China SCE Group (1966) H2 2024 earnings summary

Executive summary

• Revenue surged 94.5% year-over-year to RMB40.77 billion, mainly from property sales, but contracted sales dropped 59.6% to RMB11.23 billion, reflecting a challenging market.

• Loss attributable to owners narrowed slightly to RMB7.86 billion, with a total comprehensive loss of RMB8.33 billion.

• Gross profit margin improved to 15.3% from 12.6% due to higher-margin project deliveries.

Financial highlights

• Gross profit rose 137% year-over-year to RMB6.24 billion.

• Net gearing ratio increased sharply to 296.8% from 143.8% last year.

• Cash and cash equivalents stood at RMB2.92 billion, while total borrowings were RMB35.42 billion.

• No final dividend declared for 2024.

Outlook and guidance

• Management expects the real estate market to gradually bottom out, supported by ongoing policy easing and demand for quality housing.

• Focus remains on boosting pre-sales, improving project management, and enhancing product quality.

• Plans to deepen shopping mall operations and property management, and to accelerate asset disposals for liquidity.