CIFI Group's operating revenue last year was 71.833 billion, and the net profit

Benefiting from a full year of dedicated delivery efforts,CIFI Holdings (00884.HK) has shown signs of improvement in its operating income.

On March 28,CIFI Holdings released its annual performance announcement for 2023,indicating that during the reporting period,it achieved an operating income of 71.833 billion yuan,a year-on-year increase of 51.4%.However,the net profit attributable to the parent company and the core net profit attributable to the parent company were losses of 8.983 billion yuan and 3.933 billion yuan,respectively,reducing the losses by approximately 4.066 billion yuan and 1.269 billion yuan compared to 2022,narrowing the loss margin.

Throughout 2023,CIFI's confirmed revenue from property sales was about 63.233 billion yuan,a significant increase of 61.6% year-on-year,mainly due to the increase in delivery area throughout 2023,which rose by about 49%.

The year 2023 marked the year with the most deliveries since CIFI's establishment,with over 40 billion yuan invested in construction costs and the completion of 118,000 new home deliveries; it is expected to deliver approximately 78,000 units in 2024.CIFI Holdings' Chairman,Lin Zhong,emphasized in the annual report that 2024 will also be a year of great delivery pressure.

In 2023,CIFI achieved a contract amount of 70 billion yuan,with a collection rate exceeding 100%.At the end of the reporting period,CIFI's total land reserve area was 36.3 million square meters,with a total unsold value exceeding 300 billion yuan; the proportion in first and second-tier cities is about 74%,which can still support sustainable operations.

In addition,CIFI has also made progress in non-development businesses.By the end of 2023,it achieved a revenue of 1.592 billion yuan from held properties,a year-on-year increase of 28%; the total valuation of held properties,including 30 shopping centers,is about 46 billion yuan,of which 15 have been opened.The property segment,Yongsheng Service,achieved an operating income of 6.54 billion yuan during the reporting period,a year-on-year increase of 4.2%.

At the same time,CIFI's debt pressure has also been reduced.By the end of 2023,CIFI's total interest-bearing debt was about 92.281 billion yuan,a reduction of 16.169 billion yuan from 2022,a reduction of about 15%.However,overall,CIFI still faces significant debt pressure.

In terms of debt restructuring,at the beginning of this year,CIFI proposed a restructuring framework of "short-term debt reduction,medium-term debt-to-equity conversion,and long-term debt preservation and interest rate reduction," and has reached a directional consensus with creditors,aiming to reduce debt by about 3.3 to 4 billion US dollars.

CIFI stated that since the initiation of overseas debt restructuring in November 2022,it has taken multiple self-help measures to promote orderly handling of debt issues.In 2023,through equity swaps with partners and exits from cooperative projects,it completed the disposal of assets in several projects such as Shijiazhuang,Guangzhou,and Tianjin,to activate funds and support delivery and operations.

In terms of domestic debt,CIFI completed the extension of 4 domestic debts totaling 7.18 billion yuan in 2023.In March 2024,CIFI once again completed the extension of 2 domestic debts totaling 2.448 billion yuan,with an extension period of 3 years.In the pursuit of new loan financing,as of March 27th,CIFI has had 68 projects nationwide included in the "white list," with some projects already beginning to connect with financing needs.Eight projects located in cities such as Beijing,Guangzhou,Xiamen,Dongguan,Zhengzhou,Luoyang,and Kunming have obtained financial support from banks including Bank of Communications,CITIC,Ping An,Industrial Bank,Evergrowing Bank,Huaxia Bank,and Bank of China by adjusting repayment schedules,reducing interest rates,and swapping existing financing.