Delivery and Revenue Performance - In 2023, the Company delivered approximately 40,000 units across 49 batches, with a total delivered area of 6.20 million sq.m., achieving 100% delivery as contracted[14]. - The Company's total revenue for the year ended December 31, 2023, was approximately RMB24.51 billion, representing a year-on-year increase of approximately 10.7%[20]. - Revenue from property sales was RMB23.98 billion, reflecting a year-on-year increase of 12.9%[20]. - The overall market fundamentals remained weak despite a brief recovery at the beginning of the year[12]. - Contracted sales for the year were approximately RMB 22,160 million, indicating a year-on-year decrease of approximately 38.6%[40]. - The average selling price (ASP) of contracted sales was approximately RMB 18,544 per sq.m., which is a year-on-year increase of approximately 1.4%[40]. - The gross floor area of completed housing increased by 17.0% to 998.31 million sq.m.[32]. - The total recognized GFA for property sales was approximately 1,320,337 sq.m., an increase of approximately 24.3% compared to the previous year[45]. - Revenue from property sales increased by approximately 12.9% year-on-year to approximately RMB 23,976.2 million, accounting for approximately 97.8% of total revenue[74]. Market Environment and Challenges - The real estate market in China faced challenges in 2023, including negative population growth and tightened liquidity, leading to a complex industry environment[12]. - The national real estate development investment decreased by 9.6% year-on-year, amounting to RMB 11,091.3 billion[32]. - The sales area of commercial housing fell by 8.5% year-on-year, totaling 1,117.35 million sq.m.[32]. - The Company emphasized the importance of on-time delivery to meet buyer expectations and maintain livelihood stability[13]. Land Reserves and Strategic Focus - By the end of 2023, the Company's land reserve in first- and second-tier cities reached 80% of its portfolio, focusing on high-quality land resources in the Yangtze River Delta region[19]. - The company focused on land reserves in first and second-tier cities, achieving an 80% share of land reserves in these areas by the end of 2023[1]. - As of 31 December 2023, the Group had land reserves amounting to approximately 10,110,017 sq.m., with 134 projects in total[65]. - The total land reserves held by joint ventures and associates amount to 923,777 sq.m., representing 9.1% of the total[180]. Financial Performance and Losses - The Group recorded a net loss of approximately RMB 1,960.3 million for the year, with loss attributable to owners of the Company decreasing by approximately 685.7% year-on-year to approximately RMB 2,188.9 million[73]. - Basic and diluted losses per share for the year ended December 31, 2023, were RMB 0.74, representing a decrease of approximately 628.6% from earnings per share of RMB 0.14 in 2022[105]. - The Group's profit and total comprehensive income decreased significantly, resulting in a loss of approximately RMB 1,960.3 million for the year ended December 31, 2023, compared to a profit of RMB 161.5 million in 2022[104]. - The loss attributable to the owners of the Company increased from approximately RMB 373.7 million for the year ended December 31, 2022, to approximately RMB 2,188.9 million for the year ended December 31, 2023, a decrease of approximately 685.7%[109]. Operational Efficiency and Cost Management - The Group aims to improve the efficiency in the development and operation of its investment properties to ensure stable rental income growth[66]. - Selling and marketing expenses rose by approximately 22.73% year-on-year, increasing from RMB 689.2 million in 2022 to RMB 845.8 million in 2023, driven by higher capitalized sales and selling expenses[89][92]. - Administrative expenses increased by approximately 21.2% year-on-year, from RMB 870.5 million in 2022 to RMB 1,054.8 million in 2023, largely due to provisions for impairment of inventories and receivables[93][98]. - Finance costs surged by approximately 260.2% year-on-year, rising from RMB 97.9 million in 2022 to RMB 352.5 million in 2023, primarily due to increased costs related to non-controlling interests and decreased income from bank deposits[94][99]. Employee and Organizational Changes - The Group's total employee count decreased to 1,273 as of December 31, 2023, down from 1,561 in the previous year[167]. - Total expenditure on employee salaries and welfare for the year ended December 31, 2023, was approximately RMB423.2 million, a decrease from approximately RMB713.2 million in 2022[167]. - The Group has implemented a performance-based remuneration system to enhance employee engagement and motivation[169]. - The Group's organizational structure is being optimized to empower base-level employees and improve overall efficiency[168]. Future Development and Expansion Plans - The Group plans to continue investing in property development projects and acquiring suitable land parcels, funded by internal resources and external borrowings[163]. - The Yangtze River Delta Region, which accounts for about one-fourth of China's GDP, remains a key focus for the Group's expansion efforts[173]. - The Group aims to maintain high-efficiency operations and outperform market-level sales growth and cash collection rates[173]. - The Group continues to focus on high-quality product development and service enhancement to create value for customers[175]. Project Development and Portfolio - The company has completed multiple projects in Hangzhou, including the Sky City Complex and Elegant Mansion, with a focus on residential and commercial use[186]. - The company is currently developing the Douhuiqiantang project in Hangzhou, which will serve both residential and commercial purposes[187]. - The company has a significant number of completed projects in Huzhou and Nanjing, focusing on residential and commercial developments[186]. - The company is actively pursuing new strategies for market expansion through the development of innovative projects and partnerships in key cities[188].
德信中国(02019) - 2023 - 年度财报