SHUI ON LAND(HK:00272)2024-03-21 08:30Financial Performance - The company recorded total revenue of RMB 9.75 billion for 2023, a decrease of 37% compared to RMB 15.57 billion in 2022[3]. - Net profit for the year was RMB 1.4 billion, down 5% from RMB 1.48 billion in the previous year[3]. - The company declared a total dividend of HKD 0.09 per share for 2023, down from HKD 0.10 per share in 2022[2]. - The annual profit for 2023 was RMB 1.397 billion, down from RMB 1.475 billion in 2022, with earnings per share at RMB 0.101, compared to RMB 0.113 in 2022[48]. - The company reported a total of RMB 4,103 million in segment performance for property development, reflecting robust operational efficiency[76]. - The company’s share of profits from joint ventures and associates recorded a net income of RMB 781 million in 2023, compared to a net loss of RMB 151 million in 2022[47]. - The gross profit for 2023 fell by 24% to RMB 5.045 billion, while the gross profit margin improved to 52% from 43% in 2022 due to a higher contribution from property investments[44]. - The total profit before tax for 2023 was RMB 3,407 million, compared to RMB 2,699 million in 2022, reflecting a strong performance[80]. Property Sales and Revenue - Contracted property sales fell significantly to RMB 11.4 billion, a decrease of 58% from RMB 27.22 billion in 2022[3]. - Property sales amounted to RMB 58.98 billion, primarily from Shanghai Panlong Tiandi, with total sales (including joint ventures) reaching RMB 38.565 billion[5]. - Confirmed property sales for 2023 totaled RMB 38.565 billion, with a 4% decrease in average selling price to RMB 63,200 per square meter compared to 2022[8]. - The total revenue from property sales was RMB 5.898 billion, compared to RMB 11.695 billion in the previous year[9]. - The total area sold in 2023 was 350,900 square meters, with an average price of RMB 29,000 per square meter[11]. - The company’s cash and bank deposits totaled RMB 8.92 billion, a decrease of 33% from RMB 13.37 billion in the previous year[3]. Rental and Related Income - Rental and related income increased to RMB 3.24 billion, representing a 16% year-on-year growth from RMB 2.8 billion[3]. - The rental income from properties in Shanghai accounted for 76% of the total rental income of RMB 3.243 billion, which increased by 16% from RMB 2.802 billion in 2022[28]. - As of December 31, 2023, the rental income and related revenue of the group reached RMB 2.398 billion, a 16% increase from RMB 2.07 billion in 2022, driven by the openings of Shanghai Panlong Tiandi and Shanghai Hongshufang[44]. Debt and Financial Position - The net asset liability ratio slightly increased to 52% as of December 31, 2023, compared to 45% in 2022[3]. - The company’s net debt as of December 31, 2023, was RMB 23.016 billion, with a net asset liability ratio of 52%, up from 45% in 2022[53]. - The total amount of bank borrowings in HKD and USD was RMB 18.400 billion, representing 58% of total borrowings[53]. - The group had unutilized bank financing of approximately RMB 3.716 billion as of December 31, 2023[54]. - The group provided guarantees of RMB 145 million for mortgage loans to customers purchasing developed properties[58]. ESG and Sustainability - The company’s ESG rating improved from A to AA by MSCI, and from B to A- by CDP during the year[2]. - The company’s MSCI ESG rating improved from A to AA, and CDP rating improved from B to A- in 2023, reflecting its commitment to sustainability[7]. Market and Economic Conditions - China's economy recorded a growth of 5.2% in 2023, but the recovery remains unstable due to a sluggish real estate market and significant deflationary pressures[91]. - The financing amount obtained by developers has dropped over 35% from the peak in 2021, reflecting ongoing challenges in the real estate sector[91]. - The global economic growth is projected to slow from 2.6% in 2023 to 2.4% in 2024, below the average growth rate of 3.1% in the 2010s[91]. Future Outlook and Strategy - The company plans to launch more development projects in 2024 and beyond, depending on market recovery and project progress[10]. - The company aims to enhance its existing property portfolio with a focus on community and cultural competitive advantages, as demonstrated by the success of Panlong Tiandi[43]. - The company anticipates facing more challenges in 2024 but aims to strengthen its foundation for future growth[102]. - The company is focused on identifying suitable acquisition opportunities and enhancing its project development and management capabilities[104]. Employee and Governance - As of December 31, 2023, the total number of employees at the company was 3,054, a decrease from 3,098 employees as of December 31, 2022[100]. - The company provided a range of employee benefits including retirement plans, long-term incentive plans, and medical insurance, emphasizing equal opportunity principles in its compensation policy[100]. - The company has adhered to the corporate governance code and principles throughout the year ending December 31, 2023, with all applicable code provisions complied with[98].