众安集团(00672) - 2023 - 中期业绩

Financial Statements Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2023, the Group's revenue decreased by 19.7% to RMB 4.078 billion, while profit for the period significantly increased by 122.2% to RMB 156 million, primarily due to a substantial reduction in income tax expense Interim Results Summary for the Six Months Ended June 30, 2023 | Metric | H1 2023 (RMB '000) | H1 2022 (RMB '000) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 4,078,059 | 5,077,587 | -19.7% | | Gross Profit | 699,196 | 1,726,106 | -59.5% | | Profit Before Tax | 287,623 | 1,086,995 | -73.5% | | Income Tax Expense | (131,559) | (1,016,764) | -87.1% | | Profit for the Period | 156,064 | 70,231 | +122.2% | | Profit Attributable to Owners of the Parent | 196,571 | 137,659 | +42.8% | | Basic and Diluted Earnings Per Share | RMB 3.49 cents | RMB 2.44 cents | +43.0% | Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2023, the Group's total comprehensive income increased significantly to RMB 221 million, driven by higher profit for the period and a positive fair value change in equity investments Composition of Total Comprehensive Income | Item | H1 2023 (RMB '000) | H1 2022 (RMB '000) | | :--- | :--- | :--- | | Profit for the Period | 156,064 | 70,231 | | Other Comprehensive Income, Net of Tax | 64,999 | 16,355 | | Total Comprehensive Income for the Period | 221,063 | 86,586 | - The increase in other comprehensive income was primarily due to the positive impact of fair value changes in equity investments, shifting from a loss in the prior period to a gain[2] Interim Condensed Consolidated Statement of Financial Position As of June 30, 2023, the Group's total assets were RMB 58.35 billion, total liabilities RMB 45.80 billion, and total equity RMB 12.55 billion, maintaining a relatively stable capital structure Financial Position Summary | Metric | June 30, 2023 (RMB '000) | December 31, 2022 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 58,353,178 | 59,096,852 | -1.3% | | Total Liabilities | 45,798,951 | 46,763,688 | -2.1% | | Total Equity | 12,554,227 | 12,333,164 | +1.8% | - Current assets amounted to RMB 45.05 billion, current liabilities were RMB 36.21 billion, resulting in net current assets of RMB 8.84 billion[3][112] Notes to the Interim Condensed Consolidated Financial Information Basis of Preparation and Accounting Policies The interim financial information is prepared in accordance with IAS 34 and consistent with 2022 annual financial statements, with no significant impact from newly adopted IFRS - The basis of preparation for the financial information is consistent with that applied in the 2022 annual financial information[4][113] - Several new and revised International Financial Reporting Standards were adopted for the first time during the period, but they did not have a significant financial impact on the financial statements[5][29] Operating Segment Information The Group operates in residential and commercial segments, with the residential segment contributing most revenue and profit, while the commercial segment's loss narrowed despite increased revenue - The Group has two reportable operating segments: the residential segment and the commercial segment[15][30][31] Segment Results (For the Six Months Ended June 30) | Segment | 2023 Revenue (RMB '000) | 2022 Revenue (RMB '000) | 2023 Results (RMB '000) | 2022 Results (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Residential | 3,259,500 | 4,820,483 | 304,734 | 1,338,154 | | Commercial | 818,559 | 257,104 | (17,111) | (251,159) | | Total | 4,078,059 | 5,077,587 | 287,623 | 1,086,995 | Segment Assets and Liabilities (RMB '000) | Segment | June 30, 2023 Assets | December 31, 2022 Assets | June 30, 2023 Liabilities | December 31, 2022 Liabilities | | :--- | :--- | :--- | :--- | :--- | | Residential | 45,016,206 | 44,671,977 | 37,749,578 | 36,891,821 | | Commercial | 14,584,183 | 15,179,776 | 9,296,584 | 9,871,867 | - Geographically, the vast majority of revenue (over 99%) and non-current assets (approximately 99%) are derived from Mainland China[35][36][114] Revenue, Other Income and Gains In H1 2023, total revenue was RMB 4.078 billion, primarily from property sales, while other income and gains significantly decreased due to the absence of a one-off gain from joint venture re-measurement Disaggregation of Revenue from Contracts with Customers (H1 2023) | Type of Goods or Services | Amount (RMB '000) | | :--- | :--- | | Sales of properties | 3,627,822 | | Property management and other services | 265,236 | | Hotel operation income | 124,419 | | Total Revenue from Contracts with Customers | 4,017,477 | - Other income and gains amounted to RMB 64.81 million, a significant decrease from RMB 179 million in the prior period, mainly due to a one-off gain of approximately RMB 100 million from the re-measurement of investments in a joint venture recorded in the prior period, which was absent in the current period[129] Income Tax Expense Total income tax expense for H1 2023 significantly decreased by 87.1% to RMB 132 million, mainly due to lower PRC corporate income tax and land appreciation tax Composition of Income Tax Expense | Item | H1 2023 (RMB '000) | H1 2022 (RMB '000) | | :--- | :--- | :--- | | Current PRC corporate income tax | 21,960 | 183,366 | | Current PRC land appreciation tax | 109,238 | 902,288 | | Deferred tax | 361 | (68,890) | | Total Tax Expense for the Period | 131,559 | 1,016,764 | - The applicable income tax rate for subsidiaries in Mainland China is 25%; subsidiaries in Hong Kong, Canada, and the UK had no assessable profits during the period[22][41] Earnings Per Share Attributable to Owners of the Parent Basic earnings per share increased to RMB 3.49 cents for H1 2023, based on RMB 197 million profit attributable to owners and approximately 5.636 billion weighted average shares outstanding, with no dilutive impact Basic Earnings Per Share Calculation | Metric | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Parent (RMB '000) | 196,571 | 137,659 | | Weighted Average Number of Ordinary Shares Outstanding | 5,635,809,800 | 5,635,809,800 | | Basic Earnings Per Share | RMB 3.49 cents | RMB 2.44 cents | - Diluted earnings per share are the same as basic earnings per share as there were no potential dilutive ordinary shares outstanding during the period[25] Management Discussion and Analysis Industry Review In H1 2023, China's GDP grew by 5.5%, indicating economic stabilization, yet the real estate sector faced pressure with declining investment and sales, despite progress in housing completions - China's GDP grew by 5.5% year-on-year in H1 2023, indicating economic stabilization and recovery[28] - National real estate market data shows: - Development investment decreased by 7.9% year-on-year - Commercial housing sales area decreased by 5.3% year-on-year - New housing starts area decreased by 24.3% year-on-year - Housing completion area increased by 19.0% year-on-year[47][136] Financial Analysis During the review period, Group revenue declined by 19.7% to RMB 4.08 billion due to fewer property deliveries, and gross margin fell to 17.1%, but profit surged by 122.2% driven by an 87.1% reduction in income tax and lower financial and other expenses Performance Overview | Metric | H1 2023 | H1 2022 | Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 4,078.1 million | RMB 5,077.6 million | -19.7% | | Gross Profit | RMB 699.2 million | RMB 1,726.1 million | -59.5% | | Gross Profit Margin | 17.1% | 34.0% | -16.9pp | | Profit | RMB 156.1 million | RMB 70.2 million | +122.2% | - The decrease in revenue was primarily due to a 23.5% reduction in property sales revenue, resulting from fewer properties delivered during the period, though revenue from property leasing, hotel operations, and property management all recorded growth[137][150] - Key drivers for profit growth include: - Income tax expense decreased by 87.1% due to lower assessable profits and land appreciation tax[159] - Finance costs decreased by 45.7% due to reduced interest expenses[158] - Other expenses decreased by 86.1%[157] Business Review In H1 2023, the Group achieved RMB 7.45 billion in contracted sales, a 41.5% increase, with RMB 3.63 billion in recognized sales, and maintains over 964 million sq.m. of land bank sufficient for more than five years of development - Contracted sales amounted to approximately RMB 7,449.8 million, with a contracted sales area of approximately 357,410 sq.m.[50][51] - Recognized sales amounted to approximately RMB 3,627.8 million, with a recognized sales area of approximately 175,022 sq.m.[65] - The average property selling price was approximately RMB 20,728 per sq.m., a year-on-year decrease of 8.2%, while the average cost of sales increased by 20.3% to approximately RMB 17,760 per sq.m.[53] - As of June 30, 2023, the total gross floor area of land bank was approximately 964.1 million sq.m., with an average acquisition cost of approximately RMB 2,977 per sq.m., sufficient for more than five years of future development[54][66] Liquidity and Capital Resources As of June 30, 2023, the Group maintained a sound financial position with RMB 5.74 billion in cash, RMB 13.12 billion in interest-bearing borrowings, a net gearing ratio of 59%, and a current ratio of 1.24 Key Financial Ratios | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Current Ratio | 1.24 | 1.25 | | Interest-bearing Borrowings to Total Assets Ratio | 0.22 | 0.25 | | Net Gearing Ratio | 0.59 | 0.66 | Cash and Borrowings Status (RMB Million) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash and Cash Equivalents and Restricted Cash | 5,735.9 | 6,633.4 | | Interest-bearing Bank and Other Borrowings | 13,115.0 | 14,747.7 | - The average effective annual interest rate for interest-bearing borrowings was 5.09%, a decrease from 5.47% in the prior period[57] - As of June 30, 2023, the Group had capital commitments of approximately RMB 4.85 billion and contingent liabilities of approximately RMB 15.77 billion, primarily related to mortgage guarantees for buyers[72][73] Human Resources As of June 30, 2023, the Group employed 5,427 staff, with staff costs increasing by 6.6% to RMB 233.4 million, supported by market-based compensation, performance incentives, and training programs - As of June 30, 2023, the Group had 5,427 employees (June 30, 2022: 5,221 employees)[94] - Staff costs for the review period were approximately RMB 233.4 million, an increase of approximately 6.6% year-on-year[94] - Employee remuneration policy considers market levels, company performance, and individual performance, offering annual discretionary bonuses, share option schemes, and continuous training[77] Outlook and Dividends The Board does not recommend an interim dividend for 2023, and management remains cautiously optimistic about China's long-term economic fundamentals, focusing on strengthening its brand advantage in the Yangtze River Delta region - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2023[80][135] - Looking ahead, management believes that the long-term positive fundamentals of the Chinese economy remain unchanged, and the real estate industry will return to rationality[80] - The Group will continue to adopt a "prudent in the short term, optimistic in the long term" operational approach, leveraging its brand advantage in the Yangtze River Delta region to deepen strategic goals and enhance risk resistance capabilities[81] Other Information Corporate Governance The company complied with the Corporate Governance Code during the reporting period, with all directors confirming adherence to securities dealing standards, and the Audit Committee reviewing the interim results - The company adopted and complied with the Corporate Governance Code set out in Appendix 14 of the Listing Rules during the period[100] - All directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers[99] - The Audit Committee has reviewed the unaudited interim results of the Group[102]