中国海外发展(00688) - 2021 - 中期财报

Company Information and Financial Highlights Company Business Structure The company's core business covers property development, commercial property operations, and other real estate-related activities, with projects across 84 mainland Chinese cities, Hong Kong, Macau, and London - The company's main business is divided into three segments: property development, commercial properties, and other real estate-related businesses[3] - Property development business covers 84 cities in mainland China, extending to Hong Kong, Macau, and London, demonstrating broad geographical distribution[3] Financial Highlights The report presents key financial indicator trends from 2017 to H1 2021, including revenue and equity attributable to shareholders growth Equity Attributable to Shareholders Trend (RMB Billion) | Year | 2017 | 2018 | 2019 | 2020 | 2021 H1 | | :--- | :--- | :--- | :--- | :--- | :--- | | Amount (RMB Billion) | 2,108.2 | 2,317.4 | 2,642.9 | 2,950.9 | - | Company Information This section provides essential company information including board and committee members, registered office, company secretary, share registrar, legal advisors, auditors, principal bankers, listing details, and key financial calendar dates - The company's Chairman is Mr. Yan Jianguo, and the CEO is Mr. Zhang Zhichao[9] - The company's independent auditor is Ernst & Young[10] 2021 Interim Financial Calendar | Event | Date | | :--- | :--- | | Interim Results Announcement | August 23, 2021 | | Ex-dividend Date | September 16, 2021 | | Record Date | September 20, 2021 | | Dispatch of Dividend Warrants | October 5, 2021 | Chairman's Report Chairman Yan Jianguo reviews H1 2021 performance, highlighting steady growth amid tightening real estate policies, healthy financials, rational investment, and accelerated commercial asset development, expressing optimism for the industry and confidence in the Hong Kong property market Key Performance Indicators for H1 2021 | Indicator | Amount | YoY Growth | | :--- | :--- | :--- | | Revenue | RMB 107.88 Billion | +21.7% | | Operating Profit | RMB 31.40 Billion | - | | Gross Profit Margin | 28.5% | - | | Net Profit Margin | 19.3% | - | | Core Profit Attributable to Shareholders* | RMB 19.23 Billion | +10.9% | | Basic Earnings Per Share | RMB 1.90 | - | *Excluding fair value changes of investment properties after tax - The company maintains a healthy financial position, with a 60.2% asset-liability ratio and 33.8% net gearing ratio, not triggering the 'Three Red Lines' and remaining in the 'Green Category'; weighted average financing cost is 3.6%, among the lowest in the industry[15] - The Group's contracted sales reached RMB 207.21 billion, a 20.5% year-on-year increase; 49 new land parcels were added, with a total land premium of RMB 77.81 billion[16] - Commercial asset revenue reached RMB 2.50 billion, a 23.3% year-on-year increase; 15 commercial projects are expected to launch in H2, adding approximately 1.01 million square meters of commercial GFA[16] Management Discussion and Analysis Overall Performance In H1 2021, the Group achieved strong overall performance with revenue growing 21.7% to RMB 107.88 billion, maintaining industry-leading profitability and a 10.9% increase in core profit attributable to shareholders H1 2021 Overall Performance Overview | Indicator | Value | | :--- | :--- | | Revenue | RMB 107.88 Billion (+21.7% YoY) | | Operating Profit | RMB 31.40 Billion | | Gross Profit Margin | 28.5% | | Net Profit Margin | 19.3% | | Core Profit Attributable to Shareholders | RMB 19.23 Billion (+10.9% YoY) | | Basic Earnings Per Share | RMB 1.90 | Property Development Property development, a core revenue source, saw H1 revenue reach RMB 105.01 billion, up 21.6%, with contracted sales growing 20.5% to RMB 207.21 billion, and the land bank totaling 92.24 million square meters - Property development revenue was RMB 105.01 billion, a 21.6% year-on-year increase[19] - The Group's contracted sales amounted to RMB 207.21 billion, a 20.5% year-on-year increase; corresponding GFA sold was 10.50 million square meters, up 10.0% year-on-year[19] - During the period, 20 new land parcels were added in mainland China, with a total new GFA of 4.89 million square meters and a total land premium of RMB 51.30 billion[25] - As of June 30, 2021, the Group's total land bank reached 92.24 million square meters[27] Property Investment Investment property rental income grew 18.0% year-on-year to RMB 2.27 billion, with office rental income up 14.0% and shopping center rental income up 31.0%, though fair value gains on investment properties significantly decreased by 60.9% H1 2021 Investment Property Rental Income | Category | Revenue (RMB Billion) | YoY Growth (%) | | :--- | :--- | :--- | | Office Buildings | 1.74 | +14.0% | | Shopping Malls | 0.52 | +31.0% | | Total | 2.27 | +18.0% | - Fair value gains on investment properties were RMB 2.03 billion, a 60.9% year-on-year decrease[28] Liquidity, Financial Resources, and Debt Structure The Group maintains a robust financial position, adhering to 'Three Red Lines' regulations as a 'Green Category' enterprise, with a weighted average financing cost of 3.6%, total borrowings of RMB 228.45 billion, and ample available funds of RMB 170.49 billion - Under domestic 'Three Red Lines' regulatory policies, the Group did not trigger any red lines, qualifying as a 'Green Category' enterprise[29] - The weighted average financing cost was 3.6%, ranking among the industry's top tier[29] Debt and Liquidity Overview (As of June 30, 2021) | Indicator | Amount (RMB Billion) | | :--- | :--- | | Total Borrowings | 228.45 | | Borrowings Due Within One Year | 45.23 (19.8% of total) | | Bank Balances and Cash | 117.43 | | Unutilized Bank Facilities | 53.06 | | Available Funds | 170.49 | Sustainable Development The Group made significant ESG progress under its 'Four Good Company' strategy, adding 48 green building certified projects, enhancing SASB and TCFD disclosures, continuing rural revitalization efforts in Gansu, and employing 5,916 full-time staff - Enhanced governance by increasing references to the Sustainability Accounting Standards Board (SASB) Standards and the Task Force on Climate-related Financial Disclosures (TCFD) Recommendations in ESG reports[37] - During the period, 48 new green building certified projects were added, covering 8.01 million square meters, bringing the cumulative total certified GFA to 80.80 million square meters[37] - As of end-June 2021, the Group employed 5,916 full-time staff[38] - Continued to support rural revitalization in Zhuoni, Kangle, and Kang counties in Gansu, and developed the 'Yun Jian Wo Ye' quinoa brand[38][40] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2021, Group revenue increased 21.7% to RMB 107.88 billion, with profit attributable to shareholders slightly up 1.2% to RMB 20.78 billion, and basic earnings per share at RMB 1.90 Condensed Consolidated Statement of Profit or Loss Summary (For the six months ended June 30) | Indicator (RMB Thousand) | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Revenue | 107,879,151 | 88,625,398 | | Operating Profit | 31,396,439 | 31,261,975 | | Profit Before Tax | 32,528,050 | 33,373,292 | | Profit for the Period | 21,967,303 | 22,803,100 | | Profit Attributable to Shareholders of the Company | 20,778,666 | 20,526,531 | | Basic Earnings Per Share (RMB) | 1.90 | 1.87 | Condensed Consolidated Statement of Financial Position As of June 30, 2021, total assets reached RMB 858.34 billion, total liabilities were RMB 517.09 billion, and equity attributable to shareholders increased 4.4% to RMB 328.05 billion from end-2020 Condensed Consolidated Statement of Financial Position Summary | Indicator (RMB Thousand) | June 30, 2021 (Unaudited) | December 31, 2020 (Audited) | | :--- | :--- | :--- | | Non-current Assets | 196,435,298 | 187,404,193 | | Current Assets | 661,905,052 | 636,253,178 | | Total Assets | 858,340,350 | 823,657,371 | | Current Liabilities | 312,079,317 | 303,962,200 | | Non-current Liabilities | 205,014,048 | 191,345,851 | | Total Liabilities | 517,093,365 | 495,308,051 | | Equity Attributable to Shareholders of the Company | 328,054,227 | 314,146,531 | | Total Equity | 341,246,985 | 328,349,320 | Condensed Consolidated Statement of Cash Flows In H1 2021, net cash from operating activities was RMB 3.51 billion, net cash used in investing activities was RMB 3.61 billion, and net cash from financing activities was RMB 9.59 billion, resulting in a net increase in cash and cash equivalents of RMB 9.49 billion Condensed Consolidated Statement of Cash Flows Summary (For the six months ended June 30) | Indicator (RMB Thousand) | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 3,511,678 | 7,056,059 | | Net Cash Used in Investing Activities | (3,607,627) | (2,780,041) | | Net Cash from Financing Activities | 9,587,578 | 13,047,286 | | Net Increase in Cash and Cash Equivalents | 9,491,629 | 17,323,304 | | Cash and Cash Equivalents at Beginning of Period | 107,664,125 | 92,894,556 | | Cash and Cash Equivalents at End of Period | 117,029,159 | 110,391,906 | Notes to the Financial Statements This section provides detailed explanations and supplementary information for the condensed consolidated financial statements, covering basis of preparation, accounting policies, segment revenue, dividends, share capital changes, and related party transactions, with property development as the primary revenue source at 97.3% Segment Revenue (H1 2021) | Segment | Revenue (RMB Thousand) | | :--- | :--- | | Property Development | 105,011,144 | | Property Investment | 2,269,457 | | Other Businesses | 598,550 | | Total | 107,879,151 | - The Board declared an interim dividend of HK 45 Cents per share for the six months ended June 30, 2021, totaling approximately RMB 4.10 billion[95] - For the six months ended June 30, 2021, the company repurchased a total of 8.37 million shares for a total consideration of RMB 109 million, which have been cancelled[103] Other Information Interim Dividend and Share Matters The Board declared an interim dividend of HK 45 Cents per share and announced relevant dates; the company repurchased 8.37 million shares for approximately HK 131 million, while subsidiaries issued and redeemed various debt instruments - An interim dividend of HK 45 Cents per share was declared, with a record date of September 20, 2021[124][125] - In January 2021, the company repurchased 8.37 million shares on the Stock Exchange for a total consideration of approximately HK 131 million[126][127] - Subsidiaries including China Overseas Property Development and Beijing COLI Plaza actively utilized capital markets for financing during and after the period, issuing various debt instruments and timely redeeming matured securities[128][129][130][131] Directors', Chief Executives' and Major Shareholders' Interests in Securities This section discloses the interests of directors, chief executives, and major shareholders in company shares as of June 30, 2021, with China Overseas Holdings Limited holding approximately 51.32% and CITIC Group related companies holding about 10.01% of beneficial interests Major Shareholders' Shareholding (June 30, 2021) | Shareholder Name | Number of Shares Held (Beneficial Interest) | Percentage of Issued Shares (%) | | :--- | :--- | :--- | | China Overseas Holdings Limited | 5,616,813,755 | 51.32% | | China State Construction Engineering Corporation Limited | 6,138,078,683 | 56.08% | | China State Construction Group Co., Ltd. | 6,138,078,683 | 56.08% | | Complete Noble Limited | 1,095,620,154 | 10.01% | - Executive Directors Yan Jianguo, Luo Liang, Zhang Zhichao, Guo Guanghui, and Non-executive Director Zhuang Yong all hold share options granted under the share option scheme[136] Share Option Scheme The company adopted a ten-year share option scheme on June 11, 2018, to incentivize employees, with a maximum of 723.98 million shares available for grant, representing 6.61% of issued shares - The Share Option Scheme was adopted on June 11, 2018, with a ten-year validity period until June 10, 2028[146][147] - The maximum number of share options that can be granted under the scheme is 10% of the issued shares at the adoption date (approximately 1.096 billion shares)[146] - The exercise price shall not be less than the higher of the closing price on the grant date and the average closing price for the five trading days immediately preceding the grant date[147] Corporate Governance The company largely complied with the Corporate Governance Code in H1 2021, with all directors confirming adherence to securities dealing codes, and the Audit and Risk Management Committee reviewing the interim report - The company complied with the Code Provisions of the Corporate Governance Code, except for Code Provision A.4.1 (non-executive directors having no specific term of office)[150] - All Directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers, which is no less exacting than the Standard Code, during the reporting period[151] - The Audit and Risk Management Committee has reviewed the unaudited interim results[152]