Sales Performance - For the six months ended June 30, 2023, the group achieved contracted sales of approximately RMB 17,610 million, a decrease of 24.2% compared to RMB 23,241 million for the same period in 2022[11]. - The total contracted sales area for the same period was approximately 1,135,462 square meters, down from 1,532,058 square meters in the previous year, representing a decline of 26%[11]. - The company reported total revenue of approximately RMB 12,299 million for the six months ended June 30, 2023, a decrease of about 27.2% compared to RMB 16,897 million for the same period in 2022, primarily due to a reduction in property sales revenue[20]. - For the six months ended June 30, 2023, the group recorded property sales revenue of approximately RMB 9,827 million, a decrease of about 32.4% compared to RMB 14,547 million for the same period in 2022[21]. - The total area of properties sold and delivered was 669,481 square meters, with an average selling price of RMB 14,679 per square meter[22]. Financial Performance - The group recorded a gross profit of approximately RMB 3,548 million, down about 32.2% from RMB 5,233 million in the same period of 2022, with a gross margin of 28.8%[26]. - Core profit for the six months ended June 30, 2023, was approximately RMB 1,484 million, a decrease of about 34.6% from RMB 2,268 million in the same period of 2022[32]. - The profit attributable to the owners of the company was approximately RMB 94 million, a decrease of about 86.5% from RMB 698 million in the same period of 2022[31]. - The company reported a net profit of RMB 291,920 thousand for the six months ended June 30, 2023, compared to RMB 1,213,282 thousand in the prior year, reflecting a significant decline of approximately 76.0%[69]. - The group’s total borrowings as of June 30, 2023, amounted to approximately RMB 60,919 million, a decrease of about 3.4% from RMB 63,092 million as of December 31, 2022[34]. Investment and Development - The company continues to focus on property development as its main source of revenue amidst a challenging real estate market environment[9]. - The total land reserve held by the company is approximately 23.67 million square meters, with 20.61 million square meters under development and 3.06 million square meters reserved for future development[16]. - The company will continue to implement a "1+N" development strategy, focusing on the Yangtze River Delta while exploring other high-quality opportunities[16]. - The company has not disclosed any new product launches or technological advancements during this reporting period[73]. - The company did not hold any significant investments or engage in any major acquisitions or disposals during the six months ended June 30, 2023[42]. Market Environment - The policy environment remains supportive, with measures such as lowering down payments and mortgage rates to stimulate housing demand[10]. - The company anticipates that the real estate industry in China will continue to experience orderly loosening under the policy framework of "housing is for living, not for speculation" in the second half of 2023[17]. - Recent policy relaxations on pre-sale requirements are expected to enhance buyer interest and stimulate demand[79]. Corporate Governance - The company has maintained compliance with all applicable corporate governance codes as of June 30, 2023[57]. - The audit committee, consisting of three independent non-executive directors, has reviewed the interim report for the six months ended June 30, 2023, with no objections to the accounting treatments adopted[58]. - The company emphasizes the importance of effective corporate governance as a key factor in delivering greater value to shareholders[56]. Cash Flow and Liquidity - Operating cash flow for the six months ended June 30, 2023, was RMB 1,361,522 thousand, a decrease of 80.3% compared to RMB 6,889,094 thousand for the same period in 2022[72]. - Cash flow from financing activities resulted in a net outflow of RMB 3,707,116 thousand, a decrease from RMB 8,727,216 thousand in the prior year, reflecting reduced borrowing and repayment activities[72]. - The company continues to monitor foreign exchange fluctuations, with non-RMB financial assets or liabilities totaling approximately RMB 23,511 million as of June 30, 2023[41]. Employee and Management - The company employed a total of 10,466 full-time employees as of June 30, 2023, an increase from 10,046 employees as of December 31, 2022[43]. - The total compensation for key management personnel increased to RMB 11,475,000 in 2023 from RMB 9,159,000 in 2022, representing a growth of 25.2%[149]. Risks and Challenges - Financial risk factors include market risk, credit risk, and liquidity risk, which may impact the group's business[81]. - The management remains optimistic about the long-term fundamentals of the Chinese economy despite current market challenges[10].
宝龙地产(01238) - 2023 - 中期财报