SHUI ON LAND(HK:00272)2023-03-23 08:30Financial Performance - In 2022, the company recorded a net profit of RMB 1.475 billion, with profit attributable to shareholders amounting to RMB 906 million, reflecting a decrease of 33% and 45% respectively compared to 2021[1][2][3]. - Total revenue for 2022 decreased by 11% to RMB 15.565 billion, down from RMB 17.555 billion in 2021, primarily due to delays in construction and delivery of residential units[2][3]. - Contracted property sales fell by 10% year-on-year to RMB 27.219 billion, while recognized property sales amounted to RMB 11.695 billion, a decrease of 14% from the previous year[2][3]. - The total rental and related income decreased by 4% to RMB 2.802 billion, impacted by rent concessions provided to tenants[2][3]. - The company declared a final dividend of HKD 0.064 per share, down from HKD 0.084 in 2021, resulting in a total dividend of HKD 0.10 for 2022[2][3]. - The company reported a significant increase in customer interest, with over 2,000 subscriptions for 571 units in the Shanghai Panlong Tiandi project[13]. - The company’s annual profit for 2022 was RMB 1,475 million, a significant decrease from RMB 2,208 million in 2021, representing a decline of 33.2%[73]. Assets and Liabilities - The net asset liability ratio increased to 45% from 30% in 2021, reflecting a 15 percentage point rise due to the redemption of USD 600 million of perpetual capital securities[1][3]. - The total assets decreased by 8% to RMB 104.878 billion, down from RMB 113.896 billion in 2021[3]. - The group’s total liabilities as of December 31, 2022, were RMB 20.144 billion, with total equity amounting to RMB 44.401 billion[51]. - The company has pledged assets totaling RMB 35.536 billion as of December 31, 2022, to secure borrowings of RMB 10.662 billion[52]. - The group has contractual development costs and capital expenditure commitments of RMB 5.771 billion as of December 31, 2022, down from RMB 8.999 billion in the previous year[53]. Market Outlook - The company anticipates gradual economic recovery following government support measures, with improved business sentiment expected as COVID-19 restrictions are eased[2]. - The global economic growth is projected to decline from 3.4% in 2022 to 2.9% in 2023 due to geopolitical tensions and inflation[92]. - China's economic growth slowed to 3.0% in 2022, with a rebound expected following the end of the "clearing zero" policy and reopening of borders[92]. - The government has set a GDP growth target of 5.5% for Shanghai in 2023, focusing on AI, new energy vehicles, semiconductors, and high-end equipment[93]. Property Development - The company has approximately 291,000 square meters of residential properties available for sale and pre-sale in 2023, covering six projects[11]. - The company plans to launch new projects in 2023, including the Wuhan Yangtze Tiandi project with a total saleable area of 124,900 square meters[11]. - The total area of residential properties sold in 2022 was approximately 273,700 square meters, a decrease from 466,800 square meters in 2021[10]. - The company has locked in total sales of RMB 40.9 billion as of December 31, 2022, which will be recognized in the fiscal year 2023 and beyond[2]. Investment Properties - As of December 31, 2022, the group's investment properties (excluding operating hotels and self-used properties) had a book value of RMB 96.513 billion, with a total built area of 2,635,700 square meters[21]. - The investment properties located in Shanghai, Wuhan, Foshan, Nanjing, and Chongqing accounted for 79%, 10%, 6%, 3%, and 2% of the book value, respectively[21]. - The total area available for lease is 1,393,200 square meters, with a total fair value of RMB 53.152 billion[22]. Financial Management - The company’s cash flow management is aimed at maintaining a balance between resource utilization, bank borrowings, and debt financing to ensure liquidity[54]. - The company has entered into forward contracts totaling approximately USD 1.530 billion and HKD 300 million to hedge currency risks as of December 31, 2022[55]. - The company incurred financial expenses, including exchange differences, totaling RMB 2.127 billion in 2022, up from RMB 895 million in 2021, with interest expenses rising 7% to RMB 1.951 billion[44]. Employee and Corporate Governance - The company employed 3,098 employees as of December 31, 2022, a decrease from 3,186 employees in 2021, including 1,545 property management personnel[101]. - The company is focused on providing a range of employee benefits and career development opportunities, including retirement plans and medical insurance[101]. - The company’s board confirmed compliance with the standards set out in the Securities Trading Code for directors throughout the year ended December 31, 2022[100]. Strategic Initiatives - The company plans to maintain a cautious approach and closely monitor market recovery while seeking suitable acquisition opportunities[94]. - The company is exploring suitable acquisitions and development projects to enhance its portfolio[105]. - The company is committed to its dividend policy and maintaining a strong financial position[105].