Financial Performance - The total revenue for the year was approximately RMB1,164,653,000, a decrease of 27.0% compared to the previous year (RMB1,596,181,000) [54]. - The loss attributable to owners of the company was RMB1,367,183,000, compared to a profit of RMB136,884,000 in the previous year [54]. - The basic and diluted loss per share was RMB12.03 cents, compared to earnings per share of RMB1.21 cents in the previous year [54]. - Contracted sales for the year amounted to approximately RMB960 million, down from RMB2.82 billion in the previous year, representing a decline of 65.9% [54]. - Revenue from property sales was approximately RMB1,157,866,000, a decrease of 24.0% from RMB1,522,963,000 in the previous year [54]. - The overall gross margin was approximately -18.1%, a significant decline from 24.6% in the previous year due to increased capitalized interest and acquisition costs [54]. - Rental income for the year was approximately RMB6,787,000, a significant drop from RMB73,218,000 in the previous year [57]. - The fair value loss on the investment property portfolio was approximately RMB606,772,000, compared to RMB49,889,000 in the previous year [60]. - Finance costs for the year were approximately RMB219,889,000, an increase from RMB99,671,000 in the previous year [64]. - Income tax expense for the year was approximately RMB2,551,000, a decrease from RMB153,553,000 in the previous year due to business losses [65]. - The Board does not recommend any final dividend for the year, consistent with the previous year [70]. Market Conditions - The Group reported a profit margin negatively impacted by rising operating and financing costs during the year [30]. - The commercial property market faced severe challenges due to weak leasing demand and the impact of COVID-19 [30]. - The pandemic led to delays in sales and project progress due to initial lockdowns in certain regions [30]. - The Group's performance was affected by the complex domestic and international environment, particularly the severe impact of the COVID-19 epidemic [30]. - The real estate market in the middle reaches of the Yangtze River Region, including Changsha, was significantly impacted by the pandemic [30]. - The overall economic recovery in China was better than expected, with employment and livelihood being sustained [30]. - The Group expects a general recovery in the macroeconomy of Mainland China and the Yangtze River Region in 2021, with real estate market confidence boosted and demand gradually increasing [32]. Strategic Responses - The Group fully resumed operations in the first half of the year and launched promotional activities in response to market conditions [30]. - The Group's strategic response included offering discounts to stimulate demand amid challenging market conditions [30]. - The Group will adopt a flexible sales strategy to balance liquidity and profitability, continuously reviewing and adjusting the existing project portfolio [34]. - The Group aims to refinance mature debts and reduce finance costs as the market recovers, seeking development opportunities in high-quality locations to improve profitability [34]. - The Group will focus on exploring business opportunities in the Mainland China and Hong Kong property sectors to broaden income streams [35]. - The Group plans to enhance product quality and reputation in the industry to drive overall business development and deliver better returns to shareholders [35]. - The Group will consider disposing of investment properties or projects without outstanding performance to optimize its project portfolio [34]. Assets and Liabilities - As of December 31, 2020, the Group's total gross floor area (GFA) for development/sales projects was 1,462,385 square meters, with various projects completed or under development [42]. - The Group's investment properties as of December 31, 2020, included a total GFA of 50,296 square meters [51]. - As of December 31, 2020, bank balances and cash amounted to approximately RMB582,121,000, down from RMB879,478,000 in 2019, indicating a decrease of about 33.8% [72]. - Total bank and other borrowings were approximately RMB3,927,332,000, a decrease from RMB4,414,448,000 in 2019, reflecting a reduction of about 11.0% [72]. - The net gearing ratio increased to 215.0% as of December 31, 2020, compared to 122.6% in 2019, indicating a significant rise in financial leverage [72]. - Current assets were approximately RMB11,502,663,000, an increase from RMB11,075,750,000 in 2019, showing a growth of about 3.9% [72]. - Current liabilities rose to approximately RMB10,818,320,000 from RMB9,379,695,000 in 2019, representing an increase of about 15.4% [72]. - Net assets decreased by approximately 49.0% to RMB1,453,146,000 from RMB2,851,181,000 in 2019 [72]. Corporate Governance - The Company experienced a change in its executive directors, with several resignations during the year, including the Chief Executive Officer [130]. - The Company has maintained directors' and officers' liability insurance throughout the year to cover legal actions arising from corporate activities [147]. - The Audit Committee, comprising three independent non-executive Directors, reviewed the Group's annual results for the year and confirmed compliance with relevant accounting standards [194]. - Deloitte resigned as the company's auditor due to a consensus not being reached on the audit fee for the year ended December 31, 2020 [196]. - PKF Hong Kong Limited was appointed as the new auditor effective January 29, 2021, and will hold office until the conclusion of the next annual general meeting [197]. Shareholder Information - The number of issued shares as of December 31, 2020, was 11,365,386,067 shares [86]. - The company issued convertible bonds with a principal amount of HK$200,000,000 (approximately RMB169,353,000) at an annual interest rate of 9% [86]. - The outstanding principal amount of RMB11,316,000 from the convertible bonds matured on December 1, 2020, and was fully repaid on February 10, 2021 [86]. - As of December 31, 2020, the Company had distributable reserves amounting to RMB1,047,541,000, a decrease from RMB1,454,041,000 as of December 31, 2019 [117]. - The five largest customers accounted for approximately 4.96% of the Group's total revenue, up from 1.5% in the previous year, with the largest customer contributing 1.3% [124]. - The five largest suppliers accounted for approximately 50.6% of the Group's total purchases, down from 57.6% in the previous year, with the largest supplier contributing 16.0% [124].
福晟国际(00627) - 2021 - 年度财报