Economic Overview - The gross domestic product (GDP) of China experienced a solid growth rate of approximately 5.0% year-on-year in the first half of 2024[5]. - The overall macro-economy in China is showing a stable and forward-looking trend despite facing negative external factors[5]. Real Estate Market Performance - The total sales area of commercial housing in China amounted to approximately 479 million sq.m., representing a decrease of approximately 19.5% compared to the same period last year[6]. - The sales volume of commercial housing decreased by approximately 25.3% year-on-year to approximately RMB 4.71 trillion in the first half of 2024[6]. - Total investment in the real estate sector in the first half of 2024 amounted to approximately RMB 5.25 trillion, representing a year-on-year decrease of approximately 10.3%[6]. - Market confidence in the real estate sector remains low, with cautious purchasing behavior and a strong wait-and-see sentiment among buyers[6]. - The real estate sector continues to face challenges of insufficient market demand and deleveraging, with an overall downtrend remaining unchanged[6]. Government Policies and Market Outlook - The central government has implemented stimulus policies in the real estate sector, including reducing the down payment ratio and lowering interest rates for housing loans[9]. - The policies to support the real estate sector aim to gradually restore stable development and build a new model for real estate development[9]. - The pace of market recovery is expected to be constrained due to weak demand, and it will take time to consume the excess inventory[9]. - The central government is expected to continue easing regulatory policies in the real estate sector to promote healthy market development and accelerate inventory reduction[15][18]. - The Group anticipates that inflation will ease and interest rates will gradually decline, which may improve market conditions in the second half of 2024[15][18]. Financial Performance of the Group - The Group recorded a revenue of approximately RMB 46.1 million for the first half of 2024, representing a decrease of approximately 85.9% compared to RMB 327.7 million in the same period of 2023[12][19]. - The loss attributable to equity shareholders for the first half of 2024 was approximately RMB 61.7 million, compared to a profit of approximately RMB 0.7 million in the corresponding period of 2023[12][19]. - The Group's aggregated contracted sales value for the first half of 2024 was approximately RMB 106.2 million, with a total gross floor area (GFA) of approximately 15,200 sq.m.[12][19]. - The cost of sales for the first half of 2024 was approximately RMB 31.4 million, a decrease of approximately 84.5% from RMB 202.5 million in the same period of 2023[20]. - The gross profit for the first half of 2024 was approximately RMB 14.8 million, down 88.2% from RMB 125.2 million in the previous year[20]. - Revenue from property sales for the six months ended June 30, 2024, was approximately RMB 43.5 million, a decrease of approximately 86.6% compared to RMB 325.8 million for the same period in 2023[24]. Changes in Assets and Liabilities - Total assets decreased to RMB 1,574,851,000 as of June 30, 2024, down from RMB 1,672,400,000 at the end of 2023, representing a decline of approximately 5.8%[121]. - Total equity attributable to equity shareholders decreased to RMB 625,609,000 from RMB 685,421,000, reflecting a decline of approximately 8.7%[122]. - The company reported a loss for the period of RMB 61,722,000 for the six months ended June 30, 2024, compared to a profit of RMB 730,000 for the same period in 2023[125]. - Cash and cash equivalents decreased to RMB 314,416,000 from RMB 363,294,000, a reduction of about 13.5%[121]. - Trade and other receivables increased significantly to RMB 233,550,000 from RMB 150,095,000, marking a rise of approximately 55.6%[121]. Corporate Governance and Compliance - The Board is committed to maintaining high standards of corporate governance and has complied with all mandatory code provisions for the six months ended June 30, 2024[82]. - All Directors confirmed full compliance with the Model Code and the Company's code of conduct for the six months ended June 30, 2024[86]. - The Audit Committee reviewed the unaudited interim financial information for the six months ended June 30, 2024, which was also reviewed by external auditor KPMG[89]. Shareholder Information - Mr. Wong Ting Chung holds 562,500,000 ordinary shares, representing approximately 75.0% of the issued share capital of the Company[96]. - The total number of issued ordinary shares is 750,000,000[5]. - The Company has not entered into any arrangements to enable Directors to acquire benefits through the acquisition of shares or debentures during the six months ended June 30, 2024[100]. Employee and Management Compensation - The Group's total staff costs were approximately RMB 12.4 million, down from RMB 17.7 million for the same period in 2023[73]. - The Group's key management personnel received short-term employee benefits totaling RMB 3,215,000 for the six months ended June 30, 2024, down from RMB 3,543,000 in the same period of 2023[197].
万城控股(02892) - 2024 - 中期财报