction of approximately 11.9%[5]. - Total borrowings amounted to approximately RMB 252.051 billion as of December 31, 2024, down from RMB 263.963 billion on December 31, 2023, a reduction of about RMB 11.912 billion[46]. - The group's asset-liability ratio was approximately 57.8% as of December 31, 2024, compared to 48.6% on December 31, 2023[46]. Market Conditions - The real estate market in China is expected to continue adjusting, with a projected 10.6% decline in national real estate development investment in 2024[7]. - The government is expected to implement policies to stabilize the real estate market, which may positively impact the company's future performance[8]. Operational Performance - The property management segment reported annual revenue of RMB 7,895.5 million, with a gross profit of RMB 1,564.3 million and a core net profit attributable to equity holders of RMB 492.4 million[11]. - The hotel segment generated revenue of RMB 2,225 million, down approximately 3.1% from RMB 2,295 million in 2023[29][31]. - The commercial business maintained a stable performance, with a 6% year-on-year increase in foot traffic, although total sales decreased by 5%[13]. - The overall occupancy rate for commercial projects remained close to 90%, while office buildings experienced a decrease in occupancy to 70% due to macroeconomic factors[13]. - The company delivered projects across 49 cities, involving 73 projects and 136 batches in 2024, focusing on quality and timely delivery[17]. Debt and Restructuring - The company successfully restructured approximately USD 11.5 billion in debt, receiving support from 98.75% of participating creditors[10]. - The group is undergoing an overseas debt restructuring process, with a total of 2,079 creditors participating, representing a voting amount of approximately USD 11.5 billion[56]. - The group anticipates that the debt restructuring plan will be completed in the first half of 2025, which will alleviate overall debt scale and pressure[57]. - The company is actively negotiating the extension or restructuring of existing loans with domestic lenders, with the expectation of gradually completing related agreements[59]. Governance and Management - The company has adopted three share incentive plans to recognize and encourage contributions from selected employees, aiming to attract suitable talent for ongoing development[79]. - The company confirms the independence of all independent non-executive directors as per the Hong Kong Stock Exchange listing rules[76]. - The board consists of 8 members, including 3 executive directors, 2 non-executive directors, and 3 independent non-executive directors[117]. - The company has established internal policies to ensure independent viewpoints and opinions are available to the board, including the roles of various committees[116]. - The company has a dual-currency loan agreement for USD 290 million and HKD 2.6145 billion, also with a 48-month term, established on September 14, 2018[109]. Future Outlook - The company plans to focus on adjusting its operational structure and exploring new market opportunities in 2025[20][25]. - The planned delivery volume for 2025 will be less than half of that in 2024, significantly reducing delivery pressure and funding requirements[59]. - The company aims to enhance competitiveness through digital marketing innovation and the development of popular dining products in 2025[23].

Financial Performance - The group's revenue for the year was approximately RMB 59.975 billion, reflecting a slight increase of about 0.9% year-on-year [3]. - The hotel operations, commercial operations, property management, and other income totaled approximately RMB 12.064 billion, representing a year-on-year decline of 3.3% [3]. - The group reported a gross loss of approximately RMB 5.869 billion, resulting in a gross margin of -9.8% [3]. - The annual loss attributable to equity holders of the company was approximately RMB 35.905 billion [3]. - The total revenue for the year ended December 31, 2024, was RMB 59.98 billion, compared to RMB 59.46 billion for the year ended December 31, 2023 [44]. - The group reported a total operating loss of RMB 29,328,187 thousand for 2024, compared to a loss of RMB 13,249,715 thousand in 2023, indicating a significant increase in losses [66]. - The group recorded a net loss of RMB 43,685,648 thousand for the year ended December 31, 2024, compared to a net loss of RMB 23,599,417 thousand in 2023, indicating a worsening financial position [66]. - The total comprehensive loss for the year 2024 amounted to RMB 43,674,965, compared to RMB 24,800,704 in 2023, representing an increase of approximately 76% [46]. Revenue Breakdown - The group achieved property sales revenue of RMB 47.911 billion, accounting for 79.9% of total revenue, with a recognized sales area of 3.579 million square meters [5]. - Property sales accounted for 79.9% of total revenue, while hotel operations, commercial operations, property management, and other businesses contributed 20.1% [17]. - In 2024, the group launched new hotel projects, including Baoji Ruyi Yinxiang Hotel and Dali Xinhong Hotel, enhancing its market presence [12]. - Property sales revenue reached RMB 47,911,418 thousand in 2024, compared to RMB 46,985,856 thousand in 2023, indicating an increase of about 2.0% [65]. Costs and Expenses - Sales costs increased by 22.8% to approximately RMB 65,844 million in 2024 from RMB 53,616 million in 2023, primarily due to increased property impairment provisions [25]. - The gross margin for 2024 is approximately -9.8%, a significant decline from 9.8% in 2023, attributed to rising land and construction costs and increased property impairment provisions [26]. - The group’s total expenses for the year ended December 31, 2024, were RMB 72,881,471,000, compared to RMB 62,986,350,000 in 2023 [86]. - The group recognized impairment losses on properties held for sale amounting to RMB 9,653,825,000 during the year ended December 31, 2024 [88]. Assets and Liabilities - As of December 31, 2024, the group's total assets amounted to RMB 436,428,997,000, a decrease from RMB 543,250,395,000 in 2023 [72][73]. - The company's total liabilities decreased from RMB 491,999,365 in 2023 to RMB 433,083,061 in 2024, a reduction of about 11.9% [51]. - The asset-liability ratio was approximately 57.8% as of December 31, 2024, compared to 48.6% as of December 31, 2023 [36]. - The group had capital and property development commitments of RMB 27.61 billion as of December 31, 2024 [41]. Cash Flow and Financing - As of December 31, 2024, the group's cash and bank balances totaled approximately RMB 15.75 billion, a decrease of approximately RMB 5.68 billion from RMB 21.43 billion as of December 31, 2023 [36]. - The total borrowings amounted to approximately RMB 252.05 billion as of December 31, 2024, down from approximately RMB 263.96 billion as of December 31, 2023 [36]. - The group anticipates that its operating cash flow will be sufficient to meet its financial obligations due within the next 12 months [58]. - The group is actively seeking alternative financing and loans to meet its existing financial obligations and future capital expenditures [57]. Debt Restructuring - The group has proposed a debt restructuring plan that received approval from approximately 98.75% of participating creditors and is expected to be completed by 2025 [57]. - The group has significant uncertainty regarding its ability to continue as a going concern due to liquidity pressures and the need for successful debt restructuring [106]. - Management has indicated that plans for debt restructuring and alternative financing are at various stages, with most not yet finalized with creditors [107]. Market Conditions - The overall contracted sales of the group continue to decline amid a shrinking real estate market in mainland China [58]. - The average room rate for luxury hotels in China dropped by 6% year-on-year, while RevPAR for high-end hotels fell by 7% [11]. - The overall occupancy rate for managed commercial projects was close to 90%, remaining stable compared to the previous year [14]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has confirmed compliance for the fiscal year ending December 31, 2024 [113]. - The board of directors consists of three executive directors, two non-executive directors, and three independent non-executive directors, ensuring sufficient power balance [115]. - The chairman and CEO roles are held by the same individual, which the company believes enhances operational efficiency [115].

Sales Performance - In the first half of 2024, Shimao Group achieved a contract sales amount of RMB 17.09 billion, with a total sales area of 1.313 million square meters[5]. - The company delivered approximately 25,000 housing units across 41 projects in 34 cities during the first half of 2024[6]. - Property sales revenue amounted to RMB 23.17 billion, accounting for 79.4% of total revenue, down 5.0% year-on-year; the sales area was 1.508 million square meters, a decline of 25.4%[11]. - The total area sold in the first half of 2024 was 1,508,249 square meters, compared to 2,021,593 square meters in the same period of 2023[21]. - Total revenue for the first half of 2024 reached RMB 29.19 billion, a decrease of 3.9% compared to the same period in 2023[11]. Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 29,194,689 thousand, a decrease of 3.9% from RMB 30,393,587 thousand in the same period of 2023[72]. - Gross profit for the period was RMB 14,859 thousand, significantly down from RMB 3,124,334 thousand in the previous year, indicating a drastic decline in profitability[72]. - Operating loss increased to RMB 14,232,355 thousand from RMB 1,787,968 thousand year-on-year, reflecting a worsening operational performance[72]. - The company's total assets decreased to RMB 485,584,590 thousand as of June 30, 2024, down from RMB 543,250,395 thousand at the end of 2023[75]. - The net loss attributable to equity holders of the company was RMB 22,667,515 thousand, compared to RMB 12,057,786 thousand in the prior year, indicating a significant increase in losses[73]. Debt and Restructuring - Shimao Group is actively advancing debt restructuring efforts, particularly for its overseas debts, with a detailed restructuring plan launched on March 25, 2024[6]. - The company is actively pursuing a proposed restructuring of its offshore debt, which includes approximately USD 6.8 billion in senior notes and various loans totaling approximately USD 2.1 billion and HKD 20.4 billion[84]. - The company has applied for loans totaling approximately RMB 504 million, of which RMB 139 million has been approved, as part of efforts to secure financing for ongoing projects[84]. - As of June 30, 2024, total borrowings were approximately RMB 256.603 billion, a decrease from RMB 263.963 billion as of December 31, 2023[35]. - The asset-to-liability ratio increased to approximately 52.8% as of June 30, 2024, compared to 48.6% as of December 31, 2023[35]. Operational Strategy - The group is focusing on internal asset revitalization and maximizing asset value by halting land acquisitions and enhancing existing projects[5]. - The company emphasizes risk prevention and management to ensure stable operations amid ongoing market challenges[5]. - Shimao Group aims to enhance operational efficiency and product quality to meet its annual business targets[6]. - The company plans to focus on enhancing customer-centric core competitiveness and improving operational agility in the second half of 2024[9]. - The company will continue to pause land acquisitions while optimizing existing asset management to maximize asset value[14]. Property Management and Hotel Operations - Shimao Services reported revenue of RMB 4.032 billion in the first half of 2024, with a gross profit of RMB 812 million, and a net profit of RMB 211 million, marking a 5.7% year-on-year increase in property management service revenue[7]. - The hotel segment generated total revenue of RMB 1.07 billion in the first half of 2024, reflecting a 1.4% year-on-year growth, with RevPAR increasing by 2.1%[7]. - The overall occupancy rate for managed commercial projects was close to 90%, remaining stable compared to the end of the previous year[17]. - The overall occupancy rate for managed office buildings was below 75%, a decrease of 5-6 percentage points compared to the end of the previous year[17]. - Hotel operating revenue increased by 1.4% to approximately RMB 1.074 billion in the first half of 2024, compared to RMB 1.059 billion in the same period of 2023[22]. Employee and Shareholder Information - As of June 30, 2024, the group employed 49,993 employees, with a total salary expenditure of approximately RMB 2.557 billion[39]. - The group has adopted three share incentive plans to recognize and encourage contributions from selected employees, with a maximum number of shares granted under the 2011 plan being 69,319,016 shares, representing 2% of the issued shares at the adoption date[44]. - The company’s major shareholder, Xu Rongmao, holds 2,422,840,586 shares, representing approximately 63.795% of the issued share capital[54]. - The company did not recommend an interim dividend for the six months ended June 30, 2024, consistent with the previous year[70]. - The company has a dedicated remuneration committee to evaluate the performance and compensation of directors and senior management[65]. Legal and Compliance Matters - The company is in communication with auditors regarding uncertainties related to going concern, primarily influenced by the current state of the Chinese real estate market and the progress of overseas debt restructuring[42]. - The company has ongoing legal proceedings related to comprehensive borrowing or financial guarantees, but management believes these will not have a significant adverse impact on the company's operations or financial condition[145]. - The company has reached preliminary agreement with auditors on accounting treatment for financing arrangements with third-party trust companies, which is expected to eliminate the non-standard audit opinion for the year ending December 31, 2024[41]. - The group has communicated recent operational conditions and debt restructuring progress to auditors, who are currently unable to provide a definitive opinion[42]. - The company has provided mortgage financing guarantees amounting to RMB 36,479,599 thousand as of June 30, 2024, down from RMB 39,635,718 thousand as of December 31, 2023, indicating a decrease of approximately 5.5%[144].