绿地香港(00337) - 2022 - 年度业绩

Summary of 2022 Annual Results Announcement Key Financial Highlights Despite challenges in FY2022, Greenland Hong Kong Holdings Limited achieved a profit for the year of RMB 780 million and maintained a stable weighted average financing cost of approximately 5.7% FY2022 Key Financial Highlights | Indicator | Amount (RMB) | | :--- | :--- | | Profit for the year | 780,000,000 | | Profit attributable to owners of the Company | 481,000,000 | | Basic earnings per share | 0.17 | | Total assets | 150,000,000,000 | | Weighted average financing cost | 5.7% | | Net gearing ratio | 48% | Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended December 31, 2022, the Group's total revenue decreased by approximately 22% to RMB 26.614 billion, with profit for the year significantly declining by 68% to RMB 780 million due to reduced property deliveries, lower gross margins, and fair value losses on investment properties Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2022 (RMB thousands) | 2021 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 26,614,317 | 33,926,923 | -21.56% | | Cost of sales | (22,515,753) | (25,457,422) | -11.56% | | Gross profit | 4,098,564 | 8,469,501 | -51.50% | | Profit before tax | 2,269,875 | 6,288,582 | -63.91% | | Income tax expense | (1,489,430) | (3,854,657) | -61.36% | | Profit for the year | 780,445 | 2,433,925 | -67.94% | | Profit attributable to owners of the Company | 480,904 | 2,155,140 | -77.70% | | Basic earnings per share (RMB) | 0.17 | 0.78 | -78.19% | - Profit for the year and profit attributable to owners of the Company decreased by approximately 68% and 78% respectively, primarily due to fewer property deliveries, lower gross margins from real estate business, fair value losses on investment properties, and net exchange losses from USD exchange rate fluctuations[216] Consolidated Statement of Financial Position As of December 31, 2022, the Group's total assets decreased by approximately 11.3% to RMB 149.651 billion, with total liabilities at RMB 126.438 billion and total equity at RMB 23.213 billion, leading to a net gearing ratio of 48% Summary of Consolidated Statement of Financial Position | Indicator | December 31, 2022 (RMB thousands) | December 31, 2021 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 149,650,517 | 168,745,840 | -11.32% | | Total non-current assets | 21,467,532 | 21,208,825 | 1.22% | | Total current assets | 128,182,985 | 147,537,015 | -13.12% | | Total equity | 23,212,387 | 23,603,492 | -1.66% | | Total liabilities | 126,438,130 | 145,142,348 | -12.89% | | Total current liabilities | 119,088,138 | 132,483,394 | -10.11% | | Total non-current liabilities | 7,349,992 | 12,658,954 | -41.94% | | Net current assets | 9,094,847 | 15,053,621 | -39.59% | - As of December 31, 2022, the net gearing ratio increased to approximately 48% from 39% in 2021[218] Notes to the Financial Statements General Information Greenland Hong Kong Holdings Limited, incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, primarily operates in property development and related services in China, with financial statements presented in RMB - The Company is incorporated in the Cayman Islands and its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[31] - The Group's principal activities are property development for sale and lease, provision of ancillary services, and hotel operations in China[32] - The consolidated financial statements are presented in RMB, which is also the Company's functional currency[48] Application of Amendments to International Financial Reporting Standards The Group first applied several IFRS amendments this year, with new standards issued but not yet effective, including those on insurance contracts and liability classification, currently being assessed for their full impact - The Group first applied amendments to International Financial Reporting Standards issued by the IASB this year, including amendments to IFRS 3, IAS 16, and IAS 37[33][49] - New and amended IFRSs issued but not yet effective include IFRS 17 (Insurance Contracts), amendments to IAS 1 (Classification of Liabilities as Current or Non-current), and amendments to IAS 12 (Deferred Tax related to Assets and Liabilities arising from a Single Transaction)[35][37][50][51][79] - Amendments to IAS 12 will narrow the scope of the recognition exemption for deferred tax liabilities and assets, with the Group still assessing the full impact of their application[81][82] Amendments to IFRS Mandatorily Effective This Year Amendments to IFRS mandatorily effective this year, including those related to the Conceptual Framework, Property, Plant and Equipment, and Onerous Contracts, had no significant impact on the Group's financial position or performance - The application of amended IFRSs this year had no significant impact on the Group's financial position and performance for the current and prior years, and/or the disclosures in these consolidated financial statements[49] New and Amended IFRSs Issued But Not Yet Effective New and amended IFRSs issued but not yet effective include IFRS 17, amendments to IAS 1 and IAS 12, which the Group has not early adopted and is currently assessing the full impact of IAS 12 amendments - New and amended IFRSs issued but not yet effective include IFRS 17 (Insurance Contracts), amendments to IAS 1 (Classification of Liabilities as Current or Non-current), and amendments to IAS 12 (Deferred Tax related to Assets and Liabilities arising from a Single Transaction)[35][37][50][51][79] - Amendments to IAS 12 will narrow the scope of the recognition exemption for deferred tax liabilities and assets, with the Group still assessing the full impact of their application[81][82] - The Group has not early applied the new and amended IFRSs that have been issued but are not yet effective[52] Basis of Preparation of Consolidated Financial Statements and Principal Accounting Policies The consolidated financial statements are prepared in accordance with IFRS and the Listing Rules, primarily on a historical cost basis, with certain financial instruments and investment properties measured at fair value, and fair value measurements categorized into three levels based on input observability Basis of Preparation of Consolidated Financial Statements The consolidated financial statements are prepared in accordance with IFRS and the Listing Rules, primarily on a historical cost basis, with certain financial instruments and investment properties measured at fair value - The consolidated financial statements are prepared in accordance with International Financial Reporting Standards issued by the IASB and include applicable disclosures required by the Listing Rules of The Stock Exchange of Hong Kong Limited and the Hong Kong Companies Ordinance[83] - The consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments and investment properties which are measured at fair value at the end of each reporting period[84] Fair Value Measurement Fair value is the price received to sell an asset or paid to transfer a liability in an orderly transaction, with measurements categorized into three levels based on the observability of inputs - Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date[85] - Fair value measurements are categorized into Level 1, Level 2, or Level 3 based on the observability of the inputs and their overall significance to the fair value measurement[61][87] Going Concern Assessment The directors have reviewed the Group's cash flow forecasts for at least the next twelve months and believe the Group has sufficient financial resources to continue operations, thus adopting the going concern basis for the consolidated financial statements - After making enquiries and considering the basis of the Group's cash flow forecasts, the directors believe the Group has sufficient financial resources to continue operations, and thus the consolidated financial statements are prepared on a going concern basis[40] Significant Accounting Judgments and Key Sources of Estimation Uncertainty The Group makes significant judgments and estimates in preparing financial statements, primarily concerning investment property valuation, PRC Land Appreciation Tax, write-downs of properties under development and completed properties held for sale, and expected credit loss provisions, which may lead to material adjustments in asset and liability carrying amounts - The directors make judgments, estimates, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources when applying the Group's accounting policies[63] - Key sources of estimation uncertainty include investment property valuation, PRC Land Appreciation Tax, write-downs of properties under development and completed properties held for sale, and expected credit loss provisions[65][70][90][92][93][95] Significant Accounting Judgments Significant accounting judgments made by the directors, which have the most material effect on amounts recognized in the consolidated financial statements, include deferred tax on investment properties, assuming future tax outcomes arise from leasing rather than sale - A significant accounting judgment made by the directors in applying the Group's accounting policies that has the most material effect on the amounts recognized in the consolidated financial statements is deferred tax on investment properties, assuming future tax outcomes arise from leasing rather than sale[89] Key Sources of Estimation Uncertainty Key sources of estimation uncertainty at the end of the reporting period, which involve significant risk of material adjustments to the carrying amounts of assets and liabilities in the next financial year, include investment property valuation, PRC Land Appreciation Tax, write-downs of properties under development and completed properties held for sale, and expected credit loss provisions - Key assumptions and other major sources of estimation uncertainty at the end of the reporting period involve significant risks that could lead to material adjustments to the carrying amounts of assets and liabilities in the next financial year[90] Valuation of Investment Properties Investment properties are carried at fair value, with their valuation dependent on key inputs such as estimated costs to complete properties under development, capitalization rates, average market rents, and average market prices, where changes in these assumptions may lead to adjustments in fair value and carrying amounts - Investment properties in the consolidated statement of financial position as of December 31, 2022, are carried at their fair value of approximately RMB 11.181 billion[91] - Valuation depends on several key inputs requiring significant management estimation, including estimated costs to complete investment properties under development, capitalization rates, average unit market rents, and average unit market prices[91] PRC Land Appreciation Tax The Group is subject to PRC Land Appreciation Tax, whose calculation is highly correlated with estimates of land value appreciation and deductible expenses, and final tax outcomes may differ from initially recorded amounts, impacting income tax expense and related provisions - The Group is subject to PRC Land Appreciation Tax, the calculation of which is highly correlated with the appropriateness of the rates used, determined based on land value appreciation[67][92] Land Appreciation Tax Data | Indicator | 2022 (RMB) | 2021 (RMB) | | :--- | :--- | :--- | | Land Appreciation Tax payable | 4,666,612,000 | 4,894,829,000 | | Land Appreciation Tax recognized in the consolidated statement of profit or loss and other comprehensive income | 614,018,000 | 2,154,944,000 | Write-downs of Properties Under Development and Completed Properties Held for Sale Management regularly reviews the carrying amounts of properties under development and completed properties held for sale, making write-downs when estimated net realizable value falls below carrying amount, with net realizable value estimates requiring judgment based on market conditions, sales transactions, promotion costs, and completion costs - Management regularly reviews the carrying amounts of properties under development and completed properties held for sale, and write-downs are made when the estimated net realizable value falls below the carrying amount[68][93] - Estimates of net realizable value require judgment by reference to recent sales transactions in nearby locations, marketing costs, and estimated costs to complete the properties[69][93] Write-down Amounts for Properties Under Development and Completed Properties Held for Sale | Year | Write-down Amount (RMB) | | :--- | :--- | | 2022 | 2,306,762,000 | | 2021 | 2,739,017,000 | Expected Credit Loss Provisions The Group recognizes expected credit loss provisions for financial assets subject to impairment under IFRS 9, with amounts updated at each reporting date to reflect changes in credit risk, involving significant judgment and estimation for the provision matrix and expected loss rates - The Group recognizes loss allowances for expected credit losses on financial assets subject to impairment under IFRS 9, including trade receivables, other receivables, and other items[70][95] - The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition, requiring significant judgment and estimation[95] Revenue The Group's total revenue in 2022 was approximately RMB 26.614 billion, primarily from property sales and construction management services, accounting for approximately 96% of total revenue, with revenue recognition varying based on service type (at a point in time or over time) Revenue from Contracts with Customers by Type (RMB thousands) | Type of goods or services | 2022 (at a point in time) | 2022 (over time) | 2022 (Total) | | :--- | :--- | :--- | :--- | | Sales of properties and construction management services | 25,677,380 | – | 25,677,380 | | Hotel and ancillary services | – | 61,227 | 61,227 | | Property management and other services | – | 617,241 | 617,241 | | Revenue from contracts with customers | 25,677,380 | 678,468 | 26,355,848 | | Leases - rental income | | | 258,469 | | Total revenue | | | 26,614,317 | - Revenue from property sales and construction management services amounted to approximately RMB 25.677 billion, accounting for approximately 96% of total revenue, a decrease of approximately 22% compared to the same period last year[164] Revenue from Contracts with Customers by Type The Group's revenue from contracts with customers primarily comprises property sales and construction management services (recognized at a point in time) and hotel, ancillary, and property management services (recognized over time), totaling RMB 26.614 billion in 2022 Revenue from Contracts with Customers by Type (RMB thousands) | Type of goods or services | 2022 (at a point in time) | 2022 (over time) | 2022 (Total) | | :--- | :--- | :--- | :--- | | Sales of properties and construction management services | 25,677,380 | – | 25,677,380 | | Hotel and ancillary services | – | 61,227 | 61,227 | | Property management and other services | – | 617,241 | 617,241 | | Revenue from contracts with customers | 25,677,380 | 678,468 | 26,355,848 | | Leases - rental income | | | 258,469 | | Total revenue | | | 26,614,317 | Performance Obligations in Customer Contracts The Group's performance obligations include property sales, construction management, hotel, and property management services, with revenue from property sales recognized when customers obtain control, and revenue from construction management, hotel, and property management services recognized over time using input or output methods - Revenue from sales of residential properties is recognized at the point in time when control of the completed property is transferred to the customer, i.e., when the customer obtains control of the completed property and the Group has an immediate right to payment and may collect the consideration[74][100] - Revenue from construction management services is recognized over time using the input method based on the proportion of construction costs incurred to date relative to the estimated total construction costs[75][125] - Revenue from accommodation services is recognized over time, with progress measured using the output method over the period of occupancy of the accommodation rooms; revenue from property management and other services is also recognized over time, with progress measured using the output method[78][104][127] Transaction Price Allocated to Remaining Performance Obligations in Customer Contracts As of December 31, 2022, the total transaction price allocated to remaining performance obligations for property sales was RMB 67.127 billion, with RMB 33.777 billion expected to be recognized within one year Transaction Price Allocated to Remaining Performance Obligations in Customer Contracts (RMB thousands) | Period | 2022 | 2021 | | :--- | :--- | :--- | | Within one year | 33,777,364 | 33,813,210 | | More than one year but within two years | 23,657,441 | 35,238,739 | | More than two years | 9,692,469 | 12,828,043 | | Total | 67,127,274 | 81,879,992 | - The duration of hotel and other ancillary services, as well as property management and other services, is all one year or less, thus no transaction price allocated to these unfulfilled contracts is disclosed[127] Leases The Group's rental income primarily derives from fixed lease payments under operating leases, amounting to RMB 258.469 million in 2022, a slight decrease from 2021 Operating Lease Income (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Fixed lease payments | 258,469 | 263,743 | Other Income The Group's total other income in 2022 amounted to RMB 46.64 million, primarily comprising forfeited deposits from customers, government grants, and other miscellaneous income Other Income (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Forfeited deposits from customers | 19,282 | 18,815 | | Government grants | 18,933 | 32,519 | | Others | 8,425 | 11,255 | | Total | 46,640 | 62,589 | - Government grants represent preferential subsidies received from local authorities in China for the Group's business activities in the region, with no specific conditions attached to these grants[130] Other Gains and Losses The Group's other gains and losses shifted from a gain of RMB 267 million in 2021 to a gain of RMB 24.618 million in 2022, primarily influenced by net exchange losses and net gains on disposal of assets classified as held for sale and property, plant and equipment Other Gains and Losses (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Net exchange (losses) gains | (194,534) | 267,485 | | Fair value change losses from financial assets at fair value through profit or loss | – | (440) | | Net gains on disposal of assets classified as held for sale and property, plant and equipment | 219,152 | 37 | | Total | 24,618 | 267,082 | - Other income, other gains and losses, and other operating expenses decreased from a gain of approximately RMB 82 million in 2021 to a loss of approximately RMB 71 million in 2022, primarily due to the net effect of gains from the disposal of the Huangshan project and exchange losses during the review period[8] Finance Costs The Group's finance costs decreased by approximately 48.2% to RMB 132 million in 2022 from RMB 255 million in 2021, primarily comprising interest expenses on bonds, interest-bearing loans, lease liabilities, and contract liabilities, net of capitalized portions Finance Costs (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Interest expense on bonds | 42,940 | 122,911 | | Interest expense on interest-bearing loans | 882,086 | 1,176,930 | | Interest expense on lease liabilities | 33,191 | 26,067 | | Interest expense on contract liabilities | 311,604 | 461,499 | | Less: capitalized bond interest | (30,144) | (87,226) | | Less: capitalized interest on interest-bearing loans | (795,813) | (983,912) | | Less: capitalized interest on contract liabilities | (311,604) | (461,499) | | Total | 132,260 | 254,770 | - Finance costs decreased from approximately RMB 255 million in 2021 to approximately RMB 132 million in 2022[215] - During the year, capitalized interest expenses were derived from the general borrowing pool and calculated by applying a capitalization rate of 6.07% per annum (2021: 5.7%) to qualifying asset expenditures[133] Income Tax Expense The Group's income tax expense decreased significantly by approximately 61% to RMB 1.489 billion in 2022 from RMB 3.855 billion in 2021, primarily due to reduced revenue, with the expense mainly comprising PRC corporate income tax and PRC Land Appreciation Tax Income Tax Expense (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Current tax - PRC corporate income tax | 981,248 | 1,910,255 | | Current tax - PRC Land Appreciation Tax | 614,018 | 2,154,944 | | Under-provision (over-provision) in prior years - PRC corporate income tax | 9,393 | (763) | | Deferred tax | (115,229) | (209,779) | | Total | 1,489,430 | 3,854,657 | - Income tax expense decreased by approximately 61% from approximately RMB 3.855 billion in 2021 to approximately RMB 1.489 billion in 2022, primarily due to reduced revenue in 2022[191][216] - The corporate income tax rate for the Group's PRC subsidiaries is 25%[135] Details of Income Tax Expense The Group's 2022 income tax expense, totaling RMB 1.489 billion, primarily comprised PRC corporate income tax and PRC Land Appreciation Tax, representing a significant decrease from 2021, with no Hong Kong profits tax provision made as income is not sourced from Hong Kong Details of Income Tax Expense (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Current tax - PRC corporate income tax | 981,248 | 1,910,255 | | Current tax - PRC Land Appreciation Tax | 614,018 | 2,154,944 | | Under-provision (over-provision) in prior years - PRC corporate income tax | 9,393 | (763) | | Deferred tax | (115,229) | (209,779) | | Total | 1,489,430 | 3,854,657 | - No Hong Kong profits tax provision has been made as the Group's income is neither derived from nor arises in Hong Kong[134] Land Appreciation Tax Under PRC regulations, all income from the sale or transfer of state-owned land use rights, buildings, and ancillary facilities in China is subject to Land Appreciation Tax at progressive rates from 30% to 60% on the appreciation amount, with exemptions for ordinary residential properties under specific conditions - All income from the sale or transfer of state-owned land use rights, buildings, and ancillary facilities in China is subject to Land Appreciation Tax at progressive rates ranging from 30% to 60% on the appreciation amount[114][137] - Ordinary residential properties may be exempt if the appreciation amount from property sales does not exceed 20% of the sum of deductible items[137] Reconciliation of Income Tax Expense to Profit Before Tax for the Year The reconciliation of income tax expense to profit before tax for 2022 shows a tax at the PRC corporate income tax rate of 25% amounting to RMB 567 million, with the final income tax expense of RMB 1.489 billion primarily influenced by PRC Land Appreciation Tax provisions and the tax effect of unrecognized tax losses Reconciliation of Income Tax Expense to Profit Before Tax for the Year (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Profit before tax | 2,269,875 | 6,288,582 | | Tax at PRC corporate income tax rate of 25% | 567,469 | 1,572,146 | | PRC Land Appreciation Tax provision for the year | 614,018 | 2,154,944 | | Income tax expense for the year | 1,489,430 | 3,854,657 | Profit for the Year The Group's profit for the year in 2022 was approximately RMB 780 million, a significant decrease from RMB 2.434 billion in 2021, achieved after deducting costs of properties sold, staff costs, auditor's remuneration, depreciation and amortization, and write-downs of properties under development and completed properties held for sale Key Deductions/Additions to Profit for the Year (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Cost of properties sold | 21,657,937 | 24,151,999 | | Staff costs (net of capitalization) | 435,965 | 806,533 | | Auditor's remuneration (total) | 5,780 | 8,000 | | Depreciation of property, plant and equipment | 57,246 | 86,980 | | Write-downs of properties under development and completed properties held for sale | 193,347 | 350,309 | | Gross rental income from investment properties | 258,469 | 263,743 | Dividends The Board of Directors resolved not to recommend any dividend payment for the year ended December 31, 2022, following a final dividend of HKD 0.3 per share paid in 2021 - The Board of Directors has resolved not to recommend the payment of any dividend for the year ended December 31, 2022[118][223] Dividends Recognized as Distributions to Ordinary Shareholders (RMB thousands) | Year | Dividend Amount | | :--- | :--- | | 2022 | No dividend proposed | | 2021 (HKD 0.3 per share) | 716,277 | Earnings Per Share Basic earnings per share attributable to owners of the Company decreased significantly to RMB 0.17 in 2022 from RMB 0.78 in 2021, calculated by dividing profit for the year by the weighted average number of ordinary shares, with no diluted earnings per share presented as no potential ordinary shares were issued in either year Calculation of Basic Earnings Per Share (RMB thousands) | Indicator | 2022 | 2021 | | :--- | :--- | :--- | | Profit for the year attributable to owners of the Company | 480,904 | 2,155,140 | | Weighted average number of ordinary shares (thousands) | 2,769,188 | 2,769,188 | | Basic earnings per share (RMB) | 0.17 | 0.78 | - Diluted earnings per share for both years are not presented as no potential ordinary shares were issued in either year[119] Trade and Other Receivables, Deposits, and Prepayments As of December 31, 2022, the Group's total trade and other receivables, deposits, and prepayments decreased to RMB 24.885 billion from RMB 28.037 billion in 2021, with trade receivables primarily arising from property sales and leases, including some overdue amounts Trade and Other Receivables, Deposits, and Prepayments (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Trade receivables (net of credit loss allowance) | 401,785 | 419,947 | | Other receivables (net of credit loss allowance) | 20,009,887 | 20,663,466 | | Prepayments to independent third-party contractors | 1,199,608 | 1,705,055 | | Prepayments to related parties | 317,029 | 179,871 | | Deposits paid for acquisition of land for development | 465,120 | 1,492,145 | | Other prepaid taxes | 2,492,043 | 3,576,691 | | Total | 24,885,472 | 28,037,175 | Ageing Analysis of Trade Receivables (net of credit loss allowance) (RMB thousands) | Ageing | 2022 | 2021 | | :--- | :--- | :--- | | 0–90 days | 141,556 | 99,235 | | 91–180 days | 5,084 | 66,828 | | 181–365 days | 25,415 | 9,050 | | Over 365 days | 229,730 | 244,834 | | Total | 401,785 | 419,947 | - As of December 31, 2022, the Group's trade receivables balance included overdue trade receivables with a gross carrying amount of RMB 104.791 million at the reporting date[170] Trade and Other Payables As of December 31, 2022, the Group's total trade and other payables decreased to RMB 56.104 billion from RMB 59.201 billion in 2021, with trade payables primarily due to independent third parties and other payables including non-trade amounts due to related parties and interest payable Trade and Other Payables (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Trade payables - due to related parties | 1,595,105 | 1,836,184 | | Trade payables - due to non-controlling shareholders | 3,202 | 792 | | Trade payables - due to independent third parties | 25,734,102 | 26,830,526 | | Non-trade amounts due to related parties | 7,250,866 | 6,959,069 | | Other taxes payable | 1,787,413 | 1,543,800 | | Interest payable | 198,776 | 141,139 | | Consideration payable to Greenland Holdings | 953,759 | 953,759 | | Amounts due to non-controlling shareholders | 5,264,529 | 6,163,770 | | Other payables and accrued expenses | 13,315,977 | 14,772,158 | | Total | 56,103,729 | 59,201,197 | Ageing Analysis of Trade Payables (RMB thousands) | Ageing | 2022 | 2021 | | :--- | :--- | :--- | | 0–90 days | 18,826,085 | 22,062,664 | | 91–180 days | 578,035 | 1,831,817 | | 181–365 days | 2,290,710 | 1,710,483 | | Over 365 days | 5,637,579 | 3,062,538 | | Total | 27,332,409 | 28,667,502 | - Trade and other payables are primarily unsecured and repayable on demand[171] Bonds The Group fully repaid its Series A bonds with a total principal amount of USD 150 million and an interest rate of 9.625% on June 3, 2022, resulting in no outstanding Series A bonds as of December 31, 2022 - The Company fully redeemed all outstanding Series A bonds on June 3, 2022[149][226] Bonds Status (RMB thousands) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Series A bonds | – | 952,787 | Perpetual Securities The Group issued senior perpetual capital securities with a total principal amount of USD 120 million, granting holders the right to receive distributions, which are classified as equity, with USD 12.252 million (approximately RMB 82.343 million) in distributions accrued and paid in 2022 - The Group issued USD-denominated senior perpetual capital securities with a total principal amount of USD 120 million[150] - The perpetual securities only impose a contractual obligation on the Group to repay the principal or pay any distributions at the Group's discretion under certain circumstances, thus the entire instrument is classified as equity[173] Perpetual Securities Distributions (USD/RMB thousands) | Year | Distribution Amount (USD) | Distribution Amount (RMB thousands) | | :--- | :--- | :--- | | 2022 | 12,252,000 | 82,343 | | 2021 | 9,132,000 | 58,697 | Management Discussion and Analysis Business Review In 2022, despite unprecedented challenges in China's real estate sector, the Group adjusted its strategy to focus on existing asset monetization, innovative marketing, and product design, achieving contract sales of approximately RMB 15.726 billion and holding approximately 21 million square meters of land reserves - In 2022, China's real estate industry faced unprecedented challenges, but regulatory authorities introduced multiple policies to stabilize the market, particularly the 'Financial 16 Measures' and 'CSRC New 5 Measures', supporting enterprise financing through credit, bond, and equity channels[154] - The Group timely adjusted its strategy, focusing on the monetization of existing assets, innovative marketing approaches, prudent project investment, and continuous strengthening of risk management[178] 2022 Contract Sales and Delivery Overview | Indicator | Amount/Quantity | | :--- | :--- | | Contract sales amount | Approximately RMB 15,726,000,000 | | Contract sales area | Approximately 1,567,717 square meters | | Total GFA of projects sold and delivered | Approximately 2,327,180 square meters | | Average selling price | Approximately RMB 10,665 per square meter | | Property sales revenue | Approximately RMB 25,677,000,000 | Macroeconomic and Industry Environment In 2022, global economic recovery slowed, while mainland China's economy developed under pressure, with the real estate sector facing challenges but supported by government policies like the 'Financial 16 Measures' and 'CSRC New 5 Measures' to stabilize the market and facilitate corporate financing - In 2022, global economic recovery significantly slowed due to factors such as recurring COVID-19 outbreaks, the Russia-Ukraine conflict, and high global inflation[176] - China's real estate industry faced unprecedented challenges, but local governments adhered to the principle that 'housing is for living, not for speculation', implementing city-specific policies to support rigid and improved housing demand[154] - Regulatory authorities introduced multiple policies to stabilize the real estate market, particularly the 'Financial 16 Measures' and 'CSRC New 5 Measures', supporting enterprise financing through credit, bond, and equity channels[154] Performance and Product Strength Greenland Hong Kong garnered 22 industry awards for product design in 2022, including 17 international and 5 domestic awards, and was honored as the 'Most Valuable Real Estate and Property Company', actively enhancing its corporate image - In 2022, Greenland Hong Kong's product design received a total of 22 industry awards, including 17 international and 5 domestic awards[155] - Greenland Hong Kong was honored with the 'Most Valuable Real Estate and Property Company' award[155] Property Sales and Delivery During the review period, the Group sold and delivered properties with a total gross floor area of approximately 2.327 million square meters, a decrease of approximately 13% year-on-year, generating property sales revenue of approximately RMB 25.677 billion, a 22% decrease, with major deliveries in cities like Kunming, Yangzhou, Suzhou, and Shenzhen - During the review period, the total gross floor area of projects sold and delivered was approximately 2,327,180 square meters, a decrease of approximately 13% compared to the same period last year[180] - Property sales revenue was approximately RMB 25.677 billion, a decrease of approximately 22% compared to the same period last year[180] 2022 Overview of Property Sales and Delivery in Major Cities | City | Approximate GFA Sold and Delivered (sqm) | Approximate Recognized Sales Amount (RMB thousands) | Average Selling Price (RMB/sqm) | | :--- | :--- | :--- | :--- | | Kunming | 285,500 | 3,502,873 | 12,269 | | Yangzhou | 127,007 | 2,215,434 | 17,443 | | Suzhou | 105,496 | 2,097,455 | 19,882 | | Shenzhen | 43,323 | 1,816,252 | 41,924 | | Guangzhou | 110,047 | 1,805,684 | 16,408 | | Nantong | 106,467 | 1,409,160 | 13,236 | | Changzhou | 105,589 | 1,207,125 | 11,432 | | Foshan | 122,637 | 1,172,484 | 9,561 | | Haikou | 96,621 | 1,132,359 | 11,720 | | Xuancheng | 168,902 | 1,126,323 | 6,669 | | Yancheng | 122,977 | 1,023,793 | 8,325 | | Nanning | 201,547 | 917,303 | 4,551 | | Zhenjiang | 78,409 | 746,560 | 9,521 | | Wuxi | 63,674 | 717,874 | 11,274 | | Shengzhou | 81,546 | 578,814 | 7,098 | | Zhanjiang | 65,532 | 557,507 | 8,507 | | Jieyang | 76,015 | 390,207 | 5,133 | | Qingyuan | 55,545 | 385,546 | 6,941 | | Yangjiang | 66,955 | 376,885 | 5,629 | | Jiangmen | 53,320 | 375,947 | 7,051 | | Jiaxing | 49,404 | 304,413 | 6,162 | | Qinzhou | 61,958 | 283,051 | 4,568 | | Yiwu | 7,544 | 264,665 | 35,083 | | Maoming | 43,347 | 234,148 | 5,402 | | Others | 27,818 | 176,990 | 6,362 | | Subtotal | 2,327,180 | 24,818,852 | 10,665 | | Parking spaces | 858,528 | 25,677,380 | | Contract Sales and Operational Capability The Group's contract sales amounted to approximately RMB 15.726 billion in 2022, primarily from key regions like Guangdong, Jiangsu, Yunnan, and Zhejiang, with the company focusing on core cities in the Yangtze River Delta and Greater Bay Area, and implementing a 'Transparent House' standardized system and new media marketing to counter market downturns - During the review period, the Group's contract sales amounted to approximately RMB 15.726 billion, corresponding to a contract sales area of approximately 1,567,717 square meters[3] - The main sources of the Group's contract sales were key regions such as Guangdong, Jiangsu, Yunnan, and Zhejiang, accounting for approximately 31%, 25%, 14%, and 12% of contract sales respectively[3] - In 2022, the Group established the 'Transparent House' standardized system and actively explored new media channels, building a Douyin platform matrix, coordinating short video layouts, and organizing periodic live broadcasts[160][208] Long-term Rental Business The Group successfully established its long-term rental apartment brand 'Qingshe', providing living spaces and social atmospheres for urban youth, with six 'Qingshe' stores operating stably and achieving an average occupancy rate exceeding 90%, targeting first-tier and new first-tier cities for future expansion - The Group successfully established its long-term rental apartment brand 'Qingshe', dedicated to providing quality, comfortable, and fashionable living spaces and social atmospheres for urban youth[209] - As of the date of this preliminary announcement, Greenland Hong Kong's six 'Qingshe' stores have shown stable and improving overall operations, with an average occupancy rate exceeding 90%[209] - In the future, the 'Qingshe' brand will primarily target first-tier and new first-tier cities, with a focus on Shanghai, Beijing, Guangzhou, Shenzhen, and Nanjing[209] Land Reserve As of December 31, 2022, the Group possessed a substantial land reserve of approximately 21 million square meters, strategically concentrated in key core cities with population inflows in China, sufficient to support 2 to 3 years of future development, with continued focus on the Yangtze River Delta and Greater Bay Area, particularly first-tier cities - As of December 31, 2022, the Group held a substantial land reserve of approximately 21 million square meters, strategically concentrated in key core cities with population inflows in China[4][184] - The land reserve is sufficient to support the Group's development needs for the next 2 to 3 years[4] - In the future, the Group will continue to deepen its presence in the Yangtze River Delta and Greater Bay Area, focusing on first-tier cities, and will adopt a prudent investment strategy[4] Outlook The Central Economic Work Conference emphasized 'ensuring housing delivery, people's livelihoods, and stability' and supporting housing demand, leading the Group to believe that 2023 regulatory policies will align with economic recovery, enabling the real estate market to gradually repair and rebound, with Greenland Hong Kong committed to long-term development, enhancing quality, focusing on green development, and promoting intelligent and information-based management - The Central Economic Work Conference's deployment on real estate began with 'ensuring stable development of the real estate market', explicitly proposing 'ensuring housing delivery, people's livelihoods, and stability', effectively preventing and resolving risks for high-quality leading real estate enterprises, improving asset-liability conditions, and supporting rigid and improved housing demand[185][210] - The Group believes that 2023 regulatory policies will actively align with economic recovery to achieve the goal of 'stabilizing real estate'; the real estate market is poised for gradual repair and will progressively rebound[185] - In the future, Greenland Hong Kong will firmly seize the opportunity of a gradually improving market environment, comprehensively enhance development quality, focus on green development, integrate sustainable development concepts throughout the entire project development cycle, develop green buildings, and promote intelligent and information-based management[5] Financial Performance The Group's total revenue decreased by 22% to RMB 26.614 billion in 2022, with gross profit declining by 51.5% to RMB 4.099 billion and gross margin falling from 25% to 15%, while operating expenses were effectively controlled, and profit for the year and profit attributable to owners of the Company decreased by 68% and 78% respectively 2022 Financial Performance Overview (RMB thousands) | Indicator | 2022 | 2021 | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Total revenue | 26,614,317 | 33,926,923 | (7,312,606) | | Revenue from property sales and construction management services | 25,677,380 | 33,017,756 | (7,340,376) | | Gross profit | 4,099,000 | 8,470,000 | -4,371,000 | | Gross margin | 15% | 25% | -10% | | Administrative expenses | 621,000 | 954,000 | -333,000 | | Selling and marketing costs | 856,000 | 1,058,000 | -202,000 | | Finance costs | 132,000 | 255,000 | -123,000 | | Income tax expense | 1,489,000 | 3,855,000 | -2,366,000 | | Profit for the year | 780,000 | 2,434,000 | -1,654,000 | | Profit attributable to owners of the Company | 481,000 | 2,155,000 | -1,674,000 | Revenue The Group's total revenue in 2022 was approximately RMB 26.614 billion, a 22% decrease from 2021, primarily due to reduced recognized area of delivered properties, with property sales and construction management services remaining the core business, accounting for approximately 96% of total revenue - The Group's total revenue in 2022 was approximately RMB 26.614 billion, a decrease of approximately 22% from approximately RMB 33.927 billion in 2021, primarily due to a reduction in the recognized area of properties delivered by the Group[6][186] - Revenue from property sales and construction management services amounted to approximately RMB 25.677 billion, accounting for approximately 96% of total revenue, a decrease of approximately 22% compared to the same period last year[164] Cost of Sales The Group's cost of sales in 2022 was approximately RMB 22.516 billion, a decrease of approximately 12% from 2021, primarily comprising land costs, construction costs, capitalized finance costs, and sales taxes - Cost of sales was approximately RMB 22.516 billion in 2022, compared to approximately RMB 25.457 billion in 2021, representing a decrease of approximately 12%[7][187] - Cost of sales primarily includes land costs, construction costs, capitalized finance costs, and sales taxes[7] Gross Profit and Gross Margin The Group's gross profit decreased from approximately RMB 8.47 billion in 2021 to approximately RMB 4.099 billion in 2022, primarily due to a weak real estate market and a different mix of delivered properties, with the gross margin declining from approximately 25% to 15% - Gross profit decreased from approximately RMB 8.47 billion in 2021 to approximately RMB 4.099 billion in 2022, primarily due to the overall weak real estate market and a different mix of properties delivered by the Group in 2022 compared to 2021[165][213] - The gross margin decreased from approximately 25% in 2021 to approximately 15% in 2022[213] Other Income, Other Gains and Losses, and Other Operating Expenses The Group's other income, other gains and losses, and other operating expenses shifted from a gain of approximately RMB 82 million in 2021 to a loss of approximately RMB 71 million in 2022, primarily due to the net effect of gains from the disposal of the Huangshan project and exchange losses during the review period - Other income, other gains and losses, and other operating expenses decreased from a gain of approximately RMB 82 million in 2021 to a loss of approximately RMB 71 million in 2022, primarily due to the net effect of gains from the disposal of the Huangshan project and exchange losses during the review period[8][188] Operating Expenses Through effective management of expenditures, the Group's administrative expenses and selling and marketing costs decreased to approximately RMB 621 million and RMB 856 million respectively, representing reductions of approximately 35% and 19% compared to the same period in 2021 - Due to effective management of the Group's expenditures, administrative expenses and selling and marketing costs decreased to approximately RMB 621 million and approximately RMB 856 million respectively[189][214] - Administrative expenses and selling and marketing costs decreased by approximately 35% and 19% respectively compared to the same period in 2021[189] Investment Properties As of December 31, 2022, the Group held 25 investment properties with a total gross floor area of approximately 1.061 million square meters, recording a fair value loss of approximately RMB 273 million in 2022 due to market fluctuations - As of December 31, 2022, the Group had 25 investment properties with a total gross floor area of approximately 1,060,944 square meters[9][190] - The Group recorded a fair value loss on investment properties of approximately RMB 273 million in 2022 due to market fluctuations[9] Finance Costs The Group's finance costs decreased from approximately RMB 255 million in 2021 to approximately RMB 132 million in 2022, reflecting effective management of expenditure - Finance costs decreased from approximately RMB 255 million in 2021 to approximately RMB 132 million in 2022[215] Income Tax Expense The Group's income tax expense decreased by approximately 61% from approximately RMB 3.855 billion in 2021 to approximately RMB 1.489 billion in 2022, primarily due to reduced revenue in 2022 - Income tax expense decreased by approximately 61% from approximately RMB 3.855 billion in 2021 to approximately RMB 1.489 billion in 2022, primarily due to reduced revenue in 2022[191][216] Profit for the Year and Attributable to Owners of the Company Profit for the year and profit attributable to owners of the Company decreased to approximately RMB 780 million and RMB 481 million respectively, representing reductions of approximately 68% and 78% from 2021, primarily due to fewer property deliveries, lower gross margins, fair value losses on investment properties, and net exchange losses - Profit for the year and profit attributable to owners of the Company decreased to approximately RMB 780 million and RMB 481 million respectively, representing reductions of approximately 68% and 78% from approximately RMB 2.434 billion and RMB 2.155 billion in 2021[216] - This was primarily due to (i) fewer property deliveries and lower gross margins from real estate business, (ii) fair value losses on investment properties, and (iii) net exchange losses resulting from USD exchange rate fluctuations[216] Financial Position As of December 31, 2022, the Group's total equity was approximately RMB 23.213 billion, total assets approximately RMB 149.651 billion, and total liabilities approximately RMB 126.438 billion - As of December 31, 2022, the Group's total equity was approximately RMB 23.213 billion (December 31, 2021: approximately RMB 23.604 billion)[11][192] - Total assets were approximately RMB 149.651 billion (December 31, 2021: approximately RMB 168.746 billion), while total liabilities were approximately RMB 126.438 billion (December 31, 2021: approximately RMB 145.142 billion)[11] Liquidity and Financial Resources The Group's liquidity primarily stems from business operations, bank borrowings, and cash proceeds, with a net gearing ratio of approximately 48% and total cash and cash equivalents of approximately RMB 4.552 billion as of December 31, 2022, while treasury policies are in place to control funding costs and monitor foreign exchange and interest rate risks - The Group's business operations, bank borrowings, and cash proceeds raised are its primary sources of liquidity, applied to business operations and investment development projects[12][193] - As of December 31, 2022, the net gearing ratio was approximately 48% (December 31, 2021: 39%)[218] - Total cash and cash equivalents (including restricted cash) amounted to approximately RMB 4.552 billion, total borrowings approximately RMB 15.722 billion, and equity base approximately RMB 23.213 billion[218] Sources and Uses of Liquidity The Group's liquidity primarily originates from business operations, bank borrowings, and cash proceeds, which are utilized for business operations and investment development projects, resulting in net current assets of approximately RMB 9.095 billion as of December 31, 2022 - The Group's business operations, bank borrowings, and cash proceeds raised are its primary sources of liquidity, applied to business operations and investment development projects[12][193] - As of December 31, 2022, the Group had net current assets of approximately RMB 9.095 billion[83] Treasury Policy The Group has established a treasury policy aimed at strengthening control over treasury functions and reducing funding costs, with all funding terms for business operations centrally reviewed and supervised at the Group level - The Group has established a treasury policy aimed at strengthening control over treasury functions and reducing funding costs[194][195] - When providing funding for business operations, the terms of funding are subject to central review and supervision at the Group level[195] Foreign Exchange Risk The Group's business transactions are primarily denominated in RMB, limiting foreign exchange risk except for capital market fundraising, and the Group continuously monitors RMB against USD exchange rate movements, implementing hedging measures as appropriate - The Group's business transactions are primarily denominated in RMB, with limited foreign exchange risk except for fundraising activities in capital markets[13] - The Group has borrowings denominated in USD and HKD, but operating revenue is primarily denominated in RMB; the Group will continue to monitor the RMB against USD exchange rate movements and implement appropriate hedging measures for foreign exchange risk[219] Interest Rate Risk To minimize interest rate risk, the Group continues to closely monitor and manage its loan portfolio through existing agreed interest rates that fluctuate with market and bank rates - To minimize interest rate risk, the Group continues to closely monitor and manage its loan portfolio through existing agreed interest rates that fluctuate with market and bank rates[14] Credit Policy Trade receivables primarily arise from property sales and leases, collected according to terms in relevant agreements, with the Group generally not offering credit periods for property sales, except for major customers under specific approvals - Trade receivables primarily arise from property sales and leases, collected according to the terms stipulated in relevant sale and purchase agreements and lease agreements[196][220] - The Group generally does not provide credit periods for property sales to customers, except for major customers under specific approvals[170] Pledge of Assets In 2022, the Group pledged properties, land use rights, and time deposits with a carrying amount of approximately RMB 29.1 billion to secure bank credit, with total outstanding secured loan balances of approximately RMB 14.5 billion - In 2022, the Group pledged properties, land use rights, and time deposits with a carrying amount of approximately RMB 29.1 billion to secure bank credit[220] - The total outstanding secured loan balances amounted to approximately RMB 14.5 billion[220] Other Information As of December 31, 2022, the Group had capital commitments of approximately RMB 19.279 billion for property development, employed 3,014 staff with performance-linked incentives, complied with corporate governance code provisions except for the combined roles of Chairman and CEO and the Chairman's absence from the AGM, and had no significant post-reporting period events, with annual results reviewed by the audit committee Capital Commitments (RMB thousands) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Property development business - contracted but not provided for | 19,278,666 | 26,779,952 | - As of December 31, 2022, the Group employed a total of 3,014 staff (2021: 4,007 staff), with 1,549 employees working in the property development business[199] - For the year ended December 31, 2022, the Company complied with the code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules, except for code provisions C.2.1 and F.2.2, where Mr. Chen Jun held both the roles of Chairman and Chief Executive Officer, and the Chairman did not attend the Annual General Meeting[201][225][226] Financial Guarantees As of December 31, 2022, the Group provided guarantees to banks for mortgages amounting to RMB 25.599 billion Financial Guarantees (RMB thousands) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Mortgages | 25,598,816 | 29,661,792 | Capital Commitments As of December 31, 2022, the Group had capital commitments contracted but not provided for, related to property development business, amounting to approximately RMB 19.279 billion Capital Commitments (RMB thousands) | Item | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Property development business - contracted but not provided for | 19,278,666 | 26,779,952 | Human Resources As of December 31, 2022, the Group employed 3,014 staff, with 1,549 dedicated to property development, and implemented a performance-linked incentive system along with training programs to enhance employee skills - As of December 31, 2022, the Group employed a total of 3,014 staff (2021: 4,007 staff), with 1,549 employees working in the property development business[199][222] - To incentivize employees, the Group has adopted a performance-linked incentive system, providing year-end bonuses to outstanding employees in addition to basic salaries[199] Annual General Meeting and Closure of Register of Members The Company's Annual General Meeting will be held on June 30, 2023, with the register of members closed from June 27 to June 30, 2023, to determine eligibility for attending and voting - The Company's Annual General Meeting will be held on Friday, June 30, 2023[17][200] - The Company's register of members will be closed from Tuesday, June 27, 2023, to Friday, June 30, 2023 (both dates inclusive)[17] Corporate Governance For the year ended December 31, 2022, the Company complied with the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Chen Jun, and the Chairman's absence from the 2022 Annual General Meeting - For the year ended December 31, 2022, the Company complied with the code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules, except for code provisions C.2.1 and F.2.2[201][225] - Mr. Chen Jun holds both the roles of Chairman of the Board and Chief Executive Officer of the Company, with the Board believing that combining these roles facilitates efficient formulation and implementation of the Group's strategies and policies[201] - The Chairman of the Board did not attend the Company's Annual General Meeting held on June 30, 2022, due to other business commitments[226] Purchase, Sale or Redemption of the Company's Listed Securities Except for the disclosed bond repurchases and redemptions, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the year ended December 31, 2022 - On May 27, 2022, the Company repurchased USD 18.5 million principal amount of its 9.625% bonds due 2022, and on June 3, 2022, the Company fully redeemed all outstanding bonds[226] - Save as disclosed above, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the year ended December 31, 2022[202] [Significant Events After Reporting Period](index=33