Financial Performance - For the six months ended June 30, 2024, the group's revenue was RMB 25,134.11 million, with a gross profit of RMB 2,321.03 million[2]. - The core net profit for the period was RMB 642.47 million, with the attributable core net profit to the company amounting to RMB 418.56 million[2]. - The net profit before tax for the period was RMB 1,223.92 million, down from RMB 2,750.83 million in the previous year[6]. - The total comprehensive income for the period was RMB 596.18 million, compared to RMB 1,665.50 million in the same period last year[6]. - The company's profit attributable to shareholders for the six months ended June 30, 2024, is RMB 375,869,000, a decrease of 52% from RMB 782,097,000 in the same period of 2023[32]. - The basic earnings per share for the six months ended June 30, 2024, is RMB 0.26, down from RMB 0.58 in the same period of 2023, reflecting a decline of 55%[32]. - Operating profit fell by 86.5% to RMB 351.32 million, down from RMB 2,609.93 million in the same period of 2023[58]. - The group's gross profit decreased by 51.6% to RMB 2,321.03 million, down from RMB 4,792.27 million in the same period of 2023, mainly due to higher costs of recognized projects and increased impairment provisions for property development projects[65]. Revenue Breakdown - For the six months ended June 30, 2024, total revenue from property development and sales was RMB 24,104,751, a decrease of 32% from RMB 35,466,736 for the same period in 2023[19]. - Revenue from property management services increased to RMB 840,101, up 16% from RMB 724,887 in the previous year[19]. - The group's property development and sales recognized revenue was RMB 24,104.75 million, a decrease of 32.0% compared to RMB 35,466.74 million in the same period of 2023, primarily due to a reduction in recognized sales area[61]. - The group's property management service revenue increased by 15.9% to RMB 840.10 million, up from RMB 724.89 million in the same period of 2023, mainly due to an increase in the managed property area[62]. - The group's commercial property investment and operation revenue rose by 32.4% to RMB 189.26 million, compared to RMB 142.96 million in the same period of 2023, driven by property leasing services and cultural tourism project development[63]. Debt and Liabilities - As of June 30, 2024, the total interest-bearing debt was RMB 37.11 billion, a decrease of 2.5% compared to the end of the previous year[2]. - The company's total equity as of June 30, 2024, is CNY 47,148,088, a decrease from CNY 50,118,747 as of December 31, 2023, representing a decline of approximately 3.86%[9]. - Total liabilities decreased to CNY 131,849,953 from CNY 151,460,458, indicating a reduction of about 12.97%[10]. - The total liabilities as of June 30, 2024, were RMB 55,404,974,000, a decrease from RMB 59,525,590,000 as of December 31, 2023[44]. - The company's bank and other borrowings decreased to CNY 17,405,140 from CNY 19,202,605, a reduction of about 9.36%[10]. - The group's total borrowings were RMB 37,105.17 million, with a net debt ratio of 50.1%, up from 35.8% as of December 31, 2023, primarily due to a decrease in total cash and bank deposits[73]. Cash Flow and Financial Management - The company plans to accelerate the pre-sale and sale of properties under construction and completed properties to improve cash flow, which has been negatively impacted by the ongoing decline in the Chinese real estate market since 2021[12]. - The average actual interest rate on total borrowings during the reporting period was 4.54%[2]. - The company will continue to control sales and marketing expenses as well as administrative costs to manage cash flow effectively[12]. - The total amount of non-controlling interests decreased to CNY 21,949,151 from CNY 24,809,433, a decline of approximately 11.48%[9]. - The company has confirmed that its major shareholder intends to provide ongoing financial support to ensure the company can meet its financial obligations[12]. Market and Strategic Initiatives - The company is actively exploring new models for real estate development to adapt to the ongoing market adjustments and ensure high-quality growth[46]. - The company is focusing on providing quality housing and services as a strategy to navigate the challenging real estate market[46]. - The company aims to restructure its real estate development business to reduce debt and credit risk, focusing on a new business model that integrates development, property management, asset operation, and real estate technology[48]. - The company plans to integrate five self-operated commercial entities into its commercial business segment to enhance asset operation and management capabilities[52]. - The company is committed to exploring new value-added services in residential, industrial park, and healthcare sectors, aiming to create a comprehensive service system[50]. Corporate Governance and Compliance - The company has established an Audit Committee to assist the Board in the independent review of financial statements, risk management, and internal control systems[96]. - The company has complied with the Corporate Governance Code throughout the six months ended June 30, 2024, except for the separation of roles between the Chairman and CEO[94]. - The Chairman and CEO, Mr. Hao Hengle, has been serving in both roles, which the Board believes is beneficial for executing the company's long-term strategic goals[94]. - The company has appointed external internal control consultants annually to conduct a top ten risk assessment to identify and mitigate potential risks[95]. Employee and Shareholder Matters - As of June 30, 2024, the company employed 9,593 full-time employees, primarily located in China[85]. - The company has issued stock options and reward shares to incentivize eligible participants under the 2020 and 2021 plans, which have now been terminated in favor of new plans[86]. - The total number of new shares that can be granted under the 2024 Share Option Plan is capped at 143,541,148 shares, representing approximately 10% of the total shares issued as of May 24, 2024[91]. - The company did not declare an interim dividend for the six months ended June 30, 2024, compared to no dividend declared in the same period of 2023[97].
美的置业(03990) - 2024 - 中期业绩