Kaisa Group (1638) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 was RMB5,428.6 million, down 60.0% year-over-year; gross profit fell 75.0% to RMB744.3 million, with gross margin at 13.7%.

• Net loss attributable to owners was RMB9,115.4 million, compared to RMB6,973.9 million loss in the prior year period; basic loss per share was RMB1.299.

• Contracted sales (including joint ventures and associates) reached RMB3,556 million with 329,915 sq.m. GFA sold, down 70.8% year-over-year.

• No interim dividend was declared for the period.

Financial highlights

• Revenue dropped to RMB5,428.6 million from RMB13,564.6 million year-over-year.

• Gross profit margin decreased to 13.7% from 21.9% year-over-year.

• Net loss for the period was RMB8,993.9 million, up from RMB6,600.5 million loss in the prior year.

• Cash and bank deposits (including restricted cash) stood at RMB2,751.0 million as of 30 June 2024, down 19.1% from year-end 2023.

• Aggregate borrowings increased to RMB135,078.4 million from RMB133,624.0 million at year-end 2023.

Outlook and guidance

• Management expects China's economy to remain stable but notes ongoing challenges with weak demand and property market adjustment.

• The property market is expected to continue bottoming out, with policy relaxation supporting gradual recovery but persistent downward pressure.

• The company will focus on mitigating operating risks, prioritizing profit and cash flow, and exploring light-asset, sustainable development models.