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易居企业控股(02048) - 2022 - 中期财报
E-HOUSE ENTE-HOUSE ENT(HK:02048)2023-01-05 08:47

Financial Performance - The company reported a total revenue of RMB 39,973 for the six months ended June 30, 2022, compared to RMB 117,098 in the same period of 2021, representing a decline of approximately 65.8%[7]. - Revenue decreased by 61.0% from RMB 6,247.9 million for the six months ended 30 June 2021 to RMB 2,438.8 million for the six months ended 30 June 2022, primarily due to the overall downturn of the real estate market[80]. - Revenue from primary market real estate agency services decreased by 77.6% to RMB 367.2 million, down from RMB 1,637.4 million for the same period[80]. - Revenue from real estate brokerage network services decreased by 68.1% to RMB 689.0 million, down from RMB 2,162.3 million for the same period[80]. - Revenue from real estate data and consulting services decreased by 40.2% to RMB 296.3 million, down from RMB 495.9 million for the same period[80]. - Revenue from digital marketing services decreased by 44.4% to RMB 1,086.3 million, down from RMB 1,952.3 million for the same period[80]. - The Group recorded a loss of RMB 1,838.3 million during the reporting period due to a sluggish property market and a downward trend in real estate sales collections[65]. - The company reported a loss for the period of RMB 1,838.3 million for the six months ended 30 June 2022, compared to a loss of RMB 1,562.7 million for the same period in 2021[109]. - Operating loss for the six months ended 30 June 2022 was RMB 1,487.1 million, with an operating loss margin of 61.0%, compared to an operating loss of RMB 1,665.2 million and a margin of 26.7% for the same period in 2021[136]. - EBITDA loss for the six months ended 30 June 2022 was RMB 1,312.3 million, compared to RMB 1,071.1 million for the same period in 2021[164]. Liabilities and Equity - Total liabilities amounted to RMB 8,993,612 as of June 30, 2022, compared to RMB 8,586,131 at the end of 2021, reflecting an increase of approximately 4.8%[3]. - The net current liabilities were reported at (RMB 4,496,660), a significant increase from (RMB 1,031,973) in the previous period[3]. - The equity attributable to owners of the Company showed a decline to (RMB 2,587,272) from (RMB 1,164,529), indicating a decrease of approximately 122.4%[3]. - The total equity reported was (RMB 1,873,405) as of June 30, 2022, compared to (RMB 9,995) at the end of 2021, indicating a significant decline in equity[3]. - The gearing ratio as of 30 June 2022 was 66.7%, up from 56.6% as of 31 December 2021, primarily due to a decrease in total assets[144]. Cash Flow and Liquidity - Cash and cash equivalents decreased from RMB 3,314.7 million as of 31 December 2021 to RMB 2,101.8 million as of 30 June 2022[117]. - The company plans to satisfy its liquidity requirements through a combination of internally generated cash, external borrowings, and funds raised from capital markets[119]. - The Group's cash usage for the six months ended 30 June 2022 primarily supported working capital and other recurring expenses for business expansion[167]. Cost Management - Staff costs decreased by 37.8% to RMB 1,109.1 million, while staff costs as a percentage of revenue increased from 28.5% to 45.5%[80]. - Advertising and promotion expenses decreased by 22.7% to RMB 1,121.1 million, down from RMB 1,450.2 million for the same period[82]. - Distribution expenses decreased by 67.0% from RMB 1,982.4 million for the six months ended 30 June 2021 to RMB 654.9 million for the six months ended 30 June 2022, primarily due to a decrease in revenue from real estate brokerage network services[3]. - Other operating costs decreased by 43.0% from RMB 316.9 million for the six months ended 30 June 2021 to RMB 180.7 million for the six months ended 30 June 2022, primarily due to the company's cost reduction efforts[4]. - Finance costs decreased by 10.0% from RMB 269.6 million for the six months ended 30 June 2021 to RMB 242.5 million for the six months ended 30 June 2022, mainly due to a decrease in the weighted average balances of interest-bearing loans[107]. Impairment and Credit Losses - The company reported an additional expected credit loss (ECL) of RMB 2,295.4 million due to deteriorating market conditions in the PRC real estate industry[177]. - An additional impairment loss of RMB 267.5 million was recognized on non-current assets, reflecting the financial performance falling short of management's expectations[177]. - The assessment of ECL is based on historical data and forward-looking information, considering factors such as default probability and loss given default[180]. - The management revised the major assumptions in the assessment model for expected credit loss (ECL) and impairment, leading to material differences in financial results[153]. - The Group identified 16 credit deterioration property developers as high-risk counterparties, with the probability of default for accounts receivables ranging from 72% to 100%[157]. Corporate Governance - The company has adopted strict corporate governance principles to enhance transparency and accountability to shareholders[190]. - The company confirmed compliance with the Model Code regarding directors' dealings in securities throughout the reporting period[194]. - The company will continue to monitor its corporate governance practices to ensure compliance with the New CG Code effective from January 1, 2022[193]. - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2022, and discussed accounting policies and internal controls with senior management[192]. Strategic Initiatives - The Group's digital marketing strategy focuses on Tmall Haofang, enhancing online real estate marketing and transactions through a strategic partnership with Alibaba[66]. - The Group's digital service strategy is centered on CRIC Big Data, aiming to create a real estate digital solution platform ecosystem[70]. - The construction of Tmall Haofang's platform has been initially completed, integrating Alibaba's resources with E-House's experience in real estate marketing[67]. - Tmall Haofang's information service platform covers more than 300 cities, with over 35,000 online new housing projects, 200,000+ second-hand housing listings, and 400,000+ rental housing listings, achieving more than 20 million monthly active users[67].