Revenue Performance - In the first half of 2024, the Group recorded a 30.7% year-on-year decrease in total sales revenue[10] - Revenues from primary market real estate agency services decreased by 36.6% year-on-year[10] - Revenues from real estate data and consulting services decreased by 15.9% year-on-year[10] - Revenues from real estate brokerage network services decreased by 20.1% year-on-year[10] - Revenues from digital marketing services decreased by 40.2% year-on-year[10] - Total revenue decreased by 30.7% to RMB1,594.1 million for the six months ended June 30, 2024, compared to RMB2,299.5 million for the same period in 2023[17] - Revenue from real estate agency services in the primary market fell by 36.6% to RMB81.6 million, primarily due to a decline in GTV caused by the overall downturn in the real estate market[19] - Revenue from digital marketing services decreased by 40.2% to RMB687.4 million, mainly due to a drop in revenues from e-commerce and online advertising services[20] - For the six months ended June 30, 2024, the Group's total revenue was 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%[160] Financial Losses and Expenses - The Group achieved a 34.6% year-on-year decrease in total net loss[11] - Loss for the period was RMB564.9 million, with total comprehensive expense amounting to RMB565.1 million[16] - Loss for the period amounted to RMB564.9 million for the six months ended June 30, 2024, compared to a loss of RMB864.0 million for the six months ended June 30, 2023[52] - Total comprehensive expense for the period amounted to RMB565.1 million for the six months ended June 30, 2024, compared to RMB863.0 million for the same period in 2023[53] - Operating loss was RMB300.7 million for the six months ended June 30, 2024, compared to RMB540.0 million for the six months ended June 30, 2023, with an operating loss margin of 18.9% for the former period and 23.5% for the latter[54] - EBITDA loss was RMB189.7 million for the six months ended June 30, 2024, compared to RMB511.5 million for the six months ended June 30, 2023[54] - The Group incurred a loss of approximately RMB564,908,000 for the six months ended 30 June 2024[140] - The company reported a net loss attributable to owners of the Company of RMB 5,027,872 for the period, compared to a loss of RMB 5,907,549 in the previous period, representing an improvement of approximately 16%[147] Cost Management and Operational Efficiency - Each of the Group's main business units achieved break even or slight operating profit in the first half of 2024, excluding certain expenses[11] - The Group continues to focus on cost reduction amid a challenging real estate market[11] - Staff costs decreased by 42.5% to RMB357.5 million, with staff costs as a percentage of revenue dropping from 27.1% to 22.4%[21] - Advertising and promotion expenses decreased by 45.1% to RMB551.0 million, primarily due to cost reduction[27] - Distribution expenses decreased by 18.5% from RMB749.7 million for the six months ended 30 June 2023 to RMB610.8 million for the six months ended 30 June 2024, primarily due to the decrease in revenue from real estate brokerage network services[39] - Other operating costs decreased by 26.3% from RMB182.0 million for the six months ended 30 June 2023 to RMB134.1 million for the six months ended 30 June 2024, primarily due to the Company's reduction of cost[40] - The Group has implemented cost-saving measures to improve its operating cash flows and financial position[152] Debt Restructuring and Financial Position - The Group is actively working on restructuring its offshore debt with creditors and advisors[9] - The company is actively working on a new restructuring proposal for its offshore debt and will update creditors as soon as possible[12] - The directors are undertaking measures to improve liquidity and financial position, including debt restructuring and disposal of investment properties[141] - The Group is negotiating with creditors for debt restructuring to improve its financial position[152] - The Group is seeking opportunities to dispose of its investment properties as part of its financial recovery strategy[152] - The auditor's report indicates significant uncertainties regarding the Group's ability to continue as a going concern[141] Shareholder Information and Corporate Governance - The Board did not recommend the payment of an interim dividend for the six months ended 30 June 2024[99] - The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code, except for the segregation of the roles of chairman and chief executive officer[87] - The Company was not involved in any material litigation or arbitration as of 30 June 2024[98] - The Company did not declare any dividends for the six months ended June 30, 2024, and 2023[182] Asset and Liability Management - Cash and cash equivalents decreased from RMB638.8 million as of 31 December 2023 to RMB312.9 million as of 30 June 2024[58] - The Group had net current liabilities of approximately RMB8,768,917,000 as of 30 June 2024[141] - The Group's total net liabilities amounted to approximately RMB7,127,054,000[140] - Total liabilities due to related parties increased to RMB 197,544,000 as of June 30, 2024, from RMB 171,355,000 as of December 31, 2023, marking a rise of 15.3%[193] - The Group's cash flows from operating activities decreased significantly compared to the previous year, reflecting ongoing operational challenges[150] Credit Risk and Receivables - A significant amount of Trade Related Balances from certain property developer customers has become overdue, indicating increased credit risk at the end of the reporting period[158] - The company continues to monitor and manage credit risk associated with accounts receivables to mitigate potential losses[200] - The loss allowance for accounts receivables and bills receivables measured at amortised cost increased slightly to RMB 538,044,000 from RMB 536,944,000[187] Market Conditions and Future Outlook - The real estate industry in China remains depressed due to poor buyer sentiment and decelerating economic growth[10] - The company expects to continue facing a challenging operating environment in the second half of 2024, focusing on cost control and cash flow to maintain sustainable operations[14] - The company anticipates higher revenue from real estate agency services in the second half of the financial year due to seasonal marketing activities by property developers[165]
易居企业控股(02048) - 2024 - 中期财报