C&D International Investment Group (1908) H1 2024 earnings summary

Executive summary

• Revenue rose 34.5% year-over-year to RMB32,753.30 million, driven by increased property development sales, but profit attributable to equity holders fell 36.4% to RMB817.07 million due to margin compression and higher expenses.

• Contracted sales attributable to shareholders dropped 31.9% to RMB50.87 billion, with contracted GFA down 26.3% year-over-year.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit increased 5.1% to RMB3,902.75 million, but gross margin declined to 11.92% from 15.25% due to lower-margin project deliveries.

• Basic EPS was 47.30 RMB cents, down from 80.09 RMB cents year-over-year.

• Cash at banks and on hand was RMB49,217.54 million as of 30 June 2024.

• Net debt increased to RMB43,958.55 million, with net debt to equity ratio at 45.72% (up from 33.64% at year-end 2023).

• Gearing ratio rose to 96.9% from 93.2% at year-end 2023.

Outlook and guidance

• The company will focus on strategic regional development, inventory liquidity, and product innovation to adapt to ongoing industry transformation.

• Emphasis will be placed on prudent investment, sales-driven strategies, and enhancing operational efficiency.

• Plans to enhance product competitiveness through R&D and innovation, and to build an integrated industry chain ecosystem.

• The company expects market risks to gradually dissipate as policy optimization continues, aiming for stable and sustainable growth.