Project Development and Completion - As of June 30, 2022, the Group held development/sale projects with a total Gross Floor Area (GFA) of 1,333 square meters in Changsha City, Hunan Province, with a 100% interest[22]. - The Fullsun International Financial Centre project has a total GFA of 98,727 square meters, all completed, with phases 1 and 2 also completed[23]. - The Fullsun Emerald Bay project in Ningde City, Fujian Province has a total GFA of 159,308 square meters, with 100% interest and expected completion in 2022[23]. - The Group's project in Tianxin District, Yatai Muyun Road, has a GFA of 50,469 square meters, with 100% interest[23]. - The Ningde Fullsun Country Garden project has a GFA of 18,371 square meters, with a 34% interest, and 6,246 square meters attributable to the Group[23]. - The Group's projects are primarily located in Hunan and Fujian provinces, indicating a strategic focus on these regions for market expansion[23]. - The management discussion highlights the completion of multiple projects, reflecting the Group's commitment to timely project delivery and operational efficiency[25]. - The ongoing projects and their completion timelines suggest a robust pipeline for future growth and development opportunities[25]. - The Group's strategic focus on high-interest projects indicates a proactive approach to maximizing returns on investment[25]. Financial Performance - The total revenue for the Group during the period was approximately RMB1,430,024,000, representing a 132% increase compared to the previous period's revenue of approximately RMB615,345,000[40]. - Revenue from property sales was approximately RMB1,427,741,000, significantly up from RMB614,753,000 in the previous period, primarily driven by projects in Mainland China[44]. - Rental income for the period was approximately RMB2,283,000, a substantial increase from RMB592,000 in the previous period, mainly from commercial properties in Changsha[45]. - Contracted sales amounted to approximately RMB174 million, down from RMB330 million in the previous period, with an estimated RMB805 million expected to be recognized as income in 2022 upon the transfer of property titles[43]. - The Group owned 15 projects under development and for sale, with a total gross floor area of approximately 972,253 sq.m., and an attributable area of approximately 781,027 sq.m.[38]. - The basic loss per share was RMB2.68 cents, compared to RMB1.48 cents in the previous period, indicating a deterioration in profitability[40]. - The Group's loss before taxation for the six months ended June 30, 2022, was RMB176,403,000[189]. - The Group reported a net loss of RMB317 million for the six months ended June 30, 2022[142]. Operating Expenses and Costs - Operating expenses decreased due to effective cost control, with selling and distribution expenses at approximately RMB19,440,000, down from RMB39,715,000, resulting in a cost-income ratio of 1.36%[46]. - Financing costs for the period were approximately RMB96,257,000, compared to RMB35,149,000 in the previous period, reflecting increased borrowing costs[42]. - The company reported a significant increase in finance costs to RMB96,257 from RMB35,149 in the previous year, highlighting rising financial expenses[115]. - The finance costs for the six months ended June 30, 2022, totaled RMB453,987,000, significantly higher than RMB188,492,000 in the previous year[199]. Assets and Liabilities - Current assets as of June 30, 2022, were approximately RMB8,883,238,000, down from RMB9,086,867,000 as of December 31, 2021[55]. - Current liabilities as of June 30, 2022, were approximately RMB8,857,263,000, compared to RMB8,698,668,000 as of December 31, 2021[55]. - The net gearing ratio as of June 30, 2022, was 500.3%, significantly up from 268.1% as of December 31, 2021[54]. - The total equity attributable to owners of the Company was negative at RMB390,708, compared to a negative RMB21,517 at the end of 2021[124]. - The Group's total deficit attributable to owners amounted to RMB304 million as of June 30, 2022[144]. - The Group's current assets exceeded its current liabilities by RMB26 million as of June 30, 2022[144]. Corporate Governance and Management - The audit committee, comprising independent non-executive directors, has reviewed the interim financial report and discussed internal control and financial reporting matters[99][100]. - The company has complied with all applicable code provisions of the Corporate Governance Code, except for provision C.2.1 regarding the separation of the roles of chairman and CEO[102][103]. - The executive director and CEO, Pan Haoran, has assumed the duties of chairman since the resignation of the previous chairman on September 7, 2019[106]. - The company is committed to maintaining high standards of corporate governance and has established policies for compliance with regulatory requirements[102]. Legal and Restructuring Matters - The Company received a winding up petition for an aggregate amount of HK$71,483,973.70 related to Vivalink Limited's defaulted borrowing[67]. - The Supreme Court adjourned the hearing of the Petition to allow time for the Company to finalize restructuring negotiations[68]. - The Company is in the process of implementing a Proposed Restructuring following the adjournment of the Petition[68]. - The Group is actively negotiating with financial institutions to restructure existing borrowings and provide funding for ongoing property developments[163]. - A non-legally binding term sheet was signed with a potential investor for a proposed restructuring and share subscriptions, with a conditional subscription agreement reached on 11 July 2022[167]. Cash Flow and Investments - The net cash from investing activities was RMB122,638,000, showing an increase from RMB107,772,000 in the previous year[135]. - The Group had total unrestricted cash and cash equivalents of RMB148 million as of June 30, 2022[144]. - The Group is taking actions to expedite the sale of pledged properties to repay borrowings[147]. - The Directors believe that the sales proceeds from pledged properties will be sufficient to repay outstanding principals, interest, and surcharges related to the Vivalink Assigned Borrowing[155]. Employee and Remuneration - As of June 30, 2022, the Group had approximately 113 employees, with remuneration determined by market benchmarks[78]. - The Group's contributions to the Mandatory Provident Fund Scheme and Central Pension Schemes vest fully and immediately with employees[82]. - The Group's employees in Hong Kong are required to contribute 5% of their relevant income to the MPF Scheme, capped at HK$1,500 per month[79].
福晟国际(00627) - 2022 - 中期财报