Financial Performance - In 2024, the Group's revenue reached approximately RMB 4,104 million, a year-on-year increase of approximately 216.3%[12] - Gross profit for the year was approximately RMB 2,059 million, representing a year-on-year increase of approximately 459.4%[12] - Profit attributable to owners of the parent was approximately RMB 504 million, an increase of approximately 224.7% compared to a loss of approximately RMB 404 million in 2023[12] - For FY2024, the Group's consolidated revenue was approximately RMB4,103.8 million, representing a year-on-year increase of 216.3%[59] - Gross profit for FY2024 was approximately RMB2,059.2 million, reflecting a year-on-year increase of 459.4%, with a gross profit margin of approximately 50.2%, up by 21.8 percentage points compared to FY2023[59] - The turnaround from loss to profit in FY2024 was primarily due to revenue recognized from the International Office Centre (IOC) project, which demonstrated strong sales performance[60] - The profit attributable to the Group for FY2024 was approximately RMB 485,768,000, compared to a net loss of approximately RMB 425,133,000 for FY2023, driven by revenue from commercial property projects[96] Market Conditions - The real estate market in China showed a downward trend, but policy support increased significantly in 2024, leading to a temporary stabilization in the fourth quarter[16][17] - A series of government policies were introduced to stabilize the real estate market, including relaxed purchase restrictions and reduced mortgage rates[17] - The 2024 government work report emphasizes risk mitigation, adherence to baselines, and market stabilization, which supports the real estate sector's growth trajectory[64] Business Strategy - The Group deepened its "4+X" business layout, focusing on commercial property development, commercial operations, hotel management, and industrial investment[19] - The Group is well-prepared for future market recovery, maintaining a stable operating trend despite market pressures[19] - The Group's strategic focus includes the development of cultural tourism and low-altitude economy segments, which have become highlights of the year[35] - The Group is focusing on four major business segments: industrial property development, commercial operations, hotel management, and industrial investment, while diversifying into emerging industries[58] - The Group aims to enhance asset return and operational efficiency through digital technology and organizational optimization[46] - The Group's light-asset model is expected to drive scale expansion and optimize the business chain[46] Sales and Customer Engagement - For the year ended December 31, 2024, the Group recorded contracted sales amount of approximately RMB1,313 million, with a contracted sales area of approximately 69,727 sq.m. and an average price of contracted sales area of approximately RMB18,824 per sq.m.[22] - The annual customer flow exceeded 15 million, with Xiaoshan Zhong An Plaza's customer flow increasing by approximately 39% year-on-year and the Yuyao project increasing by approximately 11% year-on-year[23] - The Group's membership system saw an addition of 81,786 new members during the year, representing a year-on-year increase of approximately 78.4%[23] - Customer satisfaction is emphasized as a critical factor affecting profitability, with a dedicated sales team engaging with customers to understand their needs[129] Hotel Management - The hotel management segment recorded a revenue of approximately RMB225 million in 2024, representing a year-on-year decrease of approximately 12.9%, with an occupancy rate of approximately 63% and an average room price of RMB441[27] - Ningbo Bright Hotel achieved record highs in total revenue and operating profit, with an operating profit margin increasing to approximately 37%[27] - The Group added 4 new entrusted management projects in the hotel segment, forming a diversified product matrix covering high-end business hotels, resort hotels, and theme hotels[28] - The hotel operation revenue for FY2024 was approximately RMB224,586,000, a decrease of 12.9% from FY2023, with an occupancy rate dropping to approximately 63%[81] Cultural Tourism - The cultural tourism segment achieved over 100% investment attraction targets for projects like Dongsha Ancient Fishing Town and Shanlian Old Street, establishing a benchmark position in historical and cultural street operations in Eastern China[37] - The cultural tourism segment achieved an impressive annual customer flow of over 4 million, resulting in record revenue[41][42][45] Corporate Governance - The Board does not recommend the payment of any final dividend for FY2024, consistent with FY2023[132] - The Group aims to enhance corporate governance and management standards through effective cost management, risk management, and sustainable environmental practices[124] - The Group's corporate governance practices comply with the applicable code provisions contained in the Corporate Governance Code[140] - The roles of chairperson and chief executive officer were separated, with Mr. Shi Zhongan as chairperson and Mr. Shi Nanlu as chief executive officer, ensuring better corporate governance[159] Operational Efficiency - The Group optimized its debt structure and reduced financing costs to ensure a stable capital chain during market downturns[19] - The Group's operational strategy includes continuous cost reduction and investment return enhancement[46] - Selling and distribution expenses decreased to approximately RMB 147,582,000 for FY2024, representing a reduction of approximately RMB 24,397,000 or 14.2% compared to FY2023, attributed to effective cost control measures[92] - Administrative expenses for FY2024 were approximately RMB 120,407,000, a decrease of approximately RMB 50,200,000 or 29.4% compared to FY2023, also due to cost reduction strategies[93] Land and Property Development - The Group's land reserves totaled approximately 3,690,924 sq.m. as of December 31, 2024[49] - The International Office Center in Hangzhou has a gross floor area of 1,098,065 sq.m., indicating significant investment in commercial real estate[52] - The International Office Centre (IOC) project has a planned total GFA of approximately 798,795 sq.m., with construction ongoing in three phases[70] - The Long Ying Hui Jin Zuo project in Hangzhou has a total GFA of approximately 44,867 sq.m. and is expected to be completed in 2024, with pre-sales meeting expectations[71] - The Fashion Color City project in Hangzhou has a total GFA of approximately 78,261 sq.m. and was completed in 2023, with substantial sales achieved[69] Employee and Management - The Group employed 1,232 employees as of December 31, 2024, down from 1,256 employees as of December 31, 2023[123] - The Company emphasizes a governance structure that supports stability and prudent management, aligning with its operational activities and future development[146]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of RMB 4,103,756, representing a 216.3% increase compared to RMB 1,297,235 in 2023[3] - Gross profit for the same period was RMB 2,059,209, a significant increase of 459.4% from RMB 368,097 in 2023[3] - The company achieved a net profit of RMB 485,768, recovering from a loss of RMB 425,133 in the previous year, marking a 214.3% improvement[3] - Earnings per share (EPS) for the year was RMB 25.1 cents, compared to a loss of RMB 20.1 cents per share in 2023[3] - The company reported a total comprehensive income of RMB 500,471, recovering from a loss of RMB 470,056 in 2023[6] - The pre-tax profit for 2024 was RMB 1,130,382,000, compared to a loss of RMB 476,667,000 in 2023, indicating a significant turnaround[35] - The total tax expense for the year was RMB 644,614,000, compared to a tax benefit of RMB 51,534,000 in 2023[35] - Basic earnings per share for 2024 were RMB 0.25, recovering from a loss of RMB 0.20 per share in 2023[36][37] Assets and Liabilities - Total assets decreased slightly by 1.1% to RMB 13,385,727 from RMB 13,533,007 in 2023[3] - Net assets increased by 10.4% to RMB 5,342,134, up from RMB 4,840,839 in the previous year[3] - The company reported a total liability of RMB 8,043,593,000 as of December 31, 2024, down from RMB 8,692,168,000 in 2023, showing a reduction of about 7%[21][22] - Current liabilities decreased to RMB 5,055,477 from RMB 5,332,192 in the previous year, indicating improved liquidity[8] - Trade receivables at the end of 2024 amounted to RMB 61,081,000, down from RMB 70,013,000 in 2023, reflecting a decrease of about 12.8%[40] - Trade payables increased significantly to RMB 1,543,308,000 in 2024 from RMB 575,018,000 in 2023, an increase of approximately 168.3%[41] Revenue Segments - The group operates four reportable segments: commercial property development, property leasing, hotel operations, and other businesses[20] - The company reported a segment profit of RMB 1,776,220,000 in commercial property development for 2024, while the hotel operations segment incurred a loss of RMB 31,514,000[21] - Revenue from external customers in mainland China was RMB 4,103,008,000 for 2024, compared to RMB 1,281,033,000 in 2023, indicating a growth of about 220%[23] - The revenue from investment property operating leases increased to RMB 122,274,000 in 2024 from RMB 110,712,000 in 2023, reflecting a growth of approximately 10%[25] - Hotel operations recorded revenue of approximately RMB 224.6 million in FY2024, a decrease of about 12.9% due to a decline in hotel occupancy rates to approximately 63%[56] Cash Flow and Expenditures - The company’s cash and cash equivalents rose significantly to RMB 838,999 from RMB 181,155 in 2023[7] - Capital expenditures for the year were RMB 44,990,000, compared to RMB 70,899,000 in the previous year, reflecting a decrease of about 37%[21][27] - The group’s cash and cash equivalents totaled approximately RMB 886,087,000 as of December 31, 2024, compared to RMB 384,164,000 as of December 31, 2023[68] Market Position and Strategy - The company is primarily engaged in commercial property development, leasing, and hotel operations, with a focus on expanding its market presence[10] - The group has been recognized as one of the top ten commercial real estate operators in China, reflecting its strong market position[46] - The Chinese government's policies are expected to stabilize the real estate market, providing a more favorable financing environment for private and mixed-ownership real estate companies[48] - The group plans to continue its prudent management approach while exploring new development models to adapt to market changes[49] Corporate Governance and Compliance - The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), with all values reported in Renminbi (RMB) and adjusted to the nearest thousand units[11] - The consolidated financial statements include the financial statements of the company and its subsidiaries for the year ending December 31, 2024[12] - The group has adopted new and revised IFRS standards for the current year's financial statements, which have not had a significant financial impact[14] - The audit committee, composed entirely of independent non-executive directors, has reviewed the consolidated annual results for the fiscal year 2024[81] - The financial figures for the fiscal year 2024 have been agreed upon by the company's auditor, Ernst & Young, and are consistent with the consolidated financial statements[80] Employee and Stakeholder Relations - The company has implemented effective marketing strategies and plans to enhance product and service quality to strengthen its brand[75] - The company emphasizes investor relations management through various communication methods to convey its business strategies and operational status to stakeholders[75] - The company has adopted an employee stock option plan to incentivize and reward qualified participants contributing to its successful operations[76] - The group employed 1,232 staff as of December 31, 2024, a decrease from 1,256 staff as of December 31, 2023[74] Dividends and Shareholder Information - The group has no proposed final dividend for the year ending December 31, 2024, consistent with 2023[38] - The company will not recommend any final dividend for the fiscal year 2024, consistent with the previous fiscal year[79] - The company will hold its annual general meeting on June 5, 2025, with relevant notices to be published on its website and the stock exchange[85]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容產生或因依賴該等 內容而引致的任何損失承擔任何責任。 China New City Group Limited 中國新城市集團有限公 司 （於開曼群島註冊成立之有限公司） （股份代號：1321） 截至2024年6月30日止六個月之中期業績公告 | --- | --- | --- | --- | |--------------------------------|-------------------------------------------------|------------------------------------------------|--------| | | | | | | 財務摘要 | | | | | | 截至 6 月 2024 年 人民幣千元 | 30 日止六個月 2023 年 人民幣千元 | 變動 | | 收入 | （未經審核） 2,921,774 | （未經審核） 818,559 | 256.9% | | 毛利 | 1,579 ...

Financial Performance - The Group recorded a revenue of approximately RMB1,297 million, representing a year-on-year increase of approximately 119.2%[71]. - Gross profit for the year was approximately RMB368 million, reflecting a year-on-year increase of approximately 213.6%[71]. - Loss attributable to owners of the Company was approximately RMB404 million, an increase of approximately 6.6% compared to 2022[71]. - Total equity of the Group reached approximately RMB4,841 million by the end of 2023[71]. - The carrying amount of cash as of the end of 2023 was approximately RMB384 million[71]. - Loss per share attributable to ordinary equity holders of the parent was approximately RMB20.1 cents[71]. - The Board does not recommend the payment of any final dividend for the year under review[71]. - The Group recorded a revenue of approximately RMB258 million in 2023, representing a year-on-year increase of approximately 16.7%[143]. - The hotel occupancy rate was approximately 70% in 2023, an increase of 14% compared to 2022[143]. - The average price of a guest room increased from RMB463 per room in 2022 to RMB479 per room in 2023, representing a year-on-year increase of 3.5%[143]. Corporate Governance - The Group's internal control systems were reviewed, covering financial, operational, compliance controls, and risk management functions, with no major issues identified[1]. - The Group has established procedures for handling inside information, ensuring compliance with disclosure requirements under the Listing Rules[4]. - The Group has implemented a fair disclosure policy to ensure broad distribution of information to the public[4]. - The Group's corporate governance report outlines compliance with regulatory requirements and best practices in management[25]. - The Company has implemented a liability insurance policy for directors and senior management to cover legal actions arising from their duties[23]. - The Company emphasizes continuous professional development for all directors to enhance their knowledge and skills in corporate governance[30]. - The board reviewed the effectiveness of the shareholders' communication policy, deeming it adequate for the year ended December 31, 2023[119]. - The company aims to provide clear and timely compliance information to investors and analysts for informed investment decisions[111]. - The company emphasizes the importance of feedback from shareholders and investors through established communication channels[119]. Management and Leadership - The Company Secretary, Mr. Lin Caihe, was appointed effective September 15, 2023, to fill a casual vacancy[8]. - The Company appointed Mr. Jin Jianrong as an executive director on May 5, 2023, while Mr. Liu Bo resigned on the same date[42]. - The executive director and CEO has been with the company since April 3, 2020, focusing on daily operations and strategic investments[126]. - The newly appointed executive director as of May 5, 2023, has over 35 years of experience in the property and construction industry[127]. - The chairperson of the board has over 30 years of experience in property development and investment[135]. Strategic Initiatives - The Group plans to focus on community commercial complexes and improve operational efficiency in 2024, collaborating closely with local governments on future community projects in Zhejiang Province[92]. - The Group aims to expand its business layout and explore growth opportunities, establishing a commercial product system centered on personalized theme business and self-operated brand management[91]. - The Group's diversified business segments, including commerce, hotels, and cultural tourism, are beginning to thrive, with plans to expand into urban renewal and rural revitalization[81]. - The Group intends to explore opportunities in the prepared dishes segment to foster new business growth[144]. - The Group's vision is to become a business operator that "creates new and better living" through the expansion and optimization of its business chain[150]. Market and Industry Trends - The overall real estate market in China showed a trend of "high from the beginning, low in the middle and stable at the end" during 2023, impacting buyer sentiment and market performance[79]. - The Group's strategic vision focuses on integrating commercial development and operation across various industries, enhancing its market position in the Yangtze River Delta Region[175]. - The Group has a significant land bank with multiple projects in various stages of development, indicating strong future growth potential[168][172]. Audit and Compliance - The audit fee for the Group for the year ended December 31, 2023, was RMB1,680,000, consistent with the previous year[18]. - The independent auditor also reviewed the interim results of the Company for a fee of RMB420,000, unchanged from 2022[18]. - The Group's internal audit department is responsible for providing internal control assessment reports to the Audit Committee and the Board[2]. - The Board and Audit Committee believe that the key areas of the Group's internal control systems are reasonably implemented[1]. Investor Relations - The Company’s website provides additional information and updates for investors, enhancing transparency and communication[38]. - The investor relations plan for 2024 includes multiple activities to enhance investor understanding of the group[116]. - The company plans to enhance communication with investors in 2024, including field trips and non-deal roadshows[112]. - The annual general meeting was held on June 8, 2023, where all ordinary resolutions were passed by poll[110].

Financial Performance - Revenue for the year ended December 31, 2023, reached RMB 1,297,235 thousand, representing a 119.2% increase compared to RMB 591,783 thousand in 2022[2] - Gross profit for the same period was RMB 368,097 thousand, a significant increase of 213.6% from RMB 117,373 thousand in the previous year[2] - The net loss for the year narrowed to RMB 425,133 thousand, a decrease of 7.9% from RMB 461,640 thousand in 2022[2] - For the year ended December 31, 2023, total revenue reached RMB 1,297,235 thousand, a significant increase from RMB 591,783 thousand in 2022, representing a growth of approximately 119%[43] - The company reported a pre-tax loss of RMB 476,667 thousand for the year ended December 31, 2023, compared to a pre-tax loss of RMB 477,514 thousand in 2022, showing a slight improvement[43] - The company reported a pre-tax loss of RMB 476,667,000 for 2023, slightly improved from a loss of RMB 477,514,000 in 2022[70] - The net loss for fiscal year 2023 was approximately RMB 425,133,000, a slight improvement from a net loss of RMB 461,640,000 in fiscal year 2022[109] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 13,533,007 thousand, down 10.8% from RMB 15,179,776 thousand in 2022[2] - Net assets decreased by 8.8% to RMB 4,840,839 thousand from RMB 5,307,909 thousand in the previous year[2] - The company’s total liabilities were RMB 8,692,168 thousand as of December 31, 2023, compared to RMB 9,871,867 thousand in 2022, reflecting a reduction of approximately 12%[43] - The company experienced a decrease in cash and cash equivalents, totaling RMB 1,276,276 thousand, down from RMB 919,543 thousand in the previous year[22] - The company’s total liabilities decreased to RMB 5,332,192 thousand from RMB 6,228,366 thousand, indicating a reduction of 14.4%[22] - The group’s total bank loans and other borrowings were approximately RMB 3,119,040,000 as of December 31, 2023, compared to RMB 4,008,479,000 as of December 31, 2022[114] - The current ratio as of December 31, 2023, was 0.84, down from 0.93 on December 31, 2022[113] - The debt-to-capital ratio was 46% as of December 31, 2023, compared to 44% as of December 31, 2022[113] Equity and Shareholder Information - The total equity of the group was reported at RMB 4,840,839,000[29] - Basic and diluted loss per share for the year was RMB (20.1) cents, compared to RMB (21.5) cents in 2022[2] - The company reported a basic loss attributable to ordinary shareholders of RMB 404,136,000 for 2023, compared to a loss of RMB 432,523,000 in 2022, indicating a reduction in losses[73] - The group did not recommend a final dividend for the year ending December 31, 2023, consistent with 2022[74] - The group did not recommend any final dividend for the fiscal year 2023, consistent with the previous fiscal year[128] Operational Segments - The group primarily engages in commercial property development, leasing, and hotel operations[31] - The group has established four reportable operating segments: commercial property development, property leasing, hotel operations, and other[40] - The company’s segment performance showed a loss of RMB 378,566 thousand for the year ended December 31, 2023, compared to a loss of RMB 372,141 thousand in 2022[43] - The company’s revenue from property leasing increased to RMB 110,712 thousand in 2023 from RMB 101,528 thousand in 2022, marking a growth of approximately 9%[54] - Hotel operation services generated revenue of RMB 221,657,000 in 2023, while property sales contributed RMB 137,416,000, reflecting a diversified revenue stream[55] Cash Flow and Financial Management - The company believes it has sufficient operating cash flow for the foreseeable future, supporting the going concern basis of the financial statements[26] - The company has adopted a prudent treasury policy, primarily managing cash in short-term deposits, mostly in RMB[116] - The company recognized impairment losses of RMB 21,280 thousand during the year, compared to RMB 47,661 thousand in 2022, indicating a reduction in impairment losses[45] - Financial expenses decreased to RMB 226,446,000 in 2023 from RMB 297,908,000 in 2022, showing effective cost management[59] - The impairment provision for property and equipment was RMB 1,653,000 in 2023, down from RMB 12,867,000 in 2022, indicating improved asset performance[57] Future Outlook and Strategy - The company is committed to advancing urban renewal projects and exploring new development models in the stock market to adapt to market changes[87] - The group plans to enhance investor relations management through various communication strategies to maximize shareholder value[121] - The group is evaluating the impact of newly issued and revised International Financial Reporting Standards that are not yet effective[37] Employee and Operational Metrics - The group employed 1,256 staff as of December 31, 2023, down from 1,332 staff as of December 31, 2022[119] - The average occupancy rate for rental properties was approximately 86% in fiscal year 2023, consistent with the previous fiscal year[100] Miscellaneous - The financial statements were prepared in accordance with International Financial Reporting Standards, with all values adjusted to the nearest thousand[26] - The company will suspend share registration procedures from June 3, 2024, to June 6, 2024, to determine eligibility for the annual general meeting[136] - The annual performance announcement and annual report for FY2023 will be published on the company's and the stock exchange's websites at an appropriate time[137]

| --- | --- | --- | --- | --- | |--------------------------------------------------------------|-------------------------------|----------------|-------------------------------------------------------------|-----------------------------------------------------| | | | Notes \n附註 | 2023 \n2023 年 \nRMB'000 \n人民幣千元 \n(Unaudited) | 2022 \n2022 年 \nRMB'000 \n人民幣千元 \n(Unaudited) | | | | | （未經審核） | （未經審核） | | Revenue | 收入 | 4 | 818,559 | 257,104 | | Cost of sales | 銷售成本 | | (589,538) | (208,239) | | Gross profit | ...

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 818,559,000, representing a 218.4% increase compared to RMB 257,104,000 in the same period of 2022[28]. - Gross profit for the same period was RMB 229,021,000, a significant increase of 368.7% from RMB 48,865,000 in 2022[28]. - The loss for the period was RMB 71,996,000, which is a 69.8% improvement compared to a loss of RMB 238,516,000 in the prior year[28]. - Loss attributable to equity holders of the parent company was RMB 66,669,000, down 70.2% from RMB 223,724,000 in 2022[28]. - The total operating income for the first half of 2023 was RMB 818,559,000, reflecting an increase from RMB 257,104,000 in the same period of the previous year[42][43]. - The adjusted profit before tax for the company was reported as a loss of RMB 17,113,000 for the first half of 2023[42]. - The total tax expense for the six months ended June 30, 2023, was RMB 54,883,000, compared to a tax benefit of RMB 12,643,000 in the same period of 2022[77]. - The group’s comprehensive income for the period was approximately RMB 818.6 million, an increase of RMB 561.5 million or 218.4% year-on-year[116]. Assets and Liabilities - Total assets as of June 30, 2023, were RMB 14,584,183,000, a decrease of 3.9% from RMB 15,179,776,000 at the end of 2022[28]. - Net assets stood at RMB 5,287,600,000, reflecting a slight decrease of 0.4% from RMB 5,307,909,000[28]. - Total current assets were reported at RMB 5,236,221,000, down from RMB 5,788,792,000 in the previous period[34]. - Total liabilities decreased to RMB 5,568,703,000 from RMB 6,228,366,000, indicating a reduction of approximately 10.6%[34]. - Total liabilities as of June 30, 2023, were RMB 9,296,583 thousand, down from RMB 9,871,867 thousand at the end of 2022[44]. - The group’s bank borrowings and other borrowings were approximately RMB 3,090,080,000, down from approximately RMB 4,008,479,000 as of December 31, 2022[127]. - The group had contingent liabilities of approximately RMB 440,950,000 as of June 30, 2023, compared to approximately RMB 406,830,000 as of December 31, 2022[128]. Revenue Segments - Revenue from the commercial property development segment was RMB 565,273,000, while the property leasing segment generated RMB 60,582,000 for the six months ended June 30, 2023[42]. - Hotel operations generated revenue of RMB 99,847 thousand for the six months ended June 30, 2023, compared to RMB 99,847 thousand for the same period in 2022, indicating stable performance[50]. - Customer contract revenue for the six months ended June 30, 2023, was RMB 757,977,000, a significant increase from RMB 226,812,000 for the same period in 2022, representing a growth of approximately 234%[72]. - Revenue from investment property leasing for the six months ended June 30, 2023, was RMB 60,582,000, compared to RMB 30,292,000 in the same period of 2022, marking a growth of about 100%[72]. - Property sales revenue increased to approximately RMB 565.3 million, up by RMB 492.9 million or 681.7% year-on-year[95]. - Rental income from leasing activities was approximately RMB 60.6 million, an increase of RMB 30.3 million compared to RMB 30.3 million in the same period last year[114]. Operational Insights - The company operates in commercial property development, leasing, and hotel operations, indicating a focus on expanding its business segments[17]. - The company is actively monitoring the performance of its operating segments to make informed resource allocation decisions[40]. - The company aims to maintain a prudent operational approach amidst low market confidence and is focused on enhancing operational efficiency for high-quality development[62]. - The overall performance of the Chinese real estate market showed a decline in buyer sentiment in the second quarter of 2023, impacting the company's sales capabilities and land market activity[84]. - The company confirmed sales amounting to RMB 565,273,000 for properties sold and delivered during the six months ended June 30, 2023, compared to RMB 72,312,000 for the same period in 2022, representing an increase of approximately 684%[91]. - The average occupancy rate for hotels reached 67%, compared to 45% in the same period last year[114]. Financial Management - The company continues to receive ongoing financial support from its parent group to manage its liabilities[19]. - The company continues to explore market expansion opportunities while adhering to its strategic focus on resource management and financial stability[62]. - The group plans to enhance its management level and corporate governance by developing new policies and systems for effective cost management and risk management[153]. - Financial expenses decreased to approximately RMB 47.2 million, a reduction of RMB 40.5 million or 46.2% compared to the same period last year[100]. - Administrative expenses for the period were approximately RMB 92,725,000, a slight decrease of about RMB 1,755,000 or 1.9% compared to the same period in 2022[121]. Staffing and Governance - The group employed 1,433 staff as of June 30, 2023, an increase from 1,332 staff as of December 31, 2022[152]. - The audit committee, composed entirely of independent non-executive directors, reviewed the unaudited consolidated interim results for the period[158]. - The company has adopted a code of conduct for directors regarding securities trading, which meets or exceeds the standards set out in the listing rules[161]. - The company emphasizes the importance of environmental awareness among employees and collaborates with suppliers and contractors to prevent pollution and reduce waste[156].

Economic Challenges - In 2022, the Group faced challenges due to COVID-19, the Russia-Ukraine conflict, global stagflation, and U.S. dollar interest rate hikes, leading to a weakening economy before a rebound[15]. - Infrastructure and real estate investment remained sluggish, with consumption continuing to be weak throughout the year[15]. - The Group's financial performance for the year ended December 31, 2022, reflects the impact of these macroeconomic challenges[10]. - The real estate market is expected to recover slowly, as it will take time for buyer confidence to rebuild despite the supportive policies[21]. - The Group expects continued support policies for China's real estate industry in 2023, aimed at stabilizing market development and ensuring building delivery[94]. - The real estate market is expected to recover slowly due to the time required for policy effects to translate into sales and for buyer confidence to rebuild[96]. Government Policies and Support - The Chinese government introduced a series of policies to stabilize the economy, focusing on both demand and supply sides, which included special loans for guaranteed delivery of buildings[20]. - The central government has increased financing support for private real estate companies, indicating a potential shift in market dynamics[20]. - The Chinese government has increased financing support for private real estate companies, which may positively impact the market recovery[22]. Financial Performance - In 2022, the Group's revenue was approximately RMB 591,783,000, representing a year-on-year decrease of approximately 32.1%[51]. - The gross profit for the year was approximately RMB 117,373,000, reflecting a year-on-year decrease of approximately 45.8%[51]. - The net loss attributable to owners of the Company was approximately RMB 432,523,000[51]. - As of the end of 2022, the total equity of the Group was approximately RMB 5,307,909,000, a decrease of approximately 7.4% from the end of 2021[51]. - The cash balance at the end of 2022 was approximately RMB 1,180,239,000[51]. - Contracted sales revenue for 2022 was approximately RMB 1,517,400,000, down from approximately RMB 2,650,800,000 in 2021, representing a decrease of approximately 42.7%[118]. - The recognized sales of properties sold and delivered in 2022 was approximately RMB 137,416,000, compared to approximately RMB 410,180,000 in 2021, a decrease of approximately 66.5%[112]. - The total area of contracted sales for 2022 was approximately 92,353 sq.m., down from approximately 105,453 sq.m. in 2021, a decrease of approximately 12.5%[118]. Strategic Focus and Development - The Group is focused on leveraging its business advantages to recover as quickly as possible during the ongoing economic challenges[21]. - The Group's strategy includes ensuring financial safety while navigating the complex market environment[21]. - The Group plans to explore a three-party management model with international brands to enter the trillion-dollar prefabricated market, aiming to enhance brand value[39]. - The Group is actively expanding into emerging industries, including industrial services and digital health, to achieve horizontal integration of high-quality resources[46]. - The three-year strategic plan aims to achieve a new level of development across various industries by 2025, focusing on urbanization and resource integration[53]. - The company will concentrate on in-depth development in Hangzhou while exploring external expansion opportunities[60]. Project and Operational Highlights - The commercial operation segment achieved growth in 2022, including the theme of commercial Zhong An Square Future Community and the digital system[32]. - Zhong An Square was awarded "2022 Top 10 Commercial Property Project in China in Terms of Brand Value," highlighting the brand's recognition in the industry[34]. - The hotel segment implemented lean management focusing on cost reduction, quality improvement, and efficiency increase, achieving growth in key core indicators despite market challenges[35]. - Major projects such as the International Office Centre and Fashion Color City are expected to be completed in 2023, with pre-sales volumes meeting expectations[102][103]. - The construction of Commercial Phase II in Cixi New City, with a total GFA of about 72,000 sq.m., is expected to be completed in 2023[110]. Management and Governance - Mr. Shi Nanlu has been the executive director and CEO since April 3, 2020, responsible for daily operations and strategic investments[121]. - Mr. Liu Bo has served as the executive director and vice president since April 3, 2020, overseeing overall daily operations and corporate governance[122]. - The company has a strong management team with extensive experience in financial management and investment, enhancing its operational capabilities[121][122][132]. - The Group aims to implement effective corporate governance practices to ensure proper functioning of the Board[122]. - The management team has a diverse background in finance, investment, and corporate governance, contributing to the company's strategic direction[121][122][132]. - The Group is committed to maintaining high standards of corporate governance and effective management practices[122]. Risks and Uncertainties - The company has outlined its major risks and uncertainties in the annual report, emphasizing the importance of risk management strategies[196]. - The Group's principal risks and uncertainties are discussed in the "Corporate Governance Report" section of the annual report[152].

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 591,783,000, a decrease of 32.1% compared to RMB 871,066,000 in 2021[2] - Gross loss for the year was RMB (461,640,000), compared to a gross loss of RMB (302,815,000) in the previous year, representing an increase of 52.4%[2] - Loss attributable to equity holders of the parent company for the year was RMB (432,523,000), up 46.6% from RMB (295,136,000) in 2021[2] - Basic and diluted loss per share for the year was RMB (21.5 cents), compared to RMB (14.7 cents) in 2021[2] - The company reported a total comprehensive loss for the year of RMB (461,640,000), compared to RMB (302,815,000) in the previous year[8] - The company reported a pre-tax loss of RMB 477,514 thousand for the year ended December 31, 2022, compared to a pre-tax loss of RMB 277,024 thousand in 2021[38] - The company reported a total tax expense of RMB (15,874,000) for 2022, compared to RMB 25,791,000 in 2021[64] - The company incurred impairment losses recognized in the income statement amounting to RMB 47,661 thousand for the year ended December 31, 2022[38] - The company recognized a loss of RMB 23,683,000 from the sale of investment properties in 2022, compared to a loss of RMB 3,977,000 in 2021[58] - The company incurred a total of RMB 83,522,000 in other expenses in 2022, a decrease from RMB 151,826,000 in 2021[48] Assets and Liabilities - Total assets as of December 31, 2022, were RMB 15,179,776,000, a decrease of 2.1% from RMB 15,504,840,000 in 2021[2] - Net assets as of December 31, 2022, were RMB 5,307,909,000, down 7.4% from RMB 5,733,595,000 in 2021[2] - The group's net current liabilities as of December 31, 2022, were approximately RMB (439,574,000)[14] - Total liabilities increased to RMB 9,871,867 thousand in 2022 from RMB 9,771,245 thousand in 2021[38] - Non-current liabilities decreased from RMB 4,111,796,000 in 2021 to RMB 3,643,501,000 in 2022, representing a reduction of approximately 11.4%[21] - Interest-bearing bank and other borrowings decreased from RMB 3,107,940,000 in 2021 to RMB 2,689,041,000 in 2022, a decline of about 13.5%[21] - The group's bank borrowings and other borrowings amounted to approximately RMB 4,008,479,000 as of December 31, 2022, down from RMB 4,635,250,000 as of December 31, 2021[113] - The group had contingent liabilities of approximately RMB 406,830,000 as of December 31, 2022, compared to RMB 316,410,000 in 2021, mainly related to guarantees provided for mortgage loans to property buyers[121] Revenue Breakdown - Revenue from commercial property development was RMB 137,416 thousand, while hotel operations generated RMB 221,657 thousand, and other services contributed RMB 131,182 thousand[40] - Revenue from external customers in mainland China was RMB 543,767 thousand in 2022, down from RMB 836,569 thousand in 2021, indicating a decline of approximately 35%[43] - The company reported a total of RMB 490,255 thousand in customer contract revenue for 2022, down from RMB 748,784 thousand in 2021[46] - Property sales contributed RMB 410,180,000 to total revenue, while hotel operations generated RMB 173,177,000 and other services accounted for RMB 165,427,000[47] - Hotel operations recorded revenue of approximately RMB 221.7 million, an increase of 28.0% from RMB 173.2 million in 2021, with an occupancy rate of about 56%[96] - Total rental income for the year was approximately RMB 101.5 million, a decrease of about RMB 20.8 million from RMB 122.3 million in 2021, with an average occupancy rate of approximately 86%[97] Operational Highlights - The company operates four reportable segments: commercial property development, property leasing, hotel operations, and other businesses[32] - The company completed the sale of its property management business for a total consideration of RMB 104,650,000 (approximately HKD 125,580,000) in April 2021[32] - The group's total land reserve for development and/or sale was approximately 3,947,292 square meters as of December 31, 2022[98] - The confirmed sales amount for properties sold and delivered for the year ended December 31, 2022, was approximately RMB 137.4 million, a decrease of 66.5% compared to RMB 410.2 million in 2021[92] - The total contracted sales area for the year was approximately 92,353 square meters, with contracted sales revenue of approximately RMB 1,517.4 million, down from RMB 2,650.8 million in 2021[95] Governance and Compliance - The financial statements are prepared in accordance with International Financial Reporting Standards, ensuring compliance with relevant accounting policies[24] - The company has adopted revised International Financial Reporting Standards for the first time in the current financial year, with no significant financial impact identified[28] - The company is evaluating the impact of newly issued and revised International Financial Reporting Standards, with no major effects anticipated on its financial performance and position[30] - The company will hold its Annual General Meeting on June 8, 2023, with the notice published on its website and the Stock Exchange's website[131] - The financial figures for the year ended December 31, 2022, have been agreed upon by the auditor, Ernst & Young, and are consistent with the consolidated financial statements[132] - The Audit Committee, composed entirely of independent non-executive directors, has reviewed the annual results and discussed accounting standards and internal controls with management[133] - The board has adopted the Corporate Governance Code and has confirmed compliance with its provisions throughout the year[137] Staffing and Future Plans - The group employed 1,332 staff as of December 31, 2022, down from 1,630 in 2021[123] - The group plans to focus on identifying acquisition projects with future development and profitability potential to enhance asset returns[124] - The company anticipates the completion of a major project in Hangzhou in 2023, which includes various residential and commercial units[82]

Property Holdings and Development - As of June 30, 2022, the total Gross Floor Area (GFA) of land reserves was approximately 4,030,188 sq.m.[34] - The company holds major investment properties including Guomao Building (12,225 sq.m.), Hidden Dragon Bay (17,814 sq.m.), and Highlong Plaza (63,888 sq.m.) in Hangzhou, Zhejiang Province[35] - The total GFA of the investment properties listed amounts to 217,000 sq.m.[35] - The company is actively involved in the development and sales of major properties, although specific figures for these projects are not detailed in the provided content[36] - The company has a diversified portfolio of integrated commercial complexes, indicating a focus on mixed-use developments[35] - The total gross floor area (GFA) of the Fashion Color City project in Hangzhou is approximately 78,261 sq.m., with construction commencing in Q3 2020 and expected completion in 2022[50] - The International Office Center (IOC) in Hangzhou has a planned total GFA of 798,795 sq.m., with pre-sales starting in Q3 2020 and expected completion in 2022[51] - The Beigan Project, located in Xiaoshan District, has a total GFA of approximately 44,867 sq.m., with construction starting in Q4 2021 and expected pre-sale in Q2 2022[52] - The Cixi New City project includes a Commercial Phase I with a GFA of about 28,158 sq.m., completed in 2021, and a Commercial Phase II with a GFA of about 72,000 sq.m., expected to be completed in 2023[57] - The total area of the International Office Center (Plots B and C) is 1,098,065 sq.m., indicating significant market expansion potential[50] - The Hidden Dragon Bay Resort Hotel project has a total GFA of approximately 241,695 sq.m., showcasing the company's focus on integrated commercial developments[50] Financial Performance - The recognized sales of properties sold and delivered for the six months ended 30 June 2022 were approximately RMB72,312,000, a decline of 76.8% compared to RMB311,024,000 for the same period in 2021[60][72] - The contracted sales revenue for the Group was approximately RMB616,100,000 for the Period, down 46.9% from RMB1,158,900,000 in the same period of 2021[64][65] - The total revenue from leasing business decreased to approximately RMB30,292,000, representing a decline of 49.0% compared to RMB59,471,000 for the same period in 2021[69][74] - The consolidated revenue of the Group amounted to approximately RMB257,104,000, a decrease of 53.0% from RMB547,108,000 in the same period of 2021[71] - The gross profit for the Period was approximately RMB48,865,000, representing a decline of 58.9% compared to the same period in 2021, with a gross profit margin of 19.0%[80] - The revenue from hotel operations increased to approximately RMB99,847,000, a rise of 2.3% compared to RMB97,606,000 in the same period of 2021[66][79] - The average occupancy rate of leasing properties was approximately 75%, down from 85% in the same period of 2021[69][74] - Other income and gains decreased by 78.2% to approximately RMB51,405,000, primarily due to the absence of a gain on disposal of subsidiaries recorded in the previous year[81] - Selling and distribution expenses amounted to approximately RMB66,884,000, a mild decrease of 1.9% compared to the same period in 2021[82] - The group's gross profit for the period was approximately RMB 48,865,000, a decrease of about RMB 69,964,000 or 58.9% compared to the same period in 2021, with a gross margin of 19.0%, down 2.7 percentage points year-on-year[85] - Administrative expenses were approximately RMB 94,480,000, a reduction of about RMB 15,825,000 or 14.3% compared to the same period in 2021, due to staff reductions from new project launches[88] - Finance costs for the period were approximately RMB 87,679,000, a decrease of about RMB 23,567,000 or 21.2% compared to 2021, mainly due to reduced bank loan balances[90] - The loss attributable to the group was approximately RMB 238.5 million for the period, primarily due to a decrease in the fair value of investment properties of approximately RMB 95.6 million[90] - The group's gearing ratio as of June 30, 2022, was 46%, up from 42% as of December 31, 2021, indicating an increase in financial leverage[94] - The company reported a loss for the period of RMB 238,516,000, compared to a loss of RMB 67,741,000 in the previous year, representing a significant increase in losses[122] - Total comprehensive loss for the period amounted to RMB 249,905,000, up from RMB 96,355,000 in the prior period, reflecting a worsening financial performance[127] Market Outlook and Strategy - The company anticipates improved credit conditions in the second half of 2022 due to adjustments in the housing market, which may stabilize real estate investment growth[43] - The management expects the policy environment to support the real estate market's development momentum, indicating a potential recovery in the industry[45] - The company is focused on maintaining a balance between ensuring project completion and improving corporate fund utilization efficiency[44] - The overall trend in the real estate market is likely to continue positively in the second half of 2022, driven by government policies aimed at stabilizing the market[43] - The company is likely to explore market expansion opportunities, particularly in the Zhejiang Province, given its significant property holdings in the region[35] Cash Flow and Liquidity - As of June 30, 2022, the group had cash and cash equivalents totaling approximately RMB 1,321,338,000, down from approximately RMB 1,948,034,000 as of December 31, 2021, with a current ratio of 0.88[90] - Cash and cash equivalents decreased to RMB 1,104,273,000 from RMB 1,603,069,000, indicating a reduction in available liquidity[130] - The net current liabilities stood at RMB (810,416,000), a decline from net current assets of RMB 273,778,000 in the previous period, highlighting liquidity challenges[130] - The company’s equity attributable to owners of the parent decreased to RMB 5,266,432,000 from RMB 5,500,142,000, reflecting a reduction in shareholder value[132] - The company has adopted a prudent treasury policy, primarily holding cash in short-term deposits, mostly in RMB[105] - The Group had net current liabilities of approximately RMB 810,416,000 as of June 30, 2022[149] - Available unutilized credit and banking facilities amounted to RMB 4,646,000,000, expiring after June 30, 2023[149] Employee and Operational Metrics - The group had 1,435 employees as of June 30, 2022, a decrease from 1,630 employees as of December 31, 2021, reflecting adjustments in workforce management[104] - The company experienced a significant increase in contract liabilities, which rose by RMB 378,960,000 in the first half of 2022[140] - The company recorded an increase in properties under development amounting to RMB 840,893,000 in the first half of 2022[140] - The company completed the transfer of its commercial property management business on April 13, 2021, and is no longer engaged in this sector[159][160] - Management continues to monitor segment performance for resource allocation and performance assessment, excluding interest income and finance costs from segment results[161]