CREC(SZ:000736)2019-08-29 16:00Financial Performance - The company's operating revenue for the first half of 2019 was CNY 1,747,648,532.56, a decrease of 62.20% compared to the same period last year[23]. - The net profit attributable to shareholders was CNY 92,926,286.29, down 82.84% year-on-year[23]. - The net cash flow from operating activities was negative CNY 3,689,747,707.42, a decline of 233.60% compared to the previous year[23]. - Basic earnings per share were CNY 0.170, representing an 83.17% decrease from the previous year[23]. - The weighted average return on net assets decreased to 4.00%, down 13.89 percentage points from the previous year[23]. - The gross profit margin for real estate sales during the reporting period was 37.93%, an increase of 11.17% compared to the same period last year[45]. - The operating cost for the reporting period was ¥1,066,869,268.25, down 68.36% from ¥3,371,592,499.26 year-on-year, reflecting the decrease in the area of properties delivered[73]. - The company’s rental and property management revenue was ¥44,254,554.73, with a gross profit margin of 58.91%, reflecting a 4.97% increase in revenue year-on-year[73]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 45,719,329,259.46, an increase of 13.65% from the end of the previous year[23]. - As of June 30, 2019, the company's total assets amounted to CNY 45,719.33 million, with total liabilities of CNY 41,321.14 million, and net assets attributable to shareholders of CNY 2,287.53 million[45]. - The company’s cash and cash equivalents decreased by ¥1,938,610,005.70, a decline of 334.37% compared to an increase of ¥827,144,503.68 in the previous year[76]. - Inventory increased to RMB 31,171,339,100.90, making up 68.18% of total assets, an increase of 5.03% from the previous year[81]. - Long-term borrowings reached RMB 6,949,306,945.97, which is 15.20% of total assets, up by 3.98% compared to the previous year[81]. Investments and Projects - The company acquired 7 development projects during the reporting period, with a total land price of approximately CNY 9,740 million, of which the company's investment was about CNY 7,360 million[42]. - The company has ongoing projects with a total area of 47.5 million square meters under construction in Chongqing[51]. - The company plans to expand its market presence by acquiring additional land plots, including a residential project in Kunming with a 99% equity stake and a total planned construction area of 30.85 million square meters[51]. - The total investment during the reporting period was RMB 907,500,000.00, a decrease of 12.15% from RMB 1,033,000,000.00 in the same period last year[87]. Corporate Governance and Management - The company plans not to distribute cash dividends or issue bonus shares[7]. - The company is actively enhancing its market-oriented operations and professional management capabilities through organizational adjustments and the establishment of a large operation system[38]. - The company aims to strengthen its risk control capabilities in light of rapid business development and increasing management demands[101]. - The company held several shareholder meetings with participation rates ranging from 53.44% to 67.58% during the reporting period, indicating active investor engagement[105]. Legal and Regulatory Matters - The company has a litigation case involving a debt claim of 146.51 million yuan against Changzhu Company, which has been unable to repay the debt since its business license was revoked in 2005[127]. - The company is involved in a lawsuit initiated by China Cinda Asset Management, claiming 35.45 million yuan due to alleged fraudulent capital contributions by Yuming Company and China Communications Real Estate[131]. - The company has reported no penalties or rectification measures during the reporting period[132]. Related Party Transactions - The company has entered into a related party transaction involving the sale of 100% equity of Ningbo Zhongjiao City Investment Holding Co., with a transfer price of 105.06 million yuan[137]. - The company has confirmed construction contracts with related parties, including a project worth 432.51 million yuan awarded to a subsidiary in February 2019[140]. - The company has engaged in transactions involving the sale of residential properties to related parties, totaling approximately 5.67 million yuan[145]. Market Conditions and Risks - The company faces external risks due to government macro policies affecting the real estate industry, with ongoing regulatory measures expected to persist, leading to uncertainties in real estate development[100]. - Internal risks include the company's land reserves growing rapidly but still being smaller compared to industry benchmarks, which limits the ability to develop multiple projects at scale[101]. - The company is committed to responding flexibly to policy changes and market dynamics to maintain cash flow stability and promote innovation and business expansion[100].