Financial Performance - The Group's revenue for the six months ended June 30, 2024, was approximately RMB 78.7 million, representing a decrease of approximately 66.2% compared to RMB 233.0 million for the same period last year [11]. - Gross profit for the Group was approximately RMB 15.7 million, reflecting a decrease of approximately 56.2% year-on-year [11]. - Loss attributable to the owners of the Company was approximately RMB 334.9 million, which is an increase of approximately 33.2% compared to the previous year [11]. - Basic loss per share attributable to owners of the Company was approximately RMB 0.178, compared to RMB 0.134 for the same period last year [14]. - The Group's total revenue decline indicates significant challenges faced in the current market environment [14]. - The increase in loss attributable to owners suggests ongoing operational difficulties that need to be addressed [14]. - Property sales revenue was approximately RMB 78.3 million, accounting for approximately 99.4% of total revenue, with a total GFA sold of approximately 16,727 sq.m., a decrease of approximately 52.0% compared to the same period last year [30]. - Rental income decreased to approximately RMB 0.4 million, a decline of approximately 79.2% from RMB 2.1 million for the same period last year, primarily due to adjustments in rental plans [38]. - Selling and administrative expenses amounted to approximately RMB 10.0 million, representing a decrease of approximately 53.8% compared to RMB 21.6 million for the same period last year [45]. - Other income and losses amounted to a loss of approximately RMB 4.5 million, an increase of approximately 9.1% compared to the loss of approximately RMB 4.1 million for the same period last year [40]. - The operating loss was approximately RMB 337.4 million, an increase of approximately RMB 66.8 million or 24.7% compared to the loss of approximately RMB 270.6 million for the same period last year [51]. Assets and Liabilities - As of 30 June 2024, total assets amounted to approximately RMB 2,068.1 million, while total liabilities were approximately RMB 5,370.4 million, resulting in total deficits of approximately RMB 3,302.3 million [24]. - As of June 30, 2024, total assets decreased to approximately RMB 2,068.1 million, down by approximately RMB 147.6 million from RMB 2,215.7 million as of December 31, 2023 [71]. - Total liabilities increased to approximately RMB 5,370.4 million, representing an increase of approximately RMB 195.3 million compared to RMB 5,175.2 million as of December 31, 2023 [72]. - The current ratio as of June 30, 2024, was 0.18:1, down from 0.27:1 as of December 31, 2023 [74]. - Cash and cash equivalents totaled approximately RMB 1.1 million as of June 30, 2024, down from approximately RMB 1.9 million as of December 31, 2023 [65]. - Trade receivables, prepayments, other receivables, and other assets decreased to approximately RMB 36.4 million, down by approximately RMB 5.2 million compared to RMB 41.7 million as of December 31, 2023 [66]. - Trade payables, contract liabilities, other payables, and accruals increased to approximately RMB 2,733.2 million, up by approximately RMB 665.5 million or 7.1% compared to RMB 2,067.7 million as of December 31, 2023 [70]. - The total trade payables, contract liabilities, other payables, and accrued expenses amounted to approximately RMB 2,733.2 million, an increase of approximately RMB 665.5 million or 7.1% compared to RMB 2,067.7 million as of December 31, 2023, primarily due to provisions for related interest penalties and loan defaults [75]. Corporate Governance - The roles of chairman and CEO are held by the same individual, Mr. Chen, which the Board believes is beneficial for the Group's management and business prospects [175]. - The company has adopted the corporate governance code as per the Listing Rules and has complied with it during the reporting period, with the exception of the separation of the roles of Chairman and CEO, which are held by Mr. Chen Chengshou [177]. - The Audit Committee has reviewed the interim results for 2023 and confirmed compliance with applicable accounting standards, laws, and regulations [191]. - The Audit Committee consists of four independent non-executive Directors, ensuring appropriate professional and accounting qualifications [192]. - The Remuneration Committee is responsible for reviewing and determining the remuneration packages for Directors and senior management, consisting of four independent non-executive Directors [198]. - The Nomination Committee leads the process for Board appointments and considers the challenges and opportunities facing the company [200]. Employee and Talent Management - As of June 30, 2024, the Group has a total of 42 employees, down from 55 employees as of June 30, 2023, primarily due to a cost efficiency campaign [108]. - The Group has adopted a share option scheme and a share award scheme to improve employee remuneration linked to performance [108]. - The Group is focused on upgrading talent and maintaining harmonious labor relations while improving the remuneration allocation system [108]. Future Outlook and Strategies - The domestic economy is expected to gradually recover due to active fiscal policies and sound monetary policies implemented by the central government [15]. - The property market is anticipated to stabilize and recover, with investment sentiment expected to rebound in the second half of 2024 [15]. - The management aims to accelerate the pre-sale and sale of properties, particularly in the Shandong Project, to generate adequate net cash inflows and control costs [164]. - Most of the net proceeds from the Shandong Project will be used to repay outstanding borrowings [165]. - The management is actively negotiating with large property developers to sell individual or whole commercial properties at appropriate prices, particularly in the Shanghai project [165]. - The management has proposed a capital re-organization and rights issue to raise approximately HK$84.2 million to repay bank loans and maintain adequate working capital [171]. - The Company is focused on de-stocking properties by selling residential and commercial properties in Shandong, Taizhou, and Shanghai to improve liquidity [171]. - The management is committed to improving the Group's liquidity and financial position through various measures, including refinancing and asset sales [162]. - The Company intends to keep shareholders informed about developments regarding the repayment of outstanding borrowings and refinancing efforts [172].
新明中国(02699) - 2024 - 中期财报