Financial Performance - For the year ended December 31, 2021, total revenue amounted to approximately RMB101.8 million, representing a decrease of approximately 20.8% from RMB128.5 million in the previous year[14]. - The loss attributable to shareholders was approximately RMB863.9 million, a decrease of approximately RMB136.9 million from a loss of RMB1,000.8 million in the prior year[14]. - Loss per share was approximately RMB0.46, compared to RMB0.533 for the year ended December 31, 2020[15]. - The Group recorded property sales of approximately RMB41.6 million, representing a decrease of approximately 40.4% compared to the same period last year[16]. - The company's total revenue for the year was approximately RMB 101.8 million, a decrease of about 20.8% compared to RMB 128.5 million in the same period last year[17]. - The loss attributable to shareholders was approximately RMB 863.9 million, reduced by RMB 136.9 million from a loss of RMB 1,000.8 million in the previous year[17]. - The group recorded property sales of approximately RMB 41.6 million, a decrease of about 40.4% year-on-year[18]. - The Group's revenue for the year was approximately RMB 101.8 million, with property sales contributing approximately 40.8% and property leasing services contributing approximately 59.2%[54]. - Gross profit for the year amounted to approximately RMB 77.6 million, representing an increase of approximately RMB 16.0 million or 26.0% compared to the previous year[56]. - Other income and gains increased significantly to approximately RMB 279.9 million, up approximately RMB 276.5 million or 81.3 times compared to RMB 3.4 million in the same period last year[57]. Assets and Liabilities - As of December 31, 2021, total assets amounted to approximately RMB5,223.6 million, down from RMB6,422.2 million in the previous year[15]. - Total liabilities were approximately RMB5,201.0 million, a decrease from RMB5,558.2 million as of December 31, 2020[15]. - The total assets of the Group as of December 31, 2021, were approximately RMB5,223.6 million, representing a decrease of approximately RMB1,198.6 million from RMB6,422.2 million as of December 31, 2020[88]. - The total liabilities of the Group as of December 31, 2021, were approximately RMB5,201.0 million, a decrease of approximately RMB357.2 million compared to RMB5,558.2 million as of December 31, 2020[88]. - The current ratio of the Group as of December 31, 2021, was 0.46:1, down from 0.61:1 as of December 31, 2020[89]. - The gearing ratio of the Group as of December 31, 2021, was 98.7%, an increase from 71.1% as of December 31, 2020[90]. - The sum of trade payables, contract liabilities, other payables, and accruals was approximately RMB2,034.8 million as of December 31, 2021, an increase of approximately RMB89.7 million from RMB1,945.1 million as of December 31, 2020[82]. - The total current assets were approximately RMB2,158.8 million as of December 31, 2021, representing approximately 41.3% of total assets, down from 47.3% as of December 31, 2020[88]. - The net current liabilities of the Group were approximately RMB2,563.6 million as of December 31, 2021, an increase of approximately RMB622.5 million from RMB1,941.1 million as of December 31, 2020[88]. - The Group provided guarantees over mortgage loans of certain purchasers amounting to approximately RMB103.3 million as of December 31, 2021, compared to RMB16.1 million as of December 31, 2020[99]. Property Development and Sales - The Group's property portfolio comprised 15 development projects with an aggregate Gross Floor Area (GFA) of approximately 539,623 sq.m.[16]. - The presale amount for the Shandong Project reached approximately RMB244.7 million during the year[11]. - The Group delivered GFA of approximately 1,823 sq.m., remaining flat compared to the previous year[16]. - The average selling price of properties sold was approximately RMB22,820 per sq.m.[39]. - Property sales accounted for approximately 40.8% of the Group's total revenue, indicating a decline due to weak investment sentiment and COVID-19 impacts[36]. - The Group's ongoing projects include various phases of the China South-western City, with significant GFA under development[35]. - The total estimated saleable GFA for ongoing projects is significant, indicating strong future development potential[33]. - Future developments include new residential and commercial projects aimed at increasing overall GFA and sales potential[34]. - The Group's total gross floor area (GFA) for property development projects was approximately 539,623 sq.m., with 374,388 sq.m. completed and 127,228 sq.m. under development as of December 31, 2021[46]. Rental Income and Investment Properties - Rental income increased to approximately RMB60.2 million, representing a rise of approximately RMB1.4 million or 2.4% compared to RMB58.8 million in 2020[40]. - The actual area leased out of investment properties was approximately 136,273.82 sq.m., representing approximately 90.2% of the total investment properties held-for-lease[40]. - As of December 31, 2021, the Group's leased area was approximately 136,273.82 sq.m., representing about 90.2% of the total investment properties available for lease[41]. - The average occupancy rate for the Group's commercial investment properties was approximately 76.0% to 98.0% across different locations[45]. Management and Strategic Focus - The company plans to accelerate the de-stocking of completed properties and explore various asset revitalization strategies, including changing property use and selling properties in their entirety[20]. - The company aims to negotiate with financial institutions regarding outstanding borrowings to improve its liability and financial gearing conditions[20]. - The management has implemented measures to improve liquidity, including accelerating the pre-sale and sale of properties such as the Shandong Project and controlling costs[137]. - The management is exploring various financing options for working capital and commitments in the foreseeable future[137]. - The management believes that the consolidated financial statements for the year ended December 31, 2021, are prepared on a going concern basis, despite significant uncertainties[129]. - The management is negotiating with large property developers to sell the entire Shanghai property development project by the end of 2022, with proceeds aimed at repaying outstanding borrowings[144]. - The management believes that the value of the Group's properties is sufficient to repay outstanding principal and interest, and penalty interests may be waived after repayment[142]. Challenges and Market Conditions - The overall sentiment of property investment declined due to the COVID-19 pandemic and the Evergrande debt crisis, impacting property sales negatively[14]. - The commercial real estate business environment in China remains challenging post-COVID-19, affecting loan approvals from banks[134]. - The company is facing challenges in cash flow management due to ongoing government housing regulations and tightened credit financing policies in China, impacting the total sold building area and residential property sales[149]. - The board and audit committee are aware that the action plan to address the audit reservation is ongoing, particularly the sale of investment properties, which is expected to alleviate liquidity pressure[150]. - The overall property market is expected to recover in 2022, improving investment sentiment and economic conditions[142]. Corporate Governance and Board Composition - The company has a diverse board with members having backgrounds in finance, real estate, and energy sectors[172]. - The company has appointed several independent non-executive directors with extensive backgrounds in finance and corporate governance, enhancing its board expertise[186]. - The independent non-executive directors are involved in key committees, including audit and remuneration, which are crucial for corporate governance[190]. - The directors' profiles indicate a strong emphasis on financial compliance and corporate advisory services, which may benefit the company's strategic initiatives[184]. - The company is focused on expanding its market presence through strategic appointments and leveraging the experience of its directors[185].
新明中国(02699) - 2021 - 年度财报