Economic Overview - The GDP of the People's Republic of China increased by approximately 2.5% in the first half of 2022 compared to the same period last year[12]. - The Central Government has implemented various supportive policies to stabilize the economy and has seen positive results in economic indicators[12]. - The real estate sector is expected to remain essential for housing demand despite current market challenges, with strong rigid demand anticipated due to urbanization[24][26]. Real Estate Market Performance - The total sales area of commercial buildings sold in the first half of 2022 was approximately 690.0 million square meters, representing a year-on-year decrease of approximately 22.0%[13]. - The sales value of commercial buildings in the first half of 2022 amounted to approximately RMB6.6 trillion, reflecting a year-on-year decrease of approximately 28.9%[13]. - Total investment in the real estate sector for the first half of 2022 was approximately RMB6.8 trillion, representing a year-on-year decrease of approximately 5.4%[13]. - Multiple real estate projects that were previously suspended have resumed construction as of July 2022[18]. - Local governments have introduced measures to ease the real estate market and support reasonable housing demand[18]. Financial Performance of the Group - The Group recorded a revenue of approximately RMB 82.0 million for the first half of 2022, representing an 87.1% year-on-year decrease from RMB 636.0 million in the same period last year[23][35]. - Profit attributable to equity shareholders decreased to approximately RMB 39.8 million, reflecting a year-on-year decline of approximately 66.6% from RMB 119.2 million[23][35]. - Total properties contracted sales amounted to approximately RMB 307.0 million with a total gross floor area of approximately 28,000 sq.m. in the first half of 2022[23][25]. - The gross profit for the first half of 2022 was approximately RMB 23.1 million, down 84.3% from RMB 147.0 million in the same period last year[39]. - Revenue from property sales for the six months ended June 30, 2022, was approximately RMB 80.4 million, representing a significant decrease of 87.3% from RMB 634.5 million for the same period in 2021[55]. Cost and Expense Management - Cost of sales decreased by approximately 88.0% to RMB 58.9 million, down from RMB 489.0 million in the previous year[57]. - Selling expenses decreased by approximately 75.9% to RMB 6.6 million, down from RMB 27.2 million in the previous year[66]. - Administrative expenses increased by approximately 5.3% to RMB 31.7 million, compared to RMB 30.1 million reported for the same period in 2021[67]. - Finance costs for the six months ended June 30, 2022, were approximately RMB 0.5 million, a decrease of approximately 97.7% compared to RMB 23.1 million for the same period in 2021[76][80]. Shareholder and Corporate Governance - The Directors do not recommend any payment of interim dividend for the six months ended June 30, 2022, consistent with the previous year[129]. - The company has adopted the corporate governance code as per Appendix 14 of the Listing Rules, maintaining compliance with all statutory provisions for the six months ended June 30, 2022[137]. - The Audit Committee consists of three independent non-executive Directors, ensuring effective oversight of the financial reporting process and internal controls[144]. - No incidents of non-compliance with the guidelines by relevant employees were reported for the six months ended June 30, 2022[143]. Share Capital and Options - As of June 30, 2022, the total number of issued ordinary shares was 750,000,000[5]. - Fortune Speed Investments Limited holds 562,500,000 ordinary shares, representing approximately 75.0% of the issued share capital[169]. - The company has adopted a Share Option Scheme approved on November 26, 2018, allowing eligible participants to be granted share options[174]. - The balance of share options exercised during the six months ended June 30, 2022, was zero[177]. Liquidity and Financial Position - The Group's cash and cash equivalents amounted to approximately RMB 208.8 million, with 76.2% in RMB and 23.8% in HKD[86]. - The Group's total bank loans due for repayment as of June 30, 2022, were approximately RMB 160 million, down from RMB 322.5 million as of December 31, 2021[88]. - The Group has maintained a strong liquidity position and does not expect to encounter difficulties in meeting credit obligations when they fall due[108].
万城控股(02892) - 2022 - 中期财报