Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 12,770,676 thousand, a decrease of 10.8% compared to RMB 14,324,646 thousand for the same period in 2023[2] - Gross profit for the same period was RMB 965,277 thousand, down 18.5% from RMB 1,185,552 thousand in 2023[2] - Operating profit decreased significantly to RMB 640,867 thousand, compared to RMB 1,183,295 thousand in the previous year, reflecting a decline of 45.9%[2] - Net profit attributable to the owners of the company was RMB 373,845 thousand, a decrease of 47.9% from RMB 704,675 thousand in 2023[2] - Basic and diluted earnings per share were RMB 0.72, down from RMB 1.34 in the same period last year[2] - Total comprehensive income for the period was RMB 320,313 thousand, a decline of 65.5% compared to RMB 927,531 thousand in 2023[3] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 46,649,084 thousand, down from RMB 48,514,157 thousand at the end of 2023[5] - Total liabilities decreased to RMB 33,315,550 thousand from RMB 35,510,228 thousand at the end of 2023[5] - The group’s total liabilities decreased to RMB 17,631,768,000 as of June 30, 2024, from RMB 17,762,483,000 at December 31, 2023, reflecting a decline of 0.74%[26] Financial Losses - The company reported a significant increase in financial asset losses, with net losses of RMB 624,434 thousand compared to gains of RMB 96,581 thousand in the previous year[2] - The group reported a net loss from financial assets and contract assets impairment of RMB 84,511 for the six months ended June 30, 2024[12] Revenue Segmentation - The construction segment generated revenue of approximately RMB 8,596,299,000, an increase of about 4% year-on-year, while operating profit decreased by about 33% to RMB 324,535,000[31] - The real estate development segment reported revenue of approximately RMB 3,002,236,000, a substantial decrease of about 38%, with operating profit declining by about 57% to RMB 320,526,000[33] - The company reported a revenue of approximately RMB 1,001,350,000 for the building materials business for the six months ending June 30, 2024, a decrease of about 10% compared to the same period last year[41] Cash Flow and Expenses - Cash outflow from operating activities was approximately RMB 144,049,000, an increase in cash outflow of about RMB 308,793,000 compared to the same period last year[49] - Cash outflow from investing activities was approximately RMB 275,767,000, an increase of about RMB 250,845,000 compared to the same period last year[49] - Administrative expenses for the six months ended June 30, 2024, were approximately RMB 340,359,000, a decrease of about 9% from RMB 375,704,000 in the same period last year[50] Employee and Governance - As of June 30, 2024, the group employed 6,236 employees, a decrease from 6,445 employees as of June 30, 2023[62] - Employee welfare expenses reached approximately RMB 2,363,570,000 for the six months ended June 30, 2024, compared to RMB 2,251,063,000 for the same period in 2023, reflecting an increase of about 5%[62] - The group has adhered to all corporate governance codes as per the listing rules, with a noted deviation regarding the separation of roles between the Chairman and the CEO[63] Strategic Focus and Market Conditions - The company anticipates facing a more challenging market environment in the construction sector due to intensified competition and economic adjustments[32] - The company emphasizes the importance of high-quality real estate development, shifting focus from quantity to quality in response to market demands[44] - The company is committed to maintaining healthy and stable growth, focusing on high-quality project execution and actively expanding its business scope[43] Projects and Developments - The company has ongoing development projects with a total area of approximately 1,050,000 square meters for Baoye Four Seasons Garden, located in Zhejiang Province, with a planned construction area of about 650,000 square meters[34] - The company is actively selling remaining units in various projects, including Baoye Four Seasons Garden and Baoye Puyuan, with good sales momentum reported[37][38] Financial Management - The company maintains a stable cash flow and has a good credit rating, recognized as an AAA-rated enterprise by the People's Bank of China, which facilitates financing and allows the company to benefit from favorable bank lending rates[47] - As of June 30, 2024, the company had unused bank credit facilities amounting to approximately RMB 7 billion[47] - The company reported net financial income of approximately RMB 1,062,000 for the six months ended June 30, 2024, a decrease of about RMB 5,676,000 compared to RMB 6,738,000 in the same period last year[51]
宝业集团(02355) - 2024 - 中期业绩