Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 1,594.1 million, a decrease of 30.7% year-on-year[1]. - The group’s total revenue for the six months ended June 30, 2024, is RMB 1,594,117,000, a decrease from RMB 2,299,491,000 in the same period of 2023, representing a decline of approximately 30.6%[17]. - Revenue from first-hand property agency services decreased by 36.6%, while revenue from real estate data and consulting services decreased by 15.9%[2]. - Revenue from primary property agency services decreased to RMB 81,603,000 for the six months ended June 30, 2024, down from RMB 128,741,000 in the previous year, reflecting a decline of about 36.6%[19]. - Revenue from real estate data and consulting services totaled RMB 186,710,000, down from RMB 222,043,000, indicating a decrease of approximately 15.9%[19]. - The digital marketing services segment generated revenue of RMB 687,391,000, a significant drop from RMB 1,150,154,000, representing a decline of around 40.4%[19]. - The company reported a net loss of approximately RMB 564.91 million for the six months ending June 30, 2024[12]. - The net loss for the six months ended June 30, 2024, was RMB 564.9 million, an improvement from a net loss of RMB 864.0 million for the same period in 2023[48]. - The group reported a pre-tax loss of RMB 892,218,000 for the six months ended June 30, 2024, compared to a loss of RMB 377,330,000 in the same period of 2023[20]. - Total comprehensive expenses for the six months ended June 30, 2024, were RMB 565.1 million, a decrease from RMB 863.0 million for the same period in 2023[49]. Cost Management - The company achieved a reduction in net loss by 34.6% year-on-year through cost control measures[2]. - The company will continue to focus on cost control and cash flow management to maintain sustainable operations[2]. - Employee costs reduced by 42.5% from RMB 622.2 million for the six months ended June 30, 2023, to RMB 357.5 million for the six months ended June 30, 2024, with employee costs as a percentage of revenue decreasing from 27.1% to 22.4%[35]. - Marketing and promotional expenses decreased by 45.1% from RMB 1,003.3 million for the six months ended June 30, 2023, to RMB 551.0 million for the six months ended June 30, 2024, mainly due to a reduction in costs[36]. - Distribution expenses decreased by 18.5% from RMB 749.7 million for the six months ended June 30, 2023, to RMB 610.8 million for the six months ended June 30, 2024, mainly due to a reduction in revenue from real estate brokerage network services[42]. - Other operating costs decreased by 26.3% from RMB 182.0 million for the six months ended June 30, 2023, to RMB 134.1 million for the six months ended June 30, 2024, primarily due to a reduction in company costs[43]. - Total depreciation and amortization expenses for the six months ended June 30, 2024, amounted to RMB 124,583 thousand, down from RMB 146,401 thousand in the same period of 2023[26]. Debt and Financial Position - The company is actively working on restructuring its offshore debt and plans to propose a new plan to bondholders[2]. - The company is negotiating debt restructuring with creditors to improve its financial situation[12]. - The company is seeking opportunities to sell its investment properties as part of its financial recovery strategy[12]. - As of June 30, 2024, total current liabilities amounted to RMB 9.9 billion, a slight decrease from RMB 9.9 billion as of December 31, 2023[6]. - As of June 30, 2024, the company's net current liabilities amounted to approximately RMB 8.77 billion[9]. - Total liabilities net of current liabilities were approximately RMB 6.51 billion[9]. - The company's total equity attributable to owners was approximately RMB 7.05 billion[9]. - The capital debt ratio as of June 30, 2024, was 173.8%, up from 145.8% as of December 31, 2023, primarily due to a decrease in total assets[52]. - The company reported a loss of approximately RMB 564,908,000 for the six months ended June 30, 2024, with a net cash outflow from operating activities of approximately RMB 118,107,000[60]. Credit Risk and Provisions - The group identified significant increases in credit risk for several real estate developer clients, leading to substantial expected credit loss provisions during the reporting period[16]. - The group has recognized substantial expected credit losses due to overdue trade receivables from real estate developers, which may further impact revenue recognition[16]. - The total provision for expected credit losses increased from RMB 6,324,754,000 as of December 31, 2023, to RMB 6,341,761,000 as of June 30, 2024[16]. - Provision for expected credit losses decreased by 16.7% from RMB 33.1 million for the six months ended June 30, 2023, to RMB 27.6 million for the six months ended June 30, 2024, primarily due to a decrease in receivables[39]. - The group continues to assess expected credit losses with the assistance of an independent professional valuation firm, especially when significant changes in client credit quality occur[15]. Corporate Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with all applicable provisions, except for the separation of the roles of Chairman and CEO[57]. - The audit committee has reviewed the unaudited interim results for the six months ended June 30, 2024, and discussed accounting policies and internal controls with senior management[61]. - The company has established a nomination committee and a remuneration committee in addition to the audit committee[62]. - The company will continue to review and monitor its corporate governance practices to ensure compliance with the Corporate Governance Code[57]. Other Financial Metrics - The company recorded bank and other interest income of RMB 1,989 thousand for the six months ended June 30, 2024, a significant decrease from RMB 5,760 thousand in the same period of 2023[23]. - Government subsidies received decreased to RMB 1,420 thousand for the six months ended June 30, 2024, compared to RMB 14,058 thousand for the same period in 2023[23]. - The company reported a net foreign exchange loss of RMB 25,376 thousand for the six months ended June 30, 2024, compared to a loss of RMB 147,402 thousand in the same period of 2023[25]. - The company’s deferred tax expense/credit for the six months ended June 30, 2024, was RMB 144,839 thousand, compared to a credit of RMB (16,341) thousand in the same period of 2023[24]. - The company’s impairment loss on intangible assets was RMB 39,775 thousand for the six months ended June 30, 2024, with no impairment loss reported in the same period of 2023[26]. - The company recorded an impairment loss on non-current assets of RMB 39.8 million for the six months ended June 30, 2024, compared to no impairment loss for the same period in 2023[40]. - The company did not declare any dividends for the six months ended June 30, 2024, and 2023[25]. - The company has no off-balance-sheet transactions as of June 30, 2024[52]. - The company faces foreign currency risk but currently has no hedging policy in place[55]. - The company had no significant investments or acquisitions during the reporting period[54]. - The interim results announcement has been published on the Hong Kong Stock Exchange website and the company's website[63].
易居企业控股(02048) - 2024 - 中期业绩