Financial Performance - The group's revenue for the first half of 2021 was RMB 14,568,000, an increase from RMB 14,294,000 in the same period of 2020[12]. - Gross profit for the first half of 2021 was RMB 673,000, down from RMB 1,115,000 in the same period of 2020[14]. - The net profit for the period was RMB 4,735,000, a significant recovery from a net loss of RMB 1,665,000 in the previous year[28]. - The company's revenue for the six months ended June 30, 2021, was RMB 14,568,000, compared to RMB 14,294,000 for the same period in 2020, representing an increase of 1.9%[28]. - Gross profit decreased to RMB 673,000 from RMB 1,115,000, indicating a decline of 39.7% year-over-year[28]. - The company reported a tax credit of RMB 4,665,000 for the six months ended June 30, 2021, compared to a tax expense of RMB (442,000) for the same period in 2020, indicating a positive turnaround in tax position[61]. - The company’s basic earnings per share attributable to ordinary shareholders for the six months ended June 30, 2021, was RMB 4,735,000, while for the same period in 2020, it was a loss of RMB (1,665,000)[66]. Costs and Expenses - The cost of sales for the first half of 2021 was RMB 13,895,000, compared to RMB 13,179,000 in the first half of 2020[13]. - Administrative expenses decreased to RMB 1,966,000 in the first half of 2021 from RMB 4,145,000 in the first half of 2020[17]. - Employee costs for the first half of 2021 were RMB 1,015,000, compared to RMB 1,486,000 in the first half of 2020[25]. - The company reported a decrease in administrative expenses to RMB 1,966,000 from RMB 4,145,000, a reduction of 52.6%[28]. Cash Flow and Liquidity - As of June 30, 2021, the group's cash and cash equivalents were RMB 147,678,000, compared to RMB 144,368,000 as of December 31, 2020[18]. - The net cash flow from operating activities for the six months ended June 30, 2021, was RMB 2,404,000, compared to a net cash outflow of RMB (934,000) for the same period in 2020, representing a significant improvement[43]. - Cash and cash equivalents increased to RMB 147,678,000 as of June 30, 2021, up from RMB 144,214,000 at the end of the same period in 2020, indicating a growth of approximately 1.02%[43]. - The company’s financing activities resulted in a net cash outflow of RMB (285,000) for the six months ended June 30, 2021, compared to RMB (347,000) for the same period in 2020, indicating a reduction in financing costs[43]. Assets and Liabilities - The total assets as of June 30, 2021, were RMB 663,728,000, slightly up from RMB 659,378,000 at the end of the previous year[33]. - The company’s total liabilities decreased from RMB 48,926,000 as of December 31, 2020, to RMB 46,833,000 as of June 30, 2021[74]. - Trade payables as of June 30, 2021, amounted to RMB 18,252,000, a decrease from RMB 19,519,000 as of December 31, 2020[74]. - Other payables were RMB 28,165,000 as of June 30, 2021, down from RMB 29,071,000 as of December 31, 2020[74]. - The total prepayments and other receivables as of June 30, 2021, were RMB 85,726,000, slightly down from RMB 89,384,000 as of December 31, 2020[71]. Shareholder Information - As of June 30, 2021, the company's major shareholder, Wang Yong, holds 69.78% of the ordinary shares and 99.75% of the convertible preferred shares[92]. - Major shareholder Xi Wang Investment holds 982,999,588 ordinary shares, representing 69.78% of the company's equity as of June 30, 2021[100]. - Xi Wang Investment also holds 506,244,669 convertible preferred shares, accounting for 99.75% of that class of shares[100]. - The company has a significant concentration of ownership, with major shareholders controlling nearly 70% of ordinary shares[100]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions during the reporting period[115]. - The audit committee reviewed the unaudited condensed consolidated financial statements, confirming compliance with applicable accounting standards and regulations[117]. Market Outlook - The real estate market is expected to remain under tight regulation, with potential impacts on liquidity for property companies due to stricter land auction and financing controls[26]. - The company anticipates stable property prices in its primary market, with limited new developments expected to maintain current price levels[26]. - The overall leverage ratio in the real estate industry is gradually decreasing, indicating a release of risks and a more favorable development outlook post-adjustment[26].
西王置业(02088) - 2021 - 中期财报