Minmetals Land (230) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 fell 39.8% year-over-year to HK$5,023 million, with a net loss of HK$1,050 million, reversing from a profit of HK$593 million in the prior year period.

• Loss attributable to equity holders was HK$1,044 million; basic loss per share was HK$31.21 cents versus earnings of HK$3.34 cents last year.

• Core loss attributable to equity holders (excluding non-recurring items) was HK$159 million, compared to a core profit of HK$398 million a year ago.

Financial highlights

• Real estate development revenue dropped 38.9% to HK$4,997 million, accounting for 99.5% of total revenue; gross margin for this segment fell 14.5 percentage points to 7.2%.

• Specialised construction revenue plunged 99.8% to HK$0.3 million as no new projects were undertaken.

• Property investment revenue rose 11.6% to HK$26 million, with gross margin up to 81.8%.

• Overall gross profit margin decreased to 7.5% from 21.6% year-over-year.

• Impairment provisions for inventories and receivables totaled HK$528 million.

Outlook and guidance

• The real estate market is expected to remain under adjustment pressure in H2 2024, with weak income expectations and housing prices.

• The group aims to improve sales and cash collection, reduce costs, enhance efficiency, and manage debt risks.