Financial Performance - For the six months ended June 30, 2021, the Group recorded total revenue of approximately RMB4,859 million, representing a period-on-period increase of approximately 184%[24]. - Gross profit for the same period was approximately RMB1,139 million, reflecting a period-on-period increase of approximately 74%[36]. - Net profit increased by 41% period-on-period to approximately RMB453 million for the six months ended June 30, 2021[36]. - The cost of sales was approximately RMB3,720 million, representing a period-on-period increase of approximately 252%[39]. - Selling and marketing expenses increased by approximately 84% from approximately RMB161 million to approximately RMB296 million[47]. - General and administrative expenses rose by approximately 60% from approximately RMB178 million to approximately RMB285 million[47]. - Net finance costs increased by approximately 263% from approximately RMB35 million to approximately RMB127 million[47]. - Income tax expenses increased by 33% from RMB 184 million for the six months ended June 30, 2020, to RMB 245 million for the six months ended June 30, 2021[52]. - The Group's profit and total comprehensive income increased by approximately 41% from approximately RMB 321 million for the six months ended June 30, 2020, to approximately RMB 453 million for the six months ended June 30, 2021[52]. Sales and Market Performance - For the six months ended June 30, 2021, the Group's contracted sales were approximately RMB 17,853 million, representing an increase of 58% compared to the same period last year[14]. - The total gross floor area (GFA) sold during this period was approximately 1,488,418 sq.m., which is a 65% increase compared to the previous year[24]. - The average selling price (ASP) of properties recognized as sales was approximately RMB11,782 per sq.m., representing an increase of about 5% year-on-year[24]. - The real estate market showed strong resilience in the first half of 2021, with major industry indicators continuing to grow rapidly[14]. Land Bank and Development - As of June 30, 2021, the Group's land bank amounted to approximately 10,757,099 sq.m.[14]. - The Group aims to deepen its presence in the Yangtze River Delta region and has been actively replenishing its high-quality land bank[11]. - The total land reserve as of June 30, 2021, is 10,757,099 sq.m., with a completed area of 564,275 sq.m. and a planned GFA of 7,757,058 sq.m.[99]. - The Group acquired 7 new parcels of land, providing new land reserves of 918,548 sq.m. at a weighted average attributable land cost of approximately RMB4,504 per sq.m.[31]. - The Group's total land reserve includes completed GFA available for sale, GFA under development, and planned GFA for future development[71]. Strategic Direction and Management - The management model of the Group is characterized by "investment, financing, operation, and sales," ensuring sound cash flow and product quality[13]. - The Group's strategic direction is aligned with market cycles, allowing it to seize investment opportunities effectively[11]. - The Group plans to enhance its organizational efficiency and digital operations to better connect with market demands and improve operational costs[20]. - The Group will continue to adopt prudent financial policies and explore healthy financing channels to optimize its financing structure[20]. Financial Position and Ratios - The Group's contract liabilities as of June 30, 2021, were approximately RMB24,874 million, an increase of about 19% from RMB20,980 million as of December 31, 2020[24]. - The net gearing ratio decreased to 25% as of June 30, 2021, down 16 percentage points from 41% as of December 31, 2020[57]. - The liabilities to assets ratio, after excluding contract liabilities, was approximately 68% as of June 30, 2021, compared to 82% as of December 31, 2020[57]. - The cash to short-term debt ratio was 1.7 times as of June 30, 2021, compared to 1.1 times as of December 31, 2020[56]. - The Group's current ratio improved from approximately 1.13 times as of 31 December 2020 to approximately 1.30 times as of 30 June 2021[62]. Employee and Operational Insights - Employee benefit expenses for the six months ended June 30, 2021, amounted to approximately RMB228 million, an increase from RMB132 million for the same period in 2020[69]. - As of June 30, 2021, the Group had a total of 1,827 employees, up from 1,465 employees as of December 31, 2020[69]. - The Group considers the likelihood of default of payments by purchasers to be minimal, significantly mitigating credit risk[66]. Corporate Governance - The company has complied with the Corporate Governance Code provisions, except for the deviation regarding the Chairman and CEO being the same individual[189]. - The company continues to enhance its corporate governance practices to ensure compliance with the code provisions[189]. - The audit committee has reviewed the unaudited interim financial information for the six months ended June 30, 2021, with an unqualified review opinion issued by PricewaterhouseCoopers[196]. Future Outlook - The new Three-Child Population Policy is expected to drive demand for owner-occupied properties and housing improvements, supporting long-term industry stability[18]. - The Group plans to continue investing in property development projects and acquiring suitable land parcels, funded by internal resources and external borrowings[69].
港龙中国地产(06968) - 2021 - 中期财报