亿达中国(03639) - 2025 - 中期财报

Company Overview Yida China Holdings Limited, established in 1988, is a leading business park developer and operator in China, offering services including park development, property sales, entrusted operation management, and construction. - Yida China, established in 1988, is China's largest business park developer and a leading operator[7] - Core businesses include business park development and operation, sales of supporting residential and office properties, entrusted operation management, and construction, decoration, and landscaping services[7] - The company successfully developed and operates Dalian Software Park and other parks using an "industry-city integration" model, serving nearly 80 Fortune Global 500 companies[7][8] - The company's vision is to become "China's leading business park operator" and implement a nationwide development strategy of "light asset-driven, heavy and light asset combined"[8] Company Information This section provides essential information about Yida China Holdings Limited, including its board members, joint company secretaries, authorized representatives, board committee compositions, registered office, headquarters, and stock code. - The Board of Directors includes Mr. Jiang Xiuwen (Chairman and CEO), Mr. Lu Jianhua (Vice Chairman), and several executive, non-executive, and independent non-executive directors[10] - Mr. Chen Yichuan chairs the Audit Committee, Mr. Guo Shaomu chairs the Remuneration Committee, and Mr. Jiang Xiuwen chairs the Nomination Committee[10] - The company is registered in the Cayman Islands, with its China headquarters in Dalian and principal place of business in Hong Kong located in Wan Chai[10][11] - The company's stock code is 3639, and its official website is www.yidachina.com[12](index=12&type=chunk) Chairman's Report The Chairman's Report reviews Yida China's operating performance and market environment for the first half of 2025, outlining strategies for the second half. 2025 First Half Key Financial Data | Indicator | Amount (RMB million) | | :--- | :--- | | Revenue | 700 | | Gross Profit | 100 | | Gross Profit Margin | 14.2% | | Net Loss Attributable to Owners of the Company | 776 | - The real estate market continued its deep adjustment in the first half of 2025, with declining land auction transaction volumes and contracted GFA[19] - The company faced prominent debt risks during the period, with management focusing on improving operations and resolving debt risks to implement key initiatives[19] - Second-half outlook: Macro policies are expected to strengthen, but market demand, housing price expectations, and supply of quality real estate projects remain weak; the company will focus on core business drivers, accelerate destocking of existing projects, and revitalize assets to improve its debt-to-asset ratio[20] Management Discussion and Analysis This section details Yida China's business operations and financial performance for the first half of 2025, highlighting revenue changes across segments, expanded net loss, and increased liquidity pressure. Business Review This section reviews Yida China's performance across its five core business segments: business park held property operations, property sales, business park operations management, construction, decoration and landscaping, and land reserve. Business Park Held Property Operations In the first half of 2025, Yida China held four wholly-owned business parks and a 50% interest in Wuhan Software New City, with total GFA of approximately 1.929 million sq.m., experiencing an 11.2% decrease in rental income due to lower occupancy. - The Group wholly owns four business parks: Dalian Software Park, Dalian Science and Technology City, Yida Information Software Park, and Dalian Tiandi, and holds a 50% interest in Wuhan Software New City[22] - Total GFA of completed held properties is approximately 1.929 million sq.m., with leasable area of approximately 1.373 million sq.m.[22] Business Park Rental Income | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Rental Income | 216 | 243 | -11.2% | - The decrease in rental income is primarily due to a decline in occupancy rates, with approximately 28,000 sq.m. of leased area returned by park clients due to international relations and geopolitical impacts[22][24] - During the period, 11 new client enterprises were added, with new contracted area of approximately 7,000 sq.m., and client stickiness was enhanced through industrial resource introduction and diversified value-added services[24][25] Property Sales In the first half of 2025, Yida China focused on asset revitalization, debt risk control, and sales collection amidst a deeply adjusting real estate market, achieving contracted sales of RMB 415 million. - The real estate market continued its deep adjustment and transformation, with the company focusing on "asset revitalization, debt risk control, sales collection, and project construction"[26] 2025 First Half Property Sales Data | Indicator | Amount/Value | | :--- | :--- | | Contracted Sales Amount | RMB 415 million | | Contracted Sales Area | 34,100 sq.m. | | Contracted Sales Average Price | RMB 12,148/sq.m. | | Sales Revenue | RMB 212 million | | Sales Revenue YoY Change | +20.8% | | Sales Revenue Average Price | RMB 11,077/sq.m. | | Sales Revenue Average Price YoY Change | -39.7% | - The increase in sales revenue was mainly due to an increase in delivered projects during the period, while the decrease in average sales price was due to a different product mix compared to the same period in 2024, primarily lower-priced ordinary residential products and apartments[27] - Major sales projects are primarily located in Dalian, accounting for 82.2% of contracted sales amount[26] Business Park Operations Management The Group is committed to developing smart park investment promotion and operations, with entrusted management area of approximately 219,000 sq.m. in the first half of 2025, generating RMB 87 million in revenue. - The Group is committed to developing smart park investment promotion and smart park operations, building a national industrial investment network matrix[30] 2025 First Half Business Park Operations Management Revenue | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 87 | 100 | -13.2% | - The decrease in revenue was mainly due to clients scaling down their business operations during the period[30][45] Construction, Decoration and Landscaping Facing a downturn in the real estate industry, this business segment continued to contract, but Yida China recorded RMB 185 million in revenue, a 25.3% increase, primarily due to increased output from external projects. - The real estate industry is generally declining, and the market for this business segment continues to contract[31] - The company employs multiple methods to strictly control costs, optimizing organizational structure through a digital management platform to enhance per capita efficiency[31] 2025 First Half Construction, Decoration and Landscaping Revenue | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 185 | 148 | +25.3% | - The increase in revenue was mainly attributable to increased output from external projects completed during the period[31][46] Land Reserve As of June 30, 2025, Yida China's total land reserve GFA was approximately 6.47 million sq.m., with Dalian accounting for 77.1%, and business parks comprising 87.6% of the total. Land Reserve Overview as of June 30, 2025 | Indicator | Total GFA (sq.m.) | Attributable GFA (sq.m.) | | :--- | :--- | :--- | | Total | 6,474,612 | 5,958,111 | | Dalian Proportion | 77.1% | 83.8% | | Business Park Proportion | 87.6% | 86.6% | - Land reserve is primarily concentrated in Dalian, with business park projects accounting for the vast majority[32][33] Financial Review This section provides a detailed review of Yida China's financial performance for the first half of 2025, noting a slight increase in total revenue but a significant decline in gross profit and an expanded net loss. 2025 First Half Revenue Breakdown | Revenue Source | 2025 First Half (RMB thousand) | % of Total | 2024 First Half (RMB thousand) | % of Total | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | 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 Operations 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% | 2025 First Half Gross Profit and Gross Profit Margin | Indicator | 2025 First Half (RMB thousand) | 2024 First Half (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 99,701 | 189,347 | -47.3% | | Gross Profit Margin | 14.2% | 28.4% | -14.2 percentage points | - The decrease in gross profit and gross profit margin was mainly due to a different product mix recognized during the period, with corresponding gross profit lower than the same period in 2024[48] 2025 First Half Key Profit and Loss Item Changes | Indicator | 2025 First Half (RMB thousand) | 2024 First Half (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 600,707 | 477,718 | +25.7% | | Selling and Marketing Expenses | 27,920 | 23,363 | +19.5% | | Administrative Expenses | 50,752 | 58,255 | -12.9% | | Other Net Losses | (101,800) | (58,461) | +74.1% | | Fair Value (Loss)/Gain on Investment Properties | (123,899) | 233 | Turned from gain to loss | | Net Finance Costs | 505,433 | 399,786 | +26.4% | | Income Tax Expense | 70,010 | 16,191 | +332.4% | | Loss for the Period | (778,342) | (361,429) | Loss widened | | Net Loss Attributable to Owners of the Company | (775,538) | (360,118) | Loss widened | - Fair value of investment properties turned from gain to loss, mainly due to business relocation of certain international clients and cost-saving measures by some clients leading to multiple tenant departures from the parks[52] - Net finance costs increased primarily due to higher interest expenses and reduced capitalized interest during the period[53] - Income tax expense significantly increased, mainly due to higher land appreciation tax provision resulting from land appreciation tax settlement for properties sold during the period[56] Liquidity, Financial and Capital Resources As of June 30, 2025, Yida China's cash and bank balances were approximately RMB 441 million, with restricted cash of RMB 255 million, and total bank and other borrowings of RMB 11.605 billion, indicating increased liquidity pressure. Cash Position as of June 30, 2025 | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cash and Bank Balances | 440,872 | 373,802 | | Restricted Cash | 254,919 | 217,550 | Debt Overview as of June 30, 2025 | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Bank and Other Borrowings | 11,605,345 | 11,670,884 | | Repayable within one year or on demand | 11,551,811 | 11,618,346 | | Repayable in the second year | 53,534 | 52,538 | | Net Gearing Ratio | 168.6% | 152.6% | - The net gearing ratio increased by 16 percentage points from the end of 2024, indicating rising debt pressure[63] - The company's functional currency is RMB, but it holds HKD and USD-denominated cash and bank balances, as well as USD and HKD-denominated borrowings, exposing it to foreign exchange risk[65] - Contingent liabilities include guarantees for customer mortgage financing of approximately RMB 132 million and guarantees for joint venture bank loans of approximately RMB 48.78 million[66] - As of June 30, 2025, the Group had 300 full-time employees, a decrease from 348 at the end of 2024[67] - The Board resolved not to declare any interim dividend for the period[69] Disclosure of Interests This section discloses the interests and short positions of directors, chief executives, and substantial shareholders in the company's shares and related shares as of June 30, 2025. Interests of Directors and Chief Executives in the Company's Shares | Director Name | Capacity/Nature of Interest | Number of Shares Held (L) | Approximate % of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Jiang Xiuwen | Interest in controlled corporation | 68,600,000 | 2.65% | | Mr. Wang Gang | Interest in controlled corporation | 69,200,000 | 2.68% | Interests of Substantial Shareholders in the Company's Shares | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held (L) | Approximate % of Issued Share Capital | | :--- | :--- | :--- | :--- | | Jiayou (International) Investment Co., Ltd. | Beneficial owner | 1,581,485,750 | 61.20% | | Jiahua (Holdings) Investment Co., Ltd. | Interest of a corporation controlled by a substantial shareholder | 1,581,485,750 | 61.20% | | Shanghai Pinzui Enterprise Management Co., Ltd. | Interest of a corporation controlled by a substantial shareholder | 1,581,485,750 | 61.20% | | CMIG Jiaye Investment Co., Ltd. | Interest of a corporation controlled by a substantial shareholder | 1,581,485,750 | 61.20% | | China Minsheng Investment Corp., Ltd. | Interest of a corporation controlled by a substantial shareholder | 1,581,485,750 | 61.20% | | Yang Meili | Joint and several receivers | 516,764,000 | 19.99% | | Chen Mingxiao | Joint and several receivers | 516,764,000 | 19.99% | | Sun Yin Huan | Founder of a discretionary trust | 241,400,000 | 9.34% | | TMF (Cayman) Ltd. | Trustee | 241,400,000 | 9.34% | | Right Ying Holdings Limited | Interest in controlled company | 241,400,000 | 9.34% | | Zhenghong Management Co., Ltd. | Beneficial owner | 241,400,000 | 9.34% | - 516,764,000 shares held by Jiayou (International) Investment Co., Ltd. have been charged to Andu and joint and several receivers were appointed in May 2022[78][97] Corporate Governance and Other Information This section outlines Yida China's corporate governance practices, including compliance with the Corporate Governance Code, directors' securities transaction standards, and audit committee composition. - The company complies with the Corporate Governance Code, though the roles of Chairman and Chief Executive Officer are combined and held by Mr. Jiang Xiuwen, which the Board believes is in the company's best interest[80] - The Audit Committee comprises three independent non-executive directors, chaired by Mr. Chen Yichuan, and has reviewed and approved the interim results[83][84] - The company faces Andu arbitration involving total payment obligations of approximately US$209 million, and despite a settlement agreement, the respondents have not fulfilled all payment obligations[85][86] - Dalian Service Outsourcing Base Development Co., Ltd., a wholly-owned subsidiary, was convicted of bribery due to a former employee's actions[87] - The company's 2022 senior notes defaulted due to failure to pay consent fees and interest on time, leading to an acceleration notice and a winding-up petition that was subsequently withdrawn[90][91] - The company has multiple material loan agreement defaults, including liquidity difficulties of the controlling shareholder, detention of a former executive director, delayed payment of senior notes, non-fulfillment of the Andu arbitration award, and overdue subsidiary loans, resulting in RMB 6.445 billion in outstanding borrowings and an additional RMB 5.107 billion potentially subject to immediate repayment[93][95] - The controlling shareholder, China Minsheng Investment Corp., Ltd. or its subsidiaries, must beneficially own 35% or more of the total outstanding shares of the company, otherwise the outstanding balance of total payment obligations will become due[96] Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, Yida China recorded revenue of RMB 700 million, a 5.0% increase year-on-year, but a significant rise in cost of sales led to a 47.3% decrease in gross profit to RMB 99.7 million. Condensed Consolidated Statement of Profit or Loss Summary (For the six months ended June 30, 2025) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 700,408 | 667,065 | | Cost of Sales | (600,707) | (477,718) | | Gross Profit | 99,701 | 189,347 | | Fair Value (Loss)/Gain on Investment Properties | (123,899) | 233 | | Other Net Losses | (101,800) | (58,461) | | Finance Costs | (505,433) | (399,786) | | Loss Before Income Tax | (708,332) | (345,238) | | Income Tax Expense | (70,010) | (16,191) | | Loss for the Period | (778,342) | (361,429) | | Loss Attributable to Owners of the Company | (775,538) | (360,118) | | Basic and Diluted Loss Per Share (RMB cents) | (30.01) | (13.94) | Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, Yida China's total comprehensive loss for the period was RMB 778 million, consistent with the loss for the period, indicating no other comprehensive income or loss reclassifiable to profit or loss. Condensed Consolidated Statement of Comprehensive Income Summary (For the six months ended June 30, 2025) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 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) | | Attributable to Non-controlling Interests | (2,804) | (1,311) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, Yida China's total assets were RMB 33.883 billion, largely stable from year-end 2024, while total liabilities increased to RMB 27.261 billion, with current liabilities reaching RMB 24.985 billion, expanding the net current liabilities to RMB 11.585 billion. Condensed Consolidated Statement of Financial Position Summary (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Assets | | | | Total Non-current Assets | 20,482,986 | 20,649,343 | | Investment Properties | 16,206,539 | 16,340,772 | | Prepayments for Land Acquisitions | 2,985,975 | 2,985,975 | | Total Current Assets | 13,400,044 | 13,230,643 | | Completed Properties Held for Sale | 8,643,961 | 7,498,371 | | Cash and Cash Equivalents | 185,953 | 156,254 | | Restricted Cash | 254,919 | 217,548 | | Liabilities | | | | Total Non-current Liabilities | 2,275,475 | 2,308,088 | | Total Current Liabilities | 24,985,337 | 24,170,923 | | Interest-bearing Bank and Other Borrowings (Current) | 11,551,811 | 11,618,346 | | Other Payables and Accrued Charges | 5,580,902 | 5,046,744 | | Equity | | | | Total Equity | 6,622,218 | 7,400,975 | | Net Current Liabilities | (11,585,293) | (10,940,280) | - Net current liabilities expanded from RMB 10.940 billion at the end of 2024 to RMB 11.585 billion, indicating further increased liquidity pressure[103] Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, Yida China's total equity decreased from RMB 7.401 billion at the beginning of the year to RMB 6.622 billion, primarily due to a net loss of RMB 776 million attributable to owners of the company. Condensed Consolidated Statement of Changes in Equity Summary (For the six months ended June 30, 2025) | Indicator | January 1, 2025 (RMB thousand) | Loss for the Period (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Owners of the Company | 7,265,501 | (775,538) | 6,489,548 | | Non-controlling Interests | 135,474 | (2,804) | 132,670 | | Total Equity | 7,400,975 | (778,342) | 6,622,218 | - The decrease in total equity is primarily attributable to the net loss recorded during the period[104] Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, Yida China's net cash flow from operating activities significantly increased to RMB 252 million, while net cash used in investing activities was RMB 31.165 million and net cash used in financing activities was RMB 191 million. Condensed Consolidated Statement of Cash Flows Summary (For the six months ended June 30, 2025) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 251,653 | 124,339 | | Net Cash Flows (Used in)/Generated from Investing Activities | (31,165) | 105,559 | | Net Cash Flows Used in Financing Activities | (190,789) | (225,481) | | Net Increase in Cash and Cash Equivalents | 29,699 | 4,417 | | Cash and Cash Equivalents at End of Period | 185,953 | 179,464 | - Net cash flow from operating activities significantly increased year-on-year, mainly due to a decrease in properties under development, a decrease in completed properties held for sale, and an increase in trade payables and contract liabilities[106] - Investing activities shifted from cash inflow in the prior year to cash outflow, primarily due to an increase in restricted cash[107] Notes to the Condensed Consolidated Financial Statements This section provides detailed notes to the condensed consolidated financial statements, covering company and group information, basis of preparation, accounting policies, and financial risk management. Company and Group Information Yida China Holdings Limited was incorporated in the Cayman Islands in 2007 and primarily engages in property development, property investment, business park operations management, and construction in mainland China. - The Company was incorporated in the Cayman Islands on November 26, 2007, as an investment holding company[108] - The Group primarily engages in property development, property investment, business park operations management, property construction, decoration, and landscaping in mainland China[108] - The holding company is Jiayou (International) Investment Co., Ltd., and the ultimate holding company is China Minsheng Investment Corp., Ltd[108] Basis of Preparation The condensed consolidated financial statements are prepared in accordance with HKAS 34 and should be read in conjunction with the annual consolidated financial statements, with significant going concern uncertainties highlighted. - As of June 30, 2025, the Group's current liabilities exceeded current assets by RMB 11.585 billion, with current borrowings of RMB 11.552 billion and cash and cash equivalents of only RMB 186 million[110] - As of June 30, 2025, borrowings with an aggregate principal amount of RMB 6.445 billion remained unsettled[110] - Dalian Shengbei Development Co., Ltd., a subsidiary, failed to repay overdue loan principal of approximately RMB 194 million, resulting in an enforcement notice from the Shanghai Financial Court[110] - The Group failed to fulfill its settlement agreement with Andu, with an outstanding balance (including accrued interest) of RMB 1.523 billion payable to Andu, which may file a winding-up petition with the court[111] - These default events could lead to immediate repayment demands for certain other borrowings totaling RMB 5.107 billion[111] - Management has formulated plans and measures, including negotiating with Andu, renewing and extending loan repayments with lenders, accelerating property sales and collections, and seeking asset disposals, to mitigate liquidity pressure[112][114] - Despite mitigation measures, significant uncertainties remain regarding the Group's ability to continue as a going concern[115][118] Accounting Policies The accounting policies adopted in these condensed consolidated financial statements are consistent with those of the 2024 annual consolidated financial statements, with no material impact from new or revised HKFRSs. - The accounting policies adopted in preparing the condensed consolidated financial statements are consistent with those of the 2024 annual consolidated financial statements, with no material impact or retrospective adjustments required[116] - There are no new or revised Hong Kong Financial Reporting Standards, amendments to existing standards, or interpretations that are not yet effective and are expected to have a significant impact on the Group's financial position and operating results[117] Critical Accounting Judgments and Key Sources of Estimation Uncertainty The preparation of condensed consolidated financial statements requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and reported amounts. - The preparation of financial statements requires management to make judgments, estimates, and assumptions, and actual results may differ from these estimates[119] - The significant judgments and estimates made during the period are consistent with those applied in the 2024 annual financial statements[119] Financial Risk Management Objectives and Policies The Group faces market, interest rate, foreign currency, credit, and liquidity risks, which are monitored, but no foreign currency hedging policy is currently in place. Market Risk The Group's assets primarily consist of land held for development for sale, investment properties, properties under development, and completed properties held for sale, which may not be immediately realizable if the property market significantly declines. - The Group's assets are primarily property-related, and a significant downturn in the property market may prevent immediate realization of these assets[121] Interest Rate Risk The Group's primary interest rate risk stems from long-term debt obligations, with floating-rate borrowings exposed to cash flow interest rate risk and fixed-rate borrowings to fair value interest rate risk. - The Group's primary interest rate risk relates to long-term debt obligations, with floating-rate borrowings exposed to cash flow interest rate risk and fixed-rate borrowings to fair value interest rate risk[123] - The Group does not use any interest rate swaps to hedge interest rate risk[123] Interest Rate Sensitivity Analysis (Impact on Loss Before Income Tax) | Currency | Basis Point Increase/(Decrease) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | | RMB | 50 | (1,425) | | RMB | (50) | 1,425 | Foreign Currency Risk The Group's functional currency is RMB, but it holds USD and HKD-denominated short-term deposits and borrowings, exposing it to foreign currency risk, with no current hedging policy. - The Group's functional currency is RMB, but it holds USD and HKD-denominated financial assets and liabilities, exposing it to foreign currency risk[126] - The Chinese government imposes controls on the conversion of RMB into foreign currencies and the remittance of foreign currencies out of mainland China, which may affect the Group's ability to obtain necessary foreign exchange[125][126] - The Group currently has no foreign currency hedging policy[127] - A 9% depreciation/appreciation of RMB against USD would result in an increase/decrease in loss before income tax for the period of RMB 272 million, respectively[127] Credit Risk The Group's credit risk primarily arises from trade receivables and other receivables, managed through expected credit loss provisions. - The Group's credit risk primarily arises from trade receivables and other receivables, managed through expected credit loss provisions[128] Impairment Provision for Trade Receivables (June 30, 2025) | Ageing | Expected Loss Rate | Gross Carrying Amount (RMB thousand) | Expected Credit Loss Provision (RMB thousand) | | :--- | :--- | :--- | :--- | | Within one year | 7.34% | 276,059 | 20,267 | | One to two years | 15.54% | 71,559 | 11,120 | | Over two years | 74.39% | 141,621 | 105,356 | | Total | | 489,239 | 136,743 | Impairment Provision for Other Receivables (June 30, 2025) | Category | Expected Credit Loss Rate | Gross Carrying Amount (RMB thousand) | Loss Provision (RMB thousand) | | :--- | :--- | :--- | :--- | | Amounts due from related parties (Stage 1) | 0.10% | 32,222 | (32) | | Receivables for primary land development (Stage 3) | 52.85% | 737,321 | (389,697) | | Others (Stage 1) | 0.94% | 318,597 | (2,996) | | Others (Stage 3) | 73.93% | 139,858 | (103,392) | | Total | | 1,227,998 | (496,117) | Liquidity Risk The Group monitors funding shortage risk using liquidity planning tools and balances funding through bank and other borrowings, with most financial liabilities due within one year or on demand. - The Group uses liquidity planning tools to monitor funding shortage risk and balances funding through bank and other borrowings[135] Maturity Analysis of Financial Liabilities (June 30, 2025) | Liability Category | On Demand or Within One Year (RMB thousand) | Second Year (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | | Interest-bearing Bank and Other Borrowings | 12,064,690 | 56,674 | 12,121,364 | | Trade Payables | 3,488,702 | – | 3,488,702 | | Other Payables and Accrued Charges | 5,004,493 | – | 5,004,493 | | Lease Liabilities | 2,416 | 1,501 | 9,068 | | Total | 20,560,301 | 58,175 | 20,623,627 | | Maximum Amount of Financial Guarantees Issued | 181,163 | – | 181,163 | Capital Management The Group's capital management aims to ensure continuous operation, maintain a sound capital ratio, and generate returns for shareholders, with a net gearing ratio of 168.6% as of June 30, 2025. - Capital management objectives are to ensure the ability to continue as a going concern, maintain a sound capital ratio, and generate returns for shareholders[137] - The Group monitors capital using the net gearing ratio, calculated as net debt divided by total equity[137] Net Gearing Ratio | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Debt | 11,164,473 | 11,297,082 | | Total Equity | 6,622,218 | 7,400,975 | | Net Gearing Ratio | 168.6% | 152.6% | Operating Segment Information The Group is organized into five reportable operating segments: property development, property investment, business park operations management, construction, decoration and landscaping, and other segments, with management monitoring each segment's performance for resource allocation. - The Group is divided into five reportable operating segments: property development, property investment, business park operations management, construction, decoration and landscaping, and other segments[138][140] Segment Results (For the six months ended June 30, 2025) | Segment | Revenue (RMB thousand) | Segment Results (RMB thousand) | | :--- | :--- | :--- | | Property Development | 212,200 | (218,963) | | Property Investment | 216,387 | 22,900 | | Business Park Operations Management | 86,889 | (587) | | Construction, Decoration and Landscaping | 184,932 | (5,296) | | Others | – | (1,389) | | Total | 700,408 | (203,335) | - No geographical information is presented as all external customer revenue and most segment assets are located in mainland China[142] Revenue The Group's revenue sources include property sales, rental income, business park operations management services, and construction, decoration and landscaping, totaling RMB 700 million for the six months ended June 30, 2025. - Revenue sources include property sales, rental income, business park operations management service income, and construction, decoration and landscaping income[143] Revenue Analysis (For the six months ended June 30, 2025) | Revenue Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from contracts with customers recognized at a point in time (Property sales) | 212,200 | 175,623 | | Revenue from contracts with customers recognized over time (Services) | 271,821 | 247,644 | | Revenue from other sources (Rental) | 216,387 | 243,798 | | Total Revenue | 700,408 | 667,065 | Other Income For the six months ended June 30, 2025, the Group's other income totaled RMB 2.641 million, primarily comprising interest income and government grants, representing a decrease from the same period in 2024. Other Income Breakdown (For the six months ended June 30, 2025) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Income | 436 | 444 | | Government Grants | 2,205 | 4,721 | | Total | 2,641 | 5,165 | Expenses by Nature For the six months ended June 30, 2025, the Group's total cost of sales, selling and marketing expenses, and administrative expenses amounted to RMB 679 million, a significant increase from RMB 559 million in the prior year. Analysis of Expenses by Nature (For the six months ended June 30, 2025) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Properties Sold | 257,497 | 171,599 | | Cost of Other Services Provided | 250,659 | 239,260 | | Direct Operating Expenses Arising from Investment Properties that Generate Rental Income | 92,551 | 66,859 | | Employee Benefit Expenses | 30,955 | 34,505 | | Depreciation | 5,317 | 6,602 | | Amortization of Intangible Assets | 1,573 | 2,585 | | Advertising | 2,605 | 2,106 | | Other Fees and Expenses | 37,346 | 34,388 | | Total | 679,379 | 559,336 | Other Net Losses For the six months ended June 30, 2025, the Group recorded other net losses of approximately RMB 102 million, a significant increase from RMB 58.461 million in the prior year, primarily due to late payment penalties. Other Net Losses Breakdown (For the six months ended June 30, 2025) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Foreign Exchange Gain/(Loss) | 14,307 | (19,590) | | Late Payment Penalties | (119,748) | – | | Others | 3,641 | (38,871) | | Total | (101,800) | (58,461) | - The increase in other net losses was mainly due to RMB 119 million in late payment penalties incurred during the period[147] Finance Costs For the six months ended June 30, 2025, the Group's finance costs totaled RMB 505 million, an increase from RMB 400 million in the prior year, primarily due to higher interest on bank and other borrowings and reduced capitalized interest. Finance Costs Breakdown (For the six months ended June 30, 2025) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 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 | - The increase in finance costs was mainly due to higher interest expenses and reduced capitalized interest[148] Income Tax Expense For the six months ended June 30, 2025, the Group's income tax expense significantly increased to RMB 70.01 million, a 332.4% rise from RMB 16.191 million in the prior year, primarily due to higher land appreciation tax provision. Income Tax Expense Analysis (For the six months ended June 30, 2025) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | China Corporate Income Tax | 9,982 | 7,418 | | China Land Appreciation Tax | 90,190 | (494) | | Deferred Tax (Current Period) | (30,162) | 9,267 | | Total Tax Expense for the Period | 70,010 | 16,191 | - The significant increase in income tax expense was mainly due to higher land appreciation tax provision resulting from land appreciation tax settlement for properties sold during the period[150] Interim Dividend The Company resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year. - The Company resolved not to declare any interim dividend for the six months ended June 30, 2025[151] Loss Per Share Attributable to Ordinary Equity Holders of the Company For the six months ended June 30, 2025, the basic and diluted loss per share attributable to ordinary equity holders of the Company was RMB 30.01 cents, an increase from RMB 13.94 cents in the prior year. Loss Per Share (For the six months ended June 30, 2025) | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic and Diluted Loss Per Share | (30.01) | (13.94) | - The calculation of basic loss per share is based on the loss for the period attributable to ordinary equity holders of the Company of RMB 776 million and the weighted average of 2.584 billion ordinary shares in issue during the periods[152] Property, Plant and Equipment As of June 30, 2025, buildings valued at RMB 9.883 million were pledged to financial institutions as security for loans granted to the Group. - As of June 30, 2025, buildings valued at RMB 9.883 million were pledged to financial institutions as security for loans granted to the Group[153] Investment Properties As of June 30, 2025, the Group's investment properties totaled RMB 16.207 billion, slightly down from the beginning of the year, with a net fair value adjustment loss of RMB 124 million due to tenant departures. Movement in Investment Properties (As of June 30, 2025) | Item | Amount (RMB thousand) | | :--- | :--- | | At January 1, 2025 | 16,340,772 | | Additions | 152 | | Disposals | (10,486) | | Net Loss from Fair Value Adjustment | (123,899) | | At June 30, 2025 | 16,206,539 | - The net loss from fair value adjustment was mainly due to business relocation of certain international clients and cost-saving requirements by some clients to move operations to lower-cost regions, leading to multiple tenant departures from the parks during the period[52][154] - Investment properties valued at RMB 14.130 billion were pledged to banks as collateral for loans granted to the Group[154] - Some investment properties are subject to sale and transfer restrictions, requiring them to be held for at least 15 years[155] Land Held for Development for Sale As of June 30, 2025, the Group's land held for development for sale had a carrying amount of RMB 790 million, with RMB 728 million pledged to banks as security for loans. Movement in Land Held for Development for Sale (As of June 30, 2025) | Item | Amount (RMB thousand) | | :--- | :--- | | Carrying amount at beginning of period/year | 789,963 | | Additions | 486 | | Carrying amount at end of period/year | 790,449 | - Land held for development for sale valued at RMB 728 million was pledged to banks as security for bank and other loans granted to the Group[157] Prepayments, Deposits and Other Receivables As of June 30, 2025, the Group's total carrying amount of prepayments, deposits, and other receivables was RMB 1.203 billion, with a non-current portion of RMB 348 million. Prepayments, Deposits and Other Receivables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Prepayments | 471,373 | 467,137 | | Gross Deposits and Other Receivables | 1,227,998 | 1,344,453 | | Less: Impairment Provision | (496,117) | (496,580) | | Carrying Amount at End of Period/Year | 1,203,254 | 1,315,010 | | Current Portion | (855,630) | (948,173) | | Non-current Portion | 347,624 | 366,837 | - Other receivables include amounts due from associates of RMB 32.149 million and amounts due from joint ventures of RMB 5.98 million[158][159] - Other receivables include amounts advanced to local government authorities for primary land development of certain land parcels in Dalian, China, totaling RMB 348 million[159] Trade Receivables As of June 30, 2025, the Group's total trade receivables amounted to RMB 558 million, with an impairment provision of RMB 182 million, resulting in a net amount of RMB 375 million. Trade Receivables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Gross Trade Receivables | 557,623 | 502,814 | | Less: Impairment Provision | (182,493) | (180,428) | | Net Amount | 375,130 | 322,386 | Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within one year | 276,059 | 205,416 | | One to two years | 71,559 | 54,475 | | Over two years | 210,005 | 242,923 | | Total | 557,623 | 502,814 | Cash and Cash Equivalents and Restricted Cash As of June 30, 2025, the Group's total cash and bank balances were RMB 441 million, comprising restricted cash of RMB 255 million and cash and cash equivalents of RMB 186 million. Cash and Cash Equivalents and Restricted Cash (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 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 includes guarantee deposits from property pre-sale proceeds placed in designated bank accounts (RMB 24.82 million) and deposits placed in designated bank accounts according to contracts and local government regulations (RMB 230 million)[164] Contract Liabilities The Group's contract liabilities primarily represent amounts received from pre-sale property buyers and amounts payable to contract customers at the end of the reporting period. - Contract liabilities primarily represent amounts received from pre-sale property buyers and amounts payable to contract customers[163] Contract Liabilities (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Contract Liabilities | 1,367,420 | 1,253,652 | Trade Payables As of June 30, 2025, the Group's total trade payables were RMB 3.489 billion, an increase from RMB 3.345 billion at the end of 2024, with a significant portion due within one year. Ageing Analysis of Trade Payables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 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 | - Trade payables are interest-free and unsecured[165] Other Payables and Accrued Charges As of June 30, 2025, the Group's total other payables and accrued charges amounted to RMB 5.581 billion, an increase from RMB 5.047 billion at the end of 2024, including RMB 1.523 billion payable to Andu. Other Payables and Accrued Charges (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Employee Benefits Payable | 107,995 | 108,514 | | Accrued Charges | 2,027,155 | 1,716,610 | | Other Payables | 3,445,752 | 3,221,620 | | Carrying Amount at End of Period/Year | 5,580,902 | 5,046,744 | - Other payables include amounts due to Andu of RMB 1.523 billion, bearing an annual interest rate of 21.9%, and the Group's failure to fulfill the settlement agreement may lead to a winding-up petition by Andu[166] Interest-bearing Bank and Other Borrowings As of June 30, 2025, the Group's total interest-bearing bank and other borrowings were RMB 11.605 billion, with the current portion being RMB 11.552 billion, largely due within one year or on demand. Interest-bearing Bank and Other Borrowings (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current | | | | Secured Bank Loans | 5,072,665 | 5,340,153 | | Secured Other Borrowings | 4,263,965 | 4,119,741 | | Unsecured Other Borrowings | 2,215,181 | 2,158,452 | | Non-current | | | | Unsecured Other Borrowings | 53,534 | 52,538 | | Total | 11,605,345 | 11,670,884 | - The current portion includes principal amounts of RMB 2.544 billion of borrowings originally due after June 30, 2026, reclassified as current liabilities due to going concern uncertainties[168] - Certain bank and other loans of the Group are secured by properties under development, investment properties, land held for development for sale, completed properties held for sale, buildings, or corporate guarantees[170] - The senior notes defaulted due to failure to pay consent fees and interest, leading to accelerated repayment, with a carrying amount of RMB 1.782 billion[168][169] - Other borrowings include loans from related parties (Shanghai Jiayue Medical Investment Management Co., Ltd. and Jiahua (Holdings) Investment Co., Ltd.) with a principal amount of RMB 663 million[170] Share Capital As of June 30, 2025, the Company's authorized share capital was 50 billion shares of US$0.01 par value each, with 2.584 billion issued and fully paid ordinary shares, totaling RMB 159 million. Share Capital (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Authorized Share Capital (50 billion shares of US$0.01 par value each) | 3,124,300 | 3,124,300 | | Issued and Fully Paid Share Capital (2.584 billion shares of US$0.01 par value each) | 159,418 | 159,418 | Financial Guarantees As of June 30, 2025, the Group's financial guarantees included a maximum liability of RMB 132 million for property buyers' mortgage financing and RMB 48.781 million for joint venture bank loans. - The Group's maximum liability for mortgage financing provided to property buyers is RMB 132 million[172] - The Group provided guarantees for bank loans granted to its joint ventures amounting to RMB 48.781 million[172] - The Directors believe that the fair value of the financial guarantee contracts was not material upon initial recognition, and the likelihood of default is very low, thus no value has been recognized[173] Pledged Assets The Group's bank and other loans are secured by various pledged assets, as detailed in Note 24, "Interest-bearing Bank and Other Borrowings". - The Group's bank and other loans are secured by various pledged assets, details of which are set out in Note 24[174] Operating Lease Arrangements as Lessor The Group leases out its investment properties under operating lease arrangements with lease terms ranging from one to twenty years, with total future minimum rentals receivable of RMB 740 million as of June 30, 2025. - The Group leases out its investment properties under operating lease arrangements, with lease terms ranging from one to twenty years[175] Total Future Minimum Rentals (As of June 30, 2025) | Period | Amount (RMB thousand) | | :--- | :--- | | Within one year | 213,293 | | In the second to fifth years | 319,289 | | After five years | 207,187 | | Total | 739,769 | Commitments As of June 30, 2025, the Group's total contracted but unprovided capital commitments amounted to RMB 3.126 billion, primarily for capital expenditures on investment properties under construction and properties under development in mainland China. Capital Commitments (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Capital expenditure for investment properties under construction and properties under development | 3,120,765 | 3,285,535 | | Capital contribution to a joint venture | 5,040 | 5,040 | | Total | 3,125,805 | 3,290,575 | Related Party Transactions Aside from transactions already detailed in other sections of the condensed consolidated financial statements, there were no other significant related party transactions for the six months ended June 30, 2025 and 2024. - Aside from the transactions already detailed, there were no other significant related party transactions during the period[178] Financial Instruments by Category As of June 30, 2025, the Group's total financial assets measured at amortized cost were RMB 1.548 billion, while total financial liabilities measured at amortized cost were RMB 20.105 billion. Financial Assets Measured at Amortized Cost (As of June 30, 2025) | Item | Amount (RMB thousand) | | :--- | :--- | | Trade Receivables | 375,130 | | Deposits and Other Receivables | 731,881 | | Restricted Cash | 254,919 | | Cash and Cash Equivalents | 185,953 | | Total | 1,547,883 | Financial Liabilities Measured at Amortized Cost (As of June 30, 2025) | Item | Amount (RMB thousand) | | :--- | :--- | | Trade Payables | 3,488,702 | | Other Payables and Accrued Charges | 5,004,493 | | Interest-bearing Bank and Other Borrowings | 11,605,345 | | Lease Liabilities | 6,714 | | Total | 20,105,254 | Fair Value and Fair Value Hierarchy of Financial Instruments As of June 30, 2025, the Group's assets measured at fair value primarily consisted of investment properties, totaling RMB 15.695 billion, all classified as Level 3 in the fair value hierarchy. Assets Measured at Fair Value (June 30, 2025) | Item | Level 1 (RMB thousand) | Level 2 (RMB thousand) | Level 3 (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Investment Properties | – | – | 15,694,768 | 15,694,768 | - The fair value measurement of investment properties uses internal valuations and involves external valuers, classified as Level 3 in the fair value hierarchy[184][185] - The fair values of other receivables and the non-current portion of interest-bearing bank and other borrowings approximate their carrying amounts[183] Definitions This section provides definitions for key terms and abbreviations used in the report to ensure a clear understanding of its content