Financial Performance - SOHO China achieved a revenue of approximately RMB 1.775 billion in 2022, representing a growth of about 1.9% compared to 2021[5]. - The gross profit for SOHO China in 2022 was approximately RMB 1.438 billion, reflecting a growth of 2.7% year-on-year[5]. - The total rental income for the year was approximately RMB 1.775 billion, representing a year-on-year increase of about 1.9% from RMB 1.742 billion in 2021[30]. - Gross profit for the year was approximately RMB 1.438 billion, up about 2.7% from RMB 1.400 billion in 2021, with a gross margin of approximately 81% compared to 80% in the previous year[30]. - The group reported a revenue of RMB 1,775,090,000 for 2022, a slight increase from RMB 1,741,739,000 in 2021, representing a growth of approximately 1.9%[42]. - The group achieved a profit before tax of RMB 507,821,000 in 2022, compared to RMB 264,792,000 in 2021, indicating a significant increase of approximately 92%[42]. - The net profit attributable to shareholders was RMB 61,208,000 in 2022, recovering from a loss of RMB 131,098,000 in 2021[42]. - The company reported a net profit of RMB 64,505 thousand for 2022, a significant recovery from a net loss of RMB 123,952 thousand in 2021[153]. - Basic earnings per share for 2022 was RMB 0.01, compared to a loss per share of RMB 0.03 in the previous year[152]. Assets and Liabilities - As of December 31, 2022, the total borrowings of the group amounted to approximately RMB 16.185 billion, with a net debt-to-equity ratio of approximately 43%[34]. - The total non-current assets stood at RMB 65,940,695,000 as of December 31, 2022, showing a marginal increase from RMB 65,824,792,000 in 2021[43]. - Current assets decreased to RMB 2,906,414,000 in 2022 from RMB 4,621,723,000 in 2021, reflecting a decline of approximately 37%[43]. - The group’s total liabilities increased significantly, with current liabilities rising to RMB 18,583,179,000 in 2022 from RMB 6,960,706,000 in 2021[43]. - The total equity attributable to the owners of the company was RMB 36,440,619,000 as of December 31, 2022, slightly up from RMB 36,174,144,000 in 2021[43]. - The group reported overdue borrowings totaling RMB 59,682,000, with a total outstanding amount of RMB 668,315,000[121]. - As of December 31, 2022, the group's net current liabilities amounted to RMB 15,676,765,000[121]. - The group's bank borrowings and other borrowings totaled RMB 16,184,982,000, including current borrowings of RMB 13,453,099,000[121]. - The group had unrestricted cash and cash equivalents of RMB 345,725,000 as of December 31, 2022[147]. - The group experienced a default on borrowings totaling RMB 59,682,000 due to overdue payments, triggering cross-default on other borrowings amounting to RMB 6,551,258,000[147]. Corporate Governance - The board has decided not to declare a final dividend for the year, maintaining the same policy as in 2021[40]. - The company has adopted high standards of corporate governance, believing it is crucial for development and protecting shareholder interests[89]. - The board of directors consists of seven members, including four executive directors and three independent non-executive directors[91]. - The company’s independent non-executive directors are confirmed to be independent and provide independent opinions on strategy and risk management[94]. - The audit committee is responsible for recommending the appointment, reappointment, and removal of external auditors, ensuring their independence and effectiveness[101]. - The company has implemented a strict insider trading policy to regulate employees with access to insider information[90]. - The board meets at least four times a year, ensuring timely communication and decision-making[91]. - The company has established a policy to avoid potential conflicts of interest, requiring directors with significant interests in transactions to abstain from voting[99]. - The company has implemented internal audit and control functions across its business operations to monitor financial reporting and risk management systems[103]. Environmental, Social, and Governance (ESG) Initiatives - SOHO China was upgraded to an AA rating by MSCI for its ESG efforts, the highest rating for a real estate company in mainland China[5]. - The company emphasizes its commitment to social responsibility through various charitable initiatives, including building kindergartens and libraries in northwest China[50]. - The Environment, Social, and Governance Committee held one meeting this year, focusing on governance structure and exceeding annual carbon reduction targets[119]. - The group made charitable donations of approximately RMB 15,000,000 in the current year, compared to RMB 10,010,000 in 2021[81]. - SOHO China's total energy consumption savings compared to national standards reached 135 million kWh, with an energy-saving rate of 34% and a carbon reduction of 110,000 tons[5]. Market and Strategic Outlook - The company is optimistic about the outlook for 2023 and plans to continue improving service quality and property management[6]. - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[57]. - The company aims to leverage its strong brand and market position to explore new business opportunities and technological advancements in property development[48]. - The company has completed two strategic acquisitions in the past year, enhancing its competitive position in the technology sector[60]. - The company is investing approximately $50 million in research and development for new technologies aimed at enhancing platform capabilities[58]. Employee and Management Information - The company organized over 1,500 professional training sessions in 2022 to enhance employee skills[6]. - The group employed a total of 1,721 employees as of December 31, 2022, including 1,555 in property management[38]. - Total annual compensation for senior management was RMB 7,227,000, with the highest individual compensation being RMB 4,156,000 for Pan Shiyi[62]. - The company provides comprehensive training for newly appointed directors to ensure understanding of business operations and regulatory responsibilities[143]. Risk Management - The group has established a clear organizational structure with defined responsibilities and reporting procedures for risk management and internal control[130]. - The audit committee reviews the effectiveness of the group's risk management and internal control systems at least annually[130]. - The group employs a risk control-based audit approach, with the internal audit department reporting its findings to the audit committee regularly[133]. - The group has implemented various policies and procedures to enhance the effectiveness of its risk management and internal control systems[134]. - The risk management framework follows the "three lines of defense" model to guide the group's risk management activities[132]. Financial Reporting and Compliance - The consolidated financial statements for the year have been audited by PricewaterhouseCoopers[88]. - The independent auditor was unable to express an opinion on the consolidated financial statements due to multiple uncertainties[146]. - The company confirmed compliance with applicable disclosure requirements regarding related party transactions as per Listing Rules Chapter 14A[82]. - The company has not reported any significant changes in shareholdings among directors or senior management as of December 31, 2022[72].
SOHO中国(00410) - 2022 - 年度财报