– 1 – Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. AGILE GROUP HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability) (Stock Code: 3383) ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2021 HIGHLIGHTS Financial Highlights For the six months ended 30 June 2021 2020 Change Revenue (RMB million) 38,588 33,527 +15.1% Gross profit (RMB million) 10,849 11,520 -5.8% Profit for the period (RMB million) 6,471 6,339 +2.1% Profit attributable to shareholders of the Company (RMB million) 5,290 5,127 +3.2% Basic earnings per share (RMB) 1.363 1.321 +3.2% Interim Dividend per share (HK cents) 50.0 50.0 –
Transcript
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
AGILE GROUP HOLDINGS LIMITED(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 3383)
ANNOUNCEMENT OF INTERIM RESULTSFOR THE SIX MONTHS ENDED 30 JUNE 2021
HIGHLIGHTS
Financial Highlights
For the six months ended 30 June
2021 2020 Change
Revenue (RMB million) 38,588 33,527 +15.1%
Gross profit (RMB million) 10,849 11,520 -5.8%
Profit for the period (RMB million) 6,471 6,339 +2.1%
Profit attributable to shareholders of the Company (RMB million) 5,290 5,127 +3.2%
Basic earnings per share (RMB) 1.363 1.321 +3.2%
Interim Dividend per share (HK cents) 50.0 50.0 –
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Operational Highlights
For the six months ended 30 June 2021:
• the aggregated pre-sale value of theGroup, togetherwith the joint ventures andassociatesof theGroup aswell as propertyprojects carrying “Agile”brandnamemanagedby theGroup isRMB75.33billion, representingayear-on-year increaseof36.7%; thecompletion rateofpre-salevalue target reached50.2%; theGrouphadatotalof215projectsavailableforsale,including20newlylaunchedprojects.
• theGroup’s revenueandnetprofitwereRMB38,588millionandRMB6,471millionrespectively, representing a year-on-year increaseof 15.1%and increaseof 2.1%respectively.
IampleasedtopresenttheinterimresultsforAgileGroupHoldingsLimited(“Agile”orthe“Company”)and its subsidiaries (collectively, the“Group”) for the sixmonthsended30June2021(the“Review Period”).
During the Review Period, revenue from recognised sales of property development was RMB32,092million, representingayear-on-year increaseof9.5%.Revenues frompropertydevelopmentbusinessanddiversifiedbusinessesaccountedfor83.2%and16.8%respectively.The proportion of revenue from diversified businesses increased year-on-year by 4.2percentagepoints.TherisereflectsthesustainedeffectivenessoftheGroup’soperatingmodelof“focusingonpropertydevelopment, supportedbya synergyofdiversifiedbusinesses”.During theReviewPeriod, revenue from propertymanagement and others (includingenvironmental protection, hotel operations and investment in properties (“Commercial Management”))wereRMB4,992millionandRMB1,504millionrespectively,representingayear-on-yearincreaseof57.1%andincreaseof44.5%respectively.
TheCompany’sboardofdirectors(the“Board”)hasdeclaredaninterimdividendofHK50.0centsperordinaryshare for thesixmonthsended30June2021 (sixmonthsended30June2020:HK50.0cents).
Market Review
During the Review Period, various countries around the globe continued to suffer from the widespread impact of the2019NovelCoronavirus (“COVID-19”).Asvarious countriessteppedupvaccinationplansandsomecountriesweregradually lifting lockdownmeasures,globaleconomies recoveredatdifferentpaces.During theReviewPeriod,China’seconomyrebounded strongly with a coordinated plan of pandemic prevention and control and economic development from theCentralGovernment, reinforcing theobjectivesof“protectingmarketentities,supportingemploymentandbolsteringbasiclivelihoodactivities”.DuringtheReviewPeriod,China’sgrossdomesticproduct (“GDP”) recordedayear-on-year increaseof12.7%andtheCentralGovernmentestimatedanannualGDPgrowthof8%.
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In2021, the inauguralyearof the“14thFive-YearPlan”, theCentralGovernment remainssteadfastinthelong-termgoalof“housesareforlivingin,notforspeculation”andcontinuesto improve the regulatory policies of the real estate industry and focuses on resolving the housing issues inmajorcities,settingakeynotefor realestatedevelopment inChinafor thenext fiveyears.During theReviewPeriod, theCentralGovernment introduced the“two-centralisedlandsupply”policy,withanaimtocurblandprices.Atthesametime,drivenbyasustained increase in domestic housing purchasing demand, the overall growth in sales of the realestatemarkethasdriven the increase incashcollection,creatingcrucialmomentumfortherelativelyfast-pacedgrowthofrealestatedevelopmentinvestments.
TheGroup capitalised onmarket opportunitieswhile upholding and implementing theoperatingmodelof“focusingonpropertydevelopment,supportedbyasynergyofdiversifiedbusinesses”, thereby layinga solid foundation for long-termdevelopment in the futurewithfull-fledgedsynergyamongvariousbusinessesoftheGroup.
Pre-sale Value in the First Half of the Year Rising Almost 40% Year-on-year Through Integrated Online-to-offline Sales Model
Sincetheonsetofthepandemiclastyear,theGrouphasproactivelyadjusteditssalesstrategyto delegate the final approval authority to regional level in order to enhance the efficiency of marketingdecision-makingatthegrouplevel.DuringtheReviewPeriod,theGroupcontinuedtopursueadiversifiedsalesportfoliomodelwithanintegratedonline-to-offlinesalesstrategy,which provided customers with comprehensive, multifaceted house purchasing services in a one-stopmanner,andpolishedtheGroup’scustomeracquisitionpipeline.
Diversified Land Acquisition Model to Strengthen Land Reserve Quality
During theReviewPeriod, theGroupcontinued to implementdiversified landacquisitionapproachestofurtherstrengthenitsbusinesspresencebystrategicallyobtaining22newhigh-quality projects through tender, auction, listing-for-sale, land application and equityacquisitions.ThetotalplannedGFAofthenewprojectsamountedto3.043millionsq.m..Thetotalconsiderationof thenewprojectswasRMB21.635billion,withanaveragelandcostofRMB7,109per sq.m..The total consideration attributable to theGroupwasRMB10.547billion.Asat30June2021, theGrouphada landbankwitha totalplannedGFAof52.95millionsq.m. in85cities,amongwhich,ShaoxingcityofZhejiangProvincewas thenewlyexploredmarketduringtheReviewPeriod.
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During theReviewPeriod, theGroupcontinued tocultivate twomajorcityclusters,namelytheGuangdong-HongKong-MacaoGreaterBayArea (the “Greater Bay Area”) and theYangtzeRiverDelta,byobtaining3and9projects intheGreaterBayAreaandtheYangtzeRiverDelta,respectively.Inwhich,theGroupacquirednewprojectsinvarioustier-onecities,including theMentougouDistrictproject in thecapital,Beijing,and theSongjiangDistrictprojectinShanghai.
During the Review Period, the Central Government announced the establishment and creation ofafinancialcooperationchannelandmodelamongtheGreaterBayArea.Itfacilitatedcross-border trading, investment and financing, expanded the opening up of the financial sector, and promoted the interconnectivitybetween the financialmarketand financial infrastructure toboosttheoverallfinancialservicelevelintheGreaterBayArea.TheGroupwillbenefitfromthearea’senormousdevelopmentpotentialinthefuture.Asat30June2021,theGroupheldapproximately13.86millionsq.m.oflandbankintheGreaterBayArea,whichaccountedfor26.2%ofitstotallandbank.Amongwhich,theGrouphastwohigh-qualitypropertyprojectsinHongKong, including theKing’sRoad&MountParkerRoadProjectwhich is underdevelopment and theKowloonTongEastbourneRoadUrbanRenewalProjectwhich isundergoing acquisition,with an aggregate landbankof approximately 20,000 sq.m.. Inaddition, theGroupheld6.96millionsq.m.of landbank in theYangtzeRiverDelta,whichaccounted for13.1%of its total landbank,with theaccumulatednumberofdevelopmentprojectsreaching60.TheGroupwillcontinuetoexpanditsmarketshareintheYangtzeRiverDelta,therebygeneratingstablelong-termrevenuestreamsfortheGroup.
TheGrouphasa totalof4projectsunderdevelopment inoverseas. InMalaysia, theGrouphad2high-qualitypropertyprojectsonsaleinKualaLumpur,includingAgileBukitBintangKualaLumpurandAgileEmbassyGardenKualaLumpur.InCambodia,AgileSkyResidencePhnomPenh is theGroup’s firstprojecton sale inPhnomPenh. In theUnitedStates, theconstructionofProject88inSanFranciscohasbeentopped-outandisplannedtobelaunchedbyendof2021.Asat30June2021,theGroupheldapproximately0.33millionsq.m.oflandbankoverseas,whichaccountedfor0.6%of its total landbank.TheGroupadoptsaprudentyetproactivedevelopment strategywithChina’spropertymarketas themaindevelopmentlocation,complementedwithprudentstrategiesforexpansioninoverseasmarkets.
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Diversified Businesses Development to Assemble the Second Growth Arc
In respect of diversified businesses, theGroup’s propertymanagement, environmentprotection, construction, urban renewal, real estate construction management and Commercial Managementcontinuedtogeneratesynergies.DuringtheReviewPeriod,theGroup’spropertymanagementandothers (includingenvironmentalprotectionandCommercialManagement)recordedayear-on-year revenuegrowthof57.1%and44.5% respectively, continuing toprovide solid revenue for the Group. During the Review Period, the contributions of revenue frompropertydevelopmentbusinessandrevenuefromdiversifiedbusinesseswere83.2%and16.8% respectively, inwhich, the contribution of revenue fromdiversified businessesincreasedyear-on-yearby4.2percentagepoints.
Developing A-Living into a Model Brand in Intelligent Comprehensive City Service
Asakeymaneuver in theproperty sectorbasedon theGroup’sdiversifieddevelopmentstrategy,A-LivingSmartCityServicesCo.,Ltd.(“A-Living”)hasalwaysundertakenmidtohigh-endpropertyprojectsdevelopedby theGroup toprovide theGroupwithwell-roundqualitypropertymanagement services inaconsistentmanner.A-Living iscommitted to themission of bringing lifelong caring to property owners and insists on the development strategy covering diverse business portfolios and the entire industry chain, and has thus transformed intoanall-scenariosmartcityserviceplatform.DuringtheReviewPeriod,A-Livingextendedits business layout to city services and secured itself a leading player in the industry in terms ofscalegrowth.A-Living tookadvantageof“talent+ technology+capital” tocontinuouslyenhanceitsserviceandbrandpower,andrankedTop4amongthe“Top100PropertyServiceCompaniesinChina2021”forthesecondconsecutiveyear.
Intermsofindustryconsolidation,A-Livingcompletedtheacquisitionoftheequityinterestinoneof the largest independent third-partypropertymanagement enterprises inShanghai,MinruiPropertyManagement (Shanghai)Co.,Ltd.during theReviewPeriod.ThisenabledA-Living to set foot inmarkets toenhance itspresence inShanghaiand theYangtzeRiverDeltaRegionandstrengthen itsadvantage in themanagement scaleofhigh-end residential,commercialandofficeandothernichemarkets.
A-City as a Leading “Ecological Habitat Service Provider”
During theReviewPeriod, theGroupproposed the spin-offandseparate listingofA-CityGroupLimited (“A-City”) shareson themainboardof theStockExchangeofHongKongLimited (the“Stock Exchange”).Uponcompletionof theproposedspin-offand listing, theCompanyisexpectedtohaveaninterestofnotlessthan50%inA-City,whichwillremainasasubsidiaryoftheCompany.Asaleading“EcologicalHabitatServiceProvider”,A-Citywillbe faithful to itsbrandmissionof“BuildingSmartSpaces”,and focuson the twobusinesssegments of ecological landscaping service and intelligent home and decoration services.
Continuous Growth in Revenue from Environmental Protection Business
During theReviewPeriod, theenvironmentalprotectionbusinessdeveloped rapidly.As thepandemic in China came under control, production lines of upstream enterprises resumed ordinary operation, resulting in a sustained increase in the output of all environmental protectionprojects.Sustainingthedevelopmentstrategyof“1Core,4DriversandNWings”,theenvironmentalprotectionbusiness focusedonhazardouswaste treatmentwhileengagingin selective projects of energy and power generation, ecological industrial parks,environmentalprotectionwatertreatment,andecologicalrestoration.Asat30June2021,theenvironmentalprotectionbusinesshada totalof47projects,anda totalof37projectshavebeen put into production. During the Review Period, the revenue of the environmental protectionbusinessamounted toRMB1.219billion, representingayear-on-year increaseof52.6%. During the Review Period, the environmental protection business won several awards, including the“Top50EnvironmentalEnterprises inChina”and“2020EmergingLeadingEnterprise inEnvironmentalProtection” inhigh recognitionof thebrand’scomprehensivestrength by the industry.
Robust Strategic Cooperation between the Real Estate Construction Management Business and Partners
With thehardworkanddevelopment throughout thepast threeyears, the comprehensivestrengthof the realestateconstructionmanagementbusinesshascontinued to improve.Thebusiness has been presenced in 32 cities in 13 provinces across the country, creating several reputableandqualityprojectsandachievingawin-winsituation for theGroup’s realestateconstructionmanagement, itsclients, theowners,and thesuppliers.Asat30June2021, thereal estate construction management business covers commercial agent construction, governmentagentconstructionandcapitalagentconstruction.TheaccumulatedplannedGFAof theprojects reached10millionsq.m..During theReviewPeriod,capitalising its strongbrand influence, excellent resource integrationcapability, andwell-groundedpractice forcontracted agent construction conducive to all parties, the real estate construction management businesswasawarded the“ChinaRealEstateContractedAgentConstructionManagement(TOP7) 2021”byGuandian Index Institute in recognitionof its continuous efforts andinnovationintheindustrybythemarket.
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Urban Renewal positioning as an “Integrated Urban Renewal Operator”
TheGroup isnotonlyanurbanconstructorbutalsoapromoterofurbandevelopmentandaqualityproviderofgood living,whichstronglyempowers the long-termdevelopmentof theintegration of industry and cities. Since the development of the urban renewal business, the Grouphasbeenadhering to itspositioningasan“IntegratedUrbanRenewalOperator”andfocused on related real estate developments such as old village redevelopment, old factory redevelopment, urban redevelopment and shanty town redevelopment, with a view to achievingaharmoniousdevelopmentofcitieswhereresidentscanenjoylifeandprovidingasustainable andmutuallybeneficial future for all parties.As at 30 June2021, theurbanrenewal business had entered into 22 cooperation agreements, with businesses presence in 5 provinces acrossChina. The business focused on theGreaterBayAreawhile furtherexpandingintoNorthernChinaRegionandCentralChinaRegion,andhadplannedlocked-inGFAof14.92millionsq.m.,withplannedlocked-insaleableresourcesofRMB452.2billion.
Grand opening of Agile Mall in Huadu, Guangzhou
Positionedasan“UrbanCommercialAssetsOperator”,theGroup’sCommercialManagementaims toestablishan industry-leadingplatformof full industrychainmanagement,coveringfourmajor segments,namelycommercialmanagement,hotelmanagement,golfmanagementand assets management. During the Review Period, the revenue of the Commercial Managementbusinessamounted toRMB285million, representingayear-year increaseof17.9%.TheAgileMall inHuaduofGuangzhousuccessfullyopenedon1May2021withanoccupancy rate of 97%.With 120,000 customers visiting on the opening day, themallinvigorated the local commercial sector and created an area for consumers to experience a qualitylife.
Sound Financial Strategy with Further Reduced Net Gearing Ratio
Ahealthy financialposition is thebackboneof theGroup’s rapidbusinessdevelopment.Assuch, the Group has strengthened and optimised its financial structure and enhanced its cash flowmanagement throughamulti-channel financingapproachduring theReviewPeriod inordertostrikeabalancebetweenbusinessdevelopmentandfinancialmanagement.DuringtheReviewPeriod, theCompany issuedUSD450million5.5%seniornotesdue2026on theoffshore front andwas granted 36-month term loan facilitieswith an initial amount ofHKD5,253,000,000andUSD28,500,000 (with agreenshoeoption).TheCompany issuedRMB1.45billion5.9%corporate bonds due2024on the onshore front. In addition, theCompanyfullyredeemedUSD100million8.55%seniorperpetualcapitalsecuritiesasatJune2021.Asat30June2021, theGroup’snetgearing ratio further reduced to45.3%.Asat30June 2021, theGroup’s total cash and bankdeposits amounted toRMB57,160million,representinganincreaseof12.4%ascomparedto31December2020.
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First Investment Grade Rating of Agile
Asanintegratedpropertydevelopmentcompanyadheringtothebusinessmodelof“focusingon property development, supported by a synergy of diversified businesses”,Agile’sprofitability continues to be well regarded by credit rating agencies. During the Review Period,Agile’scorporatecredit ratingswereconfirmedas“Ba2”and“BB”by internationalcredit ratingagencies,Moody’s InvestorsServiceandS&PGlobalRatings, respectively,whichbothupgradedAgile’s outlook ratings to “stable”, providing a strongboost to itsgrowthprospects. Inaddition, in June,LianheRatingsGlobal,an internationalcredit ratingagency,grantedAgilealong-termissuerratingof“BBB-”witha“stable”outlookratingsforthefirsttime,representingthefirstinvestmentgraderatingofAgile.
Good Corporate Governance and Fulfilling Corporate Social Responsibility
TheGroupupholds theconceptof“mutualcommunication forawin-winsituation”.Subjectto the requirementsof theRulesGoverning theListingofSecuritieson theStockExchange( the “List ing Rules”) and re levant laws , the Group mainta ins e f fec t ive mutualcommunicationsandbuildsgoodrelationshipswithcommercialandinvestmentbanks,ratingagencies,investorsandanalysts,therebyimprovingitscorporatetransparencyonanon-goingbasis.
Adheringtothebrandphilosophyof“LifestyleofaLifetime”,theGroupisalwaysconcernedabout the residents’desire forabetter life,emphasisingproductqualitymanagementwhileconstantlyseekinginnovationandbreakthroughs.Theproductphilosophyof“EightElegancesofResidence”andthe“N-HappinessMolecule”eco-systemarethemodelsforAgiletocreateand interpret infinite human life. In delivering these promises, great importance is placed on suppliermanagement,withaview toensuring theprovisionofhigh-qualityproducts andservices.TheGroup isalsoplaying itspart inenvironmentprotection,caresabout thewell-being of staff, and promotes sustainable development in communities through supporting and participating in charity and community activities across areas such as environmental protection, medical care, education, culture, and sports.
Prospects and Strategy
In the second half of 2021, as various countries around the globe have progressively vaccinatedtheircitizensandsomecountriesgraduallylifttheclosuremeasures,theeconomicactivitiesof thecountriesaround theworldandallwalksof lifeareexpected tograduallyreturntonormalinanorderlymanner.InChina,accordingtotheCentralGovernment’s“14thFive-YearPlan”, thehealthydevelopmentof the realestatemarket isclosely related to thepeople’s livelihoodand the long-termsustainabledevelopmentof theeconomy.TheCentralGovernmentwill continue to adhere to theprincipleof “houses are for living in, not forspeculation”andproperly implement the long-termmechanismof“stabilising landprices,housingpricesandexpectations”onthebasisofrespectingmarketregulationsandimprovingthe construction of relevant systems.
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In addition, asChinapledges tobe “carbonneutralby2060”as a response to theglobalclimatecrisis,Agilewillactivelyrespondtothemacropolicy,continuetokeepakeeneyeonthe impact of it business development on climate change and further carry out energy saving and consumption reduction measures to reduce greenhouse gas emissions generated in the courseof itsbusinessdevelopment.TheGroup firmlybelieves in, andwill adhere to thebusinessmodelof“focusingonpropertydevelopment,supportedbyasynergyofdiversifiedbusinesses”.Through the effortsof all employees, theoverall businesswill be in steadydevelopment,whichwill further increase thebrandawarenessofAgileacross thenationandmaintainitspositioninthecompetitivemarket.Meanwhile,theGroupwillcontinuetoupholdits promise in corporate social responsibilities by contributing to society through participating in charitable activities.
Acknowledgment
Onbehalfof theBoard, Iwould like toextendourheartfeltgratitude toour shareholders,customers, all staffmembers, and other stakeholders for their unwavering support anddedication in contributing to the sustainable growth of the Group.
Profit before income tax 11,361,700 11,386,802Income tax expenses 8 (4,891,083) (5,047,603)
Profit for the period 6,470,617 6,339,199
Profit attributable to:Shareholders of the Company 5,290,297 5,127,482HoldersofPerpetualCapitalSecurities 507,533 549,386Non-controllinginterests 672,787 662,331
6,470,617 6,339,199
Earnings per share from continuing operations attributable to the shareholders of the Company for the period (expressedinRenminbipershare) — Basic 9 1.363 1.321
— Diluted 9 1.363 1.321
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INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months ended 30 June
2021 2020Unaudited Unaudited(RMB’000) (RMB’000)
Profit for the period 6,470,617 6,339,199Other comprehensive income for the periodItems that will not be reclassified subsequently to profit or loss —Changesinthefairvalueofequityinvestmentsat fair value through other comprehensive income, net of tax (175,342) (14,285)Items that may be reclassified to profit or loss — Currency translation differences (12,084) (5,678)
Total comprehensive income for the period 6,283,191 6,319,236
Total comprehensive income attributable to:Shareholders of the Company 5,116,840 5,116,925HoldersofthePerpetualCapitalSecurities 507,533 549,386Non-controllinginterests 658,818 652,925
6,283,191 6,319,236
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INTERIM CONSOLIDATED BALANCE SHEET
As at 30 June
2021
Asat31 December
2020
Note Unaudited Audited(RMB’000) (RMB’000)
ASSETSNon-current assetsProperty,plantandequipment 12,859,541 12,080,847Investment properties 10,960,386 10,849,449Right-of-useassets 3,441,413 3,376,304Goodwill 4,622,196 4,264,614Otherintangibleassets 4,039,993 3,576,350Investmentsaccountedforusingtheequitymethod 31,927,699 18,179,155Prepaymentsforacquisitionofequityinterests 10,000 523,321Prepaymentsforacquisitionoflanduserights – 34,285Properties under development 23,243,298 30,973,623Otherreceivables 11 8,579,305 7,508,793Financial assets at fair value through other comprehensive income 322,123 510,639Deferred income tax assets 1,481,590 1,392,281
101,487,544 93,269,661
Current assetsProperties under development 80,925,093 82,148,512Completed properties held for sale 17,260,770 19,092,671Inventories 295,890 248,325Prepaymentsforacquisitionoflanduserights 7,102,659 8,311,775Contract assets 4,058,997 3,204,597Tradeandotherreceivables 11 55,811,527 50,021,335Prepaid income taxes 4,785,630 5,355,663Financial assets at fair value through profit or loss 1,503,154 1,247,819Restricted cash 10,647,890 8,938,792Cashandcashequivalents 46,512,122 41,925,908
228,903,732 220,495,397
Total assets 330,391,276 313,765,058
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As at 30 June
2021
Asat31 December
2020
Note Unaudited Audited(RMB’000) (RMB’000)
EQUITYCapital and reserves attributable to the shareholders of the CompanyShare capital and premium 3,421,883 3,421,883SharesheldforShareAwardScheme (156,588) (156,588)Otherreserves 4,564,159 3,416,513Retained earnings 47,241,223 44,133,820
55,070,677 50,815,628
Perpetual Capital Securities 13,013,810 13,637,493Non-controlling interests 21,882,534 12,516,601
Total equity 89,967,021 76,969,722
LIABILITIESNon-current liabilitiesBorrowings 58,412,878 59,243,748Otherpayables 12 4,670,829 4,284,452Financial liabilities at fair value through profit or loss 6,611 101,235Contract liabilities 117,746 75,271Leaseliabilities 410,267 392,927Deferred income tax liabilities 3,976,706 4,087,131
67,595,037 68,184,764
Current liabilitiesBorrowings 39,486,623 38,569,018Tradeandotherpayables 12 73,314,728 75,229,690Financial liabilities at fair value through profit or loss 447,109 1,004,423Contract liabilities 42,211,917 36,306,083Leaseliabilities 229,815 244,011Current income tax liabilities 17,139,026 17,257,347
172,829,218 168,610,572
Total liabilities 240,424,255 236,795,336
Total equity and liabilities 330,391,276 313,765,058
INTERIM CONSOLIDATED BALANCE SHEET (CONTINUED)
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Notes:
1 GENERAL INFORMATION
AgileGroupHoldingsLimitedisalimitedliabilitycompanyincorporatedintheCaymanIslandson14July2005and isprincipally engaged in investmentholding.Theaddressof its registeredoffice isCricketSquare,HutchinsDrive,P.O.Box2681,GrandCaymanKY1-1111,CaymanIslands.TheCompanyanditssubsidiariesareprincipallyengaged inpropertydevelopmentandpropertymanagement in thePeople’sRepublicofChina(the“PRC”).
Thiscondensedconsolidatedinterimfinancialinformationforthesixmonthsended30June2021hasbeenprepared in accordancewithHongKongAccountingStandard34“InterimFinancialReporting”.Thecondensed consolidated interim financial information shouldbe read in conjunctionwith the annualconsolidated financial statements for the year ended 31 December 2020 and any public announcement made by the Company during the six months ended 30 June 2021.
3 ACCOUNTING POLICIES
Theaccountingpoliciesadoptedareconsistentwiththoseofthepreviousfinancialyearandcorrespondinginterim reportingperiod,except for theestimationof income tax (note8)and theadoptionofnewandamended standards as set out below.
(a) New and amended standards adopted by the Group
TheGrouphasapplied the followingstandardsandamendments for the first time for the reportingperiod commencing 1 January 2021:
(b) New standards and amendments to existing standards have been issued but are not effective for the financial year beginning on 1 January 2021 and have not been early adopted by the Group
HKFRS17 Insurance contract 1 January 2023AmendmentstoHKInterpretation5 ClassificationbytheBorrowerofaTerm
LoanthatContainsaRepaymenton Demand Clause
1 January 2023
HKFRS10andHKAS28 (Amendment)
Sale or contribution of assets between an investoranditsassociateorjointventure
Tobedetermined
TheGrouphasalreadycommencedanassessmentof the impactof thesenewor revisedstandards,interpretationandamendments,certainofwhicharerelevanttotheGroup’soperations.
4 SEGMENT INFORMATION
TheexecutivedirectorsoftheCompany,whicharethechiefoperatingdecision-makeroftheGroup,reviewtheGroup’s internal reporting inorder toassessperformanceandallocate resources.Managementhasdetermined the operating segments based on reports reviewed by the executive directors of the Company thatareusedtomakestrategydecision.
TheGroup isorganised into threebusiness segments:propertydevelopment,propertymanagementandothers.Astheexecutivedirectorsof theCompanyconsidermostof theGroup’sconsolidatedrevenueandresultsareattributablefromthemarketinthePRC,mostofthenon-currentassetsarelocatedinthePRC,and less than10%of theGroup’sconsolidatedassetsare locatedoutside thePRC,geographical segmentinformation is not considered necessary.
Segment result 11,214,110 1,116,294 270,601 12,601,005
Finance costs, net (note 7) (1,239,305)
Profit before income tax 11,361,700
Income tax expenses (note 8) (4,891,083)
Profit for the period 6,470,617
Depreciation and amortisation 298,823 118,040 211,877 628,740Write-downofpropertiesunder development, completed properties held for sale and property, plantandequipment 324,543 – – 324,543
Fair value gains on investment properties (note 5) – – 12,513 12,513
Operatingprofits 11,326,517 718,735 192,670 12,237,922Shareofpost-taxprofitsof investments accounted for using theequitymethod 466,396 21,974 2,745 491,115
Segment result 11,792,913 740,709 195,415 12,729,037
Finance costs, net (note 7) (1,342,235)
Profit before income tax 11,386,802
Income tax expenses (note 8) (5,047,603)
Profit for the period 6,339,199
Depreciation and amortisation 171,628 103,508 258,385 533,521Write-downofpropertiesunder development, completed properties held for sale and property, plantandequipment 306,704 – 9,880 316,584
Capital expenditure 609,384 902,356 4,482,807 – 5,994,547
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4 SEGMENT INFORMATION (CONTINUED)
Notes:
(a) Propertydevelopmentsegmentmainlycomprisesthebusinessunitsinvolvedindevelopmentandsalesof properties, property construction service and provision of ecological landscaping services and intelligent home and decoration services.
(c) Othersmainly comprise the business units involved in environmental protection service andcommercialmanagementservices,eachofwhomis less than10%of theGroup’sconsolidatedprofitbefore tax and revenue, segment information is not considered necessary.
(d) Therearenodifferencesfromthelatestannualfinancialstatementsinthebasisofsegmentationorinthe basis of measurement of segment profit or loss.
Inter-segment transfers or transactions are entered into at terms and conditions agreeduponbyrespective parties.
Segmentassets consistprimarilyofproperty,plant andequipment, right-of-useassets, intangibleassets, properties under development, completed properties held for sale, investment properties, receivables,contractassetsandcashbalances.Unallocatedassetscomprisedeferredincometaxassets,prepaid income taxes, financial assets at fair value through other comprehensive income (the“FVOCI”)and financialassetsat fairvalue throughprofitor loss (the“FVPL”).Segment liabilitiescompriseoperating liabilities.Unallocated liabilities comprise taxation,borrowingsand financialliabilitiesatFVPL.
Capital expenditure comprises additions to property, plant and equipment, right-of-use assets,investment properties and intangible assets.
During the six months ended 30 June 2021, there was no significant incremental costs to obtain a contract(sixmonthsended30June2020:nil).
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5 OTHER GAINS, NET
Six months ended 30 June2021 2020
Unaudited Unaudited(RMB’000) (RMB’000)
Gains from disposal of subsidiaries 4,137,174 1,812,304Remeasurementgainsresultingfromjointventures transferred to subsidiaries – 825,314GainsondisposaloffinancialassetsatFVPL 56,044 24,908Fairvalue(losses)/gainsonfinancialassetsatFVPL (419) 53,863Fairvaluegainsonputoptionwrittenonnon-controllinginterests 1,974 –Fair value gains on investment properties 600 12,513Gainsondisposalofproperty,plantandequipmentand investment properties 144 67,306Gainsfromdisposalofjointventures – 40,796Exchangegains/(losses),net(note (a)) 28,792 (32,804)Miscellaneous 28,771 27,759
4,253,080 2,831,959
Note:
(a) Amountsmainly represent the losses or gains of translation of financial assets and liabilities,which aredenominated in foreigncurrency intoRMBat theprevailingperiod-endexchange rate. Itdoesnot include theexchangegainsorlossesrelatedtoborrowingswhichareincludedinthe“financecosts,net”(note7).
6 OTHER INCOME
Six months ended 30 June2021 2020
Unaudited Unaudited(RMB’000) (RMB’000)
Interest income 384,023 455,827Interest income from related parties 261,065 184,916Government grants 92,193 99,624Miscellaneous 50,293 37,217
787,574 777,584
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7 FINANCE COSTS, NET
Six months ended 30 June2021 2020
Unaudited Unaudited(RMB’000) (RMB’000)
Interest expense: —Bankborrowings,syndicatedloansandotherborrowings 2,686,902 2,555,520 — Senior notes 530,835 616,687 —PRCCorporateBonds,Asset-BackedSecurities(“ABS”)and CommercialMortgageBackedSecurities(“CMBS”) 338,237 428,033 —Leaseliabilities 11,678 12,709Less:interestandexchangelossescapitalised (2,038,686) (2,623,775)Exchange(gains)/lossesfromborrowings (388,012) 749,955Changes in fair value of derivative financial instruments 98,351 (396,894)
1,239,305 1,342,235
8 INCOME TAX EXPENSES
Six months ended 30 June2021 2020
Unaudited Unaudited(RMB’000) (RMB’000)
Current income tax — PRC corporate income tax 2,477,503 2,356,433 — PRC land appreciation tax 2,094,097 1,859,747 — PRC withholding income tax 201,000 200,116Deferred income tax — PRC corporate income tax 118,483 631,307
4,891,083 5,047,603
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8 INCOME TAX EXPENSES (CONTINUED)
PRC corporate income tax
The income taxprovisionof theGroup in respectofoperations inMainlandChinahasbeencalculatedatthe applicable tax rate on the estimated assessable profits for the period, based on the existing legislation, interpretations and practices in respect thereof.
CertainsubsidiariesoftheGroupobtainedtheCertificateofHigh-NewTechnicalEnterprise.AccordingtotheCITLawof thePRC,corporationswhichobtain theCertificateofHigh-NewTechnicalEnterpriseareentitled toenjoyadditional taxdeduction for researchanddevelopmentcostsandapreferentialcorporateincometaxrateof15%.Thetaxrateapplicabletothesecompaniesduringsixmonthsended30June2021was15%(sixmonthsended30June2020:15%).
Asubsidiaryof theGrouphasenjoyedapreferentialpolicyinZhuhaiHengqin(FreeTradeArea)withanenterprise income tax rate of 15% during the period ended 30 June 2021. Certain subsidiaries of the Group in thePRCare located inwesterncities,and theyare subject toapreferential income tax rateof15%incertainyears(sixmonthsended30June2020:15%).
Certain subsidiaries of the Group in the PRC provide environmental protection services and these companiesenjoythepolicyof“Threeexemptionandthreehalfcorporateincometax”.CertainsubsidiariesoftheGroupinthePRCarelocatedinHainanFreeTradePortandsubjecttoapreferentialincometaxrateof15%incertainyears(sixmonthsended30June2020:15%).
PRC land appreciation tax
PRC land appreciation tax is levied at progressive rate ranging from 30% to 60% on the appreciation of land value, being the proceeds from sales of properties less deductible expenditures including land use rights and expenditures directly related to property development activities.
PRC withholding income tax
According to theCITLaw,starting from1January2008,awithholding taxof10%willbe leviedon theimmediate holding companies outside the PRC when their PRC subsidiaries declare dividend out of profits earnedafter1January2008.Alower5%withholdingtaxratemaybeappliedwhentheimmediateholdingcompaniesof thePRCsubsidiariesareestablished inHongKongand fulfil requirementsunder the taxtreatyarrangementsbetweenthePRCandHongKong.
During the six months ended 30 June 2021, certain immediate holding companies of the PRC subsidiaries oftheGrouparequalifiedasHongKongresidententerprisesandfulfiltherequirementsunderthetaxtreatyarrangementsbetweenthePRCandHongKong.Therefore5%withholdingtaxratehasbeenapplied.
Overseas income tax
TheCompanywasincorporatedintheCaymanIslandsasanexemptedcompanywithlimitedliabilityundertheCompaniesLaw,Cap22ofCaymanIslandsandaccordingly,isexemptedfromCaymanIslandsincometax. Group entities in the British Virgin Islands were incorporated either under the BVI Business Companies Actorwere automatically re-registeredunder the same act on1 January2007 and, accordingly, areexempted from British Virgin Islands income tax.
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8 INCOME TAX EXPENSES (CONTINUED)
Hong Kong profits tax
Exceptforthefairvaluegainsandthedisposalgainsoffinancialassetsatfairvaluethroughprofitorlosswhich is subject to the income tax rateof16.5%,nootherprovision forHongKongprofits taxhasbeenmadeintheconsolidatedfinancialstatements.TheremainingprofitoftheGroupentitiesinHongKongismainlyderivedfromdividendincomeandinterestincomeofbankdeposits,whicharenotsubjecttoHongKongprofitstax.
9 EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the profit attributable to shareholders of the Company by theweightedaveragenumberofordinarysharesinissueduringtheperiodlesssharesheldforShareAwardScheme.
Six months ended 30 June2021 2020
Unaudited Unaudited
Profit attributable to shareholders of the Company (RMB’000) 5,290,297 5,127,482Weightedaveragenumberofordinarysharesinissuelessshares heldforShareAwardScheme(thousands) 3,882,578 3,882,578
Basic earnings per share (RMB per share) 1.363 1.321
Dilutedearningsper share is calculatedbyadjusting theweightedaveragenumberofordinary sharesoutstanding to assume conversion of all dilutive potential ordinary shares. For the six months ended 30 June 2021and30 June2020, therewasnodilutedpotentialordinary share.Thusdilutedearningsper shareequalledbasicearningspershare.
10 DIVIDENDS
Afinaldividend in respectof2020ofHK$0.60perordinary share, approximatelyHK$2,350,229,000(equivalenttoRMB1,963,028,000)wasdeclaredattheAnnualGeneralMeetingoftheCompanyon12May2021,ofwhichHK$20,682,000 (equivalent toRMB17,299,000)wasdeclared for sharesheldbyShareAwardScheme.ThefinaldividendhasbeendistributedoutoftheCompany’sretainedearnings.
An interimdividend in respectof the sixmonths ended30 June2021ofHK$0.50perordinary share,approximatelyHK$1,958,524,000 (equivalent toRMB1,629,218,000)was declared by theBoard ofDirectorsoftheCompany(sixmonthsended30June2020:RMB1,750,626,000).
(a) Trade receivablesmainlyarose fromsalesofproperties,provisionofpropertymanagement,city sanitationandcleaning services, provision of ecological landscaping services and intelligent home and decoration services. Tradereceivablesaresettledinaccordancewiththetermsstipulatedinrespectivesalesandpurchaseagreementsorservicesagreements.Asat30June2021and31December2020, theageinganalysisof the tradereceivablesbased on invoice date is as follows:
During theReviewPeriod, theGroup’s revenuewasRMB38,588million, representinganincrease of 15.1% when compared with RMB33,527 million in the corresponding period of 2020.During theReviewPeriod, theGroup’soperatingprofitandprofit for theperiodwereRMB12,405millionandRMB6,471million,representinganincreaseof1.4%and2.1%whencomparedwithRMB12,238millionandRMB6,339million in thecorrespondingperiodof2020 respectively.
During the Review Period, the profit attributable to shareholders of the Company were RMB5,290 million, representing an increase of 3.2% when compared with RMB5,127 million inthecorrespondingperiodof2020.BasicearningspersharewasRMB1.363(correspondingperiod of 2020: RMB1.321).
Land bank
TheGroupcontinued toadoptproactiveyetprudent land replenishment strategy in responsetothemarketconditions.Asat30June2021,theGrouphadalandbankwithatotalplannedGFAof52.95million sq.m. in85cities located inSouthernChinaRegion,EasternChinaRegion,WesternChinaRegion,CentralChinaRegion,HainanandYunnanRegion,NortheastChinaRegion,NorthernChinaRegion,HongKongandOverseas.TheaveragelandcostwasRMB3,700persq.m.,whichwascompetitive.
During the Review Period, the Group was dedicated to expanding its nationwide presence throughstrategicallyacquiring22new landparcelsbymeansof tender,auction, listing-for-sale, landapplicationandequityacquisitions, inwhich,ShaoxingcityofZhejiangProvincewas theGroup’s newly exploredmarket.The total plannedGFAof the newly acquiredprojectswas3.043millionsq.m.,ofwhich theGroup’s totalattributableplannedGFAwas2.203millionsq.m..ThetotalconsiderationattributabletotheGroupwasRMB10.547billion.
Western China RegionChengdu 1 156,125 156,125 0.194Xi’an 1 192,223 94,189 0.606Chongqing 3 463,345 415,415 0.783
Central China RegionXiangyang 1 63,800 63,800 0.097
Yunnan RegionYunnan 1 39,344 19,672 0.109
Northeast China RegionShenyang 1 76,700 76,700 0.673
Northern China RegionBeijing 1 57,638 57,638 1.530
Total 22 3,043,290 2,202,770 10.547
Property development and sales
During the Review Period, the revenue from recognised sales of property development of the Group was RMB32,092 million, representing an increase of 9.5% when compared with RMB29,310millioninthecorrespondingperiodof2020.TheincreasewasmainlyattributabletotheincreasedintotalrecognisedGFAsoldandrecognisedaveragesellingprice.ThetotalrecognisedGFAsoldwas1.98millionsq.m.,representinganincreaseof2.2%whencomparedwith thecorrespondingperiodof2020.The recognisedaverage sellingprice increasedby7.2%toRMB16,227persq.m.inthefirsthalfof2021fromRMB15,144persq.m.inthefirsthalf of 2020.
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DIVERSIFIED BUSINESSES
Property management
During theReviewPeriod, revenuefrompropertymanagementof theGroupwasRMB4,992million, representing an increase of 57.1% when compared with RMB3,177 million in the correspondingperiodof2020.The increasemainly represents: (i) the increase inoperatingincomefrom theacquisitionofMinruiPropertyManagement (Shanghai)Co. (“New CMIG PM”)during theReviewPeriodwhencomparedwithnil incomefromsuchbusiness in thesameperiodlastyearand(ii)operatingincomefromCMIGFuturelifePropertyManagementLimited (“CMIG PM”),whichwas acquired last year,were recorded in full during theReview Period, compared to only the operating income for the incomplete period after the acquisitionwasrecordedinthesameperiodlastyear.
OperatingprofitfrompropertymanagementbusinesswasRMB1,083million,representinganincrease of 50.7% when compared with RMB719 million in the corresponding period of 2020. Asat30 June2021, the totalGFAundermanagement increased fromapproximately353millionsq.m.asat30June2020toapproximately424millionsq.m..
OTHERS
Commercial management
During theReviewPeriod, theGroup’scommercial revenue (includinghoteloperationandproperty investment) amounted toRMB285million, representing an increase of 17.9%comparedwithRMB242millionforthesameperiodin2020.TheincreasebenefitedfromthecontainedCOVID-19outbreak and the corresponding rebound in thehotel business andleasingmarket,resultinginanincreaseinrevenue.
Environmental protection
During the Review Period, revenue from environmental protection of the Group was RMB1,219 million, representing an increase of 52.6% when compared with RMB799 million in thecorrespondingperiodof2020.Thegrowthwasmainlyattributable to thenumberofprojectsput intoproduction increased to37projects from26projects in thecorrespondingperiod of last year, and the economic recovery and gradual production resumption of corporationsunderthecontainedCOVID-19outbreak,resultinginacorrespondingincreaseindemand of waste treatment and hence the increase in the revenue of our environmental protection business.
Cost of sales
During the Review Period, cost of sales of the Group was RMB27,739 million, representing an increase of 26.0% when compared with RMB22,007 million in the corresponding period of 2020.The increasewasmainlydue to increaseof landcostandconstructioncost.Landcostincreasedby39.8% toRMB7,949millionwhencomparedwithRMB5,684million in thecorresponding period of 2020, while construction cost increased by 23.9% to RMB13,573 million when compared with RMB10,957 million in the corresponding period of 2020.
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Gross profit
DuringtheReviewPeriod,grossprofitoftheGroupwasRMB10,849million,representingadecreaseof5.8%whencomparedwithRMB11,520million in thecorrespondingperiodof2020.DuringtheReviewPeriod,grossprofitmarginoftheGroupwas28.1%,representingadecreaseof6.3percentagepointswhencomparedwith34.4%inthecorrespondingperiodof2020.Thedecrease ingrossprofit andgrossprofitmarginwasmainlyattributable to thedecreasedweightingsbyprojectswithhigherprofitability,withanincreaseintheproportionofprojectswithhigherunitlandcostwhichhadarelativelylowgrossprofitmargin.
Other gains, net
During theReviewPeriod, the other gains, net of theGroupwasRMB4,253millionrepresenting an increase of 50.2%when compared with RMB2,832mill ion in thecorrespondingperiodof2020,theincreasewasmainlyattributableto(i)thegainondisposalof subsidiaries increasedby128.3% toRMB4,137million fromRMB1,812million for thecorrespondingperiodin2020;(ii)thegainondisposaloffinancialassetsatfairvaluethroughprofit or loss increased by 125.0% to RMB56 million from RMB25 million for the correspondingperiod in2020;and (iii) thegainon remeasurementof relevant jointventurestransferredtosubsidiariesamountedtoRMB825millionforthecorrespondingperiodin2020,which did not occur during the Review Period.
Other income
DuringtheReviewPeriod,other incomeof theGroupwasRMB788million,representinganincreaseof1.3%whencomparedwithRMB778millioninthecorrespondingperiodof2020,whichwasmainlyattributabletotheincreaseofinterestincomeby0.7%toRMB645millionfromRMB641millioninthecorrespondingperiodof2020andalsotheincreaseofforfeiteddeposits by 103.6% to RMB7 million from RMB3 million in the corresponding period of 2020.
Selling and marketing costs
DuringtheReviewPeriod,sellingandmarketingcostsoftheGroupwasRMB1,273million,whichincreasedby33.8%comparedtoRMB952millioninthecorrespondingperiodof2020.Asapercentageof revenue, thesellingandmarketingcosts increased to3.3%(2.8% in thecorresponding period of 2020), the increase was mainly attributable to the increase of sales servicefeeresultingfromenhancingmarketingefforts.
Administrative expenses
During theReviewPeriod, administrativeexpensesof theGroupwasRMB1,899million,representing an increase of 10.8%when compared with RMB1,714mill ion in thecorrespondingperiodof2020.Administrativeexpensesasapercentageofrevenuedecreasedto4.9%(correspondingperiodof2020:5.1%),asaresultof the initialeffectof theGroup’scontrol and management of its expenses.
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Other expenses
During the Review Period, other expenses of the Group was RMB113 million, representing a decreaseof12.2%whencomparedwithRMB128millioninthecorrespondingperiodof2020,which was mainly attributable to the decrease of compensation and sundry expenses by 17.7% toRMB66millioncomparedtoRMB80millionincorrespondingperiodof2020.
Finance costs, net
TheGroup’s finance costsmainly consists of interest expenses on bank borrowings,syndicatedloans,otherborrowings,seniornotes,PRCcorporatebonds,CMBS,ABSandleaseliabilities less capitalised interests, gains recorded or losses incurred by foreign currency denominated borrowings less exchange losses capitalised and changes in fair value of derivative financial instruments. Interestonborrowings relating toprojectdevelopment iscapitalisedtotheextentitisdirectlyattributabletoaparticularprojectandusedtofinancethedevelopmentofthatproject.
During the Review Period, finance costs, net, of the Group was RMB1,239 million, representingadecreaseof7.7%whencomparedwithRMB1,342millioninthecorrespondingperiodof2020.ThedecreasewasmainlyattributabletotheincreaseofRMB1,138millioninexchange gains from foreign currency denominated borrowings, and partially offset by the decreaseofRMB495millioninfairvalueofderivativefinancialinstruments.
ExchangegainsfromforeigncurrencydenominatedborrowingsarisingfromtranslationoftheGroup’sborrowingsdenominatedinforeigncurrencieswasRMB388million,representinganincrease of 151.7% from losses of RMB750 million in the corresponding period of 2020, whichwas resulting from theappreciationofRenminbiagainstUnitedStatesdollars,HongKongdollarsandMacauPataca.
Fair value of derivative financial instruments represents the fair value of forward foreign exchangecontractscarriedoutby theGroup,and its fairvaluedecreasedby124.8%fromgainsofRMB397million in thecorrespondingperiodof2020 to lossesofRMB98million,whichwasresultingfromtheappreciationofRenminbiagainstUnitedStatesdollars.
Share of post-tax profits of investments accounted for using the equity method
During the Review Period, on balance of the factors discussed above, profit attributable to shareholders of the Company was RMB5,290 million, representing an increase of 3.2% when compared with RMB5,127 million in the corresponding period of 2020.
LIQUIDITY, FINANCIAL AND CAPITAL RESOURCES
Cash position and fund available
Asat30June2021, thetotalcashandbankbalancesof theGroupwereRMB57,160million(31December 2020: RMB50,865million), comprising cash and cash equivalents ofRMB46,512million (31December 2020:RMB41,926million) and restricted cash ofRMB10,648million(31December2020:RMB8,939million).
Bank borrowings and other borrowingsWithin1year 27,893 29,107Over1yearandwithin2years 14,489 20,739Over2yearsandwithin5years 21,546 16,515Over5years 3,912 3,778
Asat30June2021,theGroup’sbankborrowings(includingsyndicatedloans)ofRMB45,849million(31December2020:RMB42,518million)andotherborrowingsofRMB9,713million(31December2020:RMB11,283million)weresecuredbyitsbankdeposits, landuserights,self-usedproperties, trade receivables,completedpropertiesheld for sale,propertiesunderdevelopment,investmentproperties,thesharesofcertainsubsidiariesandequityinterestofajointventure.
The senior noteswere jointly guaranteedby certain subsidiaries of theGroup andweresecuredby thepledgesof their shares.Thenetassetsof thesesubsidiarieswereRMB2,521millionasat30June2021(31December2020:RMB2,957million).
Thegearing ratio is the ratioofnetborrowings (totalborrowings less total cashandcashequivalentsand restrictedcash) to total equity.Asat30 June2021, thegearing ratiowas45.3%(31December2020:61.0%).
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Currency risk
TheGroupconductsitsbusinessprimarilyinRenminbi.CertainbankdepositsandbankloansweredenominatedinHongKongdollars,UnitedStatesdollars,MacaoPatacaandMalaysianRinggit, and theCompany’s seniornoteswasdenominated inUnitedStatesdollars.Sinceearly 2016, the Group has adopted a hedging policy and entered into capped forward contracts tomitigate certainof its foreigncurrencyexposure inUnitedStatesdollarsdenominatedindebtednessandachievebettermanagementoverforeignexchangerisk.Theobjectiveofthearrangement is to minimise the volatility of the RMB cost of highly probable forecast repayments of debts.Other than those disclosed, theGroupdoes not have anymaterialexposures to foreign exchange fluctuations.
Asat30June2021, theGrouphadcappedforwardcontractsofUSD800million.DuringtheReviewPeriod,theGrouprecordedRMB98millionfairvaluelosses(correspondingperiodof2020: RMB397 million fair value gains) in derivative financial instruments.
Cost of borrowings
During the Review Period, the total cost of borrowings of the Group was RMB3,556 million, representing a decrease of 1.2% when compared with RMB3,600 million in corresponding periodof2020.Thedecreasewasmainlyattributable to lowerborrowing rateduring theReviewPeriod.TheGroup’seffectiveborrowingratefortheperiodwas5.96%(correspondingperiodof2020:6.78%).
Financial guarantee
TheGrouphascooperatedwithcertainfinancialinstitutionstoarrangemortgageloanfacilityfor its purchasers of property and provided guarantees to secure obligations of such purchasers for repayments.Asat30 June2021, theoutstandingguaranteesamounted toRMB47,653million (31December2020:RMB51,378million).Suchguaranteeswillbedischargeduponearlierof(i)issuanceoftherealestateownershipcertificatewhichwillgenerallybeavailablewithinoneyearafter thepurchasers takingpossessionof the relevantproperty;and (ii) thesatisfaction of relevant mortgage loans by the purchasers.
Pursuant to the terms of the guarantees, upon default in mortgage payments by these purchasers, the Group is responsible for repaying the outstanding mortgage principals together withanyaccrued interestsandpenaltiesowedby thedefaultedpurchasers to thebanks,andtheGroupisentitled to takeover the legal titleandpossessionof therelatedproperties.TheGroup’sguaranteestartsfromthedatesthemortgageesgrantthemortgageloans.Noprovisionhas been made for the guarantees as the management is of the view that the net realisable value of the related properties can cover the repayment of the outstanding mortgage principals together with the accrued interests and penalties in case of default in payments.
Several subsidiaries of the Group and associate counter parties have provided certain guarantees in proportion of their shareholding in certain associate in respect of loan facilities amountingtoRMB2,564million(31December2020:RMB2,243million).TheGroup’sshareoftheguaranteesamountedtoRMB1,232million(31December2020:RMB1,109million).
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Several subsidiariesof theGroupand jointventurecounterpartieshaveprovidedcertainguarantees inproportion to their shareholdings incertain jointventures in respectof loanfacilitiesamounting toRMB13,304million (31December2020:RMB10,390million).TheGroup’s share of the guarantees amounted toRMB8,101million (31December 2020:RMB5,111 million).
Asat30June2021,theCompanyhasprovidedcertainguaranteestocertainindependentthirdparties in respectof loan facilities amounting toRMB2,190million (31December2020:RMB1,677 million).
Commitments
Asat30June2021,thecommitmentsoftheGroupinconnectionwiththepropertydevelopmentactivitieswereRMB29,473million(31December2020:RMB23,314million).TheGrouphasalsocommittedtopayoutstandinglandpremiumresultingfromlandacquisitionsintheamountofRMB6,079million (31December2020:RMB8,244million).Additionally, theGroup’scapital commitments in respect of purchases of property, plant, equipment amounted toapproximatelyRMB689million(31December2020:RMB829million).
Significant Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures, and Future Plans for Material Investments or Capital Assets
On24 June 2020,A-City submitted a listing application form (FormA1) to theStockExchange toapply for the listingof,andpermission todeal in, theA-Cityshares (ordinarysharesofHK$0.01each)onthemainboardoftheStockExchange.ItisintendedthatA-Citywillconductanofferingof itsnewshares inconnectionwith theListing. It is intended thatqualifyingshareholderswillbeprovidedwithanassuredentitlement to theA-CitySharesunder theshareofferof theproposedspin-off, subject tocertainconditions.Detailsof suchassured entitlement have not yet been finalised and theCompanywillmake furtherannouncement(s) in this regardasandwhenappropriate.Uponcompletionof theproposedspin-off and listing, theCompany is expected tohavean interestofnot less than50% inA-CityandA-Citywill remainasa subsidiaryof theCompany.Fordetails,please refer toannouncementoftheCompanydated24June2020.
On 11 February 2021, pursuant to further cooperation instruments entered into by anindependent thirdpartyacquirer (the“Acquirer”), the relevant subsidiariesof theCompanyandtherelevantprojectcompaniesoftheCompany,pursuanttowhichtheCompanydisposedof its interest in certainproject companies to theAcquirer, the total commitmentof theAcquirer in the project companies amounted toRMB6,072million, please refer to theannouncementsoftheCompanydated24December2020and11February2021.
On28May2021,A-Livingbeinga limited liabilitycompanyestablished in thePRCon26June1997andconvertedintoajointstockcompanywithlimitedliabilityon21July2017,thesharesofwhichare listedon theMainBoardof theStockExchange (stockcode:3319),entered into a placing agreement with a placing agent pursuant to which the placing agent shallprocureona fullyunderwrittenbasis,not less thansix (6)placees to subscribe foranaggregateof86,666,800newHshares inA-Livingat theplacingpriceofHK$37.60perHshare.
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Uponcompletionoftheplacing,atotalof86,666,800HsharesofA-Livingwereallottedandissued tonot less thansix (6)placeesat theplacingpriceofHK$37.60perHshare,and theissuednumberof sharesofA-Living increased from1,333,334,000shares to1,420,000,800shares and the shareholding interest inA-Livingownedby theCompanydecreased from54.09%to50.80%.Furthermore,uponcompletionoftheplacing,A-Livingcontinuestobeasubsidiaryof theCompany.Theoverallnetchangeof theCompany’sownership interest inA-LivingdidnotresultinthelossofcontrolinA-Living,andthefinancialresultsofA-Livingcontinues to be consolidated in that of the Company.
Theplacingconstitutesadeemeddisposalof theCompanyunderChapter14of theListingRules.Details of the placing of newH shareswere set out in the announcement of theCompanydated28May2021.
Save as disclosed in this announcement, there were no other significant investments held, no material acquisitionsordisposalsof subsidiaries, associatesand jointventuresduring theperiod, nor was there any plan authorised by the Board for other material investments or additions of capital assets at the date of this announcement.
Events after the Review Period
(a) On15July2021, theCompany issuedseniornotesat5.5%withanaggregatenominalvalueofUS$314,000,000(equivalenttoapproximatelyRMB2,035,819,000)atfacevalue.The net proceeds, deducting the issuance costs, of approximatelyUS$311,000,000(equivalent toapproximatelyRMB2,018,530,000).Theseniornoteswillmatureon21April2025.
(b) On19 July2021, theCompany redeemedall theoutstanding2018SeniorNotes at aredemptionpriceofUS$600,000,000(equivalenttoapproximatelyRMB3,882,540,000).
(c) On15 July 2021, FarsailGoldman InternationalLimited (“Farsail Goldman”), anindirectwholly-owned subsidiary of theCompany, andShenzhenLvjinEnterpriseManagementCo.,Ltd. (“Shenzhen Lvjin”), an indirectwholly-owned subsidiaryofGreenlandHoldingsGroupCompanyLimited,entered intoa share transferagreement,pursuant towhichFarsailGoldmanagreed topurchase,andShenzhenLvjinagreed tosell, anaggregateof50,000,000overseas listed sharesofA-LivingatHK$32per share,foratotalconsiderationofHK$1,600million(the“Purchase”).Followingcompletionofthe Purchase, the Company is interested in 771,256,750 overseas listed shares of A-Living, representing approximately 54.31%of the total issued share capital ofA-Living.
Save as disclosed above, the Group did not have any other material event after the Review Period.
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Employees and remuneration policy
Asat30June2021,theGrouphadatotalof83,463employees,amongwhich406wereseniormanagement and 2,001 were middle management. By geographical locations, there were 83,300employees inmainlandChina, 77 employees inHongKongand86employees inoverseas. For the six months ended 30 June 2021, the total remuneration costs, including directors’ remuneration,wereRMB3,841million (correspondingperiodof2020:RMB3,128million).
TheGroup remunerates its employees is reference to themarket levels, individualperformance and contributions. Bonuses are also distributed based on the performance of employees.TheGroupalsoprovidesacomprehensivebenefitpackageandcareerdevelopmentopportunities, including retirement schemes, medical benefits, and both internal and external trainingappropriatetotheemployees’needs.
The impact of the outbreak of COVID-19
During the Review Period, many countries around the world continued to be affected by the rampantoutbreakofCOVID-19,andthepaceofrecoverywasinconsistentacrosseconomiesas many countries around the world stepped up vaccination efforts and some countries graduallyliftedconfinementmeasures.WiththeCentralGovernmenteffectivelycoordinatingtheprevention and control of theoutbreak,China’s economy showeda strong recovery.DuringtheReviewPeriod,China’sGDPincreasedby12.7%comparedtothatoflastyearandtheCentralGovernmentexpectsGDPgrowthfortheyeartoreach8%.
TheGroupcontinues tomonitor thesituationof thepandemicand isactivelyaddressing itsimpactontheGroup’sfinancialpositionandresultsofoperations.DuringtheReviewPeriod,COVID-19didnothaveanymaterialadverse impacton the financialpositionandoperationresults of the Group.
Outlook
In the second half of 2021, as various countries around the globe have progressively vaccinatedtheircitizensandsomecountriesgraduallylifttheclosuremeasures,theeconomicactivitiesof thecountriesaround theworldandallwalksof lifeareexpected tograduallyreturntonormalinanorderlymanner.InChina,accordingtotheCentralGovernment’s“14thFive-YearPlan”, thehealthydevelopmentof the realestatemarket isclosely related to thepeople’s livelihoodand the long-termsustainabledevelopmentof theeconomy.TheCentralGovernmentwill continue to adhere to theprincipleof “houses are for living in, not forspeculation”andproperly implement the long-termmechanismof“stabilising landprices,housingpricesandexpectations”onthebasisofrespectingmarketregulationsandimprovingthe construction of relevant systems.
TheGroupfirmlybelievesin,andwilladheretothebusinessmodelof“focusingonpropertydevelopment, supportedbya synergyofdiversifiedbusinesses”.Through theeffortsofallemployees, the overall business will be in steady development, which will further increase the brand awarenessofAgile across thenation andmaintain its position in the competitivemarket.
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INTERIM DIVIDEND
TheBoardhas declared an interimdividendofHK50.0 cents (2020:HK50.0 cents) perordinary share payable in cash to shareholders of the Company. Interim dividend will be payableonoraboutThursday,16September2021totheshareholderswhosenamesappearontheregisterofmembersoftheCompanyonThursday,9September2021.
CLOSURE OF REGISTER OF MEMBERS AND OTHER KEY DATES
To determine the shareholders’ entitlement to the interim dividend
Ex-entitlementdateforinterimdividend : Friday, 3 September 2021Latesttimeforlodgingtransfer documents of shares
: 4:30p.m.onMonday,6September2021
Period of closure of register of members : Tuesday,7September2021toThursday, 9September2021(bothdatesinclusive)
Record date : Thursday,9September2021
Toqualifyfortheinterimdividend,allproperlycompletedtransferformsaccompaniedbytherelevant sharecertificatesmustbe lodgedwith theCompany’sbranch share registrar andtransferofficeinHongKong,TricorInvestorServicesLimited,atLevel54,HopewellCentre,183Queen’sRoadEast,HongKongforregistrationnotlater thanthelatest timeforlodgingtransfer documents of shares set out above.
REVIEW OF INTERIM RESULTS
TheCompany’sauditcommitteehasreviewedtheunauditedinterimresultsof theGroupforthe six months ended 30 June 2021.
TheinterimresultsoftheGroupforthesixmonthsended30June2021hasnotbeenauditedbut has been reviewed by PricewaterhouseCoopers, the auditor of the Company, in accordance withHongKongStandard onReviewEngagements 2410 “Reviewof InterimFinancialInformationPerformedby the IndependentAuditorof theEntity” issuedby theHongKongInstituteofCertifiedPublicAccountants.
COMPLIANCE WITH THE MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS
TheCompanyhasadopted itsowncode for securities transactionsbydirectors (“Securities Dealing Code for Directors”),whichisontermsnolessexactingthantherequiredstandardassetoutintheModelCodeforSecuritiesTransactionsbyDirectorsofListedIssuersassetout inAppendix 10 to theListingRules. In response to enquiriesmade, allDirectorsconfirmed that they have complied with the Securities Dealing Code for Directors during the six months ended 30 June 2021.
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COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE
During the six months ended 30 June 2021, the Company has complied with all code provisionsoftheCorporateGovernanceCodeandCorporateGovernanceReport(“Corporate Governance Code”)containedinAppendix14totheListingRulesexceptforthedeviationasspecified with considered reasons below.
The code provisionA.2.1 of theCorporateGovernanceCode requires that the roles ofchairman and chief executive should be separate and should not be performed by the same individual.However, inviewof thepresentcompositionof theBoard,ChenZhuoLin’s in-depthknowledgeof theoperationsof theGroupandof the industry,hisextensivebusinessnetworkandconnections in thesectorand thescopeofoperationsof theGroup, theBoardbelievesthatChenZhuoLin,inhisdualcapacityastheChairmanoftheBoardandPresident,willprovidestrongandconsistent leadership for thedevelopmentof theGroup.TheBoardalso believes that this structure is in the best interest of the Company and will not impair the balanceofpowerandauthorityof theBoardandsucharrangementwillbesubject to reviewfrom time to time.
PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES
On12January2021,GuangzhouPanyuAgileRealtyDevelopmentCo.,Ltd.^(廣州番禺雅居樂房地產開發有限公司) (an indirectwholly-ownedsubsidiaryof theCompany incorporatedin China) redeemed all of its outstanding domestic corporate bonds in an aggregate principal amountofRMB1,600milliondue2021withaninitialcouponrateof4.7%attheredemptionprice of RMB100 each, being its face value, plus accrued and unpaid interests.
Save as disclosed above, during the six months ended 30 June 2021, neither the Company nor anyofitssubsidiariespurchased,soldorredeemedanyoftheCompany’slistedsecurities.
On19July2021,theCompanyredeemedallofitsoutstanding8.5%seniornotesdue2021inanaggregateprincipalamountofUS$600millionat the redemptionpriceequal to100%ofthe principal amount plus accrued and unpaid interests.
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PUBLICATION OF INTERIM RESULTS AND INTERIM REPORT ON THE WEBSITES OF THE COMPANY, THE STOCK EXCHANGE AND SINGAPORE EXCHANGE SECURITIES TRADING LIMITED
ThisannouncementispublishedontherespectivewebsitesoftheCompany(www.agile.com.cn), theStockExchange(www.hkex.com.hk)andSingaporeExchangeSecuritiesTradingLimited(www.sgx.com).The interimreportof theCompany for thesixmonthsended30June2021containingall the information requiredunder theListingRuleswill bedispatched to theCompany’sshareholdersandwillbepostedontheabovewebsitesinduecourse.
ByOrderoftheBoardAgile Group Holdings Limited
CHEN Zhuo LinChairman and President
HongKong,18August2021
As at the date of this announcement, the Board comprises twelve members, being Mr. Chen Zhuo Lin* (Chairman and President), Mr. Chan Cheuk Yin** (Vice Chairperson), Madam Luk Sin Fong, Fion** (Vice Chairperson), Mr. Chan Cheuk Hung*, Mr. Huang Fengchao*, Mr. Chen Zhongqi*, Mr. Chan Cheuk Hei**, Mr. Chan Cheuk Nam**, Dr. Cheng Hon Kwan#, Mr. Kwong Che Keung, Gordon#, Mr. Hui Chiu Chung, Stephen# and Mr. Wong Shiu Hoi, Peter#.
