Shimao Group (813) H2 2024 earnings summary

Executive summary

• Revenue increased 0.9% year-over-year to RMB59.98 billion, with property sales contributing 79.9% of total revenue.

• Gross loss was RMB5.87 billion, with a negative gross margin of -9.8% due to higher costs and impairment provisions.

• Net loss attributable to equity holders widened to RMB35.91 billion from RMB21.03 billion in 2023.

• No final dividend was recommended for 2024.

Financial highlights

• Contracted sales for 2024 were RMB34.00 billion, with a contracted gross floor area of 2.675 million sq.m.

• Revenue from hotel, commercial properties, and property management declined 3.3% year-over-year to RMB12.06 billion.

• Cost of sales rose 22.8% to RMB65.84 billion, mainly due to increased impairment provisions.

• Gross profit margin dropped from 9.8% in 2023 to -9.8% in 2024.

• Net finance costs increased 51.5% to RMB12.08 billion.

Outlook and guidance

• The group plans to focus on healthy operations, cost control, and accelerating sales and delivery of existing inventory in 2025.

• Government policy in 2025 aims to stabilize the property market and foster a new real estate development model.