2023-04-27-港交所-宝新置地_年报2022_234页_2mb

2022 Annual Report Summary

Core Content

The 2022 Annual Report of Glory Sun Land Group Limited (the "Group") provides a comprehensive overview of the company's financial performance, business operations, corporate governance, and future outlook. It highlights the challenges faced by the real estate and cultural sports and entertainment sectors during the year, as well as the Group's strategic responses and initiatives to stabilize operations and enhance competitiveness.

Main Points

1. Corporate Structure and Governance

• Board of Directors:
  • Executive Directors: Yao Jianhui (Chairman), Xia Lingjie (Chief Executive Officer)
  • Non-Executive Director: Zhan Yushan
  • Independent Non-Executive Directors: He Suying, Tang Lai Wah, Wong Chun Bong
• Key Personnel:
  • Chief Financial Officer: Fong Ching Kong
  • Company Secretary: Fong Ching Kong
• Legal Advisors: Baker & McKenzie, Cheung Yan & Associates, David Fong & Co.
• Committees:
  • Audit Committee: Wong Chun Bong, He Suying, Tang Lai Wah
  • Development Committee: Yao Jianhui, Xia Lingjie, Fong Ching Kong
  • Investment Committee: Yao Jianhui, Xia Lingjie, Zhan Yushan
  • Nomination Committee: Wong Chun Bong, Yao Jianhui, He Suying
  • Risk Management Committee: Yao Jianhui, Xia Lingjie, Zhan Yushan
  • Salary Review Committee: He Suying, Yao Jianhui, Tang Lai Wah
• Authorized Representatives: Yao Jianhui, Fong Ching Kong
• Auditor: BDO Limited (HK CPA and RPIE auditor)
• Principal Bankers:
  • Hong Kong and Shanghai Banking Corporation
  • China CITIC Bank
  • China Minsheng Bank
  • Bank of Communications
  • Industrial and Commercial Bank of China
  • China Everbright Bank
  • Agricultural Bank of China
• Registered Office: Cricket Square, Hutchins Drive, P.O.Box 2681, Grand Cayman, Cayman Islands
• Hong Kong Branch Share Registrar and Transfer Office: Tricor Investor Services Limited, 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong
• Contact Information:
  • Telephone: (852) 2598 8788
  • Fax: (852) 2877 8080
  • Website: http://www.hk0299.com
  • Email: info@hk0299.com
• Stock Code: 299

2. Financial Overview

• Financial Year: Ended 31 December 2022
• Key Financial Highlights:
  • Revenue: HK$1,617,467,000 (2022) vs. HK$5,504,341,000 (2021)
  • Profit/(Loss) before Tax: (HK$1,061,783,000) (2022) vs. HK$223,798,000 (2021)
  • Net Profit/(Loss): (HK$911,264,000) (2022) vs. HK$304,709,000 (2021)
  • Earnings Per Share (Basic): (HK$720.73) (2022) vs. HK$320.62 (2021)
• Five-Year Financial Summary:
  • Total Assets: HK$16,684,537,000 (2022) vs. HK$20,150,319,000 (2021)
  • Total Liabilities: (HK$13,491,983,000) (2022) vs. (HK$15,358,362,000) (2021)
  • Equity: HK$3,192,554,000 (2022) vs. HK$4,791,957,000 (2021)

3. Industry and Market Conditions

• Real Estate Industry:
  • Faced significant challenges in 2022 due to the Pandemic, supply shocks, and reduced consumer demand.
  • Sales area and volume of commercial housing dropped to 1.358 billion square meters and RMB13.5 trillion, respectively, the lowest in nearly six years.
  • Real estate development and investment growth rate decreased by 10%, the first decline in nearly a decade.
  • Many developers experienced liquidity issues, delayed deliveries, and increased debt risks.
• Cultural Sports and Entertainment Industry:
  • Suffered from the impact of the Pandemic, reduced consumer spending, and rising costs.
  • Total output value reached RMB12 trillion, a slight increase of 0.9% year-on-year.
  • Some projects, such as Xiao Mu Tong Playroom and KTV TYPET Party, faced lower-than-expected revenue due to market uncertainties and reduced footfall.
• Logistics Industry:
  • Maintained stable operations despite challenges.
  • Total social logistics exceeded RMB340 trillion, an increase of approximately 3.6% year-on-year.
  • Continued improvement in key economic indicators with the implementation of stabilization policies.

4. Business Review

• Property Investment and Development:
  • The Group focused on core cities and key projects, maintaining a strategy of "deeply exploring the business in strong first-tier, new first-tier, and strong second-tier cities."
  • Operates eight property development projects across six cities (Shenzhen, Changchun, Changsha, Weinan, Shantou, Yunfu).
  • Total construction floor area exceeds 2.80 million square meters, covering commercial complexes, high-end residences, hotels, etc.
  • Sales and delivery performance improved in some projects, such as Changsha, Weinan Phase II, Shantou Chaoyang Phase III & IV, and Shantou Eastern Coast North Zone.
• Cultural Sports and Entertainment:
  • The Group has developed an integrated platform combining culture, sports, and entertainment.
  • Projects include Bihaiwan Golf, Xiao Mu Tong Playroom, Xin Dong Neng Fitness Club, and KTV TYPET Party.
  • The Group focused on service upgrades and user experience to enhance competitiveness.
• Commodities Trading and Other Operations:
  • The Group has built a large-scale trading platform for non-ferrous metals.
  • The non-ferrous metals industry faced sluggish downstream demand and price transmission issues.
  • The Group improved business flexibility and turnover through differentiated operations and strengthened its position in the supply chain.

5. Structural Changes

• In October 2022, the Group entered into a framework agreement with Glory Sun Financial Group Limited (stock code: 1282) to dispose of its non-wholly owned subsidiary, Shantou Taisheng Technology Limited.
• The first tranche of the disposal was completed on 22 March 2023, involving the sale of 51% of the equity interest in the Disposal Company.
• The Group aims to reduce overall gearing, alleviate operating fund pressure, and optimize its industrial layout.

6. Outlook for 2023

• The real estate industry is expected to focus on "increasing confidence, preventing risks, and driving transformation."
• The central government aims to ensure property deliveries, guide the market recovery, and promote stable and healthy development.
• The Group will continue to pursue high-quality development, enhance strategic flexibility, and improve financial security.
• It will also focus on service upgrades and product competitiveness to restore consumer confidence and stabilize operations.

Key Information

• The Group is actively managing its debt structure and liquidity challenges.
• It has made strategic moves to streamline operations and focus on core markets.
• The cultural and entertainment sector is expected to benefit from the normalization of the Pandemic and increased consumer confidence.
• The Group remains committed to its corporate vision of "Building the Beauty of Life" and enhancing its social responsibilities.