绿景中国地产(00095) - 2025 - 中期业绩

Interim Results Overview This section provides a concise overview of the group's financial performance and position for the six months ended June 30, 2025 Condensed Consolidated Statement of Profit or Loss The group recorded an expanded net loss of RMB 2,029.8 million for the six months ended June 30, 2025, compared to RMB 1,610.4 million in the prior period, primarily due to a significant revenue decline, impairment losses on properties held for sale, and fair value changes of investment properties | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,039,691 | 1,942,823 | -46.5% | | Gross Profit | 376,296 | 437,732 | -14.0% | | Other Income and Losses, Net | (105,108) | (21,905) | +380.0% | | Impairment Loss on Properties Held for Sale | (471,228) | – | N/A | | Fair Value Change of Investment Properties | (1,070,050) | (951,714) | +12.4% | | Finance Costs | (682,597) | (833,526) | -18.1% | | Loss Before Tax | (2,175,213) | (1,600,486) | +35.9% | | Loss for the Period | (2,029,785) | (1,610,419) | +26.0% | | Loss Attributable to Owners of the Company | (1,837,931) | (1,528,224) | +20.3% | | Basic Loss Per Share (RMB cents) | (31.25) | (29.98) | +4.2% | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The group's total comprehensive expense for the six months ended June 30, 2025, increased to RMB 1,882.8 million, primarily due to an expanded loss for the period, partially offset by foreign exchange translation differences and fair value changes of equity instruments at fair value through other comprehensive income | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Loss for the Period | (2,029,785) | (1,610,419) | +26.0% | | Exchange Differences on Translation | 84,520 | (24,882) | N/A | | Fair Value Change of Equity Instruments at Fair Value Through Other Comprehensive Income | 62,438 | 55,168 | +13.2% | | Other Comprehensive Income for the Period | 146,958 | 30,286 | +385.2% | | Total Comprehensive Expense for the Period | (1,882,827) | (1,580,133) | +19.2% | | Total Comprehensive Expense Attributable to Owners of the Company | (1,691,096) | (1,497,373) | +12.9% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the group's total assets slightly decreased, while total liabilities increased, leading to a reduction in net assets and reflecting liquidity pressure from a decline in net current assets | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 39,838,940 | 40,962,258 | -2.7% | | Current Assets | 63,271,098 | 62,624,419 | +1.0% | | Current Liabilities | 60,568,750 | 59,441,065 | +1.9% | | Net Current Assets | 2,702,348 | 3,183,354 | -15.1% | | Total Assets Less Current Liabilities | 42,541,288 | 44,145,612 | -3.7% | | Non-current Liabilities | 20,442,912 | 20,164,409 | +1.4% | | Net Assets | 22,098,376 | 23,981,203 | -7.8% | | Total Equity | 22,098,376 | 23,981,203 | -7.8% | Basis of Preparation and Going Concern Assumption The condensed consolidated financial statements are prepared under HKAS 34 and Listing Rules on a going concern basis, despite significant liquidity challenges including substantial losses, maturing short-term borrowings, and a winding-up petition, with the Board implementing plans to ensure continued operations - For the six months ended June 30, 2025, the group incurred a net loss of RMB 2,030 million[7] - As of June 30, 2025, RMB 29,593 million of the group's borrowings were repayable within one year, with RMB 29,139 million becoming immediately repayable due to default or cross-default triggers[7] - The group's cash and cash equivalents amounted to RMB 342 million as of June 30, 2025[7] - A winding-up petition against the company was filed by a lender with the High Court of Hong Kong on February 4, 2025[7] - The Board has implemented various plans, including seeking legal advice to oppose the winding-up petition, appointing advisors for offshore debt restructuring, actively negotiating with lenders for renewal or extension of borrowings, utilizing approved credit facilities, accelerating sales of existing development projects, communicating with contractors and suppliers for payments, seeking asset disposals for cash flow (including the sale of a US hotel property for USD 20 million cash), and controlling costs[8][9] Significant Accounting Policies The condensed consolidated financial statements are primarily prepared on a historical cost basis, except for investment properties and certain financial instruments measured at fair value, with no significant impact from newly applied HKFRS amendments - The condensed consolidated financial statements are primarily prepared on a historical cost basis, with investment properties and certain financial instruments measured at fair value[12] - Newly applied HKFRS amendments, including HKAS 21 (Revised) 'Lack of Exchangeability', had no significant impact on the group's financial position and performance during the interim period[13] Revenue and Segment Information The group's revenue primarily derives from property sales, commercial property leasing, and integrated services, with total revenue significantly decreasing by 46.5% year-on-year due to reduced property sales, across its segments of property development and sales, commercial property investment and operation, and integrated services Revenue Source Analysis | Revenue Source | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Property Sales | 527,497 | 1,389,244 | -62.0% | | Hotel Operations, Property Management Services, and Other Services | 200,367 | 210,871 | -5.0% | | Rental Income | 311,827 | 342,708 | -9.0% | | Total Revenue | 1,039,691 | 1,942,823 | -46.5% | - The group's operating segments include property development and sales, commercial property investment and operation, and integrated services[14] Segment Revenue and Results Revenue and profit from property development and sales significantly decreased, while commercial property investment and operation and integrated services also experienced varying degrees of decline in revenue and profit Segment Revenue and Profit for H1 2025 | Segment | Revenue from External Customers (RMB'000) | Reportable Segment Profit (RMB'000) | | :--- | :--- | :--- | | Property Development and Sales | 527,497 | 20,094 | | Commercial Property Investment and Operation | 311,827 | 301,235 | | Integrated Services | 200,367 | 54,967 | | Total | 1,039,691 | 376,296 | Segment Revenue and Profit for H1 2024 | Segment | Revenue from External Customers (RMB'000) | Reportable Segment Profit (RMB'000) | | :--- | :--- | :--- | | Property Development and Sales | 1,389,244 | 24,474 | | Commercial Property Investment and Operation | 342,708 | 334,946 | | Integrated Services | 210,871 | 78,312 | | Total | 1,942,823 | 437,732 | Segment Assets As of June 30, 2025, the group's total assets were RMB 103,110.0 million, with property development and sales assets accounting for the largest portion, followed by commercial property investment and operation assets Segment Assets | Segment | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Property Development and Sales | 62,056,352 | 61,215,269 | | Commercial Property Investment and Operation | 38,066,648 | 39,131,259 | | Integrated Services | 197,079 | 361,943 | | Total Reportable Segment Assets | 100,320,079 | 100,708,471 | | Total Consolidated Assets | 103,110,038 | 103,586,677 | Finance Costs For the six months ended June 30, 2025, the group's finance costs decreased by 18.1% to RMB 682.6 million, primarily due to an increase in capitalized amounts | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Interest on Bank and Other Borrowings | 1,177,775 | 1,352,462 | | Interest on Convertible Bonds | 10,170 | 11,806 | | Interest on Domestic Corporate Bonds | 42,117 | 41,532 | | Interest on Lease Liabilities | 16,272 | 11,625 | | Interest on Contract Liabilities | 304,914 | 154,712 | | Less: Amount Capitalized to Investment Properties Under Construction and Properties Under Development for Sale | (563,737) | (583,899) | | Capitalization of Interest on Contract Liabilities | (304,914) | (154,712) | | Total Finance Costs | 682,597 | 833,526 | - Finance costs were capitalized at annual interest rates ranging from 4.85% to 6.62% (2024: 4.50% to 7.50%)[20] Loss Before Tax For the six months ended June 30, 2025, the loss before tax expanded to RMB 2,175.2 million, compared to RMB 1,600.5 million in the prior period, primarily influenced by costs of properties held for sale, depreciation, rental income, and operating expenses | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Cost of Properties Held for Sale Recognized as Expense | 507,403 | 1,364,770 | | Depreciation of Property, Plant and Equipment | 30,136 | 30,540 | | Total Rental Income from Investment Properties | (311,827) | (342,708) | | Direct Operating Expenses for Investment Properties Generating Rental Income During the Period | 10,592 | 7,762 | | Short-term Lease Related Expenses | – | 1,927 | Income Tax (Credit) Expense For the six months ended June 30, 2025, the group recorded an income tax credit of RMB 145.4 million, compared to an expense of RMB 9.9 million in the prior period, primarily due to an increase in deferred tax credits | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | China Corporate Income Tax | 1,293 | 117,625 | | Mainland China Land Appreciation Tax | 26,625 | 99,386 | | Deferred Tax | (173,346) | (207,078) | | Total | (145,428) | 9,933 | Dividends The Board of Directors decided not to declare or pay any dividends for the six months ended June 30, 2025 - No dividends were paid, declared, or proposed during the interim period[23] Loss Per Share For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the company increased to RMB 31.25 cents, up from RMB 29.98 cents in the prior period | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Loss Used for Calculating Basic and Diluted Loss Per Share | (1,837,931) | (1,528,224) | | Weighted Average Number of Ordinary Shares for Calculating Basic and Diluted Loss Per Share (thousand shares) | 5,882,214 | 5,097,704 | | Basic and Diluted Loss Per Share (RMB cents) | (31.25) | (29.98) | - Unexercised convertible preference shares and share options were not assumed to be converted or exercised in calculating diluted loss per share, as they would result in a decrease in loss per share or have an exercise price higher than the average market price[24] Trade Receivables As of June 30, 2025, the group's total trade receivables increased to RMB 87.1 million from RMB 68.2 million at December 31, 2024, primarily from customer contracts and lease receivables | Trade Receivables Source | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Customer Contracts | 52,025 | 38,372 | | Lease Receivables | 40,654 | 35,490 | | Total Trade Receivables | 92,679 | 73,862 | | Less: Provision for Credit Losses | (5,596) | (5,688) | | Net Trade Receivables | 87,083 | 68,174 | Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Within 1 Month | 17,325 | 24,217 | | 1 to 12 Months | 49,665 | 33,501 | | 13 to 24 Months | 20,093 | 10,456 | | Total | 87,083 | 68,174 | Trade Payables As of June 30, 2025, the group's total trade payables increased to RMB 4,922.5 million from RMB 4,444.3 million at December 31, 2024 Aging Analysis of Trade Payables | Aging | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Within 1 Month | 997,984 | 1,903,996 | | 1 to 12 Months | 2,585,973 | 1,872,320 | | 13 to 24 Months | 1,139,048 | 530,660 | | Over 24 Months | 199,455 | 137,284 | | Total | 4,922,460 | 4,444,260 | Management Discussion and Analysis This section provides an in-depth review of the group's operational performance, financial position, and strategic outlook, alongside an analysis of the market environment and key risks Industry Review In H1 2025, China's economy grew by 5.3% amidst challenges, with continuous easing of real estate policies, yet the market still faced downward pressure despite strong performance in the Greater Bay Area - In H1 2025, China's GDP grew by 5.3% year-on-year at constant prices[28] - The central bank lowered the 5-year-plus LPR to 3.5% in May, and the 5-year-plus provident fund loan interest rate to 2.6%, a historical low[29] - Approximately 170 provinces, cities, and counties introduced over 340 optimization policies, focusing on financial support, urban renewal, home purchase subsidies, and inventory reduction[29] - Government work reports, Politburo meetings, and State Council executive meetings all emphasized accelerating the construction of a new real estate development model, focusing on 'good housing' and urban renewal[30][31] National Real Estate Market Data for H1 2025 | Indicator | H1 2025 | Year-on-Year Change | | :--- | :--- | :--- | | Real Estate Development Investment | 4,665.8 billion RMB | -11.2% | | Residential Investment | 3,577.0 billion RMB | -10.4% | | New Commercial Housing Sales Area | 458.51 million square meters | -3.5% | | New Commercial Housing Sales Value | 4,424.1 billion RMB | -5.5% | - The total import and export value of the 9 mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area reached RMB 4.38 trillion, a 4.3% year-on-year increase, accounting for 20.1% of the national total[33] Corporate Strategy and Project Progress Facing industry challenges, LVGEM China maintains a strategy of streamlining operations, focusing on quality project development, enhancing asset management, and specializing in urban renewal, with the core Baishizhou project progressing well towards its January 2026 delivery target - Leveraging over 40 years of experience, the group focuses on urban renewal, developing a 'Mega-City Model' and achieving strong sales for the Baishizhou project[34] - The group's 2025 development strategy includes streamlining operations to focus on five quality projects, enhancing asset management and profitability, and specializing in urban renewal[41] - Phase I of the Baishizhou project has nearly 70% completion for curtain wall construction and 60% for interior decoration, on track for promised delivery in January 2026, with Phase II planned for full commencement in 2026[45] - The group completed the sale of a hotel property in California, USA, for a cash consideration of USD 20 million (approximately RMB 144 million), to reduce outstanding debt[9][47] Property Development and Sales Property development and sales remain the group's core business, but revenue decreased by 62.0% year-on-year, and contracted sales by 80.3%, primarily from the Baishizhou Phase I, Zhuhai Xiyue Bay, and LVGEM International Garden projects | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Property Development and Sales Revenue | RMB 527.5 million | RMB 1,389.2 million | -62.0% | | Contracted Sales Amount from Property Subscription Agreements | RMB 1,057.6 million | RMB 5,389.7 million | -80.3% | - Property sales primarily originated from Xiyue Bay and LVGEM Hongshuwan No. 1, with a total GFA of approximately 18,600 square meters recognized for properties held for sale (2024: approximately 28,500 square meters)[62] Commercial Property Investment and Operation The group continues to deepen its 'Zuo Lin' and 'NEO' dual-brand strategy, with commercial property investment and operation revenue decreasing by 9.0% year-on-year, yet core project occupancy rates remain high, demonstrating stable asset operational capability | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Commercial Property Investment and Operation Revenue | RMB 311.8 million | RMB 342.7 million | -9.0% | | Investment Property Occupancy Rate | 72% | 78% | -6 percentage points | | LVGEM NEO Tower Hong Kong Occupancy Rate | 68% | 73% | -5 percentage points | - The group holds over 30 commercial property projects with a total GFA exceeding 1.6 million square meters[53] Integrated Services Integrated services, including property management, hotel operations, and others, saw a slight 5.0% year-on-year revenue decrease, but strengthened operational resilience through enhanced professional standards and diversified development | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Integrated Services Revenue | RMB 200.4 million | RMB 210.9 million | -5.0% | - The average occupancy rate of LVGEM Jinjiang Hotel in Shenzhen Futian Central Business District exceeded 68%[54] Financial Performance Overview In H1 2025, the group's total revenue decreased by 46.5%, gross profit by 14.0%, but gross margin improved to 36%, while losses for the period and attributable to owners expanded, basic loss per share increased, and the debt-to-asset ratio rose amidst reduced cash balances Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 1,039.7 | 1,942.8 | -46.5% | | Gross Profit | 376.3 | 437.7 | -14.0% | | Loss Attributable to Owners of the Company | (1,837.9) | (1,528.2) | +20.3% | | Basic Loss Per Share (RMB cents) | (31.25) | (29.98) | +4.2% | | Gross Margin (%) | 36 | 23 | +13 percentage points | | Bank Balances and Cash (including restricted and pledged bank deposits) | 1,961.7 | 3,303.8 (Dec 31, 2024) | -40.6% | | Average Finance Cost (%) | 7.9 | 8.0 | -0.1 percentage points | | Debt-to-Asset Ratio (%) | 78.6 | 76.9 (Dec 31, 2024) | +1.7 percentage points | | Return on Capital (%) | (11.24) | (28.67) | N/A | - The Board does not recommend the payment of any dividend for the six months ended June 30, 2025[40] Future Outlook and Response Strategies Looking ahead, China's real estate market is expected to stabilize with policy support, but differentiation will persist, with urban renewal as a key focus for LVGEM China to drive quality project delivery, debt restructuring, and sales acceleration, leveraging its prime asset portfolio and urban renewal expertise despite liquidity challenges - The real estate market in H2 is expected to find a new balance amidst differentiation, with high-quality projects potentially stabilizing new home markets in core cities, though comprehensive market stabilization requires further policy efforts[55] - Urban renewal has become a core driver for high-quality development, with increasing policy support from central and regulatory authorities, including the issuance of guiding documents like the 'Opinions on Continuously Advancing Urban Renewal Actions'[56] - Urban renewal in the Guangdong-Hong Kong-Macao Greater Bay Area is entering a golden period characterized by multi-stakeholder participation, multi-element integration, and multi-mode convergence[57] - The group will focus on three main operational pillars: first, prioritizing the delivery of quality projects (especially the Baishizhou project); second, advancing offshore debt restructuring and optimizing financing structure; and third, accelerating sales to enhance cash collection efficiency[58][59] - As of June 30, 2025, the group held a land bank of approximately 6.3 million square meters, with nearly 80% located in core areas of core cities within the Guangdong-Hong Kong-Macao Greater Bay Area[50] Financial Position and Risk Management This section details the group's financial performance, liquidity, and capital structure, along with an overview of asset pledges, significant transactions, contingent liabilities, and foreign exchange risk management Detailed Financial Review This section provides a detailed review of the group's financial indicators for the six months ended June 30, 2025, including revenue, gross profit, expenses, fair value changes, finance costs, income tax, and operating results, alongside an analysis of liquidity, financial resources, and capital gearing ratio changes Revenue Analysis The group's total revenue decreased by 46.5% year-on-year, primarily due to a 62.0% reduction in property development and sales revenue, with slight declines also observed in commercial property investment and operation and integrated services revenue | Revenue Source | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Property Development and Sales | 527,497 | 1,389,244 | -62.0% | | Commercial Property Investment and Operation | 311,827 | 342,708 | -9.0% | | Integrated Services | 200,367 | 210,871 | -5.0% | | Total | 1,039,691 | 1,942,823 | -46.5% | - Property sales primarily originated from Xiyue Bay and LVGEM Hongshuwan No. 1, with a total GFA of approximately 18,600 square meters recognized for properties held for sale (2024: approximately 28,500 square meters)[62] - The occupancy rate of investment properties was approximately 72% (2024: 78%), and LVGEM NEO Tower in Hong Kong had an occupancy rate of approximately 68% (2024: 73%)[63] Gross Profit and Gross Margin The group's consolidated gross profit decreased by 14.0% year-on-year, but the gross margin improved from 23% to 36%, primarily due to the revenue recognition mix from different projects | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Consolidated Gross Profit | 376,300 | 437,700 | -14.0% | | Consolidated Gross Margin | 36% | 23% | +13 percentage points | Selling Expenses Selling expenses decreased by 16.1% year-on-year, primarily due to reduced revenue from properties held for sale | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Selling Expenses | 50,100 | 59,700 | -16.1% | Administrative Expenses Administrative expenses decreased by 7.6% year-on-year | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 190,900 | 206,700 | -7.6% | Fair Value Change of Investment Properties Investment properties recorded a negative fair value change of approximately RMB 1,070.1 million, an expansion compared to the negative change in the prior period | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Negative Fair Value Change of Investment Properties | (1,070,100) | (951,700) | +12.4% | Finance Costs Finance costs decreased by 18.1% year-on-year, with the average finance cost remaining stable at 7.9% | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 682,600 | 833,500 | -18.1% | | Average Finance Cost of Interest-bearing Borrowings | 7.9% | 7.9% | 0.0 percentage points | Income Tax Credit (Expense) The group recorded an income tax credit of RMB 145.4 million, compared to an expense of RMB 9.9 million in the prior period, primarily due to deferred tax provisions | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Income Tax Credit (Expense) | 145,400 | (9,900) | | Corporate Income Tax | 1,300 | 117,600 | | Land Appreciation Tax | 26,600 | 99,400 | | Deferred Tax | (173,300) | (207,100) | Operating Results Loss attributable to owners of the company increased by 20.3% year-on-year to RMB 1,837.9 million | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | (1,837,900) | (1,528,200) | +20.3% | Liquidity, Financial Resources, and Capital Gearing Ratio Bank balances and cash decreased, total borrowings slightly declined, but the capital gearing ratio rose to 136.8%, indicating increased financial leverage | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Bank Balances and Cash | 1,961.7 | 3,303.8 | -40.6% | | Total Borrowings | 32,185.5 | 33,578.7 | -4.1% | | Borrowings Classified as Current Liabilities | 29,592.5 | 30,905.3 | -4.2% | | Capital Gearing Ratio | 136.8% | 126.2% | +10.6 percentage points | Borrowings by Denominated Currency | Currency | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | RMB | 22,007,418 | 23,289,842 | | HKD | 6,404,804 | 6,502,835 | | USD | 3,773,284 | 3,785,999 | Borrowings by Fixed or Floating Interest Rates | Interest Rate Type | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Fixed Rate | 7,216,551 | 7,966,080 | | Floating Rate | 24,968,955 | 25,612,596 | Current Assets, Total Assets, and Net Assets Net current assets decreased by 15.1%, total assets slightly declined, and total liabilities increased, resulting in a 7.8% reduction in net assets and a rise in the debt-to-asset ratio to 78.6% | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Current Assets | 63,271.1 | 62,624.4 | +1.0% | | Current Liabilities | 60,568.8 | 59,441.1 | +1.9% | | Net Current Assets | 2,702.3 | 3,183.4 | -15.1% | | Total Assets | 103,110.0 | 103,586.7 | -0.5% | | Total Liabilities | 81,011.7 | 79,605.5 | +1.8% | | Debt-to-Asset Ratio | 78.6% | 76.9% | +1.7 percentage points | | Net Assets | 22,098.4 | 23,981.2 | -7.8% | Pledge of Assets As of June 30, 2025, approximately RMB 29,634.2 million in loans were secured by the group's properties under development for sale, properties held for sale, investment properties, property, plant and equipment, equity instruments at fair value through other comprehensive income, pledged bank deposits, and equity interests in subsidiaries - As of June 30, 2025, approximately RMB 29,634.2 million of loans were secured by group assets totaling approximately RMB 22,601.0 million and equity interests in subsidiaries[77] Significant Acquisitions and Disposals The group completed the disposal of a hotel property in California, USA, for USD 20 million in January 2025, with no other significant acquisitions or disposals during the period - LVGEM Hotel Corporation disposed of its entire interest in certain hotel assets in Los Angeles on January 16, 2025, for a consideration of USD 20 million[78] Contingent Liabilities As of June 30, 2025, the group had financial guarantee contracts of approximately RMB 6,894.0 million for certain buyers' mortgage financing, with directors deeming the likelihood of loss from these guarantees to be low | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Financial Guarantee Contracts for Buyers' Mortgage Financing | 6,894.0 | 7,007.4 | - The guarantee period extends from the mortgage loan grant date until the buyer obtains individual property ownership certificates or fully repays the mortgage loan, whichever is earlier[79] - The directors believe it is unlikely for the group to incur losses from these mortgage guarantees during the guarantee period, as the fair market value of the related properties is sufficient to cover outstanding mortgage loans[80] Foreign Exchange Fluctuation Risk and Hedging The group's primary operations are in mainland China, with most transactions denominated in RMB, but it faces foreign exchange risk from HKD and USD cash balances and loans, currently without a foreign currency hedging policy - The group is exposed to foreign exchange risk from HKD and USD against RMB but does not have a foreign currency hedging policy[81] Treasury Policy and Capital Structure The group maintains a prudent approach to its treasury and capital policies, focusing on risk management and transactions directly related to its business operations - The group adopts a prudent approach to its treasury and capital policies, focusing on risk management[82] Corporate Governance and Other Information This section covers the group's employee information, compliance with corporate governance codes, review of interim financial information, and post-reporting period events Employees As of June 30, 2025, the group employed 2,067 staff, with remuneration aligned to market trends and comprehensive training and development programs provided | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Number of Employees | 2,067 | 2,073 | | Employees in Mainland China | 2,035 | 2,042 | | Employees in Hong Kong | 32 | 31 | Compliance with Corporate Governance Code The company is committed to good corporate governance, with Ms. Huang Jingshu serving as both Chairman and CEO, a deviation from Listing Rule C.2.1, and temporary non-compliance with other rules due to independent non-executive director resignations was rectified on May 13, 2025 - Ms. Huang Jingshu serves concurrently as Chairman and Chief Executive Officer, deviating from Code Provision C.2.1 of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[84] - Due to the resignations of Ms. Hu Jingying and Mr. Mo Fan, the company was temporarily non-compliant with Listing Rule 3.10(1) (at least three independent non-executive directors), Rule 3.21 (at least three members on the audit committee), and Rule 3.25 (chairman and majority of remuneration committee members must be independent non-executive directors)[86] - The company regained compliance with the aforementioned Listing Rules following the appointment of Ms. Wang Tingdan to fill the vacancies on May 13, 2025[86] Compliance with Standard Securities Dealing Code The company has adopted the Model Code set out in Appendix C3 of the Listing Rules, and directors confirmed continuous compliance throughout the period - The directors confirmed continuous compliance with the Model Code set out in Appendix C3 of the Listing Rules for the six months ended June 30, 2025[88] Review of Interim Financial Information The group's interim results have been reviewed by the Board's Audit Committee, which deemed their preparation compliant with applicable accounting standards and requirements - The group's interim results have been reviewed by the Board's Audit Committee, which deemed their preparation compliant with applicable accounting standards and requirements[89] Repurchase, Sale, or Redemption of Listed Securities For the six months ended June 30, 2025, neither the company nor its subsidiaries repurchased, sold, or redeemed any of the company's listed securities, and the company held no treasury shares - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries repurchased, sold, or redeemed any of the company's listed securities[90] Events After Reporting Period Subsequent to the reporting period, the winding-up petition hearing filed on February 4, 2025, has been adjourned to November 3, 2025, with the group actively negotiating financing extensions and signing restructuring support agreements with some creditors - The winding-up petition hearing filed by a lender on February 4, 2025, has been further adjourned to November 3, 2025[93] - The group has received positive responses from several banks regarding the extension of bank financing maturity dates[93] - The company has entered into a support agreement with one creditor to advance its restructuring efforts, with more creditors actively considering signing similar agreements[93] Publication of Interim Results Announcement and Interim Report This results announcement has been published on the company's and HKEX websites, with the interim report to be dispatched to shareholders in due course - The content of this results announcement is available on the company's website (www.lvgem-china.com) and the HKEX website (www.hkex.com.hk)[92](index=92&type=chunk) General Information As of the announcement date, the Board of Directors comprises four executive directors and three independent non-executive directors, with Ms. Huang Jingshu serving as Chairman and CEO - The Board of Directors includes executive directors Ms. Huang Jingshu (Chairman and Chief Executive Officer), Mr. Ye Xing'an, Mr. Huang Haoyuan, and Ms. Li Yufei; and independent non-executive directors Mr. Chan Koon Fat, Ms. Jiao Jie, and Ms. Wang Tingdan[93]