时代中国控股(01233) - 2025 - 中期业绩

Interim Results Summary The company reported a significant decline in contracted sales and revenue for the six months ended June 30, 2025, leading to an expanded loss for the period Interim Results Summary for the Six Months Ended June 30, 2025 | Indicator | 2025 Period (RMB) | 2024 Period (RMB) (Estimated) | Change | Change Percentage | Original Chunk Num | | :--- | :--- | :--- | :--- | :--- | :--- | | Contracted Sales | RMB2.87 billion | RMB4.289 billion | Decreased by RMB1.419 billion | -33.1% | | | Average Contracted Selling Price | RMB12,643/sq.m. | Approximately flat | - | - | | | Revenue | RMB2,267.9 million | RMB6,091.0 million | Decreased by RMB3,823.1 million | -62.8% | | | Loss for the Period | RMB3,417.9 million | RMB2,831.4 million | Increased by RMB586.5 million | +20.7% | | | Loss Attributable to Owners of the Company | RMB3,436.1 million | RMB3,017.9 million | Increased by RMB418.2 million | +13.9% | | | Cost Management | Effectively managed | - | - | - | | Condensed Consolidated Interim Financial Statements This section presents the company's financial performance and position, highlighting significant declines in revenue and expanded losses, alongside ongoing liquidity challenges Condensed Consolidated Interim Statement of Profit or Loss For the six months ended June 30, 2025, the company's revenue significantly decreased by 62.8% to RMB2,267.9 million, leading to a 66.5% reduction in gross profit, with loss for the period expanding by 20.7% to RMB3,417.9 million, primarily due to a substantial increase in finance costs and sustained high other expenses Key Data from Condensed Consolidated Interim Statement of Profit or Loss | Indicator | For the Six Months Ended June 30, 2025 (RMB '000) | For the Six Months Ended June 30, 2024 (RMB '000) | Change | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Revenue | 2,267,935 | 6,091,008 | (3,823,073) | -62.8% | | Cost of Sales | (2,087,843) | (5,553,721) | 3,465,878 | -62.4% | | Gross Profit | 180,092 | 537,287 | (357,195) | -66.5% | | Other Income and Gains | 195,033 | 117,527 | 77,506 | +65.9% | | Selling and Marketing Expenses | (63,292) | (131,754) | 68,462 | -52.0% | | Administrative Expenses | (209,108) | (220,771) | 11,663 | -5.3% | | Impairment and Write-off Losses on Financial Assets | (163,221) | (360,027) | 196,806 | -54.7% | | Other Expenses | (2,075,314) | (1,962,307) | (113,007) | +5.8% | | Finance Costs | (1,155,328) | (581,160) | (574,168) | +98.8% | | Share of Loss of Joint Ventures and Associates | (23,972) | (58,093) | 34,121 | -58.7% | | Loss Before Tax | (3,315,110) | (2,659,298) | (655,812) | +24.7% | | Income Tax Expense | (102,752) | (172,064) | 69,312 | -40.3% | | Loss for the Period | (3,417,862) | (2,831,362) | (586,500) | +20.7% | | Loss Attributable to Owners of the Company | (3,436,128) | (3,017,883) | (418,245) | +13.9% | | Non-controlling Interests | 18,266 | 186,521 | (168,255) | -90.2% | Condensed Consolidated Interim Statement of Comprehensive Income For the six months ended June 30, 2025, the company recorded a total comprehensive loss of RMB3,122.5 million, an increase from the prior year, despite a positive shift in exchange differences on translation of overseas operations Key Data from Condensed Consolidated Interim Statement of Comprehensive Income | Indicator | For the Six Months Ended June 30, 2025 (RMB '000) | For the Six Months Ended June 30, 2024 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Loss for the Period | (3,417,862) | (2,831,362) | (586,500) | | Exchange Differences on Translation of Overseas Operations | 282,689 | (152,827) | 435,516 | | Gain on Revaluation of Properties | 10,758 | 31,339 | (20,581) | | Total Comprehensive Loss for the Period | (3,122,457) | (2,946,024) | (176,433) | | Total Comprehensive Loss Attributable to Owners of the Company | (3,140,723) | (3,132,545) | (8,178) | - Basic and diluted loss per share increased from RMB144 cents in the prior year to RMB163 cents for the six months ended June 30, 2025[4] Condensed Consolidated Interim Statement of Financial Position As of June 30, 2025, the company's total assets and liabilities both decreased, while net current liabilities further expanded, indicating continued liquidity pressure, and total equity deficit widened from RMB7,867.5 million to RMB11,644.8 million Key Data from Condensed Consolidated Interim Statement of Financial Position | Indicator | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 18,437,965 | 19,305,728 | (867,763) | | Total Current Assets | 63,154,669 | 69,239,242 | (6,084,573) | | Total Assets | 81,592,634 | 88,544,970 | (6,952,336) | | Total Current Liabilities | 80,184,993 | 77,241,333 | 2,943,660 | | Total Non-current Liabilities | 13,052,432 | 19,171,128 | (6,118,696) | | Total Liabilities | 93,237,425 | 96,412,461 | (3,175,036) | | Net Current Liabilities | (17,030,324) | (8,002,091) | (9,028,233) | | Total Equity (Deficit) | (11,644,791) | (7,867,491) | (3,777,300) | - Property inventories (current assets) decreased from RMB44,663.7 million to RMB41,962.1 million, reflecting reduced sales deliveries[5] - Interest-bearing bank and other borrowings and interest payable (current liabilities) increased from RMB33,336.4 million to RMB38,549.8 million, indicating increased short-term debt pressure[6] Notes to the Financial Statements This section provides detailed disclosures on the company's operations, accounting policies, and financial risks, including significant going concern uncertainties and debt restructuring efforts Company Information Times China Holdings Limited, incorporated in the Cayman Islands, primarily engages in property development, urban renewal, and property leasing in China, with its ultimate holding company being Joyful Ascent Limited, wholly owned by founder Mr. Shum Chiu Hung - The company was incorporated in the Cayman Islands on November 14, 2007, and changed its name to Times China Holdings Limited on January 15, 2018[7] - Its principal activities are property development, urban renewal, and property leasing in China[7] - The ultimate holding company is Joyful Ascent Limited, wholly owned by Mr. Shum Chiu Hung, the founder of the Company[8] Basis of Preparation The condensed consolidated interim financial information is prepared in accordance with the HKEX Listing Rules and IAS 34, despite significant going concern uncertainties including substantial losses, net current liabilities, and loan defaults, which management addresses through a debt management plan and a court-approved restructuring scheme - The interim financial information is prepared in accordance with Appendix D2 to the Listing Rules of the Stock Exchange of Hong Kong Limited and International Accounting Standard 34[10] - The company reported a loss attributable to owners of RMB3,436.1 million and net current liabilities of RMB17,030.3 million, indicating significant going concern uncertainties[11] - Total principal amount of defaulted borrowings is RMB27,575.6 million, with interest totaling RMB4,166.0 million, triggering cross-defaults of RMB225.3 million[11] - Management has formulated an overall offshore debt management plan, and the scheme of arrangement was approved by the High Court on July 30, 2025, with the effective date being the same day[12][13] - The ability to continue as a going concern depends on the successful completion of offshore debt restructuring, renewal/extension of borrowings, obtaining new loans, accelerating property sales and cash collection, controlling costs, and disposing of assets[15][16][21] Changes in Accounting Policies and Disclosures The adoption of the revised IAS 21 "Lack of Exchangeability" during this period had no material financial impact on the condensed consolidated interim financial information - The revised International Accounting Standard 21 "Lack of Exchangeability" has been adopted[18][19] - This change had no material financial impact on the condensed consolidated interim financial information[19] Operating Segment Information The Group's operating segments include property development, urban renewal, and property leasing, with all property development projects located in mainland China; property development remains the primary revenue source, but its segment results and assets significantly declined, while urban renewal business contributed no revenue - The Group's operating segments include property development, urban renewal business, and property leasing, with all property development projects located in mainland China[20][22] Segment Revenue and Results (For the Six Months Ended June 30) | Segment | 2025 Revenue (RMB '000) | 2025 Results (RMB '000) | 2024 Revenue (RMB '000) | 2024 Results (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Property Development | 1,958,839 | (1,517,759) | 5,752,900 | 59,042 | | Urban Renewal Business | – | (59,248) | – | (27,188) | | Property Leasing | 309,096 | (229,749) | 338,108 | 496 | | Total | 2,267,935 | (1,806,756) | 6,091,008 | 32,350 | Segment Assets and Liabilities (As of June 30) | Segment | 2025 Assets (RMB '000) | 2025 Liabilities (RMB '000) | 2024 Assets (RMB '000) | 2024 Liabilities (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Property Development | 53,086,132 | 17,471,770 | 57,578,671 | 20,335,228 | | Urban Renewal Business | 5,776,406 | 2,156,943 | 6,906,483 | 2,134,571 | | Property Leasing | 8,236,378 | 3,840,226 | 8,599,656 | 3,855,655 | | Total | 67,098,916 | 23,468,939 | 73,084,810 | 26,325,454 | Revenue, Other Income and Gains Total revenue for the period significantly decreased by 62.8% to RMB2,267.9 million, primarily due to reduced property sales, while other income and gains substantially increased due to net gains from debt restructuring Revenue Source Analysis (For the Six Months Ended June 30) | Revenue Source | 2025 (RMB '000) | 2024 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Revenue from Contracts with Customers (Sale of Properties) | 1,958,839 | 5,752,900 | (3,794,061) | | Leasing of Self-owned Properties | 56,550 | 63,345 | (6,795) | | Sub-leasing of Leased Properties | 252,546 | 274,763 | (22,217) | | Total Revenue | 2,267,935 | 6,091,008 | (3,823,073) | Other Income and Gains Analysis (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Bank Interest Income | 2,017 | 11,467 | (9,450) | | Net Gain on Debt Restructuring | 143,139 | - | 143,139 | | Gain on Disposal of Land Held for Development | - | 40,794 | (40,794) | | Net Exchange Gain | - | 24,400 | (24,400) | | Total Other Income and Gains | 195,033 | 117,527 | 77,506 | Loss Before Tax Loss before tax for the period was RMB3,315.1 million, a 24.7% increase from the prior year, primarily influenced by cost of properties sold, exchange losses, and write-down of property inventories Major Components of Loss Before Tax (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Cost of Properties Sold | 5,385,158 | 1,890,999 | 3,494,159 | | Net Exchange Loss/(Gain) | 331,234 | (24,400) | 355,634 | | Write-down of Property Inventories to Net Realizable Value | 154,520 | 1,506,112 | (1,351,592) | | Impairment Loss on Interests in Joint Ventures | 1,002,547 | - | 1,002,547 | | Staff Welfare Expenses (Net of Capitalization) | 64,790 | 87,956 | (23,166) | Finance Costs Finance costs for the period significantly increased by 98.8% to RMB1,155.3 million, primarily due to a substantial decrease in capitalized interest expenses Components of Finance Costs (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Interest Expense | 1,635,218 | 1,764,466 | (129,248) | | Interest on Lease Liabilities | 124,923 | 125,473 | (550) | | Less: Capitalized Interest | (604,813) | (1,308,779) | 703,966 | | Total Finance Costs | 1,155,328 | 581,160 | 574,168 | Income Tax Expense Income tax expense decreased by 40.3% to RMB102.8 million for the period, mainly due to an increased loss before tax, with China corporate income tax and land appreciation tax being the primary tax components - Entities registered in the Cayman Islands and British Virgin Islands are not subject to income tax, and no Hong Kong profits tax provision was made due to the absence of assessable profits[32][33] - China corporate income tax is calculated at applicable rates, with some subsidiaries enjoying a preferential rate of 15%[34] - China land appreciation tax is levied at progressive rates ranging from 30% to 60%[35] Components of Income Tax Expense (For the Six Months Ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Corporate Income Tax | 61,314 | 49,777 | 11,537 | | Land Appreciation Tax | 7,309 | 38,119 | (30,810) | | Deferred Tax | 34,129 | 84,168 | (50,039) | | Total Tax Expense for the Period | 102,752 | 172,064 | (69,312) | Dividends The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[37] Loss Per Share Attributable to Ordinary Equity Holders of the Company For the six months ended June 30, 2025, basic and diluted loss per share increased to RMB163 cents, up from RMB144 cents in the prior year, reflecting the company's expanded loss Loss Per Share Data (For the Six Months Ended June 30) | Indicator | 2025 (RMB '000/cents) | 2024 (RMB '000/cents) | | :--- | :--- | :--- | | Loss Attributable to Ordinary Equity Holders of the Company | (3,436,128) | (3,017,883) | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 2,101,816 | 2,101,816 | | Basic and Diluted Loss Per Share (RMB cents) | (163) | (144) | - There were no potentially dilutive ordinary shares in issue for both the current and prior periods[38] Trade Receivables As of June 30, 2025, total trade receivables amounted to RMB652.3 million, an 18.3% decrease from the end of 2024, with the largest portion due within six months - Trade receivables primarily arise from the sale of completed properties, urban renewal business, and property leasing[40] Ageing Analysis of Trade Receivables (RMB '000) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 6 months | 379,692 | 503,193 | | 7 to 12 months | 104,828 | 22,692 | | After 1 year | 167,734 | 272,524 | | Total | 652,254 | 798,409 | Trade Payables and Bills As of June 30, 2025, total trade payables and bills amounted to RMB4,438.6 million, a 19.9% decrease from the end of 2024, with over half of the amount due after one year Ageing Analysis of Trade Payables and Bills (RMB '000) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year | 1,471,498 | 2,647,135 | | After 1 year | 2,967,100 | 2,894,382 | | Total | 4,438,598 | 5,541,517 | - Trade payables and bills are unsecured, non-interest-bearing, and repayable within normal operating cycles or on demand[42] Management Discussion and Analysis This section provides an overview of the company's operational and financial performance, market conditions, and future strategies, emphasizing challenges and mitigation efforts Performance Overview For the six months ended June 30, 2025, the Group's revenue decreased by 62.8% year-on-year to RMB2,267.9 million, with loss for the period expanding by 20.7% to RMB3,417.9 million, and loss attributable to owners of the Company increasing by RMB418.2 million, resulting in a basic and diluted loss per share of RMB163 cents Overview of Core Financial Indicators (For the Six Months Ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 2,267.9 | 6,091.0 | (3,823.1) | | Loss for the Period | 3,417.9 | 2,831.4 | 586.5 | | Core Net Loss | 3,415.9 | 2,827.9 | 588.0 | | Loss Attributable to Owners of the Company | 3,436.1 | 3,017.9 | 418.2 | | Basic and Diluted Loss Per Share (RMB cents) | 163 | 144 | 19 | - Core net loss (non-IFRS measure) excludes the impact of fair value losses on investment properties and related deferred tax, providing a better assessment of operating performance[44] Business Operations The Group's business primarily focuses on property development in the Pearl River Delta region, with contracted sales of RMB2.87 billion for the six months ended June 30, 2025, representing a 33.1% year-on-year decrease, while urban renewal business contributed no revenue and property leasing revenue decreased by 8.6% year-on-year Property Development The Group has 129 major projects in the Pearl River Delta region, achieving contracted sales of RMB2.87 billion for the six months ended June 30, 2025, with a total GFA of approximately 227,000 sq.m. and an average contracted selling price of RMB12,643 per sq.m. - The Group has 129 major projects in key cities in Guangdong Province, Changsha (Hunan), Chengdu (Sichuan), Hangzhou (Zhejiang), Wuhan (Hubei), and Nanjing (Jiangsu)[45] Contracted Sales by Region (For the Six Months Ended June 30, 2025) | Region | Sales Area (sq.m.) | Sales Amount (RMB million) | Average Selling Price (RMB/sq.m.) | | :--- | :--- | :--- | :--- | | Guangzhou | 59,900 | 1,132 | 18,898 | | Foshan | 30,100 | 512 | 17,014 | | Dongguan | 29,100 | 373 | 12,818 | | Qingyuan | 35,800 | 208 | 5,817 | | Huizhou | 22,600 | 197 | 8,697 | | Hangzhou Region | 10,900 | 134 | 12,330 | | Jiangmen | 18,100 | 85 | 4,713 | | Changsha | 7,400 | 82 | 11,063 | | Nanjing | 2,800 | 70 | 25,120 | | Zhuhai | 2,400 | 48 | 19,839 | | Zhaoqing | 1,800 | 20 | 11,104 | | Zhongshan | 5,200 | 5 | 915 | | Chengdu | 600 | 3 | 5,226 | | Shanwei | 200 | 1 | 7,241 | | Heyuan | 100 | 0 | 1,099 | | Total | 227,000 | 2,870 | 12,643 | Urban Renewal Business The Group's urban renewal business contributed no revenue during this period - For the six months ended June 30, 2025, the urban renewal business generated no revenue[47] Property Leasing and Sub-leasing For the six months ended June 30, 2025, the Group's leasing revenue amounted to RMB309.1 million, accounting for 13.6% of total revenue - The Group owns leasable properties such as Times Property Center, Chengdu Times Center, and Times E-PARK (Tianhe) Phase II, with a total GFA of approximately 141,643 sq.m. and 221 parking spaces[48] - Guangzhou Times Commercial Management Co., Ltd. and its subsidiaries have approximately 820,536 sq.m. of GFA for sub-leasing[48] Land Bank and Project Portfolio As of June 30, 2025, the Group's total land bank was approximately 9.8 million sq.m., primarily concentrated in Guangdong cities like Guangzhou, Qingyuan, and Foshan, sufficient for two to three years of future development, with no land acquisitions made during the period Land Bank The Group's total land bank is approximately 9.8 million sq.m., primarily distributed in cities such as Guangzhou, Qingyuan, Foshan, Jiangmen, and Huizhou Land Bank by Region (As of June 30, 2025) | Region | Total Land Bank (sq.m.) | Percentage (%) | | :--- | :--- | :--- | | Guangzhou | 2,162,817 | 22.0 | | Qingyuan | 2,143,035 | 21.8 | | Foshan | 1,293,670 | 13.2 | | Jiangmen | 1,069,579 | 10.9 | | Huizhou | 862,542 | 8.8 | | Zhaoqing | 663,027 | 6.8 | | Changsha | 435,212 | 4.4 | | Dongguan | 415,906 | 4.2 | | Wuhan | 284,027 | 2.9 | | Hangzhou Region | 125,060 | 1.3 | | Zhuhai | 118,782 | 1.2 | | Zhongshan | 79,728 | 0.8 | | Chengdu | 57,463 | 0.6 | | Nanjing | 50,117 | 0.5 | | Shanwei | 32,965 | 0.3 | | Heyuan | 23,314 | 0.2 | | Shantou | 7,120 | 0.1 | | Total | 9,824,364 | 100.0 | - The land bank is sufficient to meet development needs for the next two to three years[49] Property Development Project Portfolio The Group holds a substantial portfolio of completed and under-development/future-development residential and commercial projects across various cities, including Guangzhou, Foshan, and Changsha, with a total site area exceeding 10.4 million sq.m. - As of June 30, 2025, the total site area was 10,496,093 sq.m.[55] - Completed GFA for sale was 899,533 sq.m., and GFA under development/future development for sale was 4,775,709 sq.m.[55] - Project types primarily include residential and commercial, with ownership interests ranging from 33% to 100%[50][51][52][53][54][55] Land Acquisitions The Group did not acquire any land parcels during the six months ended June 30, 2025 - No land acquisitions were made during this period[57] Market Review and Outlook In the first half of 2025, China's real estate market saw continued transaction volume decline, though residential land transactions increased in first and second-tier cities, with most restrictive policies lifted and a new development model promoted; the market is expected to remain in an adjustment period in the second half, with further declines in transaction volume and prices, prompting the company to focus on active sales, cash collection, and debt management Market Review In the first half of 2025, national new commercial housing sales area decreased by 3.5% year-on-year, and sales value decreased by 5.5% year-on-year, with residential land market showing structural divergence as first and second-tier cities saw transaction GFA growth of 20.9% and 18.3% respectively, while third-tier cities declined by 14.3% - In the first half of 2025, national new commercial housing sales area was 458.51 million sq.m., a year-on-year decrease of 3.5%; sales value was RMB4,424.1 billion, a year-on-year decrease of 5.5%[59] - Land transfer fees for residential land in 300 cities nationwide amounted to RMB0.86 trillion, a year-on-year increase of 27.5%, but transaction GFA for residential land was 170 million sq.m., a year-on-year decrease of 5.5%[59] - Transaction GFA for residential land in first and second-tier cities increased by 20.9% and 18.3% respectively, while third-tier cities saw a 14.3% decrease[59] - Restrictive policies have been largely lifted, except for a few cities like Beijing, Shanghai, and Shenzhen, with accelerated efforts to build a "new real estate development model"[60] Outlook The real estate market is expected to remain in an adjustment period in the second half of 2025, with policy focus on implementing existing measures; resident confidence and purchasing power recovery will take time, leading to an anticipated widening year-on-year decline in transaction volume and prices for the full year, while the Group will actively pursue sales, strengthen cash collection, advance urban renewal project investment recovery, proactively manage debt, and enhance project quality - The real estate market is expected to remain in an adjustment period in the second half, with policy focus on implementing housing voucher systems and acquiring existing commercial housing for affordable housing[61] - The "good housing" policy will support the residential land market in quality cities but also bring product differentiation and price pressure[61] - The recovery of resident confidence and purchasing power requires stable employment and income expectations, posing significant challenges to market demand recovery[61] - Transaction volume is expected to see a wider year-on-year decline in the second half, with full-year transaction volume and prices still decreasing year-on-year[61] - The Group will closely align with policy directions, actively pursue sales, strengthen cash collection, promote investment recovery in urban renewal projects, proactively manage debt, optimize debt structure, improve asset quality, repair its balance sheet, and consistently enhance project quality and services[61] Financial Performance Analysis Revenue for the period significantly decreased by 62.8%, primarily due to reduced property sales deliveries, leading to a 66.5% decline in gross profit, though gross margin remained largely stable; finance costs substantially increased due to lower capitalized interest, further expanding loss for the period and loss attributable to owners of the Company Revenue The Group's revenue decreased by 62.8% from RMB6,091.0 million in the prior year to RMB2,267.9 million in the current period, mainly due to a reduction in property sales deliveries - Property development and property leasing and sub-leasing accounted for approximately 86.4% and 13.6% of revenue, respectively[62] Cost of Sales Cost of sales decreased by 62.4% from RMB5,553.7 million in the prior year to RMB2,087.8 million in the current period, primarily attributable to reduced property sales deliveries Change in Cost of Sales | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change Percentage | | :--- | :--- | :--- | :--- | | Cost of Sales | 2,087.8 | 5,553.7 | -62.4% | Gross Profit Gross profit decreased by 66.5% from RMB537.3 million in the prior year to RMB180.1 million in the current period, with the gross profit margin at 7.9%, largely stable compared to 8.8% in the prior year Change in Gross Profit and Gross Profit Margin | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change Percentage | | :--- | :--- | :--- | :--- | | Gross Profit | 180.1 | 537.3 | -66.5% | | Gross Profit Margin | 7.9% | 8.8% | -0.9 percentage points | Other Income and Gains Other income and gains increased from RMB117.5 million in the prior year to RMB195.0 million in the current period, primarily due to the recognition of gains from interest expense waivers on certain liabilities Change in Other Income and Gains | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change Percentage | | :--- | :--- | :--- | :--- | | Other Income and Gains | 195.0 | 117.5 | +65.9% | Selling and Marketing Expenses Selling and marketing expenses decreased by 52.0% from RMB131.8 million in the prior year to RMB63.3 million in the current period, mainly due to strict control over marketing promotion costs Change in Selling and Marketing Expenses | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change Percentage | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 63.3 | 131.8 | -52.0% | Administrative Expenses Administrative expenses decreased by 5.3% from RMB220.8 million in the prior year to RMB209.1 million in the current period, primarily due to strict control over administrative expenses Change in Administrative Expenses | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change Percentage | | :--- | :--- | :--- | :--- | | Administrative Expenses | 209.1 | 220.8 | -5.3% | Impairment and Write-off Losses on Financial Assets Impairment and write-off losses on financial assets decreased by 54.7% from RMB360.0 million in the prior year to RMB163.2 million in the current period, mainly due to the absence of impairment losses on amounts due from joint ventures during the period Change in Impairment and Write-off Losses on Financial Assets | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change Percentage | | :--- | :--- | :--- | :--- | | Impairment and Write-off Losses on Financial Assets | 163.2 | 360.0 | -54.7% | Other Expenses Other expenses for the current period were RMB2,075.3 million, largely comparable to RMB1,962.3 million in the prior year Change in Other Expenses | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change Percentage | | :--- | :--- | :--- | :--- | | Other Expenses | 2,075.3 | 1,962.3 | +5.8% | Finance Costs Finance costs increased by 98.8% from RMB581.2 million in the prior year to RMB1,155.3 million in the current period, primarily due to a decrease in capitalized interest expenses for projects Change in Finance Costs | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change Percentage | | :--- | :--- | :--- | :--- | | Finance Costs | 1,155.3 | 581.2 | +98.8% | Loss for the Period Loss for the period increased by 20.7% from RMB2,831.4 million in the prior year to RMB3,417.9 million in the current period, mainly due to a decrease in gross profit Change in Loss for the Period | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change Percentage | | :--- | :--- | :--- | :--- | | Loss for the Period | 3,417.9 | 2,831.4 | +20.7% | | Basic and Diluted Loss Per Share (RMB cents) | 163 | 144 | +13.2% | Loss Attributable to Owners of the Company Loss attributable to owners of the Company increased by 13.9% from RMB3,017.9 million in the prior year to RMB3,436.1 million in the current period, with core net loss also increasing by RMB419.7 million Change in Loss Attributable to Owners of the Company | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change Percentage | | :--- | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | 3,436.1 | 3,017.9 | +13.9% | | Core Net Loss Attributable to Owners of the Company | 3,434.1 | 3,014.4 | +13.9% | Liquidity, Financial and Capital Resources This section details the company's cash position, borrowings, pledged assets, debt securities, contingent liabilities, and foreign exchange risk management Cash Position As of June 30, 2025, the Group's cash and bank balances were approximately RMB1,733.1 million, a 22.1% decrease from the end of 2024, with restricted bank deposits amounting to RMB1,121.2 million Change in Cash and Bank Balances | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change Percentage | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 1,733.1 | 2,224.3 | -22.1% | | Restricted Bank Deposits | 1,121.2 | 1,383.8 | -19.0% | - Portions of proceeds from pre-sales and bank loans are deposited into designated bank accounts, subject to relevant laws, regulations, and loan agreements[77] Borrowings and Pledged Assets As of June 30, 2025, the Group's interest-bearing payables were RMB4,593.0 million, and total interest-bearing bank and other borrowings were approximately RMB45,189.3 million, of which RMB37,125.8 million are due within one year; certain borrowings are secured by property inventories, investment properties, trade receivables, property, plant and equipment, and equity interests in subsidiaries Overview of Borrowings and Pledged Assets | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Interest-bearing Payables | 4,593.0 | 5,032.8 | | Total Interest-bearing Bank and Other Borrowings | 45,189.3 | - | | Borrowings Due Within One Year | 37,125.8 | 32,292.4 | | Borrowings Due in Two to Five Years | 8,034.8 | - | | Borrowings Due After Five Years | 28.7 | - | - Pledged assets include property inventories (RMB1,189.9 million), equity interests in certain subsidiaries (RMB4,211.7 million), investment properties (RMB629.1 million), trade receivables (RMB141.9 million), property inventories (RMB11,325.7 million), and property, plant and equipment (RMB310.4 million)[78] Details of Debt Securities Issued The Group has issued various USD senior notes and RMB domestic corporate bonds with coupon rates ranging from 5.00% to 6.80% and maturity dates from 2023 to 2028; most domestic corporate bonds have had their maturity dates adjusted and small-amount redemption mechanisms implemented through bondholder meetings to address liquidity pressure - Various USD senior notes have been issued, including 5.00% USD senior notes due 2028, 5.55% USD senior notes due 2024, 5.75% USD senior notes due 2027, 6.20% USD senior notes due 2026, 6.75% USD senior notes due 2025, 6.75% USD senior notes due 2023, and 6.60% USD senior notes due 2023[79][84] - Various RMB domestic corporate bonds have been issued, including 5.94% RMB privately placed domestic corporate bonds due 2026, 5.68% RMB privately placed domestic corporate bonds due 2026, 5.94% RMB publicly issued domestic corporate bonds due 2027, 5.24% RMB publicly issued domestic corporate bonds due 2027, 5.10% RMB publicly issued domestic corporate bonds due 2027, 6.30% RMB publicly issued domestic corporate bonds due 2027, 5.00% RMB publicly issued domestic corporate bonds due 2027, 6.20% RMB publicly issued domestic corporate bonds due 2027, and 6.80% RMB publicly issued domestic corporate bonds due 2027[80][84] - Most domestic corporate bonds have undergone adjustments to maturity dates, implementation of small-amount redemption mechanisms, and proportional principal repayment schedules through bondholder meetings, with unpaid interest capitalized and new credit enhancement measures added[80][81][82][83] - The Group has suspended repayment of certain offshore debts, and trading of offshore USD-denominated senior notes has been suspended since January 5, 2023[85] Contingent Liabilities As of June 30, 2025, the Group's outstanding guarantees for mortgage loans to property purchasers were approximately RMB6,819.5 million, and bank loan guarantees for joint ventures and associates amounted to approximately RMB1,028.1 million Overview of Contingent Liabilities | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Guarantees for Property Purchasers' Mortgage Loans | 6,819.5 | 13,879.3 | | Bank Loan Guarantees for Joint Ventures and Associates | 1,028.1 | 1,100.6 | - Guarantees for property purchasers' mortgage loans are released upon delivery of relevant certificates or repayment of loans; if purchasers default, the Group may be required to repurchase the properties or bear the difference[88] Foreign Exchange Risk The Group primarily operates in China, with most business denominated in RMB, and while the company monitors RMB exchange rate fluctuations, it had not engaged in foreign exchange hedging activities as of June 30, 2025 - The Group primarily operates in China, with most of its business denominated in RMB[89] - As of June 30, 2025, the Group had not engaged in hedging activities to manage foreign exchange rate risk[89] Material Investments and Future Plans There were no material investments, significant acquisitions or disposals of subsidiaries, associates, and joint ventures during the period, nor any future plans for other significant investments or capital asset additions - There were no material investments, significant acquisitions or disposals of subsidiaries, associates, and joint ventures during this period[90] - As of the date of this announcement, there were no other significant investment or capital asset addition plans authorized by the Board of Directors[90] Events After the Reporting Period This section outlines significant events occurring after the reporting period, including the successful offshore debt restructuring and the adjournment of a winding-up petition Proposed Offshore Debt Restructuring The company's offshore debt restructuring scheme was approved by the requisite majority of scheme creditors on July 8, 2025, and subsequently sanctioned by the High Court on July 30, 2025, becoming effective on the same date, following the passing of resolutions at the EGM for the issuance of consideration shares and mandatory convertible bonds - The offshore debt restructuring scheme was approved by the requisite majority of scheme creditors on July 8, 2025[91] - Resolutions for the issuance of consideration shares and two tranches of mandatory convertible bonds were passed at the Extraordinary General Meeting[91] - The restructuring scheme was sanctioned by the High Court on July 30, 2025, with all scheme conditions met, and the effective date being the same day[91] Adjournment of Winding-up Petition The High Court has adjourned the winding-up petition against the company to January 19, 2026 - The High Court has adjourned the winding-up petition against the company to January 19, 2026[92] Other Information This section provides additional information on the company's employees, corporate governance, and compliance with securities trading codes Employees and Remuneration Policies As of June 30, 2025, the Group had 1,202 employees, a 17% decrease from the end of 2024; employee remuneration is based on performance, skills, knowledge, experience, and market trends, with various benefits and training programs provided, and employee welfare expenses for the period were approximately RMB118.1 million Employee Headcount and Welfare Expenses | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Employee Headcount | 1,202 | 1,449 | | Employee Welfare Expenses (RMB million) | 118.1 | 170.0 (For the six months ended June 30, 2024) | - Employee remuneration is based on performance, skills, knowledge, experience, and market trends, with benefits including provident funds, medical insurance, unemployment insurance, and housing provident funds[94] Interim Dividends The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[95] Corporate Governance Practices The company has adopted the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules; the Chairman and Chief Executive Officer roles are held by the same individual, a structure the Board believes provides strong leadership and facilitates business strategy implementation, balanced by effective risk management and internal control systems - The company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules of the Stock Exchange of Hong Kong Limited[96] - The roles of Chairman and Chief Executive Officer are combined and held by Mr. Shum Chiu Hung, which the Board believes provides strong and consistent leadership beneficial to the Group's business prospects[96] Compliance with the Model Code for Securities Transactions by Directors The company has adopted a code of conduct for directors' securities transactions that is no less exacting than the Listing Rules' Model Code, with all directors confirming compliance, and a similar code has been adopted for relevant employees who may possess inside information - The company has adopted a code of conduct for directors' securities transactions that is no less exacting than the Model Code set out in Appendix C3 of the Listing Rules[97] - All directors have confirmed compliance with the Model Code[97] - A similar code of conduct for securities transactions has been adopted for relevant employees who may possess inside information[97] Audit Committee and Review of Financial Statements The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's interim report, interim results, and the effectiveness of its risk management and internal control systems, deeming them effective and adequate - The Audit Committee comprises three independent non-executive directors: Mr. Wong Wai Man (Chairman), Mr. Jin Qingjun, and Ms. Sun Hui[98] - The Audit Committee has reviewed the interim report, interim results, and the effectiveness and adequacy of the risk management and internal control systems[98] Purchase, Sale or Redemption of Listed Securities For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and the company held no treasury shares - During this period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[99] - As of June 30, 2025, the company held no treasury shares[99] Publication of Interim Results and Interim Report This interim results announcement has been published on the HKEX and the company's website, and the 2025 interim report, containing all information required by the Listing Rules, will be published in due course - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (www.timesgroup.cn)[100](index=100&type=chunk) - The 2025 interim report, containing all information required by the Listing Rules, will be published in due course[100]