Financial Performance - The company's revenue for the year ending December 31, 2024, was HKD 37,834 million, an increase of 10.5% from HKD 34,292 million in 2023[2]. - Profit attributable to equity holders was HKD 120 million, a significant decrease of 95.9% compared to HKD 2,922 million in 2023[2]. - Core profit increased to HKD 3,123 million, up 35% from HKD 2,314 million in 2023[2]. - The group's revenue for the year ended December 31, 2024, was HKD 37,834,224, an increase of 10.5% compared to HKD 34,291,809 in 2023[15]. - The annual profit attributable to the company was HKD 1,103,377, a significant decrease of 67.6% from HKD 3,404,220 in the previous year[15]. - Basic and diluted earnings per share dropped to HKD 0.03 from HKD 0.77, indicating a challenging year for the company[15]. - The company's net profit for the year ended December 31, 2024, was HKD 1,103,377, down from HKD 3,404,220 in 2023, reflecting a decrease of around 68%[41][42]. - The group's pre-tax profit for the year ended December 31, 2024, was HKD 2,805,888, compared to HKD 6,294,102 in 2023, representing a decline of about 55%[41][42]. - The financial costs for the year ended December 31, 2024, were HKD (1,250,486), an increase from HKD (933,794) in 2023, indicating a rise of approximately 34%[41][42]. - The investment properties' fair value loss for the year ended December 31, 2024, was HKD (397,820), compared to a gain of HKD 2,495,968 in 2023[41][42]. Sales and Contracts - The total sales and pre-sale contracts for properties reached RMB 16,629 million, a decline of 48.9% from RMB 32,583 million in 2023[6]. - Revenue from property development for 2024 reached HKD 30,134,040, an increase of 13.8% compared to HKD 26,499,537 in 2023[44]. - The total contracted sales in 2024 amounted to approximately RMB 16,629 million, a decrease of 49% from RMB 32,583 million in 2023[66]. Assets and Liabilities - Total assets decreased to HKD 256,882,175 from HKD 288,694,135, a decline of 11.0%[19]. - The company's total liabilities also decreased to HKD 157,966,693 from HKD 187,709,286, a reduction of 15.9%[19]. - The group's total assets as of December 31, 2024, were HKD 256,882,175, down from HKD 288,694,135 in 2023, indicating a decrease of approximately 11%[43]. - The group's total liabilities increased to HKD 256,882,175 as of December 31, 2024, from HKD 288,694,135 in 2023, indicating a decrease of approximately 11%[43]. - The group had a net borrowing amount of HKD 68,109 million after accounting for cash and bank deposits[82]. Cash Flow and Liquidity - Cash and bank balances decreased to HKD 11,398,148 from HKD 15,368,332, a decline of 25.7%[18]. - The group has a total of HKD 25,037 million in short-term bank and other borrowings, with cash and cash equivalents of HKD 8,449 million[63]. - The current ratio improved to 1.61 as of December 31, 2024, up from 1.43 a year earlier, indicating better short-term financial health[75]. - The debt-to-asset ratio decreased to 62% from 65% year-over-year, reflecting improved leverage[75]. Future Outlook and Strategy - The company anticipates a challenging economic environment in 2025, with continued pressure on the real estate market and consumer confidence[11]. - The central government is expected to implement more proactive macro policies to stabilize economic growth and support the real estate market in 2025[11]. - The company plans to enhance its brand value and maintain a prudent development strategy to adapt to industry changes[12]. - The company aims to create long-term value for shareholders, customers, and society through high-quality development and diversified industry layout[12]. - The company plans to focus on residential property development and commercial real estate investment in mainland China moving forward[20]. - The company plans to focus on market expansion and new product development to improve future performance[41]. Corporate Governance and Compliance - The board approved the financial statements for publication on March 28, 2025[22]. - The audit committee, composed of three independent non-executive directors, reviewed the group's accounting principles and discussed risk management and internal controls[93]. - The independent auditor agreed with the financial figures presented in the preliminary announcement for the year ending December 31, 2024[94]. - A remuneration committee has been established, consisting of three independent non-executive directors, in accordance with corporate governance codes[95]. - The company confirmed that its public float met the required levels during the review year[91]. Debt and Restructuring - The company has defaulted on borrowings totaling HKD 941,661,000, leading to cross-defaults triggering a total of HKD 9,269,709,000 in loans from banks and financial institutions[24]. - The company is actively negotiating debt restructuring plans with lenders related to the defaulted borrowings[25]. - The company is in discussions with several financial institutions regarding the extension of certain borrowings[25]. - There is significant uncertainty regarding the company's ability to implement the related plans and measures successfully[26]. - The company's ability to continue as a going concern depends on the successful completion of the debt restructuring and refinancing of existing bank borrowings[26]. Segment Performance - The company has five reportable operating segments based on products and services, including property development and commercial real estate investment[37]. - The property development segment engages in property development and sales, while the commercial real estate investment segment focuses on properties with rental income potential[40]. - The property development segment remains the core business, accounting for 80% of the group's operations, with revenue contributions from key regions: 14% from South China, 12% from East China, and 74% from North China[74]. Other Financial Metrics - The actual tax rate for 2024 was 61%, an increase of 15 percentage points compared to the previous year[72]. - Employee costs for the year reached HKD 1,628 million, down from HKD 2,022 million in 2023, with a total workforce of 8,506 employees[88]. - The group provided guarantees for mortgage loans to property buyers amounting to HKD 13,841 million as of December 31, 2024, down from HKD 18,300 million a year earlier[84]. - The company did not recommend any dividend payments for the years ending in 2024 and 2023[56]. - The group did not recommend a final dividend for the year ended December 31, 2024, to retain cash for future business development[64].
合生创展集团(00754) - 2024 - 年度业绩