TIAN AN(00028)2025-04-22 09:30Financial Performance - The Group's revenue for the year ended December 31, 2024, was HK$3,012.2 million, an increase of 8% from HK$2,782.1 million in 2023[11]. - The loss attributable to owners of the Company amounted to HK$207.1 million, compared to a profit of HK$1,217.4 million in the previous year[13]. - Loss per share was HK$0.14, down from earnings per share of HK$0.83 in 2023[14]. - The net asset value per share attributable to owners of the Company was HK$18.00 at the end of 2024, compared to HK$18.56 in 2023[14]. - Revenue from sales of completed properties decreased from HK$1,530.1 million in 2023 to HK$520.5 million in 2024 due to no major development projects handed over during the year[15]. - Share of profit from joint ventures decreased from HK$391.2 million in 2023 to HK$145.8 million in 2024[15]. - There was no one-off gain on bargain purchase recorded in 2024, unlike the HK$495.1 million gain in 2023[15]. - The fair value of investment properties held by the Group decreased in 2024, with no one-off increase similar to the HK$207.7 million gain in 2023[15]. - The Company declared an interim dividend of HK$0.10 per share for the year ended December 31, 2024, down from HK$0.20 in the previous year[16]. - Total attributable property registered sales for 2024 amounted to 322,200 m², a decrease of 4% from 2023's 336,200 m²[25]. - Total attributable gross floor area completed in 2024 was approximately 432,600 m², a decrease of 34% from 2023's 655,700 m²[25]. - Rental income slightly decreased by 1.3% compared to 2023[25]. - For the year ended December 31, 2024, Asiasec Properties Limited reported a loss of approximately HK$74.8 million, compared to a profit of approximately HK$265.0 million in 2023[31]. - TAMC reported a revenue of approximately HK$1,627.2 million for 2024, an increase from HK$1,568.8 million in 2023, with a profit of approximately HK$28.8 million compared to HK$14.7 million in 2023[31]. Market Outlook - The Chinese central bank lowered the one-year loan prime rate by 35 basis points to 3.10% and the five-year rate by 60 basis points to 3.60% in 2024, which is expected to alleviate financial burdens in the real estate sector[32]. - The Group remains confident in the long-term prospects of the real estate market in mainland China and Hong Kong despite short-term uncertainties[32]. Strategic Plans - The Group plans to adjust the quality of its landbank through acquisitions and disposals to balance short-term returns and long-term capital appreciation[31]. - The Group aims to responsibly increase project leverage to enhance return on equity while reviewing healthcare investment and cost structures to improve efficiency[31]. Construction and Development Projects - The construction of Phase 3 of Tian An Cloud Park in Shenzhen has commenced and is expected to be completed in stages in 2027 and 2028[25]. - Revenue from property development decreased from HK$1,530.1 million to HK$520.5 million, a decline of approximately 66% compared to 2023[48]. - Properties under construction in 2024 are distributed with 53% in Southern China and 37% in Eastern China[47]. - The Group's landbank consists of approximately 9,220,100 m² of total gross floor area, with 5,374,900 m² attributable to the Group[59]. - Major completed properties held for sale include approximately 83,600 m² in Shanghai, 51,600 m² in Huizhou, and 31,300 m² in Wuxi as of December 31, 2024[60]. Financial Position - As of December 31, 2024, the total bank balances and cash reserves of the Group were approximately HK$12,318.5 million, an increase from HK$9,056.9 million in 2023[64]. - The total borrowings of the Group amounted to approximately HK$8,067.2 million, down from HK$9,114.4 million in 2023, with a gearing ratio of negative 15.1% compared to positive 0.2% in the previous year[66]. - Approximately 61% of the Group's outstanding borrowings will mature within two years, with around 10% of interest-bearing borrowings at fixed rates[67]. - The Group intends to obtain proper bank borrowings with reasonable pricing terms to maintain flexible and sufficient cash flow for acquiring potential quality landbank[68]. - The management continuously monitors the gearing ratio and raises new external borrowings when necessary to support business operations[68]. Joint Ventures and Partnerships - The Group held a 50% interest in a joint venture, Tianan Digital City (Group) Limited, with a carrying amount of approximately HK$3,285.5 million, representing 5.6% of the Group's total assets[75]. - The profit attributable to the Group from Tianan Digital City (Group) Limited was approximately HK$279.0 million, down from HK$322.1 million in 2023[76]. - The Group's share of profits for the year is approximately HK$279.0 million, down from HK$322.1 million in 2023, indicating a decline of 13.4%[81]. Legal and Regulatory Matters - The Group has assessed potential contingent liabilities from legal actions amounting to approximately HK$155.4 million and HK$35.1 million, but believes these have no material impact on operations[91]. - The Group is actively working with joint venture partners to prevent the classification of certain properties as idle land and is negotiating development plans with local authorities[89].