Sunac China (1918) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB34.28 billion, down 41.4% year-over-year, with a gross loss of RMB1.81 billion, a 41.2% reduction in loss compared to H1 2023.

• Loss attributable to owners was RMB14.96 billion, a 2.7% decrease in loss year-over-year.

• Net assets attributable to owners stood at RMB47.96 billion as of June 2024.

• The company delivered approximately 58,000 houses in 52 cities in H1 2024 and targets over 170,000 deliveries for the full year.

Financial highlights

• Total revenue: RMB34.28 billion (H1 2024), down from RMB58.47 billion (H1 2023).

• Gross loss: RMB1.81 billion, improved from RMB3.08 billion in H1 2023.

• Gross margin: -5.3%; adjusted gross profit margin would be 7.0% excluding fair value adjustments and impairments.

• Cash balances (including restricted): RMB25.68 billion as of June 2024.

• Total borrowings: RMB277.43 billion, gearing ratio at 79.2% (up from 75.2% at end-2023).

Outlook and guidance

• Management expects continued uncertainty in market recovery and ongoing pressure from home delivery and debt resolution.

• Plans to maintain long-term confidence, focus on asset revitalization, and leverage supportive government policies.