Financial Performance - The Group's revenue for the six months ended June 30, 2023, was approximately RMB 233.0 million, representing an increase of approximately 9 times compared to RMB 23.2 million for the same period last year [11]. - Gross profit for the Group was approximately RMB 35.9 million, reflecting an increase of approximately 93.1% compared to the same period last year [11]. - Loss attributable to the owners of the Company was approximately RMB 251.5 million, a decrease of approximately 73.2% from a loss of approximately RMB 939.9 million in the same period last year [14]. - Basic loss per share was approximately RMB 0.134, compared to RMB 0.500 for the six months ended June 30, 2022 [15]. - Revenue from property sales was approximately RMB 230.9 million, representing an increase of approximately 7.7 times compared to the same period last year [17]. - The Group recorded total revenue of approximately RMB233.0 million, representing an increase of approximately 9 times from RMB23.2 million in the same period last year [25]. - Loss attributable to the owners of the Company was approximately RMB251.5 million, a decrease of 73.2% from a loss of approximately RMB939.9 million for the same period last year [26]. - Gross profit for the period was approximately RMB 35.9 million, an increase of approximately RMB 17.3 million or 93.1% compared to RMB 18.6 million for the same period last year [42]. - Operating loss was approximately RMB 270.6 million, a decrease of approximately RMB 872.5 million or 76.3% compared to the loss of approximately RMB 1,143.1 million for the same period last year [55]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to approximately RMB 2,233.8 million, down from approximately RMB 2,626.8 million as of December 31, 2022 [16]. - Total liabilities were approximately RMB 4,882.3 million as of June 30, 2023, compared to approximately RMB 4,993.7 million as of December 31, 2022 [16]. - Total deficits were approximately RMB 2,648.5 million as of June 30, 2023, compared to approximately RMB 2,366.9 million as of December 31, 2022 [16]. - Net liabilities per share increased to approximately RMB 1.41 as of June 30, 2023, from approximately RMB 1.26 as of December 31, 2022 [16]. - As of June 30, 2023, total current assets were approximately RMB 1,108.8 million, down approximately RMB 379.0 million from RMB 1,487.8 million as of December 31, 2022, accounting for approximately 49.6% of total assets [80]. - The Group's cash and cash equivalents decreased to approximately RMB 1.8 million, down approximately RMB 6.2 million or 77.7% from RMB 8.0 million as of December 31, 2022 [72]. - Trade receivables, prepayments, and other assets totaled approximately RMB 42.9 million, a decrease of approximately RMB 14.7 million or 25.5% compared to RMB 57.5 million as of December 31, 2022 [73]. - The current ratio as of June 30, 2023, was 0.24:1, down from 0.31:1 as of December 31, 2022 [83]. - The gearing ratio improved to (140.8)% as of June 30, 2023, compared to (186.5)% as of December 31, 2022 [84]. Revenue Sources - Property sales revenue was approximately RMB230.9 million, accounting for about 99.1% of total revenue, with a total GFA sold of approximately 34,870 sq.m., an increase of approximately 37.5 times compared to the same period last year [32]. - The average selling price for contracted sales was approximately RMB6,621 per sq.m., a significant increase of approximately 103.3% compared to RMB3,257 per sq.m. in the same period last year [25]. - Rental income decreased to approximately RMB2.1 million, a decline of approximately 89.6% from RMB20.2 million in the same period last year [41]. - The actual area leased out of the Group's investment properties was approximately 28,286.78 sq.m., representing about 45.5% of the total investment properties held-for-lease [40]. Cost Management - Selling and administrative expenses decreased by approximately RMB 15.6 million or 41.9% to approximately RMB 21.6 million compared to RMB 37.2 million for the same period last year [48]. - Other expenses amounted to approximately RMB 226.5 million, a decrease of approximately RMB 108.0 million or 32.3% compared to RMB 334.5 million for the same period last year [49]. - Finance costs increased to approximately RMB 36.4 million, an increase of approximately RMB 34.7 million or 21.1 times compared to RMB 1.6 million for the same period last year [57]. - Income tax expenses amounted to approximately RMB 11.0 million, an increase of approximately RMB 183.2 million compared to an income tax credit of approximately RMB 172.2 million for the same period last year [58]. Strategic Initiatives - The Group adopted a rapid sales and fund recovery strategy, leading to significant discounts in selling prices to clear remaining commercial property inventory [25]. - Looking ahead, the macroeconomic environment in China is expected to rebound, which may positively impact the real estate market and investment intentions [21]. - The management is actively pursuing negotiations with large property developers to sell individual property development projects or whole commercial properties at appropriate prices [173]. - The management is actively promoting attractive sales strategies for residential properties to maintain adequate cash inflow due to a weakened market segment [177]. - A proposal for capital re-organization and rights issue has been launched to raise approximately HK$84.2 million to repay borrowings and maintain working capital [177][179]. Corporate Governance - The Audit Committee has reviewed the interim results for 2023 and confirmed compliance with applicable accounting standards and regulations [198]. - The Audit Committee consists of four independent non-executive Directors, ensuring appropriate professional qualifications for oversight [199]. - The company has adopted the Corporate Governance Code and complied with its provisions during the reporting period, with a noted deviation regarding the roles of chairman and CEO being held by the same individual [181][183].
新明中国(02699) - 2024 - 中期财报