众安集团(00672) - 2024 - 中期业绩

Financial Highlights and Performance Overview This section summarizes the group's key financial performance and operational highlights for the reporting period Core Performance Overview In H1 2024, the group saw revenue more than double and gross profit surge by 161.7%, but profit for the period declined 24.5% to RMB 118 million, despite maintaining healthy gearing ratios Key Performance Indicators for H1 2024 | Indicator | H1 2024 (RMB Million) | H1 2023 (RMB Million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 9,282.9 | 4,078.1 | +127.6% | | Gross Profit | 1,830.0 | 699.2 | +161.7% | | Profit for the Period | 117.9 | 156.1 | -24.5% | | Contracted Sales | 2,875.0 | N/A | -61.4% | | Total Asset-Liability Ratio | 69.1% | - | - | | Net Gearing Ratio | 44.8% | - | - | Interim Condensed Consolidated Financial Statements This section presents the group's consolidated financial statements, including profit or loss, comprehensive income, and financial position, for the interim period Consolidated Statement of Profit or Loss For the six months ended June 30, 2024, revenue increased 127.6% to RMB 9.28 billion, but profit for the period decreased 24.5% to RMB 118 million due to fair value losses and higher tax expenses Consolidated Statement of Profit or Loss Core Data (RMB Thousand) | Item | H1 2024 (Unaudited) | H1 2023 (Unaudited) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 9,282,943 | 4,078,059 | +127.6% | | Gross Profit | 1,830,042 | 699,196 | +161.7% | | Fair Value Change of Investment Properties | (535,900) | (29,911) | Loss Widened | | Profit Before Tax | 852,866 | 287,623 | +196.5% | | Income Tax Expense | (734,965) | (131,559) | +458.7% | | Profit for the Period | 117,901 | 156,064 | -24.5% | | Profit Attributable to Owners of the Parent | 62,509 | 196,571 | -68.2% | | Basic Earnings Per Share | RMB 1.11 cents | RMB 3.49 cents | -68.2% | Consolidated Statement of Comprehensive Income Building on the RMB 118 million profit for the period, total comprehensive income for the period was RMB 143 million, a decrease from RMB 221 million in the prior year, after accounting for other comprehensive income items Total Comprehensive Income Composition (RMB Thousand) | Item | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Profit for the Period | 117,901 | 156,064 | | Other Comprehensive Income for the Period | 24,710 | 64,999 | | Total Comprehensive Income for the Period | 142,611 | 221,063 | | Attributable to Owners of the Parent | 81,613 | 246,014 | | Attributable to Non-controlling Interests | 60,998 | (24,951) | Consolidated Statement of Financial Position As of June 30, 2024, total assets decreased 12.7% to RMB 42.39 billion, primarily due to reductions in properties under development and contract liabilities, while net assets remained stable Financial Position Summary (RMB Thousand) | Item | June 30, 2024 (Unaudited) | Dec 31, 2023 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 42,393,898 | 48,569,768 | -12.7% | | Total Non-current Assets | 12,282,580 | 13,095,086 | -6.2% | | Total Current Assets | 30,111,318 | 35,474,682 | -15.1% | | Total Liabilities | 29,298,442 | 35,614,568 | -17.7% | | Total Current Liabilities | 24,390,620 | 28,732,847 | -15.1% | | Total Non-current Liabilities | 4,907,822 | 6,881,721 | -28.7% | | Net Assets/Total Equity | 13,095,456 | 12,955,200 | +1.1% | Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes and disclosures supporting the interim condensed consolidated financial statements, offering further insights into specific financial items Operating Segment Information In H1 2024, the residential segment reported a loss of RMB 24.49 million on RMB 6.36 billion revenue, while the commercial segment generated RMB 877.36 million profit from RMB 2.92 billion revenue, becoming the primary profit driver - Group operations are divided into two reportable operating segments - Residential Segment: Engaged in the development and sale of residential properties and related services in Mainland China and Canada[11] - Commercial Segment: Engaged in commercial property development, sales, leasing, and hotel operations in Mainland China, Japan, and the UK[11] Segment Results (H1 2024, RMB Thousand) | Segment | Sales to External Customers | Segment Results (Pre-tax Profit/Loss) | | :--- | :--- | :--- | | Residential | 6,361,169 | (24,492) | | Commercial | 2,921,774 | 877,358 | | Total | 9,282,943 | 852,866 | Revenue, Other Income and Gains Total revenue for the period was RMB 9.28 billion, with RMB 9.23 billion from customer contracts, predominantly property sales, while other income and gains decreased due to lower interest income Customer Contract Revenue Breakdown (H1 2024, RMB Thousand) | Type of Goods or Services | Revenue Amount | | :--- | :--- | | Property Sales | 8,920,811 | | Hotel Operations Revenue | 112,651 | | Property Management and Other Services | 200,835 | | Total Customer Contract Revenue | 9,234,297 | Income Tax Expense Total income tax expense for the period significantly increased by 458.7% to RMB 735 million, primarily driven by higher PRC corporate income tax and land appreciation tax Income Tax Expense Composition (RMB Thousand) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | PRC Corporate Income Tax for the Period | 435,602 | 21,960 | | PRC Land Appreciation Tax for the Period | 495,433 | 109,238 | | Deferred Tax | (196,070) | 361 | | Total Tax Expense for the Period | 734,965 | 131,559 | - China's Land Appreciation Tax is levied at progressive rates from 30% to 60% on the appreciation amount from property sales after deducting allowable expenses[23] Earnings Per Share Basic earnings per share for the six months ended June 30, 2024, decreased significantly to RMB 1.11 cents from RMB 3.49 cents, primarily due to a substantial decline in profit attributable to ordinary shareholders Basic Earnings Per Share Calculation | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit Attributable to Ordinary Shareholders of the Parent (RMB Thousand) | 62,509 | 196,571 | | Weighted Average Number of Ordinary Shares in Issue (Shares) | 5,635,809,800 | 5,635,809,800 | | Basic Earnings Per Share | RMB 1.11 cents | RMB 3.49 cents | Management Discussion and Analysis (MD&A) This section provides management's perspective on the group's financial condition and results of operations, including industry trends, financial performance, and operational highlights Industry Review In H1 2024, China's real estate market continued to adjust with declines in investment and sales, yet the broader economy maintained stable growth, providing a foundation for industry transformation - In H1 2024, national real estate development investment decreased by 10.1% year-on-year, with residential investment down 10.4%[32] - New commercial housing sales area decreased by 19.0% year-on-year, and sales value decreased by 25.0% year-on-year, indicating continued weak market demand[32] - As of the end of June 2024, commercial housing inventory increased by 15.2% year-on-year, intensifying inventory pressure[33] Financial Analysis During the period, the group experienced high revenue growth but a decline in profit, driven by increased property sales and improved gross margin, offset by higher finance costs and income tax expenses despite reduced administrative and selling expenses Analysis of Key Financial Items Changes | Item | H1 2024 (RMB Million) | H1 2023 (RMB Million) | Y-o-Y Change | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Property Sales Revenue | 8,920.8 | 3,627.8 | +145.9% | Increase in delivered properties | | Cost of Sales | 7,452.9 | 3,378.9 | +120.6% | Increase in delivered properties | | Gross Profit Margin | 19.7% | 17.1% | +2.6 percentage points | - | | Selling and Distribution Expenses | 117.1 | 158.1 | -25.9% | Reduced expenditure | | Administrative Expenses | 253.6 | 341.2 | -25.7% | Cost reduction and efficiency measures | | Finance Costs | 77.4 | 55.9 | +38.4% | Decrease in capitalized interest | | Income Tax Expense | 735.0 | 131.6 | +458.7% | Increase in taxable profit and LAT | | Profit | 117.9 | 156.1 | -24.5% | - | Business Operations Analysis In H1 2024, the group faced operational challenges with a 61.4% decline in contracted sales, but achieved strong confirmed sales of RMB 8.92 billion with a 3.9% increase in average selling price, maintaining substantial land reserves - Contracted sales area for the period was approximately 167,000 square meters, with contracted sales value of approximately RMB 2.875 billion[44] - Confirmed sales area for the period was approximately 414,000 square meters, with a value of approximately RMB 8.921 billion[46] - The average property selling price was RMB 21,528 per square meter, a year-on-year increase of 3.9%; the average cost of sales was RMB 16,843 per square meter, a year-on-year decrease of 5.2%[47] - As of June 30, 2024, total land reserves amounted to approximately 810 million square meters in gross floor area, with an average acquisition cost of RMB 2,845 per square meter, sufficient for over five years of development[48] Capital Structure and Liquidity As of June 30, 2024, the group maintained a stable capital structure with a net gearing ratio of 45% and a current ratio of 1.23, while managing its interest-bearing borrowings and contingent liabilities Key Financial Ratios | Indicator | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Current Ratio | 1.23 | 1.23 | | Net Gearing Ratio | 0.45 | 0.43 | | Interest-bearing Borrowings to Total Assets Ratio | 0.18 | 0.17 | - Total interest-bearing bank and other borrowings amounted to RMB 7.79 billion, with approximately 46% (RMB 3.59 billion) due within one year[49][50] - As of June 30, 2024, the group had capital commitments for real estate development of approximately RMB 2.56 billion, and contingent liabilities of approximately RMB 8.28 billion (primarily guarantees for purchasers' mortgages)[52][53] - The group's properties, plant, and equipment with a total book value of approximately RMB 13.03 billion were pledged as collateral for bank financing[54] Human Resources As of June 30, 2024, the group's employee count decreased to 4,986, with a 20.0% reduction in staff costs to RMB 187 million, reflecting cost control measures and a market-linked compensation policy - As of June 30, 2024, the group had 4,986 employees, compared to 5,427 in the prior year period[57] - Staff costs for the review period were approximately RMB 187 million, a year-on-year decrease of 20.0%[57] Other Disclosures and Outlook This section covers additional disclosures, including the dividend policy and the group's strategic outlook for navigating future market conditions and ensuring sustainable development Dividends The Board does not recommend an interim dividend for the six months ended June 30, 2024, with the dividend policy considering operational results, financial position, and future expansion plans - The Board does not recommend an interim dividend for the review period (H1 2023: nil)[61][31] Outlook For H2 2024, the group anticipates a gradual stabilization of China's real estate market supported by government policies, focusing on 'ensuring delivery, stable operations, and risk control' to navigate the industry cycle - The group expects macro policies to be further implemented in the second half of the year, contributing to the stabilization of the real estate market[62] - The company's core strategy for the second half of the year is to "ensure delivery, stabilize operations, and control risks," with plans to strengthen refined sales management and innovation[62] Corporate Governance During the reporting period, the company complied with the Corporate Governance Code, with the Audit Committee reviewing the unaudited interim consolidated results and the external auditor conducting a review - The company has complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules[64] - The Audit Committee, comprising all independent non-executive directors, has reviewed the unaudited financial results for the current period[65]