Financial Performance - For the six months ended June 30, 2021, the group's total revenue increased by 18% to RMB 39.49 billion, while net profit decreased to RMB 3.18 billion[6]. - The overall gross profit and net profit for the first half of the year decreased to RMB 8.57 billion and RMB 3.18 billion respectively, impacted by changes in product mix and higher financing costs[9]. - The net profit decreased from RMB 3.917 billion to RMB 3.181 billion, representing a decline of approximately 19% year-on-year[23]. - The company reported a net profit margin of 8.1%, stable compared to 11.7% in the same period last year[28]. - The group reported a net profit of RMB 3,181,021,000 for the six months ended June 30, 2021, compared to a profit of RMB 3,916,988,000 for the same period in 2020, indicating a decrease of 18.8%[81]. - Total revenue for the six months ended June 30, 2021, was RMB 40,236,467,000, an increase of 17.3% compared to RMB 34,257,217,000 for the same period in 2020[80]. Revenue Sources - The revenue from property development rose by 17% to RMB 35.95 billion, with net profit declining by 15% to RMB 2.96 billion, driven by a 22% increase in delivered area to 4.1 million square meters[6]. - The property development segment generated revenue of RMB 35,946,375,000, accounting for 89.4% of total revenue, while the hotel operations segment reported a loss of RMB 547,172,000[80]. - The hotel operations generated revenue of RMB 2.500 billion, up from RMB 1.396 billion, indicating a recovery as the pandemic situation stabilizes[23]. Sales and Contracts - The group's agreement sales amounted to RMB 65.08 billion, with a sales area of approximately 4.852 million square meters, representing growth of 18% and 6% respectively[8]. - The total contracted sales for the first half of 2021 reached RMB 65.08 billion, representing an 18% year-on-year increase, with a sales area of approximately 4,852,000 square meters, up 6% year-on-year[15]. - The company delivered a saleable area of 1,848,000 square meters in the first half of 2021, accounting for about 20% of the annual target of 9,377,000 square meters[13]. Land and Development - The total land reserve available for sale was approximately 55.52 million square meters, with 53% located in first- and second-tier cities[8]. - The total land reserve of the company as of June 30, 2021, is approximately 69,173,000 square meters, with a saleable area of about 55,520,000 square meters[12]. - The company aims to convert approximately 8 million square meters of land reserves from urban renewal projects in the near term[8]. - The total area of properties under development amounted to approximately 30,882,000 square meters, with a saleable area of 22,107,000 square meters[18]. Costs and Expenses - The average cost of land reserves was approximately RMB 2,700 per square meter, with a focus on maintaining a reasonable low level to achieve higher gross margins[8]. - The average selling price during the first half of 2021 was approximately RMB 13,400 per square meter[15]. - The average selling price per square meter decreased by 4% to RMB 8,800, influenced by marketing strategies aimed at stimulating sales[23]. - The company’s sales and administrative expenses rose by 5% to RMB 3.204 billion, accounting for 8.9% of total revenue[27]. Financing and Debt Management - The total borrowings decreased by RMB 16.4 billion, while RMB 25.7 billion in financing was secured to manage existing debt refinancing and increase available liquidity[9]. - The company’s total borrowings amounted to RMB 143.35 billion, a decrease from RMB 159.73 billion at the end of the previous year[29]. - The company’s net debt to total equity ratio improved to 123% from 130% at the end of the previous year[29]. - The company has pledged assets with a total book value of RMB 122.3 billion to secure bank loans and other borrowings of RMB 86.93 billion[30]. Shareholder Information - The interim dividend declared for the six months ended June 30, 2021, is RMB 0.10 per share, to be distributed on November 15, 2021[34]. - The company’s total share capital as of June 30, 2021, was 3,752,367,344 H shares, representing 100% of the equity structure[38]. - The group’s major shareholders, Dr. Li Siliang and Mr. Zhang Li, hold 28.97% and 27.50% of the company's shares, respectively, indicating significant ownership concentration[137]. Corporate Governance - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2021, in accordance with the relevant auditing standards[37]. - The company maintains compliance with all applicable regulations and corporate governance standards[46]. - The company has established a business policy and strategy framework, including dividend and risk management policies[45]. Asset Management - The company's total assets as of June 30, 2021, were RMB 424,552,471 thousand, a decrease from RMB 442,185,215 thousand as of December 31, 2020, representing a decline of approximately 4%[53][54]. - The total liabilities of the group as of June 30, 2021, were RMB 154,718,605, with property development liabilities at RMB 151,106,824[83]. - The group’s equity in joint ventures was RMB 11,274,830, while equity in associates was RMB 2,604,070 as of June 30, 2021[83]. Market Conditions and Strategies - The company plans to continue cash flow management and improve overall credit conditions amid market uncertainties[10]. - The group has implemented cost control measures and flexible pricing strategies to accelerate property sales in response to changing market conditions[68]. - The company aims to achieve higher profitability potential with sufficient quality land reserves in a more stable market environment[10].
富力地产(02777) - 2021 - 中期财报