Minmetals Land (230) H2 2024 earnings summary

Executive summary

• Revenue declined 21.8% year-over-year to HK$9,883 million amid a prolonged downturn in China's real estate sector, with core loss attributable to equity holders at HK$566 million and net loss at HK$3,521 million, up 246.6% year-over-year.

• Contracted sales dropped 37.9% to RMB7.02 billion, with gross floor area sold down 24.1% to 421,000 sqm, mainly from Tier 1 and core Tier 2 cities.

• Property investment occupancy rates fell, with LKF29 at 75.3% and China Minmetals Tower at 86.9%, both declining year-over-year.

Financial highlights

• Gross profit margin fell to 6.1% from 17.2% year-over-year, mainly due to lower-margin real estate projects.

• Provision for impairment of inventories surged to HK$1,741 million (2023: HK$503 million); impairment loss under expected credit loss model was HK$366 million (2023: HK$174 million).

• Finance costs increased 12.2% to HK$535 million; share of loss of associates rose 291.9% to HK$823 million.

• Total assets decreased 23.4% to HK$41,031 million; net assets dropped 35.5% to HK$9,257 million.

Outlook and guidance

• The Group focused on cash flow management and operational risk control, preparing for market recovery despite ongoing uncertainty in the property sector.

• No dividend recommended for 2024.