Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 14,251,647, a decrease of 34.44% compared to RMB 21,739,463 in the same period of 2021[10]. - Gross profit dropped to RMB 203,106, reflecting a significant decline of 90.66% from RMB 2,175,405 year-on-year[10]. - The net loss for the period was RMB 4,570,465, a drastic increase of 539.30% compared to a profit of RMB 1,040,403 in the previous year[10]. - The pre-tax loss for the period was RMB (4,210,928), a decline of 358.54% from a profit of RMB 1,628,757 in the same period last year[10]. - The company reported a total comprehensive loss of RMB 4,429,232 thousand for the period[160]. - The company incurred a net loss of RMB 4,570,465 thousand for the six months ended June 30, 2022, compared to a profit of RMB 1,040,403 thousand in the same period of 2021, highlighting a substantial deterioration in financial performance[150]. - The financing costs increased dramatically to RMB 1,233,188 thousand in 2022 from RMB 98,487 thousand in 2021, indicating rising debt servicing challenges[146]. - The company reported a significant reduction in borrowings, with proceeds from borrowings at RMB 4,419,432,000 in the first half of 2022, down from RMB 17,824,813,000 in 2021[173]. Assets and Liabilities - The total assets as of June 30, 2022, amounted to RMB 218,641,824, down 10.92% from RMB 245,439,839 at the end of 2021[12]. - Total liabilities decreased to RMB 176,950,811, an 8.39% reduction from RMB 193,158,889[12]. - The company’s equity attributable to owners decreased by 24.83% to RMB 13,760,271 from RMB 18,304,598[12]. - The total liabilities increased from RMB 193,158,889 thousand to RMB 176,950,811 thousand, a decrease of about 8.4%[156]. - The company’s total equity decreased from RMB 52,280,950 thousand to RMB 41,691,013 thousand, a decline of about 20.2%[156]. - The company’s net current asset value was RMB 47,563 million as of June 30, 2022, with short-term borrowings amounting to RMB 15,004 million, raising concerns about liquidity[143]. - The company’s interest-bearing debt balance was RMB 45.2 billion, with a net debt ratio of 70% as of June 30, 2022[33]. Project Development and Sales - As of June 30, 2022, the group had a total of 242 property development projects under its subsidiaries, joint ventures, and associates[15]. - The company is actively managing its project timelines, with several projects expected to complete in 2023 and 2024, ensuring a steady flow of new properties to the market[19]. - The company reported a total of 37 projects with varying completion percentages, with the highest being 100% for the Shanghai Bayna Impression project[26]. - The company completed over 15,000 property deliveries in the first half of the year, enhancing user experience through streamlined processes[34]. - In the first half of 2022, the company's contracted sales amounted to RMB 38.7 billion, representing a 53% year-on-year decline[32]. - Property sales revenue amounted to RMB 13,102.80 million, down 37.18% from RMB 20,858.48 million in the previous year, with a total delivered area of 908,040 square meters, a decrease of 43.02%[75][77]. Market Conditions and Strategy - The GDP growth in China for the first half of 2022 was 2.5%, indicating a stable recovery despite economic pressures from the pandemic[31]. - From January to June 2022, the total sales of commercial housing in China were RMB 660.72 billion, a year-on-year decrease of 28.9%[31]. - The company aims to strengthen its presence in the Yangtze River Delta region while focusing on product and service quality to navigate market challenges[35]. - The company is actively pursuing new strategies for market expansion, as evidenced by the diverse locations of its projects across major cities[26]. - The company is focusing on expanding its construction services and rental income streams to mitigate the decline in property sales revenue[75]. Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions, except for the deviation regarding the separation of the roles of Chairman and CEO[31]. - The board believes that having the same individual serve as both Chairman and CEO enhances responsiveness and efficiency in business strategy formulation and implementation[31]. - The company has implemented measures to ensure compliance with listing rules and improve internal control procedures following a misunderstanding regarding the pledge of shares by the controlling shareholder[98]. Stock Options and Shareholder Information - The stock option plan allows the issuance of a maximum of 135,000,000 shares, which represents approximately 8.02% of the total shares issued as of June 30, 2022[118]. - The total number of stock options granted to any participant in any twelve-month period cannot exceed 1% of the company's issued share capital at that time[119]. - The company reported a total of 36,438,596 stock options granted, with no options exercised, canceled, or expired as of June 30, 2022[126]. - The beneficial owner, Mr. Ou Zonghong, holds 1,123,974,411 shares, representing 66.77% of the total shares[134]. - The company’s major shareholders include Dingxin Company Limited and Honesty Global Holdings Limited, both holding 66.77% of the shares[134].
融信中国(03301) - 2022 - 中期财报