2024 Interim Results 30 Aug 2024 Agenda | Opening Remarks | Vincent Lo | | --- | --- | | | Chairman | | Business Review and | Stephanie Lo | | Outlook & Strategy | Vice Chairman, Shui On Land | | Key Financial Highlights | Douglas Sung | | | CFO & CIO, Shui On Land | | Property Sales & Development | Jessica Wang | | | CEO, Shui On Land | | Commercial Asset Management | Allan Zhang | | | CEO, Shui On Xintiandi | 2 Opening Remarks 3 China Property Market Facing Immense Challenges China property market undergo ...

Building a future Sharing a dream 2024 Annual Results 28 March 2025 1 Agenda | Opening Remarks | Vincent Lo | | --- | --- | | | Chairman | | Business Review and | Stephanie Lo | | Outlook & Strategy | Vice Chairman | | Key Financial Highlights | Douglas Sung | | | CFO & CIO, Shui On Land | | Property Sales & Development | Jessica Wang | | | CEO, Shui On Land | | Commercial Asset Management | Allan Zhang | | | CEO, Shui On Xintiandi | 2 Opening Remarks Vincent Lo Chairman 3 Opening Remarks _______ Times of M ...

Core Viewpoint - ST Jin Yi (002721.SZ) reported a revenue increase of 14.77% year-on-year for Q1 2025, but faced a significant decline in net profit, indicating potential challenges in profitability despite revenue growth [1][3]. Financial Performance - The company's total revenue for Q1 2025 was 144 million yuan, ranking 15th among peers, with an increase of 18.55 million yuan compared to the same period last year [1]. - The net profit attributable to shareholders was -20.93 million yuan, ranking 14th among peers, reflecting a decrease of 23.57 million yuan year-on-year, a decline of 892.76% [1]. - Operating cash flow showed a slight improvement, with a net inflow of -42.02 thousand yuan, ranking 11th among peers, an increase of 2.26 million yuan compared to the previous year [1]. Key Ratios - The latest debt-to-asset ratio stood at 4.80%, ranking 1st among peers, with a slight decrease of 0.03 percentage points from the previous quarter and a reduction of 1.27 percentage points year-on-year [3]. - The gross profit margin was reported at 27.32%, ranking 5th among peers, with an increase of 4.82 percentage points from the previous quarter and a rise of 7.15 percentage points year-on-year [3]. - Return on equity (ROE) was -1.01%, ranking 14th among peers, down 1.14 percentage points from the previous year [3]. - The diluted earnings per share were -0.01 yuan, ranking 14th among peers, a decrease of 0.01 yuan year-on-year, reflecting a decline of 890.00% [3]. Efficiency Metrics - The total asset turnover ratio was 0.07 times, ranking 13th among peers, with an increase of 0.01 times year-on-year, up 15.18% [3]. - The inventory turnover ratio was 0.21 times, ranking 13th among peers, showing a decrease of 0.04 times year-on-year, down 17.05% [3]. Shareholder Structure - The number of shareholders was reported at 28,900, with the top ten shareholders holding 1.352 billion shares, accounting for 50.85% of the total share capital [3]. - The largest shareholder, Beijing Haixin Asset Management Co., Ltd., holds 24.29% of the shares [3].

Core Viewpoint - The company is significantly investing in Wuhan, leveraging the city's strategic development and aiming to create a comprehensive urban renewal and commercial integration model similar to its Shanghai projects [2][4]. Investment and Project Development - The final residential phase of the Wuhan Tiandi project is set to launch in Q4 of this year, with over 300 companies already established in the business district [4]. - The company has committed over 100 billion yuan to Wuhan, marking it as the largest regional market outside Shanghai [4]. - The Innovation Tian Di project, initiated in 2017, spans 1.2 million square meters and aims to establish a core hub for technological innovation in Wuhan [5]. - The Wuhan Changjiang Tiandi project is designed to enhance the waterfront cultural complex while preserving historical and industrial heritage [5]. Market Strategy and Customer Focus - The company emphasizes a long-term commitment to quality products and understanding customer needs, aiming to align offerings with lifestyle expectations [9][10]. - The company plans to slow down sales in the Innovation Tian Di project to better assess market conditions and optimize future offerings [8]. Future Outlook and Strategic Direction - The company intends to pursue both development and operational strategies, focusing on sustainable growth despite potential market fluctuations [10]. - The company is adopting a cautious approach to new projects, prioritizing strategic partnerships and influential developments [10]. - The company believes that future success in the real estate market will depend on the ability to provide high-quality products [10][11].

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue decreased to HKD 8,959 million from HKD 10,823 million in 2023, representing a decline of approximately 17.2%[8] - The core profit attributable to shareholders for 2024 was HKD 493 million, down from HKD 1,033 million in 2023, indicating a decrease of about 52.3%[8] - The total assets of the company as of December 31, 2024, were RMB 91,938 million, down from RMB 100,998 million in 2023, a decrease of about 8.9%[9] - The net profit attributable to shareholders in 2024 was RMB 180 million, a decrease of 78% from RMB 810 million in 2023[171] - The company's revenue for 2024 decreased by 16% to RMB 8.173 billion, down from RMB 9.752 billion in 2023, primarily due to a 26% drop in confirmed property sales[164] - Property sales in 2024 amounted to RMB 4.356 billion, compared to RMB 5.898 billion in 2023, with significant contributions from Wuhan Tiandi Yunting Phase III, generating RMB 4.138 billion[164] - The total revenue from property sales for the group was RMB 7.962 billion in 2024, compared to RMB 38.565 billion in 2023[122] - The total cash and bank deposits reached RMB 7.734 billion[43] - The financial expenses for 2024 totaled RMB 2.027 billion, down from RMB 2.167 billion in 2023, with interest expenses decreasing by 12% to RMB 2.058 billion[169] Property Sales and Development - The total confirmed property sales (including joint ventures and associates) amounted to RMB 7.962 billion[43] - The company achieved a total contract sales amount of RMB 15.055 billion, including RMB 14.553 billion from residential property sales and RMB 502 million from commercial property sales[120] - Residential property sales accounted for 97% of the total sales in 2024, with an average selling price of RMB 134,900 per square meter, up from RMB 56,700 per square meter in 2023[124] - The company confirmed property sales totaled RMB 7.962 billion in 2024, with an average selling price of RMB 25,500 per square meter, primarily impacted by a reduction in residential property completions[121] - The company has successfully developed and sold approximately 246,000 square meters of residential units in the Panlong Tiandi project from 2019 to 2024, with the last phase recording over 2,000 subscription applications[72] - The company has entered into a partnership with Yongye Group to develop the "Cuihu Tiandi" high-end residential project in the Shanghai Xintiandi community[54] - The company will continue to leverage its existing advantages in the mid-to-high-end market to enhance product competitiveness and brand influence, aiming for growth opportunities in high-quality products[54] Rental and Income Performance - The rental and related income for 2024 was RMB 9,752 million, a decrease from RMB 11,396 million in 2023, reflecting a decline of approximately 14.4%[11] - The overall rental income for 2024 reached RMB 2.456 billion, a 2% increase from RMB 2.398 billion in 2023, primarily driven by additional rental contributions from the opening of Panlong Tiandi[141] - The total rental income, including contributions from joint ventures, is projected to grow by 9% year-on-year to RMB 3.547 billion in 2024, with 77% of this income coming from properties in Shanghai[141] - The rental income from Shanghai Xintiandi reached RMB 488 million in 2024, up 7% from RMB 457 million in 2023, with an occupancy rate of 96%[142] - The rental rates for retail properties and mature office buildings were maintained at 94% and 91% respectively, indicating strong demand and stability in the commercial property sector[48] Sustainability and Environmental Initiatives - The company achieved a 100% renewable energy usage rate in its "Shanghai Xintiandi" and "Nanjing International Financial Center" properties, increasing the group's renewable energy usage rate to 35%[34] - The intensity of Scope 1 and Scope 2 carbon emissions was cumulatively reduced by 51.3% compared to the 2019 baseline, while Scope 3 tenant emissions intensity decreased by 28.1%[34] - The group received the "Climate Change Leadership Award" from CDP in 2024 and was included in the "CDP Climate Change A List," highlighting its leadership in climate governance and information disclosure[51] - The proportion of renewable energy usage in the group's overall operations increased from 20% in 2023 to 35% in 2024, marking significant progress in sustainability efforts[49] Debt Management and Financial Strategy - The company plans to repay USD 493.5 million in senior notes due on August 24, 2024, and USD 490 million due on March 3, 2025, as part of its prudent capital management strategy[29] - The group successfully repaid offshore debts totaling RMB 45.2 billion since 2021, including USD 490 million in senior notes due in March 2025, demonstrating prudent capital management[52] - The company has repaid a total of USD 493.5 million in senior notes as of August 2024, demonstrating its commitment to financial responsibility[112] - The company maintained a net asset liability ratio of 52% as of December 31, 2024, with total cash and bank deposits reaching RMB 7.734 billion[112] Market Conditions and Economic Outlook - The group anticipates ongoing adjustments in the Chinese real estate market due to geopolitical uncertainties, despite signs of recovery in first-tier cities[53] - In 2024, China's GDP growth rate was boosted to 5% due to economic stimulus policies, although the real estate market continued to decline, with a 10.6% drop in real estate investment[188] - The new residential sales and total construction area in China decreased by 17.6% and 14.1% respectively in 2024, but the decline has started to ease in the second half of the year[189] - Shanghai's Grade A office buildings saw a net absorption increase of 24.7% to 476,000 square meters in 2024, driven by demand from upgraded and diversified tenant portfolios[190] Future Plans and Strategic Initiatives - The company plans to continue implementing a "light asset strategy" to expand its business and explore innovative business models[43] - The company aims to actively explore innovative business models to adapt to the complex market environment[54] - The company plans to launch the next batch of villas and townhouses by the end of 2025, depending on construction progress and government approvals[124] - The company plans to continue expanding its asset management services and seek more collaboration opportunities with other organizations[144]

Financial Performance - In 2024, the company recorded a profit of RMB 810 million, with a significant year-on-year decline of 42% due to a decrease in residential property completions and confirmed property sales[4]. - The company's revenue decreased by 16% to RMB 8.173 billion, with recognized property sales down 26% to RMB 4.356 billion[5]. - The annual profit for 2024 was RMB 810 million, down 42.5% from RMB 1.397 billion in 2023[54]. - The profit attributable to shareholders for 2024 was RMB 180 million, a decrease of 77.8% compared to RMB 810 million in 2023[55]. - The core profit for 2024 was RMB 4.5 billion, down 52% from RMB 9.31 billion in 2023[56]. - The total revenue for 2024 was RMB 8,173 million, down 16.1% from RMB 9,752 million in 2023[79]. - The company reported a pre-tax profit of RMB 3,147 million for 2024, compared to RMB 2,699 million in 2023, representing an increase of 16.6%[83]. - The company recorded a net loss of RMB 279 million in other income and losses for 2024, compared to a net loss of RMB 243 million in 2023[50]. Property Sales and Development - Contracted property sales reached RMB 15.055 billion, marking a 32% increase year-on-year, while subscription sales surged by 117% to RMB 795 million[5]. - In 2024, the company recorded confirmed property sales of RMB 4.356 billion, with total confirmed property sales (including joint ventures) amounting to RMB 7.962 billion[7]. - The company achieved a contract sales amount of RMB 15.055 billion in 2024, representing a 32% increase compared to 2023, with residential properties accounting for 97% of the sales[11]. - The residential property sales for the Shanghai Taipingqiao (Plot 122) reached RMB 11,979 million with an average selling price of RMB 210,200 per square meter, while the total area sold was 57,000 square meters[13]. - The company has approximately 176,300 square meters of residential properties available for sale and pre-sale in 2025 and beyond, with a total estimated sales value of RMB 101,100 million[15]. - The estimated total sales value of the residential development projects available for sale as of December 31, 2024, is RMB 51.2 billion, with a total building area of 920,100 square meters[16]. - The company sold 108 units in the first batch of the Cuihu Binjiang project, totaling a sales amount of RMB 1.298 billion, with a target delivery date in the second half of 2025[18]. Rental and Income Performance - Total rental and related income amounted to RMB 3.547 billion, representing a 9% increase compared to the previous year, driven by contributions from newly opened projects[5]. - Rental and related income for 2024 increased by 9% year-on-year to RMB 3.547 billion, with 77% of this income derived from properties in Shanghai[7]. - The rental income from properties in Shanghai accounted for 77% of the total rental and related income in 2024[29]. - The average occupancy rate for the retail property portfolio remained stable at 94%, with sales and foot traffic increasing by 8% and 12% respectively in 2024[28]. - The office property portfolio's overall occupancy rate improved from 66% in 2023 to 69% in 2024, despite challenges in the market[28]. - The rental income from the newly opened Panlong Tiandi contributed significantly to the overall growth in rental income[28]. Debt and Financial Management - The company maintained a stable net debt-to-equity ratio of 52% as of December 31, 2024, with total cash and bank deposits amounting to RMB 7.734 billion[5]. - The company has repaid a total of RMB 45.2 billion in offshore debt since 2021, reflecting its commitment to prudent capital management[4]. - The group repaid a total of RMB 10.87 billion in debt during 2024, with an additional RMB 5.6 billion repaid by March 27, 2025, representing 68% of the debt due in 2025[65]. - The total financial expenses amounted to RMB 2.027 billion, a decrease of 6.4% from RMB 2.167 billion in 2023, with interest expenses down 12% to RMB 2.058 billion[52]. - The net debt as of December 31, 2024, was RMB 22.193 billion, a decrease from RMB 23.016 billion in 2023, with a stable net asset leverage ratio of 52%[61]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.036 per share for 2024, down from HKD 0.058 per share in 2023, resulting in an annual dividend of HKD 0.036 per share[4]. - The proposed final dividend for 2024 is HKD 0.036 per share, down from HKD 0.058 per share in 2023[57]. - The final dividend proposed for the year ending December 31, 2024, is HKD 0.036 per share, totaling approximately RMB 268 million, down from RMB 423 million in 2023[108]. Market and Economic Conditions - The real estate investment market saw a 10.6% decline in investment in 2024, marking three consecutive years of contraction[101]. - The company anticipates challenges in the commercial office market due to increased supply and competition, while seeking new tenants from emerging productivity sectors[102]. - In 2024, Shanghai's GDP recorded a growth of 5%, becoming the first city in China with an economic total exceeding RMB 5 trillion[104]. - In 2024, Chongqing's GDP grew by 5.7%, reaching RMB 3.2 trillion, surpassing Guangzhou to become China's fourth-largest city[105]. - In 2024, Wuhan's GDP growth was 5%, with total social retail sales reaching RMB 800 billion, an increase of 5.3%[106]. Corporate Governance and Management - The company has adopted the Corporate Governance Code and has complied with all applicable provisions, with some exceptions noted[110]. - The company expressed gratitude to the board members, management team, and employees for their efforts over the past year[116]. - The company emphasized the importance of equal opportunity principles in its compensation policy, which is based on employee performance and qualifications[114]. - The company is committed to ongoing reviews of its corporate governance practices to align with the latest developments[110]. Employee and Operational Insights - As of December 31, 2024, the total number of employees at the company was 2,851, a decrease from 3,054 employees as of December 31, 2023[113]. - The company provided a range of employee benefits including retirement plans, long-term incentive plans, and medical insurance[113].

Financial Data and Key Metrics Changes - The company reported a revenue of RMB 8.1 billion and a net profit of RMB 810 million for 2024, with profit attributable to shareholders at RMB 180 million [19][20] - Total rental income, including joint ventures and associates, was RMB 3.54 billion, reflecting a 9% year-on-year increase despite market challenges [21][22] - The gross profit margin improved to 64%, higher than the previous year, primarily due to a revenue composition shift towards rental income [23] Business Line Data and Key Metrics Changes - Property sales on a consolidated level reached RMB 4.3 billion, with a notable increase in contract sales driven by the successful launch of Lakeview 6, which generated nearly RMB 12 billion in sales on its launch day [19][35] - The commercial portfolio's rental and related income increased by 9% year-on-year, supported by new projects opened in 2023 [11][52] - The average occupancy rate for the commercial sector remained stable at around 90% [53] Market Data and Key Metrics Changes - The high-end residential market in Shanghai saw a 150% year-on-year increase in transactions, indicating strong demand despite broader market challenges [15] - The overall residential market in China continues to contract, but first-tier cities are showing early signs of recovery, with home prices turning positive in late 2024 [39][40] - The luxury home sales in Shanghai nearly doubled, with significant demand from high-net-worth individuals [43] Company Strategy and Development Direction - The company will continue to focus on an asset-light strategy, expanding its urban retreat community and launching new projects in high-growth cities [11][48] - The strategy includes prioritizing opportunities in top-tier cities, particularly Shanghai, and leveraging the Lakeview brand for competitive advantage [41][42] - The company aims to innovate its business model and form strategic partnerships to drive sustainable growth [42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging operating environment due to economic transitions and geopolitical uncertainties but expressed confidence in maintaining profitability [3][5] - The company noted that supportive government measures are beginning to stabilize the market, with increasing land sales at premiums indicating growing confidence [14][40] - Future expectations include a focus on high-end residential projects and a continued emphasis on sustainability efforts [14][46] Other Important Information - The company has fully repaid significant offshore debts, enhancing its liquidity and reducing reliance on foreign financing [12][33] - Sustainability efforts have led to a 51.3% reduction in carbon emissions intensity and recognition in the Climate Leadership Award from CDP [13][14] Q&A Session Summary Question: What are the expectations for the residential market in the coming years? - Management highlighted that while the national market is contracting, first-tier cities are showing signs of recovery, with positive month-on-month price changes expected [39][40] Question: How is the company managing its debt and liquidity? - The company has successfully repaid a significant portion of its offshore debts and reduced its reliance on foreign financing, maintaining a stable gearing ratio [33][34] Question: What are the key drivers for growth in the commercial sector? - The company is focusing on enhancing tenant experiences and maintaining high occupancy rates, with a strategic emphasis on high-quality services in its office portfolio [53][56]

Financial Data and Key Metrics Changes - Shui On Land reported a profit attributable to shareholders of RMB 180 million for the year, with total revenue of RMB 8.1 billion and net profit of RMB 810 million [4][20] - The company experienced a decline in revenue and profit primarily due to lower levels of residential completion and handover in 2024 compared to 2023 [21] - The gross profit margin improved to 64%, higher than in 2023, mainly due to a revenue composition more driven by rental income [22] Business Line Data and Key Metrics Changes - Contract sales for 2024 increased by 32%, reaching RMB 55 billion, with residential property sales of RMB 14.55 billion and commercial property sales of RMB 5.2 billion [35] - Total rental income, including joint ventures and associates, increased by 9% year on year, amounting to RMB 3.54 billion [20][22] - The commercial portfolio yielded solid rental growth, with a total rental and related income of RMB 3.5 billion, supported by new projects opened in 2023 [12][53] Market Data and Key Metrics Changes - The high-end residential market in Shanghai continued to perform well, with high-end transactions increasing by 150% year on year [16] - The overall residential market in China is undergoing a structural correction, but signs of recovery are emerging in top-tier cities [40] - The second-hand market in Shanghai saw monthly sales exceeding 20,000 units from October to December 2024, indicating a resurgence in demand [41] Company Strategy and Development Direction - The company will continue to prioritize an asset-light strategy and focus on top-tier cities, particularly Shanghai, to capture the best opportunities [8][42] - The strategy includes leveraging the Lakeview brand and expanding urban retreat communities through partnerships and innovative business models [50] - The company aims to maintain prudent capital management while expanding its portfolio without putting pressure on its financial balance sheet [18][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging operating environment due to economic transitions and geopolitical uncertainties but expressed confidence in maintaining profitability [4][8] - The company noted that supportive measures from the central government are beginning to shore up market confidence, particularly in the high-end residential sector [15][40] - Management remains optimistic about the future, citing strong demand in the luxury market and the successful sales launch of Lakeview 6 as positive indicators [10][16] Other Important Information - The company has fully repaid RMB 45.2 billion in foreign loans and maintained a stable net debt ratio of 52% [13][25] - Sustainability efforts have led to a 51.3% reduction in carbon emissions intensity and recognition in the Climate Leadership Award from CDP [14] - The company is focusing on urban regeneration projects and partnerships to enhance its asset-light strategy [50] Q&A Session Summary Question: What are the company's plans for future residential projects? - The company plans to launch the next phase of Lakeview 6 in late 2025, featuring low-density heritage-inspired villas and townhouses, with construction completion expected in Q2 2027 [46] Question: How is the company addressing the challenges in the office market? - The company is focusing on a refined office leasing strategy and has successfully signed over 230,000 square meters of new leases, targeting high-quality tenants [56]

Financial Performance - For the first half of 2024, the company recorded a profit of RMB 183 million, with a profit attributable to shareholders of RMB 72 million, reflecting a significant decline in net profit year-on-year due to insufficient new residential project completions [4]. - The group reported a profit of RMB 183 million for the first half of 2024, with a net profit attributable to shareholders of RMB 72 million, despite a significant year-on-year decline [15]. - The net profit attributable to shareholders for H1 2024 was RMB 72 million, a decrease of 88% from RMB 618 million in H1 2023 [60]. - The company reported a core profit of RMB 108 million in H1 2024, an 85% decrease from RMB 698 million in H1 2023 [60]. - Revenue for the six months ended June 30, 2024, was RMB 2,073 million, a decrease of 67.7% compared to RMB 6,431 million for the same period in 2023 [73]. - Property sales revenue for the six months ended June 30, 2024, was RMB 143 million, a significant decrease from RMB 4,662 million for the same period in 2023, representing a decline of approximately 96.9% [87]. - The group’s net profit for the period was RMB 183 million, compared to RMB 282 million in the same period of 2023, representing a decline of about 35.1% [90]. Market Conditions - The national residential sales area in the first half of 2024 decreased by 22.2% compared to 2023 and by 49.3% compared to 2021, indicating a significant downturn in the real estate market [5]. - The company maintains a cautious outlook on short-term business prospects due to overall liquidity constraints in the real estate sector [16]. - Real estate investment in China declined by approximately 10% in both 2022 and 2023, with a further drop of 10.1% in the first half of 2024 [52]. - China's GDP growth slowed from 5.3% in Q1 2024 to 4.7% in Q2 2024, with industrial production and exports increasing by 3.6% and 6.0% respectively [52]. Property Development and Sales - The total contract property sales for the first half of 2024 amounted to RMB 623 million, representing an 86% decrease compared to RMB 4,564 million in the same period of 2023 [24]. - The company has secured total sales of RMB 7.818 billion, which will be delivered and recognized in the second half of 2024 and beyond [18]. - The company has approximately 240,100 square meters of residential property available for sale and pre-sale in the second half of 2024 and beyond [27]. - The company plans to launch more projects in the second half of 2024, primarily in Shanghai, depending on construction progress and government pre-sale approvals [24]. - The average selling price (excluding parking spaces) for confirmed property sales in the first half of 2024 was RMB 14,600 per square meter [21]. Rental and Income Performance - The group's rental and related income increased by 16% to RMB 1.764 billion in the first half of 2024, despite a challenging real estate market [15]. - Rental and related income for the commercial property portfolio increased by 16% year-on-year to RMB 1.764 billion, with 77% of this income coming from properties in Shanghai [18]. - Rental and related income from investment properties increased by 11% to RMB 1.257 billion in the first half of 2024, up from RMB 1.131 billion in the same period of 2023 [55]. - The rental income from the newly opened Panlong Tiandi contributed significantly to the overall growth, with a 176% increase in rental income from this property [40]. Debt and Financial Management - The group repaid a total of RMB 40.6 billion in offshore debt since 2021, including USD 493.5 million in senior notes due on August 24, 2024 [11]. - The group had cash and bank deposits totaling RMB 105.43 billion, an increase from RMB 89.17 billion as of December 31, 2023 [63]. - The total debt structure of the group amounted to RMB 33.583 billion, with RMB 11.934 billion due within one year [63]. - The average cost of debt decreased to 5.98% in H1 2024 from 6.55% in H1 2023 [57]. Sustainability and Corporate Governance - All operational properties of Shanghai Xintiandi have transitioned to 100% renewable energy usage since July 1, 2024, marking a significant milestone in sustainability [9]. - The company has been recognized for its sustainable development efforts, winning the Climate Leadership Award from the Carbon Disclosure Project [16]. - The company has maintained its liability classification as current and non-current post the adoption of revised accounting standards, indicating no impact on financial position or performance [85]. - The company has complied with the Corporate Governance Code and all applicable code provisions during the six months ended June 30, 2024 [138]. Shareholder Information - The total number of shares issued by the company as of June 30, 2024, is 8,027,265,324 shares [127]. - The board consists of 11 members, including 4 executive directors and 7 independent non-executive directors, ensuring a balance of gender, skills, experience, and perspectives [140]. - The company did not recommend the distribution of an interim dividend for 2024, compared to an interim dividend of HKD 0.032 per share in the first half of 2023 [4].

Financial Performance - In the first half of 2024, the company recorded a profit of RMB 183 million, with a significant year-on-year decline of 80% due to insufficient new residential project completions affecting property sales [2]. - Total revenue for the first half of 2024 was RMB 2.073 billion, down 68% year-on-year, reflecting the challenging market conditions [3]. - The net profit decreased primarily due to a decline in the completion volume of residential projects during the period [6]. - The net profit attributable to shareholders for the first half of 2024 was RMB 72 million, a decrease of 88% compared to RMB 618 million in the same period of 2023 [45]. - Earnings per share for the first half of 2024 were RMB 0.09, compared to RMB 0.77 in the same period of 2023 [43]. - The group reported a profit before tax of RMB 282 million for the first half of 2024, down from RMB 1,870 million in the same period of 2023, a decrease of 85% [68]. - Gross profit for the first half of 2024 fell by 54% to RMB 1.355 billion, while the gross profit margin increased to 65% from 46% in the first half of 2023 due to a higher contribution from property investments [40]. Property Sales and Revenue - Contracted property sales dropped to RMB 623 million, a decrease of 86% compared to the same period last year [3]. - The group recorded property sales revenue of RMB 1.43 billion, with total property sales amounting to RMB 16.91 billion, including joint ventures and associates [5]. - The total confirmed property sales for the first half of 2024 amounted to RMB 16.91 billion, with an average selling price of RMB 14,600 per square meter [6]. - Property sales in the first half of 2024 amounted to RMB 143 million, a significant drop from RMB 4.662 billion in the same period of 2023, with RMB 135 million coming from the Panlong Tiandi project [40]. Rental Income and Commercial Properties - Rental and related income increased to RMB 1.764 billion, representing a 16% year-on-year growth, driven by the successful opening of two new commercial properties [3]. - The recurring rental income from the commercial property portfolio increased by 16% year-on-year to RMB 1.764 billion, with 77% of this income derived from properties in Shanghai [5]. - The rental income from the newly opened Panlong Tiandi contributed significantly to the revenue growth, with a reported increase of 176% in rental income from this property [23]. - The total rental and related income, including contributions from joint ventures and associates, grew by 16% year-on-year to RMB 1.764 billion, with 77% of this income derived from properties in Shanghai [22]. Debt and Financial Position - The company has repaid a total of RMB 40.6 billion in offshore debt since 2021, including USD 493.5 million in senior notes due on August 24, 2024 [2]. - The net asset liability ratio slightly increased to 53% as of June 30, 2024, compared to 52% at the end of 2023 [3]. - The group’s net debt as of June 30, 2024, was RMB 23.04 billion, with a net asset liability ratio of 53% [49]. - Cash and bank deposits rose by 18% to RMB 10.543 billion, indicating improved liquidity [3]. Market Conditions and Outlook - The company maintains a cautious outlook on short-term business prospects due to ongoing liquidity challenges in the real estate sector [2]. - Real estate investment in China declined by 10.1% in the first half of 2024, with housing sales showing initial signs of stabilization [85]. - The central government aims for a 5% economic growth target for the year, with plans for more proactive counter-cyclical policies to support household consumption and stabilize the real estate market [87]. Development Projects and Future Plans - The group plans to launch more projects in the second half of 2024, primarily in Shanghai, to address the decline in contract property sales, which fell by 86% year-on-year to RMB 623 million [8]. - The company has approximately 240,100 square meters of residential property available for sale and pre-sale in the second half of 2024, covering seven projects [11]. - The Shanghai Taipingqiao Project (No. 122) has a total construction area of 87,000 square meters, with a planned launch in the second half of 2024, and the company holds a 50% interest [14]. Corporate Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with all applicable provisions, except for the absence of an independent non-executive director at the annual general meeting [89]. - The audit and risk committee reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2024, with no objections to the accounting treatment adopted [89]. - The company confirmed that all directors complied with the standards set out in the Securities Trading Code during the six months ending June 30, 2024 [90]. Employee and Operational Metrics - As of June 30, 2024, the company employed 2,982 staff, a decrease from 3,054 as of December 31, 2023, including 1,517 in property management [91]. - Total employee benefits expenses amounted to RMB 452 million, down 22.6% from RMB 584 million in the previous year [72].