中骏集团控股(01966) - 2022 - 年度业绩

Financial Highlights This section presents a concise overview of the company's key financial performance indicators and financial position | Metric | Amount (RMB) | | :--- | :--- | | Contract Sales Amount | 59.02 billion | | Revenue | 26.71 billion | | Gross Profit Margin | 16.6% | | Profit Attributable to Owners of the Parent | 24.54 million | | Cash and Bank Balances (Dec 31, 2022) | 15.02 billion | | Net Gearing Ratio (Dec 31, 2022) | 79.6% | Consolidated Statement of Profit or Loss and Other Comprehensive Income This section details the company's financial performance, including profit or loss and other comprehensive income for the year Profit/(Loss) for the Year The Group recorded a RMB 200.69 million loss for 2022, a significant decline from 2021's profit, driven by reduced revenue and lower gross margin | Metric | 2022 (RMB thousand) | 2021 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 26,705,112 | 37,737,447 | -29.2% | | Cost of Sales | (22,284,779) | (29,563,825) | -24.7% | | Gross Profit | 4,420,333 | 8,173,622 | -45.9% | | Profit Before Tax | 819,428 | 5,735,925 | -85.7% | | Tax Expense | (1,020,120) | (2,067,114) | -50.7% | | Profit/(Loss) for the Year | (200,692) | 3,668,811 | -105.5% | - Share of profits/(losses) of joint ventures and associates changed from a profit of RMB 640.64 million in 2021 to a loss of RMB 454.27 million in 2022[5][93] Other Comprehensive Income/(Loss) In 2022, the Group recorded an other comprehensive loss of RMB 1.65 billion, primarily due to exchange differences on translation of overseas operations | Metric | 2022 (RMB thousand) | 2021 (RMB thousand) | | :--- | :--- | | Share of Other Comprehensive Income/(Loss) of Joint Ventures | 7,865 | (3,368) | | Exchange Differences on Translation of Overseas Operations | (1,630,309) | 494,563 | | Other Comprehensive Income/(Loss) for the Year | (1,653,816) | 491,221 | | Total Comprehensive Income/(Loss) for the Year | (1,854,508) | 4,160,032 | Profit Attributable to Owners of the Parent and Earnings Per Share Profit attributable to owners of the parent significantly decreased by 99.2% to RMB 24.54 million, leading to basic earnings per share of RMB 0.6 cents | Metric | 2022 (RMB thousand) | 2021 (RMB thousand) | | :--- | :--- | | Profit Attributable to Owners of the Parent | 24,544 | 3,070,022 | | Profit/(Loss) Attributable to Non-controlling Interests | (225,236) | 598,789 | | Basic Earnings Per Share Attributable to Ordinary Equity Holders of the Parent | RMB 0.6 cents | RMB 72.7 cents | | Diluted Earnings Per Share Attributable to Ordinary Equity Holders of the Parent | RMB 0.6 cents | RMB 72.2 cents | Consolidated Statement of Financial Position This section provides an overview of the company's assets, liabilities, and equity as of the reporting date Assets Overview Total non-current assets increased to RMB 60.78 billion as of December 31, 2022, driven by investment properties and properties under development, while current assets slightly decreased | Metric | 2022 (RMB thousand) | 2021 (RMB thousand) | | :--- | :--- | | Total Non-current Assets | 60,780,612 | 56,673,596 | | Total Current Assets | 133,183,456 | 138,339,390 | | Investment Properties | 39,216,242 | 34,050,031 | | Properties Under Development (Non-current) | 10,169,792 | 9,437,268 | | Properties Under Development (Current) | 92,717,968 | 90,011,728 | | Cash and Cash Equivalents | 9,118,953 | 15,677,587 | Liabilities and Equity Overview Increased current liabilities led to a significant drop in net current assets, while non-current liabilities decreased and total equity declined due to reduced parent-attributable reserves | Metric | 2022 (RMB thousand) | 2021 (RMB thousand) | | :--- | :--- | | Total Current Liabilities | 123,650,889 | 112,859,707 | | Total Non-current Liabilities | 33,687,938 | 39,446,168 | | Net Current Assets | 9,532,567 | 25,479,683 | | Total Equity | 36,625,241 | 42,707,111 | | Equity Attributable to Owners of the Parent | 19,710,689 | 21,786,360 | | Non-controlling Interests | 16,914,552 | 20,920,751 | Notes to the Financial Statements This section provides detailed explanations and disclosures regarding the company's accounting policies and financial statement items Company Information and Basis of Preparation Incorporated in the Cayman Islands, the company primarily engages in property development, investment, and management in China, with financial statements prepared under HKFRS and presented in RMB - The Group primarily engages in property development, property investment, property management, land development, and project management in China[17] - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and presented in RMB[18] Changes in Accounting Policies and Disclosures The Group adopted several revised HKFRS standards, including HKFRS 3, HKFRS 16, HKAS 16, HKAS 37, and HKFRS 9 improvements, none materially impacting financial position or performance - The adoption of HKFRS 3 (Revised) replaced the previous framework with the 2018 Conceptual Framework for Financial Reporting, having no impact on the Group's financial position and performance[24] - The adoption of HKFRS 16 (Revised) extended the practical expedient for COVID-19 related rent concessions by 12 months, but as the Group did not receive such concessions, there was no impact[26] - The adoption of HKAS 16 (Revised) prohibits deducting proceeds from selling items produced before an asset is available for use from the cost of property, plant, and equipment, with no impact on the Group[27] - The adoption of HKAS 37 (Revised) clarified the costs of fulfilling an onerous contract, having no impact on the Group[28] - The adoption of HKFRS 9 (Revised) clarified the fees included when assessing whether the terms of a financial liability are substantially different, having no impact on the Group[29] Operating Segment Information The Group primarily operates in property development and investment in China, consolidating smaller segments, with all revenue and most non-current assets originating domestically - Property management, land development, and project management segments are consolidated with property development and investment segments, as their revenue, results, and assets are less than 10% of the Group's consolidated revenue, profit, and assets[33] - The Group's revenue from external customers is solely derived from its operations in China, where the vast majority of its non-current assets are also located[34] Revenue, Other Income and Gains Total revenue in 2022 was RMB 26.71 billion, mainly from property sales which significantly decreased, while other income and gains totaled RMB 820.39 million, boosted by subsidiary disposals | Source of Revenue | 2022 (RMB thousand) | 2021 (RMB thousand) | | :--- | :--- | :--- | | Property Sales | 24,739,180 | 36,154,258 | | Property Management Fees | 989,751 | 895,682 | | Land Development Income | 201,893 | – | | Project Management Income | 260,618 | 234,225 | | Rental Income | 513,670 | 453,282 | | Total Revenue | 26,705,112 | 37,737,447 | | Total Other Income and Gains | 820,387 | 769,663 | | Of which: Gain on Disposal of Subsidiaries | 415,139 | – | Finance Costs Total finance costs in 2022 increased to RMB 921.12 million from 2021, primarily due to certain funds not being capitalized | Metric | 2022 (RMB thousand) | 2021 (RMB thousand) | | :--- | :--- | | Interest on Bank and Other Borrowings, Senior Notes and Domestic Bonds | 3,357,323 | 3,327,947 | | Interest on Lease Liabilities | 20,162 | 25,512 | | Accretion of Discount on Provision for Major Overhaul | 3,512 | 3,103 | | Less: Interest Capitalized | (2,459,873) | (2,530,643) | | Total Finance Costs | 921,124 | 825,919 | Profit Before Tax Profit before tax is stated after deducting various expenses, including cost of properties sold, employee benefit expenses, and a significant increase in property impairment provisions | Metric | 2022 (RMB thousand) | 2021 (RMB thousand) | | :--- | :--- | | Cost of Properties Sold | 21,173,548 | 28,805,002 | | Employee Benefit Expenses (Net) | 810,269 | 1,242,026 | | Impairment of Completed Properties Held for Sale | 495,045 | 234,884 | | Impairment of Properties Under Development | 494,930 | 342,910 | Tax Expense Tax expense in 2022 significantly decreased by 50.7% to RMB 1.02 billion, primarily due to reduced property sales revenue and lower gross profit margin leading to decreased tax provisions | Metric | 2022 (RMB thousand) | 2021 (RMB thousand) | | :--- | :--- | | PRC Enterprise Income Tax | 1,217,326 | 2,125,003 | | PRC Land Appreciation Tax | 99,356 | 364,116 | | Deferred Tax Credited for the Year | (296,562) | (248,897) | | Total Tax Expense for the Year | 1,020,120 | 2,067,114 | Dividends The Board recommended no final dividend for 2022, contrasting with interim and final dividends declared in 2021 - The Directors recommended no final dividend for the year ended December 31, 2022[48] | Dividend Type | 2022 (RMB thousand) | 2021 (RMB thousand) | | :--- | :--- | :--- | | Interim Dividend | – | 421,436 | | Proposed Final Dividend | – | 206,665 | | Total | – | 628,101 | Earnings Per Share Attributable to Ordinary Equity Holders of the Parent Both basic and diluted earnings per share were RMB 0.6 cents in 2022, a significant decrease from 2021, primarily due to a substantial reduction in profit attributable to owners of the parent | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Parent (RMB thousand) | 24,544 | 3,070,022 | | Weighted Average Number of Ordinary Shares for Basic EPS Calculation | 4,222,437,098 | 4,222,133,380 | | Weighted Average Number of Ordinary Shares for Diluted EPS Calculation | 4,222,437,098 | 4,249,644,840 | - For the year ended December 31, 2022, unexercised share options had an anti-dilutive effect on the presented basic earnings per share, thus no adjustment was made[49] Trade Receivables Trade receivables, primarily from property sales, leasing, and property management services, totaled RMB 466.35 million at the end of 2022, with most being current - The Group's trade receivables arise from the sale of properties, leasing of investment properties, and provision of property management services[54] | Aging | 2022 (RMB thousand) | 2021 (RMB thousand) | | :--- | :--- | :--- | | Current to 90 days | 441,486 | 484,234 | | 91 to 180 days | 15,320 | 38,079 | | 181 to 365 days | 2,933 | 6,247 | | Over 365 days | 6,611 | 9,401 | | Total | 466,350 | 537,961 | Trade Payables and Bills Total trade payables and bills amounted to RMB 10.82 billion at the end of 2022, a decrease from 2021, with most due within one year - Trade payables and bills are unsecured, interest-free, and generally settled according to construction progress[57] | Aging | 2022 (RMB thousand) | 2021 (RMB thousand) | | :--- | :--- | :--- | | Within one year | 10,409,743 | 14,440,800 | | Over one year | 411,791 | 341,500 | | Total | 10,821,534 | 14,782,300 | Management Discussion and Analysis This section provides management's perspective on the company's operational and financial performance, market conditions, and future outlook Market Review China's real estate market faced unprecedented challenges in 2022, with national commercial property sales value down 26.7% and area down 24.3%, despite government support, market confidence remains fragile - In 2022, national commercial property sales value was approximately RMB 13.33 trillion, a year-on-year decrease of 26.7%, with residential sales value decreasing by 28.3%[59] - National commercial property sales area was approximately 1.36 billion square meters, a year-on-year decrease of 24.3%, with residential sales area decreasing by 26.8%[59] - The government introduced measures to support private real estate enterprises in bond refinancing and debt extensions, along with easing purchase restrictions, lowering down payments, and reducing mortgage rates to boost demand[59] Business Review The Group's contract sales value and area significantly decreased in 2022, but its investment property portfolio expanded, with sufficient land reserves for 2-3 years of development, and land acquisitions were paused for liquidity Contract Sales In 2022, the Group's contract sales were approximately RMB 59.02 billion, a 43.5% year-on-year decrease, with sales area of 4.91 million square meters down 34.2%, led by the Yangtze River Delta Economic Zone | Metric | 2022 | | :--- | :--- | | Contract Sales Amount | Approx. RMB 59.02 billion | | Contract Sales Area | Approx. 4.91 million square meters | | Average Property Sales Price | RMB 12,016 per square meter | | Year-on-Year Decrease (Amount) | Approx. 43.5% | | Year-on-Year Decrease (Area) | Approx. 34.2% | | Region | Contract Sales Amount (RMB million) | Share (%) | | :--- | :--- | :--- | | Yangtze River Delta Economic Zone | 24,609 | 41.7 | | West Coast of Taiwan Straits Economic Zone | 11,036 | 18.7 | | Bohai Rim Economic Zone | 11,001 | 18.7 | | Central and Western Regions | 7,220 | 12.2 | | Guangdong-Hong Kong-Macao Greater Bay Area | 5,157 | 8.7 | | Total | 59,023 | 100.0 | | City Tier | Contract Sales Amount (RMB million) | Share (%) | | :--- | :--- | :--- | | Tier 1 Cities | 9,219 | 15.6 | | Tier 2 Cities | 31,103 | 52.7 | | Tier 3 and 4 Cities | 18,701 | 31.7 | | Total | 59,023 | 100.0 | Investment Properties As of year-end 2022, the Group held 53 investment properties with a total GFA of 4.01 million square meters, 27 of which were operational, including shopping malls, long-term rental apartments, and offices - The Group, together with its joint ventures and associates, held a total of 53 investment properties with a total GFA of approximately 4.01 million square meters (attributable GFA of approximately 3.66 million square meters)[72] - Of these, 27 investment properties have commenced operations, with business formats covering shopping malls, long-term rental apartments, office buildings, commercial streets, and retail shops[72] Land Bank The Group paused land acquisitions in 2022 for liquidity, with a year-end land bank of 33.87 million square meters GFA, expected to support 2-3 years of future development - The Group paused land acquisitions in 2022 to maintain ample liquidity[75] - As of December 31, 2022, the total planned GFA of the land bank was 33.87 million square meters (the Group's attributable share was 26.68 million square meters), distributed across 60 cities[75] - The existing land bank is expected to support the Group's development for the next two to three years[75] | Region | Share of Total Land Bank Cost (%) | | :--- | :--- | | Yangtze River Delta Economic Zone | 36.2 | | Bohai Rim Economic Zone | 20.8 | | West Coast of Taiwan Straits Economic Zone | 22.5 | | Guangdong-Hong Kong-Macao Greater Bay Area | 8.4 | | Central and Western Regions | 12.1 | | Total | 100.0 | | City Tier | Share of Total Land Bank Cost (%) | | :--- | :--- | | Tier 1 Cities | 12.5 | | Tier 2 Cities | 55.9 | | Tier 3 and 4 Cities | 31.6 | | Total | 100.0 | Outlook The Group plans strategic iterations, focusing on core cities and advantageous regions, deepening market, customer, and product engagement, enhancing operational safety, and building a cash flow-driven model with asset management to reduce financing dependence - Future strategic iterations will focus more on core cities and advantageous regions, deepening engagement in markets, with customers, and on products[76] - The industry is anticipated to enter an era where customer value creation and product excellence are paramount, leading to increased focus on customer needs and product R&D[76] - Enhancing operational safety margins, building a business model driven by cash flow and operational quality, maintaining robust financial discipline, and promoting sustainable development[78] - Regarding the second business curve, the Group will seize development opportunities, focus on developing an asset management model to reduce financing dependence, and expand synergies with real estate[78] Financial Review This section provides a detailed analysis of the company's financial performance, including revenue, profitability, and key expense items Revenue Total revenue in 2022 decreased by 29.2% to RMB 26.71 billion, mainly due to lower property sales, despite increases in property management, rental, and project management income - Full-year revenue decreased by approximately 29.2% from RMB 37.74 billion in 2021 to RMB 26.71 billion in 2022, primarily due to reduced property sales revenue[79] | Revenue Type | 2022 (RMB thousand) | 2021 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Property Sales Revenue | 24,739,180 | 36,154,258 | -31.6% | | Property Management Fees | 989,751 | 895,682 | +10.5% | | Rental Income | 513,670 | 453,282 | +13.3% | | Land Development Income | 201,893 | – | N/A | | Project Management Income | 260,618 | 234,225 | +11.3% | Gross Profit Gross profit significantly decreased by 45.9% to RMB 4.42 billion in 2022, with the margin dropping from 21.7% to 16.6%, primarily due to lower property prices and increased impairment provisions - Gross profit significantly decreased by approximately 45.9% from RMB 8.17 billion in 2021 to RMB 4.42 billion in 2022[88] - Gross profit margin decreased from approximately 21.7% in 2021 to approximately 16.6% in 2022, primarily due to lower property selling prices and increased impairment provisions for property projects[88] Selling and Marketing Expenses Selling and marketing expenses increased by 19.2% to RMB 1.24 billion in 2022, mainly due to intensified promotional efforts during the pandemic - Selling and marketing expenses increased by approximately 19.2% from RMB 1.04 billion in 2021 to RMB 1.24 billion in 2022[90] - This increase was primarily attributable to intensified promotional efforts during the pandemic[90] Administrative Expenses Administrative expenses decreased by 13.4% to RMB 1.78 billion in 2022, primarily benefiting from stringent cost control and streamlined human resources structure - Administrative expenses decreased by approximately 13.4% from RMB 2.06 billion in 2021 to RMB 1.78 billion in 2022[91] - The decrease in administrative expenses was primarily due to the net effect of implementing stringent cost control and streamlining the human resources structure[91] Finance Costs Finance costs increased by 11.5% to RMB 921.12 million in 2022, with a slight increase in total interest despite reduced borrowings, due to rising funding costs - Finance costs increased by approximately 11.5% from RMB 825.92 million in 2021 to RMB 921.12 million in 2022[87] - The finance costs were primarily incurred because certain funds were not used for project development, thus these financing costs could not be capitalized[87] Share of Profits and Losses of Joint Ventures and Associates Share of profits from joint ventures and associates shifted from a 2021 profit to a RMB 454.27 million loss in 2022, mainly due to operating losses and investment property impairment - Share of profits and losses of joint ventures and associates changed from a profit of approximately RMB 640.64 million in 2021 to a loss of approximately RMB 454.27 million in 2022[93] - This loss was primarily due to operating losses and fair value impairment of investment properties recorded by certain joint ventures during the year[93] Tax Expense Tax expense significantly decreased by 50.7% to RMB 1.02 billion in 2022, primarily due to reduced property sales revenue and lower gross profit margin leading to decreased tax provisions - Tax expense significantly decreased by approximately 50.7% from RMB 2.07 billion in 2021 to RMB 1.02 billion in 2022[95] - The decrease was primarily due to reduced property sales revenue and a decline in gross profit margin in 2022, leading to lower provisions for land appreciation tax and enterprise income tax[95] Profit Attributable to Owners of the Parent Profit attributable to owners of the parent significantly decreased by 99.2% to RMB 24.54 million in 2022, with basic earnings per share of RMB 0.6 cents - Profit attributable to owners of the parent significantly decreased by approximately 99.2% from RMB 3.07 billion in 2021 to RMB 24.54 million in 2022[96] - Basic earnings per share for 2022 was approximately RMB 0.6 cents[96] Liquidity, Financial and Capital Resources This section reviews the company's cash position, borrowings, gearing ratio, and exposure to foreign exchange risk Cash Position As of year-end 2022, the Group's cash and bank balances were RMB 15.02 billion, a decrease from 2021, with restricted cash at RMB 3.87 billion and pledged deposits at RMB 2.03 billion | Currency | 2022 (RMB thousand) | 2021 (RMB thousand) | | :--- | :--- | :--- | | RMB | 14,855,496 | 19,221,382 | | HKD | 77,676 | 711,128 | | USD | 82,886 | 73,359 | | Cash and Bank Balances | 15,016,058 | 20,005,869 | - As of December 31, 2022, restricted cash was approximately RMB 3.87 billion, and pledged deposits were approximately RMB 2.03 billion[97] Borrowings The Group's total borrowings amounted to RMB 44.16 billion, a decrease from 2021, with the majority denominated in RMB | Borrowing Type | 2022 (RMB thousand) | 2021 (RMB thousand) | | :--- | :--- | :--- | | Bank and Other Borrowings | 26,995,112 | 29,522,722 | | Senior Notes and Domestic Bonds | 17,162,036 | 20,675,612 | | Total | 44,157,148 | 50,198,334 | | Borrowing Currency | 2022 (RMB thousand) | 2021 (RMB thousand) | | :--- | :--- | :--- | | RMB | 21,655,224 | 23,987,110 | | HKD | 1,127,006 | 1,360,565 | | USD | 4,212,882 | 4,175,047 | | Total | 26,995,112 | 29,522,722 | Gearing Ratio As of year-end 2022, the net gearing ratio was approximately 79.6%, an increase from 70.7% in 2021 - As of December 31, 2022, the net gearing ratio was approximately 79.6% (December 31, 2021: approximately 70.7%)[101] Foreign Exchange Fluctuation Risk Most operations are RMB-denominated, with exchange rate fluctuations having no significant impact on results, but foreign currency risk is closely monitored, with no hedging arrangements currently in place - The majority of the Group's revenue and operating expenses, as well as most assets and liabilities, are denominated in RMB[102] - Fluctuations in the RMB exchange rate against other foreign currencies are not expected to have a material adverse impact on the Group's operating results[102] - As of December 31, 2022, the Group had no foreign currency hedging arrangements in place and will continue to closely monitor foreign currency exchange rate fluctuation risk[102] Other Information This section covers corporate governance, shareholder matters, auditor information, and securities trading policies Annual General Meeting and Dividends The AGM will be held on May 30, 2023, with no final dividend proposed for 2022, and share transfer registration suspended from May 24-30, 2023, to determine voting eligibility - The Company's upcoming Annual General Meeting will be held on Tuesday, May 30, 2023[103] - The Board recommended no final dividend for the year ended December 31, 2022[105] - To determine shareholders entitled to attend and vote at the Annual General Meeting, share transfer registration will be suspended from May 24 to May 30, 2023 (both dates inclusive)[106] Audit Committee and Auditor's Scope of Work The Audit Committee, comprising three independent non-executive directors, reviewed accounting policies and financial statements, with external auditor Ernst & Young verifying the announcement's financial data - The Audit Committee comprises three independent non-executive directors, with Mr. Ding Lianghui as Chairman and Mr. Lu Hongde and Mr. Dai Yiyi as members[107] - The Audit Committee has reviewed the Group's adopted accounting policies, consolidated financial statements, and the annual results announcement[107] - The financial data contained in this announcement has been agreed by the external auditor, Ernst & Young, to the amounts set out in the Group's draft consolidated financial statements for the year[109] Standard Code for Securities Transactions by Directors The company adopted the Standard Code for Securities Transactions by Directors as set out in Appendix 10 of the Listing Rules, with all directors confirming strict compliance during the review year - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, and all Directors have confirmed strict compliance throughout the review year[110] Purchase, Redemption or Sale of the Company's Listed Securities The company repurchased and cancelled USD 154 million in senior notes in early 2022, representing 30.8% of the original issuance, with no other listed securities transactions during the year - From January 4 to February 28, 2022, the Company repurchased and cancelled senior notes with a total principal amount of USD 154 million out of the USD 500 million 5.875% senior notes due March 10, 2022[111] - The repurchased notes accounted for 30.8% of the original issuance amount[111] - Save as disclosed above, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities during the year[111] Corporate Governance The company complied with the Corporate Governance Code in 2022, with the Chairman and CEO roles held by one individual, which the Board believes enhances business plan execution efficiency - The Company and the Board have complied with the code provisions of the Corporate Governance Code throughout 2022[112] - The roles of Chairman and Chief Executive Officer are performed by Mr. Huang Chaoyang, which the Board believes facilitates efficient and consistent execution of the company's business plans and decisions[114] Publication of Information and Board Composition This annual results announcement has been published on the HKEX and company websites, with the Board comprising five executive directors and three independent non-executive directors - The Company's annual results announcement for the year ended December 31, 2022, has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.sce-re.com)[115](index=115&type=chunk) - The Board comprises five executive directors (Mr. Huang Chaoyang, Mr. Chen Yuanlai, Mr. Zheng Xiaole, Mr. Huang Youquan, and Mr. Huang Lun) and three independent non-executive directors (Mr. Ding Lianghui, Mr. Lu Hongde, and Mr. Dai Yiyi)[116]