粤海置地(00124) - 2024 - 中期财报

Cover This section serves as the cover page of the report Corporate Information This section provides fundamental information about Yuehai Land Holdings Limited, including board members, committee structures, principal bankers, registered office, auditors, and share-related details - The company's Chairman is Lan Runing, Vice Chairman is Kuang Hu, and Managing Director is Wang Jian[3] - The company's auditor is KPMG[3] - The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong, stock code 00124[3] Summary This section summarizes the company's key financial and operational metrics for the six months ended June 30, 2024, showing significant revenue growth but expanded losses due to lower-margin project deliveries and reduced fair value gains on investment properties, with no interim dividend declared Key Performance Indicators for H1 2024 | Metric | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue (HK$'000) | 2,803,824 | 973,596 | +188.0% | | Gross Profit (HK$'000) | 115,920 | 223,960 | -48.2% | | Loss Attributable to Owners of the Company (HK$'000) | (217,031) | (200,288) | +8.4% | | Basic Loss Per Share (HK Cents) | (12.68) | (11.70) | +8.4% | | Interim Dividend Per Share (HK Cents) | – | 3.00 | -100.0% | Key Financial Position as of June 30, 2024 | Metric | As of June 30, 2024 | As of December 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Current Ratio | 1.4 Times | 1.3 Times | +7.7% | | Gearing Ratio | 298.1% | 307.9% | -9.8 Percentage Points | | Net Asset Value Per Share (HK$) | 2.79 | 2.94 | -5.1% | Management's Discussion and Analysis This section details the company's business review, financial performance, risk factors, and outlook, focusing on property development and investment in the Greater Bay Area, where despite significant revenue growth from increased deliveries, losses expanded due to lower project margins, reduced fair value gains, and higher finance costs, yet management remains confident in the region's long-term real estate market Results During the reporting period, the Group's consolidated revenue significantly increased by 188.0% to approximately HK$2.804 billion due to increased gross floor area of properties sold, yet loss attributable to owners expanded by 8.4% to HK$217 million, primarily influenced by changes in gross profit margins of delivered properties, a substantial decrease in fair value gains on investment properties, increased net finance costs, and no impairment provision for inventories in the current period - Properties delivered in the current period, primarily from Foshan, Zhongshan, and Zhuhai projects, had lower gross profit margins compared to higher-margin Jiangmen projects in the prior period, leading to reduced property sales profit[7] - Fair value gains on investment properties (net of deferred tax) were only approximately HK$0.14 million, a significant decrease from the prior period[7] - Net finance costs increased by approximately HK$70.96 million year-on-year due to the cessation of capitalization for completed properties held for sale[7] - No further impairment indicators were identified in the current period, resulting in no inventory impairment provision, compared to HK$205 million provided in the prior period[7] Interim Dividend The Board resolved not to declare an interim dividend for the six months ended June 30, 2024 - The company did not declare an interim dividend for 2024, whereas an interim dividend of HK 3.00 cents per share was distributed for the same period in 2023[8] Business Review The Group's business focuses on property development and investment in China's Greater Bay Area, with projects across key cities including Shenzhen, Guangzhou, Foshan, Zhuhai, Zhongshan, Jiangmen, and Huizhou; during the reporting period, approximately 152,000 square meters of gross floor area were contracted for sale and 143,000 square meters delivered, with major projects like Guangzhou Yuehai Yungang City and Zhongshan Yuehai City achieving strong sales performance and top rankings in their respective regional markets - The Group focuses on property development and investment in the Greater Bay Area, with projects primarily located in Shenzhen, Guangzhou, Foshan, Zhuhai, Zhongshan, Jiangmen, and Huizhou[5] - During the reporting period, approximately 152,000 square meters of gross floor area were contracted for sale, and approximately 143,000 square meters were delivered[10][11] Sales Performance of Major Projects (As of June 30, 2024) | Property Project Name | Contracted Sales Area for the Period (sqm) | Cumulative Contracted Sales Ratio | Delivered Area for the Period (sqm) | Cumulative Delivered Ratio | | :--- | :--- | :--- | :--- | :--- | | Shenzhen • Yuehai City (North Plot) | 14,068 | 16.7% | – | 0.0% | | Guangzhou • Yuehai Yungang City | 19,587 | 20.2% | Not Applicable | Not Applicable | | Foshan • Yuehai Shigui Mansion | 13,870 | 58.6% | 49,536 | 46.5% | | Zhuhai • Yuehai Shigui Mansion | 6,139 | 48.3% | 19,229 | 34.9% | | Zhongshan • Yuehai City | 20,815 | 37.6% | 30,263 | 26.7% | - Guangzhou • Yuehai Yungang City project ranked first in online contracted sales value in Baiyun District, Guangzhou, during H1 2024[13] - Zhongshan • Yuehai City project ranked first in online contracted sales value in Ma'anshan Island, Cuiheng New Area, Zhongshan, during H1 2024[18] Financial Review Financially, the Group's loss attributable to owners increased year-on-year and return on equity decreased due to lower gross profit margins on delivered properties; while sales and marketing expenses decreased, administrative expenses rose due to cessation of capitalization; the Group maintains a sound financial position with increased cash and cash equivalents and a reduced gearing ratio, with most cash held in RMB Key Financial Indicators | Metric | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (HK$'000) | (217,031) | (200,288) | +8.4% | | Return on Equity (%) | -4.4% | -2.7% | -1.7 Percentage Points | | Net Asset Value (HK$ Billion) | 6.164 (As of June 30) | 6.429 (As of December 31) | -4.1% | - Sales and marketing expenses decreased by 8.6% year-on-year to HK$127 million; administrative expenses increased by 6.0% year-on-year to HK$106 million[23] - As of June 30, 2024, the Group's cash and cash equivalents were approximately HK$4.257 billion, an increase of 4.2% from the beginning of the year[26] - As of June 30, 2024, the Group's total interest-bearing loans were approximately HK$22.624 billion, with the gearing ratio decreasing to 298.1%; the weighted average effective annual interest rate for bank and other borrowings was 3.84%[27] - As of June 30, 2024, the Group provided guarantees of approximately HK$4.983 billion to banks for mortgage loans to purchasers of its properties[28] Risks and Uncertainties The Group's primary risks stem from fluctuations in the Mainland China real estate market, influenced by economic conditions, supply-demand dynamics, and government policies; other risks include volatile finance costs, fair value changes of investment properties, performance volatility, and exchange rate risks, which the Group manages through a diversified property portfolio, holding investment properties for rental income, and dynamic foreign exchange risk monitoring - Major business risks originate from the Mainland China real estate market and property prices, influenced by economic conditions, supply and demand, and various policies[29] - Finance costs are affected by market conditions, interest rates, and the Group's financial position; as of the period end, outstanding interest-bearing loans were approximately HK$22.624 billion[29] - Changes in the fair value of investment properties directly impact the profit or loss statement; to mitigate earnings volatility, the Group holds commercial properties for rental purposes to provide stable rental income[30] - The business is primarily concentrated in Mainland China, facing RMB exchange rate fluctuation risks; the Group manages this through optimizing funding arrangements and adjusting financing methods[30] Human Resources As of June 30, 2024, the Group employed 542 staff, a decrease of 26 from the end of 2023; the Group provides basic benefits and performance-linked incentive policies, along with various training programs - As of June 30, 2024, the Group's total number of employees was 542, a decrease from 568 at the end of 2023[32] Outlook Looking ahead, despite macroeconomic and real estate market challenges, management anticipates that with intensified "de-stocking" policies, new home sales in core first and second-tier cities are expected to accelerate bottoming out; in the long term, the Greater Bay Area's population and industrial agglomeration effects will continue to support housing demand, and the Group will adhere to its strategic positioning as an "influential urban comprehensive development expert in the Greater Bay Area," ensuring steady development and maintaining confidence in future business prospects - In the short term, the real estate market remains in a downward trend with slow recovery, prioritizing property delivery and inventory reduction as key industry development focuses[33] - In the long term, population and industrial agglomeration in the Greater Bay Area will persist, and demand for quality housing will maintain moderate growth[33] - The Group will focus on its strategic positioning as an "influential urban comprehensive development expert in the Greater Bay Area," fully committing to the construction, sales, and operation of existing projects, while prudently seizing expansion opportunities[34] Directors' and Shareholders' Interests This section discloses the share interests of the company's directors and substantial shareholders in the company and its associated corporations as of June 30, 2024, noting that Executive Director Mr. Jiao Li and Independent Non-executive Director Mr. Li Junhao hold company shares, and Yuehai Investment Limited is the company's substantial shareholder with a 73.82% stake Directors' Interests and Short Positions in Securities Discloses the personal and corporate interests of Directors Mr. Jiao Li and Mr. Li Junhao in the company's shares, as well as Mr. Jiao Li's personal interest in the associated corporation Yuehai Investment Limited Directors' Interests in the Company | Director's Name | Capacity/Nature of Interest | Number of Ordinary Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Jiao Li | Personal | 200,000 | 0.012% | | Li Junhao | Corporate | 2,000,000 | 0.117% | Substantial Shareholders' Interests Pursuant to the Securities and Futures Ordinance, Yuehai Investment Limited is the company's substantial shareholder, beneficially holding 1,263,494,221 shares, representing 73.82% of the issued shares; its controlling companies, Guangdong Yuehai Holdings Limited and Yuehai Holdings Limited, are deemed to have the same interests - Yuehai Investment Limited beneficially holds 73.82% of the company's shares, making it a substantial shareholder[37] - Guangdong Yuehai Holdings Limited is the company's ultimate controlling company, indirectly holding 73.82% interest in the company through its subsidiaries[38] Corporate Governance and Other Information This section outlines the company's corporate governance practices, directors' securities transactions, changes in directors' information, interim results review, and loan financing agreements requiring disclosure under listing rules; the company generally complied with the Corporate Governance Code during the reporting period, with one deviation regarding the Chairman's attendance at the AGM, and details three loan financing agreements containing specific covenants on controlling shareholders' equity structure - The company complied with the Corporate Governance Code during the reporting period, with the sole deviation being the Chairman's absence from the 2024 Annual General Meeting due to business commitments[39] - KPMG, the company's independent auditor, has reviewed this interim financial report[42] - The company disclosed three loan financing agreements containing specific performance covenants requiring controlling shareholders (Yuehai Holdings and Yuehai Investment) to maintain their controlling position and shareholding percentage in the company[44][45][46] Review Report This section presents the review report issued by KPMG, the independent auditor, on the Group's interim financial report for the six months ended June 30, 2024; the auditor conducted the review in accordance with Hong Kong Standard on Review Engagements, concluding that nothing came to their attention to suggest the interim financial report is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 - The review was conducted by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[52] - The review concluded that no material issues were identified suggesting the interim financial report was not prepared in accordance with Hong Kong Accounting Standard 34[53] Unaudited Interim Financial Report This section contains the Group's unaudited condensed consolidated financial statements, including the statement of profit or loss, statement of comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows, along with related notes to the financial report Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2024, the Group's revenue was HK$2.804 billion, a 188% year-on-year increase; gross profit was HK$116 million, a 48.2% year-on-year decrease; due to a significant reduction in fair value gains on investment properties and increased finance costs, the loss for the period was HK$216 million, with loss attributable to owners of the parent being HK$217 million Summary of Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Item (HK$'000) | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | 2,803,824 | 973,596 | | Gross Profit | 115,920 | 223,960 | | Operating (Loss)/Profit | (104,416) | 36,480 | | Loss Before Tax | (282,207) | (70,354) | | Loss for the Period | (215,743) | (171,217) | | Loss Attributable to Owners of the Company | (217,031) | (200,288) | Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group's total assets were HK$46.881 billion, a 4.2% decrease from the beginning of the year; total liabilities were HK$40.717 billion, and net assets were HK$6.164 billion; the current ratio was 1.4 times, indicating acceptable short-term solvency; major assets include properties under development and completed properties held for sale (totaling approximately HK$30.080 billion) and investment properties (approximately HK$9.047 billion) Summary of Condensed Consolidated Statement of Financial Position | Item (HK$'000) | As of June 30, 2024 | As of December 31, 2023 | | :--- | :--- | :--- | | ASSETS | | | | Total Non-current Assets | 10,252,125 | 10,301,279 | | Total Current Assets | 36,628,571 | 38,631,805 | | TOTAL ASSETS | 46,880,696 | 48,933,084 | | LIABILITIES AND EQUITY | | | | Total Current Liabilities | (26,727,809) | (30,334,931) | | Total Non-current Liabilities | (13,988,941) | (12,168,747) | | TOTAL LIABILITIES | (40,716,750) | (42,503,678) | | NET ASSETS | 6,163,946 | 6,429,406 | Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2024, the Group's net cash inflow from operating activities was HK$1.292 billion, primarily from property sales proceeds; net cash outflow from investing activities was HK$3.19 million; net cash outflow from financing activities was HK$1.086 billion, mainly due to loan repayments exceeding new borrowings; cash and cash equivalents at period-end were HK$4.257 billion, an increase of HK$202 million from the beginning of the period Summary of Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Item (HK$'000) | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 1,291,772 | 2,068,006 | | Net Cash Outflow from Investing Activities | (3,189) | (359,519) | | Net Cash (Outflow)/Inflow from Financing Activities | (1,086,346) | 2,651,983 | | Net Increase in Cash and Cash Equivalents | 202,237 | 4,360,470 | | Cash and Cash Equivalents at End of Period | 4,257,228 | 6,788,620 | Notes to the Unaudited Interim Financial Report The notes section provides detailed explanations and supplementary information on key items in the financial statements, including accounting policies, segment information, revenue composition, borrowing details, related party transactions, and fair value of financial instruments; key takeaways include property development as the primary source of revenue and performance, and the Group's substantial bank and related party borrowings with corresponding asset pledges and guarantees - The Group's business is segmented into property development, property investment, and other segments; the property development segment is the primary location of assets and liabilities and the main source of loss for the current period[83][84] - As of June 30, 2024, total bank and other borrowings were approximately HK$9.912 billion, and total loans from related parties were approximately HK$12.712 billion[104][113] - The Group provided building mortgage guarantees of approximately HK$4.983 billion for purchasers of its properties[110] - The Group has significant related party transactions with fellow subsidiaries and the ultimate controlling company, primarily involving leases, property management, and interest payments[111]