华润置地(01109) - 2022 - 中期财报

Financial Performance - For the first half of 2022, the Group achieved a consolidated turnover of RMB 72.89 billion, with a net profit attributable to shareholders of RMB 10.60 billion and a core profit of RMB 10.16 billion, successfully meeting its half-year performance targets [7]. - The Group's contracted sales for the development property business reached RMB 121.04 billion, successfully accomplishing its half-year sales target [11]. - The Group's performance reflects resilience in the face of a challenging economic environment, demonstrating its commitment to stable growth and development [11]. - In the first half of 2022, the Group recorded a 26.6% YoY decrease in contracted sales to RMB121.04 billion and a 39.0% YoY decrease in contracted GFA to 5.87 million square meters [28]. - The Group's development property revenue decreased by 2.6% YoY to RMB59.37 billion, with a booked GFA of 5.13 million square meters, reflecting a 0.2% YoY decrease [31]. - Profit for the period attributable to owners of the Company was RMB 10,602,873 thousand, a decrease of 19.14% compared to RMB 13,125,377 thousand in the previous year [114]. - The profit for the period ended June 30, 2022, was RMB 10,602,873,000, compared to RMB 13,125,377,000 for the same period in 2021, indicating a decrease of approximately 19.2% [165]. Market Conditions - China's GDP grew by 2.5% year-on-year in the first half of 2022, despite challenges from a slowing global economy and domestic COVID-19 cases [10]. - The real estate market faced unprecedented challenges, with a significant decline in commercial housing sales and negative growth in real estate development investment compared to the previous year [11]. - The Chinese government implemented a series of pro-growth policies to stabilize the economy amid the pandemic [10]. - The real estate industry is expected to operate more smoothly and healthily in the second half of 2022 due to supportive government policies [21]. Strategic Focus - The Group will continue to focus on "cost reduction, quality improvement, and efficiency enhancement" while strategically investing in key cities and core regions [11]. - The Group's strategic focus will remain on key management themes to navigate industry dynamics effectively [11]. - The Group's strategy focuses on high-quality development and adjusting investment portfolios in response to market changes and competition [26]. - The Group aims to enhance operational efficiency and maintain steady growth in core net profit, laying a solid foundation for annual results [27]. - The Group emphasizes a strategy of urban focus and regional concentration to achieve quality scale growth [26]. Operational Highlights - In the first half of the year, the retail sales of the Group's shopping malls reached RMB54.11 billion, representing a 7.0% YoY growth, significantly outperforming the market average [12]. - The average occupancy rate of newly opened shopping malls was 88.6%, with six shopping malls opened as scheduled, including Wuhan Mixc and Fuzhou Mixc [12]. - The Group's office business recorded a revenue of RMB0.84 billion, down 10.9% YoY, but showed a 10.4% actual growth when excluding rental relief impacts [12]. - The hotel business generated revenue of RMB0.57 billion, a decrease of 22.7% YoY, due to ongoing pandemic impacts [16]. - The Group's eco-system elementary business amounted to RMB 7.60 billion, representing a YoY increase of 19.4% [17]. Financial Management - The Group's financial management policy maintains the industry-lowest gearing ratio and funding cost, while staying in the green zone under the "three red lines" policy [17]. - The Group's credit ratings are maintained at "BBB+/Stable", "Baa1/Stable", and "BBB+/Stable" by major rating agencies [17]. - As of June 30, 2022, the Group's total outstanding debt was RMB222.82 billion, with a cash and bank balance of RMB116.45 billion, resulting in a net interest-bearing debt to equity ratio of 34.6%, an increase of 4.2 percentage points from the end of 2021 [55]. - Approximately 26% of the total interest-bearing debt is due within one year, while the weighted average funding cost was maintained at a low level of approximately 3.78%, up 7 basis points from 3.71% at the end of 2021 [55]. - The Group successfully obtained ESG loans of approximately HKD 8.0 billion in the first half of the year [20]. Investment and Development - The Group acquired 24 new projects with attributable GFA of 2.90 million square meters, with 92% of investments in first- and second-tier cities [17]. - The total land bank of the Group is 66.14 million square meters, with attributable GFA of 47.30 million square meters, supporting development for the next 3 years or more [17]. - The Group plans to open seven new shopping malls in key cities including Shanghai and Shenzhen in the second half of 2022, alongside the flagship project Shenzhen Mixc Phase III [26]. - The Group's share of profits from investments in associates and joint ventures totaled RMB1.68 billion, an increase of 59.1% year-on-year [40]. Shareholder Information - The board declared an interim dividend of HKD0.208 per share for the year ending December 31, 2022, consistent with the previous year [106]. - Shareholders can elect to receive the interim dividend in RMB at an exchange rate of HKD1.0 to RMB0.8733, resulting in a dividend of RMB0.182 per share [107]. - The interim dividend will be payable on October 31, 2022, to shareholders listed on the register as of September 16, 2022 [106]. Changes in Management - There have been changes in the board of directors, with Mr. Li Xin appointed as Chairman and Mr. Wu Bingqi appointed as President [108].