SHUI ON LAND(HK:00272)2024-09-26 07:11Financial Performance - For the first half of 2024, the company recorded a profit of RMB 183 million, with a profit attributable to shareholders of RMB 72 million, reflecting a significant decline in net profit year-on-year due to insufficient new residential project completions [4]. - The group reported a profit of RMB 183 million for the first half of 2024, with a net profit attributable to shareholders of RMB 72 million, despite a significant year-on-year decline [15]. - The net profit attributable to shareholders for H1 2024 was RMB 72 million, a decrease of 88% from RMB 618 million in H1 2023 [60]. - The company reported a core profit of RMB 108 million in H1 2024, an 85% decrease from RMB 698 million in H1 2023 [60]. - Revenue for the six months ended June 30, 2024, was RMB 2,073 million, a decrease of 67.7% compared to RMB 6,431 million for the same period in 2023 [73]. - Property sales revenue for the six months ended June 30, 2024, was RMB 143 million, a significant decrease from RMB 4,662 million for the same period in 2023, representing a decline of approximately 96.9% [87]. - The group’s net profit for the period was RMB 183 million, compared to RMB 282 million in the same period of 2023, representing a decline of about 35.1% [90]. Market Conditions - The national residential sales area in the first half of 2024 decreased by 22.2% compared to 2023 and by 49.3% compared to 2021, indicating a significant downturn in the real estate market [5]. - The company maintains a cautious outlook on short-term business prospects due to overall liquidity constraints in the real estate sector [16]. - Real estate investment in China declined by approximately 10% in both 2022 and 2023, with a further drop of 10.1% in the first half of 2024 [52]. - China's GDP growth slowed from 5.3% in Q1 2024 to 4.7% in Q2 2024, with industrial production and exports increasing by 3.6% and 6.0% respectively [52]. Property Development and Sales - The total contract property sales for the first half of 2024 amounted to RMB 623 million, representing an 86% decrease compared to RMB 4,564 million in the same period of 2023 [24]. - The company has secured total sales of RMB 7.818 billion, which will be delivered and recognized in the second half of 2024 and beyond [18]. - The company has approximately 240,100 square meters of residential property available for sale and pre-sale in the second half of 2024 and beyond [27]. - The company plans to launch more projects in the second half of 2024, primarily in Shanghai, depending on construction progress and government pre-sale approvals [24]. - The average selling price (excluding parking spaces) for confirmed property sales in the first half of 2024 was RMB 14,600 per square meter [21]. Rental and Income Performance - The group's rental and related income increased by 16% to RMB 1.764 billion in the first half of 2024, despite a challenging real estate market [15]. - Rental and related income for the commercial property portfolio increased by 16% year-on-year to RMB 1.764 billion, with 77% of this income coming from properties in Shanghai [18]. - Rental and related income from investment properties increased by 11% to RMB 1.257 billion in the first half of 2024, up from RMB 1.131 billion in the same period of 2023 [55]. - The rental income from the newly opened Panlong Tiandi contributed significantly to the overall growth, with a 176% increase in rental income from this property [40]. Debt and Financial Management - The group repaid a total of RMB 40.6 billion in offshore debt since 2021, including USD 493.5 million in senior notes due on August 24, 2024 [11]. - The group had cash and bank deposits totaling RMB 105.43 billion, an increase from RMB 89.17 billion as of December 31, 2023 [63]. - The total debt structure of the group amounted to RMB 33.583 billion, with RMB 11.934 billion due within one year [63]. - The average cost of debt decreased to 5.98% in H1 2024 from 6.55% in H1 2023 [57]. Sustainability and Corporate Governance - All operational properties of Shanghai Xintiandi have transitioned to 100% renewable energy usage since July 1, 2024, marking a significant milestone in sustainability [9]. - The company has been recognized for its sustainable development efforts, winning the Climate Leadership Award from the Carbon Disclosure Project [16]. - The company has maintained its liability classification as current and non-current post the adoption of revised accounting standards, indicating no impact on financial position or performance [85]. - The company has complied with the Corporate Governance Code and all applicable code provisions during the six months ended June 30, 2024 [138]. Shareholder Information - The total number of shares issued by the company as of June 30, 2024, is 8,027,265,324 shares [127]. - The board consists of 11 members, including 4 executive directors and 7 independent non-executive directors, ensuring a balance of gender, skills, experience, and perspectives [140]. - The company did not recommend the distribution of an interim dividend for 2024, compared to an interim dividend of HKD 0.032 per share in the first half of 2023 [4].