SHUI ON LAND(HK:00272)2025-03-28 08:32Financial Performance - In 2024, the company recorded a profit of RMB 810 million, with a significant year-on-year decline of 42% due to a decrease in residential property completions and confirmed property sales[4]. - The company's revenue decreased by 16% to RMB 8.173 billion, with recognized property sales down 26% to RMB 4.356 billion[5]. - The annual profit for 2024 was RMB 810 million, down 42.5% from RMB 1.397 billion in 2023[54]. - The profit attributable to shareholders for 2024 was RMB 180 million, a decrease of 77.8% compared to RMB 810 million in 2023[55]. - The core profit for 2024 was RMB 4.5 billion, down 52% from RMB 9.31 billion in 2023[56]. - The total revenue for 2024 was RMB 8,173 million, down 16.1% from RMB 9,752 million in 2023[79]. - The company reported a pre-tax profit of RMB 3,147 million for 2024, compared to RMB 2,699 million in 2023, representing an increase of 16.6%[83]. - The company recorded a net loss of RMB 279 million in other income and losses for 2024, compared to a net loss of RMB 243 million in 2023[50]. Property Sales and Development - Contracted property sales reached RMB 15.055 billion, marking a 32% increase year-on-year, while subscription sales surged by 117% to RMB 795 million[5]. - In 2024, the company recorded confirmed property sales of RMB 4.356 billion, with total confirmed property sales (including joint ventures) amounting to RMB 7.962 billion[7]. - The company achieved a contract sales amount of RMB 15.055 billion in 2024, representing a 32% increase compared to 2023, with residential properties accounting for 97% of the sales[11]. - The residential property sales for the Shanghai Taipingqiao (Plot 122) reached RMB 11,979 million with an average selling price of RMB 210,200 per square meter, while the total area sold was 57,000 square meters[13]. - The company has approximately 176,300 square meters of residential properties available for sale and pre-sale in 2025 and beyond, with a total estimated sales value of RMB 101,100 million[15]. - The estimated total sales value of the residential development projects available for sale as of December 31, 2024, is RMB 51.2 billion, with a total building area of 920,100 square meters[16]. - The company sold 108 units in the first batch of the Cuihu Binjiang project, totaling a sales amount of RMB 1.298 billion, with a target delivery date in the second half of 2025[18]. Rental and Income Performance - Total rental and related income amounted to RMB 3.547 billion, representing a 9% increase compared to the previous year, driven by contributions from newly opened projects[5]. - Rental and related income for 2024 increased by 9% year-on-year to RMB 3.547 billion, with 77% of this income derived from properties in Shanghai[7]. - The rental income from properties in Shanghai accounted for 77% of the total rental and related income in 2024[29]. - The average occupancy rate for the retail property portfolio remained stable at 94%, with sales and foot traffic increasing by 8% and 12% respectively in 2024[28]. - The office property portfolio's overall occupancy rate improved from 66% in 2023 to 69% in 2024, despite challenges in the market[28]. - The rental income from the newly opened Panlong Tiandi contributed significantly to the overall growth in rental income[28]. Debt and Financial Management - The company maintained a stable net debt-to-equity ratio of 52% as of December 31, 2024, with total cash and bank deposits amounting to RMB 7.734 billion[5]. - The company has repaid a total of RMB 45.2 billion in offshore debt since 2021, reflecting its commitment to prudent capital management[4]. - The group repaid a total of RMB 10.87 billion in debt during 2024, with an additional RMB 5.6 billion repaid by March 27, 2025, representing 68% of the debt due in 2025[65]. - The total financial expenses amounted to RMB 2.027 billion, a decrease of 6.4% from RMB 2.167 billion in 2023, with interest expenses down 12% to RMB 2.058 billion[52]. - The net debt as of December 31, 2024, was RMB 22.193 billion, a decrease from RMB 23.016 billion in 2023, with a stable net asset leverage ratio of 52%[61]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.036 per share for 2024, down from HKD 0.058 per share in 2023, resulting in an annual dividend of HKD 0.036 per share[4]. - The proposed final dividend for 2024 is HKD 0.036 per share, down from HKD 0.058 per share in 2023[57]. - The final dividend proposed for the year ending December 31, 2024, is HKD 0.036 per share, totaling approximately RMB 268 million, down from RMB 423 million in 2023[108]. Market and Economic Conditions - The real estate investment market saw a 10.6% decline in investment in 2024, marking three consecutive years of contraction[101]. - The company anticipates challenges in the commercial office market due to increased supply and competition, while seeking new tenants from emerging productivity sectors[102]. - In 2024, Shanghai's GDP recorded a growth of 5%, becoming the first city in China with an economic total exceeding RMB 5 trillion[104]. - In 2024, Chongqing's GDP grew by 5.7%, reaching RMB 3.2 trillion, surpassing Guangzhou to become China's fourth-largest city[105]. - In 2024, Wuhan's GDP growth was 5%, with total social retail sales reaching RMB 800 billion, an increase of 5.3%[106]. Corporate Governance and Management - The company has adopted the Corporate Governance Code and has complied with all applicable provisions, with some exceptions noted[110]. - The company expressed gratitude to the board members, management team, and employees for their efforts over the past year[116]. - The company emphasized the importance of equal opportunity principles in its compensation policy, which is based on employee performance and qualifications[114]. - The company is committed to ongoing reviews of its corporate governance practices to align with the latest developments[110]. Employee and Operational Insights - As of December 31, 2024, the total number of employees at the company was 2,851, a decrease from 3,054 employees as of December 31, 2023[113]. - The company provided a range of employee benefits including retirement plans, long-term incentive plans, and medical insurance[113].