Financial Performance - The Group's revenue and overall gross margin improved in 2021 due to the effective control of COVID-19 and the gradual recovery of the economy[29]. - The Group's total revenue for the year was approximately RMB2,200,196,000, representing an increase of 88.9% compared to the previous year (RMB1,164,653,000) [52]. - The loss attributable to owners of the Company for the year was RMB579,754,000, a significant reduction from the previous year's loss of RMB1,367,183,000 [52]. - The basic and diluted loss per share was RMB5.10 cents, improved from RMB12.03 cents in the previous year [53]. - Property sales revenue was approximately RMB2,198,956,000, representing an increase of 89.9% compared to RMB1,157,866,000 in the previous year[57]. - The overall gross margin improved to approximately 11.1%, up from -18.1% in the previous year[57]. - Rental income for the year was approximately RMB1,240,000, down from RMB6,787,000 in the previous year due to tenant turnover[57]. - The fair value loss on the investment properties portfolio was approximately RMB106,764,000, significantly reduced from RMB606,772,000 in the previous year[57]. - Finance costs for the year were approximately RMB122,136,000, down from RMB219,889,000 in the previous year[59]. - Income tax expense increased to approximately RMB117,168,000 from RMB2,551,000 in the previous year due to provisions for PRC Enterprise Income Tax[63]. Business Strategy and Development - The Group plans to focus on core business development while exploring projects with potential for business expansion[27]. - The development of the Greater Bay Area is seen as a significant opportunity for the Group's business growth[27]. - The Group plans to continue focusing on core business development and exploring projects for potential expansion in the Greater Bay Area [32]. - The Group is looking for development opportunities in high-quality locations to improve profitability and deliver better returns to shareholders [32]. - The Group's strategy includes monitoring market recovery and seizing business development opportunities as they arise [32]. Market and Regulatory Environment - The real estate industry in China is expected to face challenges in 2022 due to strict property regulatory policies and financing scrutiny[30]. - The PRC government's policy adjustments aim to support the principle of "houses are for living in, not for speculation," which will bring both challenges and opportunities to the real estate industry[31]. - The majority of the Group's assets and revenue are derived from the PRC, making it highly susceptible to changes in the regulatory environment in China[68]. - The Group is exposed to market risks, including interest rate and foreign currency risks, credit risk, and liquidity risk, which are directly related to the economic conditions in the PRC and globally[68]. Debt and Financing - The Group aims to refinance maturing debts and reduce financing costs despite anticipated tightening of real estate financing[27]. - As of December 31, 2021, total bank and other borrowings were approximately RMB3,017,367,000, down from RMB3,927,332,000 in 2020[66]. - The net gearing ratio as of December 31, 2021, was 268.1%, an increase from 215.0% in 2020[66]. - The Group's financing arrangement with Daye Trust involved the transfer of 49% equity interest in Hunan Fullsun and a mortgage over land use rights[76]. - The maximum financing amount provided by Daye Trust to Hunan Fullsun is RMB 500,000,000 for a term not exceeding 48 months, with an interest rate of 9% for the first year and 10% for subsequent years[146]. - Interest expenses paid to Daye Trust during the year in relation to the Hunan Fullsun Financing Arrangement amounted to RMB 233,000[146]. Corporate Governance and Compliance - The Company has established a corporate governance framework in line with the CG Code, as detailed in the Annual Report[188]. - The Audit Committee reviewed the Group's annual results and confirmed compliance with relevant accounting standards and adequate disclosures[189]. - The Company has complied with the disclosure requirements in accordance with Chapter 14A of the Listing Rules regarding connected transactions[148]. - The Company has maintained compliance with public float requirements throughout the reporting period[190]. Employee and Shareholder Relations - The Group expresses gratitude to shareholders and employees for their support during the year[28]. - The Group's employee remuneration is determined by market terms and includes discretionary year-end bonuses based on individual performance[80]. - The Group's contributions to the Mandatory Provident Fund Scheme and the Central Pension Schemes vest fully and immediately with the employees[88]. - The five largest customers accounted for approximately 4.41% of the Group's total revenue, while the largest customer represented about 2.3%[107]. - The five largest suppliers accounted for approximately 80.9% of the Group's total purchases, with the largest supplier making up about 48.8%[107]. Environmental and Social Responsibility - The company is committed to integrating low carbon development concepts into its operations and has implemented various measures for environmental protection[178]. - A detailed independent environmental, social, and governance report will be released shortly for public access[180]. Auditor and Financial Reporting - Deloitte resigned as the auditor due to a consensus issue on audit fees for the year ended December 31, 2020, effective January 14, 2021[191]. - PKF Hong Kong Limited was appointed as the new auditor effective January 29, 2021, and will hold office until the conclusion of the next annual general meeting[192]. - The consolidated financial statements for the year have been audited by PKF, who will offer itself for re-appointment at the upcoming annual general meeting[192].
福晟国际(00627) - 2021 - 年度财报