Revenue and Sales Performance - For the six months ending June 30, 2024, the company's revenue from property development decreased by 15% to RMB 10.484 billion, down from RMB 12.305 billion in the same period last year[6]. - Revenue for the six months ended June 30, 2024, was RMB 14,210,860 thousand, down 13.4% from RMB 16,416,162 thousand in the same period of 2023[25]. - Total revenue for the six months ended June 30, 2024, was RMB 14.458 billion, with property development contributing RMB 10.484 billion[35]. - The total area of properties delivered during the period was 887,900 square meters, a decrease of approximately 38% compared to 1,442,000 square meters delivered in the same period last year[6]. - The average selling price per square meter increased to RMB 11,800, compared to RMB 8,500 in the first half of 2023[6]. Profitability and Costs - The overall gross profit for the period was RMB 1.329 billion, down from RMB 3.234 billion in the same period last year[8]. - The gross profit margin for property development (excluding inventory impairment provisions) was 10.9%, compared to 17.2% in the first half of 2023[8]. - The company's total sales cost for the first half of 2024 was RMB 12.882 billion, a decrease of 2% from RMB 13.182 billion in the same period last year[7]. - The cost of land and construction accounted for 89% of the total property development costs, with the cost per square meter rising from RMB 6,140 to RMB 9,330[7]. - The gross profit margin significantly declined, with gross profit dropping to RMB 1,328,901 thousand from RMB 3,234,326 thousand, indicating a decrease of approximately 59%[25]. Financial Position and Liabilities - The company's total assets decreased from RMB 334,868,229 thousand as of December 31, 2023, to RMB 312,202,143 thousand as of June 30, 2024, representing a decline of approximately 6.8%[21]. - The total liabilities also decreased from RMB 288,476,067 thousand to RMB 267,987,680 thousand, a reduction of about 7.1%[23]. - Total bank borrowings and other debts amounted to RMB 124.317 billion, with RMB 65.436 billion due within the next twelve months[29]. - The company has not repaid certain bank and other borrowings totaling RMB 27.699 billion as of June 30, 2024[29]. Net Loss and Financial Results - The company recorded a net loss of approximately RMB 2.331 billion for the first half of 2024, an improvement from a net loss of RMB 4.978 billion in the same period of 2023, attributed to gains from asset sales and reduced foreign exchange losses[13]. - The net loss for the period was RMB 2,330,701 thousand, compared to a net loss of RMB 4,977,775 thousand in the prior year, showing an improvement of about 53%[26]. - The company reported a loss attributable to owners of RMB 2.331 billion for the six months ended June 30, 2024[29]. - The company incurred a net loss of RMB 2.331 billion for the period, with financing costs amounting to RMB 2.752 billion[35]. Other Income and Gains - Other income and gains for the first half of 2024 amounted to RMB 1.715 billion, a significant increase from RMB 307 million in the same period of 2023, primarily due to gains from the sale of subsidiaries and joint ventures[9]. - Other income increased to RMB 171,360 thousand from RMB 132,611 thousand, reflecting a growth of approximately 29.1%[25]. - The net gain from the sale of subsidiaries was RMB 1,093,387, significantly higher than RMB 30,139 in the previous year[43]. Cost Management and Operational Adjustments - The company plans to adjust its property development strategy in response to industry recovery, with expectations of more supportive government policies to stabilize the market[5]. - The company has made significant adjustments to control administrative costs and avoid unnecessary capital expenditures to maintain liquidity[30]. - Sales and marketing expenses for the first half of 2024 were RMB 606 million, up from RMB 500 million in the same period of 2023, while administrative expenses decreased by 33% to RMB 1.577 billion from RMB 2.356 billion[10]. Financing and Debt Management - Net financing costs decreased by 34% to RMB 2.752 billion in the first half of 2024, down from RMB 4.164 billion in the same period of 2023, mainly due to reduced foreign exchange losses[11]. - The company is currently facing cash flow pressure and has not made cash interest payments on approximately USD 147 million of preferred notes that matured on July 11, 2024[49]. - The company is in discussions with preferred noteholders regarding a friendly resolution and is considering all possible actions, including an overall debt management plan for offshore debts[49]. - The company plans to actively negotiate the extension of certain borrowings and seek new financing sources to address upcoming financial obligations[30]. Corporate Governance and Management - The company has complied with the corporate governance code and has established a robust audit committee to oversee financial reporting and risk management[16][17]. - The management expressed commitment to addressing market challenges and maintaining operational stability during a difficult market environment[19]. Dividend and Shareholder Returns - No interim dividend was declared for the six months ended June 30, 2024, consistent with the previous year[15]. - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the same period in 2023[48].
富力地产(02777) - 2024 - 中期业绩