Financial Performance - For the year ended December 31, 2022, the total revenue of Shimao Group was RMB 63,040.148 million, a significant decrease from RMB 107,797.269 million in 2021, representing a decline of approximately 41.5%[13] - The group reported a gross profit of RMB 5,281.374 million, compared to RMB 39,667.267 million in 2021, indicating a substantial drop in profitability[13] - The net loss attributable to equity holders of the company was RMB 21,492.478 million, compared to a loss of RMB 27,092.790 million in 2021[13] - The operating loss for the year was RMB 2,300.012 million, a notable improvement from a loss of RMB 18,515.859 million in the previous year[13] - The group's hotel revenue for 2022 was RMB 1.75 billion, down 17.5% from RMB 2.12 billion in 2021[53] - The company's operating revenue decreased by approximately 7.1% from RMB 2.033 billion in 2021 to RMB 1.889 billion in 2022, primarily due to a sluggish consumer market and overall lack of confidence among market participants[90] - The core business loss attributable to shareholders decreased to approximately RMB 12.825 billion in 2022 from RMB 23.251 billion in 2021, resulting in a core business loss rate of 32.3%[118] - The gross profit margin for the year ended December 31, 2022, was approximately 8.4%, up from 2.4% in 2021, attributed to discounts on property sales and high material and labor costs[92] - The group achieved a gross profit margin of 22.5% in 2022, maintaining a leading position in the industry[79] Sales and Contracted Areas - The total contracted sales for 2022 amounted to RMB 86.52 billion, with a total contracted sales area of 5.374 million square meters[17] - Property sales accounted for 79.7% of total revenue, while hotel operations, commercial operations, property management, and other businesses contributed 20.3%[56] Assets and Liabilities - The total assets of the group as of December 31, 2022, were RMB 616,210.939 million, a decrease from RMB 628,104.069 million in 2021[13] - The group's asset-liability ratio, excluding advance receipts, was approximately 83.8% as of December 31, 2022, compared to 77.4% in 2021[31] - The net debt ratio increased to approximately 302.2% as of December 31, 2022, compared to 156.0% as of December 31, 2021[98] - Total borrowings increased by 18.2% from approximately RMB 231.76 billion on December 31, 2021, to approximately RMB 274.01 billion on December 31, 2022, primarily due to the real estate industry's continued decline and the impact of COVID-19[120] Operational Strategy and Future Outlook - The group plans to focus on cash flow management, profitability enhancement, and market development in 2023[4] - The outlook for 2023 suggests a moderate recovery in the real estate sector, although consumer confidence remains fragile[16] - The group aims to transition towards a light-asset model and enhance its commercial management capabilities[2] - The group plans to focus on a dual-driven development model of "real estate development and sales + commercial operation and management" to enhance its business management capabilities[78] - The group aims to anchor its "Big Airplane" development strategy and prepare for strategic transformation with a focus on quality improvement and value chain reshaping[83] Construction and Development - The total area under construction as of the end of 2022 was approximately 38.14 million square meters, with a planned completion area of about 6 million square meters for 2023[48] - The total area under management increased to 261.6 million square meters, up 8.8% year-on-year, while the contracted area reached 341.3 million square meters, up 10.8% year-on-year[79] Financial Adjustments and Provisions - The group recorded a total fair value loss of approximately RMB 631 million in 2022, compared to RMB 602 million in 2021, primarily due to the decline in fair value of the Hangzhou Jianqiao investment property project[64] - The group made an additional provision for expected credit losses of approximately RMB 319 million due to various adverse factors in the macroeconomic, industry, and financing environment[66] - The loss attributable to joint ventures and associates was approximately RMB 132 million, a decrease of about RMB 301 million compared to the previous year, mainly due to a reduction in property impairment provisions[67] Share Incentive Plans - The total number of shares granted under the 2011 Shimao Group Share Incentive Plan was 8,709,353 shares, with 60% vesting after 12 months and 40% after 24 months from the grant date[138] - The maximum number of shares that can be granted under the 2021 Shimao Group Share Incentive Plan is 0.3% of the issued Shimao Service Shares, totaling 7,091,919 shares[146] - A total of 6,865,821 shares of Shimao Services were granted under the 2021 Shimao Group Share Incentive Plan[149] - The total number of shares granted to the top five highest-paid individuals, excluding directors, was 3,630,319 shares[152] - The total number of shares granted to directors on November 16, 2022, was 386,786 shares[152] Shareholder Information - The largest shareholder, Xu Rongmao, holds 2,422,840,586 shares, representing approximately 63.795% of the issued share capital[178] - As of the report date, the total number of shares held by Xu Rongmao under controlled entities is 1,593,276,680, representing approximately 64.553% of the issued share capital[181] Compliance and Governance - The company appointed Zhonghui Anda CPA Limited as the new auditor on March 24, 2022, following the resignation of PwC[194] - The company has confirmed compliance with the non-competition agreement as of December 31, 2022, involving the group and its close associates[191]

Debt Restructuring and Financial Obligations - The group is actively pursuing a proposed restructuring of its offshore debt, which includes approximately $6.8 billion in US dollar-denominated senior notes and various loans totaling about $2.1 billion and HK$20.9 billion from offshore banks and financial institutions[1]. - The board is confident in obtaining creditor support to complete the proposed restructuring[1]. - The group is seeking alternative financing to meet existing financial obligations and future operational and capital expenditures[2]. - The group has successfully negotiated extensions for long-term bonds and medium-term notes totaling approximately RMB 12.1 billion and RMB 5.4 billion, originally due in 2023 and 2024, respectively[2]. - The company issued a total of USD 450,000,000 in senior notes due on July 3, 2022, with a fixed interest rate of 4.75%[100]. - The total amount of medium-term notes issued by the company was RMB 1,000,000,000, due on October 21, 2022, with a fixed interest rate of 4.24%[102]. - The company issued USD 1 billion senior notes with a fixed interest rate of 6.125%, maturing on February 21, 2024[105]. - The company issued a total of RMB 2.8 billion long-term bonds with a fixed interest rate of 3.90%, maturing on March 25, 2025[112]. - The company issued HKD 3.11 billion (approximately RMB 2.54 billion) convertible bonds with a fixed interest rate of 2.25%, maturing on October 31, 2022[113]. - The company extended the maturity date of the third phase long-term bonds to May 22, 2023, with a fixed interest rate of 4.15%[104]. - The company redeemed RMB 50 million of the second phase private placement notes and agreed to extend the notes[112]. - The company has issued a total of RMB 970 million medium-term notes with a fixed interest rate of 5.15%, maturing on March 16, 2023[107]. - The company had outstanding principal amounts of USD 399,000,000 and HKD 2,486,050,000 under a multi-currency loan agreement as of June 30, 2022, with portions overdue[96]. Financial Performance - The group reported a loss attributable to equity holders of approximately RMB 9.8 billion for the six months ended June 30, 2022[20]. - For the six months ended June 30, 2022, the total revenue was RMB 34,355,924 thousand, a decrease from RMB 73,401,274 thousand for the same period in 2021, representing a decline of approximately 53%[43]. - Property sales accounted for RMB 28,233,677 thousand, significantly down from RMB 66,521,433 thousand in the previous year, indicating a decrease of about 57%[43]. - The company reported a total loss of RMB 9,268,158 for the six months ended June 30, 2022, compared to a profit of RMB 9,477,850 for the same period in 2021[52]. - The operating profit for the six months ended June 30, 2022, was RMB 1,991,643, compared to RMB 15,828,356 for the same period in 2021, indicating a decline in profitability[52]. - The company reported a net loss attributable to equity holders of RMB (9,792,344) thousand for the six months ended June 30, 2022, compared to a profit of RMB 6,282,755 thousand in the same period of 2021, representing a decline of approximately 255%[147]. - Basic loss per share for the six months ended June 30, 2022, was RMB (258.5) compared to earnings of RMB 178.0 per share in the same period of 2021[147]. - Total financing costs for the six months ended June 30, 2022, amounted to RMB 9,781,107 thousand, a substantial increase from RMB 919,254 thousand in the same period of 2021[135]. - The company did not declare any interim dividend for the six months ended June 30, 2022, compared to RMB 5,253,306 thousand in dividends declared for the same period in 2021[142][144]. Asset and Liability Management - As of June 30, 2022, the group's total borrowings amounted to approximately RMB 256 billion, with about RMB 160.3 billion due within the next 12 months[20]. - The total cash (including cash and cash equivalents and restricted cash) was approximately RMB 47.8 billion as of June 30, 2022[20]. - The group had approximately RMB 39 billion of borrowings that were not repaid by the scheduled repayment dates as of June 30, 2022[20]. - As of the report date, the group had approximately RMB 102.4 billion of borrowings that were not repaid by the scheduled repayment dates[20]. - The total assets as of June 30, 2022, were RMB 624,255,200, while total liabilities were RMB 529,178,540[54]. - The company’s total equity attributable to shareholders was not explicitly stated but can be inferred from total assets and liabilities[58]. - The company’s cash and cash equivalents included in current assets were RMB 85,606,940,000 as of June 30, 2022, compared to RMB 66,056,509,000 as of December 31, 2021[67]. - The company provided mortgage financing guarantees amounting to RMB 38,602,678 thousand as of June 30, 2022, an increase from RMB 29,373,762 thousand as of December 31, 2021[150]. - The company reported a net exchange loss of RMB 4,661,444 thousand for the six months ended June 30, 2022, with no exchange loss reported in the same period of 2021[135]. Operational Strategy and Market Conditions - The group aims to accelerate property sales as part of its business strategy plan[2]. - The real estate market continued its downward trend in the first half of 2022, with significant declines in real estate development investment and commodity housing sales, posing substantial challenges to the company's stable development and normal operations[168]. - The company aims to enhance quality and efficiency, focusing on value chain restructuring as a core objective to prepare for strategic transformation[168]. - The company adjusted its supply strategy in response to market fluctuations, postponing or canceling the supply of certain homogeneous products[182]. - The company is actively pursuing debt restructuring and communication with creditors to mitigate financial risks and ensure smooth transitions in domestic and foreign financing[1]. - The company aims to enhance operational capabilities and improve business quality through strategic, operational, organizational, and talent development initiatives[172]. - The company is committed to social responsibility, contributing to pandemic control efforts and promoting sustainable development through green building initiatives[175]. Legal and Compliance Matters - The group is involved in multiple litigation and arbitration cases, indicating significant uncertainty that may affect its ability to continue as a going concern[20]. - The group is confident in reaching solutions for ongoing litigation that currently lacks clear outcomes[2]. - The company is actively seeking various ways to resolve ongoing legal disputes related to comprehensive borrowing or financial guarantees, believing these will not significantly impact current operating performance, cash flow, or financial condition[152]. Revenue and Sales Performance - In the first half of 2022, the company achieved a contract sales amount of RMB 43.77 billion, with a total contracted sales area of 2.709 million square meters[181]. - The company's revenue for the first half of 2022 reached RMB 34.36 billion, with property sales revenue accounting for 82.2% at RMB 28.23 billion, and the recognized sales area was 2.574 million square meters[180]. - The property management segment, Shimao Services, reported revenue of RMB 426.57 million, a year-on-year increase of 12.9%, with managed construction area up 46.2% to 255.9 million square meters[172]. - The property services segment achieved revenue of RMB 4,265.7 million, representing a year-on-year increase of 12.9%, with managed building area up 46.2% to 255.9 million square meters[186]. Asset Disposals and Acquisitions - The group disposed of several assets, including land in Huangpu Road, Shanghai, and the Guangzhou Asian Games City project, to alleviate financial difficulties, generating a net cash inflow of approximately RMB 4.94 billion from these sales[190]. - The total consideration for the assets sold amounted to RMB 5,391,180,000, with a net gain from the sale of assets of RMB 3,402,931,000[160]. - The identifiable net assets sold amounted to RMB 1,988,249,000, with non-controlling interests valued at RMB 567,348,000[160]. - The group completed acquisitions of subsidiary interests totaling approximately RMB 7.997 billion, with non-controlling interests decreasing by about RMB 8.280 billion during the period[192]. - The company agreed to sell all equity interests in two non-wholly owned subsidiaries and two joint ventures for a net consideration of approximately RMB 3,316 million, completed in September 2022[200]. - The company sold all equity interests in another non-wholly owned subsidiary for a total consideration of RMB 1,750 million, completed in October 2022[200].

Financial Performance - In 2021, the total revenue from diversified businesses, including property management, commercial operations, and hotel management, was RMB 13.31 billion, accounting for 12.3% of total revenue, representing a growth of 44.3% compared to 2020[9]. - The company reported a net loss of RMB 28.38 billion for the year, compared to a profit of RMB 19.46 billion in 2020[19]. - In 2021, the company's revenue was approximately RMB 107.8 billion, a decrease of 20.4% from RMB 135.4 billion in 2020, primarily due to slower completion progress[36]. - The net loss attributable to shareholders was approximately RMB 270.93 billion in 2021, a significant decrease from a profit of RMB 126.28 billion in 2020[92]. - The group's core business profit declined to a loss of approximately RMB 232.51 billion in 2021, down from a profit of RMB 122.83 billion in 2020, resulting in a core business profit margin of negative 32.4%[93]. Assets and Liabilities - The company's total assets as of 2021 were RMB 628.10 billion, while total liabilities were RMB 514.10 billion, resulting in a net asset value of RMB 113.99 billion[19]. - The net debt ratio increased significantly to approximately 156.0% as of December 31, 2021, compared to 51.8% at the end of 2020[72]. - The cash-to-short-term debt ratio dropped to 0.21 as of December 31, 2021, down from 1.16 at the end of 2020[73]. - The group's asset-liability ratio, excluding advance receipts, increased to approximately 77.4% as of December 31, 2021, compared to 68.3% at the end of 2020[96]. - The total borrowings increased from approximately RMB 1,451.43 billion in 2020 to approximately RMB 2,317.59 billion in 2021, an increase of about 59.7%[97]. Revenue Breakdown - Property sales accounted for 87.7% of total revenue in 2021, down from 93.2% in 2020, while hotel operations, commercial operations, property management, and other businesses contributed 12.3%, up from 6.8%[36]. - The total contracted sales amount for 2021 was RMB 269.11 billion, with a total contracted sales area of 15.286 million square meters and an average selling price of RMB 17,605 per square meter[14]. - The total property sales area for 2021 was 6,400,923 square meters, generating revenue of RMB 94,488 million, a decrease from 2020's revenue of RMB 126,133 million[60]. - The commercial operations revenue increased by approximately 32.2% to RMB 2.03 billion in 2021, driven by the openings of Chengdu Shimao Plaza and Xiamen Jimei Shimao Plaza[42]. - Hotel operating revenue increased approximately 46.2% from RMB 1,447 million in 2020 to RMB 2,116 million in 2021, driven by the recovery of the Chinese economy and tourism[61]. Operational Adjustments - The company adjusted its supply rhythm in response to market trends, reducing inventory pressure amid a cooling market in the second half of 2021[21]. - The company aims to continue deepening its presence in key strategic areas such as the Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta[15]. - The company plans to continue expanding its market presence and enhance its service capabilities, focusing on high-potential sectors such as schools and hospitals[31]. - The company is committed to a strategy of "light and heavy assets" development, emphasizing refined operations and professional management to accelerate the growth of its light asset commercial management business[22]. - The company will optimize its management structure in 2022 to enhance operational efficiency and focus on product quality and innovation[35]. Shareholder and Incentive Plans - The company issued a total of 120,134,424 shares as part of a cash dividend option, amounting to approximately HKD 1,675,635,000[121]. - The group has adopted three share incentive plans to recognize and encourage contributions from selected employees, aiming to attract suitable talent for ongoing development[130]. - The total number of shares awarded to other employees over the past three years reached 6,639,205, with 5,037,430 shares granted in the most recent year[134]. - The maximum number of shares that can be granted under the 2011 Shimao Group Share Incentive Plan is 2% of the issued shares at the adoption date, equating to 69,319,016 shares[142]. - The maximum number of shares that can be granted under the 2021 Shimao Group Share Incentive Plan is 0.3% of the issued Shimao Services shares, totaling 7,091,919 shares[148]. Donations and Social Responsibility - The company has cumulatively donated over RMB 1.75 billion to public welfare projects, benefiting over 22 million people[11]. - The company aims to strengthen its digital service capabilities through its property management subsidiary, Shimao Services, which focuses on comprehensive property services and urban services[51]. Market Conditions and Challenges - The overall sales and cash collection pressure increased in the second half of 2021 due to changes in the market environment, leading to a contraction in industry investment[56]. - Financial asset impairment provisions increased by 802.9% to approximately RMB 4,360 million, reflecting adverse macroeconomic conditions[67]. - The impairment loss on goodwill was primarily due to the overall economic slowdown and underperformance in the real estate sector, leading to a cautious assessment of acquired companies[88].

Financial Performance - Revenue for the first half of 2023 decreased by 11.5% to RMB 30.394 billion, compared to RMB 34.356 billion in the same period of 2022[4]. - The contracted sales amount for the first half of 2023 was RMB 28.07 billion, with a contracted sales area of 1.868 million square meters[6]. - Property sales revenue was RMB 24.39 billion, accounting for 80.3% of total revenue, down 13.6% year-on-year[5]. - The core business loss attributable to shareholders was RMB 7.325 billion, an increase of approximately RMB 1.796 billion (about 32.5%) compared to the same period in 2022[4]. - For the six months ended June 30, 2023, the company reported a loss attributable to equity holders of approximately RMB 12.1 billion, an increase from RMB 9.79 billion for the same period in 2022[84]. - The loss for the period before tax was approximately RMB 10.73 billion, compared to RMB 7.54 billion for the same period in 2022[91]. - The company reported a total comprehensive loss of RMB 11,591,508,000 for the period, compared to a loss of RMB 9,299,596,000 in the previous period, indicating an increase in losses[93]. - The loss attributable to equity holders of the company was RMB 12,057,786,000, compared to a loss of RMB 9,792,344,000 in the previous period, reflecting a significant decline in profitability[93]. - Basic loss per share for the six months ended June 30, 2023, was RMB (3.18), compared to RMB (2.59) for the same period in 2022[125]. Hotel Operations - The hotel segment achieved total revenue of RMB 1.06 billion in the first half of 2023, representing a year-on-year growth of 43.5%[12]. - The average revenue per available room (RevPAR) in the hotel segment increased by 46% year-on-year[12]. - Hotel operating revenue increased approximately 43.5% to RMB 1.059 billion in the first half of 2023, up from RMB 738 million in the same period of 2022[27][28]. - Hotel operating income increased to RMB 1,058,595,000 for the six months ended June 30, 2023, compared to RMB 738,464,000 in the same period of 2022, reflecting a growth of approximately 43.4%[132]. Debt and Financing - The net debt ratio as of June 30, 2023, was approximately 372.5%, up from 302.2% on December 31, 2022[36]. - The company is actively pursuing the restructuring of its offshore debt, including approximately USD 6.8 billion in senior notes and various loans from foreign banks totaling approximately USD 2.1 billion and HKD 20.9 billion[74]. - The company aims to seek alternative financing and loans to meet its existing financial obligations and future operational and capital expenditures[74]. - The company has successfully negotiated the extension of long-term bonds and medium-term notes totaling RMB 121 billion and RMB 54 billion, originally maturing in 2023 and 2024, respectively[100]. - The total amount of secured borrowings as of June 30, 2023, is approximately RMB 238.49 billion, secured by properties, equipment, and restricted cash[63]. Assets and Liabilities - As of June 30, 2023, the group's total assets amount to RMB 577.97 billion, a decrease from RMB 616.21 billion as of December 31, 2022[68]. - The group's total liabilities as of June 30, 2023, are RMB 511.73 billion, down from RMB 536.71 billion as of December 31, 2022[69]. - The total equity attributable to the company's shareholders as of June 30, 2023, is RMB 66.25 billion, a decrease from RMB 79.51 billion as of December 31, 2022[69]. - The company's total borrowings amounted to approximately RMB 275.2 billion, with RMB 181.9 billion due within the next 12 months[74]. - The company's asset-liability ratio, excluding prepayments, was approximately 85.8% as of June 30, 2023, compared to 83.8% as of December 31, 2022[86]. Operational Strategy - The company will continue to adopt a cautious operational strategy, pausing land acquisitions and enhancing management of existing projects[1]. - The group maintains a cautious operating strategy and continues to suspend land acquisitions[40]. - The company is focusing on accelerating property sales as part of its strategic plan to alleviate liquidity pressure and improve financial conditions[100]. Employee and Governance - The group employed 52,518 employees as of June 30, 2023, with total compensation amounting to approximately RMB 2.83 billion[65]. - The company has implemented employee training programs to enhance skills and professional knowledge[65]. - The company has been compliant with the corporate governance code as of June 30, 2023, as confirmed by all directors[153]. - The board of directors includes four executive directors and three independent non-executive directors[168]. - The company is led by Vice Chairman and President Xu Shitan[168]. Other Financial Metrics - The gross profit increased by 5.4% to RMB 3.124 billion, with a gross profit margin of 10.3%[4]. - The gross profit margin for the group was approximately 10.3%, compared to 8.6% in the same period of 2022, showing improvement despite revenue decline[53]. - Administrative expenses decreased by 13.3% to approximately RMB 2.293 billion in the first half of 2023, compared to RMB 2.645 billion in the same period of 2022[31]. - Marketing and promotional expenses decreased by 55.8% to approximately RMB 694 million, aligning with the trend of declining contract sales[54]. - The current tax expense for the six months ended June 30, 2023, was RMB 560,567, significantly lower than RMB 1,520,567 for the same period in 2022, indicating a decrease of 63.1%[145].

Revenue Performance - Total revenue for the year ended December 31, 2022, was RMB 63.04 billion, down from RMB 107.80 billion in 2021[1] - The group's total revenue for 2022 was RMB 1.75 billion, a decline of 17.5% compared to 2021[51] - The revenue from hotel operations, commercial operations, property management, and other businesses was RMB 12.78 billion, a year-on-year decrease of 4.0%[25] - The group's revenue for the year ended December 31, 2022, was approximately RMB 63.04 billion, a decrease of 41.5% compared to RMB 107.80 billion in 2021, primarily due to slower completion progress[42] - The total revenue for the year reached RMB 107,797,269,000, a significant decrease compared to the previous year's figures[113] Property Sales - Property sales decreased by 46.8% from RMB 94.49 billion in 2021 to RMB 50.26 billion in 2022[1] - The contracted sales amount for 2022 reached RMB 86.52 billion, with a total contracted sales area of 5.374 million square meters[31] - Property sales for the year ended December 31, 2022, were RMB 50.26 billion, a decrease of approximately 46.8% compared to RMB 94.49 billion in 2021[92] - In 2022, the company's commercial project sales (excluding the impact of new energy vehicles) declined by 21% year-on-year, with foot traffic down 24% and occupancy rates decreasing by approximately 4 percentage points[46] Financial Performance - The net loss attributable to shareholders decreased from RMB 27.09 billion in 2021 to RMB 21.49 billion in 2022, primarily due to increased gross profit and other income from the sale of subsidiaries[61] - The core business loss attributable to shareholders decreased to approximately RMB 12.825 billion in 2022 from RMB 23.251 billion in 2021, with a core business loss rate of 32.3%[55] - The company reported a net loss of RMB 20,659.31 million for the year, an improvement of 27.5% compared to a net loss of RMB 28,376.88 million in 2021[70] - The group recorded a loss attributable to equity holders of approximately RMB 21.5 billion for the year ended December 31, 2022[105] - The company reported a significant operating loss of RMB 18,515,859,000, highlighting operational difficulties[113] Costs and Expenses - Selling costs decreased by 45.1% from RMB 105.18 billion in 2021 to approximately RMB 57.76 billion in 2022, consistent with the revenue decline[5] - Administrative expenses decreased by 4.7% from RMB 6.00 billion in 2021 to approximately RMB 5.72 billion in 2022[11] - The total cost of properties sold and other expenses for the year ended December 31, 2022, was RMB 68,270,574, a decrease of 45.7% from RMB 125,843,874 in 2021[149] - Financing costs for the year amounted to RMB 15,509,967, significantly higher than RMB 5,939,042 in 2021, indicating a rise in financial expenses[150] Assets and Liabilities - Total liabilities as of December 31, 2022, were RMB 536.71 billion, compared to RMB 514.10 billion in the previous year[99] - The net debt ratio as of December 31, 2022, was approximately 302.2%, up from 156.0% in 2021[56] - The total borrowings increased by 18.2% to approximately RMB 274.007 billion as of December 31, 2022, due to the ongoing decline in the real estate industry and the impact of COVID-19[67] - The asset-liability ratio, excluding advance receipts, was approximately 83.8% as of December 31, 2022, compared to 77.4% in 2021[64] Operational Strategy - The company has adjusted its operational strategy by suspending land acquisitions and focusing on the fine management of existing projects[32] - The company aims to enhance operational efficiency and value chain restructuring as part of its strategic transformation[40] - Shimao Group will focus on cash flow management, profitability enhancement, market development, and digital capabilities in 2023[48] Future Outlook - The real estate market in China is expected to experience a moderate recovery in 2023, although significant pressure remains on the industry[40] - The company plans to complete approximately 6 million square meters of construction area in 2023, with a total construction area of about 34.5 million square meters[28] - The group has developed a business strategy focused on accelerating property sales, which is expected to provide sufficient financial resources for ongoing operations and to meet financial obligations within the next twelve months[107] Dividends and Shareholder Returns - The board of directors did not recommend the distribution of a final dividend for the year ended December 31, 2022[25] - The company did not recommend a final dividend for the year ended December 31, 2022, consistent with the previous year[131] Debt Restructuring - The group is actively pursuing a restructuring of its offshore debt, which includes approximately $6.8 billion in USD-denominated senior notes and various loans totaling about $2.1 billion and HK$20.9 billion from offshore banks and financial institutions[107] - The company is currently working on a restructuring plan and has sent proposals to the advisory committee, aiming to narrow differences in economic terms[161] - The company has agreed to extend the maturity of domestic long-term bonds totaling RMB 14.35 billion to 2028, indicating a restructuring of its debt obligations[160]

Financial Performance - Revenue decreased by 53.2% to RMB 34.356 billion compared to RMB 73.401 billion in the first half of 2021[3]. - The gross profit dropped by 85.9% to RMB 2.965 billion, resulting in a gross profit margin of 8.6%[3]. - The core business loss attributable to shareholders was RMB 5.529 billion, a decline of approximately 189.2% compared to a profit of RMB 6.199 billion in the same period of 2021[3]. - The profit attributable to shareholders decreased from approximately RMB 6.283 billion in the first half of 2021 to a loss of approximately RMB 9.792 billion in the first half of 2022, primarily due to a reduction in revenue and gross profit contribution[45]. - The company reported a total comprehensive loss of RMB (9,299,596) thousand for the period, compared to a comprehensive income of RMB 9,208,037 thousand in the previous year[63]. - The net loss for the period was RMB 9,268,158 thousand, compared to a profit of RMB 9,477,850 thousand in the prior year, marking a substantial turnaround[62]. - Basic and diluted loss per share for the period was RMB (258.5), compared to earnings of RMB 178.0 in the same period last year[63]. Sales and Revenue Sources - For the first half of 2022, the company's contracted sales amounted to RMB 43.77 billion, with a total contracted sales area of 2.709 million square meters[3]. - 82.2% of the total revenue in the first half of 2022 came from property sales, while 17.8% came from hotel operations, commercial operations, property management, and other businesses[24]. - Property sales revenue was RMB 28,233,677 thousand, down 57% from RMB 66,521,433 thousand year-over-year[84]. - In the first half of 2022, the company achieved revenue of RMB 4.2657 billion in property services, representing a year-on-year increase of 12.9%[15]. - Hotel operating revenue decreased by approximately 24.0% to RMB 738 million from RMB 972 million in the same period of 2021, primarily due to recurring pandemic challenges[28]. Operational Adjustments - The company adjusted its operational strategy by suspending land acquisitions and focusing on fine management of existing projects[8]. - The company plans to further invest in the commercial light asset sector and accelerate its transition to a light asset model[13]. - The company aims to enhance operational capabilities and pursue "quality high growth" through strategic, operational, organizational, and talent development[21]. - The company plans to explore new revenue streams through outdoor beer gardens and community takeout services[22]. Financial Position and Liabilities - The total borrowings increased by 10.5% from approximately RMB 231.759 billion as of December 31, 2021, to approximately RMB 255.995 billion as of June 30, 2022, largely due to the ongoing downturn in the real estate industry and liquidity risks[50]. - The net debt ratio as of June 30, 2022, was approximately 219.0%, up from 156.0% as of December 31, 2021[54]. - The group's asset-liability ratio, excluding pre-receipts, was approximately 81.0% as of June 30, 2022, compared to 77.4% as of December 31, 2021[48]. - The cash-to-short-term debt ratio was 0.08 as of June 30, 2022, down from 0.21 as of December 31, 2021[55]. - The group has not made scheduled repayments totaling RMB 39 billion as of June 30, 2022[75]. - The group is seeking alternative financing and loans to meet its existing financial obligations and future operational and capital expenditures[78]. Asset Management - As of June 30, 2022, the company's land reserves were approximately 64.67 million square meters (before equity)[3]. - The total assets as of June 30, 2022, were RMB 624,255,200 thousand, slightly down from RMB 628,104,069 thousand at the end of 2021[65]. - Non-current assets decreased to RMB 130,590,767 thousand from RMB 138,221,256 thousand, indicating a reduction of approximately 5%[65]. - The company recorded a fair value loss of approximately RMB 28 million, compared to a fair value gain of RMB 534 million in the first half of 2021, mainly due to reduced rental income from Shanghai Shimao Plaza[37]. Cost Management - Sales costs decreased by 40.1% to approximately RMB 31.391 billion, down from RMB 52.388 billion in the same period of 2021, consistent with the downward trend in revenue[35]. - Marketing and promotional costs decreased by 39.1% to approximately RMB 1.570 billion, down from RMB 2.580 billion in the same period of 2021, reflecting a decline in contract sales[39]. - Administrative expenses decreased by 8.6% to approximately RMB 2.645 billion, down from RMB 2.893 billion in the same period of 2021, mainly due to personnel costs and depreciation[39]. Future Outlook and Strategies - The company has developed a business strategy plan focused on accelerating property sales[78]. - The company plans to enhance its market expansion strategies and product development in response to the current financial performance[86]. - The group is implementing measures to alleviate liquidity pressure and improve financial conditions, contingent on the success of these measures[134]. - The group is confident in achieving resolutions for ongoing litigation cases[78].

Financial Performance - The group recorded a loss attributable to equity holders of approximately RMB 27.1 billion for the year ended December 31, 2021[4]. - The group's revenue for the year ended December 31, 2021, was RMB 107.8 billion, a decrease from RMB 135.4 billion in 2020, representing a decline of approximately 20.4%[11]. - The group incurred a net loss of RMB 28.4 billion for the year ended December 31, 2021, compared to a profit of RMB 19.5 billion in 2020[11]. - The group reported a total comprehensive loss of RMB 28.91 billion for the year, compared to a total comprehensive income of RMB 19.07 billion in the previous year[31]. - The basic and diluted loss per share attributable to equity holders of the company was RMB 762.7 for the year ended December 31, 2021, compared to a profit of RMB 361.5 in the previous year[31]. - The company recorded a net loss attributable to shareholders of RMB 27.1 billion in 2021, compared to a profit of RMB 12.6 billion in 2020, resulting in a basic loss per share of RMB 762.7[79]. - The company's gross profit was approximately RMB 2.618 billion, a decrease of about 93.4% from the previous year, resulting in a gross margin of 2.4%[67]. - The loss attributable to shareholders from core operations was RMB 23.251 billion, a decline of approximately 289.3% compared to a profit of RMB 12.283 billion in 2020[67]. Assets and Liabilities - As of December 31, 2021, the total borrowings of the group amounted to approximately RMB 231.8 billion, with RMB 107.8 billion due within the next 12 months[4]. - Total assets increased to RMB 628.1 billion, up from RMB 589.8 billion, representing a growth of approximately 6.5%[14]. - Total liabilities increased to RMB 514.1 billion, compared to RMB 437.3 billion, marking a significant increase of around 17.6%[16]. - Total equity decreased to RMB 114.0 billion from RMB 152.5 billion, a decline of approximately 25.3%[16]. - The company's financial asset impairment provisions increased by 802.9% to RMB 4.360 billion in 2021, reflecting adverse macroeconomic conditions[63]. - The net debt ratio increased significantly to approximately 156.0% as of December 31, 2021, compared to 51.8% on December 31, 2020[115]. - The cash-to-short-term debt ratio dropped to 0.21 as of December 31, 2021, down from 1.16 on December 31, 2020[116]. - The group’s total liabilities included corporate borrowings of RMB 71.05 billion and other liabilities totaling RMB 1.49 billion[147]. Revenue Sources - For the year ended December 31, 2021, the company's total revenue reached RMB 107.8 billion, with property sales revenue accounting for RMB 94.49 billion, representing 87.7% of total revenue[38]. - Revenue from hotel operations, commercial operations, property management, and other businesses was RMB 13.309 billion, an increase of 44.3% year-on-year[67]. - Property sales revenue was RMB 94.49 billion in 2021, down from RMB 126.13 billion in 2020, indicating a decrease of about 25.1%[105]. - The group's hotel operating income increased to RMB 2.12 billion in 2021 from RMB 1.45 billion in 2020, reflecting a growth of approximately 46.3%[105]. - Property sales accounted for 87.7% of total revenue in 2021, while hotel operations, commercial operations, and property management contributed 12.3%[79]. Operational Changes and Strategies - The group has committed but unallocated capital and property development expenditures amounting to RMB 40.9 billion as of December 31, 2021[8]. - The group is actively pursuing restructuring of its offshore debt, including approximately USD 6.8 billion in principal amount of senior notes[7]. - The group plans to seek opportunities to divest its equity interests in certain project development companies to generate additional cash flow[7]. - The group has a business strategy focused on accelerating property sales and is confident in its ability to meet financial obligations within the next twelve months[30]. - The company plans to continue promoting sales to recover cash flow, rationally dispose of assets, and actively adjust operational strategies to ensure normal production and operation[78]. - The group emphasized a shift in industry logic from "scale" to "quality," aiming for long-term success through improved products and services[142]. Employee and Operational Metrics - The group employed a total of 53,926 employees as of December 31, 2021, with a total salary expense of approximately RMB 6.4 billion for the year[9]. - The total area of properties sold during the year was 6.401 million square meters, with an average selling price of RMB 14,762 per square meter[38]. - As of December 31, 2021, the company managed 830 projects covering 107 cities, with a managed construction area of 240.5 million square meters and a contracted construction area of 308.0 million square meters, representing year-on-year growth of 64.6% and 53.2% respectively[74]. Market Environment and Challenges - The overall market environment has changed since the second half of 2021, leading to increased sales pressure and a decline in the overall profitability of the industry[53]. - The company anticipates the opening of the Lanzhou Zhongshan Linmao Hotel in the summer of 2022, marking the first hotel under the revamped "Maoyu" brand[52]. - The company reported a fair value loss of approximately RMB 602 million in 2021, compared to a fair value gain of RMB 398 million in 2020, mainly due to a downturn in the economy and property market[88]. Financing and Debt Management - The company is actively seeking alternative financing to support its existing financial obligations and future operational and capital expenditures[21]. - The company has successfully negotiated extensions for long-term bonds and medium-term notes totaling RMB 59 billion and RMB 116 billion originally due in 2022 and 2023, respectively[21]. - The group secured a dual-currency syndicated loan facility of USD 657.5 million and HKD 5.1285 billion in April 2021, with a rate of Libor/Hibor + 2.5%[100]. - The group’s domestic subsidiaries increased borrowings backed by project assets and/or equity pledges by approximately RMB 61.78 billion by year-end[101]. Dividends and Shareholder Returns - The company did not recommend a final dividend for the year ended December 31, 2021, compared to a final dividend of HKD 0.90 and a special dividend of HKD 0.20 in 2020[67]. - The interim dividend declared for the six months ended June 30, 2021, is HKD 0.70 per share, totaling approximately RMB 2,060.75 million, with cash payments of RMB 664.78 million and scrip dividends of RMB 1,395.97 million[161].

Sales Performance - For the first half of 2021, Shimao Group achieved a contract sales amount of RMB 152.8 billion, representing a 38% increase year-on-year, completing approximately 46% of the annual sales target[11]. - The national commodity housing sales amount for the first half of 2021 increased by 38.9% year-on-year to RMB 929.31 billion, setting a historical record[9]. - Shimao Group anticipates a saleable resource of 20.04 million square meters in the second half of 2021, with a saleable value of approximately RMB 360 billion, of which 88% is located in first-tier and strong third-tier cities[11]. - The company aims to achieve an annual sales target of RMB 330 billion for 2021[11]. - The contracted sales for the first half of 2021 reached RMB 152.8 billion, a 38.3% increase year-on-year, achieving approximately 46.3% of the annual sales target[23]. - Property sales revenue amounted to RMB 66.52 billion, accounting for 90.6% of total revenue, with an 8.2% year-on-year growth[22]. Financial Performance - The group's revenue for the first half of 2021 reached RMB 73.4 billion, a 13.7% increase from RMB 64.55 billion in the same period of 2020[22]. - The company’s net profit attributable to shareholders for the first half of 2021 was RMB 6.283 billion, compared to RMB 5.266 billion in the previous year, marking a year-on-year increase of 19.3%[37]. - The company reported a profit for the period of RMB 9,477,850 thousand, compared to RMB 8,002,047 thousand in the previous year, marking a growth of 18.4%[100]. - The company’s total equity as of June 30, 2021, was RMB 162,934,649 thousand, an increase from RMB 152,494,752 thousand at the beginning of the year[102]. - The company’s retained earnings as of June 30, 2021, were RMB 72,738,301 thousand, up from RMB 69,756,582 thousand at the beginning of the year[102]. Debt and Financing - The company’s net debt ratio stood at 50.9%, maintaining below 60% for ten consecutive years, reflecting a strong financial strategy amidst tightening industry credit conditions[16]. - The group's total borrowings increased by 13.3% from approximately RMB 145.14 billion as of December 31, 2020, to approximately RMB 164.51 billion as of June 30, 2021[54]. - The group has committed but unallocated capital and property development expenditures amounting to RMB 63.085 billion as of June 30, 2021[56]. - The group has pledged properties and equipment valued at RMB 80.14 billion as collateral for bank financing, with related bank loans amounting to RMB 41.311 billion[56]. - The company successfully issued 10-year USD senior notes at a low interest rate of 3.45% and secured a four-year syndicated loan of USD 1.315 billion at LIBOR/HIBOR + 2.95%[17]. Property Management and Operations - The property management segment reported a revenue increase of 170.6% and a net profit increase of 150.9% year-on-year, with managed area reaching 175 million square meters and contracted area reaching 239 million square meters as of June 30, 2021[13]. - The company expanded its commercial and entertainment projects to 76 across 36 cities, with new openings achieving a 100% leasing rate[15]. - The hotel revenue for the first half of 2021 reached RMB 972 million, a significant increase of 114.6% compared to the same period in 2020, with 27 international brand hotels and 136 self-owned brand hotels in operation[14]. - The company opened four new self-managed hotels in the first half of 2021, increasing the total number of self-managed hotels to 27, with a total of over 32,000 rooms[34]. - The company plans to continue expanding its hotel operations and property management services to capitalize on the recovery of the economy post-COVID-19[40]. Corporate Governance and Shareholder Information - The company has a strong leadership team with extensive experience in real estate and financial management, including executives with over 22 years and 27 years of experience respectively[59][61]. - The company is committed to maintaining high standards of corporate governance, as evidenced by the qualifications and backgrounds of its board members[63][66]. - The company has a diverse board with members who have held senior positions in various financial and legal institutions, enhancing its strategic decision-making capabilities[64][65]. - The company declared an interim dividend of HKD 0.70 per share for the six months ended June 30, 2021, consistent with the previous year’s total dividend[20]. - The major shareholder increased their stake by acquiring 6.8625 million shares, demonstrating confidence in the company's growth prospects[35]. Market Conditions and Regulatory Environment - The real estate market is under strict regulatory measures, including the "three red lines" policy and "residential land supply management," which are expected to impact future sales growth[8]. - The Chinese economy showed a GDP growth of 12.7% in the first half of 2021, reflecting a stable recovery amid the ongoing pandemic[8]. - The company has established a strong regulatory framework involving developers, banks, and local governments to stabilize land and housing prices[8]. - The company is focused on continuous product innovation and operational efficiency to adapt to market conditions and achieve stable growth[23]. - The company is exploring new strategies for market expansion and product development to stay competitive in the real estate sector[62].

SHIM-@ 世茂集團 SHIMAO GROUP HOLDINGS LIMITED 世 茂 集 團 控 股 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) - (於開曼群島註冊成立之有限公司) Stock Code 股份代號 : 813 ANNUAL REPORT 年報 2020 101 11 1 2 8 8 7 4 . Page of 4 1 114 : . 0.4 4.6 . % 4 4 + t 2017 . . . . + 肇興世茂演江壹號 . . . . . te ·· the state : . 11:28 r (*) . . . t 2008 n de t A see 0.08.2 .. . 0.00 · are 4 .. . . 4 4 11 1 n and . . . 187 127 .. t 目錄 4 6 8 16 34 48 67 72 73 78 80 82 84 85 | --- | |----------------------| | | | 公司資料 | | 五年財務概要 | | 主席報告 | ...

Land Reserves and Expansion - As of June 30, 2020, the company has a land reserve of 83.93 million square meters across 423 projects in 135 cities[5] - The company is focused on expanding its quality land reserves and has established a presence in various key regions including Zhejiang, Central China, and Shandong[5] - The group increased land reserves by 12.32 million square meters during the reporting period, with 94% of the total land value located in first- and second-tier cities and strong third- and fourth-tier cities[17] - The average floor price of newly acquired land reserves was approximately RMB 5,252 per square meter, while the average land cost after equity was RMB 5,279 per square meter[39] - The company has entered 135 cities nationwide, managing 423 projects with a total land area of 83.93 million square meters (pre-equity)[39] Financial Performance - The company's total revenue for the first half of 2020 reached RMB 64.55 billion, a 14.1% increase from RMB 56.56 billion in the same period of 2019[29] - Property sales revenue amounted to RMB 61.47 billion, accounting for 95.2% of total revenue, with a year-on-year growth of 15.5%[29] - The company achieved a contracted sales amount of RMB 110.48 billion in the first half of 2020, representing a 10.1% increase year-on-year[31] - The average sales price per square meter was RMB 17,542, with a total contracted sales area of approximately 6.298 million square meters, up 13.3% year-on-year[31] - The company's gross profit for the first half of 2020 was RMB 19,512 million, up from RMB 17,020 million in the first half of 2019, reflecting a growth of 14%[51] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.60 per share and a special dividend of HKD 0.10 per share[10] - The board declared an interim dividend of HKD 0.60 per share and a special dividend of HKD 0.10 per share, totaling HKD 0.70 per share, compared to HKD 0.60 per share in the same period of 2019[28] Debt and Financing - As of June 30, 2020, the group had cash on hand of RMB 69.92 billion, an increase of 17.3% compared to the end of 2019, and a net debt ratio of 57.8%, down 1.9 percentage points from the end of 2019[19] - The company raised a total of HKD 6.9 billion through equity financing in January and May 2020, effectively mitigating systemic market risks[72] - The comprehensive financing cost for the first half of 2020 was approximately 5.50%, a decrease of 0.10 percentage points from 5.60% in the same period of 2019[73] - The company raised approximately HKD 4,638 million from the placement of 158 million shares at a price of HKD 29.58 per share, with a net price of HKD 29.35 per share after expenses[75] - The company reported a foreign exchange loss of RMB 1,292,563,000 for the six months ended June 30, 2020, compared to RMB 243,604,000 in the same period of 2019[188] Market Position and Strategy - The company continues to explore opportunities for mergers and acquisitions to strengthen its market position[12] - The company has initiated a diversified business development model called the "Big Aircraft Strategy," focusing on property development while expanding into commercial operations, hotel management, and financial services[22] - The company aims to enhance its competitive edge in commercial real estate through specialized development and operational strategies[40] Impact of COVID-19 - The company emphasizes the importance of stabilizing employment and the economy through various government policies during the pandemic[13] - The company has implemented strategies to ensure the stability of its supply chain and operations during the ongoing crisis[13] - The company donated HKD 30 million for COVID-19 prevention efforts and provided over 1.05 million masks to various regions[28] - Hotel operating revenue decreased by approximately 54.5% to RMB 453 million from RMB 996 million in the first half of 2019, primarily due to the impact of the COVID-19 pandemic[56] Property Management and Development - The group has expanded its property management portfolio to cover 495 properties, with a total contracted building area of 124.4 million square meters as of June 20, 2020[23] - The company acquired Guangzhou Yutai Property Service Co., Ltd. and Chengdu Xinyi Property Co., Ltd. to enhance its property management business[43] - The company has a construction area of 51.6 million square meters, with a planned completion of approximately 12.5 million square meters in 2020[38] Corporate Governance and Management - The company is committed to maintaining high standards of business ethics and corporate governance to enhance long-term shareholder value[102] - The board consists of seven directors, including four executive directors and three independent non-executive directors, ensuring diverse business and professional expertise[103] - The company has undergone changes in its board of directors, including the appointment of Lin Qingjin as the chairman of the nomination committee on August 25, 2020[92] Employee and Shareholder Engagement - The total employee count as of June 30, 2020, was 26,136, with total salary expenses of approximately RMB 1.436 billion during the period[81] - The company granted 4,341,514 shares to selected employees under the share incentive plan during the six months ended June 30, 2020[93] - The share incentive plan allows for a maximum of 2% of the issued share capital at the adoption date, equating to 69,319,016 shares[93]