亿达中国(03639) - 2025 - 中期业绩

Financial Highlights Summary of Financial Performance Yida China Holdings Limited reported a 5.0% revenue increase for the six months ended June 30, 2025, but gross profit fell 47.3%, net loss expanded to RMB 778 million, and no interim dividend was declared Key Financial Data Comparison for H1 2025 (RMB thousands) | Metric | H1 2025 | H1 2024 | Year-on-Year Change | Change Rate | Notes | | :--- | :--- | :--- | :--- | :--- | :--- | | Recognized Revenue | 700,410 | 667,065 | +33,345 | +5.0% | | | Gross Profit | 99,700 | 189,347 | -89,647 | -47.3% | | | Gross Profit Margin | 14.2% | 28.4% | -14.2% | -50.0% | | | Net Loss | (778,340) | (361,430) | -416,910 | +115.4% | Loss Widened | | Basic Loss Per Share | (30.01 cents) | (13.94 cents) | -16.07 cents | +115.3% | Loss Widened | | Interim Dividend | Not Declared | Not Declared | - | - | | Financial Information Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, revenue grew 5.0% to RMB 700 million, but increased cost of sales, fair value loss on investment properties, and higher finance costs led to a net loss of RMB 778 million Key Data from Condensed Consolidated Statement of Profit or Loss (RMB thousands) | Metric | H1 2025 | H1 2024 | Year-on-Year Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 700,408 | 667,065 | +33,343 | +5.0% | | Cost of Sales | (600,707) | (477,718) | -122,989 | +25.7% | | Gross Profit | 99,701 | 189,347 | -89,646 | -47.3% | | Fair Value (Loss)/Gain on Investment Properties | (123,899) | 233 | -124,132 | -53275.5% | | Finance Costs | (505,433) | (399,786) | -105,647 | +26.4% | | Loss for the Period | (778,342) | (361,429) | -416,913 | +115.4% | | Loss Attributable to Owners of the Company | (775,538) | (360,118) | -415,420 | +115.3% | | Basic Loss Per Share (RMB cents) | (30.01) | (13.94) | -16.07 | +115.3% | Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive loss was RMB 778 million, significantly widening from the prior period, primarily due to increased loss attributable to owners of the Company Key Data from Condensed Consolidated Statement of Comprehensive Income (RMB thousands) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss for the Period | (778,342) | (361,429) | | Other Comprehensive Loss That May Be Reclassified to Profit or Loss in Subsequent Periods | – | – | | Total Comprehensive Loss for the Period | (778,342) | (361,429) | | Attributable to Owners of the Company | (775,538) | (360,118) | | Non-controlling Interests | (2,804) | (1,311) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets slightly increased, but net current liabilities expanded to RMB 11.585 billion, indicating persistent liquidity pressure, with investment properties as the largest asset and borrowings as major liabilities Key Data from Condensed Consolidated Statement of Financial Position (RMB thousands) | Metric | As of June 30, 2025 | As of December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Assets | 33,883,030 | 33,879,986 | +3,044 | | Total Non-current Assets | 20,482,986 | 20,649,343 | -166,357 | | Total Current Assets | 13,400,044 | 13,230,643 | +169,401 | | Total Liabilities | 27,260,812 | 26,479,011 | +781,801 | | Total Non-current Liabilities | 2,275,475 | 2,308,088 | -32,613 | | Total Current Liabilities | 24,985,337 | 24,170,923 | +814,414 | | Total Equity | 6,622,218 | 7,400,975 | -778,757 | | Net Current Liabilities | (11,585,293) | (10,940,280) | -645,013 | Notes to the Condensed Consolidated Financial Statements Company and Group Information Yida China Holdings Limited, an investment holding company incorporated in the Cayman Islands, primarily operates in property development, investment, and business park management in mainland China, with China Minsheng Investment Corp., Ltd. as its ultimate holding company - The Company is an investment holding company, with principal activities including property development, investment, business park operation and management, construction, decoration, and landscaping, primarily concentrated in mainland China cities such as Dalian, Wuhan, Shenyang, Shanghai, Chongqing, Zhengzhou, Hefei, Changsha, and Chengdu[9] - The ultimate holding company of the Company is China Minsheng Investment Corp., Ltd[9] Basis of Preparation and Going Concern These financial statements, prepared under HKAS 34, highlight significant going concern uncertainties due to substantial current liabilities, overdue borrowings, and unfulfilled settlement agreements, despite the Board's plans to mitigate liquidity pressure Going Concern Basis As of June 30, 2025, the Group's net current liabilities reached RMB 11.585 billion, with RMB 11.552 billion in current borrowings and only RMB 186 million in cash, compounded by RMB 6.445 billion in overdue borrowings and a RMB 1.523 billion unfulfilled settlement with Andu Fang, potentially triggering immediate repayment of RMB 5.107 billion in other borrowings - As of June 30, 2025, the Group's current liabilities exceeded current assets by RMB 11,585,293,000[11] - As of June 30, 2025, borrowings with a total principal amount of RMB 6,444,986,000 remained unsettled[11] - The Group's outstanding balance payable to Andu Fang (including accrued interest) totaled RMB 1,522,726,000, and the overdue borrowings and Andu Fang event constituted defaults, potentially leading to immediate repayment demands for RMB 5,106,826,000 of other borrowings[12] Uncertainties Regarding Going Concern and Mitigation Measures To address going concern uncertainties, the Board has developed mitigation plans including debt renegotiation, new financing, accelerated property sales, cost control, and asset disposals, believing these will ensure sufficient working capital, though successful implementation remains highly uncertain - The Group plans to negotiate a final settlement agreement with Andu Fang to avoid a winding-up petition[13] - The Group is actively negotiating with all lenders for the renewal and deferral of overdue borrowings and striving to facilitate the renewal or extension of existing borrowings[13] - The Group will accelerate the pre-sale and sale of properties under development and completed properties, expedite the collection of sales proceeds, and seek opportunities to dispose of certain assets and investments to generate cash inflows[13] Accounting Policies The accounting policies for these interim financial statements are consistent with the 2024 annual consolidated financial statements, with no significant impact or retrospective adjustments, and no new standards are expected to materially affect financial position or operating results - The accounting policies adopted in the preparation of these unaudited condensed consolidated financial statements are consistent with those adopted in the annual consolidated financial statements of the Company for the year ended December 31, 2024, with no significant impact on the Group's financial statements and no retrospective adjustments required[15] Operating Segment Information The Group operates five reportable segments: property development, property investment, business park operation, construction, and others; property development incurred the largest loss in H1 2025, while property investment generated positive earnings, with all external revenue and most assets in mainland China - The Group has five reportable operating segments: property development, property investment, business park operation and management, construction, decoration and landscaping, and other segments[16][17][21] Segment Revenue and Results for H1 2025 (RMB thousands) | Segment | Sales to External Customers | Segment Results | | :--- | :--- | :--- | | Property Development | 212,200 | (218,963) | | Property Investment | 216,387 | 22,900 | | Business Park Operation and Management | 86,889 | (587) | | Construction, Decoration and Landscaping | 184,932 | (5,296) | | Others | – | (1,389) | | Total | 700,408 | (203,335) | - All of the Group's external customer revenue is derived from mainland China, and the majority of segment assets are located in mainland China[23] Revenue Breakdown The Group's H1 2025 total revenue was RMB 700 million, up 5.0%, driven by a 20.8% increase in property sales and a 25.3% rise in construction income, despite declines in rental and business park operation management service revenues Revenue Source Analysis (RMB thousands) | Revenue Source | H1 2025 | H1 2024 | Year-on-Year Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Sales of Properties | 212,200 | 175,623 | +36,577 | +20.8% | | Business Park Operation and Management Service Income | 86,889 | 100,080 | -13,191 | -13.2% | | Construction, Decoration and Landscaping Income | 184,932 | 147,564 | +37,368 | +25.3% | | Rental Income | 216,387 | 243,798 | -27,411 | -11.2% | | Total | 700,408 | 667,065 | +33,343 | +5.0% | Expenses by Nature The Group's H1 2025 total cost of sales, selling and marketing, and administrative expenses reached RMB 679 million, up 21.5%, primarily due to increased cost of properties sold, cost of providing other services, and direct operating expenses for investment properties Expenses by Nature (RMB thousands) | Expense Item | H1 2025 | H1 2024 | Year-on-Year Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Cost of Properties Sold | 257,497 | 171,599 | +85,898 | +50.1% | | Cost of Providing Other Services | 250,659 | 239,260 | +11,399 | +4.8% | | Direct Operating Expenses Arising from Investment Properties That Generate Rental Income | 92,551 | 66,859 | +25,692 | +38.4% | | Employee Benefit Expenses | 30,955 | 34,505 | -3,550 | -10.3% | | Total Cost of Sales, Selling and Marketing Expenses and Administrative Expenses | 679,379 | 559,336 | +120,043 | +21.5% | Other Losses, Net The Group's H1 2025 other losses, net, surged to RMB 102 million, primarily driven by RMB 120 million in late payment penalties, contrasting with foreign exchange losses in the prior period Other Losses, Net (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Foreign Exchange Gain/(Loss) | 14,307 | (19,590) | | Late Payment Penalties | (119,748) | – | | Others | 3,641 | (38,871) | | Total | (101,800) | (58,461) | Finance Costs The Group's H1 2025 net finance costs rose 26.4% to RMB 505 million, mainly due to higher interest on bank and other borrowings and a significant decrease in capitalized interest Finance Costs (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest on Bank and Other Borrowings | 556,028 | 529,166 | | Interest on Lease Liabilities | 386 | 537 | | Less: Capitalized Interest | (50,981) | (129,917) | | Total | 505,433 | 399,786 | Income Tax Expense The Group's H1 2025 income tax expense surged 332.4% to RMB 70.01 million, mainly due to a significant increase in land appreciation tax provision from property sales settlements in China Income Tax Expense Analysis (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | PRC Enterprise Income Tax | 9,982 | 7,418 | | PRC Land Appreciation Tax | 90,190 | (494) | | Deferred Income Tax (Current Period) | (30,162) | 9,267 | | Total Income Tax Expense for the Period | 70,010 | 16,191 | Interim Dividend The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Company has resolved not to declare any interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[32] Loss Per Share Attributable to Ordinary Equity Holders of the Company As of June 30, 2025, basic loss per share attributable to ordinary equity holders was RMB 30.01 cents, significantly widening from the prior period due to increased loss, with diluted loss per share being identical Loss Per Share (RMB cents) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Basic Loss Per Share | (30.01) | (13.94) | | Diluted Loss Per Share | (30.01) | (13.94) | - Loss for the period attributable to ordinary equity holders of the Company was RMB 775,538,000, compared to RMB 360,118,000 in the prior period[33] Investment Properties As of June 30, 2025, total investment properties were RMB 16.207 billion, slightly down from year-start due to a RMB 124 million fair value loss, with most properties pledged to banks as loan collateral Movement in Investment Properties (RMB thousands) | Item | As of January 1, 2025 | Additions | Disposals | Net Loss from Fair Value Adjustments | As of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Completed | 11,399,000 | – | (10,486) | (112,038) | 11,276,476 | | Under Construction | 4,941,772 | 152 | – | (11,861) | 4,930,063 | | Total | 16,340,772 | 152 | (10,486) | (123,899) | 16,206,539 | - As of June 30, 2025, certain investment properties of the Group with a value of RMB 14,130,464,000 have been pledged to banks as collateral for loans[34] Trade Receivables As of June 30, 2025, the Group's net trade receivables increased to RMB 375 million from a total of RMB 558 million, with a high proportion of receivables over two years old indicating collection risks Aging Analysis of Trade Receivables (RMB thousands) | Aging | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Within One Year | 276,059 | 205,416 | | One to Two Years | 71,559 | 54,475 | | Over Two Years | 210,005 | 242,923 | | Total Trade Receivables | 557,623 | 502,814 | | Less: Impairment Provision for Trade Receivables | (182,493) | (180,428) | | Net Trade Receivables | 375,130 | 322,386 | Cash and Cash Equivalents and Restricted Cash As of June 30, 2025, the Group's total cash and bank balances were RMB 441 million, with RMB 255 million restricted, leaving net cash and cash equivalents at RMB 186 million, primarily for property pre-sale proceeds and project deposits Cash and Cash Equivalents and Restricted Cash (RMB thousands) | Item | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Cash and Bank Balances | 440,872 | 373,802 | | Less: Restricted Cash | (254,919) | (217,548) | | Cash and Cash Equivalents | 185,953 | 156,254 | - Restricted cash primarily includes guarantee deposits from property pre-sale proceeds deposited into designated bank accounts (RMB 24,820,000) and deposits for payment of promissory notes, work injury compensation, and talent development (RMB 230,099,000)[39] Trade Payables As of June 30, 2025, total trade payables increased slightly to RMB 3.489 billion, with a significant rise in payables over one year, indicating accumulated payment pressure Aging Analysis of Trade Payables (RMB thousands) | Aging | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Within One Year | 1,721,783 | 2,231,487 | | Over One Year | 1,766,919 | 1,113,431 | | Total | 3,488,702 | 3,344,918 | Interest-Bearing Bank and Other Borrowings As of June 30, 2025, total interest-bearing borrowings were RMB 11.605 billion, with RMB 11.552 billion due within one year or on demand, indicating significant short-term repayment pressure, exacerbated by reclassification of non-current borrowings and immediate repayment demands for senior notes due to defaults Interest-Bearing Bank and Other Borrowings (RMB thousands) | Loan Type | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Bank Loans - Secured | 5,072,665 | 5,340,153 | | Other Borrowings - Secured | 4,263,965 | 4,119,741 | | Other Borrowings - Unsecured | 2,268,715 | 2,210,990 | | Total | 11,605,345 | 11,670,884 | Borrowings Maturity Analysis (RMB thousands) | Maturity | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Within One Year or On Demand | 11,551,811 | 11,618,346 | | Second Year | 53,534 | 52,538 | | Total | 11,605,345 | 11,670,884 | - Current interest-bearing borrowings include principal amounts of RMB 2,543,759,000 originally due after June 30, 2026, which were reclassified as current liabilities due to going concern uncertainties[41] - The senior notes have been subject to acceleration notices from holders due to non-payment of consent fees, alternative accrued interest, and accrued interest, requiring immediate repayment of principal, premium, and accrued unpaid interest[42] Business Review and Outlook Review of H1 2025 In H1 2025, the real estate market continued its deep adjustment, pressuring transaction volumes and developer performance; the Group faced significant debt risks but worked to maintain operational stability through quality operations and debt resolution with management and shareholder support - In H1 2025, the real estate market continued its contraction trend, with land auction transaction volumes and completed construction area consistently declining year-on-year, insufficient market demand, and frequent defaults among property developers[45] - The Group's debt risks became prominent during the period, and management is striving to address operational challenges through quality-focused operations and debt risk resolution[45] Outlook for H2 2025 H2 2025 is expected to see stronger macro policies driving real estate transformation; the Group will focus on core businesses, accelerate destocking, revitalize assets to improve its balance sheet, and strictly control expenses to meet operational and debt challenges - Macro policies are expected to further strengthen in H2 2025, driving the industry towards a new development model, but household income, demographic structure, and property expectations remain weak[46] - The Group will focus on core business drivers, accelerate the destocking of existing saleable projects, seize policy windows for land acquisition, promote the revitalization of existing assets to improve its asset-liability position, and strictly control expenses[46] Operation of Business Park Investment Properties The Group operates four business parks and a 50% interest in Wuhan Software New City, totaling 1.929 million sq.m. GFA; H1 2025 rental income fell 11.2% to RMB 216 million due to foreign client withdrawals, prompting active client expansion and innovative industrial services - The Group wholly owns four business parks: Dalian Software Park, Dalian Tech City, Dalian Tiandi, and Yida Information Software Park, and holds a 50% interest in Wuhan Software New City, with a total GFA of completed investment properties of approximately 1.929 million sq.m.[47] H1 2025 Business Park Investment Properties Operation Data | Metric | H1 2025 | | :--- | :--- | | Rental Income | RMB 216 million | | Year-on-year Decrease | 11.2% | | Primary Reason | Decreased occupancy rate, with approximately 28,000 sq.m. vacated by some foreign clients | - The Group actively expanded its client base, adding 11 new client enterprises and signing approximately 7,000 sq.m. of new area during the period, while enhancing client stickiness through industrial resource integration and development services[49][50] Property Sales In H1 2025, amidst a deeply adjusting real estate market, the Group focused on asset revitalization and debt control, achieving RMB 415 million in contract sales and RMB 212 million in property sales revenue (up 20.8%), though average selling price fell 39.7% due to product mix changes - The Group will continue to focus on core businesses such as 'asset revitalization, debt risk control, sales collection, and project construction' to ensure timely completion of key 'guaranteed delivery' projects[51] H1 2025 Property Sales Overview | Metric | Amount/Quantity | | :--- | :--- | | Contract Sales Amount | RMB 415 million | | Contract Sales Area | 34,100 sq.m. | | Contract Average Selling Price | RMB 12,148/sq.m. | | Sales Revenue | RMB 212 million (up 20.8% year-on-year) | | Average Selling Price (Revenue) | RMB 11,077/sq.m. (down 39.7% year-on-year) | - Dalian market transaction GFA decreased by 16% year-on-year, but transaction area in the central five districts increased by 14%, with average price rising by 7%; the Group's Dalian Hekouwan • Xinyuan project achieved contract sales of approximately RMB 114 million[53] Contract Sales Breakdown As of June 30, 2025, total contract sales were RMB 415 million, with Dalian contributing 82.2% and Hefei 8.2%, and residential properties accounting for 75.2% of the total H1 2025 Contract Sales Breakdown by City | City | Sales GFA (sq.m.) | Sales Amount (RMB ten thousands) | Average Selling Price (RMB/sq.m.) | Percentage of Total Amount | | :--- | :--- | :--- | :--- | :--- | | Dalian | 24,184 | 34,113 | 14,106 | 82.2% | | Hefei | 5,064 | 3,393 | 6,700 | 8.2% | | Chongqing | 2,407 | 2,371 | 9,850 | 5.7% | | Changsha | 927 | 951 | 10,262 | 2.3% | | Shenyang | 1,567 | 630 | 4,020 | 1.5% | | Wuhan | – | 26 | – | 0.1% | | Total | 34,149 | 41,484 | 12,148 | 100.0% | Business Park Operation Management The Group's H1 2025 business park operation management income was RMB 87 million, down 13.2% due to client business scale-downs, with the company focusing on developing smart park investment attraction and a national industrial network - The Group's total entrusted business park operation management area was approximately 219,000 sq.m., generating revenue of approximately RMB 87 million during the period[55] - Revenue decreased by 13.2% year-on-year, primarily due to clients scaling down their business operations during the period[55] Construction, Decoration and Landscaping Amidst a real estate downturn, this segment achieved RMB 185 million in revenue, up 25.3%, driven by increased external project output and supported by digital management and cost control, with an annual output value of RMB 180 million expected - The Group optimized its organizational structure, improved per capita efficiency, and strictly controlled costs through a digital management platform and material management technology[56] H1 2025 Construction, Decoration and Landscaping Business Revenue | Metric | Amount | | :--- | :--- | | Revenue | RMB 185 million | | Year-on-year Growth | 25.3% | | Primary Reason | Increased completed output value from external projects | | Expected Annual Output Value | RMB 180 million | Land Bank As of June 30, 2025, the Group's total land bank GFA was approximately 6.47 million sq.m., with Dalian comprising 77.1%, and the attributable interest of 5.96 million sq.m. primarily concentrated in business park projects - As of June 30, 2025, the Group's total land bank GFA was approximately 6.47 million sq.m., with Dalian accounting for 77.1%[57] - The Group's attributable interest in land bank GFA was approximately 5.96 million sq.m., of which 86.6% were business park projects[57][58] Land Bank Breakdown The Group's land bank, primarily business parks in Dalian, Wuhan, and Zhengzhou, includes 2.433 million sq.m. of completed leasable/saleable GFA, 999,800 sq.m. under development, and 3.0417 million sq.m. for future development Land Bank by City as of June 30, 2025 | City | Total Land Bank (sq.m.) | Percentage of Total | Attributable Interest in Total Land Bank (sq.m.) | Percentage of Attributable Total | | :--- | :--- | :--- | :--- | :--- | | Dalian | 4,992,525 | 77.1% | 4,992,525 | 83.8% | | Wuhan | 620,072 | 9.6% | 310,036 | 5.2% | | Zhengzhou | 297,535 | 4.6% | 297,535 | 5.0% | | Changsha | 253,879 | 3.9% | 129,478 | 2.2% | | Hefei | 136,284 | 2.1% | 88,585 | 1.5% | | Chongqing | 80,755 | 1.3% | 80,755 | 1.4% | | Chengdu | 65,848 | 1.0% | 45,063 | 0.7% | | Shenyang | 27,714 | 0.4% | 14,134 | 0.2% | | Total | 6,474,612 | 100.0% | 5,958,111 | 100.0% | Attributable Interest in Land Bank by Stage as of June 30, 2025 (sq.m.) | Stage | Business Park Subtotal | Mixed-use Residential Subtotal | Total | | :--- | :--- | :--- | :--- | | Completed Remaining Leasable/Saleable GFA | 2,055,394 | 377,719 | 2,433,113 | | GFA Under Development | 831,967 | 167,791 | 999,758 | | GFA Held for Future Development | 2,786,044 | 255,697 | 3,041,741 | Financial Review Revenue The Group's H1 2025 total revenue increased 5.0% to RMB 700 million, driven by a 20.8% rise in property sales and a 25.3% increase in construction income, despite declines in rental and business park operation management service revenues due to lower occupancy and client scale-downs Revenue Composition and Year-on-Year Change (RMB thousands) | Revenue Source | H1 2025 | Percentage of Total | H1 2024 | Percentage of Total | Year-on-Year Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | | Property Sales Revenue | 212,200 | 30.3% | 175,623 | 26.3% | +20.8% | | Rental Income | 216,387 | 30.9% | 243,798 | 36.5% | -11.2% | | Business Park Operation and Management Service Income | 86,889 | 12.4% | 100,080 | 15.0% | -13.2% | | Construction, Decoration and Landscaping Income | 184,932 | 26.4% | 147,564 | 22.2% | +25.3% | | Total | 700,408 | 100.0% | 667,065 | 100.0% | +5.0% | - The increase in property sales revenue was primarily due to increased project deliveries during the period; the decrease in rental income and business park operation management service income was mainly due to lower occupancy rates and clients scaling down their business operations; the increase in construction, decoration, and landscaping income was primarily due to increased completed output value from external projects[63][64][65][66] Cost of Sales The Group's H1 2025 cost of sales increased 25.7% to RMB 601 million, mainly due to higher costs from increased revenue and inventory impairment provisions - The Group's cost of sales for the period was approximately RMB 601 million, an increase of 25.7% compared to the prior period in 2024, primarily due to increased costs associated with higher revenue and inventory impairment provisions during the period[67] Gross Profit and Gross Profit Margin The Group's H1 2025 gross profit significantly decreased by 47.3% to RMB 99.7 million, with gross profit margin falling from 28.4% to 14.2%, primarily due to changes in product mix and lower corresponding gross profit Gross Profit and Gross Profit Margin Comparison | Metric | H1 2025 | H1 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Gross Profit | RMB 99.7 million | RMB 189 million | -47.3% | | Gross Profit Margin | 14.2% | 28.4% | -14.2 percentage points | - The decrease in gross profit margin was primarily due to a different product mix recognized during the period, and the corresponding gross profit for recognized products was lower compared to the prior period in 2024[68] Selling and Marketing Expenses The Group's H1 2025 selling and marketing expenses increased 19.5% to RMB 27.92 million, mainly due to higher property management fees and sales commissions - Selling and marketing expenses increased by 19.5% from approximately RMB 23.36 million in the prior period of 2024 to approximately RMB 27.92 million, primarily due to increased property management fees and sales commissions during the period[69] Administrative Expenses The Group's H1 2025 administrative expenses decreased 12.9% to RMB 50.75 million, primarily due to proactive measures to control office costs - Administrative expenses were approximately RMB 50.75 million, a decrease of 12.9% compared to the prior period in 2024, primarily due to proactive measures taken to control office costs during the period[70] Other Losses, Net The Group's H1 2025 other losses, net, increased 74.1% to RMB 102 million, primarily due to RMB 120 million in late payment penalties incurred - Other losses, net, were approximately RMB 101.8 million, an increase of 74.1% compared to the prior period in 2024, primarily due to late payment penalties incurred during the period[71] Fair Value (Loss)/Gain on Investment Properties The Group's H1 2025 fair value of investment properties shifted from a gain to a loss of RMB 124 million, mainly due to international client relocations and park vacancies driven by client cost-cutting initiatives - Fair value loss on investment properties was approximately RMB 123.9 million, compared to a gain of approximately RMB 0.23 million in the prior period of 2024, primarily due to business relocations of certain international clients and some clients demanding business transfers to lower-cost regions for cost reduction and efficiency improvement, leading to multiple enterprises vacating the parks during the period[72] Net Finance Costs The Group's H1 2025 net finance costs increased 26.4% to RMB 505 million, mainly due to higher interest expenses and lower capitalized interest - Net finance costs increased by 26.4% from approximately RMB 399.79 million in the prior period of 2024 to approximately RMB 505.43 million during the period, primarily due to increased interest expenses and reduced capitalized interest[73] Share of Profits/(Losses) of Joint Ventures and Associates The Group's H1 2025 share of profits from joint ventures and associates improved significantly to RMB 1.38 million from a prior period loss, mainly due to increased equity investment income from Wuhan Software New City Development Co., Ltd - Share of profits from joint ventures and associates was approximately RMB 1.38 million, an increase of approximately RMB 1.44 million compared to a loss of approximately RMB 0.06 million in the prior period of 2024, primarily due to increased equity investment income from Wuhan Software New City Development Co., Ltd[74] Income Tax Expense The Group's H1 2025 income tax expense surged 332.4% to RMB 70.01 million, mainly due to increased land appreciation tax provision from property sales settlements - Income tax expense increased by 332.4% from approximately RMB 16.19 million in the prior period of 2024 to approximately RMB 70.01 million during the period, primarily due to increased land appreciation tax provision resulting from land appreciation tax settlement for property sales during the period[75] Loss for the Period Considering the above factors, the Group's H1 2025 loss before tax expanded to RMB 708 million, net loss to RMB 778 million, and net loss attributable to shareholders to RMB 776 million, all significantly increasing from the prior period Loss for the Period Comparison (RMB thousands) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss Before Income Tax | (708,332) | (345,238) | | Net Loss | (778,342) | (361,429) | | Net Loss Attributable to Equity Holders | (775,538) | (360,118) | Liquidity, Financial and Capital Resources Cash Position As of June 30, 2025, the Group's total cash and bank balances were RMB 441 million, with RMB 255 million restricted, leaving net cash and cash equivalents at RMB 186 million, reflecting a tight cash position Cash and Bank Balances (RMB thousands) | Metric | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Cash and Bank Balances | 440,872 | 373,802 | | Restricted Cash | 254,919 | 217,550 | Indebtedness As of June 30, 2025, total bank and other borrowings were RMB 11.605 billion, with RMB 11.552 billion due within one year or on demand, indicating significant short-term repayment pressure, and most borrowings are fixed-rate Borrowing Type and Maturity (RMB thousands) | Loan Type | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Secured Bank Loans | 5,072,665 | 5,340,153 | | Secured Other Borrowings | 4,263,965 | 4,119,741 | | Unsecured Other Borrowings | 2,268,715 | 2,210,990 | | Total | 11,605,345 | 11,670,884 | | Repayable Within One Year or On Demand | 11,551,811 | 11,618,346 | | Repayable in Second Year | 53,534 | 52,538 | - Approximately RMB 11.32 billion of bank and other borrowings bear fixed annual interest rates ranging from 1.2% to 12.00%, while the remaining approximately RMB 285 million bear variable interest rates[78] Net Gearing Ratio As of June 30, 2025, the Group's net gearing ratio increased by 16 percentage points to 168.6% from 152.6% at year-end 2024, indicating further increased leverage - The Group's net gearing ratio was approximately 168.6% as of June 30, 2025, an increase of 16 percentage points compared to 152.6% as of December 31, 2024[79] Pledge of Assets The Group's bank and other borrowings are secured by properties under development, investment properties, land held for development, completed properties for sale, buildings, and corporate guarantees and equity pledges from subsidiaries - The Group's bank and other loans are secured by properties under development, investment properties, land held for development for sale, completed properties held for sale, buildings, corporate guarantees executed by certain subsidiaries, and certain equity pledges of the Company's subsidiaries[43] Foreign Exchange Rate Risk The Group, whose functional currency is RMB, faces foreign exchange risk from HKD and USD cash balances, and USD borrowings of RMB 1.842 billion and HKD borrowings of RMB 379 million, with management monitoring and considering hedging despite no current policy - The Group has cash and bank balances denominated in HKD and USD, as well as borrowings denominated in USD (RMB 1.842 billion) and HKD (RMB 379 million), exposing it to foreign currency risk[81] - The Group currently has no foreign currency hedging policy, but management monitors foreign exchange risk and considers hedging when necessary[81] Contingent Liabilities As of June 30, 2025, the Group had contingent liabilities of approximately RMB 132 million for customer mortgage loan guarantees and RMB 48.78 million for joint venture bank loan guarantees Contingent Liabilities (RMB thousands) | Item | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Guarantees for Customers' Mortgage Loans | 132,380 | 156,320 | | Guarantees for Bank Loans of Joint Ventures | 48,780 | 56,110 | Other Information Employees and Remuneration Policy As of June 30, 2025, the Group had 300 full-time employees, a decrease from year-end 2024, with remuneration based on performance, experience, and market levels, subject to regular review for competitiveness - As of June 30, 2025, the Group had 300 full-time employees (December 31, 2024: 348)[83] - The Group remunerates employees based on their performance, work experience, and prevailing market wage levels, and regularly reviews its remuneration policies and schemes[83][84] Interim Dividend The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare any interim dividend for the period[85] Compliance with Corporate Governance Code The Company complies with the Stock Exchange's Corporate Governance Code, though the Chairman and CEO roles are combined, deviating from C.2.1, an arrangement the Board deems in the Company's best interest and will review periodically - The Company has adopted and complied with the Corporate Governance Code set out in the Listing Rules, but the roles of Chairman and Chief Executive Officer are concurrently held by Mr. Jiang Xiuwen, deviating from Code Provision C.2.1[86] - The Board believes that Mr. Jiang Xiuwen concurrently holding both positions is in the best interests of the Company, ensuring more unified leadership and facilitating the implementation of business strategies[86] Standard Code for Securities Transactions by Directors The Company adopted the Standard Code for Securities Transactions by Directors as per Listing Rules Appendix C3, and all Directors confirmed compliance during the period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules, and all Directors have confirmed compliance with the Code during the period[87] Purchase, Sale or Redemption of the Company's Listed Securities During the period, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, and as of June 30, 2025, no treasury shares were held - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of June 30, 2025, the Company held no treasury shares[88] Major Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures During the period, the Company had no major investments or material acquisitions and disposals of subsidiaries, associates, and joint ventures - During the period, the Company had no major investments or material acquisitions and disposals of subsidiaries, associates, and joint ventures[89] Future Plans for Material Investments or Capital Assets During the period, the Group did not authorize any plans for material investments or additions to capital assets - During the period, the Group did not authorize any plans for material investments or additions to capital assets[90] Audit Committee The Audit Committee, comprising three independent non-executive directors with Mr. Chan Yee Chuen as Chairman, reviews financial reporting and internal controls; the Company, non-compliant with Listing Rules from January 1-12, 2025, has since re-complied from January 13 - The Audit Committee comprises three independent non-executive directors, with Mr. Chan Yee Chuen, Eugene serving as Chairman and possessing appropriate professional qualifications[91] - The Committee's primary responsibilities include reviewing and overseeing the Group's financial reporting process and internal control system, and monitoring the audit process[91] - The Company failed to comply with Listing Rules 3.10(1), 3.10(2), 3.10A, and 3.21 from January 1 to January 12, 2025, but has since re-complied from January 13[91] Review of Interim Results The Group's unaudited interim results for the six months ended June 30, 2025, have been reviewed and approved by the Audit Committee - The Group's unaudited interim results for the six months ended June 30, 2025, have been reviewed and approved by the Audit Committee[92] Litigation and Arbitration The Group faces significant legal and debt issues, including a RMB 1.523 billion outstanding balance from an unfulfilled settlement with Andu Fang, a subsidiary's bribery conviction, and accelerated repayment demands for senior notes due to non-payment, following a previous winding-up petition - The final arbitration award with Andu Fang involved a put option price of USD 108 million and accrued interest of USD 84 million; the settlement agreement stipulated a total payment obligation of USD 175 million, but as of the announcement date, the respondent had not fulfilled all payment obligations, with an outstanding balance payable to Andu Fang (including accrued interest) of RMB 1,522,726,000[93][94][95][103] - Dalian Service Outsourcing Base Development Co., Ltd., a wholly-owned subsidiary of the Company, was convicted of bribery due to the actions of a former employee[96] - The senior notes have been subject to acceleration notices from holders due to non-payment of consent fees, alternative accrued interest, and accrued interest, requiring immediate repayment of principal, premium, and accrued unpaid interest; a winding-up petition against the Company was previously filed but has been approved for withdrawal[99][100] Disclosure Pursuant to Rule 13.21 of the Listing Rules The Company disclosed multiple breaches of material loan agreements, including controlling shareholder liquidity issues, a former executive director's detention, overdue senior notes and other borrowings, and forced execution on subsidiary loans, potentially triggering immediate repayment of RMB 5.107 billion in other borrowings, while the Company seeks new financing - China Minsheng Investment Corp., Ltd., the Company's controlling shareholder, faces liquidity difficulties, leading to trigger events under certain loan agreements[102] - Mr. Chen Donghui, a former executive director, was detained, further leading to trigger events under certain loan agreements[103] - Since 2020, the Group has failed to repay certain borrowings by their scheduled repayment dates, with a total principal amount of RMB 6,444,986,000 remaining unsettled as of June 30, 2025[104] - Dalian Shengbei Development Co., Ltd., a subsidiary, failed to repay its loan on time, and the creditor, China CITIC Bank Dalian Branch, has applied for forced execution of approximately RMB 194 million in loan principal and related interest and penalties[103] - The aforementioned default events resulted in certain other borrowings (excluding overdue borrowings) totaling RMB 5,106,826,000 as of June 30, 2025, becoming immediately repayable if demanded by lenders[104] Specific Performance with Controlling Shareholder Under the settlement agreement with Andu Fang, the outstanding balance of the total payment obligation becomes due if the controlling shareholder, China Minsheng Investment Corp., Ltd., or its subsidiaries, fails to maintain 35% or more beneficial share ownership - According to the settlement agreement, if the controlling shareholder fails to maintain beneficial ownership of 35% or more of the shares, the outstanding balance of the total payment obligation, together with accrued interest and all other accrued or unpaid amounts, will become due on the thirtieth day following the change of control[105] Pledge of Shares by Controlling Shareholder Controlling shareholder Jiayou (International) Investment Co., Ltd. pledged 517 million shares (19.99% of total issued shares) to Andu Fang as collateral; in May 2022, receivers were appointed, and Jiayou lost the power to deal with or exercise rights related to these shares - Controlling shareholder Jiayou (International) Investment Co., Ltd. has pledged its 516,764,000 shares (approximately 19.99% of the Company's total issued shares) to Andu Fang as collateral for obligations under the settlement agreement[106] - In May 2022, joint and several receivers were appointed, and Jiayou no longer possesses the power to deal with or exercise any rights attached to or associated with the charged shares[106] Publication of Interim Results and Interim Report on HKEX and Company Website This interim results announcement is published on the HKEX and Company websites, and the interim report for the six months ended June 30, 2025, will be dispatched to shareholders and available on these sites - This interim results announcement is published on the HKEX website www.hkexnews.hk and the Company's website www.yidachina.com[107](index=107&type=chunk) Board of Directors As of the announcement date, the Board comprises executive directors Mr. Jiang Xiuwen (Chairman and CEO) and Mr. Yuan Wensheng, non-executive directors Mr. Lu Jianhua, Mr. Wang Gang, and Ms. Jiang Qian, and independent non-executive directors Mr. Guo Shaomu, Mr. Chan Yee Chuen, Eugene, and Mr. Tang Yongzhi - The executive directors are Mr. Jiang Xiuwen (Chairman and Chief Executive Officer) and Mr. Yuan Wensheng; the non-executive directors are Mr. Lu Jianhua, Mr. Wang Gang, and Ms. Jiang Qian; and the independent non-executive directors are Mr. Guo Shaomu, Mr. Chan Yee Chuen, Eugene, and Mr. Tang Yongzhi[109]