Financial Performance - The Group's revenue decreased from RMB2,166.0 million for the six months ended 30 June 2021 to RMB1,806.7 million for the six months ended 30 June 2022, representing a decline of approximately 16.6%[11]. - The Group's profit decreased from RMB194.4 million for the six months ended 30 June 2021 to RMB31.3 million for the six months ended 30 June 2022, a decline of approximately 83.9%[11]. - For the six months ended June 30, 2022, the Group recorded unaudited contracted sales of approximately RMB1,414.0 million, representing a period-on-period decrease of 70.6%[42]. - The average selling price (ASP) of contracted sales for the same period was approximately RMB7,801 per sq.m., a decrease of about 12.8% year-on-year[42]. - Gross profit decreased by 52.1% from approximately RMB507.8 million for the six months ended June 30, 2021, to approximately RMB243.3 million for the six months ended June 30, 2022, primarily due to fewer properties completed and delivered[75]. - Profit before tax decreased to RMB 91,186, representing a decline of 68.1% from RMB 285,858 in the prior year[177]. - The company reported a basic and diluted loss per share of RMB (0.05) compared to earnings of RMB 0.13 per share in the previous year[177]. Financial Position - As of 30 June 2022, the Group's net gearing ratio was at a net cash position, indicating a strong financial position[13]. - The cash-to-short term borrowing ratio improved to 1.4 times as of 30 June 2022, up from 1.2 times as of 31 December 2021[13]. - The liabilities to asset ratio (excluding advanced sales proceeds) decreased to 63.4% as of 30 June 2022, down from 66.0% as of 31 December 2021[13]. - The total indebtedness of the Group decreased to RMB 1,211,153,000 as of June 30, 2022, down 24.2% from RMB 1,598,874,000 as of December 31, 2021[96]. - The Group's assets pledged for borrowings were valued at approximately RMB 3,367.8 million as of June 30, 2022, down from RMB 4,275.0 million as of December 31, 2021[113]. - Total current assets amounted to RMB 15,692,010, a decrease from RMB 16,689,343 as of December 31, 2021[179]. - Total current liabilities were RMB 13,480,442, down from RMB 14,356,365 at the end of 2021[179]. Market Conditions - The real estate industry is expected to benefit from continued monetary policy relaxation in the second half of 2022, with adjustments on both supply and demand sides[28]. - The real estate market is expected to fully warm up in September and October 2022, with significant recovery signs in cities like Suzhou, Dongguan, and Chengdu[30]. - The number of cities experiencing month-on-month price increases for commercial residential buildings has risen, indicating a recovery in real estate sales and investment data[29]. - Major projects are concentrated in Nanjing and Hefei urban agglomerations, which are gradually gaining market influence due to improved urban capabilities[24]. Operational Strategies - The Group aims to maintain stable results with a rising trend while increasing efficiency and reducing expenditure[15]. - The Group is focused on improving core business capabilities and deepening its development footprint in the Yangtze River Delta[15]. - The Group plans to control quality and profits while organizing sufficient funds to balance supply and demand[39]. - The Group aims to enhance competitiveness through quality management, service improvement, and internal project operations in response to new market demands[24]. - The Group plans to enhance its market expansion strategies and focus on new product development to improve future performance[67]. Employee and Governance - The Group had 385 employees as of June 30, 2022, down from 779 employees as of December 31, 2021, indicating a reduction of approximately 50.6%[123]. - The Group is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions set out in the Corporate Governance Code during the reporting period[138]. - The Directors and senior management receive compensation in the form of salaries, bonuses, and other benefits, with remuneration packages reviewed by the Board[127]. Cash Flow and Liquidity - The cash generated from operations for the six months ended June 30, 2022, was RMB 789,949,000, a decrease from RMB 1,211,953,000 in the same period of 2021[188]. - The net cash flows from operating activities amounted to RMB 653,633,000 for the first half of 2022, compared to RMB 998,715,000 in the prior year[188]. - The current portion of interest-bearing bank and other borrowings as of 30 June 2022 was RMB 941,075,000, raising concerns about the Group's ability to continue as a going concern given the low cash reserves[198]. - The significant drop in cash and cash equivalents suggests potential liquidity issues that could impact future operations and investments[198]. Shareholder Information - As of June 30, 2022, Mr. Qian Kun holds 434,895,000 shares, representing a 64.38% shareholding interest in the company[153]. - The total number of issued shares as of June 30, 2022, is 675,529,000 shares[156]. - Q Kun Ltd. is a substantial shareholder with 397,275,000 shares, accounting for 58.81% of the company's shares[165]. - The company confirms that public float is no less than 25% of the entire share capital as of the date of the interim report[171].
三巽集团(06611) - 2022 - 中期财报