Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 3,773,471, an increase of 5.93% compared to RMB 3,561,981 for the same period in 2023[6]. - The company reported a gross loss of RMB (262,096) for the first half of 2024, compared to a gross profit of RMB 331,359 in the same period of 2023[6]. - Loss before income tax increased to RMB (674,615) in the first half of 2024, compared to RMB (133,116) in the same period of 2023[6]. - Loss attributable to owners of the company for the period was RMB (631,145), up from RMB (216,732) in the first half of 2023[6]. - Basic and diluted loss per share attributable to owners of the company was RMB (14.64) compared to RMB (9.70) in the same period of 2023[6]. - Total comprehensive expense for the period was RMB (870,279), compared to RMB (583,324) in the same period of 2023[84]. - The Group recorded a loss of approximately RMB 631.1 million for the six months ended June 30, 2024 compared to a loss of approximately RMB 216.7 million for the same period in 2023[34]. - For the six months ended June 30, 2024, the Group incurred a net loss attributable to the owners of approximately RMB 519,804,000, compared to a net loss of approximately RMB 344,503,000 for the same period in 2023[103]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 48,877,523, a decrease from RMB 51,464,000 as of December 31, 2023[7]. - Cash and cash equivalents decreased to RMB 243,045 from RMB 792,264 as of December 31, 2023[7]. - Total bank and other borrowings stood at RMB 15,699,953 as of June 30, 2024, compared to RMB 15,588,767 as of December 31, 2023[7]. - The Group's net current liabilities amounted to approximately RMB 295.5 million as of June 30, 2024, compared to net current assets of RMB 272.0 million on December 31, 2023[41]. - The current ratio was approximately 0.99 times as of June 30, 2024, down from 1.01 times on December 31, 2023[41]. - The Group's total liabilities reached RMB 46,582,417, reflecting a slight increase from the previous period, indicating ongoing financial obligations[88]. - The Group's financial position reflects significant liabilities due to the outstanding senior notes[197]. Market Conditions - In the first half of 2024, China's GDP reached RMB 61.7 trillion, with a steady growth rate of 5%[11]. - New home sales area in the real estate industry decreased by 19% year-on-year to 480 million sq.m., while sales fell 25% year-on-year to RMB 4.7 trillion[11]. - The overall real estate market is still at the bottom stage, with no significant improvement in price reduction despite a slowdown in the downward trend[11]. - The central and local governments introduced policies to stimulate the real estate market, including reducing down payment ratios and housing loan interest rates[11]. - The downturn in the real estate industry in the PRC has impacted the Group's going concern assessment since June 30, 2024[64]. Strategic Initiatives - The company is focusing on market expansion and new product development as part of its strategic initiatives[8]. - The Group implemented a cautious operation plan and strengthened lean management to improve fund utilization efficiency[11]. - The Group aims to accelerate the pre-sale and sale of properties under development and enhance collection of outstanding sales proceeds[107]. - The Group is committed to aligning with national strategic deployment during the industry's deep adjustment phase[64]. - The Group anticipates that policies aimed at mitigating risks in the real estate industry will stabilize the market and reduce inventory[64]. Corporate Governance - The board of directors includes experienced members with a focus on corporate governance and sustainability[9]. - The Company aims to maintain and improve high standards of corporate governance practices[74]. - The Company has engaged an independent internal control consultant to review its internal control system, with findings to be published upon completion[74]. - The Company has complied with the Corporate Governance Code provisions, except for a deviation regarding the retirement of directors due to the timing of annual general meetings[74]. Employee and Operational Metrics - As of June 30, 2024, the Group had 2,753 employees, a decrease from 2,859 employees as of December 31, 2023[56]. - For the six months ended June 30, 2024, the total remuneration for the Group's employees, including Directors' emoluments, was approximately RMB 200.6 million[56]. - Selling and marketing expenses decreased by 55.7% to approximately RMB 94.7 million for the six months ended 30 June 2024 from approximately RMB 214.0 million for the same period in 2023[33]. - General and administrative expenses decreased by 29.3% to approximately RMB 205.9 million for the six months ended 30 June 2024 from approximately RMB 291.1 million for the same period in 2023[33]. Financial Ratios and Performance Indicators - The average selling price (ASP) and GFA delivered by geographical segments will be detailed in the upcoming report[27]. - The recognized average selling price (ASP) increased from RMB 8,626 per sq.m. in the first half of 2023 to RMB 10,306 per sq.m. in the first half of 2024, reflecting a rise of approximately 19.5%[29]. - The total Gross Floor Area (GFA) delivered decreased by 10.9% from 384,417 sq.m. in the first half of 2023 to 342,424 sq.m. in the first half of 2024[29]. - The Group's net debt to equity ratio increased to 666%, up from 426% on December 31, 2023[40]. Shareholder Information - As of June 30, 2024, the total number of issued shares was 3,551,609,322[4]. - Mr. Wong holds a long position of 1,423,944,000 shares, representing 40.09% of the Company's issued share capital[66]. - The board of Directors does not recommend the payment of interim dividend for the six months ended 30 June 2024, consistent with the previous year where no dividend was paid[74]. - No directors or chief executives had any interest or short position in the shares as of June 30, 2024[4].
力高集团(01622) - 2024 - 中期财报