Financial Performance - In 2021, the group achieved a contract sales amount of RMB 372.9 billion, with a total sales area of 52.02 million square meters, and total sales receipts of RMB 387.6 billion[14]. - The group's revenue for the year was RMB 250.01 billion, with real estate development revenue contributing RMB 226.15 billion from 770 projects completed[17]. - The gross loss for the year was RMB 18.45 billion, resulting in a gross margin of -7.4% due to significant promotional inventory turnover[17]. - Other losses for the year totaled RMB 129.83 billion, primarily from land recovery losses and joint venture investment losses[18]. - The group reported a net loss of approximately RMB 686.22 billion for the year ended December 31, 2021[114]. - Total revenue for 2021 was RMB 250,013 million, a decrease of 50.7% compared to RMB 507,248 million in 2020[121]. - The total comprehensive loss for the year amounted to RMB 686,634 million, compared to a comprehensive income of RMB 31,035 million in 2020[122]. Debt and Liabilities - As of December 31, 2021, the total liabilities of China Evergrande Group amounted to RMB 2,580.15 billion, with a net debt (excluding contract liabilities of RMB 974.35 billion) of RMB 1,605.80 billion, a decrease of RMB 159.18 billion from the end of 2020[12]. - The company plans to continue its debt reduction strategy, having reduced interest-bearing liabilities by approximately RMB 300 billion from March 2020 to June 2021[12]. - The group incurred financial costs of RMB 41.62 billion during the year[17]. - The company has been involved in multiple lawsuits and arbitration cases, indicating significant uncertainties regarding its ability to continue as a going concern[114]. - The company has taken various measures to improve its liquidity and financial condition, although the effectiveness of these measures is uncertain[114]. - The company reported a net loss attributable to shareholders of RMB 476,035 million for 2021, compared to a profit of RMB 8,076 million in 2020[122]. Assets and Cash Flow - As of December 31, 2021, the total assets of the company amounted to RMB 2,107,096 million, a decrease from RMB 2,301,159 million as of December 31, 2020, representing a decline of approximately 8.4%[119]. - The company's cash and cash equivalents plummeted from RMB 158,752 million in 2020 to RMB 5,435 million in 2021, indicating a drastic decline of approximately 96.6%[119]. - Total cash, including cash and cash equivalents and restricted cash, was approximately RMB 28.78 billion as of December 31, 2021[114]. - The net cash used in operating activities for the year ended December 31, 2021, was RMB 36,373 million, compared to RMB 213,231 million in 2020[125]. - The company raised RMB 89,378 million from borrowings during the year ended December 31, 2021[126]. Corporate Governance - The company emphasizes high standards of corporate governance, adhering to principles of internal control, risk management, and accountability to shareholders[41]. - The board has reviewed the effectiveness of the company's risk management and internal control systems, deeming them effective and sufficient as of December 31, 2021[41]. - The independent non-executive directors confirmed their independence in accordance with the listing rules[43]. - The company has established a mechanism to ensure the board receives independent views and opinions, with at least three independent non-executive directors[43]. - The company has a commitment to innovation, with ongoing research in engineering and management, led by experienced professionals from academic backgrounds[38]. Employee and Social Responsibility - As of December 31, 2021, the group had a total of 121,368 employees, with nearly 90% holding a bachelor's degree or higher[33]. - The total employee cost for the group was approximately RMB 14.07 billion for the year ending December 31, 2021, compared to RMB 29.02 billion for the previous year[33]. - The company is committed to sustainable development through strong relationships with employees, customers, and business partners[83]. - The group emphasizes environmental protection and has implemented best industry practices to promote eco-friendly initiatives[102]. - The company has established a supplier evaluation system to assess pricing, quality, and service of suppliers, ensuring a continuous supply of quality materials[104]. Risk Management - The company has established a clear frequency for risk management assessments and reporting, at least annually, as outlined in the "China Evergrande Group Risk Management Manual"[51]. - The risk management system encompasses risks related to strategy, finance, operations, compliance, and significant environmental, social, and governance (ESG) matters[49]. - The Audit Committee is responsible for reviewing the risk management framework and continuously monitoring its effectiveness[50]. - The group updated its risk assessment standards based on changes in the internal and external environment, focusing on the nature of business and operational characteristics, strategic objectives, and risk preferences of management[51]. - The internal audit function supervises and evaluates the risk management work of the Group and its subsidiaries[50]. Shareholder Communication and Dividends - The company has established a shareholder communication policy to ensure equal and timely access to information for shareholders[72]. - The company proposed no final dividend for the year ended December 31, 2021[76]. - The company has adopted a dividend policy to declare dividends annually when circumstances permit, considering distributable profits, financial condition, and future development needs[67]. - The board believes that the shareholder communication policy remains effective for the year[72]. - The company had no distributable reserves available for shareholders as of December 31, 2021[78]. Restructuring and Future Plans - A restructuring support agreement was signed with the Ad Hoc Group on April 3, 2023, aimed at providing a sustainable capital structure and protecting stakeholder interests[133]. - The proposed restructuring is expected to be implemented by October 1, 2023, with a final deadline of December 15, 2023[133]. - The company plans to issue new notes totaling $6.5 billion under the SJ agreement arrangement for creditors[135]. - The board believes that through the proposed debt restructuring plans, the company will have sufficient funds to meet its financial obligations for the next 12 months[138]. - The ability to continue as a going concern depends on successfully completing the proposed offshore debt restructuring and negotiating extensions with remaining lenders[138].
中国恒大(03333) - 2023 - 年度财报