Financial Performance - The group's revenue for the six months ended June 30, 2023, was RMB 128.18 billion, with a gross profit of RMB 9.80 billion, resulting in an operating loss of RMB 11.72 billion[6]. - The net loss for the six months ended June 30, 2023, was RMB 39.25 billion, compared to a net loss of RMB 86.17 billion for the same period in 2022[6]. - The total comprehensive income for the period, after tax, was RMB 323 million, a decrease from RMB 2,157 million in the previous year[8]. - The company's total expenses for the period were RMB 38,925 million, down from RMB 84,012 million in the prior year, reflecting a reduction in operational costs[8]. - The basic loss per share attributable to shareholders was RMB 2.972, compared to RMB 5.025 in the previous year, showing a decrease in losses per share[8]. - For the six months ended June 30, 2023, the company's revenue reached RMB 128,181 million, a significant increase from RMB 89,281 million for the same period in 2022, representing a growth of approximately 43.6%[23]. - The group reported a significant increase in trade payables and other payables, totaling RMB 1,056.57 billion as of June 30, 2023, compared to RMB 1,002.26 billion at the end of 2022[4]. Debt and Liabilities - As of June 30, 2023, the total debt of China Evergrande Group amounted to RMB 238.82 billion, with net debt after excluding certain liabilities at RMB 178.42 billion[2]. - Non-current liabilities included borrowings of RMB 42.95 billion and deferred tax liabilities of RMB 47.36 billion as of June 30, 2023[4]. - The total liabilities amounted to RMB 2,388.2 billion, an increase of RMB 67.83 billion compared to RMB 1,716.39 billion after excluding contract liabilities from the previous year[30]. - The company's borrowings as of June 30, 2023, were RMB 624.77 billion, an increase of RMB 12.38 billion from RMB 612.39 billion at the end of 2022, with an average interest rate of 7.97%[31]. - The group reported significant contingent liabilities of approximately RMB 73.85 billion as of June 30, 2023, up from RMB 46.78 billion at the end of 2022[40]. Cash and Liquidity - The group's cash and cash equivalents were RMB 4.05 billion as of June 30, 2023, down from RMB 4.33 billion at the end of 2022[3]. - As of June 30, 2023, the company had total cash and cash equivalents of approximately RMB 13,381 million, indicating liquidity challenges with net current liabilities of RMB 713,102 million[11]. - As of June 30, 2023, the group had cash and cash equivalents totaling RMB 13.38 billion, with an additional RMB 34.87 billion in a unified regulatory account[39]. Restructuring Efforts - The company is actively negotiating debt restructuring plans to alleviate liquidity pressures and has engaged with creditors to resolve outstanding litigation[12]. - A restructuring support agreement was signed with the Ad Hoc Group (AHG) on April 3, 2023, aimed at providing a sustainable capital structure and financial flexibility[12]. - The proposed restructuring is expected to be implemented by October 1, 2023, with a final deadline of December 15, 2023, subject to potential extensions[12]. - The company is exploring new financing avenues, including asset management and partnerships, to secure additional capital[12]. - The company plans to implement a restructuring through the CEG agreement, which categorizes debts into two groups: Group A and Group C[14]. - Group A creditors will receive new notes with a term of 10-12 years, while Group C creditors can choose between new notes with a term of 5-9 years or a combination of various securities[14]. - The total principal amount of new notes to be issued under the SJ agreement is $6.5 billion, distributed among SJ creditors based on their rights[16]. - Under the TJ agreement, the total principal amount of new notes to be issued is $800 million, allocated to TJ creditors proportionally[17]. - The company's ability to continue as a going concern depends on successfully completing the proposed offshore debt restructuring and negotiating extensions with remaining lenders[18]. - The company has maintained active communication with creditors to secure support for the restructuring agreements[18]. Assets and Operations - The total assets of the group as of June 30, 2023, were RMB 1,743.99 billion, a decrease from RMB 1,838.34 billion as of December 31, 2022[3]. - The group held land reserves of 1.9 million square meters as of June 30, 2023, and participated in 78 renovation projects, including 55 in the Greater Bay Area[2]. - The company achieved contract sales amounting to RMB 33,413 million and a sales area of 5.115 million square meters in the first half of 2023, with cumulative sales receipts of RMB 27,100 million[28]. - The company continues to focus on the completion and delivery of real estate projects to ensure stable and sustainable operations[12]. - Future strategies include enhancing internal risk control, improving management efficiency, and stabilizing operations while ensuring the delivery of properties[29]. Corporate Governance - The accounting policies used in the interim financial statements are consistent with those applied in the audited financial statements for the year ended December 31, 2022[19]. - The company has adopted the standard code of conduct for securities trading as per the Hong Kong Stock Exchange rules, confirming compliance by all directors as of June 30, 2023[50]. - The company has adhered to all provisions of the corporate governance code as of June 30, 2023[51]. - The audit committee, composed of independent non-executive directors, has reviewed the interim results for the six months ended June 30, 2023[52]. Employee and Operational Costs - The group has 109,085 employees as of June 30, 2023, with total employee costs around RMB 2.78 billion for the first half of 2023[42]. - Sales and marketing costs increased by 30.4% from RMB 2.35 billion in the first half of 2022 to RMB 3.07 billion due to higher business volume[34]. - Administrative expenses decreased by 32.8% from RMB 5.6 billion in the first half of 2022 to RMB 3.76 billion due to significant cost-cutting measures[35]. - The operating loss for the period amounted to RMB 17.38 billion[35]. - Non-operating losses totaled RMB 15.03 billion, primarily due to legal disputes and other losses[37]. Shareholder Information - The company has not declared an interim dividend for the six months ended June 30, 2023, consistent with the previous year[26]. - The company reported a basic loss per share for the six months ended June 30, 2023, which was the same as the diluted loss per share due to the anti-dilutive effect of share options[25]. - The company's shares were suspended from trading on March 21, 2022, and trading is set to resume on August 28, 2023[53].
中国恒大(03333) - 2023 - 中期业绩