Economic Overview - In the first half of 2022, China's GDP was RMB 56,264.2 billion, representing a year-over-year increase of 2.5%[9]. - National sales of commercial properties fell 22.2% year-on-year to 689.23 million square meters, with sales amounting to RMB 6,607.2 billion, a decrease of 28.9%[9]. - The outlook for the second half of 2022 indicates that domestic production recovery is expected to accelerate, with suppressed consumer demand gradually improving[68]. - The accelerated issuance of local special bonds is anticipated to enhance infrastructure investment support, contributing to economic stabilization[68]. Company Financial Performance - The Group's profit for the six months ended June 30, 2022, was RMB 824,670,000, an increase of approximately 47% compared to RMB 560,168,000 in the same period of 2021[15]. - Profit attributable to the owners of the Company decreased by approximately 16% to RMB 249,763,000 from RMB 296,714,000 in the corresponding period of 2021[16]. - Basic earnings per share for the first half of 2022 was RMB 5.09 cents, representing a decrease of approximately 16% compared to RMB 6.05 cents in the corresponding period of 2021[20]. - The group recorded a turnover of RMB 13,794,534,000 for the first half of 2022, representing an increase of approximately 89% compared to RMB 7,304,633,000 in the same period of 2021[21]. - Gross profit amounted to RMB 2,158,488,000, an increase of approximately 48% from RMB 1,456,516,000 in the same period of 2021, with a gross profit margin of 16%, down approximately 4 percentage points from 20% in the previous year[22]. - For the six months ended June 30, 2022, the Group achieved aggregate contracted sales of approximately RMB20,658.7 million, representing a year-on-year decrease of approximately 28%[45]. - The aggregate contracted sales area for the same period was approximately 802,104 square meters, reflecting a year-on-year decrease of approximately 36%[46]. - The average selling price for the six months ended June 30, 2022, was approximately RMB25,756 per square meter[46]. Profitability and Costs - The profit attributable to owners of the company was RMB 249,763,000, a decrease of approximately 16% from RMB 296,714,000 in the same period of 2021[17]. - The total borrowing costs for the six months ended June 30, 2022, amounted to RMB 843,074, up from RMB 497,967 in the same period of 2021, representing an increase of approximately 69.2%[189]. - The income tax expenses for the six months ended June 30, 2022, were RMB 863,661, compared to RMB 449,526 for the same period in 2021, reflecting an increase of about 92.2%[192]. - Selling and marketing expenses increased to RMB 438,892, up 57.0% from RMB 279,914 in the previous year[143]. - Finance costs decreased slightly to RMB 302,839 from RMB 306,504 in the same period last year[143]. Assets and Liabilities - As of June 30, 2022, equity attributable to owners of the company was RMB 9,755,614,000, an increase of approximately 0.18% from RMB 9,738,462,000 at the end of the previous financial year[20]. - The total interest-bearing debt of the Group as of June 30, 2022, was RMB39,057,240,000, an increase from RMB36,536,844,000 as of December 31, 2021[56]. - The net gearing ratio (net interest-bearing debt to equity) was 78% as of June 30, 2022, compared to 65% as of December 31, 2021[58]. - The carrying value of pledged lands (including properties for sale) was approximately RMB4,357,178,000, an increase from RMB2,043,820,000 as of 31 December 2021[75]. - The company reported a basic earnings per share of 5.09 RMB cents, down from 6.05 RMB cents in the previous year[147]. Development and Projects - As of June 30, 2022, the company had a land bank of 5,064,331 sq.m. across 49 property development projects in various cities[28]. - The company focuses on the development of residential properties and commercial complexes, with product types including apartments, villas, offices, and retail shops[27]. - The company’s property development business continues to expand, with multiple projects across various regions in China[36]. - The company is actively expanding its market presence with multiple ongoing projects across various regions[39]. - The company plans to strengthen its investment property businesses in Hong Kong and explore larger markets to create value for shareholders[75]. Strategic Initiatives - The Group aims to reduce operating costs and improve product quality to differentiate itself in the competitive market[11]. - The Group will continue to implement stable financial policies to control the net gearing ratio at the industry average level[58]. - The Company plans to focus on advantageous areas in advantageous cities and utilize data tools for scientific decision-making to control investment risks[69]. - The Group will refrain from blindly acquiring land and will deepen development in existing advantageous areas to achieve steady growth[69]. - The company is focusing on market expansion and new product development as part of its strategic initiatives moving forward[158]. Corporate Governance and Compliance - The independent board committee confirmed compliance with the non-competition deed during the six months ended June 30, 2022[67]. - The Company has complied with the Corporate Governance Code provisions during the six months ended June 30, 2022, except for specific provisions regarding director terms[134]. - The audit committee is responsible for reviewing financial reports and maintaining appropriate relationships with external auditors[121]. Shareholder Information - As of June 30, 2022, China Merchants Group Ltd. holds approximately 74.35% of the issued share capital of the Company through controlled corporations[110]. - The interests of substantial shareholders include Success Well Investments Limited, which holds 3,646,889,329 shares, representing 74.35% of the Company's issued share capital[108]. - The Company had no share option scheme in effect during the six months ended June 30, 2022[112]. - The Company declared dividends amounting to RMB 252,490 during the first half of 2022, reflecting a strategic decision to return value to shareholders[156].
招商局置地(00978) - 2022 - 中期财报