2022-09-29-港交所-三巽集团_中期报告2022_86页_3mb

Summary of 2022 Mid-Year Report of Sanxun Holdings Group Limited

Corporate Information:
Sanxun Holdings Group Limited is a real estate developer headquartered in Shanghai with its main business operations in the Yangtze River Delta region of China. The Group listed on the Hong Kong Stock Exchange in July 2021 with a stock code of 6611.

Business Review:
The Group recorded a significant decrease in sales for the first half of 2022, with an overall decrease of 16.6% in revenue and 70.6% in contract sales year-on-year. The market presented challenges, particularly in the real estate sector, but the Group maintained stable operations through strategic management and adherence to quality control and risk resistance. The outlook for 2022 indicates gradual market recovery as supportive policies from both state and local governments gain momentum, with a shift from deleveraging to stabilization in the real estate market.

Financial Performance Highlights:
The Group’s profit for the six months ending June 2022 saw a 83.1% decrease year-on-year to RMB31.3 million. Key indicators remained healthy, including a net cash position, a cash-to-short-term borrowing ratio of 1.4 times, and compliance with the "three red lines." The Group focused on cost control and working capital management to ensure financial resilience.

Corporate Governance:
The Group maintains high corporate governance standards, adopting the Hong Kong Listing Rules and other compliance protocols. The Board of Directors includes executive and independent non-executive directors, with oversight committees covering audit, remuneration, and nomination.

Financial Position:
As of June 30, 2022, the Group managed debt effectively with net gearing ratios at a healthy level. Cash and bank balances stood at approximately RMB1,292.4 million, down from RMB1,694.1 million as of the same date in 2021, reflecting effective resource allocation.

Risk Management:
The Group addressed credit and foreign exchange risks through stringent internal controls and diversification. The policy environment in China’s real estate sector is steady, with financial authorities focusing on stability and long-term growth.

In conclusion, Sanxun Holdings Group Limited demonstrated commitment to resilience amid market fluctuations, focusing on strategic adaptation and financial discipline while maintaining governance best practices.