Longfor Group (960) H2 2024 earnings summary

Executive summary

• Achieved revenue of RMB127.47 billion in 2024, with investment property operation and property service segments contributing RMB26.71 billion, up 7.4% year-over-year.

• Core net profit attributable to owners was RMB6.97 billion; reported profit attributable to owners was RMB10.40 billion.

• Contracted sales reached RMB101.12 billion with 7.124 million sqm GFA sold; delivered 100,000 housing units across 43 cities.

• Maintained high occupancy rates in commercial and rental properties, with 97% for shopping malls and 95.3% for rental housing.

• Continued focus on high-tier cities, product quality, and operational resilience amid industry transformation.

Financial highlights

• Revenue declined to RMB127.47 billion from RMB180.74 billion year-over-year.

• Gross profit was RMB20.41 billion with a gross margin of 16.0%.

• Core net profit margin was 6.4%; core net profit margin attributable to owners was 5.5%.

• Basic EPS was RMB1.58; core basic EPS was RMB1.06.

• Total borrowings decreased 8.5% year-over-year to RMB176.32 billion; average finance cost was 4.0%.

• Cash in hand stood at RMB49.42 billion; net debt to equity ratio was 51.7%.

• Final dividend proposed at RMB0.10 per share; total dividend for the year was RMB0.32 per share.

Outlook and guidance

• Plans to maintain investment focus on core cities, flexibly launch saleable resources, and prioritize inventory reduction in 2025.

• Targets endogenous growth across all business segments, with emphasis on positive operating cash flow and non-development earnings.

• Intends to launch 11 new shopping malls in 2025, continuing both light and heavy asset strategies.

• Will enhance product offerings to create high-quality, safe, green, and intelligent housing.