LONGFOR GROUP(HK:00960)2021-09-23 22:15Financial Performance - Longfor Group reported a 15% increase in revenue for the first half of 2021, reaching HKD 30 billion[12]. - The company achieved a net profit margin of 20%, translating to a net profit of HKD 6 billion for the same period[12]. - The Group's core net profit grew by 17% year-on-year, demonstrating its commitment to delivering results to the capital market[53]. - Revenue from property development business for the first half of 2021 was RMB51.84 billion, an increase of 14.6% year-over-year[66]. - Total revenue reached RMB 166,677,756 thousand, with a profit of RMB 8,764,854 thousand[154]. - Profit for the period was RMB 10,129,298, up 15.5% from RMB 8,764,854 in the prior year[143]. - The company reported a fair value gain of RMB 2,259,287 on investment properties, compared to RMB 1,755,551 in the previous year, an increase of 28.7%[143]. - The average financing cost for Longfor Group in the first half of the year was 4.21%, marking a new record low while maintaining a reasonable debt structure[56]. Project Development and Expansion - Longfor plans to launch 10 new residential projects in 2022, aiming for a sales target of HKD 50 billion[12]. - The company is exploring potential mergers and acquisitions to enhance its market share in the real estate sector[12]. - Longfor Group Holdings Limited has a 30% interest in the Xiyue Jinchen project in Chengdu, with an expected completion date of November 30, 2022[13]. - The company is planning to expand its market presence with new projects in various cities, including Shijiazhuang and Suzhou, with significant areas under development[26]. - The company is actively pursuing new developments, with several projects in the planning stage, including the Longfor Ideal City with a planned GFA of 454,203 square meters[37]. - The company has ongoing projects in Changchun, including the Shunshan Fu and Yun Feng Longfor Mansion, with completion dates set for November 1, 2023, and 100% interest in both[33]. Market Presence and Sales - In the first half of 2021, Longfor Group achieved total contracted sales of RMB142.6 billion, representing a year-on-year increase of 28% and a 35% increase compared to 2019[53]. - Contracted sales reached RMB142.63 billion, representing a 28.4% increase compared to the same period last year[69]. - The average selling price of properties sold was RMB17,272 per square meter, reflecting a 1.8% increase from the previous year[69]. - The Group's sales in Chengdu were RMB8.83 billion, a decrease from RMB9.25 billion in the same period last year[70]. - Sales in Wuhan surged to RMB8.15 billion, up from RMB1.18 billion year-over-year[70]. Asset Management and Financial Health - Longfor's total assets increased by 10% year-on-year, amounting to HKD 200 billion[12]. - The company has a total of 1,200,000 square meters of completed properties, with 50% remaining unsold[37]. - The Group's net rental income from property investment for the first half of 2021 was RMB 4.78 billion, representing a 42.4% increase compared to the same period last year[76]. - The occupancy rate of the Group's shopping malls was 97.8% as of June 30, 2021, with a total operational area of 5.24 million square meters[76]. - The company reported a significant increase in deposits paid for acquisition of properties held for development, totaling RMB 16,207,145 compared to RMB 1,849,876 in 2020[157]. Strategic Initiatives and Innovations - The company is investing HKD 1 billion in new technology for smart home solutions[12]. - Longfor Group's strategic focus on digitalization and technology aims to streamline operations and improve decision-making efficiency[61]. - New product developments and technological advancements are being prioritized to improve customer experience and operational efficiency[79]. - The company is actively pursuing strategic acquisitions and partnerships to enhance its portfolio and market reach[51]. Shareholder Information and Corporate Governance - The company declared an interim dividend of RMB0.47 per share for the six months ended June 30, 2021[134]. - As of June 30, 2021, Wu Yajun holds 2,589,778,201 ordinary shares, representing approximately 42.695% of the company's interest[113]. - The company has a Share Option Scheme and a Restricted Share Award Scheme for its directors and employees[118]. - The company has complied with the relevant code provisions contained in the Corporate Governance Code during the six months ended June 30, 2021[133].