Shanghai Industrial Urban Development Group (563) H1 2024 earnings summary

Executive summary

• Revenue rose 65.8% year-over-year to HK$2,980.8 million, driven by higher project deliveries, especially Cloud Vision in Shanghai.

• Loss attributable to owners narrowed 23.5% year-over-year to HK$231.6 million, with basic loss per share at 4.84 HK cents.

• Gross profit margin declined to 20.8%, down 22.1 percentage points year-over-year, due to lower high-margin project deliveries and price drops.

• No interim dividend was declared for the period.

• The Group maintained a focus on premium projects in core cities and completed partial deliveries in Shanghai, Yantai, and Xi'an.

Financial highlights

• Revenue: HK$2,980.8 million (up 65.8% year-over-year).

• Gross profit: HK$620.5 million (down 19.6% year-over-year).

• Loss attributable to owners: HK$231.6 million (improved from HK$302.9 million last year).

• Basic loss per share: 4.84 HK cents (vs. 6.32 HK cents last year).

• Net debt to total equity: 65.1% (vs. 58.4% at end-2023).

• Current ratio: 1.3 (vs. 1.4 at end-2023).

Outlook and guidance

• Management expects continued government support and policy easing to aid market recovery in the second half of 2024.

• The Group aims to strengthen its foundation, maintain stable operations, and focus on core cities, especially Shanghai and the Yangtze River Delta.

• Anticipates general improvement in annual results, driven by steady project delivery and financial management.

• The property market is expected to remain under pressure in the second half of 2024, with slow recovery and persistent operating and financing risks.