Redsun Properties Group (1996) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 was RMB6,006.4 million, down 1.5% year-over-year, with property sales accounting for 95.3% of total revenue.

• Net loss narrowed to RMB1,710.3 million from RMB2,843.6 million in the same period last year.

• Contracted sales dropped 63.1% year-over-year to RMB4.812 billion, with a total sales area of 365,810 sq.m. and an average selling price of RMB13,155/sq.m.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit rose to RMB532.0 million, with gross margin improving to 8.9% from 1.4% year-over-year.

• Cost of sales decreased by 8.9% to RMB5,474.4 million, mainly due to lower impairment losses.

• Finance costs decreased 34.9% to RMB826.7 million.

• Selling and distribution expenses fell 31.3% to RMB157.6 million; administrative expenses dropped 23.0% to RMB140.8 million.

• Basic and diluted loss per share was RMB(0.53), improved from RMB(0.80) year-over-year.

Outlook and guidance

• The real estate market is expected to remain in a period of deep adjustment in the second half of 2024.

• The company will focus on cash flow management, cost control, and multi-channel financing.

• Strategic direction remains on dual-driven development in property and commercial real estate, with a focus on the Greater Jiangsu Region.