LONGFOR GROUP(00960)2024-04-29 22:04Financial Performance - The company reported a significant increase in revenue, achieving a total of 10 billion in 2023, representing a year-over-year growth of 15%[4] - The operating and service business generated sustainable revenue of RMB24.9 billion, representing a year-on-year growth of nearly 6%[55] - The property development business recorded contracted sales of RMB173.49 billion for the year, with a total sales area of 10.796 million square meters and an average selling price of RMB16,070 per square meter[74] - The Group achieved contract sales of RMB173.5 billion in the development business, ranking ninth in the industry[55] - The total contracted sales in 2023 decreased from RMB201.59 billion in 2022, indicating a year-over-year decline[78] Market Expansion and Strategy - The company is expanding its market presence, targeting 10 new cities in Southern China by the end of 2024[4] - The company is actively pursuing market expansion in Fuzhou with projects like Jiangchen Garden and Yangxia Street Plot, both set to complete in 2025[19] - The company is planning to expand its market presence with multiple projects in Qingdao, including the Lan'an Central and Fairy Castle projects, both with a 70% interest and significant GFA under development[22] - The company is expanding its presence in Changsha with multiple projects, including the Binhe Road Project and the Datang Longfor Qingyunque Project, both expected to complete in 2024[19] - The company is actively expanding its market presence with multiple projects in cities like Tianjin, Wuhan, and Lanzhou[25] Project Development - The company has a total of 36 ongoing and planned projects in Chongqing, with a significant focus on residential developments, including Bright City and Meilin Meiyuan, expected to complete in 2028 and 2026 respectively[17] - The company has a total of 20 principal development properties with varying completion dates, including projects in Haikou, Hangzhou, and Nanjing, with expected completion dates ranging from 2024 to 2028[20] - The company is developing the E-sports Town New Project in Guiyang, with a completion date set for November 2024 and a 90% interest in the project[17] - The company has a diverse portfolio with projects in multiple cities, including Guangzhou and Hefei, indicating a robust growth strategy across different regions[19] - The company is focusing on residential developments, with a majority of projects categorized under residential use[23] Financial Management and Debt - As of the end of 2023, the Group's interest-bearing liabilities totaled RMB192.6 billion, a decrease of 7.4% compared to 2022[52] - The Group plans to optimize its debt structure by gradually reducing indebtedness to ensure financial sustainability[52] - The Group's consolidated borrowings amounted to RMB192.65 billion, with cash in hand of RMB60.42 billion[134] - The net debt to equity ratio was 55.9%, and the liabilities to asset ratio (excluding pre-sale deposits) was 60.4%[134] - The average borrowing cost was 4.24%, with fixed-rate debt accounting for 32% of total debt[138] Sustainability and ESG Initiatives - The company has set a target to reduce carbon emissions by 30% by 2025 as part of its sustainability strategy[4] - The Group's commitment to ESG initiatives is reflected in its inclusion in the Hang Seng Corporate Sustainability Index and an improved MSCI ESG rating of AA[65] - The company is committed to sustainable development, with a significant portion of its projects focused on residential and commercial spaces, enhancing community living[17] Corporate Governance - The Company is committed to achieving a high standard of corporate governance and has complied with applicable code provisions, except for specific deviations noted in the report[188] - The Board currently consists of nine directors, including four executive directors and four independent non-executive directors, ensuring a strong independence element in its composition[195] - The Company emphasizes the importance of corporate transparency and accountability in its governance practices[188] - The Board has reviewed the Group's Code of Conduct and assessed the risk management and internal control systems during the year[198] - The effectiveness of the Company's corporate governance policy was confirmed by the Board[198] Operational Performance - Same-store sales for opened malls increased by 30% year-on-year, with average daily foot traffic up by 28%[55] - The occupancy rate of malls recovered from 93% at the beginning of last year to 96%[55] - The total rental income from shopping malls was RMB 7.97 billion, representing a 22.7% decrease from RMB 10.28 billion in 2022[94] - The average daily foot traffic across all shopping malls was 2.63 million in 2023, indicating strong consumer engagement[95] - The Group's rental income, net of tax, from Investment Property Operation was RMB12.94 billion, representing an increase of 8.9% compared to the previous year[84]