Financial Performance - The company's income tax for the six months ended June 30, 2023, was HKD 380,521, a decrease of 2.8% from HKD 388,734 in 2022[29]. - The depreciation of property, plant, and equipment for the same period was HKD 69,764, down from HKD 78,349, reflecting a reduction of 10.1%[31]. - The net loss attributable to the company's owners for the six months ended June 30, 2023, was HKD (302,936), compared to a profit of HKD 126,448 in 2022, indicating a significant decline[32]. - The weighted average number of ordinary shares used for calculating basic loss per share was 4,792,186 thousand shares, slightly down from 4,806,323 thousand shares in the previous year[32]. - For the six months ended June 30, 2023, the company reported total revenue of HKD 8,302,292,000, a decrease from HKD 8,909,949,000 in the same period of 2022, representing a decline of approximately 6.8%[38]. - The company's net profit for the same period was HKD 1,420,034,000, compared to HKD 1,419,336,000 in the previous year, indicating a slight increase of 0.05%[38]. - The total comprehensive income for the six months ended June 30, 2023, was HKD 5,881,923,000, compared to HKD 7,141,929,000 for the same period in 2022, reflecting a decrease of approximately 17.7%[38]. - The company reported a fair value loss of HKD 8,713,000 on financial instruments for the period, compared to a loss of HKD 18,065,000 in the same period of the previous year[38]. - The company's earnings per share for the six months ended June 30, 2023, was HKD 8.30, compared to HKD 8.29 for the same period in 2022, showing a marginal increase[38]. - The group reported a net impairment loss on investment properties of approximately HKD 2.26 million, primarily due to a decrease in fair value of properties in Tianjin[124]. - The group experienced a weaker RMB against HKD, leading to foreign exchange losses on bank and other borrowings[126]. - The company recorded a net loss of HKD 323.18 million for the six months ended June 30, 2023, compared to a profit of HKD 80.90 million for the same period in 2022[126]. - Shareholders' loss attributable to the company was approximately HKD 302.94 million, with a basic loss per share of HKD 0.0632[126]. Revenue and Sales - The group generates all revenue from customer contracts in China[27]. - The company has no single customer contributing 10% or more to its revenue for the six months ended June 30, 2023[45]. - The company's contract sales for the period amounted to RMB 4,880,370,000, representing a year-on-year increase of 200.7%[72]. - The total sales area was 157,000 square meters, up 68.8% year-on-year, with an average selling price of approximately RMB 31,000 per square meter[72]. - Key sales projects included Xi'an Natural World, Tianjin Shangshi Yangshan, Shanghai Shangshi Wanghai, and Shanghai Shangshi Yunduan, contributing 24.4%, 21.3%, 20.4%, and 14.9% to total contract sales respectively[72]. - The company’s contract sales for residential and affordable housing reached RMB 5,009,840,000, a year-on-year increase of 9.7%[96]. - The total average selling price increased by 114.5% to approximately RMB 29,600 per square meter, primarily due to a higher proportion of residential sales during the period[96]. - Property sales revenue reached HKD 1,271,776,000, accounting for 70.7% of total revenue, down from 95.0% in the previous year[102]. Investment and Development - The company holds approximately 55.13% of the shares in Shanghai Investment Holdings, which translates to 2,111,229,080 shares[10]. - The company has shifted several residential property projects from sale to rental, resulting in an increase in investment properties valued at HKD 211,911,000 as of June 30, 2023, up from HKD 110,506,000 in the previous year[51]. - The group has 28 real estate projects across 10 major cities in China, providing approximately 3.58 million square meters of saleable area[56]. - The company has a land reserve that supports future development projects, enhancing its market expansion strategy[121]. - The group has a total land reserve of approximately 3.58 million square meters as of June 30, 2023, across 28 projects in 10 cities[133]. - The company plans to continue focusing on urban integration development in Shanghai and other core first and second-tier cities, aiming to create greater value for shareholders and customers[69]. - The group plans to adopt a cautious strategy for future land acquisitions while maintaining sufficient land reserves[100]. - The company has ongoing projects with a total construction area of approximately 1.3 million square meters, including residential and commercial properties[118]. - The group has 12 ongoing projects with a total construction area of 2,630,000 square meters, including new projects in major cities like Xi'an and Shanghai[98]. Operational Performance - The gross profit for the period was HKD 772,063,000, a decline of 36.3%, with a gross margin of 42.9%, up 25.1 percentage points year-on-year[103]. - Rental income increased by 44.5% to HKD 375,736,000, compared to HKD 260,064,000 in the first half of 2022, due to the lifting of pandemic restrictions[99]. - The company has engaged in acquisitions to increase its non-controlling interests, enhancing its overall equity position[40]. - The company has completed and delivered fewer properties during the period, impacting overall performance[126]. - The company plans to optimize its debt and equity balance to maximize returns for shareholders, maintaining its overall strategy from the previous year[127]. - The management believes that the group has sufficient funds and future earnings to meet current working capital and future development needs[129]. - The group plans to enhance delivery volumes in the second half of the year while ensuring stable operations of new delivery models[132]. Market Outlook - The company anticipates that more projects will be completed and delivered in the second half of 2023, contributing to stable business development[68]. - The government is expected to strengthen policy support for the real estate sector in the second half of 2023, which may improve market confidence and demand[68]. - The group maintains a cautiously optimistic outlook for the real estate market, anticipating gradual recovery supported by government policies[110]. Employee and Management - The group employs 766 staff members, with compensation policies linked to performance, qualifications, and market statistics[130]. - The group has no foreign exchange hedging arrangements in place as of June 30, 2023, but will take necessary measures to mitigate exchange rate risks in the future[129]. - The group is committed to creating better value returns for shareholders through innovative business strategies and compliance with local real estate policies[132].
上实城市开发(00563) - 2023 - 中期财报