Phoenix Property(SH:600716)2023-03-29 16:00Financial Performance - The company's operating revenue for 2022 was CNY 607,557,578, representing a 37.76% increase compared to CNY 441,032,200 in 2021[21]. - The net profit attributable to shareholders of the listed company was a loss of CNY 391,356,525, a significant decrease of 1,208.81% from a profit of CNY 35,295,334 in the previous year[21]. - The basic earnings per share for 2022 was -CNY 0.4181, a decrease of 1,209.02% compared to CNY 0.0377 in 2021[22]. - The company reported a net cash flow from operating activities of -CNY 2,538,149,578.83, compared to -CNY 127,182,248.91 in 2021, indicating a significant deterioration in cash flow[21]. - The weighted average return on net assets was -7.19% for 2022, a decrease of 7.8 percentage points from 0.61% in 2021[22]. - The company achieved a total sales amount of 334.61 million RMB and a sales area of 20,597.42 square meters during the reporting period[72]. - The company reported a net profit attributable to shareholders of -391,356,525.48 CNY for 2022, compared to a net profit of 35,295,334.96 CNY in 2021[131]. Assets and Liabilities - The total assets of the company at the end of 2022 were CNY 8,138,867,729.71, an increase of 3.48% from CNY 7,865,394,160.71 in 2021[21]. - Total liabilities rose to CNY 3,019,874,225.75 in 2022, compared to CNY 2,096,249,171.77 in 2021, marking an increase of around 43.96%[196]. - Current liabilities increased significantly to CNY 2,132,036,938.92 in 2022 from CNY 1,294,896,846.95 in 2021, a rise of approximately 64.55%[196]. - Long-term borrowings surged to CNY 422,337,000.00 in 2022 from CNY 200,000,000.00 in 2021, representing a growth of 111.17%[196]. - Cash and cash equivalents dropped to CNY 982,244,632.79 in 2022 from CNY 1,854,519,212.17 in 2021, a decrease of approximately 47%[195]. - Inventory increased significantly to CNY 4,676,159,157.04 in 2022 from CNY 3,026,810,027.75 in 2021, reflecting a growth of about 54.51%[195]. Market Conditions and Business Strategy - The decline in net profit was primarily due to weaker real estate market conditions and impairment provisions for projects in Zhenjiang and Taixing[23]. - The overall real estate development investment in China in 2022 was 1.32895 trillion RMB, a decrease of 10.0% year-on-year, with residential investment down by 9.5%[38]. - The company plans to continue expanding its market presence and developing new projects to improve financial performance in the coming years[32]. - The company is actively exploring the health and elderly care real estate sector, with the Yixing project serving as a pilot for this initiative[36]. - The company anticipates a recovery in housing demand as macroeconomic policies improve, which may lead to a shift in industry dynamics[93]. - The company plans to focus on the G22 project in Nanjing as a key model for its return to the market, emphasizing quality and construction progress[95]. Governance and Compliance - The company has maintained a good governance structure, holding 2 shareholder meetings and 9 board meetings during the reporting period[37]. - The company has established a robust corporate governance structure to ensure the protection of shareholder interests and compliance with legal requirements[101]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate reporting of financial information[104]. - The company has implemented measures to ensure the independence of its operations from controlling shareholders[104]. - The audit committee held 4 meetings during the reporting period, discussing key audit issues and confirming the fairness of financial statements[123]. - The company received a warning letter from the Jiangsu Securities Regulatory Bureau on March 29, 2022, regarding a failure to disclose a significant event involving a subsidiary's agreement totaling CNY 280 million[137]. Projects and Developments - The company has three ongoing projects with a total construction area of approximately 505,000 square meters, including a significant project in Nanjing with a total investment of RMB 3.5 billion[32]. - The Nanjing project is expected to start sales in Q3 and Q4 of 2023, with completion planned for May 2025[32]. - The company plans to deliver the completed multi-layer residential units of the Zhenjiang Phoenix and Yiju project by the end of 2023[33]. - The Zhenjiang Phoenix and Yiju project covers an area of 133 acres with a total construction area of approximately 225,800 square meters and a total investment of 2.05 billion RMB, with an actual investment of 175 million RMB in the current year[33]. - The Yixing Phoenix Yiranju project spans 283 acres with a total construction area of about 172,000 square meters and a total investment of 1.38 billion RMB, with an actual investment of 47.67 million RMB this year[35]. Financial Management and Risks - The company plans to enhance cash flow management and improve governance to support future operational development[95]. - The company faces risks from macroeconomic factors, policy changes, and industry dynamics that could impact sales and performance[98]. - The company has implemented a four-part risk control system involving decision-making, planning, execution, and auditing to filter and manage risks effectively[135]. - The company is required to pay a tax of CNY 23,603,688.87 due to a tax processing decision related to land use rights, with a valuation of the associated properties at CNY 786,789,629[141]. - The internal control system has been enhanced to prevent decision-making, operational, and financial risks, ensuring the safety of company assets[135].