Beijing North Star Company (588) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was RMB7,152 million, down 54.6% year-over-year, mainly due to a sharp decline in real estate development revenue.

• Loss attributable to ordinary shareholders was RMB2,992 million, compared to a profit of RMB140 million in 2023.

• No final dividend proposed for 2024.

• Convention and exhibition (including hotels) and commercial properties segment saw revenue and profit growth, while real estate development suffered significant losses.

Financial highlights

• Operating loss for 2024 was RMB2,491 million, compared to an operating profit of RMB1,901 million in 2023.

• Net loss for the year was RMB3,586 million, versus a net profit of RMB10 million in 2023.

• Basic and diluted loss per share was RMB0.8888, compared to earnings per share of RMB0.0417 in 2023.

• Gross margin turned negative, with a gross loss of RMB698 million in 2024 versus a gross profit of RMB3,554 million in 2023.

• Provision for impairment of inventories for real estate projects was RMB2.545 billion.

Outlook and guidance

• Plans to focus on collaborative development, reform, and innovation, with emphasis on digital transformation and business integration.

• 2025 targets include new/resumed construction area of 1,093,800 sqm, completed area of 223,000 sqm, and sales area of 463,100 sqm with contracts worth RMB5.51 billion.

• Convention and exhibition segment to strengthen brand and expand international presence.