COVID-19 Impact - The company faced significant challenges and incurred heavy losses due to the COVID-19 pandemic in 2020[18]. - The Group's hotel operations were temporarily closed for several months due to local government requirements, significantly affecting revenue[43]. - The Group's management discussion highlighted the impact of COVID-19 on project completions and land acquisition strategies[58]. - The Group's revenue decreased by approximately 13.5% from approximately RMB1,605.4 million in 2019 to approximately RMB1,389.1 million in 2020, primarily due to the COVID-19 pandemic[104]. - Hotel operation revenue decreased by 45.2% to RMB37.1 million in 2020 from RMB67.7 million in 2019, largely due to the sale of a hotel and temporary closures caused by COVID-19[115]. - Profit attributable to equity shareholders dropped approximately 80.1% to RMB50.2 million in 2020 from RMB252.5 million in 2019, largely due to the impact of COVID-19[146]. Sales and Revenue - For the year ended December 31, 2020, the Group achieved total contracted sales of approximately RMB4.08 billion, a 17.2% increase compared to RMB3.48 billion in 2019[46]. - The Group's contracted sales and attributable contracted sales for joint ventures reached RMB3.23 billion, a 25.7% increase from the previous year[46]. - As of December 31, 2020, the Group's revenue from property sales amounted to approximately RMB1,144.5 million, with a total gross floor area (GFA) of approximately 132,373 sq.m. sold and delivered, resulting in an average selling price of approximately RMB9,521 per sq.m.[69]. - The Group had total unrecognized contracted sales of RMB3.2 billion as of December 31, 2020, expected to be recognized in 2021 and 2022 upon project completion and delivery[70]. - Revenue from property leasing slightly decreased by 1.0% from approximately RMB209.6 million in 2019 to approximately RMB207.6 million in 2020, despite the opening of a new shopping mall[114]. Property Development and Projects - The Group completed and delivered two projects in 2020, with a total saleable area of approximately 124,219 sq.m., of which about 99,891 sq.m. was sold and delivered by December 31, 2020[50]. - The Group launched three new pre-sale projects during the year, including Wuxi Golden Wheel Starry Plaza, Yangzhou No. 1 Golden Bay, and Nanjing Golden Wheel Galaxy Center[48]. - The company has several ongoing projects, including Nanjing Golden Wheel Galaxy Center with a completion percentage of 10% and a total GFA of 195,353 square meters[60]. - The company’s project in Zhuzhou Golden Wheel Jinqiao Huafu (Phase I) has a total GFA of 19,166 square meters and is 100% completed[59]. - The company’s project in Wuxi Golden Wheel Starry Plaza has a completion percentage of 50% and a total GFA of 99,039 square meters[60]. - The company’s project in Yangzhou Powerlong Golden Wheel Plaza is fully completed with a total GFA of 44,404 square meters[60]. Financial Performance - Gross profit fell from RMB531.4 million in 2019 to RMB233.1 million in 2020, primarily due to decreased revenue across all business segments[124]. - Gross profit margin decreased from 33.1% in 2019 to 16.8% in 2020, mainly due to lower margins in developed property sales and hotel operations[125]. - The gross profit margin for developed properties dropped from 23.8% in 2019 to 3.8% in 2020, attributed to lower-margin projects completed during the year[126]. - Fair value gain on investment properties was recorded at RMB92.0 million in 2020, down from RMB172.0 million in 2019, primarily due to COVID-19 impacts[129]. - Finance costs increased from RMB186.3 million in 2019 to RMB233.5 million in 2020, with the average cost of borrowings rising from 7.8% to 11.0%[135]. Land Acquisition and Development - The Group did not acquire any new land parcels in 2020 but invested approximately RMB350 million in five joint ventures, with a total saleable area of 479,434 sq.m.[51]. - The Group's approach to land acquisition was more prudent in 2020 due to the pandemic[53]. - The Group's land bank as of December 31, 2020, totaled approximately 1,825,912 sq.m., sufficient to meet the needs of the new three-year development plan[96]. - The average land acquisition cost as a percentage of average selling price increased from 34.0% in 2019 to 36.3% in 2020[119]. Cash Flow and Financing - As of 31 December 2020, the Group had bank deposits and cash of approximately RMB1,413.3 million, down from RMB1,753.6 million in 2019, primarily due to decreased cash collected from property sales[152]. - The Group's net gearing ratio was approximately 95.6% as of 31 December 2020, a slight improvement from 96.8% in 2019[153]. - The debt-to-asset ratio improved to approximately 60.4% as of 31 December 2020, compared to 64.3% as of 31 December 2019[154]. - Net cash used in investing activities was approximately RMB408.5 million, primarily attributable to an increase of investment properties of approximately RMB317.2 million[164]. - The Group's financing activities included a net increase of senior notes of approximately RMB771.6 million[165]. Future Outlook and Strategy - The company aims to achieve its objectives in 2021 and 2022 through principles of "reform", "solid work", "breakthrough", and "expectation"[23]. - The Group's property development revenue accounted for 82.4% of total revenue in 2020, while property leasing and hotel operation contributed 14.9% and 2.7%, respectively[103]. - The GDP growth target for China in 2021 is set at 6%, with the Group optimistic about stable growth in the property market[95]. - The Group actively seeks to bid for more leasing and operational management contracts for metro station shopping malls in various cities, optimistic about future contract acquisitions[78].
金轮天地控股(01232) - 2020 - 年度财报