Financial Performance - For the year ended December 31, 2023, the Group recorded total revenue of approximately RMB3,302.8 million, a decrease of approximately 4.2% compared to the previous year[6]. - The gross profit for the year was approximately RMB509.9 million, representing a decrease of approximately 46.7% compared to the previous year[6]. - The loss attributable to the owners of the Company for the year amounted to approximately RMB464.6 million, with basic losses per share of RMB9.13 cents, compared to earnings per share of RMB0.83 cents in 2022[6]. - The Group's revenue from property sales decreased to approximately RMB3,171.6 million for the reporting period, down from approximately RMB3,296.6 million in 2022[21]. - Total revenue for the reporting period was approximately RMB3,302.8 million, representing a decrease of approximately 4.2% compared to RMB3,449.0 million for the year ended 31 December 2022[30]. - Gross profit for the reporting period was approximately RMB509.9 million, representing a decrease of approximately 46.7% compared to RMB957.0 million for the year ended 31 December 2022[30]. - Loss for the reporting period was approximately RMB422.4 million, compared to a profit of approximately RMB14.3 million for the year ended 31 December 2022[30]. - The Group recognized rental income and property management income of approximately RMB131.1 million for the reporting period, a decrease from RMB152.4 million in 2022[62]. - The Group's revenue is primarily derived from property sales, contributing approximately 96.0% of total revenue for the reporting period[73]. - Property development accounted for 96.0% of total revenue, while property investment contributed 4.0%, with property investment revenue decreasing to approximately RMB131.1 million from RMB152.4 million in 2022[76][81]. Sales and Contracted Properties - Contracted property sales for the year were approximately RMB842.1 million, with a contracted gross floor area of approximately 92,601 square meters, reflecting a decrease of approximately 63.0% in contracted sales and approximately 55.8% in contracted GFA compared to the previous year[6]. - The contracted sales amount for the Sandi Yasong Meizhu project reached approximately RMB600.9 million from the pre-sales date up to December 31, 2023[14]. - The Sandi Manhattan project recorded a contracted sales amount of approximately RMB2,074.1 million during the same period[14]. - The average selling price for the Sandi Fengdan Yaju project was RMB13,788 per square meter, contributing RMB738.9 million to the total sales revenue[22]. - The Sandi Yasong Fengdan project generated sales revenue of RMB704.2 million, with an average selling price of RMB11,713 per square meter[22]. - The Sandi Yungu Fengdan project achieved sales revenue of RMB503.4 million, with an average selling price of RMB9,553 per square meter[22]. - The Sandi Manhattan project, a commercial development, had sales revenue of RMB333.6 million, with an average selling price of RMB30,716 per square meter[22]. - The total sales revenue from all projects amounted to RMB3,171.6 million, with a total gross floor area of 313,897 square meters[22]. - The average price of contracted sales for the Sandi Manhattan project was RMB18,801.39 per square meter, contributing 19.1% to total contracted sales[35]. - The average price of contracted sales for the Sandi Yasong Meizhu project was RMB13,708.87 per square meter, contributing 15.0% to total contracted sales[35]. Market Conditions and Outlook - The national sales area of commercial properties in China from January to December 2023 was approximately 1,117.35 million square meters, a decrease of approximately 8.5% compared to the same period last year[6]. - The sales amount of commercial properties was approximately RMB11,662.2 billion, a decrease of approximately 6.5% compared to the same period last year[6]. - The macroeconomic theme for China in 2024 is expected to be "full recovery," with policies to address financing difficulties for real estate enterprises being implemented[8]. - The outlook for 2024 indicates an acceleration in China's economic recovery, with expectations for policy loosening in core second-tier cities and potential optimizations in first-tier cities[71]. - The decrease in contracted sales is mainly influenced by the depressed real estate sales environment in 2023[32]. Development Projects - The Group had 14 property projects under development as of 31 December 2023, focusing on residential and commercial complex properties[32]. - The major property development project "Sandi Century New City" is expected to be completed in 2024, with a saleable GFA of 1,103,231 sq.m, of which 71,090 sq.m has been delivered[42]. - "Sandi Jinyu Gaoxin" project is also set for completion in 2024, with a site area of 65,157 sq.m and a saleable GFA of 94,563 sq.m, of which 1,474 sq.m has been delivered[42]. - The "Sandi Jiangshan Waterfront" project is expected to complete in 2024, with a site area of 310,176 sq.m and 10,525 sq.m already delivered[42]. - The total saleable GFA for all projects listed is 1,207,925 sq.m, with 1,461,051 sq.m delivered and 129,063 sq.m available for sale[46]. - The Group's interest in the "Sandi Bahe Yihao" project is 70%, with a planned GFA under development of 235,433 sq.m[42]. - The Group has ongoing developments in multiple provinces, including Fujian and Shaanxi, with significant projects planned for completion in 2024[42]. - The Group's future development plans include several projects with a total planned GFA of 1,285,478 sq.m[46]. Financial Position and Debt Management - As of December 31, 2023, the Group's gearing ratio was approximately 143.2%, a decrease from 149.0% in 2022, calculated based on net debts of approximately RMB 6,921.8 million[85]. - The debt ratio was approximately 79.5% as of December 31, 2023, compared to 80.6% in 2022, indicating a slight improvement in the Group's leverage[85]. - The Group's net current liabilities amounted to approximately RMB 1,267.2 million as of December 31, 2023, compared to net current assets of approximately RMB 1,542.4 million in 2022, resulting in a current ratio of approximately 91.10%[85]. - The Group had bank and other borrowings of approximately RMB 6,047.8 million as of December 31, 2023, down from RMB 6,720.0 million in 2022, with interest rates ranging from approximately 2.8% to 10.0% per annum[85]. - The Group continues to adopt a prudent funding and treasury policy to manage liquidity needs and may adjust dividends, issue new shares, or sell assets to reduce debt as necessary[85]. - The Group recognized a write-down of completed properties held for sale to net realizable value of approximately RMB 37.3 million for the year ended December 31, 2023, compared to nil in 2022[81]. - The write-down of properties under development for sale amounted to approximately RMB 261.2 million for the year ended December 31, 2023, also compared to nil in 2022, due to the impact of the mainland real estate market[81]. Corporate Governance - The Group's management structure currently combines the roles of Chairman and CEO, with plans to review this structure periodically[107]. - The Group's corporate governance practices are aligned with the CG Code, ensuring that they meet the required standards set by the Listing Rules[109]. - The Company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance by all Directors during the reporting period[104]. - The Board consists of 6 Directors, including 3 executive Directors and 3 independent non-executive Directors, ensuring a balance of skills and experience[115]. - The Company has mechanisms in place to ensure independent views are available to the Board, including annual independence confirmations from independent non-executive Directors[118]. - The Board reviews its composition and the effectiveness of its governance mechanisms annually[122]. - The Company has complied with Listing Rules regarding the appointment of independent non-executive Directors, ensuring at least one has appropriate professional qualifications[115]. - The Board is responsible for monitoring the succession planning of Directors and has established procedures for their nomination and appointment[126]. - The Company believes effective corporate governance is crucial for sustainable growth and the overall interests of the Group and its shareholders[111]. Risk Management - The Board is responsible for evaluating and determining the nature and extent of risks in achieving the Company's strategic objectives, ensuring effective risk management and internal control systems[192]. - The Audit Committee has reviewed the effectiveness of the Group's risk management and internal control systems, confirming their adequacy for the reporting period[194]. - An independent professional consultancy firm was engaged to review the internal control systems, providing findings and recommendations for improvement[194]. - The internal audit function is established to provide risk-based assurance and is continuously reviewed by the Audit Committee and executive Directors[194]. - The Company has implemented procedures for handling inside information to ensure timely and equal dissemination to the public[194]. - All divisions conduct regular internal control assessments to identify potential risks impacting business operations[192]. Employee and Remuneration Policies - The total remuneration paid to employees for the reporting period amounted to approximately RMB53.9 million, down from approximately RMB93.2 million in 2022, with a total of 273 employees as of December 31, 2023, compared to 417 employees in the previous year[104]. - The Remuneration Committee reviewed and made recommendations on the Company's policy and structure for all Directors' and senior management remuneration[168]. - The remuneration packages of executive Directors include basic salary, benefits in kind, discretionary bonus, retirement benefits, and participation in the share option scheme adopted in 2011[159]. - The independent non-executive Directors' remuneration includes Directors' fee and participation in the share option scheme, subject to annual assessment by the Remuneration Committee[167]. - The Remuneration Committee held one meeting during the reporting period to assess the performance of the Directors[163]. - The term of appointment for independent non-executive Directors is three years, with remuneration fixed by the Board as authorized by Shareholders[169]. - The Company has established a formal and transparent procedure for developing remuneration policy, reviewed by the Remuneration Committee[168]. Dividend Policy - The Board approved a dividend policy on March 21, 2019, to provide returns to shareholders[199]. - Dividends may be declared and paid if the Group is profitable and it does not affect normal operations[199]. - The Board will consider actual and expected financial performance, retained earnings, and working capital requirements when proposing dividends[199]. - The declaration and payment of dividends are at the sole discretion of the Board and subject to applicable laws[199]. - The Company reserves the right to update or modify the dividend policy at any time[199]. - The dividend policy does not constitute a legally binding commitment to pay dividends in any specific amount[199].
中国三迪(00910) - 2023 - 年度财报