SHUI ON LAND(HK:00272)2023-04-21 06:55Financial Performance - Total revenue for 2022 was RMB 15,565 million, a decrease of 11.3% from RMB 17,555 million in 2021[13]. - Basic earnings per share for 2022 were RMB 11.3 cents, down from RMB 20.3 cents in 2021[18]. - The proposed final dividend for 2022 is HKD 0.064 per share, compared to HKD 0.084 per share in 2021[18]. - In 2022, the company recorded a net profit of RMB 1.475 billion, with profit attributable to shareholders at RMB 906 million, reflecting a decrease compared to the previous year due to rental concessions and currency depreciation during the Shanghai lockdown[32]. - The company reported a significant increase in investment capabilities and performance under the leadership of the Chief Financial Officer, who has over 20 years of experience in the Asian real estate sector[47]. - The company reported a net profit of RMB 1.475 billion for 2022, with a profit attributable to shareholders of RMB 906 million[92]. - Revenue decreased by 11% to RMB 15.565 billion in 2022, down from RMB 17.555 billion in 2021, primarily due to delays in construction and delivery of residential units[92]. - The gross profit for 2022 was RMB 1,924 million, reflecting a 7% decline compared to the previous year[118]. - The annual profit for 2022 was RMB 1.475 billion, down from RMB 2.208 billion in 2021[140]. - The company's attributable profit to shareholders was RMB 906 million, a decrease of 45% compared to RMB 1,636 million in 2021[141]. Property Development and Sales - Property development revenue was RMB 11,695 million, down 14.2% from RMB 13,638 million in the previous year[13]. - The group achieved a total contracted property sales amount of RMB 27.2 billion in 2022[23]. - The total contracted property sales amounted to RMB 27.2 billion in 2022, down from RMB 30.3 billion in 2021, indicating strong market demand for the company's unsold properties[32]. - The company achieved total contracted property sales of RMB 27.219 billion, with residential property sales amounting to RMB 25.783 billion and commercial property sales at RMB 1.436 billion[33]. - The company confirmed that the sales from the Wuhan Tianji project contributed RMB 436 million in residential sales in 2022[100]. - The total sales revenue from delivered units in the Shanghai Ruihong New City project reached RMB 10.291 billion as of December 31, 2022[105]. - The total sales revenue for the residential units in the project "Zhongliang Ruihong • Haijing No. 1" reached RMB 10.291 billion, with all 609 units sold by December 31, 2022[73]. - The total construction area for the new project in Shanghai Yangpu is 23,791.32 square meters, with a purchase price of RMB 2.376 billion[72]. Financial Management and Debt - The net asset liability ratio was maintained at a stable level of 45%[22]. - The company signed a RMB 10 billion cooperation memorandum with Shanghai Pudong Development Bank for M&A financing[22]. - The group repaid or refinanced a total of RMB 6.797 billion in borrowings during the year[22]. - The company redeemed USD 600 million of 6.40% perpetual capital securities in June 2022, increasing the net debt-to-equity ratio to 45% from 30% as of December 31, 2021[92]. - The company's net debt as of December 31, 2022, was RMB 20.144 billion, an increase from RMB 14.579 billion in 2021[147]. - The net asset liability ratio increased to 45% in 2022 from 30% in 2021, primarily due to the redemption of USD 600 million in perpetual capital securities[147]. Sustainability Initiatives - The company reduced carbon emissions intensity by 27.5% and energy consumption intensity by 12.2% compared to 2021, demonstrating commitment to sustainability[24]. - 95% of the company's commercial property area has received green certification, highlighting its focus on sustainable development[24]. - The company signed a green covenant with 100 suppliers to create a green supply chain, further enhancing its sustainability initiatives[24]. - The company joined the "Business With Purpose 2022" platform to further integrate sustainability into its corporate activities[24]. - The company has committed to reducing carbon emissions in line with the Science Based Targets initiative, aiming to limit global temperature rise to below 1.5ºC[35]. - The company aims to enhance employee awareness of its sustainable development vision, with approximately 99% of relevant employees completing training related to environmental, social, and governance issues in 2022[192]. Market Conditions and Outlook - The real estate market in China is expected to undergo a period of adjustment, with cautious buyers and some developers facing liquidity issues, although there are signs of slight recovery in transactions[37]. - The government is easing property market regulations to improve developers' asset-liability ratios and restore market confidence, as seen in Wuhan's recent relaxation of purchase restrictions[37]. - The Chinese government's optimization of pandemic control policies in December 2022 led to a 12.2% increase in sales revenue for consumer-related industries during the Spring Festival in January 2023 compared to the previous year[37]. - The overall economic outlook for 2023 remains cautious, with the government announcing a growth target of around 5% due to uncertainties in the global economy[151]. Corporate Governance - The board consists of 11 members, including 4 executive directors and 7 independent non-executive directors, with independent directors accounting for approximately 64% of the board[163]. - The company ensures that independent non-executive directors can seek independent advice to maintain their independence and effectiveness[158]. - The board's diversity policy is reviewed annually by the nomination committee to assess its implementation and effectiveness[162]. - The company has received annual confirmations of independence from all independent non-executive directors, affirming their ability to make independent judgments[159]. - The company is committed to creating a diverse and inclusive work environment, prohibiting any form of discrimination[172]. Investment Properties - As of December 31, 2022, the fair value of the group's investment properties (excluding hotels and self-used properties) was RMB 96.513 billion, with a total built area of 2,635,700 square meters[110]. - The total built area of the group's land reserves was 9.3 million square meters, including 6.8 million square meters available for lease and sale, and 2.5 million square meters for clubhouses, parking lots, and other facilities[112]. - The completed investment properties had a total rental area of 1,376,200 square meters, with a fair value increase of RMB 98 million in 2022[111]. - The group reported a fair value decrease of RMB 596 million across its total investment properties in 2022, representing a 0.6% decline[111]. Board and Management Structure - The company has a diverse board with members holding multiple degrees and significant experience in finance and management, enhancing its decision-making capabilities[50]. - The independent non-executive director has extensive academic and professional credentials, contributing to the company's governance and strategic oversight[48]. - The company has appointed Wang Ying as the CEO effective January 1, 2022, separating the roles of Chairman and CEO for clearer responsibilities[161]. - The company emphasizes continuous professional development for directors, providing updates on legal and regulatory developments[174].