Financial Performance - The group's total revenue for 2021 was HKD 24,678 million, a 2% increase from HKD 24,196 million in 2020[6] - The group's attributable profit for 2021 was HKD 1,984 million, down 29% from HKD 2,784 million in 2020[6] - The total assets of the group increased to HKD 108,236 million in 2021, up from HKD 103,281 million in 2020, representing a 5% growth[6] - The net asset value per share increased by 7% to HKD 29.81 in 2021, compared to HKD 27.93 in 2020[24] - The annual profit was HKD 1.984 billion, with profit attributable to shareholders amounting to HKD 1.028 billion, resulting in earnings per share of HKD 1.37[59] Real Estate Development - The real estate segment's profit margin decreased from 15% in 2020 to 9% in 2021, resulting in a profit reduction of HKD 1,381 million[25] - The real estate development business in mainland China is facing challenges, with expectations of a downturn lasting two to three years[32] - The group has seen a decline in gross and net profit from real estate development, with expectations of continued difficulties through 2023 or 2024[39] - The strategy for property development will shift from focusing on scale to prioritizing profit, maintaining a balance between the two[46] - The group anticipates that the operating environment for developers in mainland China will remain challenging for the next two years, with hopes for improvement by 2024 or 2025[49] Land Reserves and Acquisitions - The land reserve of the company is over 6.5 million square meters, primarily located in key economic regions[3] - The company acquired 12 residential land parcels in 2021, totaling a floor area of 1.48 million square meters, increasing its land reserves to approximately 6.52 million square meters as of December 31, 2021[62] - As of December 31, 2021, the total land reserve amounted to 6,520,000 square meters, with 95% designated for sale purposes[83] - The group is actively seeking land opportunities from mainland developers and private property development projects despite unsuccessful bids in recent land auctions[40] Toll Road Business - The cash distribution from toll road projects was HKD 604 million in 2021, up from HKD 465 million in 2020[6] - The toll road business provides stable cash flow and profits, significantly contributing to the group's performance[29] - The company has invested in and operates toll roads in both mainland China and Indonesia, with a total mileage exceeding 600 kilometers[3] - The group plans to allocate more resources to the toll road business, considering further investments in Indonesia and potentially other countries post-pandemic[30] Sales Performance - The group achieved property sales of RMB 52.484 billion and toll revenue from highway projects of RMB 3.779 billion, totaling RMB 56.263 billion, representing a 20% increase compared to the previous year[59] - The real estate division's revenue for 2021 was HKD 24.569 billion, with a gross profit of HKD 5.379 billion and an annual profit of HKD 2.279 billion[152] - The average selling price increased to RMB 29,300 per square meter, with the average price in Hong Kong at HKD 318,000 per square meter and RMB 22,600 per square meter in mainland China[151] Challenges and Market Conditions - The average debt-to-asset ratio for the top 100 real estate developers in China is approximately 80%, indicating a high reliance on debt financing[33] - The Chinese government has implemented measures to control housing prices and reduce developers' borrowing ratios, impacting market liquidity and operations[34] - The group acknowledges the impact of high-debt developers selling properties at reduced prices, which poses significant challenges for sales efforts[49] Future Outlook - The company anticipates continued government adherence to housing policies and a cautious approach to land acquisition in 2022 due to market pressures and risks[68] - The company maintains a cautiously optimistic outlook for the real estate sector, emphasizing a balanced approach to profit and sales volume[68] - The group remains committed to ensuring an ideal return on investment for shareholders despite facing various difficulties in the coming years[52]
路劲(01098) - 2021 - 年度财报