Company Performance - For the six months ended June 30, 2023, the Group reported revenue of approximately RMB9.48 billion, a decrease of 38.4% compared to RMB15.39 billion in the same period of 2022[28]. - Gross profit for the same period was RMB1.45 billion, down 57.7% from RMB3.42 billion year-on-year[28]. - The Group's contracted sales amounted to approximately RMB20.08 billion, representing a year-on-year decrease of 38.4%[40]. - Revenue decreased significantly by 38.4% from approximately RMB 15,385,385,000 in the first half of 2022 to approximately RMB 9,481,871,000 in the first half of 2023, primarily due to a decrease in property sales income[125]. - Income from property sales decreased by 39.4% from approximately RMB 14,203,127,000 in the first half of 2022 to approximately RMB 8,609,731,000 in the first half of 2023, attributed to a significant decrease in the area of properties delivered[128]. - Delivered property area decreased by 38.2% from 1,509,724 sq.m. in the first half of 2022 to 933,050 sq.m. in the first half of 2023[128]. - Average unit selling price decreased from RMB 9,408 per sq.m. in the first half of 2022 to RMB 9,228 per sq.m. in the first half of 2023[128]. - Gross profit decreased significantly by 57.7% from approximately RMB 3,418,158,000 in the first half of 2022 to approximately RMB 1,445,896,000 in the first half of 2023, with gross profit margin decreasing from 22.2% to 15.2%[144]. - Profit attributable to owners of the parent changed from a profit of approximately RMB1,274,185,000 in the first half of 2022 to a loss of approximately RMB1,124,981,000 in the first half of 2023[160]. - Core profit attributable to owners of the parent changed from a profit of approximately RMB1,208,523,000 in the first half of 2022 to a loss of approximately RMB122,991,000 in the first half of 2023[160]. Financial Position - Total assets as of June 30, 2023, were RMB190.35 billion, a decrease of 1.9% from RMB193.96 billion at the end of 2022[29]. - Cash and bank balances decreased by 17.1% to RMB12.44 billion from RMB15.02 billion[29]. - Total debts decreased by 14.1% to RMB37.93 billion from RMB44.16 billion[29]. - The total equity of the Group was RMB31.79 billion, down 13.2% from RMB36.63 billion[29]. - As of June 30, 2023, the Group's total cash and bank balances were approximately RMB12,444,654,000, down from RMB15,016,058,000 as of December 31, 2022[169]. - Total borrowings decreased from approximately RMB44,157,148,000 as of December 31, 2022, to approximately RMB37,934,889,000 as of June 30, 2023[176]. - Borrowings within one year or on demand decreased from approximately RMB10,742,959,000 as of December 31, 2022, to approximately RMB8,372,559,000 as of June 30, 2023[176]. Land Bank and Projects - As of June 30, 2023, the company and its joint ventures owned a land bank with a planned gross floor area of approximately 31.64 million square meters, sufficient for development over the next two to three years[1]. - The land bank as of June 30, 2023, had an aggregate planned GFA of approximately 31.64 million sq.m., with 25.40 million sq.m. attributable to the Group[90]. - The Group holds a total of 53 investment properties with a gross floor area (GFA) of approximately 4.00 million sq.m., of which 27 properties have commenced operation[109]. - The Group's land reserves are distributed across 60 cities, with a total planned construction area of approximately 31.64 million sq.m., of which the Group's attributable area is about 25.40 million sq.m.[92]. - The cost distribution of land reserves is 35.2% in the Yangtze River Delta, 21.1% in the Bohai Rim, 23.8% in the West Taiwan Strait, 9.1% in the Guangdong-Hong Kong-Macao Greater Bay Area, and 10.8% in the Central Western Region[92]. - The Group's land reserve cost distribution by city tier is 11.0% in first-tier cities, 54.7% in second-tier cities, and 34.3% in third and fourth-tier cities[92]. - The Group had over 80 projects for sale in more than 50 cities during the first half of 2023[42]. Market Conditions - The real estate market showed signs of recovery post-Spring Festival, but buyer confidence declined sharply in April 2023[32]. - The mainland real estate market is expected to remain under pressure, with significant divergence between first-tier cities and other markets, particularly affecting third and fourth-tier cities[114]. - The outlook for the second half of 2023 anticipates continued optimization of real estate control policies by central and local governments, particularly in first-tier and popular second-tier cities[114]. Recognition and Strategy - The company was recognized in 2023 as one of the "Best 30 of China Real Estate Listed Companies with Comprehensive Strengths" and "TOP 30 of China Real Estate Developers"[1]. - The company aims to enhance its competitive position in the PRC real estate market through proactive and prudent development strategies[1]. - The strategic plan "One Body Two Wings" will be further deepened to secure regional leadership[1]. - The company operates in key economic regions including the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area[2]. Expenses and Costs - Selling and marketing expenses increased by 11.2% from approximately RMB 531,629,000 in the first half of 2022 to approximately RMB 591,170,000 in the first half of 2023[146]. - Administrative expenses increased by 27.4% from approximately RMB 553,489,000 in the first half of 2022 to approximately RMB 705,255,000 in the first half of 2023, mainly due to the inclusion of a loss on disposal of joint ventures[151]. - Project management income decreased significantly by 43.9% from approximately RMB 100,718,000 in the first half of 2022 to approximately RMB 56,552,000 in the first half of 2023[143]. - Property management fees increased by 9.0% from approximately RMB 506,672,000 in the first half of 2022 to approximately RMB 552,071,000 in the first half of 2023, attributed to an increase in the number and floor area of properties under management[130]. - Finance costs increased by 10.8% from approximately RMB409,751,000 in the first half of 2022 to approximately RMB453,892,000 in the first half of 2023[158]. - Total interest expenses decreased by 16.5% from approximately RMB1,808,033,000 in the first half of 2022 to approximately RMB1,509,545,000 in the first half of 2023[158]. - Income tax changed from an expense of approximately RMB648,415,000 in the first half of 2022 to a credit of approximately RMB28,964,000 in the first half of 2023[159].
中骏集团控股(01966) - 2023 - 中期财报