Financial Performance - In the first half of 2021, Sunac China achieved revenue of approximately RMB 95.82 billion, representing a year-on-year growth of about 23.9%[30] - Gross profit for the same period reached approximately RMB 19.98 billion, an increase of about 12.5% year-on-year[30] - The attributable profit to the owners of the company was approximately RMB 11.99 billion, reflecting a year-on-year growth of about 9.4%[30] - The company's property sales revenue was RMB 87.5 billion, accounting for 91.3% of total revenue, up approximately RMB 14.43 billion (about 19.7%) from RMB 73.07 billion in the previous year[36] - The net profit for the period was RMB 13,296,663 thousand, compared to RMB 11,700,882 thousand in the previous year, representing an increase of 13.6%[99] - Basic earnings per share increased to RMB 2.62 from RMB 2.41, reflecting a growth of 8.7%[99] - The group's profit attributable to owners increased by approximately 9.4% to about RMB 11.99 billion for the six months ended June 30, 2021, compared to approximately RMB 10.96 billion for the same period in 2020[44] Sales and Market Expansion - Contracted sales amounted to approximately RMB 320.76 billion, with attributable contracted sales of about RMB 200.76 billion, marking a year-on-year increase of approximately 64.3%[30] - Sunac China continues to strengthen its leading position in core cities, achieving over RMB 10 billion in contracted sales in nine cities, including Wuhan and Hangzhou, where sales exceeded RMB 20 billion[30] - The company expects total salable resources to exceed RMB 660 billion in the second half of 2021, with 29% located in the Yangtze River Delta region and 25% in core western cities[34] - The company is focusing on expanding its property development projects across various urban areas to enhance its market presence[54] - The company is actively pursuing new strategies for market expansion and product development to drive future growth[54] Land Reserves and Acquisitions - The company added approximately 17.08 million square meters of land reserves in the first half of 2021, with an estimated value of RMB 213.5 billion[30] - As of the end of June 2021, the total land reserves, including joint ventures, amounted to approximately 164 million square meters, with an estimated value of RMB 2 trillion[30] - The total land reserve area of the group, including joint ventures and associates, is approximately 278 million square meters, with equity land reserves of approximately 164 million square meters[54] - The company plans to control the land acquisition sales ratio to below 20% in the second half of 2021 and below 30% for the entire year[34] Financial Health and Debt Management - As of June 2021, the company's net debt ratio was approximately 86.6%, with a non-restricted cash to short-term debt ratio of about 1.11, and a liability ratio of approximately 76.0% after excluding advance receipts[31] - The group's cash balance decreased from approximately RMB 132.65 billion as of December 31, 2020, to approximately RMB 123.19 billion as of June 30, 2021, while unrestricted cash increased from approximately RMB 98.71 billion to approximately RMB 101.10 billion[45] - The total borrowings remained stable at approximately RMB 303.53 billion as of June 30, 2021, compared to approximately RMB 303.44 billion as of December 31, 2020[48] - The company has received upgrades in credit ratings from multiple agencies, including S&P, Moody's, and Fitch, indicating improved financial credibility[31] - The company plans to continue monitoring interest rate risks and has implemented several interest rate swap arrangements to hedge against such risks[51] Operational Efficiency and Cost Management - Operating profit decreased to approximately RMB 14.55 billion, down RMB 3.48 billion from RMB 18.03 billion in the previous year[41] - Financial costs decreased to approximately RMB 0.70 billion from RMB 2.45 billion in the previous year, while financial income increased to approximately RMB 1.52 billion from RMB 0.86 billion[42] - Sales and marketing costs increased by approximately 45.8% to RMB 3.82 billion from RMB 2.62 billion in the previous year[39] - Administrative expenses increased slightly by 1.6% to RMB 3.75 billion from RMB 3.69 billion in the previous year[39] Corporate Governance and Social Responsibility - The company adopted the corporate governance code as per the Hong Kong Stock Exchange and complied with all applicable provisions during the six months ending June 30, 2021[57] - The company has donated over RMB 2.7 billion to various social causes, including rural revitalization and disaster relief, and has received a "low risk" ESG rating from Sustainalytics[33] - The company aims to enhance its strategic focus on sustainable development and social responsibility in the future[34] Employee and Stock Incentive Plans - Employee costs for the six months ended June 30, 2021, were approximately RMB 5.26 billion, compared to RMB 4.97 billion for the same period in 2020[91] - The company has implemented various stock incentive plans to attract and retain talent[91] - A total of 51,080,000 stock options were granted under the pre-IPO stock option plan, representing approximately 1.67% of the total issued shares post-IPO[57] - The company aims to attract and retain talented partners beneficial to its growth through its stock option plans[58] Investment and Financial Instruments - The company issued USD 600 million 5.95% senior notes due 2024 and USD 500 million 6.5% senior notes due 2026 on January 26, 2021[84] - The company successfully issued RMB 1.58 billion 6.80% corporate bonds due in 2025 on January 19, 2021[85] - The company reported a total of RMB 29,572,102,000 in financial assets measured at fair value as of June 30, 2021, reflecting a substantial increase from RMB 31,382,112,000 in the previous year[112] Cash Flow and Liquidity - The net cash inflow from operating activities was approximately RMB 11.72 billion, while the net cash outflow from investing activities was approximately RMB 32.89 billion[47] - Operating cash flow for the six months ended June 30, 2021, was RMB 23,163,143, a decrease of 26.7% from RMB 31,628,339 in 2020[102] - The total cash and cash equivalents at the end of the period increased to RMB 101,099,468, up from RMB 85,228,617 at the end of June 2020[103] Market and Economic Outlook - The company is optimistic about the future of the real estate industry, supported by government policies aimed at stabilizing land prices and housing prices[30] - The company continues to innovate and upgrade its products, maintaining industry-leading competitiveness, particularly targeting younger demographics[31]
融创中国(01918) - 2021 - 中期财报