Revenue and Financial Performance - For the six months ended June 30, 2023, the revenue from property development and investment was approximately RMB 4,468,000, a significant decrease of 91.1% compared to RMB 50,272,000 in the same period of 2022[9]. - The Group's total revenue for H1 2023 was RMB 4,468,000, down from RMB 50,272,000 in H1 2022, indicating a decrease of about 91.1%[155]. - The gross profit for the same period was RMB 206,000, down 97.4% from RMB 7,871,000 in the previous year[131]. - The loss before taxation for the six months was RMB 43,812,000, an improvement from a loss of RMB 56,012,000 in the prior year, indicating a 21.9% reduction in losses[131]. - The loss for the period attributable to owners of the company was RMB 32,831,000, compared to RMB 42,531,000 in the same period last year, reflecting a 22.9% decrease[131]. - The segment profit for property development and investment was a loss of RMB 35,192,000 in H1 2023 compared to a loss of RMB 47,696,000 in H1 2022, showing an improvement in performance[162]. - Total comprehensive expense for the period was RMB 44,503,000, down from RMB 59,945,000 in the prior year, indicating a decrease of about 25.7%[133]. - The company's net assets decreased to RMB 155,453,000 as of June 30, 2023, compared to RMB 199,956,000 at the end of 2022, reflecting a decline of approximately 22.2%[137]. - The company's current liabilities increased to RMB 446,036,000 from RMB 407,922,000 at the end of 2022, reflecting an increase of approximately 9.3%[136]. - The loss for the period ended June 30, 2023, was RMB 43,012,000, a decrease from RMB 59,457,000 in the same period of 2022, representing a reduction of approximately 27.6%[133]. Property Development Projects - The total area of residential and commercial properties recognized as sales for the First Maoming Project was approximately 510 square meters, down 86.8% from 3,855 square meters in 2022[10]. - Approximately 52.8% of the construction for the Second Maoming Project has been completed, with the basement, kindergarten, and first two blocks of residential buildings finished[16]. - The Second Maoming Project has a total site area of approximately 29,274.16 square meters, with a planned gross saleable area of 84,000 square meters, including 59,000 square meters for residential and 25,000 square meters for commercial properties[14]. - The pre-sales of residential properties are scheduled from June 2022 to the first half of 2024, while commercial properties are expected to begin pre-sales in the second half of 2023[17]. - The pandemic has caused delays in the development and pre-sales plans for the Second Maoming Project[16]. Financial Position and Assets - As of June 30, 2023, total assets were approximately RMB 606,859,000, reflecting a slight decrease of about 1% from RMB 614,052,000 at the end of 2022[26]. - The Group's total secured bank borrowing and other borrowings amounted to approximately RMB 16,970,000, down from RMB 21,028,000 at the end of 2022, with a gearing ratio of approximately 10.9%[27]. - Bank balances and cash were approximately RMB 22,886,000 as of June 30, 2023, compared to RMB 26,710,000 at the end of 2022[26]. - The Group had commitments for property development amounting to RMB 267,643,000 as of June 30, 2023, compared to RMB 295,205,000 as of December 31, 2022[54]. - The Group's maximum obligation for mortgage facilities provided to certain purchasers of properties was approximately RMB 86,877,000 as of June 30, 2023, up from RMB 41,814,000 as of December 31, 2022[56]. Internal Control and Governance - The management identified potential deficiencies in internal control systems during the investigation, necessitating strengthening of internal control mechanisms[73]. - The Board appointed an independent internal control consultant to review and improve the Group's internal control systems, which has been successfully implemented[81]. - The internal control management system has been improved, with no major risks or concerns identified post-implementation[81]. - The Company complied with all relevant provisions of the Corporate Governance Code during the six months ended June 30, 2023[107]. - The Company confirmed that all Directors complied with the Model Code for securities transactions during the six months ended June 30, 2023[108]. Shareholder Information and Dividends - As of June 30, 2023, Ming Hung Fung Company Limited and Mr. Liu Dong each hold 72,000,000 ordinary shares, representing approximately 28.29% of the total shares issued[95]. - Mr. Liu Zhongxiang and China Sugar Holdings Limited each hold 24,210,526 ordinary shares, accounting for approximately 9.51% of the total shares issued[95]. - No interim dividend was declared for the six months ended June 30, 2023, consistent with the previous year[109]. - The Share Option Scheme has not granted any options since its adoption on May 29, 2019, and there are 18,246,905 options available for grant as of June 30, 2023[106]. Market Conditions and Future Outlook - The overall real estate market in China is still in a bottoming-out phase, with significant declines in transaction volumes and prices, despite increasing policy support[19]. - The Group plans to strengthen its financial position through upcoming pre-sales of the Second Maoming Project[17]. - The management will continue to cautiously review the property market and seek suitable property development opportunities[24]. - The Group plans to further explore the trading business of raw cane sugar while implementing sufficient risk mitigations[24].
中国上城(02330) - 2023 - 中期财报