中国海外宏洋集团(00081) - 2025 - 中期业绩

Financial Highlights Provides a concise overview of the company's key financial and operational performance for the first half of 2025 Key Financial and Operational Data for H1 2025 | Indicator | H1 2025 (CNY) | YoY Change | Remarks | | :--- | :--- | :--- | :--- | | Contracted Sales | 16.61 billion yuan | -12.7% | Involving contracted GFA of 1,472,400 sq.m. | | Revenue | 14.54 billion yuan | -33.4% | | | Gross Profit | 1.35 billion yuan | -36.1% | Gross profit margin 9.3% | | Profit Attributable to Owners of the Company | 284 million yuan | -67.9% | | | Basic Earnings Per Share | 8.0 fen | -67.9% | | | Sales Collection | 16.95 billion yuan | | | | Operating Cash Flow | Net inflow of 1.17 billion yuan | | | | Total Cash and Bank Balances | 28.53 billion yuan | | 22.3% of total assets | | Net Gearing Ratio | 33.5% | | | | Total GFA of Newly Acquired Land | 1,328,300 sq.m. | | Total consideration 6.19 billion yuan | | Total GFA of Land Bank | 13,541,900 sq.m. | | Group's attributable GFA 11,459,500 sq.m. | | Interim Dividend | HKD 1 fen per share | | | Chairman's Statement The Chairman's Statement provides an overview of the company's performance, market conditions, and strategic direction Introduction The company announced its unaudited interim results for H1 2025, with revenue down 33.4% to CNY 14.54 billion and profit attributable to owners down 67.9% to CNY 284 million H1 2025 Core Financial Performance | Indicator | H1 2025 (CNY) | YoY Change | | :--- | :--- | :--- | | Revenue | 14.54 billion yuan | -33.4% | | Profit Attributable to Owners of the Company | 284 million yuan | -67.9% | | Basic Earnings Per Share | 8.0 fen | | - The Board declared an interim dividend of HKD 1 fen per share for the six months ended June 30, 2025[5] Market Review In H1 2025, China's economy showed resilience with 5.3% GDP growth, while the real estate market stabilized with steady sales and narrowing price declines - In H1 2025, China's GDP grew by 5.3%, driven by stable domestic demand, better-than-expected exports, and rapid industrial production[6] - The real estate market stabilized, with new home sales area and value remaining steady, a narrowing year-on-year decline in new commercial residential prices, and a continuous three-month reduction in unsold inventory[6] H1 2025 National Top 100 Cities Commercial Residential Sales Data | Indicator | H1 2025 (CNY) | YoY Change | | :--- | :--- | :--- | | Sales Value | 2.04 trillion yuan | -2.1% | | Sales Area | 95 million sq.m. | -6.1% | Operations Review The Group's H1 2025 contracted sales decreased by 12.7% to CNY 16.61 billion, but attributable contracted sales decreased by 8.9% to CNY 14.25 billion, ranking 20th in the industry H1 2025 Sales and Operations Data | Indicator | H1 2025 (CNY) | YoY Change | | :--- | :--- | :--- | | Contracted Sales (Group series companies) | 16.61 billion yuan | -12.7% | | Contracted Sales Area (Group series companies) | 1,472,400 sq.m. | -11.1% | | Attributable Contracted Sales | 14.25 billion yuan | -8.9% | | Average Residential Sales Price | 12,200 yuan/sq.m. | -2.1% | | Commercial Property Revenue | 235 million yuan | +11.3% | | Commercial Property Leased Area | 480,000 sq.m. | +2.9% | - The Group launched 8 new projects in H1, with an average efficiency of 102 days, shortening the average launch efficiency by 42 days compared to full-year 2024[9] - The Group's sales value ranked among the top three in 19 cities, including first place in 8 cities such as Lanzhou, Ganzhou, Yinchuan, Hohhot, Taizhou, and Tangshan[11] H1 2025 Land Bank New Additions and Period-End Data | Indicator | H1 2025 (CNY) | Remarks | | :--- | :--- | :--- | | Newly Added Total GFA | 1,328,300 sq.m. | Total consideration 6.19 billion yuan | | Newly Added Attributable GFA | 1,195,700 sq.m. | Attributable land price 5.36 billion yuan | | Period-End Total Land Bank GFA | 13,541,900 sq.m. | Group's attributable GFA 11,459,500 sq.m. | - The Group demonstrated leading delivery capabilities, with approximately 9,200 units delivered in H1 2025 and a delivery satisfaction rate of 96%, exceeding the industry's 95th percentile[14] H1 2025 Financial Stability Indicators | Indicator | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Sales Collection | 16.95 billion yuan | | | Operating Cash Flow | Net inflow | Positive for three consecutive years | | Cash Reserves | 28.53 billion yuan | | | Net Gearing Ratio | 33.5% | | | Weighted Average Financing Cost | 3.5% | 4.3% | | HKD and USD Interest-Bearing Debt Ratio | 14.2% | 19.0% (end of last year) | - The Group maintained a "green-light" status under the "Three Red Lines" policy, indicating strong financial health[14] - The Group received an AA rating in the Wind ESG assessment for three consecutive years, ranking among the top three in the real estate industry[15] - The company actively promotes ESG initiatives, with its "China Overseas Heshan Daguan" project selected as a demonstration case for national green and low-carbon "good houses" in 2024-2025[15] Strategic Outlook For H2 2025, policies are expected to further stabilize the housing market, with urban renewal and land acquisition improving inventory pressure, while the Group focuses on "medium and beautiful" development - Policies are expected to further stabilize the housing market in H2 2025, with urban renewal and land acquisition improving industry inventory pressure, accelerating a new balance between supply and demand in the real estate market[18] - The Group will adhere to its "medium and beautiful" development positioning, focusing on key second and third-tier cities, with a core strategy of "refining existing assets and optimizing new additions"[18][19] - The company will systematically promote the construction of "good houses," providing safe, comfortable, green, and smart products that meet customer expectations, while maintaining high customer satisfaction in the industry[21] - The Group will continuously strengthen cash flow management, cost, and risk control capabilities to maintain sufficient financial flexibility and ensure its "Three Red Lines" remain in the "green-light" category[21] - Human resource management will accelerate digital transformation, optimize organizational structure, streamline redundant positions, prioritize retaining core technical and management talent, and emphasize employee development and corporate culture building[22] Acknowledgement The Chairman extends sincere gratitude to all directors, management, employees, stakeholders, customers, partners, and the community, pledging to create greater value for shareholders Management Discussion and Analysis This section provides a detailed review of the Group's business performance, financial position, and future outlook Business Review In H1 2025, the mainland real estate market continued to recover with policy support, but slowed in Q2, leading to a 33.4% revenue decrease and a 67.9% decline in profit attributable to owners - In H1 2025, the mainland real estate market continued its recovery with policy support, but slowed in the second quarter, showing significant differentiation across cities[27] H1 2025 Core Financial and Operational Data | Indicator | H1 2025 (CNY) | H1 2024 (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Contracted Sales (Group series companies) | 16.61 billion yuan | 19.02 billion yuan | -12.7% | | Attributable Contracted Sales | 14.25 billion yuan | 15.63 billion yuan | -8.9% | | Revenue | 14.54 billion yuan | 21.85 billion yuan | -33.4% | | Gross Profit | 1.35 billion yuan | 2.11 billion yuan | -36.1% | | Gross Profit Margin | 9.3% | 9.6% | -0.3 percentage points | | Distribution and Selling Expenses | 569 million yuan | 602 million yuan | -33 million yuan | | Administrative Expenses | 290 million yuan | 407 million yuan | -117 million yuan | | Operating Profit | 622 million yuan | 1.32 billion yuan | -52.9% | | Total Interest Expense | 710 million yuan | 922 million yuan | -212 million yuan | | Finance Costs | 19 million yuan | 24 million yuan | | | Share of Loss of Associates | 18 million yuan | Profit of 45 million yuan | | | Share of Loss of Joint Ventures | 36 million yuan | Profit of 18 million yuan | | | Income Tax Expense | 167 million yuan | 495 million yuan | -328 million yuan | | Effective Tax Rate | 30.4% | 36.5% | | | Profit Attributable to Owners of the Company | 284 million yuan | 885 million yuan | -67.9% | | Basic Earnings Per Share | 8.0 fen | 24.9 fen | | Land Bank In H1 2025, the Group acquired 11 new projects in seven key cities, totaling 1,328,300 sq.m. of GFA for CNY 6.19 billion, bringing the total land bank to 13,541,900 sq.m. - The Group acquired 11 new projects in H1, with a total consideration of CNY 6.19 billion, absorbing a total GFA of 1,328,300 sq.m., of which the Group's attributable GFA was 1,195,700 sq.m.[31] H1 2025 Newly Acquired Land Information | City | Project Name | Attributable Equity | Total GFA (sq.m.) | | :--- | :--- | :--- | :--- | | Nantong | Chongchuan District Project (Nantong Zhenrufu Phase II) | 100% | 89,200 | | Hohhot | Xincheng District Project 1 (COHL Xueshili) | 100% | 97,300 | | Hohhot | Xincheng District Project 2 (COHL Xueshili) | 100% | 114,500 | | Hefei | Baohe District Project 1 (Yuejing Yunqi) | 100% | 113,900 | | Yangzhou | Hanjiang District Project (Yangzhou Jiuyuanzi) | 100% | 22,900 | | Shaoxing | Yuecheng District Project (Yuehu Yunqi) | 100% | 67,200 | | Nanning | Xingning District Project (COHL Future Realm) | 100% | 156,800 | | Hefei | Yaohai District Project (COHL Wangjinfu) | 100% | 87,000 | | Lanzhou | Chengguan District Project (Sky Mirror) | 100% | 319,600 | | Hefei | Baohe District Project 2 | 39% | 42,900 | | Hefei | Baohe District Project 3 | 51% | 217,000 | | Total | | | 1,328,300 | - As of June 30, 2025, the Group's series companies had a total land bank GFA of 13,541,900 sq.m. (December 31, 2024: 13,778,100 sq.m.), of which the Group's attributable GFA was 11,459,500 sq.m.[33] Segment Information The Group's two main segments are property development and commercial property operations, with property development revenue decreasing by 33.9% and commercial property revenue increasing by 11.3% in H1 2025 Property Development The property development segment's H1 2025 contracted sales decreased by 12.7% to CNY 16.61 billion, with recognized revenue down 33.9% to CNY 14.31 billion and gross profit margin narrowing to 8.6% H1 2025 Property Development Segment Sales and Revenue | Indicator | H1 2025 (CNY) | H1 2024 (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Contracted Sales (Group series companies) | 16.61 billion yuan | 19.02 billion yuan | -12.7% | | Contracted Area (Group series companies) | 1,472,400 sq.m. | 1,656,200 sq.m. | -11.1% | | Contracted Sales from Associates and Joint Ventures | 973 million yuan | 1.69 billion yuan | | | GFA Completed | 1,570,400 sq.m. | 3,224,500 sq.m. | | | Recognized Revenue | 14.31 billion yuan | 21.64 billion yuan | -33.9% | | Gross Profit Margin | 8.6% | 9.2% | -0.6 percentage points | | Segment Profit | 449 million yuan | 1.24 billion yuan | | - As of June 30, 2025, the total amount of ongoing subscriptions pending signing of sale and purchase agreements was CNY 207 million, covering a total contracted area of 19,200 sq.m.[34] - Property sales from real estate development projects of associates and joint ventures were also affected by the continued market consolidation, with the segment's share of net loss from associates and joint ventures being CNY 57 million (H1 2024: net profit of CNY 61 million)[38] - As of June 30, 2025, the GFA of properties under development and completed properties held for sale was 7,487,100 sq.m. and 3,052,600 sq.m. respectively, totaling 10,539,700 sq.m.[42] Commercial Property Operations The Group's commercial property operations generated CNY 235 million in revenue in H1 2025, an 11.3% increase, with segment profit remaining stable at CNY 111 million - As of June 30, 2025, the Group's series companies held commercial properties with a leased area of approximately 480,000 sq.m. and a total book value of CNY 6.95 billion[43] H1 2025 Commercial Property Operations Revenue | Revenue Source | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Commercial Property Rental Income | 151 million yuan | 137 million yuan | | Hotel and Other Commercial Property Operations | 84 million yuan | 74 million yuan | | Total Revenue | 235 million yuan | 211 million yuan | - The segment profit for the period was CNY 111 million (H1 2024: CNY 110 million), remaining stable year-on-year[44] Financial Resources and Liquidity The Group maintains a healthy financial position with a net gearing ratio of 33.5%, operating cash flow of CNY 1.17 billion, and a weighted average financing cost reduced to 3.5% - The Group successfully issued an additional CNY 1.5 billion in domestic corporate bonds with a term of three to five years and an annual coupon rate of 2.4% to 2.7%[46] - During the period, CNY 970 million in new operating property loans were drawn, with a term of ten to fifteen years[46] H1 2025 Financing Cost and Debt Structure | Indicator | H1 2025 | H1 2024/Year-end | | :--- | :--- | :--- | | Weighted Average Financing Cost | 3.5% | 4.3% (H1 2024) / 4.1% (YE 2024) | | Total Bank and Other Loans | 31.70 billion yuan | 30.92 billion yuan (YE 2024) | | CNY Loan Proportion (Bank and other loans) | 93.0% | 87.8% (YE 2024) | | HKD Loan Proportion (Bank and other loans) | 7.0% | 12.2% (YE 2024) | | Fixed-Rate Borrowings Proportion (Bank and other loans) | 41.7% | 41.6% (YE 2024) | | Floating-Rate Borrowings Proportion (Bank and other loans) | 58.3% | 58.4% (YE 2024) | | Bank and Other Loans Due Within One Year Proportion | 22.4% | 31.5% (YE 2024) | | Total Guaranteed Notes and Corporate Bonds | 9.68 billion yuan | 8.78 billion yuan (YE 2024) | | Total Loans (incl. guaranteed notes and corporate bonds) | 41.38 billion yuan | 39.70 billion yuan (YE 2024) | | CNY Loan Proportion (Total loans) | 85.8% | 81.0% (YE 2024) | | HKD/USD Loan Proportion (Total loans) | 14.2% | 19.0% (YE 2024) | | Average Repayment Period of Total Loans | 2.7 years | 2.5 years (YE 2024) | H1 2025 Liquidity and Debt Indicators | Indicator | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Sales Collection | 16.95 billion yuan | | | Operating Cash Flow | Net inflow of 1.17 billion yuan | | | Cash and Bank Balances | 28.53 billion yuan | 27.29 billion yuan | | Cash and Bank Balances as % of Total Assets | 22.3% | 21.1% | | Net Working Capital | 59.70 billion yuan | 59.44 billion yuan | | Current Ratio | 2.0 | 2.0 | | Net Gearing Ratio | 33.5% | 33.1% | | Asset-Liability Ratio | 69.9% | 70.9% | | Asset-Liability Ratio (excluding pre-receipts) | 61.5% | 63.0% | | Cash to Short-Term Debt Ratio | 1.5 times | 1.7 times | | Available Funds (incl. undrawn credit facilities) | 37.50 billion yuan | 37.77 billion yuan | - The Group did not trigger any of China's "Three Red Lines" and maintained its "green-light" enterprise status[53] Foreign Exchange Risk While the Group's mainland business is naturally hedged by CNY settlement, the 14.2% HKD/USD debt exposure still poses foreign exchange risk, which is managed by increasing CNY loan proportion - HKD/USD still accounts for approximately 14.2% of the Group's total borrowings (December 31, 2024: 19.0%), posing foreign exchange risk[56] - The Group has not entered into hedging or speculative derivative financial instruments and is managing foreign exchange risk by increasing the proportion of CNY loans in its overall loan portfolio[57] Commitments and Guarantees As of June 30, 2025, the Group's total commitments amounted to CNY 12.38 billion, primarily related to land payments and property development, alongside guarantees for mortgage credit and associate/joint venture financing H1 2025 Commitments and Guarantees | Type | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Total Commitments | 12.38 billion yuan | 12.15 billion yuan | | Guarantees for Property Sales User Mortgage Credit | 14.96 billion yuan | 15.86 billion yuan | | Guarantees for Associates and Joint Ventures Credit Financing | 238 million yuan | 290 million yuan | Capital Expenditure and Asset Pledges The Group's H1 2025 capital expenditure was CNY 1 million, with assets totaling CNY 7.39 billion pledged to secure property development and operating property loans H1 2025 Capital Expenditure and Asset Pledges | Indicator | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Capital Expenditure | 1 million yuan | 35 million yuan | | Book Value of Pledged Property Inventories | 3.41 billion yuan | 7.20 billion yuan (YE 2024) | | Book Value of Pledged Investment Properties | 3.90 billion yuan | 3.81 billion yuan (YE 2024) | | Book Value of Pledged Property, Plant and Equipment | 84 million yuan | None (YE 2024) | | Property Development Project Loans | 1.30 billion yuan | 1.60 billion yuan (YE 2024) | | Operating Property Loans | 3.36 billion yuan | 2.51 billion yuan (YE 2024) | Employees As of June 30, 2025, the Group's employee count was 2,307, a reduction primarily due to organizational streamlining, with ongoing efforts in talent development and compensation review - As of June 30, 2025, the Group had 2,307 employees (December 31, 2024: 2,429 employees), with the decrease primarily due to organizational streamlining and headcount optimization during the period[60] - The Group regularly reviews its remuneration policies and benefits, providing compensation and discretionary bonuses based on position, performance, and market conditions, along with training and development opportunities[60] Condensed Consolidated Financial Statements This section presents the Group's unaudited condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position Condensed Consolidated Statement of Profit or Loss This chapter presents the unaudited condensed consolidated statement of profit or loss for the six months ended June 30, 2025, showing a profit for the period of CNY 382 million, a 55.7% decrease year-on-year Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Indicator | 2025 (CNY thousand) | 2024 (CNY thousand) | | :--- | :--- | :--- | | Revenue | 14,543,468 | 21,852,074 | | Cost of Sales and Services | (13,195,524) | (19,743,700) | | Gross Profit | 1,347,944 | 2,108,374 | | Operating Profit | 621,897 | 1,319,439 | | Profit Before Income Tax | 549,817 | 1,358,741 | | Income Tax Expense | (167,400) | (495,263) | | Profit for the Period | 382,417 | 863,478 | | Profit Attributable to Owners of the Company | 283,841 | 884,588 | | Non-controlling Interests | 98,576 | (21,110) | | Basic Earnings Per Share (CNY fen) | 8.0 | 24.9 | Condensed Consolidated Statement of Comprehensive Income This chapter presents the unaudited condensed consolidated statement of comprehensive income for the six months ended June 30, 2025, with a total comprehensive income of CNY 708 million for the period Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (CNY thousand) | 2024 (CNY thousand) | | :--- | :--- | :--- | | Profit for the Period | 382,417 | 863,478 | | Other Comprehensive Income (after tax) | 325,463 | (239,647) | | Total Comprehensive Income for the Period | 707,880 | 623,831 | | Total Comprehensive Income Attributable to Owners of the Company | 609,304 | 644,941 | | Non-controlling Interests | 98,576 | (21,110) | Condensed Consolidated Statement of Financial Position This chapter presents the unaudited condensed consolidated statement of financial position as of June 30, 2025, showing total assets of CNY 127.74 billion, total liabilities of CNY 89.35 billion, and net assets of CNY 38.40 billion Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (CNY thousand) | December 31, 2024 (CNY thousand) | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 7,386,115 | 7,980,192 | | Current Assets | 120,356,393 | 121,202,702 | | Total Assets | 127,742,508 | 129,182,894 | | Liabilities | | | | Current Liabilities | 60,652,197 | 61,766,987 | | Non-current Liabilities | 28,694,770 | 29,864,844 | | Total Liabilities | 89,346,967 | 91,631,831 | | Net Assets | 38,395,541 | 37,551,063 | | Net Current Assets | 59,704,196 | 59,435,715 | | Equity Attributable to Owners of the Company | 31,777,569 | 31,395,867 | | Non-controlling Interests | 6,617,972 | 6,155,196 | Notes to the Condensed Financial Statements This section provides detailed notes explaining the basis of preparation, accounting policies, and specific financial items within the condensed consolidated financial statements 1. General Information This note outlines China Overseas Grand Oceans Group Limited's basic information, including its Hong Kong incorporation, listed shares, primary business in property development and commercial property operations in mainland China - The Company's principal activities are property development and commercial property operations, primarily conducted in certain regions of mainland China[66] - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules, and have been reviewed by the Audit Committee[66][67] 2. Basis of Preparation These interim financial statements are prepared under the historical cost convention, except for investment properties measured at fair value, and are presented in CNY, with consistent accounting policies as the 2024 annual financial statements - These interim financial statements are prepared under the historical cost convention, except for investment properties measured at fair value, and are presented in CNY[68][69] - Interim income tax is accrued using the tax rate applicable to the expected total annual earnings[70] - The Group designates certain CNY-denominated borrowings as net investment hedges for overseas operations, with gains or losses on the effective portion of hedging instruments recognized in other comprehensive income[71][72] 3. Adoption of Hong Kong Financial Reporting Standards The Group first applied a single amendment to HKAS 21 in the annual reporting period beginning January 1, 2025, with no significant impact expected, and is evaluating other new or revised standards - The Group first applied a single amendment to Hong Kong Accounting Standard 21 in the annual reporting period beginning January 1, 2025, with no significant impact expected on the current or future periods[74] - The report lists several new or revised accounting standards and interpretations not yet adopted, and the Group is assessing their impact upon initial application[75][76] 4. Revenue The Group's total revenue for H1 2025 was CNY 14.54 billion, primarily derived from property development (CNY 14.31 billion) and commercial property operations (CNY 235 million) Revenue Composition (For the six months ended June 30) | Business Type | 2025 (CNY thousand) | 2024 (CNY thousand) | | :--- | :--- | :--- | | Property Development | 14,308,715 | 21,641,173 | | Commercial Property Operations | 234,753 | 210,901 | | Total Revenue | 14,543,468 | 21,852,074 | 5. Segment Information The Group's reportable segments are property development and commercial property operations, with H1 2025 segment revenue of CNY 14.31 billion and CNY 235 million, respectively - The Group's reportable segments are property development (property development and sales) and commercial property operations (property leasing, hotel, and other commercial property operations)[79][80] Segment Performance Overview (For the six months ended June 30) | Indicator | Property Development (CNY thousand) | Commercial Property Operations (CNY thousand) | Consolidated (CNY thousand) | | :--- | :--- | :--- | :--- | | H1 2025 | | | | | Reportable Segment Revenue | 14,308,715 | 234,753 | 14,543,468 | | Reportable Segment Profit | 449,047 | 111,022 | 560,069 | | Profit Before Income Tax | | | 549,817 | | Reportable Segment Assets | 116,407,115 | 6,961,016 | 123,368,131 | | Total Consolidated Assets | | | 127,742,508 | | Reportable Segment Liabilities | 43,989,569 | 106,530 | 44,096,099 | | Total Consolidated Liabilities | | | 89,346,967 | | H1 2024 | | | | | Reportable Segment Revenue | 21,641,173 | 210,901 | 21,852,074 | | Reportable Segment Profit | 1,238,445 | 110,161 | 1,348,606 | | Profit Before Income Tax | | | 1,358,741 | 6. Profit Before Income Tax This chapter details the components of profit before income tax, including depreciation, inventory recognized as expense, staff costs, and net exchange gains, totaling CNY 550 million for H1 2025 Profit Before Income Tax Components (For the six months ended June 30) | Item | 2025 (CNY thousand) | 2024 (CNY thousand) | | :--- | :--- | :--- | | Total Depreciation | 60,706 | 59,120 | | Inventory Recognized as Expense in Cost of Sales and Services | 12,818,211 | 19,641,866 | | Staff Costs | 384,722 | 520,891 | | Net Exchange Gains | (14,056) | (57,410) | - Enterprise income tax in other regions of China is calculated at 25%, and land appreciation tax is levied at progressive rates of 30% to 60% on the estimated land appreciation amount[85] 7. Income Tax Expense This chapter presents the Group's H1 2025 income tax expense of CNY 167 million, a significant decrease from the prior year, primarily due to lower operating profit and land appreciation tax adjustments Income Tax Expense (For the six months ended June 30) | Item | 2025 (CNY thousand) | 2024 (CNY thousand) | | :--- | :--- | :--- | | Current Tax - Enterprise Income Tax | 203,801 | 354,440 | | Current Tax - Land Appreciation Tax | (411,748) | (11,759) | | Under/(Over) Provision in Prior Years | 2,204 | (2,817) | | Deferred Tax | 373,143 | 155,399 | | Total Income Tax Expense | 167,400 | 495,263 | - The decrease in income tax expense was primarily due to lower operating profit and adjustments following land appreciation tax settlements for certain projects, resulting in an effective tax rate of 30.4% (H1 2024: 36.5%)[30][86] 8. Dividends The Board declared an interim dividend of HKD 0.01 per share for the six months ended June 30, 2025, totaling approximately CNY 32.67 million, which is lower than the prior year Dividend Distribution | Dividend Type | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interim Dividend (per share) | HKD 0.01 | HKD 0.03 | | Total Interim Dividend (approx. CNY) | 32,670,000 yuan | 97,730,000 yuan | 9. Earnings Per Share Basic earnings per share attributable to owners of the Company was 8.0 fen, identical to diluted earnings per share due to the absence of potentially dilutive ordinary shares during the period Earnings Per Share (For the six months ended June 30) | Indicator | 2025 (CNY thousand/thousand shares) | 2024 (CNY thousand/thousand shares) | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company | 283,841 | 884,588 | | Weighted Average Number of Ordinary Shares in Issue | 3,559,375 | 3,559,375 | | Basic Earnings Per Share (CNY fen) | 8.0 | 24.9 | | Diluted Earnings Per Share (CNY fen) | 8.0 | 24.9 | 10. Trade and Other Receivables As of June 30, 2025, the Group's total trade and other receivables amounted to CNY 752 million, with trade receivables at CNY 165 million, and no significant impairment provisions or concentrated credit risk recognized Trade and Other Receivables (As of June 30) | Item | June 30, 2025 (CNY thousand) | December 31, 2024 (CNY thousand) | | :--- | :--- | :--- | | Trade Receivables | 164,813 | 210,825 | | Other Receivables | 587,209 | 537,585 | | Total | 752,022 | 748,410 | Trade Receivables Ageing Analysis (As of June 30) | Ageing | June 30, 2025 (CNY thousand) | December 31, 2024 (CNY thousand) | | :--- | :--- | :--- | | 30 days or less | 89,950 | 90,632 | | 31 – 60 days | 4,235 | 594 | | 61 – 90 days | 2,368 | 1,469 | | 91 – 180 days | 5,089 | 365 | | 181 – 360 days | 37,473 | 10,383 | | Over 360 days | 25,698 | 107,382 | - As of June 30, 2025, no significant impairment provisions were recognized for the total amount of trade and other receivables, and there was no concentrated credit risk[90][91] 11. Cash and Bank Balances As of June 30, 2025, the Group's total cash and bank balances amounted to CNY 28.53 billion, comprising CNY 23.30 billion in cash and cash equivalents and CNY 5.22 billion in other bank balances Cash and Bank Balances (As of June 30) | Item | June 30, 2025 (CNY thousand) | December 31, 2024 (CNY thousand) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 23,301,980 | 21,735,740 | | Other Bank Balances | 5,223,669 | 5,555,114 | | Total | 28,525,649 | 27,290,854 | - Other bank balances primarily represent pre-sale proceeds from property sales in China and are subject to usage restrictions[92] 12. Trade and Other Payables As of June 30, 2025, the Group's total trade and other payables were CNY 10.81 billion, with trade payables at CNY 9.80 billion, and the largest proportion falling within 30 days or less Trade and Other Payables (As of June 30) | Item | June 30, 2025 (CNY thousand) | December 31, 2024 (CNY thousand) | | :--- | :--- | :--- | | Trade Payables | 9,802,041 | 12,090,963 | | Other Payables and Accrued Expenses | 496,979 | 1,188,997 | | Dividends Payable | 227,665 | - | | Deposits Received | 279,770 | 370,295 | | Total | 10,806,455 | 13,650,255 | Trade Payables Ageing Analysis (As of June 30) | Ageing | June 30, 2025 (CNY thousand) | December 31, 2024 (CNY thousand) | | :--- | :--- | :--- | | 30 days or less | 3,095,743 | 4,368,642 | | 31 – 60 days | 407,052 | 601,722 | | 61 – 90 days | 228,512 | 284,335 | | 91 – 180 days | 1,060,190 | 1,054,726 | | 181 – 360 days | 2,227,757 | 2,272,931 | | Over 360 days | 2,782,787 | 3,508,607 | Other Information This section covers additional disclosures including interim dividend details, compliance with securities transaction codes, corporate governance practices, and audit committee review Interim Dividend and Closure of Register of Members The Board declared an interim dividend of HKD 1 fen per share for the six months ended June 30, 2025, payable on October 17, 2025, with the register of members to be closed on September 22, 2025 - The Board declared an interim dividend of HKD 1 fen per share (2024: HKD 3 fen per share) for the six months ended June 30, 2025, payable in cash[94] Interim Dividend Payment Key Dates | Event | Date | | :--- | :--- | | Ex-dividend Date | September 18, 2025 | | Latest Time for Lodging Transfer Documents | 4:30 p.m. on September 19, 2025 | | Book Close Date and Record Date | September 22, 2025 | | Interim Dividend Payment Date | October 17, 2025 | Standard Code for Securities Transactions The Company has adopted a code of conduct for directors' securities transactions that meets or exceeds Listing Rule Appendix C3 requirements, and all directors confirmed compliance in H1 2025 - The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than those set out in Appendix C3 of the Listing Rules[96] - All directors confirmed compliance with the code of conduct for the six months ended June 30, 2025[96] Corporate Governance Practices The Group is committed to enhancing corporate governance and has practiced the principles and complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules during H1 2025 - The Group is committed to enhancing corporate governance and has practiced the principles and complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules during the six months ended June 30, 2025[97] Repurchase, Sale or Redemption of the Company's Listed Securities In H1 2025, China Overseas Grand Oceans Properties Group Co., Ltd. issued CNY 1.5 billion in corporate bonds to redeem existing ones and early redeemed CNY 500 million in carbon-neutral green corporate bonds - In May 2025, China Overseas Grand Oceans Properties completed the issuance of CNY 1.5 billion in 2025 corporate bonds (First Tranche) for the redemption of existing bonds[98] - In June 2025, China Overseas Grand Oceans Properties early redeemed in full CNY 500 million of its 2023 Carbon Neutral Green Corporate Bonds (First Tranche) at par value[98] Audit Committee Review of Interim Results The Audit Committee under the Board has reviewed the Company's unaudited interim results for the six months ended June 30, 2025, and discussed related matters with management - The Audit Committee under the Board has reviewed the Company's unaudited interim results for the six months ended June 30, 2025, and discussed matters related to audit, internal control, and other important issues with management[99]