Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 5,099.5 million, representing a 61.7% increase from RMB 3,154.4 million in 2020[13]. - Gross profit for the same period was RMB 1,227.3 million, with a gross profit margin of 24.1%, down from 31.4% in 2020[13][17]. - Profit attributable to equity holders was RMB 295.3 million, a slight increase of 0.6% from RMB 293.6 million in 2020[13]. - Core net profit attributable to equity holders was RMB 293.8 million, down 3.6% from RMB 304.9 million in the previous year[13]. - Revenue from property sales for the first half of 2021 was RMB 4,636.1 million, representing a 65.1% increase compared to the same period last year[99]. - Property management revenue increased by approximately 55.9% to RMB 350.5 million, up from RMB 224.8 million in the previous year, driven by a significant increase in contracted GFA from third parties[135]. - Rental income decreased by approximately 6.7% to RMB 107.6 million, down from RMB 115.3 million in the previous year, primarily due to reduced rental periods caused by property upgrades[136]. - The company's cost of sales for the first half of 2021 was RMB 3,872.2 million, representing an increase of 78.9% compared to RMB 2,164.6 million in the same period last year[142][143]. - The profit for the period was RMB 365.8 million, compared to RMB 344.9 million in the same period last year, with profit attributable to equity holders at RMB 295.3 million, slightly up from RMB 293.6 million[166]. Sales and Contracted Projects - Contracted sales value reached RMB 18,734.5 million, a significant increase of 144.3% compared to RMB 7,670.2 million in 2020[15]. - Contracted sales area increased to 969,335 sq.m., up 203.7% from 319,208 sq.m. in the previous year[15]. - Average contracted selling price decreased by 19.6% to RMB 19,327 per sq.m. from RMB 24,029 per sq.m. in 2020[15]. - For the first half of 2021, Jingrui achieved total contracted sales of approximately RMB 18.735 billion, representing an increase of 144.3% compared to RMB 7.670 billion in the same period last year[33]. - The contracted sales area for the same period was approximately 969,335 sq.m., with an average contracted sales price of RMB 19,327 per sq.m.[33]. - The Jiangsu region contributed RMB 7,313.5 million (39.0%) and the direct-controlled municipalities contributed RMB 5,619.7 million (30.0%) to the total contracted sales[79]. Debt and Financial Position - The net debt-to-capital ratio increased to 74% as of June 30, 2021, compared to 69% at the end of 2020[17]. - Total outstanding borrowings increased to RMB 23,235.1 million as of June 30, 2021, up from RMB 21,444.8 million at the end of 2020[174]. - Current borrowings decreased by 7.1% to RMB 8,495.2 million from RMB 9,139.9 million, while non-current borrowings increased by 19.8% to RMB 14,740.0 million[181]. - The proportion of long-term borrowings in total borrowings was 63.4% as of June 30, 2021, ensuring stable cash flow for the company[184]. - Finance costs for the six months ended June 30, 2021, totaled RMB 1,207.5 million, an increase of 18.0% compared to RMB 1,023.7 million in the same period of 2020[186]. - The net debt-to-adjusted capital ratio was 74% as of June 30, 2021, indicating a significant leverage position[187]. Market and Industry Trends - The Chinese GDP for the first half of 2021 was RMB 53.2 trillion, reflecting a year-on-year increase of 12.7%[22]. - The real estate industry is expected to enter a refined development stage, moving away from land hoarding through increased borrowings[23]. - The anticipated urbanization rate in China is expected to exceed 70% by 2035, indicating significant development opportunities in core city clusters[65]. - The long-term rental apartment industry is becoming more rational and standardized, moving away from blind expansion models[78]. Operational Strategies - Jingrui plans to enhance production capacity and lean operation capacity to ensure profitability and improve asset value[32]. - The company is focusing on the development of the housing rental market in first-tier cities, moving away from the landlord agent model towards a more rational and normative long-term rental apartment business[32]. - Jingrui is accelerating the exploration and upgrading of its business model to take a leading position in industry reforms[28]. - The company aims to strengthen external expansion of property services, aligning with industry changes and enhancing service effectiveness through technology and training[78]. Project Management and Development - Jingrui acquired a total of 4 new projects in the first half of 2021, with a total property value of RMB 4.885 billion, of which first- and second-tier cities accounted for 80.6% of the saleable property value[34]. - The company has a sufficient land bank of approximately 5.2925 million sq.m., which can meet development demands for the next 2 to 3 years[34]. - As of June 30, 2021, Jingrui Properties constructed 25 projects involving 22,000 residences under the "Spaceme" platform, achieving a signing rate of 70%[40]. - Jingrui Service managed a total of 342 projects across 50 cities in China, with a contracted gross floor area (GFA) of approximately 46.80 million sq.m.[110].
景瑞控股(01862) - 2021 - 中期财报