Revenue Performance - For the first half of 2024, the company's revenue was approximately RMB 5,234.0 million, a decrease of 29.8% compared to RMB 7,454.0 million in the same period of 2023[16]. - Property development revenue for the first half of 2024 was approximately RMB 4,421.2 million, down 33.1% from RMB 6,604.1 million in the same period of 2023[16]. - The company's equity consolidated revenue for the first half of 2024 was approximately RMB 7,397.7 million, a decrease of 48.8% from RMB 14,446.8 million in the same period of 2023[16]. - Investment property revenue for the first half of 2024 was approximately RMB 447.4 million, a slight decrease of 1.7% from RMB 455.0 million in the same period of 2023[17]. - Hotel operations revenue for the first half of 2024 was approximately RMB 365.4 million, down 7.5% from RMB 394.9 million in the same period of 2023, primarily due to the sale of one hotel[17]. - Other income and net gains for the six months ended June 30, 2024, were approximately RMB 510.0 million, down 42.1% from RMB 881.3 million in the same period of 2023[21]. - Total revenue for the six months ended June 30, 2024, was RMB 5,233,954, a decrease of 29.3% from RMB 7,453,959 in the same period of 2023[72]. - Property sales revenue amounted to RMB 4,421,186, down 33.0% from RMB 6,604,073 in the previous year[72]. - Hotel operation revenue decreased to RMB 365,388, compared to RMB 394,920 in the prior year, reflecting a decline of 7.5%[72]. - Total rental income was RMB 447,380, slightly down from RMB 454,966, a decrease of 1.2%[72]. Cost and Expenses - The company's cost of sales for the first half of 2024 was approximately RMB 5,136.1 million, a decrease of 26.7% from RMB 7,011.6 million in the same period of 2023[18]. - The group's other operating expenses for the six months ended June 30, 2024, were approximately RMB 3,917.5 million, an increase from RMB 2,509.8 million in the same period of 2023, primarily due to property development impairment losses[21]. - The company's administrative expenses increased slightly to RMB 745,547 thousand from RMB 733,228 thousand in the previous year[58]. - The company's marketing expenses decreased to RMB 453,636 thousand from RMB 590,129 thousand in 2023, reflecting a cost-saving strategy[58]. - The total cost of property, plant, and equipment acquired for the six months ended June 30, 2024, was approximately RMB 67,135,000, significantly lower than RMB 235,411,000 in the same period of 2023, indicating a reduction of about 71%[87]. Profitability and Loss - The group's gross profit for the six months ended June 30, 2024, was approximately RMB 97.8 million, a decrease of 77.9% compared to RMB 442.4 million in the same period of 2023, with a gross margin of 1.9% (2023: 5.9%) [20]. - The company reported a net loss of RMB 8,133,016 thousand for the six months ended June 30, 2024, compared to a net loss of RMB 9,928,935 thousand in 2023, representing a 18.1% improvement[58]. - The company reported a loss attributable to owners of the company of RMB 8,223,670,000 for the six months ended June 30, 2024, compared to RMB 9,888,712,000 in the same period of 2023, showing a decrease in loss[86]. - The company’s total comprehensive loss for the period was RMB 8,364,380 thousand, an improvement from RMB 10,997,765 thousand in the previous year, marking a 24.0% reduction in comprehensive losses[59]. - The group reported a pre-tax loss of RMB 7,819,148 for the period, compared to a loss of RMB 8,133,016 in the previous year[75]. Financial Position - The group's cash and bank balances as of June 30, 2024, were approximately RMB 1,515.7 million, down from RMB 1,719.4 million as of December 31, 2023[26]. - The company's total liabilities increased to RMB 147,847,196 thousand as of June 30, 2024, compared to RMB 149,395,704 thousand as of December 31, 2023, indicating a slight decrease of 1.0%[61]. - The net assets of the company were reported at RMB 9,706,310 thousand as of June 30, 2024, down from RMB 18,070,691 thousand as of December 31, 2023, a significant decline of 46.3%[61]. - The company’s equity attributable to owners decreased to RMB 4,377,465 thousand as of June 30, 2024, down from RMB 12,731,934 thousand as of December 31, 2023, a decline of 65.6%[61]. - The company’s cash flow from operating activities showed a positive trend, with a net cash inflow of RMB 1,429,161 thousand after changes in working capital[63]. Debt and Financing - The group's financing costs for the six months ended June 30, 2024, were approximately RMB 1,910.5 million, an increase from RMB 1,334.7 million in the same period of 2023[23]. - The group has defaulted on certain US dollar-denominated senior notes and bank borrowings, totaling approximately RMB 34,368,777,000 as of June 30, 2024, raising significant concerns about its ability to continue as a going concern[67]. - The group provided guarantees related to mortgage financing for buyers amounting to approximately RMB 12,140.3 million as of June 30, 2024, down from RMB 13,484.3 million as of December 31, 2023[31]. - The company issued priority notes totaling USD 350,000,000 with an annual interest rate of 7.875%, equivalent to approximately RMB 2,343,495,000[93]. - The company has outstanding principal amounts of USD 458,000,000 in priority notes, which remain unpaid[94]. Market and Operational Strategy - The group continues to focus on residential and commercial property development while emphasizing environmental, social, and governance (ESG) practices for sustainable development[14]. - The overall real estate market in China remains in a deep adjustment phase, with new home sales continuing to decline, necessitating time to assess the effectiveness of government policies[32]. - The group plans to continue optimizing its capital structure and managing debt and cash flow, with a focus on "grabbing sales and promoting collections" in the second half of 2024[36]. - The group aims to ensure project completion and customer rights protection by focusing on ready-to-move-in and near-ready properties in the second half of 2024[36]. - The group is actively engaging with various interested parties to sell commercial properties, hotels, and non-core assets to improve cash flow[68]. Employee and Management - The group employed approximately 1,940 employees as of June 30, 2024, with total employee costs amounting to approximately RMB 236.6 million for the six months ended June 30, 2024[44]. - The total remuneration for key management personnel for the six months ended June 30, 2024, is RMB 7,517,000, a decrease from RMB 8,988,000 in the same period of 2023[113]. - The group has established a share incentive plan and stock option plan to reward and motivate eligible participants, aiding in talent retention[44]. - The group continues to provide training and development programs for all employees to support their growth[44]. Shareholder Information - The group has a total of 1,993,803,152 shares held by Kong Jianmin, representing approximately 58.32% of the issued share capital as of June 30, 2024[45]. - The company’s major shareholder, Jin De, holds 1,299,046,500 shares, representing 49.67% of the total shares[49]. - The company’s other major shareholders include Ying Ming with 295,703,152 shares (8.65%) and Zheng Fu with 254,715,000 shares[48]. - The company has a total of RMB 8,859,162,000 in bank loans with fixed interest rates as of June 30, 2024, down from RMB 9,487,251,000 as of December 31, 2023[92].
合景泰富集团(01813) - 2024 - 中期财报