Real Estate Market Overview - For the year ended December 31, 2024, total investment in China's real estate sector was approximately RMB10.0 trillion, a year-on-year decrease of approximately 10.6%[15]. - Investment in residential properties amounted to approximately RMB7.6 trillion, representing a year-on-year decrease of 10.5%[15]. - The sales area of commercial properties was approximately 973.85 million square meters, down approximately 12.9% year-on-year, while the sales area of residential properties decreased by approximately 14.1%[15]. - Sales revenue of commercial properties was approximately RMB97 trillion, down approximately 17.1% from the previous year, with residential property sales decreasing by approximately 17.6%[15]. - The Central Government has implemented policies to support the real estate market, including lowering down payment ratios and reducing restrictions on housing purchases[16]. - Looking ahead to 2025, the company expects a gradual stabilization and recovery of the property market due to government measures supporting real estate enterprises[28]. - The macroeconomic outlook for 2025 suggests a gradual stabilization and recovery of the property market in China[64]. - The residential property market is expected to stabilize and gradually recover in 2025, with ongoing pre-sale and sale of residential properties in the Shandong Project[189]. Company Financial Performance - The total revenue of Xinming China for the year amounted to approximately RMB 86.8 million, representing a decrease of approximately RMB 333.5 million or 79.4% compared to the previous year[22]. - The loss attributable to shareholders increased to approximately RMB 542.5 million, up by approximately RMB 16.4 million or 3.1% from a loss of RMB 526.1 million in the previous year[22]. - Property sales recorded approximately RMB 85.4 million, a decrease of approximately RMB 333.5 million or 79.6% compared to RMB 418.9 million in 2023[27]. - The total gross floor area (GFA) of property sales delivered was approximately 7,451.3 sq.m., representing a decrease of approximately 88.3% compared to 63,413.5 sq.m. in 2023[27]. - The company reported a loss per share of approximately RMB 0.289, compared to RMB 0.281 in the previous year[23]. - Total revenue for the year was approximately RMB 86.8 million, a decrease of approximately RMB 333.5 million or approximately 79.2% compared to RMB 418.9 million in the previous year[76]. - Gross profit amounted to approximately RMB20.7 million, a decrease of approximately RMB32.8 million or 61.3% compared to RMB53.4 million in the same period last year[73]. - Operating loss increased by approximately RMB 34.1 million or approximately 6.0% to RMB 598.3 million, mainly due to decreased revenue and increased liquidated damages on borrowings[89]. Asset and Liability Management - As of December 31, 2024, total assets amounted to approximately RMB 2,144.7 million, while total liabilities were approximately RMB 5,694.0 million, resulting in total negative equity of approximately RMB 3,549.3 million[23]. - Total liabilities increased to approximately RMB5,694.0 million as of December 31, 2024, compared to approximately RMB5,175.2 million in 2023[43]. - The Group's total negative equity was approximately RMB3,549.3 million as of December 31, 2024, up from approximately RMB2,959.5 million in 2023[43]. - The current ratio of the Group decreased to 0.18:1 as of December 31, 2024, down from 0.22:1 as of December 31, 2023[110]. - The gearing ratio of the Group was (72.7)% as of December 31, 2024, compared to (110)% as of December 31, 2023[111]. - The net current liabilities of the Group were approximately RMB4,508.0 million, representing an increase of approximately RMB587.8 million or approximately 15.0% compared to RMB3,920.2 million as of December 31, 2023[109]. Strategic Initiatives and Future Plans - The company is focusing on the residential property development of the Shandong Project, with the fourth phase's main structure completed and presale expected to commence in March 2026[20]. - The company aims to accelerate the de-stocking of completed properties while exploring asset revitalization options, including changing property use and selling properties[30]. - The Management is negotiating with existing lenders to extend repayment schedules for outstanding borrowings to avoid immediate repayment demands[150]. - The Management is exploring financing arrangements with self-financed contractors to advance construction costs, with settlements based on sales proceeds[158]. - The Management is committed to implementing attractive sales promotion plans to ensure ample cash inflows due to weak market conditions[170]. - The Company has initiated proposals for capital restructuring and a rights issue to raise funds of up to HKD84.2 million for repaying borrowings and maintaining working capital[170]. - The Group plans to renovate commercial properties in Shanghai and Taizhou to enhance their value before sale, with renovation costs expected to be funded through a profit-sharing scheme or advanced receipts[179]. Audit and Compliance Issues - The auditors expressed a disclaimer of opinion on the consolidated financial statements due to multiple uncertainties affecting the Group's ability to continue as a going concern[136][143]. - The Group's ability to continue as a going concern is uncertain, dependent on generating sufficient financial and operating cash flows[146]. - The Audit Committee has been in close communication with Management regarding measures to improve cash flow, including renewing outstanding borrowings and accelerating property sales[185]. - The ongoing actions are intended to alleviate the Group's liquidity pressure and remove the Audit Modification[190]. - The Audit Committee believes the Group will have sufficient financial resources to continue as a going concern for the next 12 months[188].
新明中国(02699) - 2024 - 年度财报