恒达集团控股(03616) - 2025 - 中期业绩

Financial Statements Unaudited Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2024, the company's revenue slightly decreased, gross profit significantly declined, and it reported a net loss of RMB 36.1 million, reversing from a profit in the prior year | Indicator | H1 2024 (RMB thousands) | H1 2023 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,467,599 | 1,488,151 | -1.4% | | Gross Profit | 139,051 | 259,227 | -46.3% | | Operating Profit | 13,216 | 131,773 | -89.9% | | (Loss)/Profit for the Period | (36,099) | 69,176 | Reversed to Loss | | (Loss)/Profit Attributable to Owners of the Company | (50,718) | 60,763 | Reversed to Loss | | (Loss)/Earnings Per Share (RMB cents) | (4.23) | 5.06 | Reversed to Loss | Unaudited Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2024, the company reported total comprehensive expenses of RMB 36.1 million, aligning with the period's net loss, a reversal from comprehensive income in the prior year | Item | H1 2024 (RMB thousands) | H1 2023 (RMB thousands) | | :--- | :--- | :--- | | (Loss)/Profit and Total Comprehensive (Expense)/Income for the Period | (36,099) | 69,176 | | Total Comprehensive (Expense)/Income Attributable to Owners of the Company | (50,718) | 60,763 | Unaudited Condensed Consolidated Statement of Financial Position As of June 30, 2024, total assets and liabilities decreased, total equity slightly declined, and cash and cash equivalents reduced while bank borrowings increased | Balance Sheet Item | June 30, 2024 (RMB thousands) | Dec 31, 2023 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Assets | | | | | Total Assets | 8,333,641 | 9,085,205 | -8.3% | | Of which: Cash and Cash Equivalents | 238,467 | 274,808 | -13.2% | | Of which: Properties Held for Sale or Under Development | 6,956,459 | 7,521,685 | -7.5% | | Liabilities | | | | | Total Liabilities | 6,511,699 | 7,227,164 | -9.9% | | Of which: Bank Borrowings (Current + Non-current) | 670,910 | 415,400 | +61.5% | | Of which: Contract Liabilities | 3,382,407 | 3,956,814 | -14.5% | | Equity | | | | | Total Equity | 1,821,942 | 1,858,041 | -1.9% | Notes to the Financial Statements Basis of Preparation and Going Concern The financial statements' basis of preparation has significant uncertainty due to the company's reported loss, low cash, substantial short-term debt, and potential guarantee-related outflows, raising material doubts about its going concern ability - The Group incurred a loss of approximately RMB 36.1 million during the reporting period, with cash and cash equivalents of only approximately RMB 238.5 million[14] - The Group faces approximately RMB 6.13 billion in current liabilities, including RMB 749 million in bank and other borrowings due within one year, approximately RMB 948 million in capital commitments, and potential cash outflows of approximately RMB 6.74 billion from financial guarantees[14] - Management's mitigating actions include actively adjusting sales, negotiating payment terms with suppliers, communicating with banks for financing, and securing funding support commitments from related parties and non-controlling shareholders[14] Revenue Analysis Total revenue for H1 2024 slightly decreased to RMB 1.468 billion, primarily driven by property sales which declined, while service income saw substantial growth from a small base, with all revenue sourced from China | Revenue Source | H1 2024 (RMB thousands) | H1 2023 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Sales of Properties | 1,457,879 | 1,481,189 | -1.6% | | Service Income | 4,951 | 1,365 | +262.7% | | Rental Income | 4,769 | 5,597 | -14.8% | | Total | 1,467,599 | 1,488,151 | -1.4% | - The vast majority of revenue (RMB 1.458 billion) is recognized at a point in time, primarily corresponding to the delivery and recognition of property sales[20] Key Asset and Liability Items As of June 30, 2024, the net book value of properties held for sale or under development decreased, alongside reductions in trade payables and contract liabilities, reflecting slower market activity and project delivery | Item | June 30, 2024 (RMB thousands) | Dec 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Properties Under Development for Sale | 4,796,537 | 5,295,466 | | Properties Held for Sale | 2,430,856 | 2,439,482 | | Less: Provision | (270,934) | (213,263) | | Net Book Value | 6,956,459 | 7,521,685 | - Total trade payables amounted to RMB 1.32 billion, with approximately 70% (RMB 925 million) due within one year[31] - Contract liabilities (primarily pre-received property payments) decreased from RMB 3.96 billion at the beginning of the year to RMB 3.38 billion, to be recognized as revenue upon future transfer of property control[34] - Capital commitments for properties under development for sale amounted to RMB 948 million, a significant reduction from RMB 1.334 billion at the beginning of the year[35] Management Discussion and Analysis Industry Review and Business Overview In H1 2024, China's and Henan's real estate markets faced continued pressure with declining indicators, prompting the Group to focus on property delivery and inventory reduction, successfully completing 259,000 square meters of deliveries - In H1 2024, national real estate development investment decreased by 10.1% year-on-year, and sales of new commercial properties declined by 25.0%; Henan Province's real estate development investment decreased by 9.1% year-on-year, with new commercial property sales down 22.6%[36] - The Group's core tasks are "ensuring property delivery" and "reducing inventory," having completed planned deliveries of approximately 259,000 square meters in the first half[38] - As of June 30, 2024, the Group's land reserve had a gross floor area of approximately 3.2 million square meters[40] Contracted Sales Performance In H1 2024, the Group's total contracted sales significantly decreased by 46.8% to RMB 839.4 million, with residential sales dropping sharply and average selling prices declining due to market conditions | Contracted Sales | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Sales Value (RMB millions) | | | | | Residential Units | 673.4 | 1,313.2 | -48.7% | | Commercial Units | 138.4 | 214.4 | -35.4% | | Total | 839.4 | 1,578.4 | -46.8% | | Average Selling Price | | | | | Saleable GFA (RMB/sqm) | 5,671 | 5,968 | -5.0% | | Parking Spaces (RMB/unit) | 38,114 | 47,442 | -19.7% | Financial Performance Review In H1 2024, the company faced severe financial challenges, reporting a net loss of RMB 36.1 million due to a significant 46.3% decline in gross profit and a reduced gross profit margin, despite a slight revenue decrease Overall Performance In H1 2024, the Group's revenue slightly decreased, gross profit sharply declined by 46.3% with a reduced margin, resulting in a net loss of RMB 36.1 million | Financial Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue (RMB millions) | 1,467.6 | 1,488.2 | -1.4% | | Gross Profit (RMB millions) | 139.1 | 259.2 | -46.3% | | Gross Profit Margin | 9.5% | 17.4% | -7.9 percentage points | | Net (Loss)/Profit (RMB millions) | (36.1) | 69.2 | Reversed to Loss | Revenue and Gross Profit Analysis Property sales, the core revenue source, declined, and gross profit margins for both residential and commercial properties significantly deteriorated due to lower average selling prices and increased costs | Property Type | H1 2024 Gross Profit Margin | H1 2023 Gross Profit Margin | | :--- | :--- | :--- | | Residential | 8.5% | 18.4% | | Commercial | 7.5% | 16.1% | | Total Property Sales | 9.1% | 17.2% | - The primary reasons for the decline in gross profit margin were the decrease in average selling prices of delivered residential properties and increased costs for commercial properties[48] Expenses and Taxation Selling and marketing expenses decreased by 17.8% to RMB 58.1 million, administrative expenses remained stable, and income tax expense declined by 21.5% due to reduced gross profit - Selling and marketing expenses decreased by 17.8% year-on-year, primarily due to reduced advertising and promotional costs and sales agent commissions[51] - Administrative expenses slightly increased by 0.7% year-on-year to RMB 56.6 million[52] - Income tax expense decreased by 21.5% year-on-year to RMB 49.2 million, primarily due to reduced gross profit[55] Liquidity and Capital Resources As of June 30, 2024, the Group's liquidity was tight, with reduced cash, increased borrowings, and significantly higher gearing and debt-to-equity ratios, leading the Board to conserve cash by not declaring an interim dividend | Indicator | June 30, 2024 (RMB millions) | Dec 31, 2023 (RMB millions) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 238.5 | 274.8 | | Total Borrowings | 1,092.0 | 948.6 | | - Due within one year | 748.5 | 678.6 | | Key Financial Ratios | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Current Ratio | 1.3 | 1.3 | | Gearing Ratio | 59.9% | 51.1% | | Debt-to-Equity Ratio | 46.8% | 36.3% | - The increase in the gearing ratio was primarily due to new borrowings obtained during the period[65] - The Board does not recommend the payment of an interim dividend[66] Principal Risk Factors The Group faces multiple risks, including high geographical concentration in Henan, intense market competition, interest rate fluctuations, macroeconomic and policy uncertainties, and potential impacts from force majeure events - Business is highly dependent on the property market performance in Henan Province (especially Xuchang City), making it susceptible to local economic conditions, policies, and market supply-demand dynamics[63] - The real estate market is highly competitive, with competition from large national and local developers in land acquisition, funding, branding, and other aspects[63] - The Group faces interest rate fluctuation risk, as floating-rate borrowings expose it to cash flow interest rate risk, with no hedging activities undertaken[64] Outlook Management anticipates continued real estate market pressure in H2, but expects gradual stabilization with policy support, focusing on strict fund management, marketing innovation, and integrating environmental considerations to ensure sustainable operations - New home sales are expected to see a narrower year-on-year decline in the second half, but the market remains in a downturn, requiring time for confidence to recover[71] - The Group's top priority for the second half is strict monitoring of fund allocation management to ensure efficient fund utilization and stable cash flow[71] - The Group will intensify marketing strategy innovation and integrate environmental protection and carbon neutrality concepts into design and construction to enhance competitiveness and fulfill social responsibility[71][72] Other Information Events After the Reporting Period Post-reporting period, the company's shares were suspended from trading on April 2, 2024, pending fulfillment of resumption guidance including an independent investigation, and a new auditor was appointed following the resignation of the previous one - The company's shares have been suspended from trading on the Stock Exchange since April 2, 2024, and will remain suspended[73] - The Stock Exchange has issued resumption guidance, requiring the company to conduct an independent investigation into advance payment issues, demonstrate management integrity, conduct an internal control review, and publish all outstanding financial results, among other requirements[75][80] - Former auditor PricewaterhouseCoopers resigned on August 9, 2024, and Evergreen (Hong Kong) CPA Limited was appointed as the new auditor on September 25, 2024[74][78] Corporate Governance The company emphasizes corporate transparency and accountability, with the Board confirming compliance with corporate governance codes and the interim financial report reviewed by the Audit Committee but not audited by the company's auditor - The Board believes the company has complied with all applicable code provisions contained in Appendix C1 of the Listing Rules on Corporate Governance Code[81] - The interim financial statements have been reviewed by the Audit Committee but have not been audited or reviewed by the company's auditor[84][85]