Financial Performance - The company's operating revenue for the year was approximately RMB 1.54 billion, a decrease of about 8% compared to RMB 1.68 billion in 2023 [25]. - Gross profit for the year was approximately RMB 1.28 billion, down about 7% from RMB 1.38 billion in 2023 [26]. - Total revenue for 2024 was RMB 1,540,432 thousand, a decrease of 8.25% from RMB 1,678,546 thousand in 2023 [170]. - Gross profit for 2024 was RMB 1,280,395 thousand, down from RMB 1,378,692 thousand in 2023, reflecting a decline of 7.13% [170]. - Operating profit decreased to RMB 779,141 thousand in 2024 from RMB 812,761 thousand in 2023, a reduction of 4.12% [170]. - The company reported a net loss of RMB 117,684 thousand for 2024, compared to a net loss of RMB 180,072 thousand in 2023, indicating an improvement of 34.67% [170]. - Total comprehensive loss for the year amounted to RMB 126,952,000, down from RMB 173,497,000 in the previous year, reflecting a 26.8% improvement [172]. Assets and Liabilities - As of December 31, 2024, the total non-current assets amounted to RMB 65,148,362, a slight decrease from RMB 65,536,289 in 2023, representing a decline of approximately 0.6% [45]. - Current assets decreased to RMB 2,983,114 in 2024 from RMB 3,081,267 in 2023, reflecting a reduction of about 3.2% [45]. - Current liabilities increased to RMB 10,937,604 in 2024, up from RMB 10,451,535 in 2023, indicating an increase of approximately 4.6% [45]. - Total liabilities decreased to RMB 31,063,404,000 in 2024 from RMB 31,422,532,000 in 2023, a reduction of 1.1% [174]. - The group's current liabilities exceeded current assets by RMB 7,954 million, indicating significant uncertainty regarding the group's ability to continue as a going concern [133]. - The group's bank and other borrowings total RMB 15,556 million as of December 31, 2024, contributing to the concerns about financial stability [133]. Shareholder Information - The board of directors decided not to declare a final dividend for the year, consistent with the previous year [38]. - The company has issued a total of 5,199,524,031 shares as of December 31, 2024, unchanged from the previous year [47]. - Pan Shiyi holds 3,324,100,000 shares, representing 63.93% of the company's equity [71]. - Pan Zhangxin also holds 3,324,100,000 shares, equivalent to 63.93% of the company's equity [71]. - Boyce Limited and Capevale BVI each hold 1,662,050,000 shares, accounting for 31.97% of the company's equity [77]. Management and Governance - The board consists of seven directors, including four executive directors and three independent non-executive directors as of December 31, 2024 [103]. - The company has appointed two female directors out of a total of seven on the board as of December 31, 2024, and is committed to improving gender diversity when suitable candidates are identified [126]. - The company emphasizes the importance of board member diversity as a key element in achieving business and strategic goals [126]. - The company has implemented policies to avoid potential conflicts of interest, requiring directors to abstain from voting on transactions where they have a significant interest [108]. - The company has arranged appropriate liability insurance for directors and senior management against potential legal actions [85]. Risk Management and Compliance - The group has established compliance procedures to ensure adherence to applicable laws and regulations in China [96]. - The audit committee is responsible for reviewing the financial statements and the effectiveness of the company's risk management and internal control systems [115]. - The internal audit department adopts a risk-based audit approach, reporting regularly to the audit committee on the effectiveness of internal controls [138]. - The group has implemented multiple policies to assess and enhance the effectiveness of its risk management and internal control systems, with annual verification by management [140]. - The audit committee has established a reporting policy allowing employees, customers, and suppliers to report any actual or suspected misconduct, ensuring effective investigation and resolution [142]. Training and Development - SOHO China organized over 2,200 training sessions in 2024, with a total participation of 35,000 individuals, emphasizing the importance of learning and development [10]. Property and Rental Information - The total gross floor area of Wangjing SOHO is approximately 522,272 square meters, with a rentable area of about 133,766 square meters [12]. - Guanghua Road SOHO II has a total gross floor area of approximately 117,179 square meters, with a rentable area of about 94,279 square meters [13]. - The Qianmen Street project aims to develop a tourist attraction with a rentable area of approximately 51,889 square meters [15]. - Lize SOHO has a total gross floor area of approximately 156,485 square meters, with a total rentable area of about 135,637 square meters [16]. - The total gross floor area of SOHO Fuxing Plaza is approximately 124,068 square meters, with a rentable area of about 88,234 square meters [17]. - The total rentable area of Waibaidu SOHO is approximately 72,006 square meters, including 50,347 square meters of office space [18]. - SOHO Tianshan Plaza has a total gross floor area of approximately 155,827 square meters, with a total rentable area of about 97,751 square meters [21]. Financial Outlook and Concerns - The group is actively communicating with local tax authorities to establish feasible solutions for unpaid land appreciation tax and related penalties [190]. - The group plans to implement measures to control administrative costs and save capital expenditures to enhance operating cash flow [195]. - The board believes that the group will have sufficient operating funds to meet its financial obligations for at least the next 12 months [193].
SOHO中国(00410) - 2024 - 年度财报