Guangdong Land Holdings (124) H1 2024 earnings summary

Executive summary

• Revenue surged 188.0% year-over-year to HK$2,804 million for the six months ended June 30, 2024, mainly due to increased property sales volume.

• Net loss attributable to shareholders widened by 8.4% year-over-year to HK$217 million, impacted by lower gross profit margins, reduced fair value gains, and higher finance costs.

• No interim dividend declared for the period, compared to HK3.00 cents per share last year.

• Sales and delivery totaled 152,000 sqm and 143,000 sqm, respectively, across multiple cities in the Greater Bay Area.

• Key projects in Guangzhou, Shenzhen, and other core cities maintained strong sales and high de-stocking rates, with several projects recognized for quality and delivery.

Financial highlights

• Gross profit dropped 48.2% year-over-year to HK$116 million due to lower-margin project deliveries.

• Fair value gains on investment properties plummeted 99.9% to HK$0.19 million from HK$259 million.

• Net finance costs increased by HK$70.96 million year-over-year due to cessation of capitalisation.

• Net asset value per share decreased 5.1% to HK$2.79 as of June 30, 2024.

• Cash and cash equivalents rose 4.2% to HK$4,257 million.

Outlook and guidance

• Real estate market remains in a downward trend with slow recovery; policy support is expected to continue focusing on destocking and stabilizing demand.

• Projects in the Greater Bay Area are expected to benefit from regional economic growth and policy support.

• The company aims to maintain stability, complete ongoing projects, and explore new high-quality opportunities.

• The company will continue to focus on core cities in the Greater Bay Area, leveraging local government cooperation and professional teams.

• Group remains confident in long-term prospects despite market challenges.