Impairment and Development Costs - The company reported impairment losses for development properties and construction in progress amounting to HKD 286,782,000 and HKD 110,064,000 respectively[3]. - The estimated unrecovered construction cost is approximately RMB 445,100,000[25]. - The estimated value for the development project is approximately RMB 800,000,000, including RMB 638,000,000 for unsold properties and RMB 162,000,000 for ongoing construction[44]. Property Valuation and Pricing - The adjusted unit price for retail properties was calculated to be approximately RMB 12,500 per square meter[7]. - The adjusted unit price for comparable properties A and B was RMB 11,392 and RMB 13,687 respectively, with an average adjusted unit price of RMB 12,539[15]. - The average adjusted unit price for comparable properties was RMB 9,512, with a rounded and adopted price of RMB 9,500[18]. - The adjusted average price per square meter for comparable properties A and B is RMB 10,040, with A at RMB 11,503 and B at RMB 8,577[25]. - The average adjusted price per square meter for retail properties is RMB 9,500, considering property nature and location adjustments[37]. - The adjusted price per parking space for comparable properties A and B is RMB 80,250, with A at RMB 82,500 and B at RMB 78,000[41]. - The estimated total development value of the properties was determined by deducting projected total development costs from the market value[11]. Market Analysis and Adjustments - The company identified multiple relevant sales inquiries that comply with timing, use, and location criteria for valuation purposes[12]. - Adjustments were made based on the comparative properties' characteristics and locations, reflecting differences in physical attributes[19]. - The company recognized a downward adjustment due to the comparative properties' superior locations[6]. - The total adjustment range for property location is between -18% to 0%[23]. - The total adjustment range for retail property characteristics is between -11% to -10%[35]. Financial Performance and Margins - The average gross margin for 50 Chinese real estate companies in 2022 was around 18%, with 15 companies reporting margins between 18% and 30%[26]. - Profit margin calculated at 20% is considered reasonable for mixed-use development properties[45]. Company Strategy and Future Plans - The company plans to continue evaluating its real estate assets to ensure accurate valuations and strategic decisions moving forward[10]. Announcement Details - The English version of the announcement maintains all other disclosed information unchanged[46]. - The supplementary announcement should be read in conjunction with the annual report[46]. - Date of the announcement is July 16, 2024[47].
皇冠环球集团(00727) - 2024 - 年度业绩