SMC(SH:600823)2023-05-11 16:00Financial Performance - In 2022, the company's operating revenue was approximately ¥5.75 billion, a decrease of 70.37% compared to ¥19.39 billion in 2021[26] - The net profit attributable to shareholders was approximately -¥4.53 billion, a decline of 571.47% from a profit of ¥961 million in 2021[26] - The company's total assets decreased by 8.77% to approximately ¥130.45 billion from ¥142.98 billion in 2021[26] - The net assets attributable to shareholders decreased by 19.67% to approximately ¥20.73 billion from ¥25.81 billion in 2021[26] - The basic earnings per share for 2022 was -¥1.21, a decrease of 565.38% compared to ¥0.26 in 2021[27] - The weighted average return on equity was -19.24%, a decrease of 22.85 percentage points from 3.61% in 2021[27] - The cash flow from operating activities was approximately ¥604 million, a significant improvement of 103.75% from -¥16.11 billion in 2021[26] - The company achieved total operating revenue of RMB 5.747 billion in 2022, a year-on-year decrease of 70.37%[35] - The company reported a net profit of -RMB 7.304 billion, a decline of 442.04% compared to the previous year, with net profit attributable to shareholders at -RMB 4.531 billion, down 571.47%[35] - The comprehensive gross profit was 1.40 billion RMB, reflecting an 80.33% decline year-on-year, with a net loss of 7.30 billion RMB, a 442.04% decrease[51] Revenue Sources - Real estate sales revenue was RMB 3.948 billion, down 77.20% year-on-year, while rental income increased by 4.43% to RMB 1.447 billion[35] - The sales revenue of managed commercial projects decreased by 21% year-on-year, while foot traffic declined by 24%[38] - The occupancy rate of managed commercial projects fell by about 4 percentage points year-on-year, reaching a historical low[38] - The occupancy rate of managed office projects decreased by 5 percentage points compared to the same period in 2021, with 56% of the area vacated due to poor tenant performance[39] Operational Challenges - The company faced a significant risk with assets of subsidiaries under forced execution amounting to ¥16.29 billion, representing 39.91% of the company's net assets[4] - The company recorded a significant increase in financial expenses by 222.41% to 891 million RMB, primarily due to interest capitalization[52] - The company experienced a 936.72% increase in asset impairment losses, totaling approximately 4.83 billion RMB[53] - The company undertook a one-time asset impairment for certain inventories due to market conditions, contributing to the net loss[36] Strategic Initiatives - The company plans to optimize its dual-driven operational model of "real estate development and sales + commercial operation and management" to reduce reliance on traditional real estate operations[49] - The company is actively seeking policy support and has applied for credit enhancement to issue bonds for financing[39] - The company is focusing on diversifying its product offerings to meet various customer needs in lifestyle, office, and entertainment sectors[49] - The company is focusing on revitalizing existing resources and enhancing product and service quality to meet market demands[88] Market Conditions - In 2022, the national residential land transaction volume decreased by 31.09% year-on-year, with total land transfer fees dropping by 31.03%[41] - The real estate industry saw a 50.7% year-on-year decline in non-bank financing, with 82.4 billion yuan raised by 100 typical real estate companies, a decrease of 38%[42] - The overall retail sales in 2022 amounted to 4.39733 trillion yuan, a slight decrease of 0.2% year-on-year, indicating a challenging consumer market[45] - The offline consumption market remains weak, with rental rates and occupancy levels at a three-year low, indicating a slow recovery path for the commercial office market[96] Corporate Governance - The company has retained the accounting firm Zhongxing Caiguanghua for the 2022 fiscal year[107] - The company is committed to maintaining transparency in its financial dealings and ensuring compliance with regulatory requirements[107] - The company has not faced any penalties from securities regulatory agencies in the past three years, indicating compliance with regulations[118] - The company has a structured decision-making process for remuneration, involving the remuneration and assessment committee[116] Future Outlook - The company anticipates that the housing demand will stabilize around 1.2 to 1.3 billion square meters in the medium term, with a focus on meeting rigid and improved housing needs[88] - The company emphasizes a shift towards high-quality development in the real estate sector, aligning with national policies to enhance living standards[88] - The company is exploring new technologies to improve operational efficiency, although specific investments were not detailed[166] - Future outlook remains cautiously optimistic, with an emphasis on leveraging existing resources to navigate market challenges[111] Debt Management - The total amount of guarantees provided by the company, including those to subsidiaries, is RMB 115.83 billion, which accounts for 57.52% of the company's net assets[169] - The company has provided a guarantee of RMB 10.38 billion for a subsidiary, which is currently in the process of debt repayment[169] - The company has a total of RMB 35.31 billion in guarantees provided to subsidiaries during the reporting period[169] - The company has committed to not defaulting on its debt obligations, as reaffirmed in the bondholder meetings[193] Environmental and Social Responsibility - The company has not established an environmental protection mechanism and did not invest any funds in environmental protection during the reporting period[140] - The company actively promoted "plastic reduction and low carbon" initiatives, resulting in a reduction of approximately 12,000 plastic bags at the Xiamen Shimao Cloud Viewing Hall and 50,000 at the Xiamen Jimei Shimao Plaza in 2022[142] - The company aims to integrate green operations into its business processes, promoting low-carbon responsibilities among tenants[142] - The company has not disclosed a separate social responsibility report or ESG report during the reporting period[144]