金辉控股(09993) - 2025 - 中期业绩

Interim Results Announcement Announcement Details The Board of Directors of Radiance Holdings (Group) Company Limited is pleased to announce the unaudited interim condensed consolidated results for the six months ended June 30, 2025, which have been reviewed by the audit committee - Radiance Holdings (Group) Company Limited announced its unaudited interim condensed consolidated results for the six months ended June 30, 2025[3] - These interim results have been reviewed by the company's audit committee[3] Interim Condensed Consolidated Financial Statements Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the company's revenue significantly decreased by 60.9% to RMB 6,410.4 million, while gross profit remarkably increased by 991.7% to RMB 850.1 million, net loss narrowed by 85.3% year-on-year to RMB 283.6 million, and basic loss per share was RMB 0.06 Summary of Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 6,410,438 | 16,382,985 | -60.9% | | Cost of sales | (5,560,380) | (16,305,117) | -65.9% | | Gross profit | 850,058 | 77,868 | +991.7% | | (Loss)/Profit before tax | (152,245) | (1,366,639) | +88.9% (loss narrowed) | | Income tax expense | (131,386) | (560,400) | -76.6% | | (Loss)/Profit for the period | (283,631) | (1,927,039) | +85.3% (loss narrowed) | | (Loss)/Profit attributable to owners of the parent | (233,096) | (2,026,425) | +88.5% (loss narrowed) | | Basic and diluted (loss)/earnings per share | RMB (0.06) | RMB (0.50) | +88.0% (loss narrowed) | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets were RMB 91,831.7 million, a 5.0% decrease from the end of 2024. Net current assets remained stable at approximately RMB 13,375.7 million. Total debt slightly decreased by 3.5% to RMB 23,741.3 million, with a net gearing ratio of 93.0% Summary of Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Total non-current assets | 29,643,936 | 30,042,100 | -1.3% | | Total current assets | 62,187,812 | 66,615,246 | -6.6% | | Total current liabilities | 48,812,115 | 53,219,773 | -8.3% | | Net current assets | 13,375,697 | 13,395,473 | -0.1% | | Total assets less current liabilities | 43,019,633 | 43,437,573 | -1.0% | | Total non-current liabilities | 19,190,740 | 19,310,059 | -0.6% | | Net assets | 23,828,893 | 24,127,514 | -1.2% | | Total equity | 23,828,893 | 24,127,514 | -1.2% | Notes to the Interim Condensed Consolidated Financial Information Basis of Preparation and Going Concern The interim financial information is prepared in accordance with IAS 34 and should be read in conjunction with the annual consolidated financial statements. Despite a net loss and short-term borrowings exceeding cash, the Board believes the Group has sufficient working capital to continue as a going concern after implementing measures like accelerating pre-sales, monitoring construction, seeking refinancing, and controlling capital expenditure, though real estate market volatility presents uncertainties - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024[9] - The Group recorded a net loss of RMB 283,631,000 for the six months ended June 30, 2025, with short-term borrowings of RMB 6,739,901,000 and cash and cash equivalents of RMB 1,151,180,000, indicating significant going concern uncertainties[10] - The Board has implemented several measures to ensure sufficient working capital, including accelerating pre-sales and collections, monitoring construction progress, seeking refinancing for borrowings, and controlling significant capital expenditures, deeming the preparation of financial information on a going concern basis appropriate[11][12] Changes in Accounting Policies and Disclosures This period's financial information first adopted the revised IFRS, where IAS 21 (amended) regarding lack of exchangeability had no impact on the Group's interim condensed consolidated financial information, as all Group transaction currencies are exchangeable - The accounting policies adopted in preparing the interim condensed consolidated financial information are consistent with those of the annual consolidated financial statements, except for the first-time adoption of revised International Financial Reporting Standards[13] - IAS 21 (amended) regarding lack of exchangeability has no impact on the interim condensed consolidated financial information, as all the Group's transaction currencies are exchangeable[14] Operating Segment and Geographical Information The Group primarily operates in property development and sales, which is its sole reportable operating segment. No geographical information is presented as all revenue and significant non-current assets are from mainland China. No single customer contributed over 10% of revenue during the period - Property development and sales is the Group's sole reportable operating segment, with property leasing and hotel service management consulting services contributing insignificantly[15] - All of the Group's revenue and significant non-current assets are derived from mainland China, thus no geographical information is presented[16] - During the period, sales to any single customer or group of customers under common control did not account for 10% or more of the Group's revenue[17] Revenue, Other Income and Gains Analysis Total revenue for the period was RMB 6,410.4 million, a 60.9% year-on-year decrease, primarily due to a significant decline in property sales revenue. Property leasing revenue slightly increased by 3.8%, hotel services contributed RMB 46.5 million for the first time, and other income and gains slightly rose to RMB 14.6 million Revenue Analysis | Revenue Source | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Total revenue from contracts with customers | 6,208,352 | 16,188,320 | -61.6% | | - Property sales | 6,160,779 | 16,186,142 | -61.9% | | - Hotel services | 46,536 | – | N/A | | - Management consulting services | 1,037 | 2,178 | -52.4% | | Property leasing income | 202,086 | 194,665 | +3.8% | | Total Revenue | 6,410,438 | 16,382,985 | -60.9% | Other Income and Gains Analysis | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Forfeiture of deposits | 3,499 | 9,535 | -63.3% | | Subsidy income | 2,226 | 1,502 | +48.2% | | Exchange gains | 8,639 | – | N/A | | Total | 14,604 | 12,162 | +20.1% | Finance Costs Finance costs for the period increased by 21.9% to RMB 143.5 million, primarily due to increased interest expenses from contract revenue, despite a decrease in interest on loans and borrowings Finance Costs Analysis | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Interest on loans and borrowings | 596,621 | 753,994 | -20.9% | | Interest expense arising from contract revenue | 243,631 | 146,290 | +66.5% | | Less: Interest capitalized | (696,930) | (782,741) | -11.0% | | Total Finance Costs | 143,490 | 117,723 | +21.9% | Loss Before Tax and Income Tax Expense Loss before tax for the period significantly narrowed by 88.9% to RMB 152.2 million, mainly due to a substantial reduction in property impairment losses. Income tax expense also decreased by 76.6% to RMB 131.4 million due to a lower scale of recognized revenue Composition of (Loss)/Profit Before Tax | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Cost of inventories sold | 5,378,550 | 14,238,037 | -62.2% | | Impairment loss recognized on properties held for sale | 41,306 | 642,080 | -93.6% | | Impairment loss recognized on properties under development | 171,928 | 1,423,561 | -87.9% | | Impairment loss on financial assets | 2,711 | 46,937 | -94.2% | | Employee benefit expense | 65,152 | 119,302 | -45.4% | | (Loss)/Profit before tax | (152,245) | (1,366,639) | +88.9% (loss narrowed) | - The Group is subject to income tax for China corporate income tax and land appreciation tax, with land appreciation tax levied at progressive rates from 30% to 60%[22] Income Tax Expense Analysis | Item | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Corporate income tax | 114,234 | 312,869 | -63.5% | | Land appreciation tax | 65,579 | 228,701 | -71.3% | | Deferred tax | (48,427) | 18,830 | N/A (turned to gain) | | Total tax expense for the period | 131,386 | 560,400 | -76.6% | Dividends and Earnings/(Loss) Per Share The Board resolved not to declare an interim dividend for the six months ended June 30, 2025. Basic loss per share for the period significantly narrowed to RMB 0.06 from RMB 0.50 in the prior year, with no potential dilutive ordinary shares - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025[24] Basic (Loss)/Earnings Per Share | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | (Loss)/Profit attributable to ordinary equity holders of the parent (RMB thousands) | (233,096) | (2,026,425) | | Weighted average number of ordinary shares in issue | 4,045,227,000 | 4,045,227,000 | | Basic (loss)/earnings per share | RMB (0.06) | RMB (0.50) | - No adjustments were made for dilution to the reported basic (loss)/earnings per share for the six months ended June 30, 2025 and 2024, as the Group had no potentially dilutive ordinary shares in issue during the reporting periods[25] Trade Receivables and Payables As of June 30, 2025, trade receivables slightly increased to RMB 38.0 million, with the majority due within one year. Trade payables slightly decreased to RMB 10,211.3 million, primarily due within one year, and their fair value approximated their carrying amount Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within one year | 33,560 | 36,629 | | One to three years | 4,448 | 862 | | Total | 38,008 | 37,491 | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within one year | 9,598,583 | 9,621,850 | | Over one year | 612,675 | 614,161 | | Total | 10,211,258 | 10,236,011 | - Trade payables are unsecured, typically settled according to construction progress, and their fair value approximates their carrying amount[29][30] Chairman's Report Interim Performance Overview As of June 30, 2025, the Group's operating revenue was approximately RMB 6,410.4 million, a 60.9% year-on-year decrease. Gross profit was approximately RMB 850.1 million, with a gross profit margin of about 13.3%. Net loss was approximately RMB 283.6 million, and loss attributable to owners of the parent was approximately RMB 233.1 million Interim Performance Overview | Metric | Six Months Ended June 30, 2025 (RMB millions) | Six Months Ended June 30, 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 6,410.4 | 16,383.0 | -60.9% | | Gross Profit | 850.1 | 77.9 | +991.3% | | Gross Profit Margin | 13.3% | 0.5% | +12.8 percentage points | | Net Loss | (283.6) | (1,927.0) | +85.3% (loss narrowed) | | Loss attributable to owners of the Company | (233.1) | (2,026.4) | +88.5% (loss narrowed) | Strategic Focus and Debt Management The Group adheres to a steady progress strategy, actively responds to policy changes, and maintains financial safety. As of June 30, 2025, total debt was approximately RMB 23,741.3 million, a 3.5% decrease from the end of 2024. The weighted average debt cost decreased by 0.33 percentage points to 4.93% - The Group adheres to a long-term strategy of steady progress, actively responds to policy changes, and maintains its financial safety bottom line[33] Debt Management Metrics | Metric | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Debt Balance | 23,741.3 | 24,602.2 | -3.5% | | Weighted Average Debt Cost | 4.93% | 5.26% | -0.33 percentage points | Quality Delivery and Brand Strength As of June 30, 2025, the Group completed delivery of over 5,066 new homes across 12 cities nationwide, upholding high-quality early delivery and improving efficiency, demonstrating its robust brand strength in the industry - As of June 30, 2025, the Group completed delivery of over 5,066 new homes across 12 cities nationwide[34] - The Group upholds high-quality early delivery, continuously improving delivery efficiency, which confirms its robust brand strength in the industry[34] Outlook for H2 2025 Looking ahead to H2 2025, macroeconomic policies will continue to strongly promote the stabilization of the real estate market, which is generally bottoming out, though a full recovery will take time. The Group will actively adapt to market changes, focusing on customer satisfaction to provide high-quality, safe, comfortable, green, and smart "good homes" - In H2 2025, macroeconomic policies will continue to strongly promote the stabilization of the real estate market, which has generally shown signs of bottoming out and stabilizing[35] - The Group will actively adapt to market changes and customer needs, focusing on customer satisfaction to build safe, comfortable, green, and smart "good homes"[35] Appreciation and Future Vision The Chairman extends gratitude to shareholders, investors, partners, customers, and all employees. In the future, the Group will continue to maintain steady, balanced, and high-quality corporate development, adhering to the philosophy of "building good homes with heart for a better life," creating value for urban development, people's well-being, and shareholders - The Chairman, on behalf of the Board, thanks all shareholders, investors, partners, customers, and employees for their support and dedication[36] - The Group will continue to maintain steady, balanced, and high-quality corporate development, adhering to the philosophy of "building good homes with heart for a better life," to deliver better products and services to the industry and users, and create greater value for shareholders and investors[36] Management Discussion and Analysis Performance Summary As of June 30, 2025, the Group's revenue decreased by 60.9% year-on-year, but gross profit significantly increased by 991.7%, and net loss narrowed by 85.28%. Gross profit margin improved to 13.3%. Total assets decreased by 5.0%, total debt decreased by 3.5%, and the net gearing ratio was 93.0% Summary of Financial Information | Metric | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | Percentage Change | | :--- | :--- | :--- | :--- | | Recognized Revenue | 6,410,438 | 16,382,985 | -60.9% | | Gross Profit | 850,058 | 77,868 | 991.7% | | Net (Loss)/Profit | (283,631) | (1,927,040) | 85.28% | | Core Net (Loss)/Profit | (137,044) | (1,834,852) | 92.53% | | Gross Profit Margin | 13.3% | 0.5% | N/A | | Net Profit Margin | -4.4% | -11.8% | N/A | | Core Net Profit Margin | -2.1% | -11.2% | N/A | | (Loss)/Earnings Per Share (RMB cents) | (6) | (50) | N/A | | | | | | | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Percentage Change | | :--- | :--- | :--- | :--- | | Total Assets | 91,831,748 | 96,657,346 | -5.0% | | Total Debt | 23,741,289 | 24,602,216 | -3.5% | | Net Debt | 22,160,399 | 22,211,823 | -0.2% | | Equity attributable to owners of the parent | 14,600,326 | 14,833,422 | -1.6% | | Current Ratio | 1.3 | 1.3 | 0% | | Weighted Average Debt Cost | 4.93% | 5.26% | N/A | | Net Gearing Ratio | 93.0% | 92.1% | N/A | | Asset-Liability Ratio excluding advances from customers | 68.3% | 68.4% | N/A | - Core net (loss)/profit excludes fair value changes of investment properties and financial assets at fair value through profit or loss, and gains from disposal of subsidiaries, from profit for the period (after deducting related deferred tax)[40] Business Operations Overview The Group focuses on property development and sales across eight regions in China. During the period, both total GFA delivered and average selling price decreased. Total GFA of investment properties was approximately 1,348,098 sqm. Planned total GFA of projects under construction decreased by 21.0%. Total land reserve GFA was approximately 18,280,329 sqm Property Development and Sales The Group focuses on property development and sales in eight regions: Yangtze River Delta, Bohai Rim, East China, Central China, Southwest, Northwest, Southeast, and Shenzhen-Huizhou. As of June 30, 2025, total GFA delivered was 636,677 sqm, with an average selling price of RMB 9,676/sqm, and revenue of RMB 6,160,779 thousand, a significant decrease from the prior year Property Development and Sales Data by Region | Region | 2025 Revenue (RMB thousands) | 2025 GFA Delivered (sqm) | 2025 Average Selling Price (RMB/sqm) | 2024 Revenue (RMB thousands) | 2024 GFA Delivered (sqm) | 2024 Average Selling Price (RMB/sqm) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Southeast | 1,562,497 | 194,644 | 8,028 | 2,156,895 | 219,704 | 9,817 | | East China | 1,298,294 | 156,744 | 8,283 | 4,258,857 | 369,815 | 11,516 | | Central China | 165,645 | 28,193 | 5,875 | 3,001,540 | 267,026 | 11,241 | | Bohai Rim | 1,688,014 | 159,553 | 10,580 | 139,605 | 10,869 | 12,845 | | Northwest | 9,945 | 537 | 18,513 | 2,515,864 | 142,642 | 17,638 | | Southwest | 694,994 | 45,458 | 15,289 | 1,093,925 | 76,902 | 14,225 | | Yangtze River Delta | 741,390 | 51,548 | 14,383 | 1,586,791 | 68,872 | 23,040 | | Shenzhen-Huizhou | – | – | – | 1,428,665 | 96,170 | 14,856 | | Total | 6,160,779 | 636,677 | 9,676 | 16,186,142 | 1,252,000 | 12,925 | Investment Properties As of June 30, 2025, the Group held 27 investment properties with a total GFA of approximately 1,348,098 sqm, including one investment property held for future development with an estimated total GFA of approximately 69,530 sqm - As of June 30, 2025, the Group held 27 investment properties with a total GFA of approximately 1,348,098 sqm[42] - One of these is an investment property held for future development, with an estimated total GFA of approximately 69,530 sqm[42] Projects Under Construction As of June 30, 2025, the Group's projects under construction had a planned total GFA of approximately 8,349,359 sqm, a decrease of approximately 21.0% from December 31, 2024 - As of June 30, 2025, the Group's projects under construction had a planned total GFA of approximately 8,349,359 sqm[43] - This represents a decrease of approximately 21.0% from the planned total GFA of approximately 10,566,823 sqm as of December 31, 2024[43] Land Reserve As of June 30, 2025, the Group's total land reserve GFA was approximately 18,280,329 sqm, with an attributable total GFA of approximately 14,845,295 sqm, primarily located in Chongqing, Wuhan, Beijing, Shanghai, Xi'an, and Fujian Land Reserve Details (June 30, 2025) | Region | Land Reserve Area (sqm) | Attributable Land Reserve Area (sqm) | | :--- | :--- | :--- | | Subtotal of land reserve of the Group and its subsidiaries | 14,956,084 | 13,340,007 | | Subtotal of land reserve of the Group's joint ventures and associates | 3,324,245 | 1,505,289 | | Total | 18,280,329 | 14,845,295 | Financial Review Revenue for the period significantly decreased by 60.9% to RMB 6,410.4 million, primarily due to reduced property development and sales revenue. Gross profit remarkably increased by 991.7% to RMB 850.1 million, with the gross profit margin rising to 13.3%. Both loss before tax and loss for the period significantly narrowed, mainly benefiting from reduced impairment provisions and joint ventures turning profitable Revenue Analysis Total revenue for the period was approximately RMB 6,410.4 million, a 60.9% year-on-year decrease, mainly due to a 61.9% reduction in property development and sales revenue to RMB 6,160.78 million. Property leasing revenue increased by 3.8% to RMB 202.1 million, hotel services contributed RMB 46.5 million for the first time, and management consulting services revenue decreased by 52.9% - For the current period, the Group's revenue was approximately RMB 6,410.4 million, a decrease of approximately 60.9% compared to the same period in 2024[45] Revenue Source Composition | Revenue Source | 2025 (RMB thousands) | 2025 (%) | 2024 (RMB thousands) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Property development and sales | 6,160,779 | 96.1 | 16,186,142 | 98.8 | | - Residential | 6,060,550 | 94.5 | 15,755,758 | 96.2 | | - Commercial | 100,229 | 1.6 | 430,384 | 2.6 | | Property leasing | 202,086 | 3.2 | 194,665 | 1.2 | | Management consulting services | 1,037 | 0.0 | 2,178 | 0.0 | | Hotel services | 46,536 | 0.7 | – | – | | Total | 6,410,438 | 100.0 | 16,382,985 | 100.0 | - The decrease in property development and sales revenue was primarily attributable to a reduction in the number of completed and delivered property projects during the period, leading to a decrease in total GFA delivered[47] Cost of Sales Cost of sales for the period was approximately RMB 5,560.4 million, a decrease of approximately 65.9% from the prior year, mainly due to a reduction in the Group's recognized revenue scale during the period - For the current period, the Group's cost of sales was approximately RMB 5,560.4 million, a decrease of approximately 65.9% compared to the same period in 2024[51] - The decrease in cost of sales was primarily due to a reduction in the Group's recognized revenue scale during the period[51] Gross Profit and Margin The Group's gross profit significantly increased from RMB 77.9 million in the prior year to RMB 850.1 million in the current period, with the gross profit margin notably improving from 0.5% to 13.3% - The Group's gross profit increased from approximately RMB 77.9 million for the six months ended June 30, 2024, to approximately RMB 850.1 million for the current period[52] - The Group's gross profit margin increased from approximately 0.5% for the six months ended June 30, 2024, to approximately 13.3% for the current period[52] Financial Income and Other Income/Gains Financial income for the period decreased by 70.7% to RMB 3.2 million, mainly due to reduced bank balances and lower deposit interest rates. Other income and gains slightly increased to RMB 14.6 million - The Group's financial income decreased by approximately 70.7% from approximately RMB 11.0 million for the six months ended June 30, 2024, to approximately RMB 3.2 million for the current period[53] - The decrease in financial income was primarily due to a reduction in the Group's bank balances and lower interest income from deposits during the current period[53] - The Group's other income and gains slightly increased from approximately RMB 12.2 million for the six months ended June 30, 2024, to approximately RMB 14.6 million for the current period[54] Selling and Distribution Expenses Selling and distribution expenses for the period decreased by 35.9% to RMB 265.5 million, primarily due to the Group's reduced revenue - The Group's selling and distribution expenses decreased by approximately 35.9% from approximately RMB 414.2 million for the six months ended June 30, 2024, to approximately RMB 265.5 million for the current period[55] - The decrease in selling and distribution expenses was due to the Group's reduced revenue during the current period[55] Administrative Expenses Administrative expenses for the period decreased by 23.4% to RMB 193.2 million, mainly due to reduced revenue, employee salaries, and office expenses - The Group's administrative expenses decreased by approximately 23.4% from approximately RMB 252.4 million for the six months ended June 30, 2024, to approximately RMB 193.2 million for the current period[56] - The decrease in administrative expenses was due to the Group's reduced revenue, as well as lower employee salaries and office expenses during the current period[56] Finance Costs The Group's finance costs increased by 21.9% to RMB 143.5 million. As of June 30, 2025, the weighted average debt cost was 4.93%, a decrease from 5.26% at the end of 2024 - The Group's finance costs increased by approximately 21.9% from approximately RMB 117.7 million for the six months ended June 30, 2024, to approximately RMB 143.5 million for the current period[57] - The Group's weighted average debt cost as of June 30, 2025, was approximately 4.93% (December 31, 2024: 5.26%)[57] Other Expenses Other expenses for the period significantly decreased by 95.8% to RMB 4.7 million, primarily due to no significant impairment losses on financial assets and investments being recognized during the period - The Group's other expenses decreased by approximately 95.8% from approximately RMB 110.5 million for the six months ended June 30, 2024, to approximately RMB 4.7 million for the current period[58] - The decrease in other expenses was primarily due to the Group not recognizing significant impairment losses on financial assets and investments during the current period[58] Fair Value (Loss)/Gain on Investment Properties Fair value loss on investment properties increased by 59.0% to RMB 195.5 million for the period, mainly due to decreased occupancy rates and rental levels for some investment properties - For the current period, the Group recorded a fair value loss on investment properties of approximately RMB 195.5 million, an increase of approximately 59.0% compared to the fair value loss of approximately RMB 122.9 million for the six months ended June 30, 2024[59] - The increase in loss was primarily due to decreased occupancy rates and rental levels for some investment properties[59] Share of Joint Ventures and Associates Results Share of joint ventures turned from a loss to a gain of RMB 13.7 million for the period, mainly due to profitable property project recognition by joint ventures. Share of associates' loss increased to RMB 231.4 million, primarily affected by the real estate market sentiment and lower-than-expected selling prices, leading to impairment provisions for some property projects - The Group recorded a share of joint ventures' gain of approximately RMB 13.7 million for the current period, compared to a share of joint ventures' loss of approximately RMB 327.5 million for the six months ended June 30, 2024[60] - The shift from a share of joint ventures' loss to a gain was primarily due to the profitable recognition of property projects held by the Group's joint ventures during the current period[60] - The Group's share of associates' loss increased from approximately RMB 122.3 million for the six months ended June 30, 2024, to a loss of RMB 231.4 million for the current period, mainly due to impairment provisions for some property projects affected by real estate market sentiment and lower-than-expected selling prices[61] Loss Before Tax and Income Tax Expense Loss before tax for the period significantly narrowed by 88.9% to RMB 152.2 million, primarily due to reduced impairment provisions. Income tax expense decreased by 76.6% to RMB 131.4 million, mainly due to a lower scale of recognized revenue - The Group recorded a loss before tax of approximately RMB 152.2 million for the current period, a decrease of 88.9% compared to the loss before tax of approximately RMB 1,366.6 million for the six months ended June 30, 2024[62] - The significant reduction in loss before tax was primarily due to a decrease in the Group's impairment provisions during the current period[62] - The Group's income tax expense decreased by approximately 76.6% from RMB 560.4 million for the six months ended June 30, 2024, to RMB 131.4 million for the current period, mainly due to a corresponding decrease in income tax expense from the Group's reduced recognized revenue scale during the period[63] Loss for the Period Considering the aforementioned financial data changes, the Group's loss for the period was approximately RMB 283.6 million, a significant decrease of 85.3% from RMB 1,927 million in the prior year - The Group recorded a loss of approximately RMB 283.6 million, a significant decrease of 85.3% compared to the loss of approximately RMB 1,927 million for the six months ended June 30, 2024[64] Liquidity and Financial Resources As of June 30, 2025, the Group's net current assets remained stable, while cash and bank balances decreased to RMB 1,580.9 million. Total outstanding borrowings decreased by 3.5% to RMB 23,741.3 million, with a weighted average debt cost of 4.93% Net Current Assets As of June 30, 2025, the Group's net current assets were approximately RMB 13,375.7 million, largely unchanged from the end of 2024. Total current assets decreased by 6.6%, and total current liabilities decreased by 8.3%, mainly due to reductions in properties under development, cash and bank balances, contract liabilities, and other payables - As of June 30, 2025, the Group's net current assets were approximately RMB 13,375.7 million (December 31, 2024: approximately RMB 13,395.5 million)[65] - The decrease in total current assets was primarily due to a reduction in properties under development resulting from the Group's completion and delivery, and a decrease in cash and bank balances[65] - The decrease in total current liabilities was primarily due to a reduction in contract liabilities resulting from the Group's completion and delivery, and a decrease in other payables[65] Cash Position As of June 30, 2025, the Group's cash and bank balances were approximately RMB 1,580.9 million, a decrease from RMB 2,390.4 million at the end of 2024. The majority of cash is denominated in RMB, HKD, and USD - As of June 30, 2025, the Group's cash and bank balances were approximately RMB 1,580.9 million (December 31, 2024: approximately RMB 2,390.4 million)[66] - The majority of the Group's cash and bank balances are denominated in RMB, HKD, and USD[66] Debt Structure and Maturity As of June 30, 2025, the Group's total outstanding borrowings were approximately RMB 23,741.3 million, a 3.5% decrease from the end of 2024. RMB-denominated borrowings constituted the largest portion, with a weighted average debt cost of 4.93%. The debt structure includes current and non-current bank loans, other loans, corporate bonds, and asset-backed securities, with detailed maturity and fixed/floating rate breakdowns - As of June 30, 2025, the Group's total outstanding borrowings were approximately RMB 23,741.3 million (December 31, 2024: approximately RMB 24,602.2 million), a decrease of 3.5%[67] - Of this, RMB-denominated borrowings were approximately RMB 22,781 million, and USD-denominated borrowings were approximately RMB 960.3 million[67] Components of Borrowings (June 30, 2025) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total current | 6,739,901 | 7,532,895 | | Total non-current | 17,001,388 | 17,069,321 | | Total Borrowings | 23,741,289 | 24,602,216 | | Secured | 22,682,032 | 23,575,871 | | Unsecured | 1,059,257 | 1,026,345 | Borrowing Maturity and Interest Rate Classification (June 30, 2025) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank loans repayable (within one year) | 5,031,862 | 5,638,676 | | Other borrowings repayable (within one year) | 379,581 | 654,114 | | Corporate bonds and asset-backed securities proceeds repayable (within one year) | 1,328,458 | 1,240,105 | | Total | 23,741,289 | 24,602,216 | | Fixed rate | 14,281,971 | 14,196,117 | | Floating rate | 9,459,318 | 10,406,099 | Financial Risk Management and Liabilities The Group faces interest rate, foreign currency, credit, and liquidity risks but does not use derivatives for hedging. As of June 30, 2025, approximately RMB 40,240.5 million of assets were pledged. Contingent liabilities include guarantees of approximately RMB 14,502.7 million for property buyers and RMB 1,260.2 million for associated companies. Capital commitments were approximately RMB 12,594.0 million Assets Pledged As of June 30, 2025, approximately RMB 40,240.5 million of the Group's assets were pledged, including property, plant and equipment, land use rights, investment properties, properties under development, and right-of-use assets - As of June 30, 2025, the Group's borrowings were secured by assets of approximately RMB 40,240.5 million (December 31, 2024: approximately RMB 41,233.3 million)[70] - These assets include property, plant and equipment; land use rights; investment properties; properties under development; and right-of-use assets[70] Financial Risks (Interest Rate, Foreign Currency, Credit, Liquidity) The Group faces interest rate, foreign currency, credit, and liquidity risks but does not use derivatives for hedging. Interest rate risk is primarily associated with floating-rate borrowings. Foreign currency risk mainly arises from HKD and USD-denominated cash balances. Credit risk is managed through credit assessment and monitoring procedures. Liquidity risk is managed by maintaining a balance between financing continuity and flexibility - The Group faces interest rate risk, foreign currency risk, credit risk, and liquidity risk, but does not use any derivative or other instruments for hedging purposes[71] - Interest rate risk is primarily related to floating-rate bank and other borrowings, with the Group using floating-rate borrowings to manage interest costs[72] - Foreign currency risk primarily arises from HKD and USD-denominated cash and bank balances; the Group has no foreign currency hedging policy but closely monitors exchange rate risk[73] - Credit risk is managed through counterparty credit assessment, monitoring procedures, and regular review of the recoverability of receivables, with no highly concentrated credit risk[74] - Liquidity risk is managed by maintaining a balance between financing continuity and flexibility using interest-bearing bank and other borrowings, with continuous close monitoring of liquidity conditions[75] Contingent Liabilities As of June 30, 2025, the Group provided mortgage loan guarantees of approximately RMB 14,502.7 million for property buyers and guarantees of approximately RMB 1,260.2 million for associated companies. The Directors believe the likelihood of buyers defaulting on payment obligations is remote, thus no significant provision has been made - The Group has arranged for mortgage financing with several banks and provided guarantees to customers as collateral for mortgage loans[76] - As of June 30, 2025, the total guarantees provided by the Group to banks for financing granted to the Group's property buyers amounted to approximately RMB 14,502.7 million (December 31, 2024: approximately RMB 15,729.9 million)[78] - As of June 30, 2025, the total guarantees provided by the Group to banks and other institutions for financing granted to the Group's associated companies amounted to approximately RMB 1,260.2 million (December 31, 2024: approximately RMB 1,242.1 million)[78] Contingent Legal Matters The Group is involved in legal proceedings from time to time but believes that liabilities arising from such proceedings will not have a material adverse effect on its business, financial condition, or operating results - The Group may be involved in legal and other proceedings from time to time in the ordinary course of business[79] - The Group believes that liabilities arising from such proceedings will not have a material adverse effect on its business, financial condition, or operating results[79] Commitments and Off-balance Sheet Arrangements As of June 30, 2025, the Group's capital commitments related to property development activities, land acquisitions, and contributions to joint ventures and associates were approximately RMB 12,594.0 million. Except for the disclosed contingent liabilities, the Group had no other significant off-balance sheet commitments or arrangements - As of June 30, 2025, the Group's capital commitments related to property development activities, acquisition of land use rights, contributions to joint ventures and associates, and acquisition of equity interests were approximately RMB 12,594.0 million (December 31, 2024: approximately RMB 13,157.8 million)[80] - Except for the disclosed contingent liabilities, as of June 30, 2025, the Group had no outstanding or agreed-to-be-issued loan capital, bank overdrafts, loans, debt securities, borrowings or other similar indebtedness, acceptance credits, debentures, mortgages, charges, finance lease or hire purchase commitments, guarantees, or other significant contingent liabilities[81] Other Disclosures During the period, there were no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures, nor any future plans for major investments or capital assets. As of June 30, 2025, the Group had 636 employees, with staff costs of approximately RMB 65.2 million. No other significant events occurred after the reporting period Significant Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures For the six months ended June 30, 2025, the Group had no significant investments or significant acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no significant investments or significant acquisitions or disposals of subsidiaries, associates, or joint ventures[83] Future Plans for Major Investments or Capital Assets As of June 30, 2025, the Group had no future plans for any major investments or capital assets - As of June 30, 2025, the Group had no future plans for any major investments or capital assets[84] Employees As of June 30, 2025, the Group had a total of 636 employees, with the vast majority located in China. Staff costs for the period were approximately RMB 65.2 million, a decrease from RMB 119.3 million in the prior year. Salaries are determined based on qualifications, position, and seniority, with a regular review system - As of June 30, 2025, the Group had a total of 636 employees, with the vast majority located in China[85] - For the current period, staff costs (including Directors' emoluments) were approximately RMB 65.2 million (six months ended June 30, 2024: approximately RMB 119.3 million)[85] - The Group determines salaries based on each employee's qualifications, position, and seniority, and has a regular review system in place[85] Subsequent Events No other significant events occurred for the Group after June 30, 2025, up to the date of this announcement - No other significant events occurred for the Group after June 30, 2025, up to the date of this announcement[86] Corporate Governance and Other Information Corporate Governance Statement The Group is committed to achieving high standards of corporate governance and has fully complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules, except for the provision where the roles of Chairman and Chief Executive Officer are held by the same person - The Group is committed to achieving high standards of corporate governance to protect shareholders' interests and enhance corporate value and accountability[87] - The Company has fully complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules, except for the provision where the roles of Chairman and Chief Executive Officer are held by the same person[87] Chairman and Chief Executive Officer Roles Mr. Lin Dingqiang serves as both the Chairman and Chief Executive Officer, deviating from Code Provision C.2.1 of the Corporate Governance Code. The Board believes this arrangement is in the Group's best interest, as Mr. Lin has been responsible for daily operations and management since its inception, and sufficient checks and balances are in place - Mr. Lin Dingqiang serves as both the Chairman and Chief Executive Officer of the Company, which deviates from Code Provision C.2.1 of the Corporate Governance Code[88] - The Board believes that Mr. Lin Dingqiang holding both positions allows for effective management and business development, is in the Group's best interest, and sufficient checks and balances have been implemented[88] Standard Code for Securities Transactions by Directors The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as a guide for Directors' securities transactions. All Directors have confirmed compliance with all applicable code provisions during the period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as a guide for Directors' transactions in the Company's securities[89] - Following specific inquiries to all Directors, each has confirmed compliance with all applicable code provisions under the Standard Code during the current period[89] Purchase, Sale or Redemption of Listed Securities During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Group's listed securities. As of June 30, 2025, the Company held no treasury shares - During the current period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Group's listed securities[90] - As of June 30, 2025, the Company held no treasury shares[90] Audit Committee Review The Board has established an Audit Committee, comprising three independent non-executive Directors, with Mr. Zhong Chuangxin as Chairman. The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025 - The Audit Committee comprises three members: Mr. Zhong Chuangxin, Mr. Zhang Huaqiao, and Mr. Xie Rikang, all of whom are independent non-executive Directors[91] - The Chairman of the Audit Committee is Mr. Zhong Chuangxin, who possesses appropriate professional qualifications[91] - As of the date of this announcement, the Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[91] Interim Dividend Declaration The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025[92] Publication of Interim Results and Report This announcement has been published on the websites of The Stock Exchange of Hong Kong Limited and the Company. The Company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the aforementioned websites in due course - This announcement is published on the website of The Stock Exchange of Hong Kong Limited at www.hkexnews.hk and the Company's website at www.radiance.com.cn[93](index=93&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be dispatched to the Company's shareholders (upon request) and published on the aforementioned websites in due course[93]