Financial Performance - For the year ended December 31, 2022, the Group's revenue was RMB 25,895.5 million, with a loss of RMB 14,617.2 million and a core loss of RMB 3,550.6 million[9][13]. - The Group's revenue decreased by 30.0% from RMB 36,992.4 million in 2021 to RMB 25,895.5 million in 2022, primarily due to a decrease in GFA being delivered[80]. - Recognized revenue from property sales decreased by 29.6% to RMB 25,707.6 million in 2022 from RMB 36,518.8 million in 2021, primarily due to a decrease in GFA delivered and lower sales of completed properties[61]. - Sales of properties accounted for RMB 25,707.6 million, representing 99.3% of total revenue, down 29.6% year-over-year[81]. - Other income and gains fell by 83.7% from RMB 1,559.3 million in 2021 to RMB 254.1 million in 2022, mainly due to reduced gains from the disposal of subsidiaries and interest income[89]. - Gross profit dropped by 67.5% from RMB 5,382.4 million in 2021 to RMB 1,749.3 million in 2022, with gross profit margin decreasing by 7.8 percentage points to 6.8%[114]. - The Group's loss for the year ended December 31, 2022, was RMB 14,617.2 million, compared to a profit of RMB 1,195.5 million for the year ended December 31, 2021[103]. Sales and Market Conditions - The total contracted sales amount was RMB 33,456.3 million, a decrease of 77.0% compared to the previous year, with a total contracted sales area of approximately 2.1 million square meters, down 75.8% year-on-year[22]. - The average contracted selling price was RMB 15,718 per square meter, compared to RMB 16,545 per square meter in the same period last year[22]. - The Group delivered over 42,000 new homes in 2022, focusing on "ensuring delivery and quality" amidst challenging market conditions[16]. - The overall sales of real estate enterprises in 2022 experienced negative growth, leading to tremendous operating and capital pressures[36]. - The real estate industry in the PRC faced unprecedented difficulties in 2022, with weak overall consumption demand and declining willingness to purchase houses[36]. - Looking ahead to 2023, the Group expects the real estate market to stabilize and gradually recover, focusing on improving marketing efforts and accelerating project sales[55]. Liquidity and Financial Management - The Group's liquidity management measures included seeking financing extensions, asset disposals, and cost-saving initiatives to address liquidity issues[16]. - The Group's overall debt management plan is being prepared to achieve a feasible and consensus-based solution to protect stakeholder interests[16]. - The Group's liquidity needs are primarily met through proceeds from property sales, loans, and capital injections from shareholders[132]. - The Group has implemented liquidity management and cost-saving measures to address the challenges posed by the market, including seeking extensions on financing and accelerating asset sales[172]. - As of December 31, 2022, the Group had cash and bank balances of RMB 9,249.7 million, a significant decrease from RMB 39,120.5 million in 2021[135]. - The Group's current ratio was 1.0 as at 31 December 2022, down from 1.3 as at 31 December 2021[173]. - The net gearing ratio was 294.6% as at 31 December 2022, significantly higher than 85.5% as at 31 December 2021[173]. Cost Management and Expenses - The Group's cost of sales decreased by 23.6% from RMB 31,610.0 million in 2021 to RMB 24,146.1 million in 2022, attributed to a reduction in GFA delivered[113]. - Administrative expenses decreased by 22.3% from RMB 1,190.2 million in 2021 to RMB 924.8 million in 2022, due to organizational restructuring and enhanced cost control[93]. - Selling and distribution expenses decreased by 21.5% from RMB 1,243.3 million in 2021 to RMB 976.2 million in 2022, primarily due to enhanced control over expenses and reduced marketing activities[118]. - The Group recorded fair value losses on investment properties of RMB 410.6 million in 2022, compared to RMB 201.2 million in 2021, due to a decline in demand for commercial property[99]. Future Outlook and Strategy - The Group aims to maintain operational stability and sustainable development in 2023, with expectations of a gradual stabilization in the real estate market as COVID-19 impacts diminish[17]. - The Group aims to strengthen financial risk management and optimize asset structure to ensure financial stability moving forward[40]. - The Group's strategic focus includes enhancing internal management systems and building an efficient team for sustainable development[40]. - The Group is committed to improving product and service quality to meet customer housing needs[40]. Project Development and Land Bank - As of December 31, 2022, the Group had a land bank with an aggregate GFA of 19.10 million sq.m., with no new land parcels replenished during the year[107]. - The company has a total land bank of 1,404,374 square meters in the Western China region, with a land cost of RMB 711,553,000[62]. - The Group's properties delivered in 2022 included several key projects across various cities, contributing to recognized revenue[48]. - The company plans to expand its presence in Fuzhou with multiple projects, including the Fuzhou Zhenro Mawei Sanjiang Habitat, expected to complete in August 2024[78].
正荣地产(06158) - 2022 - 年度财报