Development Projects - As of June 30, 2021, the total gross floor area (GFA) held for development/sale by the Group was 1,000,000 square meters, with 100% attributable interest in 800,000 square meters[21]. - The Group completed several projects, including Qianlong Academy and Fullsun International Financial Centre, contributing to a total of 400,000 square meters of completed GFA[21]. - The expected completion year for the Xingru Jincheng Phase 3 project is 2022, with an attributable GFA of 92,559 square meters[21]. - The Group's project in Yatai Muyun Road is expected to complete in 2021, with a total GFA of 40,986 square meters[21]. - Fullsun Emerald Bay project in Yuelu District is projected to complete in 2022, with a total GFA of 168,997 square meters[21]. - The Group owned 15 projects under development and for sale, with a total gross floor area of approximately 1,411,962 sq.m. and attributable gross floor area of approximately 1,140,365 sq.m. as of June 30, 2021[35]. Financial Performance - The total revenue for the Group during the period was approximately RMB615,345,000, a decrease of 10.2% compared to the previous period (RMB685,191,000)[35]. - The loss attributable to owners of the Company for the period was approximately RMB168,672,000, compared to RMB372,292,000 in the previous period[35]. - Contracted sales amounted to approximately RMB330 million, down from RMB680 million in the previous period, with an estimated RMB300 million expected to be recognized as income in 2021[40]. - Revenue from property sales was approximately RMB614,753,000, a decrease of 9.7% from RMB680,740,000 in the previous period[41]. - Rental income for the period was approximately RMB592,000, significantly down from RMB4,451,000 in the previous period[42]. - The fair value loss on the Group's investment property portfolio was approximately RMB106,700,000, compared to RMB314,312,000 in the previous period[43]. - The gross profit for the same period was RMB 201,493,000, significantly up from RMB 69,345,000 in 2020, indicating an increase of approximately 190.5%[119]. - The loss for the period was RMB 72,689,000, compared to a loss of RMB 385,778,000 in the previous year, showing an improvement of approximately 81.1%[119]. - The total comprehensive expense for the period was RMB 84,864,000, compared to RMB 380,280,000 in the same period of 2020, reflecting a reduction of approximately 77.7%[119]. - The basic and diluted loss per share for the period was RMB 1.48, an improvement from RMB 3.28 in the previous year[124]. Operating Expenses - The Group's operating expenses included sales and distribution expenses of approximately RMB39,715,000, with a cost-to-revenue ratio of 6.45%[46]. - Administrative expenses for the period were approximately RMB22,049,000, with a cost-to-revenue ratio of 3.58%[46]. - Selling and distribution expenses were approximately RMB39,715,000, an increase of 65.8% from RMB23,974,000 in the previous period, resulting in a cost-income ratio of 6.45% compared to 3.50% previously[50]. - Administrative expenses decreased to approximately RMB22,049,000, down 41.2% from RMB37,547,000 in the previous period, with a cost-income ratio of 3.58% compared to 5.48% previously[50]. Debt and Liquidity - As of June 30, 2021, total bank and other borrowings were approximately RMB3,783,614,000, a decrease of 3.7% from RMB3,927,332,000 as of December 31, 2020[62]. - The net gearing ratio as of June 30, 2021, was 230.8%, an increase from 215.0% as of December 31, 2020[62]. - Current assets were approximately RMB11,063,590,000, a decrease of 3.8% from RMB11,502,663,000 as of December 31, 2020[63]. - Current liabilities were approximately RMB10,267,868,000, down 5.1% from RMB10,818,320,000 as of December 31, 2020[63]. - The Group intends to dispose of Splendor Keen Limited and its subsidiaries for HK$790,000,000 (approximately RMB657,343,000) to settle outstanding borrowings[154]. - The completion of the disposal is subject to certain conditions and requires shareholder approval at a special general meeting scheduled for 8 September 2021[154]. - The Group has agreed on the renewal and extension of borrowings amounting to RMB239,854,000 with certain lenders[149]. - The remaining borrowings of RMB2,431,046,000 are still under negotiation for extension[149]. Corporate Governance - The Audit Committee, comprising independent non-executive Directors, reviewed the interim financial report and discussed internal control and financial reporting matters[100]. - The company has complied with all applicable code provisions of the Corporate Governance Code, except for provision A.2.1 regarding the separation of the roles of chairman and chief executive[102]. - Mr. Pan Haoran temporarily performs the duties of chairman, while also serving as the chief executive officer since June 30, 2020[104]. - The company is committed to maintaining high standards of corporate governance and has established policies for compliance with regulatory requirements[102]. Market Outlook and Strategy - The management anticipates a positive market outlook driven by ongoing urbanization and infrastructure development in China[17]. - The Group is exploring new market expansion opportunities in the Greater Bay Area, aiming to increase its market share[17]. - The company is committed to enhancing its product offerings through new technology and innovation in real estate development[17]. - Future strategic initiatives include potential mergers and acquisitions to strengthen the Group's competitive position in the market[17]. - The Group aims to explore business opportunities in the mainland China property markets to broaden income streams and improve profitability[55]. - The Group plans to adopt flexible sales strategies to balance liquidity and profitability while seeking refinancing options for maturing debts[55]. Cash Flow and Assets - The company reported a net cash used in operating activities of RMB (64,459) thousand, a significant decrease compared to RMB 524,514 thousand for the same period in 2020[142]. - The net cash from investing activities was RMB 107,772 thousand, contrasting with a net cash used of RMB (219,736) thousand in the prior year[142]. - The net cash used in financing activities amounted to RMB (208,174) thousand, down from RMB (381,620) thousand in the previous year[146]. - The total cash and cash equivalents at the end of the period were RMB 417,039 thousand, a decrease from RMB 802,366 thousand at the beginning of the period[146]. - The company’s cash and cash equivalents, including restricted bank deposits, totaled RMB 625,353,000, down from RMB 814,500,000, a decline of about 23.1%[127]. - The total consolidated assets as of June 30, 2021, were RMB 12,588,148, reflecting the company's overall financial position[182]. Taxation - Income tax expense increased to approximately RMB41,782,000, up 92.8% from RMB21,666,000 in the previous period, primarily due to improved profitability in the property development segment[52]. - Current tax expenses for the six months ended June 30, 2021, included RMB 44,077 for PRC Enterprise Income Tax and RMB 20,847 for land appreciation tax[194]. - Deferred tax expenses for the same period were RMB 64,924, compared to a deferred tax benefit of RMB 23,142 in the prior year[194]. - The tax rate for PRC subsidiaries is set at 25% under the PRC Enterprise Income Tax Law[195].
福晟国际(00627) - 2021 - 中期财报