Financial Performance - The group's contracted sales amount to approximately RMB 26.28 billion for the six months ended June 30, 2024[2]. - The group's revenue is approximately RMB 34.28 billion, a decrease of about 41.4% compared to the same period last year[2]. - The group's gross loss is approximately RMB 1.81 billion, a reduction of about 41.2% year-on-year[2]. - The loss attributable to the owners of the company is approximately RMB 14.96 billion, a decrease of about 2.7% compared to the same period last year[2]. - The company reported a net loss of approximately RMB 16.67 billion for the six months ended June 30, 2024[15]. - The basic and diluted loss per share attributable to owners is RMB 1.79 for the six months ended June 30, 2024, compared to RMB 2.86 for the same period last year[6]. - The total loss for the reporting segment was RMB 16,665,026 for the six months ended June 30, 2024, compared to RMB 17,066,152 for the same period in 2023, indicating a decrease in loss of approximately 2.4%[23]. - The company's gross loss for the six months ended June 30, 2024, was approximately RMB 1.81 billion, reduced from RMB 3.08 billion in the same period of 2023[53]. - The company's property sales revenue for the same period was approximately RMB 28.08 billion, down about 46.1% from RMB 52.14 billion in the previous year[51]. - The company's selling and marketing expenses decreased by approximately 51.5% to about RMB 1.11 billion from RMB 2.29 billion in the previous year[54]. - The company's administrative expenses decreased to approximately RMB 1.78 billion from RMB 2.55 billion, a reduction of about RMB 770 million[54]. - The company reported a significant increase in interest payable from RMB 23,278,904 to RMB 33,617,738, reflecting an increase of about 44.4%[32]. - The company reported a net impairment loss on property, plant, and equipment of RMB 4,107,338 thousand for the six months ended June 30, 2024[38]. - The company faced foreign exchange losses of approximately RMB 310 million due to fluctuations in market exchange rates during the six months ending June 30, 2024[68]. - Other income for the six months ended June 30, 2024, totaled RMB 2,529,694 thousand, compared to RMB 1,885,839 thousand in the previous year[39]. - Other income and gains for the six months ended June 30, 2024, amounted to approximately RMB 2.53 billion, an increase of about RMB 640 million compared to RMB 1.89 billion for the same period in 2023[55]. - Other expenses and losses for the six months ended June 30, 2024, were approximately RMB 6.40 billion, slightly decreased from RMB 6.42 billion for the same period in 2023[56]. Financial Position - As of June 30, 2024, the group's cash balance is approximately RMB 25.68 billion, with a total cash balance including joint ventures and associates of approximately RMB 53.83 billion[2]. - The total borrowings of the group amount to approximately RMB 277.43 billion as of June 30, 2024[2]. - The group's equity attributable to owners is approximately RMB 47.96 billion as of June 30, 2024[9]. - The group's total assets amount to approximately RMB 961.97 billion as of June 30, 2024[10]. - The group's total liabilities are approximately RMB 895.71 billion as of June 30, 2024[10]. - As of June 30, 2024, the company's current liabilities net amount was approximately RMB 49.23 billion[15]. - The total outstanding borrowings amounted to approximately RMB 106.96 billion, with RMB 57.44 billion potentially subject to early repayment[15]. - The total assets for the property development segment amounted to RMB 790,473,899,000 as of June 30, 2024[21]. - The total liabilities for the property development segment were RMB 776,334,465,000 as of June 30, 2024[21]. - The total assets decreased from RMB 977,854,203 as of December 31, 2023, to RMB 961,969,990 as of June 30, 2024, reflecting a decline of about 1.6%[23]. - The total liabilities increased slightly from RMB 894,068,338 as of December 31, 2023, to RMB 895,711,804 as of June 30, 2024, representing an increase of approximately 0.2%[23]. - The investment in joint ventures decreased from RMB 53,400,856 at the beginning of the period to RMB 50,141,652 at the end of the period, a decline of about 6.3%[25]. - The investment in associates remained relatively stable, with a slight decrease from RMB 15,850,233 to RMB 15,872,961, indicating an increase of approximately 0.1%[26]. - Trade receivables increased from RMB 4,179,618 as of December 31, 2023, to RMB 4,529,505 as of June 30, 2024, reflecting an increase of about 8.4%[27]. - Other receivables rose significantly from RMB 22,292,493 to RMB 31,324,376, marking an increase of approximately 40.6%[27]. - The total prepayments decreased slightly from RMB 15,021,667 as of December 31, 2023, to RMB 14,283,425 as of June 30, 2024, a decline of about 4.9%[31]. - Trade payables increased from RMB 109,523,789 to RMB 111,963,333, representing an increase of approximately 2.2%[32]. - The overdue notes payable as of June 30, 2024, were RMB 24,790,000 thousand[34]. - The total borrowings stood at RMB 277,425,300 thousand, with non-current secured borrowings at RMB 269,354,724 thousand[37]. - The debt-to-capital ratio increased to approximately 79.2% as of June 30, 2024, from 75.2% as of December 31, 2023[65]. - The company had total outstanding borrowings of approximately RMB 1,934.9 billion and RMB 839.3 billion in current and non-current borrowings, respectively[50]. - The company reported that the total unpaid principal of borrowings due was approximately RMB 114.32 billion, which may lead to early repayment demands[50]. Operational Highlights - The company completed the delivery of approximately 58,000 housing units in 52 cities in the first half of 2024, aiming to exceed 170,000 units for the entire year[71]. - The company’s property management segment, Sunac Services, achieved revenue of approximately RMB 3.48 billion, with a stable growth in gross profit[72]. - The company’s tourism and cultural segment generated revenue of approximately RMB 2.48 billion, with the ice and snow segment alone achieving a revenue increase of about 13% year-on-year[72]. - The total area of properties delivered during the period was 2,785,000 square meters, a decrease of approximately 42.2% compared to 4,817,000 square meters in the previous year[51]. - The company has consolidated its decoration services into the property development segment to better reflect its current business strategy[18]. - The company has achieved loan extensions totaling approximately RMB 36.05 billion as of the date of the financial report approval[16]. - The company is actively seeking new financing through various channels, including asset management companies and financial institutions[16]. - The company is committed to fulfilling its responsibilities in ensuring project delivery, responding to government calls for housing completion[16]. - The company is actively communicating with creditors to seek extensions and comprehensive solutions to existing debt issues due to ongoing market downturns[71]. Corporate Governance - The company has established an audit committee to oversee financial reporting and risk management, consisting of four independent non-executive directors[84]. - The interim results for the six months ending June 30, 2024, have been reviewed by an independent auditor[85]. - The interim report will be published on the company's and the stock exchange's websites at an appropriate time[86]. - The board of directors includes executive directors Sun Hongbin, Wang Mengde, Ma Zhixia, Tian Qiang, Huang Shuping, and Sun Zheyi[87]. - The company is led by non-executive director Lin Huaihan and independent non-executive directors Pan Zhaoguo, Zhu Jia, Ma Lishan, and Yuan Zhigang[87]. Debt Restructuring - The company successfully completed a debt restructuring plan effective from November 20, 2023, which involved the issuance of new notes and convertible bonds[16]. - The company is facing significant uncertainties regarding its ability to continue as a going concern due to its financial situation[15]. - The group expects to secure sufficient funding for normal operations over the next 18 months starting from June 30, 2024, to meet financial obligations[17]. - The company has completed a restructuring agreement to acquire 70% equity and debt of a target company for approximately RMB 3.974 billion[79]. - The company has agreed to sell 80% equity of a central business district project for approximately RMB 814 million, with RMB 148 million offset against debts owed[80]. - The company has finalized the sale of a project in Chongqing for a total consideration of RMB 540 million, acquiring 51% equity and related debts[81].
融创中国(01918) - 2024 - 中期业绩