华润置地(01109) - 2020 - 中期财报

Financial Performance - The Group achieved a turnover of RMB 44.87 billion and a core net profit of RMB 8.37 billion in the first half of 2020[13]. - Revenue for the six months ended June 30, 2020, was RMB 44,868,621, a decrease of 2.1% compared to RMB 45,848,952 in the same period of 2019[89]. - Gross profit for the same period was RMB 15,045,635, down 14.1% from RMB 17,519,064 in 2019[89]. - Profit for the period attributable to owners of the Company was RMB 11,542,141, a decrease of 9.3% compared to RMB 12,726,320 in 2019[89]. - Basic earnings per share for the period was RMB 1.62, down from RMB 1.84 in the previous year, representing a decline of 12%[89]. - Profit for the period decreased to RMB 13,234,618 from RMB 14,623,314, representing a decline of approximately 9.5% year-over-year[91]. - Total comprehensive income for the period was RMB 13,003,838, down from RMB 14,314,589, reflecting a decrease of about 9.2%[91]. - The profit before taxation was RMB 19,329,163, down 14.4% from RMB 22,516,346 in the same period of 2019[89]. - The company reported a significant increase in amounts due to non-controlling interests, which rose to RMB 2,230,000 thousand from RMB 19,440,370 thousand, indicating a substantial change in financial obligations[96]. Sales and Contracts - Contracted sales reached RMB 110.8 billion, successfully meeting the half-year target of RMB 100 billion[13]. - In 1H2020, the Group achieved contracted sales of RMB110.82 billion, a decrease of 6.7% YoY, with a contracted GFA of 6.321 million square meters, an increase of 1.0% YoY[20]. - As of June 30, 2020, the Group had unbooked contracted sales of RMB230.36 billion, with RMB106.96 billion expected to be recognized in the second half of 2020, providing a solid foundation for annual results[25]. Impact of COVID-19 - The Group provided rental concessions totaling RMB 700 million to tenants across 61 shopping malls with over 5,000 brands[13]. - The national sales of residential properties and total retail sales of consumer goods both recorded year-on-year declines due to the pandemic[13]. - The Group implemented measures such as cost reduction, quality improvement, and efficiency enhancement to minimize the pandemic's impact[13]. - The Group's proactive response to the pandemic included early supply procurement and accelerated settlement processes[13]. - All projects and sales offices resumed work by the end of March 2020, with major business operations fully restored by the end of April 2020[13]. Property and Development - The Group has 433 development projects and 611 shopping malls in operation, including 19 asset-light projects[12]. - The Group acquired 30 new projects with attributable GFA of 3.78 million square meters during the review period, focusing on tier one and two cities[14]. - As of June 30, 2020, the total land bank GFA was 71.09 million square meters, with attributable GFA of 49.80 million square meters, sufficient for development in the next 3 to 5 years[14]. - The fair value of the Group's shopping malls was RMB119.41 billion, accounting for 14.6% of total assets, with rental income of RMB3.91 billion, a decline of 8.9% YoY, but a potential growth of 7.4% when excluding rental concessions[28]. - The fair value of the Group's office properties was RMB36.24 billion, representing 4.4% of total assets, with rental income of RMB0.73 billion, reflecting a 5.8% YoY growth[29]. Financial Position and Debt - The net interest-bearing debt to equity ratio increased to 45.9% from 30.3% at the end of 2019[43]. - The weighted average funding cost decreased to 4.26% as of June 30, 2020, down from 4.45% at the end of 2019[43]. - The Group's total debt outstanding balance was RMB164.5 billion as of June 30, 2020[43]. - The Group's cash and bank balance was RMB60.9 billion as of June 30, 2020[43]. - The Group's land bank acquisitions will be funded by both internal resources and external financing[43]. Dividends and Shareholder Returns - An interim dividend of RMB0.15 per share was declared, representing an increase compared to the interim dividend in 2019[14]. - The Company declared an interim dividend of RMB 0.15 per ordinary share for the six months ended June 30, 2020, totaling RMB 1,069,641,000, compared to RMB 0.129 per share in 2019[128]. Corporate Governance - The Group's corporate governance standards have been maintained, complying with all code provisions of the Corporate Governance Code during the six months ended June 30, 2020[81]. - The 2020 Interim Report was reviewed by the Audit Committee, which comprises four independent non-executive directors and two non-executive directors[81]. Acquisitions and Investments - The company entered into four separate agreements for the proposed acquisitions of target companies for a total consideration of approximately RMB2,557,000,000 (equivalent to approximately HK$2,796,338,623) on June 22, 2020[69]. - The acquisition of Shenyang Sale Equity was for approximately RMB1,299,000,000 (equivalent to approximately HK$1,420,588,139), representing the entire registered capital of the Shenyang Target[69]. - The company has a strategy to develop, operate, and manage high-quality properties in strategically important regions in China, including Shenyang, Beijing, Ningbo, and Shenzhen[71]. Cash Flow and Financial Activities - For the six months ended June 30, 2020, net cash generated from operating activities was RMB 7,254,880, compared to RMB 20,005,493 for the same period in 2019, reflecting a decrease of approximately 63.7%[103]. - Net cash used in investing activities amounted to RMB (20,283,004) for the first half of 2020, compared to RMB (17,610,202) in 2019, indicating an increase in cash outflow of about 15.1%[103]. - Net cash generated from financing activities was RMB 20,753,662 for the six months ended June 30, 2020, compared to RMB 2,187,965 in 2019, representing a significant increase of approximately 846.5%[105]. Risk Management and Hedging - The Group assessed that the fair value at initial recognition of the financial guarantees and the expected credit loss allowance during the year were not significant[185]. - The Group's hedging instruments showed a fair value change of RMB 195,073,000 during the period, indicating effective risk management strategies[101].