Financial Performance - The Group's revenue increased from RMB 1,806.7 million for the six months ended June 30, 2022, to RMB 1,985.2 million for the six months ended June 30, 2023, representing an increase of 9.9%[13]. - The Group recorded a loss of RMB 121.9 million for the six months ended June 30, 2023, compared to a profit of RMB 31.3 million for the same period in 2022[13]. - The Group's gross profit decreased by 40.7% from approximately RMB 243.3 million for the six months ended June 30, 2022, to approximately RMB 144.2 million for the six months ended June 30, 2023[51]. - The gross profit margin decreased to 7.3% for the six months ended June 30, 2023, compared to 13.5% for the same period in 2022[52]. - The net loss for the period was RMB 121,923, a significant decline from a profit of RMB 31,285 in the previous year[165]. - Basic and diluted loss per share was RMB (0.34), compared to RMB (0.05) in the same period of 2022[165]. Sales and Market Activity - The Group's unaudited contracted sales for the six months ended June 30, 2023, were approximately RMB 532.9 million, reflecting a significant decrease of 62.3% year-on-year[13]. - The contracted gross floor area (GFA) sold was approximately 74,090 sq.m., representing a period-on-period decrease of 59.1%[29]. - The average selling price (ASP) of contracted sales for the six months ended June 30, 2023, was approximately RMB 7,193 per sq.m., representing a period-on-period decrease of approximately 7.8%[29]. - The national land market continued to be in a downturn, with the scale of residential land demand and supply in 300 cities falling by more than 30% year-on-year, the lowest level in the past ten years[24]. - In the first half of 2023, the trading activity of new commercial housing in key 100 cities increased by 11% year-on-year, although the sales area fell by more than 20% period-on-period[23]. Financial Position and Ratios - As of June 30, 2023, the net gearing ratio was 9.9%, up from 3.8% as of December 31, 2022[16]. - The cash-to-short term borrowing ratio decreased to 0.98 times as of June 30, 2023, compared to 1.5 times as of December 31, 2022[16]. - The liabilities to asset ratio (excluding advanced sales proceeds) was 62.0% as of June 30, 2023, slightly up from 61.7% as of December 31, 2022[16]. - As of June 30, 2023, total current liabilities decreased to RMB 9,598,267 from RMB 11,225,278 as of December 31, 2022[168]. - Net assets as of June 30, 2023, were RMB 2,365,195, down from RMB 2,516,018 at the end of 2022[168]. Cost Management and Expenses - Selling and marketing expenses decreased by 40.6% from approximately RMB 83.0 million for the six months ended June 30, 2022, to approximately RMB 49.3 million for the six months ended June 30, 2023, attributed to reduced promotional activities[59]. - Administrative expenses decreased by 49.3% from approximately RMB 57.4 million for the six months ended June 30, 2022, to approximately RMB 29.1 million for the six months ended June 30, 2023, due to tighter cost controls[64]. - Other expenses increased by 522.6% from approximately RMB 9.3 million for the six months ended June 30, 2022, to approximately RMB 57.9 million for the six months ended June 30, 2023, primarily due to a contract revocation with the government resulting in a loss of RMB 49.6 million[66]. Cash Flow and Liquidity - Cash generated from operations for the first half of 2023 was RMB 312,504,000, a decrease from RMB 789,949,000 in the prior year[176]. - The total cash flows used in investing activities amounted to RMB 46,353,000, contrasting with a net inflow of RMB 29,467,000 in the prior year[176]. - The Group's current portion of interest-bearing bank and other borrowings as of June 30, 2023, was RMB 744,803,000, while cash and cash equivalents were only RMB 123,052,000, indicating a significant liquidity concern[186]. - The net decrease in cash and cash equivalents for the same period was RMB 10,281,000, significantly improved from RMB 193,265,000 in 2022[181]. Corporate Governance and Management - The Group is committed to high standards of corporate governance and has complied with all applicable code provisions during the six months ended June 30, 2023[126][128]. - The Directors and senior management receive compensation in the form of salaries, bonuses, and other benefits, with remuneration packages reviewed by the Board[117][121]. - The Group emphasizes employee training programs to enhance individual initiative and responsibility[115][121]. Future Outlook and Risks - The overall economic situation is expected to improve in the second half of 2023 due to the introduction of positive economic policies since May 2023[28]. - Material uncertainties exist regarding the Group's ability to achieve its plans due to the volatility of the property sector in China[194]. - The management acknowledges significant uncertainty regarding the ability to implement plans and measures due to the volatility in the real estate sector and the support from banks and creditors[196].
三巽集团(06611) - 2023 - 中期财报