Financial Performance - For the first half of 2024, the group recorded sales revenue of RMB 2,326.9 million, representing a year-on-year increase of 382.5%[4] - The group reported a loss attributable to equity holders of RMB 617.0 million, compared to a loss of RMB 686.5 million in the same period of 2023[5] - The basic loss per share attributable to equity holders was RMB 0.08, compared to RMB 0.09 in the same period of 2023[5] - The company recorded a comprehensive sales revenue of RMB 2,326.9 million for the first half of 2024, a 382.5% increase compared to RMB 482.3 million in the same period of 2023[24] - The company reported a net loss attributable to owners of RMB 617.0 million, a decrease of 10.1% compared to RMB 686.5 million in the same period of 2023[34] - The company reported a pre-tax loss of RMB 251.5 million for the six months ended June 30, 2024, a decrease of 63.2% compared to RMB 682.7 million in the same period of 2023[32] - The company reported a pre-tax loss of RMB 616,972,000 for the six months ended June 30, 2024, compared to a loss of RMB 686,466,000 for the same period in 2023, indicating a decrease in losses by approximately 10%[116] Sales and Market Trends - The real estate contract sales amounted to RMB 380.8 million, with a total sales area of 19,472 square meters[4] - The group delivered a total floor area of 34,504 square meters during the first half of 2024[5] - The average confirmed selling price (excluding internal decoration income) for the first half of 2024 was RMB 57,945 per square meter, up 320.6% from RMB 13,776 per square meter in the same period of 2023[11] - The total area sold and delivered decreased by 1.4% from 35,010 square meters in the first half of 2023 to 34,504 square meters in the first half of 2024[11] - The majority of sales revenue, RMB 2,218.3 million, came from properties located in Shanghai, accounting for 95.3% of the total confirmed sales revenue[11] - The real estate market faced significant challenges, with a decline in new housing market transactions and a drop in land supply and demand by over 30% year-on-year across 300 cities[10] - The sales amount from the Yangtze River Delta region accounted for 75.7% of total real estate sales, with RMB 288.2 million in sales, showing a slight increase of 2.7% year-on-year[14] - The sales amount in the Bohai Rim region dropped significantly by 95.8% to RMB 2.9 million, while the Northeast region saw a decrease of 52.5% to RMB 55.3 million[14] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 43,716.6 million, down from RMB 44,828.1 million as of December 31, 2023[7] - Total liabilities were RMB 47,155.6 million, compared to RMB 47,650.1 million at the end of 2023[7] - The group experienced a total equity deficit of RMB 3,438.998 million as of June 30, 2024, worsening from RMB 2,822.0 million at the end of 2023[7] - As of June 30, 2024, total current assets were approximately RMB 19,958.0 million, a decrease of 5.3% from RMB 21,077.6 million as of December 31, 2023[35] - The total current liabilities as of June 30, 2024, were RMB 44,747.6 million, a decrease of 1.1% from RMB 45,267.4 million as of December 31, 2023[35] - The company’s cash and cash equivalents as of June 30, 2024, were RMB 150.6 million, down from RMB 241.9 million as of December 31, 2023[36] - The total borrowings as of June 30, 2024, were RMB 23,699.4 million, an increase of 4.6% from RMB 22,663.4 million as of December 31, 2023[36] - The company has recorded a cumulative loss of RMB 11,465.1 million as of June 30, 2024, with current liabilities exceeding current assets by RMB 24,789.6 million[38] Operational Strategies - The group focused on ensuring project completion and stability in cash flow management to navigate the challenging market environment[10] - The group emphasized the importance of policy support for sales and coordinated financial arrangements to maintain operational stability[10] - The company plans to maintain a prudent financial policy to reduce debt levels and operational pressure, ensuring financial safety and stability[23] - The company will focus on enhancing sales efforts for existing commercial products and improving the liquidity of residential and commercial projects[22] - The company aims to accelerate the pre-sale and sale of its developed and under-development properties, including unsold units and available parking spaces[39] - The group continues to execute a cautious land acquisition strategy, with no new land purchases in the first half of 2024, focusing on cash flow and financial resources[17] Governance and Shareholder Information - The company aims to provide stable and sustainable returns to shareholders through a consistent dividend policy, which is subject to the board's discretion[59] - The board consists of six members, with two females, representing 33.3% gender diversity[58] - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[72] - The total number of ordinary shares issued by the company is 7,792,645,623[63] - Mr. Zhang Zhiyong holds 5,275,922,436 shares, representing approximately 67.70% of the company's issued shares[65] - The company has granted a total of 632,388,000 share options under its share option scheme, with 629,995,000 options accepted and exercisable at HKD 0.45 per share until February 3, 2024[68] Financial Costs and Expenses - The total financial costs for the six months ended June 30, 2024, amounted to RMB 1,098.1 million, an increase of 37.6% from RMB 798.3 million in the same period of 2023[31] - Sales costs increased to RMB 1,545.8 million, a 334.9% rise from RMB 355.4 million in the same period of 2023, primarily due to high-value properties sold from the Shanghai project[26] - The company incurred financial costs of RMB 881,864 thousand, which increased from RMB 542,782 thousand in the previous year, marking a rise of about 62%[75] - The company reported a current tax expense of RMB 393,295,000, significantly higher than RMB 104,647,000 in the prior year, indicating an increase of approximately 275%[114] Market Outlook - The company anticipates a gradual recovery in the real estate market in the second half of 2024, supported by policy optimization and improved market sentiment[22] - The group anticipates that contract sales will remain at a low level over the next 12 to 18 months due to adverse impacts from economic uncertainty and government regulations[83] - The company expects to see a slow bottoming out of the market, with a potential mild recovery in certain regions as policies take effect[22]
恒盛地产(00845) - 2024 - 中期财报