Financial Performance - For the first half of 2022, the Group reported operating revenue of approximately RMB 9,969.3 million, representing a year-on-year increase of 9.2%[11]. - Gross profit for the same period was approximately RMB 1,143.8 million, reflecting a significant decrease of 49.5% compared to the previous year[11]. - Profit attributable to owners of the Company was approximately RMB 185.3 million, marking an 85.9% decline year-on-year[11]. - Revenue for the six months ended June 30, 2022, increased by 9.2% to approximately RMB 9,969.3 million from RMB 9,130.9 million for the same period in 2021[37]. - Gross profit decreased by 49.5% to approximately RMB 1,143.8 million for the six months ended June 30, 2022, from approximately RMB 2,264.7 million for the same period in 2021, with a gross profit margin decrease to 11.5% from 24.8%[41]. - Operating profit decreased by 89.5% to approximately RMB 206.4 million for the six months ended June 30, 2022, from approximately RMB 1,971.4 million for the same period in 2021[43]. - Profit for the six months ended June 30, 2022, decreased by 85.9% to approximately RMB 185.3 million from approximately RMB 1,312.5 million for the same period in 2021[44]. - Profit attributable to owners of the Company decreased by 99.4% to approximately RMB 3.4 million for the six months ended June 30, 2022, from approximately RMB 533.5 million for the same period in 2021[44]. Assets and Liabilities - The Group's total assets as of June 30, 2022, were approximately RMB 83,010 million, a decrease of 7.1% from December 31, 2021[3]. - Cash and cash equivalents decreased by 61.2% to RMB 2,923.0 million compared to RMB 7,534.2 million at the end of 2021[3]. - Total liabilities as of June 30, 2022, were RMB 67,299,547, down from RMB 73,048,062, indicating a decrease of approximately 7.7%[105]. - The net current assets as of June 30, 2022, were approximately RMB 21,700.5 million, slightly down from RMB 21,911.7 million as of December 31, 2021[53]. - The current ratio improved to approximately 1.39 times as of June 30, 2022, compared to 1.36 times as of December 31, 2021[53]. - The Group's total borrowings as of June 30, 2022, were RMB 16,714,604,000, down from RMB 19,443,836,000 as of December 31, 2021[169]. Sales and Inventory - Contract sales for the Group and its associated entities reached approximately RMB 12,265 million, with a sales area of about 1.43 million sq.m.[11]. - The total unsold GFA across all projects highlights significant inventory that could impact future financial performance[29]. - The Group's property portfolio includes 126 development and investment projects with a total gross floor area (GFA) of 19,942,986.9 square meters remaining unsold in various cities in China[25]. - The average selling price (ASP) for properties delivered increased by 9.7% to RMB 8,526 per sq. m. from RMB 7,774 per sq. m.[37]. - Total gross floor area (GFA) delivered slightly decreased by 0.7% to 1,145,870 sq. m. for the six months ended June 30, 2022, compared to 1,154,335 sq. m. for the same period in 2021[37]. Financial Strategy and Operations - The Group has adjusted its development strategy to focus on stable financial operations and enhancing product strength and delivery capabilities[10]. - The Group is focusing on strategic locations across multiple regions, enhancing its market presence in the real estate sector[27]. - The Group aims to enhance product quality and service through the New Oriental Wellness Architecture (NOWA) and the "Dual Butler" system, focusing on customer satisfaction[64]. - The Group plans to optimize its land bank structure and improve operational efficiency to achieve high-quality development[64]. - The Group is actively managing its debt structure and negotiating with financial institutions for new loans at reasonable costs[116]. Market Conditions and Industry Trends - The real estate industry is experiencing structural adjustments, with policies emphasizing housing for living rather than speculation[10]. - The real estate sector is expected to maintain a theme of "stability" in policies for the second half of 2022, with easing measures to support healthy industry development[63]. - The real estate industry is expected to see more relaxed policies in the second half of 2022, supporting healthy development amid supply contraction and cautious demand[66]. Corporate Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code during the six months ended June 30, 2022[83]. - The company has adopted a code of conduct regarding securities transactions by the Directors, confirming compliance with the required standards[88]. - The Group is required to comply with covenants under major borrowing facilities, which have been adhered to throughout the reporting period[124]. Shareholder Information - As of June 30, 2022, Mr. Wong holds 1,423,944,000 shares, representing 40.09% of the company's issued share capital[69]. - Mr. Huang has interests in 1,059,086,000 shares, accounting for 29.82% of the company's issued share capital[69]. - The company does not recommend the payment of interim dividend for the six months ended June 30, 2022, consistent with the previous year[82].
力高集团(01622) - 2022 - 中期财报