Powerlong Real Estate (1238) H2 2024 earnings summary

Executive summary

• Revenue increased 12.5% year-over-year to RMB25,757 million, driven by higher property sales.

• Contracted sales dropped sharply to RMB12,787 million from RMB27,524 million year-over-year.

• Gross profit fell 4.3% to RMB2,347 million, with gross margin down to 9.1% from 10.7%.

• Net loss attributable to owners widened to RMB5,765 million from RMB2,653 million year-over-year.

• No final dividend was proposed for 2024.

Financial highlights

• Property sales revenue rose 15.8% to RMB20,543 million.

• Rental and property management income increased 5.2% to RMB4,295 million.

• Cost of sales rose 14.5% to RMB23,410 million.

• Fair value losses on investment properties surged to RMB3,327 million from RMB1,709 million.

• Core losses (excluding non-recurring items) were RMB2,594 million, up from RMB904 million.

Outlook and guidance

• The company expects continued policy support for the real estate sector in 2025, focusing on stabilizing the market and managing risks.

• Plans to accelerate asset sales, control costs, and focus on high-quality land bank in the Yangtze River Delta.

• Will continue to seek new financing and debt restructuring to address liquidity challenges.