Project Development - As of June 30, 2020, the total gross floor area (GFA) held for development/sale by the Group was 1,000,000 square meters, with 100% ownership in several projects[35] - The Group completed multiple projects, including Qianlong Academy and Qianlong Fine Art, both with a total GFA of 8,563 square meters each, marking a completion rate of 100%[35] - The Fullsun International Financial Centre has a total GFA of 91,740 square meters, with phases 1 and 2 completed in 2020[35] - The Group's project in Tianxin District, Xingru Jincheng, has a total GFA of 159,645 square meters, with 51% ownership and expected completion in 2022[35] - The Yatai Muyun Road Project, located in Tianxin District, has a total GFA of 40,986 square meters, with an expected completion in 2021[35] - Fullsun Emerald Bay, located in Yuelu District, has a total GFA of 168,997 square meters, with an expected completion in 2021[35] - The Group's projects are strategically located in key districts, enhancing market presence and potential sales[35] - The management is focused on expanding its project portfolio and increasing market share in the real estate sector[35] - Future projects are expected to contribute significantly to the Group's growth trajectory and overall market expansion strategy[35] Financial Performance - The total revenue for the Group was approximately RMB 685.19 million, an increase of 129% compared to the previous period (RMB 299.40 million) [50] - The loss attributable to owners of the Company was approximately RMB 372.29 million, compared to a profit of RMB 116.26 million in the previous period [50] - The basic loss per share was RMB 3.28 cents, while the diluted loss per share was also RMB 3.28 cents, compared to earnings per share of RMB 1.02 cents in the previous period [50] - Contracted sales during the period were approximately RMB 680 million, down from RMB 1.21 billion in the previous period, with an estimated RMB 430 million expected to be recognized as income in 2021 [55] - Property sales revenue was approximately RMB 680.74 million, a significant increase of 151% compared to RMB 270.77 million in the previous period [53] - Rental income for the period was approximately RMB 4.45 million, down from RMB 28.63 million in the previous period, primarily due to the adverse effects of the COVID-19 pandemic [54] - The Group recorded a revaluation loss of approximately RMB 314.31 million on its investment properties, compared to a revaluation gain of approximately RMB 9.98 million in the previous period [54] - Selling and distribution expenses were approximately RMB 23,974,000, with a cost-income ratio of 3.50%, down from 13.57% in the previous period[66] - Finance costs increased to approximately RMB 65,299,000 from RMB 37,389,000 in the previous period[67] - Income tax expense decreased to approximately RMB 21,666,000 from RMB 63,909,000 in the previous period[68] Assets and Liabilities - As of June 30, 2020, bank balances and cash amounted to approximately RMB802,366,000, down from RMB879,478,000 at the end of 2019[83] - Total bank and other borrowings were approximately RMB4,248,532,000, a decrease from RMB4,414,448,000 at the end of 2019[83] - The net gearing ratio as of June 30, 2020, was 129.9%, up from 122.6% at the end of 2019[83] - As of June 30, 2020, the Group's current assets were approximately RMB11,258,865,000, an increase from RMB11,075,750,000 as of December 31, 2019[84] - Current liabilities increased to approximately RMB10,733,938,000 from RMB9,379,695,000 as of December 31, 2019[84] - The Group's net assets decreased by approximately 13.3% to RMB2,470,901,000 from RMB2,851,181,000 as of December 31, 2019[84] - The Group's outstanding convertible bonds as of June 30, 2020, amounted to HK$27,000,000 (equivalent to RMB22,000,000), with no conversions during the period[93] - The Group's principal business operations and investments are primarily in mainland China and Hong Kong[85] Corporate Governance - The company has complied with all applicable code provisions of the Corporate Governance Code throughout the period, except for provision A.2.1[114] - The company is committed to maintaining high standards of corporate governance and has established policies for compliance with regulatory requirements[114] - The Audit Committee has reviewed the interim financial report and discussed internal control and financial reporting matters with management[112] - The company is actively seeking a suitable candidate to fill the vacancy of the chairman of the Board[122] - The beneficial owner, Zheng Jiaying, holds 6,416,140,000 shares, representing approximately 56.45% of the company's issued share capital[2] Employee Information - The Group has approximately 250 employees as of June 30, 2020, with remuneration based on market benchmarks[95] - The Group's employee benefits comply with relevant laws and regulations, including retirement benefit schemes in both Mainland China and Hong Kong[95] Cash Flow and Investments - For the six months ended June 30, 2020, the net cash from operating activities was RMB 524,514,000, a significant increase compared to a net cash used of RMB 327,470,000 in the same period of 2019[153] - The decrease in inventory of properties contributed RMB 340,220,000 to cash flows, contrasting with an increase of RMB 1,298,024,000 in the previous year[153] - The net cash used in investing activities was RMB 219,736,000, a reduction from RMB 1,191,101,000 in the prior year, indicating improved cash management[155] - Financing activities resulted in a net cash used of RMB 381,620,000, compared to a net cash inflow of RMB 1,213,200,000 in the same period last year[155] - Cash and cash equivalents at the end of the period were RMB 802,366,000, down from RMB 984,603,000 at the end of the previous year[155] Market Conditions - The fair value of commercial investment properties in Hong Kong was negatively impacted due to the COVID-19 pandemic and related quarantine measures[157] - The company reported a change in fair value of investment properties resulting in a loss of RMB 314,312,000 during the period[130] Shareholder Information - The number of issued shares remained at 11,365,386,067 as of both January 1, 2020, and June 30, 2020[92] - The total number of shares issued as of June 30, 2020, is 11,365,386,067 shares[2] - The maximum number of share options available for issue under the share option scheme is 1,123,674,979 shares, with no options granted since its adoption[111] - The weighted average number of ordinary shares for the purpose of diluted earnings per share was 11,365,386,067 for the period ended June 30, 2020, compared to 11,488,113,432 in the prior year[196] Financial Adjustments - The share premium was reduced by RMB 5,000,000,000 to offset accumulated losses, as approved by shareholders in May 2019[147] - The company's capital reserve reflects the difference between the issued share capital and share premium, amounting to RMB 85,940,000 as of June 30, 2020[141] - The company has a statutory reserve requirement to transfer 10% of profit after taxation until it reaches 50% of registered capital[150]
福晟国际(00627) - 2020 - 中期财报