Property Development Projects - As of June 30, 2022, the Group had 32 completed property projects and 64 ongoing complex property projects, with a total of 122 land parcels under development and planning, covering an aggregate site area of approximately 5.08 million square meters and an estimated gross floor area of approximately 10.38 million square meters in the PRC [17]. - The estimated saleable/leasable gross floor area under development is approximately 6.86 million square meters, with an estimated gross floor area under planning of approximately 3.82 million square meters [17]. - The Group's completed property projects include various residential and commercial developments, with specific projects like Zhengthou Zensun Scholar Garden and Zensun River Valley Phase I having gross floor areas of 100,662 square meters and 138,845 square meters respectively [19]. - The company reported a total completed saleable GFA of approximately 295,889 square meters for the Xiuchang Zensun Scholar Mansion project, with an estimated saleable GFA under development of 9,429 square meters [29]. - The Zhengzhou Zensun Longshui project has a total site area of approximately 58,238 square meters, with an estimated saleable GFA under planning of 250 square meters [29]. - The company has completed residential projects with a total area of 1,27,618 square meters, with ongoing developments expected to add significant saleable area in the coming quarters [29]. - The estimated saleable GFA for the Rong Garden project is 45,126 square meters, indicating strong potential for future revenue generation [29]. - The company aims to complete several residential and commercial projects by the end of 2030, enhancing its market presence and revenue streams [29]. - The total aggregated GEA for the completed projects is reported at 305,118 square meters, reflecting the company's growth in property development [29]. - The company has a strategic focus on residential and commercial developments, with 100% of the projects being residential or mixed-use [29]. - The estimated saleable GFA for the Xiang Garden project is 96,465 square meters, showcasing the company's commitment to expanding its portfolio [29]. - The company is actively pursuing new projects, with several under development expected to contribute to future earnings [29]. - The company reported a significant increase in completed projects, indicating a robust pipeline and effective project management strategies [29]. - The company reported a total site area of approximately 58,214 square meters for the Beijing Zensun Grand Garden project, with a completed saleable area of 89,017 square meters [32]. - The Xuchang Zensun Golden Mile House project has an estimated completion time from Q4 2021 to Q4 2022, with a total site area of 60,348 square meters and a completed saleable area of 37,258 square meters [32]. - The Zhengshou Zensun International Building project is expected to be completed in Q4 2021, covering a total site area of 13,442 square meters with a completed saleable area of 107,388 square meters [32]. - The company has several projects under development, including the Zensun River Valley Commercial Centre, which is expected to be completed in Q2 2023 with a total site area of 28,062 square meters [35]. - The Dengleng Zensun City project is projected to have a total site area of 43,738 square meters, with an estimated completion date in Q2 2025 [35]. - The company is planning new projects, including the Dengleng Ilansun Chy Jing Garden, which has a total site area of 40,773 square meters and is expected to be completed in Q4 2025 [35]. - The estimated saleable area for the Zensun River Kome Lone project is 14,647 square meters, with a completion date set for Q4 2025 [35]. - The company has a total of 100% residential and commercial projects in various stages of development, indicating a strong focus on market expansion [32]. - The estimated saleable area under planning for the Dengleng Ilansun Chy Rui Garden is 55,405 square meters, with a completion date in Q4 2022 [35]. - The company reported a significant increase in the total site area for its projects, reflecting ongoing market expansion efforts [32]. - The company reported a total site area of approximately 1,142,364 square meters for completed saleable/leasable GEA [39]. - Estimated saleable/leasable GEA under development is approximately 1,142,364 square meters, indicating significant ongoing projects [39]. - The company has a total of 6000 projects under development, showcasing its extensive market presence [40]. - The estimated completion for several projects is set between the 4th quarter of 2022 and the 3rd quarter of 2029, indicating a long-term growth strategy [39]. - The company is focusing on 100% residential and commercial developments, reflecting a diversified portfolio [40]. - The total aggregated GEA for ongoing projects is approximately 367,163 square meters, highlighting the scale of operations [40]. - The company plans to expand its residential and commercial offerings in various regions, including Zhengzhou and Xinxiang County [40]. - The estimated GFA under planning is approximately 1,40,227 square meters, indicating future growth potential [40]. - The company aims to enhance its market position through strategic project developments and expansions in key urban areas [40]. - The company is committed to delivering high-quality residential and commercial spaces, with a focus on sustainability and community integration [40]. - The company reported a total site area of approximately 1,000,000 square meters under development, with an estimated completion time ranging from 2023 to 2034 [48]. - The residential projects under development include Zensun Xin Harbour Home, with a total saleable area of approximately 212,485 square meters, expected to be completed by the 4th quarter of 2024 [48]. - The company has a project in Beijing, Zensun Xinghai Court, with a total site area of 108,979 square meters, projected to be completed in the 4th quarter of 2023 [48]. - Xinmi Zensun City Xiang Garden is expected to have a saleable area of 132,451 square meters, with completion anticipated in the 2nd quarter of 2023 [48]. - Denglang Zensun Ningha Mansion is projected to have a total site area of 76,879 square meters, with completion expected in the 4th quarter of 2023 [48]. - The company is planning new projects with an estimated gross floor area under planning of approximately 406,418 square meters [52]. - The company aims to maintain a residential and commercial mix in its developments, with a focus on high occupancy rates [52]. - The estimated saleable area under development is approximately 188,047 square meters, indicating a strong pipeline for future revenue [52]. - The company is expanding its market presence with multiple projects across different cities, enhancing its portfolio and growth potential [52]. - The company reported a 100% completion rate for several residential projects, indicating strong execution capabilities [52]. - The company has several property projects under development, with a total estimated saleable area of approximately 1,000,000 square meters across various locations [56]. - The completion of the "Gongji Zensun Scholar Mansion" project is expected between Q2 2023 and Q4 2024, with an estimated saleable area of 140,822 square meters [56]. - The "Ruyang Zensun Scholar Court" project is projected to be completed in Q2 2023, offering a total saleable area of 89,411 square meters [56]. - The "Nanyang Zensun Scholar Court" project is anticipated to be completed by Q2 2029, with a saleable area of 88,480 square meters [56]. - The "Dengithou Zensun Kaiyue Mansion" project is set for completion in Q3 2029, with an estimated saleable area of 79,591 square meters [56]. - The "Huaxian Zensun Orchids Mansion" is expected to be completed in Q4 2023, providing a saleable area of 111,441 square meters [56]. - The company plans to expand its residential and commercial offerings, with a focus on projects that are 100% residential or mixed-use [56]. - The "Yichuan Zensun Yihe Horizons" project is scheduled for completion between Q4 2022 and Q2 2024, with a total saleable area of 299,480 square meters [66]. - The "Zhoukua Zensun/Golden MieHouse" project is expected to be completed in Q4 2025, with a saleable area of 158,834 square meters [66]. - The company is actively pursuing new strategies for market expansion and product development in the residential sector [66]. Financial Performance - For the six months ended June 30, 2022, the Group recorded revenue of approximately RMB3,941.0 million, a decrease of approximately 29.6% compared to RMB5,595.5 million for the corresponding period in 2021 [71]. - Gross profit for the same period was approximately RMB591.2 million, an increase of approximately 36.3% from RMB433.9 million in the prior year [71]. - The Group delivered approximately 343,000 square meters of saleable/leasable gross floor area (GFA) with an average selling price (ASP) of approximately RMB11,420 per square meter, compared to 367,000 square meters and RMB14,785 per square meter in 2021 [71]. - Net other losses amounted to approximately RMB210.5 million during the Period, compared to net other gains of approximately RMB13.2 million in the corresponding period of 2021 [71]. - The Group's sales and marketing expenses decreased by approximately 41.0% from approximately RMB120.3 million in 2021 to approximately RMB71.0 million in the Period [73]. - Administrative expenses decreased by approximately 19.2% from approximately RMB113.7 million in 2021 to approximately RMB91.9 million in the Period [73]. - Income tax expenses increased by approximately 63.7% from approximately RMB97.5 million in 2021 to approximately RMB159.6 million in the Period [74]. - The increase in income tax expenses was mainly due to higher operating net profits generated from completed property development projects delivered during the Period [74]. - The decrease in revenue was attributed to less delivery of saleable/leasable GFA and lower ASP from completed property development projects [71]. - The Group recognized certain higher profit margin property projects during the Period, contributing to the increase in gross profit [71]. - The Group's profit attributable to owners for the Period was approximately RMB63.3 million, a decrease of about 43.1% from approximately RMB111.3 million in 2021, with basic earnings per share dropping to approximately RMB3.3 cents from RMB5.8 cents [75]. - Revenue from property development in the PRC was approximately RMB3,913.5 million, down about 29.4% from RMB5,542.0 million in 2021, while segment profit increased to approximately RMB366.7 million from RMB124.6 million [80]. - The Group delivered approximately 343,000 sq.m. of GFA at an average selling price (ASP) of approximately RMB11,420 per sq.m., compared to 367,000 sq.m. at an ASP of RMB14,785 per sq.m. in 2021 [80]. - The Group's sales and marketing expenses decreased by approximately 41.0% to about RMB71.0 million from RMB120.3 million in 2021, and administrative expenses decreased by approximately 19.2% to about RMB91.9 million from RMB113.7 million [77]. - The Group recorded a write-down of properties under development and completed properties held for sale of approximately RMB30.0 million due to selling prices not meeting expected net realizable values, compared to RMB25.0 million in 2021 [82]. Financial Position and Liquidity - The Group maintained bank balances of approximately RMB 2,731.8 million, with a current ratio of approximately 1.2 and a gearing ratio decreased to 23.6% from 27.1% at the end of 2021 [101]. - The total cash and bank balances decreased from approximately RMB 3,512.5 million at the end of 2021 to approximately RMB 2,731.8 million as of June 30, 2022 [109]. - Pledged deposits amounted to approximately RMB 141.0 million as of June 30, 2022, down from approximately RMB 215.9 million at the end of 2021 [109]. - The Group's net debt was approximately RMB 16,175.7 million as of June 30, 2022, compared to approximately RMB 18,463.9 million at the end of 2021 [109]. - The Group's total borrowings amounted to approximately RMB 18,907.5 million, a decrease from RMB 21,976.5 million as of December 31, 2021 [111]. - Approximately RMB 14,051.7 million of the borrowings are repayable within one year, while RMB 4,855.8 million are due after one year [111]. - The Group repurchased US$67.5 million of the US$200 million 12.5% senior notes due 2022, representing approximately 33.8% of the originally issued notes [112]. - The Group's current ratio as of June 30, 2022, was approximately 1.2, unchanged from December 31, 2021, while the gearing ratio decreased to approximately 23.6% from 27.1% [119]. - Capital commitments related to property development expenditures were approximately RMB 9,606.9 million as of June 30, 2022, down from RMB 10,656.8 million as of December 31, 2021 [120]. - Contingent liabilities related to guarantees for mortgage facilities amounted to approximately RMB 19,220.1 million as of June 30, 2022, an increase from RMB 18,002.3 million as of December 31, 2021 [127]. - The Group's bank and other borrowings carried fixed interest rates ranging from 4.75% to 10.5% per annum, with floating rates linked to various international lending rates [113]. - As of June 30, 2022, the Group's secured borrowings were backed by investment properties and properties under development with a total carrying value of approximately RMB 14,656.0 million [114]. - Loans from a related company and amounts due to related companies were unsecured and interest-free as of June 30, 2022 [121]. - The Group continues to seek external financing sources to support its expansion strategy while maintaining its overall strategy from the previous year [118]. Corporate Governance and Management - The Group has received multiple awards for its employee remuneration policies and practices, enhancing employee morale and retention [135]. - The Group intends to manage its liquid assets to ensure sufficient cash flows for unexpected business needs [137]. - The Group aims to identify new property development projects and bid for land use rights in Zhengzhou City and other selective cities in the PRC [143]. - The Group's property development projects focus on providing "high quality" properties with both standard and deluxe designs [138]. - The Group has successfully secured 2 management contracts with independent property owners to expand its project management business [149]. - The Group aims to diversify to a light-asset model, reducing heavy investment costs in land acquisition and construction [149]. - The management remains cautiously optimistic about the long-term prospects of the real estate industry in the PRC [151]. - The company has adopted corporate governance practices based on the principles and code provisions of the Corporate Governance Code [195]. - The company believes that the dual role of the chairman and chief executive officer is in its best interest, despite deviation from the CG Code [197]. - The board will continue to review and monitor its corporate governance practices to maintain high standards [198]. Shareholding Structure - As of June 30, 2022, Mr. Zhang holds a spousal interest in 1,377,520,893 shares, representing approximately 71.99% of the issued share capital of the Company [162]. - Joy Town Inc. directly holds 1,377,520,893 shares, which are ultimately owned by a discretionary trust established by Ms. Huang [165]. - Vistra Trust (Singapore) Pte Limited acts as the trustee for the 1,377,520,893 shares, also representing 71.99% of the issued share capital [178]. - Superior Glory Enterprises Limited, Notable Reward Limited, and Zensun Group Limited each have a controlled corporation interest in 1,377,520,893 shares, accounting for 71.99% of the issued share capital [178]. - No other individuals, apart from the Directors, registered an interest of 5% or more in the issued share capital of the Company as of June 30, 2022 [180]. - Ms. Huang is the sole director of Joy Town Inc. and Notable Reward Limited, while Mr. Zhang is the sole director of Zensun Group Limited [170]. - The entire issued share capital of Superior Glory Enterprises Limited has become assets of the trust established by Ms. Huang [170]. - The Company has no other disclosed interests or short positions in shares or debentures as of June 30, 2022 [173]. - The interests of the Directors and chief executive are recorded in accordance with the Securities and Futures Ordinance [173]. - The Company maintains a register of interests in shares and underlying shares as required by the Securities and Futures Ordinance [174]. Debt Management and Repurchase Activities - The company repurchased a total of US$15,900,000 of the 2022 Notes, representing approximately 7.95% of the originally issued amount of US$200,000,000 [187]. - Between March 21, 2022, and June 22, 2022, the company repurchased an additional US$43,800,000 of the 2022 Notes, which is about 21.90% of the originally issued amount [192]. - On June 28, 2022, the company further repurchased US$7,800,000 of the 2022 Notes, representing approximately 3.90% of the originally issued amount [193]. - As of the interim report date, the total number of shares available for issue under the 2013 Scheme is 35,006,863 shares, which represents 1.8% of the company's issued share capital [187]. - There were no significant changes in the group's financial position since December 31, 2021, as disclosed in the interim report [183]. - The company has not granted, exercised, cancelled, or lapsed any share options under the 2013 Scheme during the reporting period [186].
正商实业(00185) - 2022 - 中期财报