Ganglong China Property Group (6968) H2 2024 earnings summary

Executive summary

• Revenue declined 53% year-on-year to RMB8,254 million for 2024, with a net loss of RMB982 million versus a net profit of RMB718 million in 2023.

• Contracted sales reached RMB5,409 million with 529,789 sq.m. sold at an average price of RMB10,210 per sq.m.

• Gross loss of RMB125 million and gross loss margin of 2% compared to a 14% gross profit margin in 2023, mainly due to lower selling prices.

• No dividend recommended for 2024.

Financial highlights

• Selling and marketing expenses and general/admin expenses decreased by 50% and 32% year-on-year, respectively.

• Cost of sales was RMB8,380 million, including RMB610 million provision for impairment.

• Net finance costs increased 13% year-on-year to RMB89 million due to lower average cash balances.

• Income tax expenses dropped 63% to RMB303 million, in line with lower revenue.

• Total cash (including restricted and pledged) was RMB839 million at year-end, down from RMB1,836 million.

Outlook and guidance

• Management expects continued challenges in the real estate sector, emphasizing stability and quality.

• Focus remains on accelerating property sales, cost control, and seeking new financing.