Financial Performance - For the year ended December 31, 2024, the total property sales (including joint ventures) decreased to RMB 12.462 billion, down from RMB 27.650 billion in 2023, representing a decline of approximately 55.1%[10]. - The group reported a total revenue of HKD 5.537 billion for 2024, a significant drop from HKD 13.075 billion in 2023, reflecting a decrease of about 57.6%[10]. - The net loss attributable to shareholders for 2024 was HKD 4.122 billion, compared to a loss of HKD 3.962 billion in 2023, indicating a worsening financial position[10]. - The total assets of the group decreased to HKD 57.513 billion in 2024 from HKD 73.146 billion in 2023, a reduction of approximately 21.3%[10]. - The group’s equity attributable to shareholders decreased significantly by HKD 4.881 billion to HKD 10.815 billion in 2024, a decline of about 31%[30]. - The group’s annual post-tax loss for 2024 was HKD 3.308 billion, with a loss attributable to shareholders of HKD 4.122 billion[51]. - The group confirmed a loss of HKD 2.050 billion in its investment and asset management business, including significant impairment provisions of approximately HKD 1.471 billion[33]. - The group’s property division reported a loss of HKD 2.985 billion due to declining sales volume and prices in the real estate market[56]. - The group reported a net loss of HKD 3.308 billion for the year, with a loss attributable to shareholders of HKD 4.122 billion[96]. Debt and Liquidity Management - The net debt-to-equity ratio improved to 55% in 2024 from 63% in 2023, indicating a reduction in leverage[10]. - The company successfully reduced its loans from HKD 22.618 billion at the end of 2023 to HKD 16.227 billion by the end of 2024, yet still faces significant debt burdens[37]. - The total bank and other loans of the group is HKD 16.227 billion, with debt reduction being a top priority for the company[46]. - The group anticipates ongoing debt and liquidity pressures due to a slower-than-expected market recovery[59]. - The group plans to stop distributing payments on perpetual securities starting November 2024 to conserve cash for operational expenses and debt servicing[34]. - The total amount of bank and other loans decreased due to early repayment of offshore loans and a continued downturn in the real estate financing market[163]. - Total borrowings decreased from HKD 22,618 million in 2023 to HKD 16,227 million in 2024, a reduction of approximately 28.5%[164]. - Cash flow from operating activities, excluding land lease payments, decreased to HKD 2,048 million in 2024 from HKD 5,521 million in 2023, a decline of 62.9%[169]. Real Estate Market Outlook - In 2024, the total sales volume of the real estate market in mainland China is expected to decline to approximately RMB 9.7 trillion, down from RMB 11.3 trillion in 2023, marking a 50% drop over the past four years[36]. - The company remains cautious about the short-term outlook for the Hong Kong real estate market, awaiting economic recovery before considering new land auctions[42]. - The company anticipates that the real estate industry will continue to face significant challenges over the next two years, with many developers struggling under heavy debt burdens[39]. - The group expects the real estate market to continue bottoming out in 2025, with a cautious investment approach due to macroeconomic uncertainties[61]. - The group anticipates that the real estate market in mainland China will continue to face challenges in 2025, with a cautious investment strategy moving forward[103]. Project Development and Sales - In Hong Kong, the company sold 752 out of 800 units by the end of 2024, with total sales value of HKD 22.87 billion[42]. - The company has several ongoing projects in the Yangtze River Delta region, with a total development area of 30,000 to 120,000 square meters for residential properties, and completion dates ranging from 2025 to 2029[77][78][80]. - The company is focusing on expanding its residential and commercial property portfolio in key regions, including the Bohai Bay and Greater Bay Area, with significant land areas allocated for future developments[80][82]. - The company aims to complete multiple projects by 2026, indicating a strategic push towards enhancing its market presence in the residential sector[80][82]. - The company has completed several projects in the Greater Bay Area, including "路勁‧星棠" with a development area of 32,000 square meters and a 70% ownership stake[82]. - The company has a diverse portfolio with projects located in Jiangsu, Zhejiang, Beijing, Tianjin, Hebei, and Guangdong, showcasing its extensive market reach[77][80]. Toll Revenue and Infrastructure - Toll revenue from Indonesian highway projects increased by 6% to HKD 1.765 billion in 2024, contributing positively to the group's income[35]. - The group anticipates an increase in toll revenue and dividends from Indonesian highway projects due to upcoming toll rate adjustments in the second half of 2025[35]. - The group confirmed a post-tax net gain of HKD 1.49 billion from the sale of its entire interest in mainland highway operations[57]. - The Indonesian highway project achieved a total traffic volume of 31.77 million vehicles in 2024, with an average daily mixed traffic of approximately 86,800 vehicles, down 3% from the previous year[134]. - The group distributed dividends totaling approximately HKD 97.6 million from the Indonesian highway project in 2024[131]. Management and Governance - The company has a diverse board with members having extensive experience in various sectors, including real estate, finance, and engineering[184]. - The company is committed to maintaining high standards of corporate governance, as evidenced by the appointment of independent non-executive directors[187]. - The group has over 50 years of experience in finance and accounting, with key management personnel holding advanced degrees in business and engineering[190][192]. - The company is focused on sustainable development and has established a green finance department at the Hong Kong Stock Exchange[185]. - The company aims to leverage its extensive experience in the real estate sector to drive future growth and market expansion[200].
路劲(01098) - 2024 - 年度财报