Revenue Performance - For the six months ended June 30, 2021, the group's revenue was approximately RMB 876 million, a decrease of about RMB 464 million (34.6%) compared to the same period in 2020[9]. - Total revenue for the first half of 2021 was RMB 876,365 thousand, down from RMB 1,340,334 thousand in the same period of 2020[30]. - Revenue for the first half of 2021 was RMB 876,365 thousand, a decrease of 34.5% compared to RMB 1,340,334 thousand in the same period of 2020[146]. - The company's real estate development business generated revenue of RMB 106,792 thousand, accounting for 12.2% of total revenue, a significant decrease from RMB 661,190 thousand (49.3%) in the same period last year[30]. - The construction contracting business achieved revenue of approximately RMB 769 million, an increase of about RMB 90 million (13.3%) compared to the same period in 2020[9]. - The construction contracting business contributed RMB 769,573 thousand, representing 87.8% of total revenue, compared to RMB 679,144 thousand (50.7%) in the previous year[30]. Profitability - The group's gross profit and gross profit margin for the reporting period were approximately RMB 94 million and 10.7%, respectively[10]. - The net profit for the reporting period was approximately RMB 32 million, a decrease of about RMB 96 million (74.9%) compared to the same period in 2020[11]. - Gross profit for the first half of 2021 was RMB 93,840 thousand, down 68.5% from RMB 297,880 thousand in the first half of 2020[146]. - Profit before tax decreased to RMB 36,364 thousand, a decline of 83.1% from RMB 215,814 thousand in the previous year[146]. - The group's profit for the period was approximately RMB 32 million, a decline of 74.9% compared to approximately RMB 128 million in the same period of 2020[95]. Debt and Financial Ratios - As of June 30, 2021, the group's net capital debt ratio was approximately 27.2%, compared to 10.0% as of December 31, 2020[12]. - The capital debt ratio increased to 60.8% as of June 30, 2021, from 44.1% as of December 31, 2020[105]. - The current ratio as of June 30, 2021, was 1.14, compared to 1.15 as of December 31, 2020[105]. - The group had capital commitments of approximately RMB 483 million as of June 30, 2021, up from RMB 267 million as of December 31, 2020[108]. Real Estate Development - The total land reserve area was approximately 1,954,000 square meters, a decrease of about 1.6% from 1,986,000 square meters as of December 31, 2020[18]. - As of June 30, 2021, the company had a total of 1,200,000 square meters of completed and sellable real estate area, with 210.9 square meters remaining unsold[25]. - The group sold 787 out of 872 launched units in the Tianbao Green City project, representing a sales rate of approximately 90.2% as of June 30, 2021[34]. - The Tianbao Xinyuan project has sold 436 out of 480 units, achieving a sales rate of 91% since its launch in 2020[35]. - The Tianbao Smart Building Technology Park project has launched 1,816 units, with 296 units sold, indicating a sales rate of about 16.3%[36]. - The Tianbao Snow Lotus project has sold 855 out of 1,228 residential units, achieving a sales rate of approximately 69.6% since its pre-sale began in 2019[42]. - The Tianbao Platinum Bay project has sold 422 out of 720 residential units, representing a sales rate of about 58.6% as of June 30, 2021[45]. Construction Contracting - The construction contracting business signed new contracts worth approximately RMB 919 million, an increase of about RMB 582 million (172.7%) compared to the same period in 2020[19]. - The company has expanded its construction contracting business to 18 provinces and municipalities across the country, establishing new offices in several provinces[19]. - The company expects to continue undertaking complex and high-return large-scale building projects nationwide, leveraging its special qualifications obtained in 2017[58]. - The new contract value for industrial, commercial, and infrastructure construction projects was RMB 596.7 million, representing 65.0% of total new contracts[80]. Market and Strategic Outlook - The company plans to continue its strategy of "construction first, real estate follows," enhancing collaboration between real estate development and construction contracting[23]. - The company aims to improve its market share and construction contracting business revenue through qualification reforms and establishing subsidiaries in national markets[23]. - The government continues to support stable housing prices and promote healthy development in the real estate market, which may impact the company's future operations[22]. - The company is committed to advancing high-quality development under the "Belt and Road" initiative, which may open new opportunities for growth[22]. - The construction market in the second half of 2021 is expected to show a coexistence of new and old infrastructure, indicating a diverse ecosystem[22]. Corporate Governance and Shareholder Information - The board of directors has resolved not to recommend the payment of any interim dividend for the reporting period[13]. - The company did not declare any interim dividend during the reporting period, compared to an interim dividend of HKD 0.05 per share in the same period of 2020[137]. - The company has adopted a dividend policy that balances sufficient reserves for future development and shareholder returns[140]. - The group believes that the current arrangement of having the chairman also serve as the CEO will ensure consistent internal leadership and efficient strategic planning[120]. - The group has complied with all applicable corporate governance codes except for a minor deviation regarding the separation of the roles of chairman and CEO[120]. Employee and Operational Information - The total employee cost for the group during the reporting period was approximately RMB 9.5 million, a decrease from RMB 11 million in the same period of 2020[116]. - The total number of employees as of June 30, 2021, was 422, an increase from 391 employees on June 30, 2020[117]. - The group did not engage in any significant acquisitions or disposals during the reporting period[112]. - The group has adopted a share option plan to reward employees and directors for their contributions, with no options granted, exercised, or lapsed during the reporting period[128]. Cash Flow and Financial Position - The net cash flow from operating activities was RMB (145,187) thousand, while the net cash flow from investing activities was RMB (71,433) thousand, and financing activities generated a net cash flow of RMB 221,347 thousand[190]. - The cash and cash equivalents at the end of the period increased to RMB 188,646 thousand, compared to RMB 208,561 thousand at the end of the previous year[190]. - The company’s cash and bank balances, after deducting pledged deposits, amounted to RMB 453,975 thousand[190]. - The company’s total assets as of June 30, 2021, were RMB 1,351,356 thousand, reflecting an increase from the previous period[185]. - The company’s operating loss for the period was RMB (48,517) thousand, indicating challenges in operational performance[185].
中国天保集团(01427) - 2021 - 中期财报