2024 INTERIM REPORT SINO-OCEAN GROUP HOLDING LIMITED
CONTENTS
P.004 | About Sino-Ocean | P.015 | Management Discussion & Analysis |
P.006 | Corporate Information | P.039 | Investor Relations |
P.008 | Landbank Distribution | P.040 | Sustainability Report |
P.010 | Financial & Operation Highlights | P.045 | Disclosure of Interests |
P.012 | Chairman's Statement | P.047 | Corporate Governance and Other Information |
SINO-OCEAN GROUP HOLDING LIMITED 2024 INTERIM REPORT
P.051 | Report on Review of Interim Condensed | P.058 | Interim Condensed Consolidated Statement of |
Consolidated Financial Statements | Changes in Equity | ||
P.054 | Interim Condensed Consolidated | P.060 | Interim Condensed Consolidated Statement of |
Statement of Profit or Loss | Cash Flows | ||
P.055 | Interim Condensed Consolidated Statement of | P.061 | Notes to the Interim Condensed Consolidated |
Comprehensive Income | Financial Statements | ||
P.056 | Interim Condensed Consolidated Statement of | P.099 | Glossary |
Financial Position |
002 | CONTENTS | CONTENTS | 003 |
2024 INTERIM REPORT SINO-OCEAN GROUP HOLDING LIMITED | SINO-OCEAN GROUP HOLDING LIMITED 2024 INTERIM REPORT |
ABOUT SINO-OCEAN
Sino-Ocean Group Holding Limited has been listed on the Main Board of The Stock Exchange of Hong Kong Limited since 28 September 2007 (Stock Code: 03377.HK), with China Life Insurance Company Limited and Dajia Life Insurance Co., Ltd. as substantial Shareholders.
With a strategic vision of becoming the "Creator of Building Health and Social Value", Sino-Ocean Group is committed to becoming a pragmatic comprehensive corporation focusing on investment and development while exploring related diversified new businesses. The core businesses of the Group include development of residential property, investment property development and operation, property services and whole-industrial chain construction services, with its scope of businesses also covering senior living service, internet data center, logistics real estate and real estate fund, etc., forming a unique advantage in the field of asset-light agent construction. The Group adheres to "Serving Users with Craftsmanship" and puts the concept of "Building‧Health" into active practice, striving to create a high-quality healthy life style for users through carefully-crafted products and premium services.
Sino-Ocean Group currently owns around 260 projects in different stages in rapidly growing Chinese cities and metropolitan regions, such as Beijing, Shijiazhuang, Taiyuan and Qinhuangdao in the Beijing Region; Tianjin, Qingdao, Jinan and Dalian in the Bohai Rim Region; Shanghai, Hangzhou, Nanjing and Suzhou in the Eastern Region; Shenzhen, Guangzhou, Fuzhou and Hong Kong in the Southern Region; Wuhan, Zhengzhou, Hefei and Changsha in the Central Region; Chengdu, Chongqing, Xi'an and Kunming in the Western Region. In addition, the Company's business territory has expanded abroad to Singapore, Indonesia, etc. As at 30 June 2024, we had a land reserve of around 34 million sq.m.
Center Mansion (Wenzhou)
2024 INTERIM REPORT SINO-OCEAN GROUP HOLDING LIMITED
CORPORATE INFORMATION
The corporate information of Sino-Ocean Group as of the Latest Practicable Date was as follows:
Directors
Executive Directors
Mr. LI Ming (Chairman and CEO)
Mr. WANG Honghui
Mr. CUI Hongjie
Ms. CHAI Juan
Nomination Committee
Mr. LI Ming (Chairman of committee) Mr. SUN Jinfeng
Mr. HAN Xiaojing
Mr. JIANG Qi
Mr. CHEN Guogang
Non-executive Directors
Mr. ZHAO Peng
Mr. ZHANG Zhongdang
Mr. YU Zhiqiang
Mr. SUN Jinfeng
Independent Non-executive Directors
Mr. HAN Xiaojing
Mr. LYU Hongbin
Mr. LIU Jingwei
Mr. JIANG Qi
Mr. CHEN Guogang
Audit Committee
Mr. LIU Jingwei (Chairman of committee) Mr. ZHAO Peng
Mr. YU Zhiqiang
Mr. LYU Hongbin
Mr. CHEN Guogang
Remuneration Committee
Mr. HAN Xiaojing (Chairman of committee)
Ms. CHAI Juan
Mr. LYU Hongbin
Mr. JIANG Qi
Strategic and Investment Committee
Mr. LI Ming (Chairman of committee)
Mr. WANG Honghui
Mr. CUI Hongjie
Mr. ZHANG Zhongdang
Mr. SUN Jinfeng
Mr. LIU Jingwei
Mr. ZHAO Jianjun
Company Secretary
Mr. SUM Pui Ying
Authorized Representatives
Mr. LI Ming
Mr. SUM Pui Ying
006 CORPORATE INFORMATION
Registered Office
Suite 601, One Pacific Place
88 Queensway Hong Kong
Principal Place of Business
31-33 Floor, Tower A
Ocean International Center
56 Dongsihuanzhonglu Chaoyang District, Beijing
PRC
Principal Bankers
(in alphabetical order) Agricultural Bank of China, Ltd. Bank of China (Hong Kong) Limited Bank of China Limited
Bank of Communications Co., Ltd. Bank of Shanghai Co., Ltd.
China CITIC Bank Corporation Limited China Everbright Bank Co., Ltd. China Guangfa Bank Co., Ltd.
China Minsheng Bank Corp., Ltd. China Zheshang Bank Co., Ltd. Chong Hing Bank Limited
CMB Wing Lung Bank Limited Hang Seng Bank Limited
Industrial and Commercial Bank of China, Ltd. Industrial Bank Co., Ltd.
Liaoshen Bank Co., Ltd.
Ping An Bank Co., Ltd.
Postal Savings Bank of China Co., Ltd. Shanghai Pudong Development Bank Co., Ltd. The Bank of East Asia, Limited
The Hongkong and Shanghai Banking Corporation Limited
United Overseas Bank Limited
SINO-OCEAN GROUP HOLDING LIMITED 2024 INTERIM REPORT
Auditor
BDO Limited
Certified Public Accountants
Registered Public Interest Entity Auditor
Legal Advisor
Paul Hastings
Share Registrar
Computershare Hong Kong Investor Services Limited
Shops 1712-1716, 17th Floor, Hopewell Centre
183 Queen's Road East, Wanchai
Hong Kong
Listing Information
The Stock Exchange of Hong Kong Limited
Stock Code: 03377.HK
Company Website
www.sinooceangroup.com
Investor Relations Contact
ir@sinooceangroup.com
CORPORATE INFORMATION | 007 |
2024 INTERIM REPORT SINO-OCEAN GROUP HOLDING LIMITED
LANDBANK DISTRIBUTION
59 | Southern Region |
Sino-Ocean Group Focuses on Acquiring | Shenzhen Guangzhou Fuzhou Foshan |
Quality Land Resources, with Landbank | Quanzhou Xiamen Maoming |
Coverage Extended to 59 Cities all over the | Jiangmen Zhongshan Zhanjiang |
PRC and Overseas. | Sanya Hong Kong |
Total GFA: 6,591,000 sq.m. | |
Total landbank: 3,886,000 sq.m. | |
Number of projects: 28 |
Beijing Region | Central Region |
Beijing Shijiazhuang Taiyuan Qinhuangdao | Wuhan Zhengzhou Hefei Changsha |
Langfang Zhangjiakou Jinzhong | Nanchang Ganzhou |
Total GFA: 14,230,000 sq.m. | Total GFA: 7,483,000 sq.m. |
Total landbank: 9,269,000 sq.m. | Total landbank: 3,609,000 sq.m. |
Number of projects: 45 | Number of projects: 25 |
Bohai Rim Region | Western Region |
Tianjin Qingdao Jinan Dalian Shenyang | Chengdu Chongqing Xi'an Kunming Guiyang |
Changchun Anshan | Urumqi Lanzhou Liuzhou Luzhou Xining |
Total GFA: 13,344,000 sq.m. | Xishuangbanna |
Total landbank: 7,575,000 sq.m. | Total GFA: 8,838,000 sq.m. |
Number of projects: 31 | Total landbank: 5,671,000 sq.m. |
Number of projects: 32 |
Eastern Region | Other Region |
Shanghai Hangzhou Nanjing Suzhou Ningbo | Singapore Jakarta |
Wuxi Changzhou Wenzhou Yangzhou | Total GFA: 70,000 sq.m. |
Jiaxing Jinhua Zhenjiang Suqian Huzhou | Total landbank: 70,000 sq.m. |
Total GFA: 7,560,000 sq.m. | Number of projects: 2 |
Total landbank: 4,059,000 sq.m. | |
Number of projects: 36 |
SINO-OCEAN GROUP HOLDING LIMITED 2024 INTERIM REPORT
Beijing
Region
Bohai Rim
Region
Eastern | ||
Western | Central | Region |
Region | Region |
Southern
Region
SingaporeJakarta
008 | LANDBANK DISTRIBUTION | LANDBANK DISTRIBUTION | 009 |
2024 INTERIM REPORT SINO-OCEAN GROUP HOLDING LIMITED
FINANCIAL & OPERATION HIGHLIGHTS
Six months ended 30 June (unaudited) | |||
(RMB million) | 2024 | 2023 | Changes |
Contracted sales | 18,330 | 35,660 | -49% |
Revenue | 13,313 | 20,807 | -36% |
Gross profit/(loss) | 297 | -125 | N/A |
Loss for the period | -5,317 | -18,309 | -71% |
Loss attributable to owners of the Company | -5,382 | -18,369 | -71% |
Loss per share (RMB) | |||
- Basic | -0.707 | -2.412 | -71% |
- Diluted | -0.707 | -2.412 | -71% |
Gross profit/(loss) margin (%) | 2% | -1% | 3 pts |
Net loss margin (%) | -40% | -88% | 48 pts |
Saleable GFA sold ('000 sq.m.) | 1,514 | 2,761 | -45% |
Saleable GFA delivered ('000 sq.m.) | 755 | 1,223 | -38% |
As at | As at | ||
30 June | 31 December | ||
2024 | 2023 | ||
(RMB million) | (unaudited) | (audited) | Changes |
Total assets | 195,494 | 206,172 | -5% |
Equity attributable to owners of the Company | 1,003 | 7,029 | -86% |
Cash resources1 | 4,709 | 5,022 | -6% |
Net gearing ratio2 (%) | 650% | 438% | 212 pts |
Current ratio (times) | 1.02 | 0.95 | 8% |
Landbank ('000 sq.m.) | 34,139 | 36,213 | -6% |
Notes:
1 Including restricted bank deposits
2 Total borrowings minus cash resources divided by total equity
010 FINANCIAL & OPERATION HIGHLIGHTS
SINO-OCEAN GROUP HOLDING LIMITED 2024 INTERIM REPORT
Contracted Sales | (RMB million) |
1H2024 | 18,330 | ||||
0 | 10,000 | 20,000 | 30,000 | 40,000 | 50,000 |
1H2023 | 35,660 | ||||
Revenue(RMB million)
1H2024 | 13,313 | |||||
0 | 5,000 | 10,000 | 15,000 | 20,000 | 25,000 | 30,000 |
1H2023 | 20,807 | |||||
Landbank | ('000 sq.m.) |
30 June 2024 | 34,139 | ||||
0 | 10,000 | 20,000 | 30,000 | 40,000 | 50,000 |
31 December 2023 | 36,213 | ||||
FINANCIAL & OPERATION HIGHLIGHTS | 011 |
2024 INTERIM REPORT SINO-OCEAN GROUP HOLDING LIMITED
CHAIRMAN'S STATEMENT
On behalf of the Board, I have the pleasure to present the unaudited interim results of the Group for the six months ended 30 June 2024.
2024 INTERIM RESULTS
For the six months ended 30 June 2024, the Group's revenue was RMB13,313 million, representing a YoY decrease of 36%. Due to the continuous downturn in the real estate market in the PRC, the Group's gross profit was RMB297 million (first half of 2023: gross loss of RMB125 million), and the Group's gross profit margin was 2% (first half of 2023: gross loss margin of 1%). Loss attributable to owners of the Company and loss per share (basic and diluted) were RMB5,382 million and RMB0.707, respectively.
MARKET REVIEW AND OUTLOOK
In the first half of 2024, the real estate market in China remained sluggish. On 17 May 2024, the Central Government issued a package of policies such as 'lowering the down payment ratio of the first two residential units' and 'removing the lower limit of mortgage rate'. They also encouraged state-owned enterprises to absorb existing housing stock. But despite the follow-up adjustments in core cities and positive policy changes, it would take some time for the market to pick up. In the first six months of 2024, GFA of commodity housing sold nationwide was approximately 480 million sq.m., a drop of 19% YoY, of which residential housing dropped by 21.9%; property enterprises had achieved a capital inflow of approximately RMB5.4 trillion, a reduction of 22.6% YoY. Under the pressure of decreased cash collection from sales, difficulty in asset disposal and restrictive re-financing, property enterprises were faced with considerable risks and challenges. The industry continues to undergo consolidation.
Looking ahead to the second half of the year, the Group anticipates that the property market will continue to face significant challenges in the short term, with ongoing industry risk reduction. The era of large-scale urban redevelopment and concentrated development has come to an end. Reduction in development scale and project size is the way to go. The industry turns to high- quality growth and the property market enters an era of stock. Future real estate will be mainly on micro-renovations and existing stock. Opportunities exist in agent construction, urban renewal, asset management, non-performing assets and individual residential unit construction.
PERFORMANCE REVIEW AND STRATEGY
In the first half of 2024, taking into consideration the policies, industry, market and the actual situation of the Company, the Group focused on sustainable operations and worked on consistent high-quality delivery, implementation of the financing 'white list', actively resolved debt risks and promoted timely business transformation.
Steadfast in high-quality delivery to maintain the Top 10 position
In the first half of 2024, the Group attached significant importance to delivery work. An accumulated total of 18,300 residential units were delivered to a high standard in 25 cities including Tianjin, Shanghai, Suzhou, Xiamen, Jinan, Zhengzhou and Guangzhou. At the same time, the Group exercised stringent delivery quality management. Third party data¹ indicated that the Group ranked Top 10 among major property enterprises in terms of overall delivery quality. Our interior decoration and landscape gardening ranked Top 5 in the industry. Our exquisite workmanship and pursuit of quality were fully recognized by property owners and the market.
Note 1: According to statistics provided by Shenzhen Ridge Engineering Consulting Co. Ltd.
012 CHAIRMAN'S STATEMENT