Company Overview - Zhongliang Holdings Group is primarily engaged in real estate development in China, with a land bank across five core economic areas[2]. - The company is listed on the Main Board of The Stock Exchange of Hong Kong Limited under stock code 2772.HK[3]. - The headquarters is located in Shanghai, with a national footprint rooted in the Yangtze River Delta[3]. - Zhongliang Holdings Group's website is www.zldcgroup.com, providing further information about its operations and financial performance[8]. Financial Performance - For the six months ended June 30, 2024, the Group's recognized revenue amounted to approximately RMB22.70 billion, representing a year-on-year decrease of approximately 21.3%[16]. - The Group recorded a loss attributable to owners of the Company of approximately RMB1.71 billion for the six months ended June 30, 2024, compared to a profit of approximately RMB18.6 million for the corresponding period in the previous year[16]. - Revenue for the six months ended June 30, 2024, was approximately RMB 22,701.2 million, a year-on-year decrease of 21.3% from RMB 28,850.8 million for the same period in 2023[46]. - The Group's gross profit decreased by approximately 91.8% year-on-year to approximately RMB 205.2 million for the six months ended June 30, 2024[47]. - The gross profit margin fell from 8.7% for the six months ended June 30, 2023, to approximately 0.9% for the same period in 2024, primarily due to lower ASP relative to land acquisition costs and impairment on property projects[47]. - The Group achieved contracted sales of approximately RMB9.66 billion in the first half of 2024, representing a year-on-year decrease of approximately 54.1%[20]. - The Group's revenue decline reflects broader market challenges and economic conditions[15]. Market Environment - China's GDP grew by 5% in the first half of 2024, with a slight slowdown in growth rate in the second quarter compared to the first quarter[18]. - The high interest rate environment may be maintained for longer, posing the risk of economic recession[18]. - The global political and economic environment remains complex, with ongoing geopolitical conflicts and trade disputes adding uncertainties[18]. - The recovery of China's real estate industry is expected to be a slow and long-term process, with the current operating environment remaining harsh[20]. Corporate Governance - The interim report provides insights into the company's governance structure, including various committees such as the Audit Committee and Remuneration Committee[6]. - The report outlines the company's commitment to corporate governance and compliance with regulatory standards[1]. - The Audit Committee has reviewed the interim results and the interim report for the six months ended 30 June 2024[129]. - The Group has complied with all applicable code provisions under the Corporate Governance Code for the six months ended June 30, 2024[81]. Debt and Financial Management - As of June 30, 2024, the Group's total interest-bearing debts were approximately RMB21.4 billion, with onshore debts amounting to approximately RMB11.9 billion and offshore debts approximately RMB9.5 billion[21]. - The Group's cash and bank balances, including restricted cash and pledged deposits, totaled approximately RMB7.9 billion as of June 30, 2024[21]. - The Group has implemented decisive measures to stabilize cash flow, accelerate sales, and enhance operating efficiency since mid-2021[21]. - The Holistic Solution for offshore debts was approved on March 20, 2024, alleviating the pressure of offshore indebtedness[23]. - The Group is actively negotiating with existing debt holders for the renewal or extension of repayment of bank and other borrowings[149]. - The Group plans to explore different means to generate cash flow to improve overall liquidity and settle outstanding debts[64]. Shareholder Information - As of June 30, 2024, the company has issued a total of 3,676,189,613 shares[108]. - Mr. Yang Jian holds 2,822,167,839 shares, representing approximately 76.77% of the total shareholding[106]. - The company did not grant any options or awards to Directors or senior management during the six months ended June 30, 2024[104]. - The Board resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2024[117]. Employee and Management - The staff cost recognized as expenses for the six months ended June 30, 2024, amounted to approximately RMB276.2 million, a decrease from approximately RMB437.8 million for the same period in 2023[77]. - As of June 30, 2024, the Group employed a total of 3,703 full-time employees[77]. - The Group's employee remuneration packages include basic salaries, discretionary bonuses, performance-based payments, share options, and share awards[77]. Investment and Assets - The carrying amount of investment properties as of June 30, 2024, was RMB 1,447,700,000, down from RMB 1,508,800,000 as of December 31, 2023[189]. - The total cash and bank balances were RMB 7,865,304 thousand, down from RMB 14,396,949 thousand in the previous year[144]. - The company recognized impairment losses for properties held for sale amounting to RMB 137,277 thousand during the reporting period[142]. Future Outlook - The Group plans to maintain operational liquidity, stabilize debt, and control risks to navigate industry challenges[28]. - The government is expected to introduce further stimulus policies to boost market confidence and support economic recovery[28]. - The Group is seeking suitable opportunities to dispose of equity interests in certain project development companies to generate additional cash inflows[149].
中梁控股(02772) - 2024 - 中期财报