CIFI Holdings (Group) Co (884) H1 2024 earnings summary

Executive summary

• Contracted sales for the six months ended 30 June 2024 were RMB20.31 billion, down 51.6% year-over-year due to a challenging real estate environment.

• Recognised revenue was RMB20.21 billion, a 35.5% decrease year-over-year; net loss attributable to equity owners was RMB4.94 billion, improved from RMB8.97 billion loss last year; basic and diluted loss per share was RMB0.47.

• The Group delivered approximately 35,000 housing units, ranking in the top 20–22 for units delivered among Chinese real estate enterprises.

• No new land acquisitions in H1 2024; total land bank stood at 34.3 million sq.m. as of 30 June 2024.

• No interim dividend declared for the period.

Financial highlights

• Gross profit for H1 2024 was RMB2.71 billion, down 45.4% year-over-year; gross margin declined to 13.4% from 15.8%.

• Core net loss attributable to equity owners was RMB3.40 billion, compared to RMB1.76 billion in the prior year period.

• Cost of sales was RMB17.50 billion, down 33.6% year-over-year.

• Property management and other services revenue grew 9.1% to RMB3.21 billion; investment property rental and related income rose 10.1% to RMB788.7 million.

• Finance costs expensed increased to RMB1.84 billion from RMB1.42 billion year-over-year.

Outlook and guidance

• Market expected to remain in a stabilization phase, with further policy support anticipated to boost demand and narrow sales declines.

• Real estate development investment likely to stay at low levels due to industry downturn and cash flow pressures.

• The Group will focus on accelerating sales, cash collection, and cost control, while seeking holistic solutions for offshore liquidity issues and asset disposals.