Financial Performance - The consolidated revenue for 2021 was approximately RMB 344.0 million, a slight decrease from RMB 348.2 million in 2020, while gross profit fell to RMB 133.9 million from RMB 166.9 million[11]. - Profit before taxation increased to RMB 197.3 million in 2021, compared to RMB 97.8 million in 2020, excluding fair value changes and impairment losses[11]. - Profit after tax attributable to the owners of the Company was RMB 164.0 million in 2021, a significant recovery from a loss of RMB 100.9 million in 2020[11]. - For the year ended December 31, 2021, the Group recorded revenue of RMB344.0 million, a decrease of 1.2% from RMB348.2 million in 2020, and gross profit of RMB133.9 million, down from RMB166.9 million, resulting in a gross profit margin of 38.9% compared to 47.9% in 2020[41][44]. - The gross profit margin decreased to 38.9% in 2021 from 47.9% in 2020, reflecting a decline in gross profit to RMB 133.9 million[47]. - The Group recorded a share of profit from an associate of RMB 129.7 million in 2021, significantly up from RMB 38.6 million in 2020[56]. - Finance costs decreased to RMB 65.1 million in 2021 from RMB 89.1 million in 2020 due to the repayment of various loans[63]. - Income tax expense was recorded at RMB 33.2 million in 2021, down from RMB 74.0 million in 2020[64]. - A gain of RMB 28.8 million was recorded from the disposal of a subsidiary during the year[50]. - The company recorded a profit attributable to owners of RMB 164.0 million for the year, a significant recovery from a loss of RMB 100.9 million in 2020[70]. Real Estate Projects - The flagship project Xintian Banshan recorded a total subscription area of approximately 5,200 sqm in 2021, up from 3,500 sqm in 2020, with total sales amounting to approximately RMB 374 million, compared to RMB 237 million in 2020[18]. - Revenue from the delivery and sales of residential units and villas of Xintian Banshan was RMB261.2 million, an increase from RMB182.7 million in 2020, with a gross floor area of approximately 3,800 sqm[42]. - The Yangzhou Intelligent Living City project recorded revenue of RMB31.7 million from office units with a gross floor area of approximately 3,900 sqm[42]. - As of the end of 2021, the subscription amount for commercial units in Xuzhou Intelligent Industrial Town was approximately RMB205.1 million, down from RMB284.8 million in 2020, with a saleable area of 17,300 sqm[29]. - The Group plans to fully complete the Yangzhou Intelligent Life City project by mid-2022 for sale and delivery as completed units[23][25]. - The Group aims to complete the sale of the remaining commercial units of approximately 10,000 sqm in Xuzhou Intelligent Industrial Town in 2022[29]. - The Group has ongoing property development projects, including Xintian Banshan with a planned saleable area of approximately 15,000 sq.m., expected to be completed in 2022[87]. - The Yangzhou Intelligence Living City project has a planned gross floor area of approximately 86,000 sq.m., with a 100% ownership interest and expected completion in Q2 2022[87]. - The Xuzhou Intelligence Industry Town project has a planned gross floor area of approximately 104,000 sq.m., also with a 100% ownership interest and expected completion in Q2 2022[89]. Market Conditions - The real estate market in China faced increased regulatory restrictions in 2021, leading to liquidity crises among large developers and a surge in credit defaults[17]. - The Company adjusted its pricing strategy for Xintian Banshan to accelerate cash recovery in response to market trends[18]. - The future business model in the real estate sector is expected to focus on high-quality growth and refined products, moving away from the previous "high turnover" and "excessive financialization" approach[17]. - The Talent Shoes Trading Center experienced higher tenant loss in the second half of the year due to adverse business conditions, prompting the Group to optimize rental and customer mix in 2022[30]. - The company is focused on reducing inventories, maintaining liquidity, and tightly controlling operating costs to navigate the challenging business environment in the real estate market[77]. - The management is closely monitoring market conditions and formulating selling plans to adapt to changing economic circumstances[74]. - The Group is committed to seizing attractive opportunities for future growth despite the uncertainties posed by global economic factors[77]. Asset Management - Minimal provision for impairment loss was recorded in 2021, following prudent charges in previous years, indicating improved asset management[11]. - Unfavorable fair value changes of RMB 12.0 million were recorded for investment properties, a significant reduction from RMB 213.9 million in 2020[11]. - Fair value deficits of RMB 12.0 million were recorded, down from RMB 45.9 million in 2020, primarily from the Talent Shoes Trading Center[57]. - The Group's investment property and completed properties held for sale were valued at approximately RMB552.0 million and RMB205.5 million, respectively[102]. Corporate Governance - The Company has applied the principles and code provisions of the Corporate Governance Code and has complied with them during the year ended December 31, 2021[131]. - The Board is collectively responsible for leadership and promoting the success of the Company by directing and supervising its affairs[132]. - The Board has delegated day-to-day operations to general managers and department heads, ensuring proper monitoring of business operations[133]. - The Company is committed to maintaining high standards of corporate governance in the interests of shareholders[134]. - The Board currently has no appointed CEO, believing that the existing structure provides strong leadership for effective decision-making and strategy formulation[148]. - The Board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balanced governance structure[148]. - The Nomination Committee met once during the year to assess the independence of retiring independent non-executive directors and recommend re-appointments[158]. - The Remuneration Committee is responsible for attracting and retaining high-caliber directors and senior management, having met once in the year to review remuneration policies[159]. - The Audit Committee, comprising three independent non-executive directors, held three meetings in 2021 to review the Group's annual and interim results, audit plans, and risk management systems[166]. - The Company has adopted a board diversity policy to ensure a balanced and diverse profile on the Board, considering various factors such as gender, age, and industry experience[153]. Employee and Stakeholder Relations - The Group had approximately 213 employees as of December 31, 2021, a decrease from 216 employees in the previous year[103]. - Employee remuneration includes basic salary, medical insurance, performance-related bonuses, and mandatory provident fund contributions, in line with industry practices[164]. - The Group emphasizes the importance of its Directors, senior management, and employees for maintaining market competitiveness, offering competitive remuneration packages and a Share Option Scheme to incentivize contributions[110]. - The Company maintains a website to provide comprehensive information about its major businesses, financial information, and announcements to promote effective communication with shareholders[185]. - The company believes that regular and timely communication with shareholders enhances their understanding of the business and operations[189]. Financial Position - As of December 31, 2021, the Group's total assets were approximately RMB4,220.7 million, a slight decrease from RMB4,266.7 million as of December 31, 2020[94]. - The Group's total equity increased to approximately RMB1,708.6 million from RMB1,597.6 million year-over-year[94]. - The total liabilities decreased to approximately RMB2,512.1 million from RMB2,669.1 million, resulting in a gearing ratio of approximately 59.5%, down from 62.6%[96]. - Bank borrowings amounted to RMB277.2 million, down from RMB312.9 million, with a variable interest rate of 110.6%[96]. - Other borrowings decreased to RMB285.5 million from RMB431.6 million, with fixed interest rates ranging from 10.5% to 11.8%[96]. - Completed properties held for sale amounted to approximately RMB205.5 million, slightly up from RMB204.6 million[102]. - The Group has no outstanding forward contracts in foreign currency, minimizing foreign exchange risk exposure[95]. - The average exchange rate applied for consolidation was HK$1.20610 to RMB1, with a closing rate of HK$1.22356 to RMB1[97].
新天地产集团(00760) - 2021 - 年度财报