旭辉控股集团(00884) - 2025 - 中期业绩

Performance Summary The Group demonstrated resilience in core operations amidst a challenging market environment in the first half of 2025 - Property delivery: Approximately 15 thousand units delivered, with over 285 thousand units cumulatively since 2022[2] - Investment properties: Rental and related service income stable at approximately RMB 786 million[2] - Property management: Property management and other service income grew to approximately RMB 3.375 billion[2] - Debt management: Total outstanding debt decreased by approximately RMB 4.4 billion year-on-year[2] - Cash flow: Net cash generated from operating activities remained positive[2] Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income In H1 2025, Group revenue decreased by 39.2% to RMB 12.28 billion, with gross profit sharply down 63.7%, leading to a net loss of RMB 6.24 billion and basic loss per share of RMB 0.61 Condensed Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 12,281,324 | 20,206,011 | -39.2% | | Gross Profit | 983,152 | 2,708,108 | -63.7% | | Loss Before Tax | (6,119,764) | (3,453,242) | +77.2% | | Loss for the Period | (6,239,277) | (4,440,408) | +40.5% | | Loss Attributable to Equity Holders of the Company | (6,357,763) | (4,939,432) | +28.7% | | Basic Loss Per Share (RMB) | (0.61) | (0.47) | +29.8% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets declined to RMB 241.32 billion, with total liabilities at RMB 196.91 billion, resulting in a net current liability of RMB 8.83 billion, indicating increased short-term solvency pressure Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Period Change | | :--- | :--- | :--- | :--- | | Total Assets | 241,319,850 | 256,168,485 | -5.8% | | Non-current Assets | 78,453,990 | 78,912,643 | -0.6% | | Current Assets | 162,865,860 | 177,255,842 | -8.1% | | Total Liabilities | 196,914,157 | 204,249,584 | -3.6% | | Current Liabilities | 171,694,418 | 176,299,544 | -2.6% | | Non-current Liabilities | 25,219,739 | 27,950,040 | -9.8% | | Net Current Assets (Liabilities) | (8,828,558) | 956,298 | - | | Total Equity | 44,405,693 | 51,918,901 | -14.5% | Notes to the Financial Statements Basis of Preparation and Going Concern Risk Despite preparation on a going concern basis, significant uncertainties exist due to a RMB 6.36 billion loss and over RMB 57 billion in defaulted debts, with ongoing mitigation efforts uncertain - As of June 30, 2025, the Group faces severe financial challenges posing significant going concern uncertainty[10] - Operating performance: Net loss attributable to shareholders of approximately RMB 6.36 billion in H1[10] - Liquidity position: Net current liabilities reached RMB 8.83 billion[10] - Debt default: Unpaid principal and interest on bank borrowings, offshore senior notes, and convertible bonds totaled over RMB 57 billion, constituting default or cross-default[10] - To alleviate liquidity pressure, the Group has adopted several measures[11][13] - Debt restructuring: Scheme of arrangement for offshore debt restructuring approved by the court[11] - Loan extension: Actively negotiating with domestic financial institutions for renewal and extension of existing borrowings[11] - Cost control: Implementing strict cost-cutting measures, reducing non-core businesses and expenses[13] - Asset disposal: Seeking opportunities to dispose of non-core assets to enhance cash position[13] Segment Information The Group's property sales revenue declined 49.9% to RMB 8.12 billion, resulting in a RMB 2.06 billion segment loss, while property management revenue grew 5.2% to RMB 3.38 billion, and property investment revenue remained stable Segment Revenue and (Loss)/Profit (For the six months ended June 30) | Segment | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Segment Revenue | | | | | Property sales and other property related services | 8,119,887 | 16,208,285 | -49.9% | | Property investment | 786,050 | 788,703 | -0.3% | | Property management and other services | 3,375,387 | 3,209,023 | +5.2% | | Total | 12,281,324 | 20,206,011 | -39.2% | | Segment (Loss)/Profit | | | | | Property sales and other property related services | (2,057,775) | (747,984) | -175.1% | | Property investment | 466,199 | 462,689 | +0.8% | | Property management and other services | 591,220 | 669,279 | -11.7% | | Total | (1,000,356) | 383,984 | - | Analysis of Key Profit and Loss Items Total finance costs decreased by 15.6%, but expensed finance costs increased by 5.2% to RMB 1.94 billion due to a significant reduction in capitalized amounts, while income tax expense sharply declined by 87.9% Finance Cost Analysis (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total interest expense on borrowings | 2,340,408 | 2,772,086 | | Less: Amount capitalized | (403,563) | (930,771) | | Finance costs charged to profit or loss | 1,936,845 | 1,841,315 | - Total income tax expense for the period was RMB 119.5 million, a significant decrease of 87.9% from RMB 987.2 million in the prior year, primarily due to the expanded pre-tax loss[22] Analysis of Key Balance Sheet Items Net trade receivables increased to RMB 4.34 billion, with a rise in overdue amounts, while trade payables remained stable at RMB 26.49 billion, with a high proportion (45.6%) over one year old Trade Receivables Ageing Analysis (Net of loss allowance) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 60 days | 1,806,146 | 1,801,275 | | 61 to 180 days | 531,287 | 464,198 | | 181 to 365 days | 599,032 | 338,613 | | Over 1 year | 1,407,033 | 1,129,935 | | Total | 4,343,498 | 3,734,021 | Trade Payables Ageing Analysis | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 60 days | 11,395,928 | 10,927,385 | | 61 to 180 days | 1,428,366 | 1,020,088 | | 181 to 365 days | 1,599,048 | 2,194,751 | | Over 1 year | 12,066,948 | 12,624,045 | | Total | 26,490,290 | 26,766,269 | Summary of Independent Review Report Material Uncertainty Related to Going Concern The independent auditor's review report highlights significant uncertainties regarding the Group's ability to continue as a going concern, citing substantial losses, net current liabilities, and widespread debt defaults - The independent auditor's review report emphasizes "Material Uncertainty Related to Going Concern," noting that the Group's financial condition, including substantial losses, net current liabilities, and debt defaults, indicates significant uncertainty that may cast substantial doubt on its ability to continue as a going concern[37][38] Management Discussion and Analysis Market Review and Outlook Management observes a structural stabilization in the H1 2025 China property market, with sales decline narrowing but recovery challenges persisting, expecting continued differentiation in H2 - Management's core market assessment[39][41][42] - Current market: Policy stimulus effects are weakening, market recovery faces challenges, new home inventory pressure is high, property prices are still bottoming out, and market segmentation is evident[39] - H2 Outlook: The market will continue its structural stabilization, with higher-tier cities showing more resilient sales, second-hand home transactions outperforming new homes, and high-quality residential properties remaining popular[41] - Corporate strategy: Property developers will highly focus investments on core cities and core locations, accelerating the transition to asset-light models like project management and commercial operations[42] Business Review The Group's business performance diverged in H1 2025, with core property development sales halved, investment property income stable, and property management achieving robust 5.2% growth Property Development In H1 2025, contract sales plummeted 50.0% to RMB 10.16 billion, with an average selling price of RMB 10,274/sqm, primarily in central-western regions and second-tier cities Contract Sales Performance (For the six months ended June 30, 2025) | Indicator | Amount | Year-on-year Change | | :--- | :--- | :--- | | Contract Sales Value | RMB 10.16 billion | -50.0% | | Contract Sales Area | 0.9893 million square meters | -40.3% | | Average Contract Sales Price | RMB 10,274/square meter | -16.2% (estimated) | - Geographically, the central-western region contributed 37.6% of contract sales, with the Bohai Rim and Yangtze River Delta contributing 25.5% and 24.4% respectively[45] - By city tier, first and second-tier cities collectively accounted for 87.0% of sales[45] - Recognized property sales revenue for the period was RMB 7.86 billion, a 50.4% year-on-year decrease, with major delivery regions being the central-western and Yangtze River Delta[48] Property Investment Investment property rental and other service income remained stable at approximately RMB 786 million in H1 2025, a slight 0.3% decrease, with 33 properties totaling 2.282 million sqm held - Investment property rental and other service income was RMB 786 million, a 0.3% year-on-year decrease, with major income sources from core projects in Shanghai and Beijing[52] Property Management Property management and other service income achieved robust growth, increasing by 5.2% to approximately RMB 3.38 billion in H1 2025, providing a stable revenue stream - Property management and other service income increased by 5.2% year-on-year to RMB 3.375 billion, primarily due to an increase in the number of properties under management[53] Financial Review The Group's financial position further deteriorated in H1 2025, with significant declines in revenue and gross profit, expanded net loss due to impairments, and increased leverage and liquidity risks Revenue and Profit Analysis Total revenue decreased by 39.2% to RMB 12.28 billion, primarily due to reduced property sales, with gross margin falling to 8.0%, and significant impairment losses expanding the net loss to RMB 6.36 billion Breakdown of Recognized Revenue (For the six months ended June 30) | Revenue Category | 2025 (RMB thousand) | % of Total | 2024 (RMB thousand) | % of Total | Year-on-year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Property sales and other property related services | 8,119,887 | 66.1% | 16,208,285 | 80.2% | -49.9% | | Rental and other services | 786,050 | 6.4% | 788,703 | 3.9% | -0.3% | | Property management and other services | 3,375,387 | 27.5% | 3,209,023 | 15.9% | +5.2% | | Total | 12,281,324 | 100.0% | 20,206,011 | 100.0% | -39.2% | - Gross profit decreased by 63.7% year-on-year to RMB 983 million, with gross margin declining from 13.4% to 8.0%[58] - Net loss attributable to shareholders expanded to RMB 6.36 billion, compared to RMB 4.94 billion in the prior year[66] Balance Sheet and Liquidity Analysis Total debt decreased to RMB 84.2 billion, but cash was tight at RMB 10.16 billion (60% restricted), while net gearing ratio surged to 166.8% and current ratio dropped to 0.9x, indicating worsening liquidity and leverage - As of June 30, 2025, bank balances and cash were approximately RMB 10.16 billion, including RMB 1.73 billion in pledged deposits and RMB 4.30 billion in regulated account funds[72] - Total outstanding borrowings were approximately RMB 84.21 billion, a decrease from RMB 86.65 billion at the end of 2024[73] Key Financial Ratios | Ratio | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Debt to Equity Ratio | 166.8% | 145.6% | | Debt to Asset Ratio | 34.9% | 33.8% | | Current Ratio | 0.9 times | 1.0 times | Risk Management The Group faces significant unhedged foreign currency risk from substantial foreign currency-denominated debts and interest rate risk from floating-rate borrowings - The Group is exposed to foreign currency risk, primarily from bank balances, borrowings, senior notes, and convertible bonds denominated in foreign currencies, with no foreign currency hedging arrangements in place[75] - The Group is exposed to market interest rate fluctuation risk related to interest-bearing bank and other borrowings and does not use derivative financial instruments to hedge interest rate risk[76] Other Information Dividends and Governance The Board resolved not to declare an interim dividend for H1 2025 due to current financial conditions, while the company complied with corporate governance codes, and interim results were reviewed by auditors and the audit committee - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[80] - The Company complied with the Corporate Governance Code during the reporting period, and the interim financial statements were reviewed by the auditor and considered by the audit committee[81][84]