Company Overview - Shenzhen Investment Limited has a land reserve with a planned total gross floor area close to 4.38 million square meters across various cities in China[21]. - The company focuses on property development, including residential, industrial, and commercial real estate, while intensifying its development in Shenzhen and the Greater Bay Area[21]. - Shenzhen Investment Limited has been listed on the Main Board of The Stock Exchange of Hong Kong Limited since 1997[21]. - The company is under the supervision of the State-owned Assets Supervision and Administration Commission of Shenzhen Municipal[21]. - The company aims to be a first-class real estate developer and operator in the Greater Bay Area[21]. Strategic Goals - The core strategic goal of the company is to promote long-term sustainable development, aiming to provide stable returns and create value appreciation for shareholders[22]. - The company is committed to optimizing its land reserves structure and concentrating its assets in key first- and second-tier cities[21]. - The company plans to expand its development in other core cities in China[21]. - The Group plans to upgrade its strategic position from a "real estate developer" to an "operation service provider for urban construction" to enhance shareholder returns[34]. - The Group aims to maintain stable operating indicators such as sales and rental income despite the impact of the epidemic[64]. Financial Performance - The company's revenue for the year ended December 31, 2019, was HK$14,919.47 million, a decrease of 10.35% compared to HK$16,642.77 million in 2018[27]. - Gross profit for 2019 was HK$5,125.12 million, down 14.17% from HK$5,970.98 million in 2018[27]. - Profit attributable to equity shareholders increased by 18.96% to HK$4,062.80 million from HK$3,415.22 million in 2018[27]. - The company reported a basic earnings per share of 47.53 HK cents, an increase of 13.36% from 41.93 HK cents in 2018[27]. - The net assets excluding non-controlling interests as of December 31, 2019, were HK$44,474.66 million, reflecting a 6.64% increase from HK$41,703.98 million in 2018[28]. Market Performance - The Group achieved a turnover of HK$14,919.5 million in 2019, representing a decrease of 10.4% compared to the previous year[41]. - The Group realized contracted sales of approximately RMB16.8 billion, marking a 2.1% increase from the previous year, with about 80% of sales coming from Shenzhen projects[42]. - The residential market in Shenzhen saw a 26.5% increase in trading area compared to last year, although the apartment market remained sluggish due to sales restrictions[36]. - Major projects like Shum Yip Zhongcheng and Qianhai Parkview Bay were highly popular, with Shum Yip Zhongcheng selling out on launch day and 90% of units in Qianhai Parkview Bay sold[43]. Operational Challenges - The real estate industry faced significant challenges due to the epidemic, impacting sales centers and construction commencement, with long-term effects expected on market sentiment and family income[53][55]. - The Group's proactive measures include waiving rent and enhancing property management to mitigate the epidemic's impact on operational efficiency[61]. - The Group is committed to sustainable development and resource exploration in the future, leveraging its high-quality assets and financial resources[64]. Corporate Social Responsibility - The Group initiated measures to support non-state-owned enterprises by waiving two months' rent during the epidemic, demonstrating corporate social responsibility[52][54]. - The Group actively supports community development and poverty alleviation efforts, particularly in response to the COVID-19 pandemic[193]. Governance and Management - Mr. HUANG Wei has been the Executive Director and President since July 21, 2015, with extensive management experience[151]. - Mr. MOU Yong has served as an Executive Director since December 1, 2009, and has a background in corporate governance and administrative management[153]. - The Group's profit for the year ended December 31, 2019, is detailed in the financial statements on pages 98 to 268[174]. Risk Management - Key risks include macroeconomic fluctuations and the impact of the COVID-19 pandemic on the Group's development and operations[177][178]. - The Group emphasizes legal compliance and conducts all business activities in accordance with applicable laws and regulations[175]. - Operational risks may arise from inadequate internal processes and external partner behaviors, leading the Group to enhance its management and internal control systems[186]. Future Outlook - The Group anticipates aggressive growth in land reserves, contracted sales, and recurring income over the next five years[76]. - The Group plans to deepen cooperation with its ultimate holding company to increase prime land reserves in Shenzhen and the Greater Bay Area[65]. - The Group will actively seek urban renewal project opportunities in key cities within the Guangdong-Hong Kong-Macao Greater Bay Area[65].
深圳控股(00604) - 2019 - 年度财报