Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 2,570.6 million, representing a 4.0% increase from RMB 2,471.2 million in 2022[16]. - Gross profit decreased significantly to RMB 40.0 million, with a gross profit margin of 1.6%, down from 8.2% in the previous year[16][20]. - The net loss attributable to equity holders for the period was RMB (1,363.9) million, a slight improvement from RMB (1,462.1) million in 2022, reflecting a 6.7% decrease in losses[16]. - Revenue from property sales for the first half of 2023 was RMB 2,066.7 million, an increase of approximately 8.6% compared to the same period last year[72]. - Revenue from property sales accounted for 80.4% of total revenue, amounting to RMB 2,066.7 million, which is an 8.6% increase compared to RMB 1,902.2 million in the corresponding period of 2022[95][99]. - The rental income decreased by 29.2% to RMB 84.1 million, down from RMB 118.8 million in the same period last year[95]. - The Group's cost of sales amounted to RMB 2,530.6 million, an increase of 11.6% compared to RMB 2,268.3 million in the same period last year, aligning with revenue growth[108]. - Gross profit for the first half of 2023 was RMB 40.0 million, with a gross profit margin of 1.6%, down from RMB202.9 million and 8.2% in the same period of 2022, primarily due to lower selling prices and higher land costs[113]. Sales and Contracted Values - Contracted sales value dropped to RMB 2,462.0 million, a decline of 45.4% compared to RMB 4,509.0 million in the same period last year[18]. - Contracted sales area also fell by 52.5% to 135,565 sq.m. from 285,518 sq.m. in 2022[18]. - The average contracted selling price increased by 15.0% to RMB 18,161 per sq.m. from RMB 15,792 per sq.m. in the previous year[18]. - For the six months ended June 30, 2023, Jingrui achieved a total contracted sales value of approximately RMB2.462 billion, representing a decrease of 45.4% compared to RMB4.509 billion in the same period last year[30]. - The contracted sales area for the same period was approximately 135,565 sq.m., with an average contracted selling price of RMB18,161/sq.m.[30]. Market Conditions and Challenges - Future guidance remains cautious due to prevailing market conditions, with a focus on stabilizing sales and improving profitability[16]. - The central government's focus for real estate regulation in 2023 is on "risk prevention and market stabilization," with no strong stimulus measures introduced[25]. - The recovery of real estate sales data in Q2 2023 was below expectations, indicating continued pressure on real estate enterprises[54]. - The sales area of commercial properties in China decreased by 5.3% year-on-year, while the sales area of residential properties declined by 2.8% in the first half of 2023[24]. - The area of new housing construction by real estate developers decreased by 24.3% year-on-year, while the area of housing completion increased by 19.0%[24]. Debt and Liquidity - The net debt-to-capital ratio increased to 333% as of June 30, 2023, compared to 267% at the end of 2022[20]. - Jingrui is facing liquidity difficulties and has engaged financial and legal advisors to initiate debt restructuring for its offshore USD denominated senior notes[32]. - The Group's bondholders agreed to suspend payments on RMB denominated bonds until July 31, 2024, with gradual repayments starting thereafter[32]. - As of June 30, 2023, cash at bank and on hand decreased by approximately 13.9% to RMB1,164.2 million from RMB1,352.1 million as of December 31, 2022[136]. - Total outstanding borrowings decreased from RMB18,412.7 million as of December 31, 2022 to RMB17,831.6 million as of June 30, 2023[137]. - Current borrowings increased by 10.3% to RMB14,672.3 million compared to RMB13,296.7 million as of December 31, 2022[143]. - Non-current borrowings decreased significantly by 38.2% to RMB3,159.3 million from RMB5,116.0 million[143]. Operational Efficiency and Strategy - The company is focusing on market expansion and new product development to improve future performance[16]. - Management indicated ongoing efforts to enhance operational efficiency and reduce costs in response to market challenges[16]. - The company aims to reduce liabilities and leverage while enhancing operational and service capabilities in response to the current real estate market challenges[48]. - Jingrui has focused on revitalizing inefficient and non-core assets to enhance quality and profitability[37]. - The company plans to continue exploring new business strategies under the new real estate development model to create new value[48]. Corporate Governance - The Company has complied with the Corporate Governance Code provisions for the six months ended June 30, 2023, except for deviations regarding the roles of chairman and chief executive officer[179]. - The Board comprises three executive Directors, one non-executive Director, and three independent non-executive Directors, ensuring a strong independence element in its composition as of June 30, 2023[180]. - The Audit Committee, consisting of three independent non-executive Directors, reviewed the unaudited interim report for the six months ended June 30, 2023[192]. - The Board confirmed that there are currently no plans for significant investments aside from routine property development and seeking potential independent third-party investors for various projects[174]. - The Board resolved not to declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[177].
景瑞控股(01862) - 2023 - 中期财报