Economic Overview - In 2022, China's total economic output exceeded RMB 120 trillion, with GDP growth reaching 3% despite global economic challenges [15]. - The economic outlook for China in 2023 is expected to accelerate, achieving high-quality development despite global recession concerns [27]. Real Estate Market Trends - The sales value of commodity properties in China decreased by 26.7% to RMB 13 trillion, and the area of newly commenced residential properties dropped by 40% year-on-year [16]. - The real estate industry faced unprecedented challenges, with adjustments deeper and longer than expected, prompting local governments to implement measures to boost market confidence [16]. - Contracted sales amounted to RMB 50.2 billion, reflecting an 11% year-on-year decrease, which is a smaller decline compared to the industry average of over 40% [19]. - The average price of the Group's contracted sales increased by 16% year-on-year, driven by higher sales contributions from high-capacity cities [21]. - The Yangtze River Delta region accounted for 49% of total sales, with RMB 24.7 billion in sales, while the Pearl River Delta contributed 17% with RMB 8.6 billion [61]. Company Performance - The Group recorded a profit attributable to shareholders of RMB 816 million for the year, representing a year-on-year decrease of 60.4% [18]. - The Group recorded a revenue of RMB 41,127 million for the year ended December 31, 2022, representing a 35.7% increase compared to RMB 30,305 million in 2021 [55]. - Profit attributable to shareholders decreased by 60.4% to RMB 816 million in 2022, down from RMB 2,059 million in 2021 [55]. - Basic and diluted earnings per share were both RMB 21.71 cents, reflecting a year-on-year decrease of 61.2% [55]. Development Strategy - The Group operates in 30 major cities, including Shanghai, Hong Kong, and Guangzhou, focusing on high-quality residential and commercial property development [9]. - The Group's development strategy emphasizes professionalism, market orientation, and internationalism, aiming to enhance architectural quality and commercial value [3]. - The Group aspires to be a leading Chinese property developer with a renowned brand backed by cultural substance [2]. - The Group's mission includes creating a pleasant living environment for clients while delivering satisfactory returns to shareholders [3]. Project Development and Land Reserves - The Group acquired 10 development projects in key cities, including Shanghai and Shenzhen, and entered the Changshu market for the first time [21]. - By the end of 2022, the Group's land reserves in the Yangtze River Delta and Greater Bay Area accounted for 43%, an increase of 3 percentage points from the previous year [21]. - The Group has 73 projects under construction or planning, representing a total GFA of approximately 19,167,000 square meters [56]. - The total gross floor area (GFA) of newly commenced construction was approximately 2,746,000 square meters, while the GFA of construction completed was approximately 4,765,000 square meters [56]. Financial Management - The implementation of the "three arrows" policy allowed the Group to increase direct financing, obtaining approvals for RMB 10 billion in corporate bonds and RMB 5 billion in medium-term notes [23]. - The average funding cost was reduced by 26 basis points to 4.27%, with the proportion of trust loans and short-term debt both declining by 4 percentage points year-on-year [23]. - As of December 31, 2022, the Group's shareholders' equity amounted to RMB 32.9 billion, an increase from RMB 31.5 billion in 2021 [55]. - The Group's total assets amounted to RMB 203.1 billion [11]. Corporate Governance - The Board consists of three executive directors, one non-executive director, and four independent non-executive directors, ensuring a balance of power [178]. - The Company has complied with the Corporate Governance Code throughout the year, except for code provision F.2.2 regarding the attendance of the Chairman at the Annual General Meeting due to COVID-19 measures [174]. - The Nomination Committee is responsible for ensuring diversity in the Board's composition, considering factors such as gender, age, and professional qualifications [191]. - The Company values gender equality and maintains a reasonable gender ratio among all employees, reflecting the nature of its operations [193]. Employee Management - The Group employed approximately 9,220 employees with total remuneration of about RMB 1,497 million for the year [169]. - As of December 31, 2022, the total number of employees is 9,220, an increase of 4.05% from 8,862 on December 31, 2021 [197]. - The male employee count increased to 5,184, representing 56% of the total workforce, compared to 3,909 (44%) in the previous year [197]. - The female employee count decreased to 4,036, representing 44% of the total workforce, down from 4,953 (56%) in the previous year [197].
保利置业集团(00119) - 2022 - 年度财报