In year 2023, China’s real estate market continued to be sluggish. The industry is suffering from serious destocking difficulties. Although the government has introduced various support policies, the confidence of home buyers is still insufficient. The financing environment faced by private real estate companies has not actually improved. The market as a whole continues the downward pressure since last year, and industry confidence is at a low level. The industry continues to face liquidity pressure, and ensuring the delivery of buildings and resolving liquidity risks remain top priorities in the industry.
 
Although steady development has always been the Group’s priority strategy, the Group was not immune but to do its best amid the industry’s continued sluggish environment. In year 2023, the Group recorded a total contracted sales of RMB750 million, a decrease of 50% compared to last year; the turnover of properties delivered was RMB1,665.5 million, a decrease of 21% compared with last year; the loss attributable to shareholders was approximately RMB3,489.4 million, more or less same as last year.
 
Since late June 2022, after failing to repay certain due loans and notes, the Group has also encountered financial difficulties in fulfilling its due liabilities. In order to implement an orderly managed restructuring plan with creditors, the Company has applied to the Bermuda Court in July 2022 for the appointment of a “light touch” provisional liquidator for the purpose of debt restructuring which was approved by the Bermuda Court on 15 August 2022 (Bermuda time). The Company will continue to publish relevant announcements to provide the latest news to the shareholders and potential investors of the Company.

 
FUTURE OUTLOOK

To say from macroscopic view, uncertainty will remain a theme. There is still no end in sight for the Russia-Ukraine war. The extent and frequency of interest rate cuts by the Federal Reserve are still unclear. The momentum of world economic and trade growth has weakened. The momentum of Western countries, led by the United States, to suppress China has not weakened. China’s development has entered a period of transformation, uncertainty and unpredictable factors increasing. In terms of China’s real estate industry, the government mainly emphasizes “treating both the symptoms and root causes to resolve real estate risks, accelerating the construction of a new model of real estate development, and promoting the transformation of urban villages”. On the demand side, faced with uncertainties in housing prices and income, it is expected that home buyers will still need time to consider the decision of buying property in the short term, we are still not optimistic about the demand for property throughout the year.
 
In terms of supply, it is expected to still be in a phase of gradual reduction in response to the difficulty of market de-escalation, which will be conducive to the long-term rebalancing of real estate supply and demand. In terms of development model, the high turnover model is a thing of the past, and it is expected that new models will still take time to explore to meet the requirements of high-quality development.
 
The real estate industry has always been a major industry in China’s economy. The 1.4 billion Chinese people’s yearning for a better life has not changed. The Group still has confidence in the long-term development of the industry. In year 2024, the group will continue to respond calmly, resolve risks, make good use of the project whitelist support policy to ensure the stability of the group’s operations; make good use of the urban village renovation support policy, promote the construction progress of the Fengwei Village old renovation project in Huangpu District, Guangzhou, and strive to achieve sales collect payments; continue to resolutely carry out asset disposal jobs, seize market opportunities, and vigorously promote cash collection. At the same time, the Group continues to maintain active communication with creditors and promotes debt restructuring to achieve the best interests of creditors and stakeholders.

 
ACKNOWLEDGEMENTS

Being the chairman of the Board, I would also like to express my sincere gratitude to all our staff, customers, suppliers and business associates, creditors and shareholders for their unwavering assistance and support to the Group in the past years.