Financial Performance - For the six months ended June 30, 2022, the Group recorded total revenue of approximately RMB 52.90 million, representing a year-on-year decrease of approximately 98.3%[14]. - Contracted sales amounted to approximately RMB 373.3 million, a decrease of approximately 94.2% compared to the six months ended June 30, 2021[14]. - The contracted gross floor area (GFA) sold was approximately 50,248 sq.m., reflecting a decrease of approximately 92.9% compared to the same period in 2021[14]. - For the six months ended June 30, 2022, property sales revenue decreased by approximately 98.4% to approximately RMB 48.6 million, accounting for about 91.9% of the total revenue of the Group[26]. - The total gross floor area (GFA) recognized was approximately 7,542 sq.m., representing a decrease of approximately 98.1% compared to the same period in 2021[26]. - The average selling price (ASP) of properties recognized as property sales was approximately RMB 6,447 per sq.m., reflecting a period-on-period decrease of approximately 16.7%[26]. - Gross profit for the same period was approximately RMB 13.1 million, reflecting a year-on-year decrease of approximately 98.6%, with a gross profit margin of approximately 24.9%[76][77]. - The loss for the six months ended June 30, 2022, was approximately RMB 423.7 million, compared to a profit of RMB 453.4 million for the same period in 2021[76][77]. - Revenue decreased from approximately RMB 3,092.7 million for the six months ended 30 June 2021 to approximately RMB 52.9 million for the six months ended 30 June 2022, representing a period-on-period decrease of approximately 98.3%[79]. - Gross profit decreased from approximately RMB 936.0 million for the six months ended 30 June 2021 to approximately RMB 13.1 million for the six months ended 30 June 2022, with gross profit margin decreasing from 30.3% to 24.9%[79]. - The net loss for the six months ended 30 June 2022 was approximately RMB 423.7 million, compared to a net profit of approximately RMB 453.4 million for the six months ended 30 June 2021, resulting in a net loss margin of approximately 801.0%[89]. Market Strategy and Development - The Group aims to maintain a stable development momentum by focusing on residential development and urban renewal projects, while also expanding into high value-added cities in Southern, Central, and Eastern China[14]. - The Group's business model is structured around "one focus, one core, and two wings," emphasizing residential development as the main business and urban renewal as the core[14]. - The Group continues to adapt to the new economic and policy environment in China, aiming to achieve the "three stabilities" of stabilizing land prices, housing prices, and expectations[14]. - The Group's strategy includes penetrating into the Greater Bay Area and focusing on Dongguan for sustainable growth[14]. - The Group is committed to enhancing its core competitiveness and sustainable development capabilities in response to market changes[14]. - The Group is actively advancing 10 urban renewal projects in Dongguan city, with a proposed total site area of approximately 1.92 million sq.m.[71]. - The Group has signed 9 preparatory service agreements for projects in Dongguan city, covering a total site area of 2,229,500 sq.m.[70][71]. - The management discussion highlights ongoing strategies for market expansion and new project developments across various cities[37]. - The Group will continue to enhance its market share in the Guangdong-Hong Kong-Macau Greater Bay Area, integrating industry, city, and people in its development strategy[127]. Financial Position and Assets - As of June 30, 2022, the Group had a total cash and bank balance of approximately RMB 1,546.9 million, down from approximately RMB 2,702.4 million as of 31 December 2021, primarily due to decreased proceeds from property sales[92]. - The Group's net current assets decreased from approximately RMB 3,638.7 million as of 31 December 2021 to approximately RMB 3,514.8 million as of 30 June 2022[92]. - As of June 30, 2022, the Group's borrowings were approximately RMB 1,418.8 million, down from RMB 1,608.1 million as of 31 December 2021[92]. - The Group had banking facilities totaling approximately RMB 2,955.3 million as of 30 June 2022, of which approximately RMB 1,895.4 million (about 64.1%) had been utilized[92]. - The Group's land reserves amounted to approximately 3,135,707 sq.m., including 21 projects and 4 parcels of land located in 11 cities across various urban clusters[63][77]. - The total land reserves of the Group as of June 30, 2022, amounted to approximately 6,416,359 square meters, with various projects categorized by property type[138]. - The Group's residential property projects include significant areas in Dongguan (1,126,271 sq.m.) and Heyuan (1,570,246 sq.m.)[138]. Employee and Management - As of June 30, 2022, the Group had a total of 410 employees, with total salary and welfare expenditure amounting to approximately RMB 72.8 million, a decrease from RMB 109.7 million for the same period in 2021[121]. - Employee training is provided systematically based on positions and expertise to enhance knowledge in the real estate sector[121]. - The Group plans to adopt a more proactive sales strategy and increase marketing investment in response to the anticipated steady rise in real estate sales in the second half of 2022[126]. - The management highlighted that Century Gemini and Huijing City are situated on the same parcel of land, which may optimize resource allocation[146]. Shareholding Structure - As of June 30, 2022, Wui Ying Holdings Limited, wholly owned by Mr. Lun Ruixiang, holds 4,421,241,000 shares, representing 84.15% of the company's total shareholding[181]. - Ms. Chan Hau Wan, as the spouse of Mr. Lun Ruixiang, is deemed to have an interest in the same number of shares held by Wui Ying Holdings Limited, totaling 4,430,841,000 shares or 84.33%[182]. - The total shareholding of Mr. Lun Ruixiang and his associates in the company is substantial, indicating strong control over the company[181]. - The company has disclosed that there are no other substantial shareholders outside of the directors and chief executives as of the reporting date[180]. - The beneficial ownership structure shows a clear concentration of ownership within a few individuals, particularly Mr. Lun Ruixiang and Ms. Chan Hau Wan[182]. Future Plans and Investments - The company aims to enhance its market presence through strategic acquisitions and expansions in key locations[145]. - Future projections indicate a focus on increasing the saleable GFA to improve revenue streams[145]. - The management discussed ongoing research and development efforts for new products and technologies to stay competitive in the market[145]. - The company is exploring new strategies to enhance operational efficiency and reduce costs[145]. - The company plans to use HK$765.1 million for development and construction costs related to urban renewal projects, specifically for Hefei Huijing City Centre and Huijing Yanhu International Resort[153]. - Future plans include further development of existing property projects to enhance market presence[152].
汇景控股(09968) - 2022 - 中期财报