Guangdong Land Holdings (124) H2 2023 earnings summary

Executive summary

• 2023 revenue reached HK$3.88 billion, up 181.4% year-over-year, driven by increased GFA of properties sold.

• Net loss attributable to shareholders was HK$2.44 billion, mainly due to property market downturn and inventory impairment of HK$2.41 billion.

• No final dividend was proposed for 2023.

• Total assets remained stable at HK$48.9 billion; net asset value per share dropped to HK$2.94 from HK$4.55.

Financial highlights

• Gross profit fell 32.4% year-over-year to HK$371 million, with gross margin pressured by market conditions.

• Inventory impairment provision of HK$2.41 billion was a major non-recurring item.

• Investment property fair value gains decreased to HK$230 million from HK$763 million year-over-year.

• Basic loss per share was HK(142.85) cents, down from earnings of HK22.94 cents in 2022.

• Net cash inflow from operating activities was HK$3,607 million, reversing a net outflow in 2022.

Segment performance

• Contracted property sales reached 274,000 sqm, with 222,000 sqm delivered in 2023.

• Property development revenue rose to HK$3,843 million, with a segment loss of HK$2,591 million.

• Key projects in Guangzhou, Shenzhen, and other Greater Bay Area cities showed varying sales and delivery rates, with some projects outperforming regional peers.

• Guangzhou Yun Gang Cheng project achieved 16.3% contracted sales of available area and won multiple industry awards.

• Shenzhen Yuehai City project delivered 91.2% of available area.