Financial Performance - In the first half of 2022, the company recorded sales revenue of RMB 458.0 million, an increase of 38.8% year-on-year[24]. - The company reported a loss attributable to equity holders of RMB 973.6 million, compared to a loss of RMB 1,427.1 million in the same period last year[24]. - The company experienced a gross profit of RMB 174.1 million, significantly up from RMB 5.1 million in the previous year[26]. - The group recorded a consolidated sales revenue of RMB 458.0 million for the first half of 2022, an increase of 38.8% compared to RMB 329.8 million in the same period of 2021[64]. - The group reported a loss attributable to the owners of the company of RMB 973.6 million, a decrease of 31.8% from a loss of RMB 1,427.1 million in the same period of 2021[64]. - The gross profit for the first half of 2022 was RMB 174.1 million, with a gross profit margin of 38.0%, compared to a gross profit of RMB 5.1 million and a margin of 1.5% in the same period of 2021[75]. - The net loss for the six months ended June 30, 2022, was RMB 980,409,000, a decrease in loss compared to RMB 1,433,931,000 in the same period of 2021, reflecting better operational performance[168]. - The company recorded a net financial cost of RMB 780,407,000, down from RMB 891,479,000 in the previous year, indicating improved financial management[168]. Sales and Market Performance - Real estate contract sales amounted to RMB 1,053.2 million, with a total sales area of 60,270 square meters[24]. - The area delivered increased by 25.4% from 31,706 square meters in the first half of 2021 to 39,763 square meters in the first half of 2022[37]. - The average confirmed selling price (excluding internal decoration income) was RMB 11,163 per square meter, up 11.6% from RMB 10,000 per square meter in the same period last year[37]. - The largest contribution to sales revenue came from properties in Shanghai, contributing RMB 203.7 million, accounting for 44.5% of the total confirmed sales revenue[38]. - The group faced significant impacts from strict pandemic control measures, particularly in Shanghai, affecting overall sales and cash collection[35]. - The group achieved real estate contract sales of RMB 1,053.2 million, a year-on-year decrease of 80.6%[44]. - The average selling price per square meter was RMB 17,475, a decrease of 33.6% compared to RMB 26,327 in the same period last year[45]. - Sales in the Shanghai region amounted to RMB 555.4 million, a decline of 87.2% from RMB 4,340.5 million in the previous year[46]. Debt and Financial Position - As of June 30, 2022, total borrowings were RMB 20,564.0 million[25]. - The company’s capital debt ratio was not applicable due to net equity deficit as of June 30, 2022[31]. - The company recorded a net loss attributable to shareholders of RMB 973.6 million for the six months ended June 30, 2022, with cumulative losses reaching RMB 9,552.8 million[95]. - The company utilized pre-sale property proceeds and bank loans to fund its property development projects, with cash and cash equivalents at RMB 182.5 million as of June 30, 2022, down from RMB 191.6 million at the end of 2021[88]. - As of June 30, 2022, overdue principal amounted to RMB 2,934.3 million, indicating significant financial distress[99]. - The group faced cross-default on loans amounting to RMB 785,000,000 due to breaches of specific terms and conditions[195]. - The ongoing COVID-19 pandemic and related lockdowns in Shanghai significantly delayed project construction and property sales[195]. - The group is actively negotiating with lenders regarding overdue loans to avoid immediate repayment demands[196]. Assets and Liabilities - Total assets as of June 30, 2022, were RMB 49,993.9 million, while total liabilities were RMB 50,549.7 million[31]. - As of June 30, 2022, total current assets were approximately RMB 24,255.0 million, a slight increase of 0.8% from RMB 24,243.7 million at the end of 2021[85]. - Total current liabilities increased by 2.6% to RMB 48,444.2 million from RMB 47,227.3 million at the end of 2021, primarily due to higher property sales receipts[87]. - The company's equity attributable to owners showed a significant decline, with a total equity deficit of RMB 555,768,000 as of June 30, 2022, compared to a positive equity of RMB 424,641,000 at the end of 2021[168]. Corporate Governance - The company has adhered to the corporate governance code but has deviated from the guideline that the roles of chairman and CEO should be separated[110]. - The Audit Committee consists of three independent non-executive directors, responsible for overseeing the appointment and remuneration of external auditors, and ensuring the integrity of financial statements[121]. - The Remuneration Committee evaluates and reviews the remuneration of directors and senior management annually, ensuring alignment with company policies and market standards[124]. - The Nomination Committee is tasked with reviewing the board's structure and diversity annually, ensuring a balanced composition of executive and non-executive directors[126]. - The company adopted a board diversity policy on August 29, 2013, considering various factors such as skills, knowledge, and experience to enhance board effectiveness[129]. - The board consists of six members, with one female director, representing 16.7% gender diversity as of June 30, 2022[132]. - The governance committee is responsible for reviewing the company's compliance with legal and regulatory requirements[136]. Future Outlook and Strategy - The group anticipates that the national sales area and prices of commercial housing will maintain a low-level recovery in the second half of 2022, with first and second-tier cities showing slight growth compared to the first half[61]. - The company plans to strengthen the sales of existing commercial products and enhance the leasing of office buildings and shops to improve cash flow[61]. - The company plans to accelerate the pre-sale and sale of its properties, expecting to launch two to three existing projects after obtaining pre-sale permits in July 2022[97]. - The company will continue to monitor industry policy changes and market expectations to adapt its sales strategies accordingly[61].
恒盛地产(00845) - 2022 - 中期财报