Kaisa Group (1638) H2 2024 earnings summary

Executive summary

• Revenue fell 55.8% year-over-year to RMB11,560.7 million, with gross profit down 86.0% to RMB237.9 million and gross margin at 2.1%. Loss attributable to owners increased 43.2% to RMB28,533.7 million, with basic loss per share at RMB4.067.

• Contracted sales (including joint ventures and associates) dropped 62.1% to RMB6,757 million, with GFA sold down 47.2%. No final dividend was declared.

Financial highlights

• Sales of properties decreased 64.3% to RMB8,056.8 million; property management revenue fell 2.4% to RMB1,619.2 million; rental income rose 8.4% to RMB498.6 million.

• Gross profit margin declined from 6.5% to 2.1% due to higher costs for delivered properties.

• Net other losses widened to RMB15,006.1 million, mainly from impairments, fair value losses, and exchange losses.

• Net finance costs increased 12.1% to RMB1,947.1 million; impairment losses rose 17.7% to RMB5,534.0 million.

• Net current liabilities reached RMB51,015.7 million, up from RMB25,442.9 million; leverage ratio increased to 63.0%.

Outlook and guidance

• Management expects China's real estate market to stabilize in 2025, with first-tier cities leading recovery and policy support continuing.

• The Group will focus on resolving operational risks, cash flow management, and exploring light-asset, sustainable development models.