Glory Health Industry (2329) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was RMB2,705.3 million, up 7.9% year-over-year; property development revenue was RMB2,116.7 million, up 3.7%.

• Gross profit reached RMB555.6 million, a significant turnaround from a gross loss in 2023 due to higher-margin property sales.

• Total comprehensive loss widened to RMB1,415.5 million from RMB593.5 million in 2023.

• Contracted sales totaled RMB3,262.4 million, with Beijing, Xi'an, and Qidong as key contributors.

• The company is accelerating its transformation from real estate to the health industry.

Financial highlights

• Cost of sales and services decreased 15.9% to RMB2,149.8 million.

• Finance costs surged 89% to RMB1,061.7 million due to reduced capitalization of interest.

• Cash, restricted deposits, and bank balances stood at RMB201.9 million at year-end.

• Net operating cash flow was RMB679.5 million, up from RMB512.9 million in 2023.

• No dividend was proposed for 2024.

Outlook and guidance

• The real estate market remains in a trough, with continued policy support but persistent capital pressure and low sales.

• The company expects urban renewal projects to generate new cash inflows from 2025.

• Focus will remain on debt reduction, asset disposal, and business transformation toward health industry services.