LJZ(SH:600663)2018-07-26 16:00Real Estate Operations - The total building area of the company's long-term held properties is 2,601,617 square meters, with a rental rate of 94% for prime office buildings and 66% for hotel properties[9]. - The average rent for prime office properties is 8.32 RMB per square meter per day, while the average rent for hotel properties is 595.25 RMB per room per night[9]. - The occupancy rate for residential properties stands at 91%, with an average rent of 25,683 RMB per unit per month[9]. - The company holds approximately 2.6 million square meters of operating properties as of the first half of 2018, up from about 150,000 square meters in 2005[46]. - The company has a land reserve of approximately 659,500 square meters in the Suzhou Green Coast project, with a planned total construction area of about 1,084,100 square meters[51]. - The company is actively involved in the development of the Qiantan International Business District, accelerating the development process of its Qiantan project[4]. - The company is actively participating in the development of the Shanghai Lingang area, with project construction already underway[48]. - The company plans to accelerate the opening of the Tianjin L+MALL in September and the Shanghai L+MALL in December 2018, focusing on brand recruitment for these commercial projects[77]. Financial Performance - The company's operating revenue for the first half of 2018 was CNY 6,610,946,329.56, representing a 17.56% increase compared to CNY 5,623,392,695.22 in the same period last year[35]. - Net profit attributable to shareholders for the first half of 2018 reached CNY 1,838,651,204.74, a significant increase of 59.37% from CNY 1,153,682,662.79 year-on-year[35]. - Basic earnings per share for the first half of 2018 were CNY 0.5469, up 59.35% from CNY 0.3432 in the same period last year[36]. - The weighted average return on equity increased to 12.13%, up by 6.27 percentage points compared to 5.86% in the previous year[36]. - Real estate sales generated CNY 3,823,773,109.46 in revenue, a 45.00% increase from CNY 2,103,095,026.33 year-on-year[37]. - Revenue from real estate leasing rose to CNY 1,381,803,119.85, reflecting a substantial growth of 78.93% compared to CNY 291,119,830.49 in the previous year[37]. - The company achieved a net cash flow from operating activities of CNY 1,000,442,000.66, a turnaround from a negative cash flow of CNY -1,264,476,639.97 in the previous year, marking a 179.12% increase[35]. - The company reported a significant increase in management expenses by 32.25% to ¥120,183,379.76, primarily due to the operational costs of newly opened subsidiaries[84]. Strategic Initiatives - The company aims to become a leader in commercial real estate investment and development, focusing on high standards and efficiency in the financial sector's medium to long-term development planning[4]. - The company emphasizes sustainable development and shareholder returns, aiming for a win-win situation between regional development and corporate benefits[4]. - The company has established a "dual-wheel drive" collaborative development model across Shanghai, Tianjin, and Suzhou, promoting synergy between real estate and financial sectors[4]. - The company is focused on a dual-driven strategy of "real estate + finance" to maximize shareholder profits and enhance its competitive advantage[50]. - The company plans to enhance its operational performance and achieve new milestones in the second half of the year by focusing on reform and innovation[5]. Corporate Governance and Compliance - The company emphasizes strict compliance with corporate governance and risk management to ensure operational integrity and investor protection[52]. - The company ensures the independence of its financial operations, including establishing independent financial accounting departments and decision-making processes[105]. - The company commits to fair pricing in related transactions to avoid harming the interests of shareholders[105]. - The company guarantees that its subsidiaries will operate independently without interference from the parent company[105]. - The company emphasizes the importance of maintaining independent governance structures for its subsidiaries[105]. - The company is under investigation by the China Securities Regulatory Commission regarding the asset management issues[106]. Investment and Financing Activities - The company plans to acquire 88.2% equity of Shanghai Lujiazui Financial Development Co., Ltd. for cash[105]. - The company has successfully acquired 100% equity of Lujinfa, gaining three licensed financial institutions to support its financial services[50]. - The company completed the acquisition of 95% equity in Suzhou Green Shore for a total transaction amount of 8,525.2766 million yuan, with an equity transaction price of 6,840.2766 million yuan and a debt transaction price of 1,685 million yuan[98]. - The company plans to accept loans from its controlling shareholder, Lujiazui Group, with a maximum balance of RMB 60 billion, which can be used cyclically[116]. - As of June 30, 2018, the actual loans received from the controlling shareholder amounted to RMB 39.9 billion, with interest rates ranging from 3.9150% to 4.35%[117]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 110,951[124]. - The largest shareholder, Shanghai Lujiazui (Group) Co., Ltd., held 1,896,671,385 shares, accounting for 56.42% of the total shares[125]. - The company declared a dividend of RMB 1.56 billion for the fiscal year 2017, which remains unpaid as of the end of June 2018[89]. - The company distributed dividends totaling CNY 1,647,613,339.20 during the reporting period[166]. Market Environment - The real estate industry is experiencing increased barriers to entry, with a focus on comprehensive development capabilities to adapt to market changes[44]. - The company is facing a tightening funding environment in the real estate sector, which poses higher operational challenges and requires a focus on high-quality development and asset management[100].