SHUI ON LAND(00272)2024-04-19 06:32Financial Performance - Revenue for the year ended December 31, 2023, was RMB 9,752 million, a decrease of 37% from RMB 15,565 million in 2022[6] - Gross profit for 2023 was RMB 5,045 million, down 24% from RMB 6,649 million in 2022, resulting in a gross margin of 52%[6] - The company's attributable profit for the year was RMB 810 million, a decline of 10% compared to RMB 906 million in 2022[6] - The company recorded a net profit of RMB 1.397 billion, with attributable profit to shareholders amounting to RMB 810 million[23] - The total property sales confirmed during the year reached RMB 38.565 billion, a significant increase from RMB 12.972 billion in 2022[23] - The total recognized property sales for the group in 2023 was RMB 5.898 billion, compared to RMB 11.695 billion in 2022[112] - The total contracted property sales for 2023 amounted to RMB 11.396 billion, a decrease of 58% from RMB 27.219 billion in 2022, with residential property sales accounting for 63% of the total[112] - The annual profit for 2023 was RMB 1.397 billion, down from RMB 1.475 billion in 2022, with attributable profit to shareholders at RMB 810 million, a decrease of 11%[171] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 100,998 million, a decrease from RMB 104,878 million in 2022[7] - The net debt-to-equity ratio increased to 52% in 2023 from 45% in 2022[7] - The company held cash and bank balances of RMB 8,917 million, down from RMB 13,368 million in 2022[7] - The company’s debt-to-asset ratio remained stable at 52% as of December 31, 2023, with total cash and bank deposits amounting to RMB 8.917 billion[23] - The net debt as of December 31, 2023, was RMB 23.016 billion, an increase from RMB 20.144 billion in 2022, with a net asset liability ratio of 52%[176] - The group had pledged assets totaling RMB 42.30 billion as of December 31, 2023, up from RMB 35.54 billion in 2022, to secure borrowings of RMB 16.21 billion, an increase from RMB 10.66 billion in the previous year[179] Dividends and Shareholder Returns - The company plans to distribute a final dividend of HKD 0.058 per share, down from HKD 0.064 in 2022[6] - The company proposed a final dividend of HKD 0.058 per share for 2023, down from HKD 0.064 per share in 2022[173] Development Projects and Sales - The company has a land reserve of 8.5 million square meters, with 6.2 million square meters available for lease and sale[4] - The company established a joint venture in April 2023 for a multi-purpose development project in Shanghai, focusing on residential, commercial, and supporting facilities[15] - The total estimated construction area for the Wuhan Changjiang Tiandi project is 751,000 square meters, with the first batch of residential units launched in September 2023[62] - The company plans to launch several key projects in Shanghai in 2024, including the Pacific New World Commercial Center and two high-end residential projects[37] - The company achieved a contract property sales total of RMB 11.396 billion in 2023, with an additional RMB 367 million in subscribed sales expected to convert in the coming months[29] Sustainability and ESG Initiatives - The group signed a strategic cooperation agreement with CLP Group to provide green electricity for its commercial properties, increasing the share of renewable energy in total electricity consumption from 15% in 2022 to 20% in 2023[17] - 96% of the existing assets have received at least one green or healthy building certification, demonstrating the company's commitment to sustainability[17] - The company aims to reduce energy consumption intensity of existing properties by 20% by 2030 compared to 2019 levels[34] - The company has received multiple ESG ratings upgrades, including a 5-star rating from GRESB and an AA rating from Morgan Stanley Capital International[35] - The company is committed to supporting biodiversity in urban habitats through a memorandum of understanding with the Nature Conservancy[34] Market Conditions and Challenges - The company anticipates continued challenges in the real estate sector, with potential financial crises for more developers and a slow recovery in the Chinese economy[39] - In 2023, the Chinese residential market remained sluggish, with financing for developers down over 35% from the peak in 2021, and land sales and new housing starts declining by 13.2% and 20.9% respectively[187] - In Shanghai, the net absorption of Grade A office space decreased by 27% to 381,686 square meters in 2023, with vacancy rates rising to 22.9%[189] Rental Income and Property Management - Rental and related income from the commercial property portfolio totaled RMB 3.243 billion, representing a year-on-year growth of 16%[23] - The total rental and related income for the year increased to RMB 3.243 billion, representing a year-on-year growth of 16%[96] - The overall occupancy rate for the group's properties as of December 31, 2023, was 93%, up from 90% in 2022, reflecting a 3 percentage point increase[135] - The rental income from joint ventures and associates amounted to RMB 348 million for 2023, an 8% increase from RMB 323 million in 2022[136] Future Outlook - The group plans to launch more development projects in 2024 and beyond, depending on market recovery and project progress[112] - The total area available for sale and pre-sale in 2024 is approximately 252,800 square meters, covering eight projects[117] - The company aims to maintain a balance between the sustainability and flexibility of funds through a combination of internal resources, bank borrowings, and debt financing[181]