Sales Performance - For the six months ended June 30, 2022, the Group achieved total contracted sales of RMB 845.8 million, a significant decrease from RMB 3,218.4 million for the same period in 2021[14]. - The total contracted sales area for the six months ended June 30, 2022, was approximately 77,261 sq.m., down from 228,290 sq.m. in the same period of 2021[19]. - As at 30 June 2022, the total unrecognised contracted sales were RMB3,862 million, expected to be recognised in the second half of 2022 and in 2023 upon project completion and delivery[24]. - The Group is pessimistic about the business outlook for the second half of 2022 due to the COVID-19 resurgence in mainland China, with expectations of flat prices and declining sales and investment[48]. Revenue and Profitability - Revenue for the six months ended June 30, 2022, was RMB 1,457,139,000, an increase of 16.9% compared to RMB 1,246,306,000 for the same period in 2021[179]. - Gross profit for the same period was RMB 88,153,000, significantly up from RMB 13,313,000, indicating a substantial improvement in profitability[179]. - The company reported a loss for the period of RMB 360,015,000, compared to a loss of RMB 77,233,000 in the previous year, reflecting ongoing challenges[179]. - The loss attributable to equity shareholders of the company was RMB 412,667,000, compared to RMB 76,299,000 in the prior year[179]. Property Development and Leasing - The Group completed and delivered two projects during the reporting period, contributing to an increase in revenue from the sale of completed properties[17]. - Revenue from property development rose by 19.4% from RMB1,110.6 million for the six months ended June 30, 2021, to RMB1,326.6 million for the six months ended June 30, 2022, driven by an increase in total GFA sold and delivered[63]. - Property leasing revenue decreased by 3.9% to RMB100.8 million for the six months ended June 30, 2022, compared to RMB104.9 million for the same period in 2021[64]. - The Group's property leasing business remained stable compared to the previous year, despite the pandemic's impact[18]. Operational Challenges - The Group's operations were adversely affected by the COVID-19 pandemic, leading to temporary closures of hotels and shopping malls in the PRC[17]. - The Group's construction and sales activities faced occasional suspensions due to strict COVID-19 control measures in China[17]. - The hotel operation recorded a negative profit margin of 21.4% for the six months ended June 30, 2022, compared to a profit margin of 10.2% in 2021, primarily due to temporary closures and additional Covid-19 related costs[78]. Financial Position - As of June 30, 2022, the Group's cash and bank balances were RMB951.7 million, down from RMB1,214.9 million as of December 31, 2021, primarily due to a substantial decrease in contracted sales[100]. - The Group's bank and other borrowings increased to RMB5,239.8 million as of June 30, 2022, up from RMB5,045.3 million as of December 31, 2021, representing an increase of RMB194.5 million[101]. - The net gearing ratio increased to 167.3% as of June 30, 2022, compared to 130.7% as of December 31, 2021[110]. - The debt-to-asset ratio was approximately 63.1% as of June 30, 2022, compared to approximately 61.7% as of December 31, 2021[111]. Cost Management - Selling and marketing expenses decreased significantly from RMB43.8 million for the six months ended June 30, 2021, to RMB16.3 million for the six months ended June 30, 2022, due to reduced activities from the Covid-19 pandemic[87]. - Administrative expenses decreased by approximately 15.1% to RMB69.5 million for the six months ended June 30, 2022, down from RMB81.9 million for the same period in 2021, due to strict cost control measures[89]. - Finance costs increased from RMB122.9 million for the six months ended June 30, 2021, to RMB153.7 million for the six months ended June 30, 2022, primarily due to debt restructuring fees of RMB33.1 million[94]. Corporate Governance - The Company has complied with the Corporate Governance Code provisions and most recommended best practices during the six months ended June 30, 2022[152]. - The management actively communicates with shareholders and investors through various channels to ensure transparency[164]. - The Company aims to provide timely, fair, accurate, and complete information to enable informed decision-making by shareholders and investors[164]. Employee and Shareholder Information - The Group employed approximately 601 full-time employees as of June 30, 2022, down from 664 employees as of December 31, 2021[116]. - The total number of issued shares of the Company as of June 30, 2022, was 1,799,020,000 shares, used for calculating approximate percentages of shareholdings[128]. - Directors and chief executives collectively held a total of 736,469,600 shares, representing approximately 40.94% of the issued share capital[125]. - The Company has adopted the share option scheme to provide incentives and rewards to eligible participants contributing to the Group's success[144].
金轮天地控股(01232) - 2022 - 中期财报