Financial Performance - In the first half of 2021, the company recorded sales revenue of RMB 329.8 million, a decrease of 16.9% year-on-year[9]. - The company reported a loss attributable to shareholders of RMB 1,427.1 million, compared to a profit of RMB 59.9 million in the same period of 2020[9]. - The average confirmed selling price (excluding internal decoration income) was RMB 10,000 per square meter, down 63.8% from RMB 27,651 per square meter in the same period last year[23]. - The group recorded a consolidated gross profit of RMB 5.1 million for the six months ended June 30, 2021, down from RMB 35.3 million in the same period of 2020, resulting in a gross margin of 1.5%[63]. - The net loss for the period was RMB 1,433,931,000, compared to a profit of RMB 52,899,000 in the previous year, reflecting a substantial deterioration in financial performance[158]. - The company recorded a net cash outflow from operating activities of RMB 258.8 million for the six months ended June 30, 2021[89]. - The company experienced significant financial costs that could not be capitalized, leading to substantial losses in the first half of 2021[52]. Sales and Revenue - Real estate contract sales amounted to RMB 5,431.3 million, with a total sales area of 206,301 square meters[9]. - The group's real estate contract sales amounted to RMB 5,431.3 million, representing a year-on-year increase of 39.4%[31]. - The area of real estate contract sales reached 206,301 square meters, an increase of 87.3% year-on-year[31]. - The majority of sales revenue came from properties located in Shanghai, contributing RMB 260.6 million, which accounted for 79.0% of the total confirmed sales revenue[24]. - The group aims to accelerate the presale and sale of its development and completed properties, with plans to launch two major projects in the second half of 2021[89]. Debt and Liabilities - As of June 30, 2021, total borrowings were RMB 19,765.2 million, with a capital debt ratio of 453.8%[10]. - Total liabilities increased to RMB 49,661.5 million from RMB 46,225.3 million at the end of 2020[16]. - The company’s capital debt ratio increased from 347.9% at the end of 2020 to 453.8% as of June 30, 2021[16]. - The overdue borrowings principal decreased by 76.2% from RMB 3,735.6 million at the end of 2020 to RMB 887.5 million as of June 30, 2021, indicating significant success in debt restructuring efforts[89]. - The company is actively negotiating with banks to restructure and extend loans to improve liquidity and financial conditions[84]. Assets and Equity - Total assets as of June 30, 2021, were RMB 53,816.1 million, compared to RMB 51,813.8 million at the end of 2020[16]. - The company’s equity decreased to RMB 4,154.6 million from RMB 5,588.5 million at the end of 2020[16]. - Total current assets as of June 30, 2021, were approximately RMB 28,419.0 million, an increase of 10.2% from RMB 25,798.2 million as of December 31, 2020[74]. - The total asset value of the segments as of June 30, 2021, was RMB 44,292,033,000, with significant contributions from the Shanghai region (RMB 50,437,162,000) and the Yangtze River Delta (RMB 23,737,605,000)[200]. Operational Strategy - The group continued to promote the sale of inventory garages and remaining units, with garage sales priced lower than residential properties[25]. - The company is enhancing operational control, process adjustments, and cost management to support its business performance[20]. - The company plans to adopt a prudent financial policy to further reduce debt levels and improve the debt structure, aiming to mitigate financial risks and operational pressures[49]. - Management has implemented measures to alleviate liquidity pressure, including expediting the sale of properties and controlling administrative costs[179]. Corporate Governance - The company has maintained compliance with the corporate governance code, although it deviated from the guideline that the roles of Chairman and CEO should be separate[100]. - The Audit Committee has reviewed the unaudited consolidated results for the six months ended June 30, 2021, confirming compliance with applicable accounting standards and regulations[110]. - The company has established a remuneration committee to evaluate and recommend compensation for directors and senior management, ensuring transparency in remuneration policies[112]. - The corporate governance committee monitors compliance with legal and regulatory requirements[126]. Employee and Compensation - The total employee compensation and benefits for the six months ended June 30, 2021, amounted to RMB 957 million, reflecting the company's commitment to performance-based remuneration[98]. - The company employed a total of 667 employees as of June 30, 2021, indicating a stable workforce size[98]. Market Outlook - The company anticipates that the national sales area of commercial housing will maintain a high level year-on-year in the second half of 2021, with the annual transaction volume expected to reach a new high[48]. - The company expects a structural increase in housing prices driven by rising land and second-hand housing prices, particularly in first and second-tier cities[48].
恒盛地产(00845) - 2021 - 中期财报