Financial Performance - In 2022, the revenue of Million Cities Holdings Limited was RMB 166.4 million, representing a decrease of 58.4% compared to RMB 402.4 million in 2021[15]. - Profit attributable to shareholders for 2022 was RMB 69.2 million, down 57.7% from RMB 163.5 million in 2021[15]. - The company's earnings per share (EPS) decreased to 9.22 RMB cents in 2022 from 22.18 RMB cents in 2021[17]. - For FY2022, the Group recorded a revenue of approximately RMB 571.2 million, representing a year-on-year decrease of about 57.7%[32]. - The net profit attributable to equity shareholders decreased to approximately RMB 69.2 million, a decline of approximately 58.4% year-on-year[32]. - Revenue from property sales for FY2022 amounted to approximately RMB568.1 million, representing a decrease of approximately 57.7% compared to RMB1,345.4 million in FY2021[85]. - Gross profit for FY2022 was approximately RMB275.1 million, down approximately 12.2% from RMB313.4 million in FY2021, with a gross profit margin increasing to approximately 48.2%[88][89]. - The Group's profit before taxation decreased by 18.1% to RMB 237,055,000 from RMB 289,562,000 in FY2021[58]. Market Conditions - The total sales area of commercial housing in China decreased by approximately 24.3% to 1.36 billion square meters in 2022 compared to the previous year[26]. - The sales volume of commercial housing in monetary terms fell by approximately 26.7% to RMB 13.3 trillion in 2022[26]. - Total investment in the real estate sector in 2022 was approximately RMB 13.3 trillion, reflecting a year-on-year decrease of about 10.0%[26]. - The easing of pandemic prevention measures in 2023 is expected to spur rapid economic recovery and bolster consumer confidence[35]. - The government has gradually relaxed funding restrictions on real estate enterprises, which is anticipated to relieve cash flow tightness for developers[35]. - The central government continues to emphasize that "houses are built to be inhabited but not for speculation" as a guiding principle for the real estate market[27]. - The GDP of China grew by 3% in 2022 despite the challenging economic environment[22]. Financial Management - The debt ratio improved to 47.0% in 2022 from 55.2% in 2021, indicating better financial stability[17]. - Finance costs significantly reduced by 80.6% to RMB 4,622,000 from RMB 23,845,000, indicating improved financial management[58]. - The Group's gearing ratio as of December 31, 2022, was approximately 10.9%, down from approximately 23.7% as of December 31, 2021, primarily due to bank loan repayments[113]. - Cash and cash equivalents as of December 31, 2022, amounted to approximately RMB 205.6 million, with 79.1% denominated in RMB and 20.9% in HKD[114]. - The Group's bank loans as of December 31, 2022, were interest-bearing at one-year Loan Prime Rate plus 1.95% per annum[127]. Development Projects - The Group achieved an aggregated contracted sales value of approximately RMB 487.0 million with a total gross floor area of approximately 40,800 sq.m. in FY2022[32]. - The estimated completion dates for several development projects are set for 2026, indicating ongoing expansion efforts[68]. - As of December 31, 2022, the total GFA of the Group's land bank was approximately 1,581,176 sq.m., including 409,997 sq.m. of unsold completed properties[62]. - The total unsold GFA across all completed projects is 409,997 sq.m., indicating a significant inventory that may impact future revenue[77]. - The Group's completed development projects include 55% ownership interest in Million Cities Tycoon Place Phase 3 and 4, with 10,001 sq.m. and 7,743 sq.m. unsold GFA respectively[74]. Employee Management - The Group had a total of 130 full-time employees as of December 31, 2022, down from 200 in 2021[155]. - The Group's total staff costs for FY2022 were approximately RMB41.8 million, down from RMB48.8 million in 2021, with about RMB13.5 million capitalized into inventories[155]. - The Group emphasizes employee training programs to maintain and enhance its rich experience in property development[165]. - The compensation policy for the Group's employees is based on individual performance and experience, aligning with salary trends in Hong Kong and China[165]. Governance and Management - The company has a strong board of directors with members holding significant positions in various listed companies, enhancing its governance and oversight capabilities[191]. - The company is committed to maintaining high standards of financial management and internal controls, as evidenced by the expertise of its board members[196]. - The management team includes independent non-executive directors responsible for providing independent opinions to the board[200]. - Mr. Wong Ting Chung, the Chairman and Executive Director, has over 19 years of experience in property investment and development, primarily responsible for the Group's strategic planning[169]. - Mr. Lau Ka Keung, the CEO, has been with the Group since 2006 and is responsible for executing strategic planning and general management[173].
万城控股(02892) - 2022 - 年度财报