Sunshine 100 China (2608) H2 2024 earnings summary

Executive summary

• Revenue declined 4.0% year-over-year to RMB2,018.8 million, with a gross loss of RMB189.7 million and a negative gross margin of 9.4%.

• Net loss widened 82.0% year-over-year to RMB5,798.0 million, mainly due to gross loss on delivered properties, higher interest expenses, and increased asset write-downs and impairments.

• Contracted sales fell 33.8% to RMB384.4 million, with average unit price down 19.5% and sales area down 2.8%.

• The company faces significant liquidity pressure, with net current liabilities of RMB10,393.1 million and net liabilities of RMB4,990.9 million.

Financial highlights

• Revenue: RMB2,018.8 million (down 4.0% year-over-year).

• Gross loss: RMB189.7 million; negative gross margin of 9.4%.

• Net loss: RMB5,798.0 million (up 82.0% year-over-year).

• Basic and diluted loss per share: RMB2.19.

• Total assets: RMB46,097.4 million; total deficit attributable to equity shareholders: RMB6,010.2 million.

• Contracted sales: RMB384.4 million (down 33.8% year-over-year).

• Cash and cash equivalents: RMB631.1 million.

Outlook and guidance

• Management plans to deepen the Amoeba business model, focus on asset revitalization, and pursue business innovation in 2025.

• Ongoing efforts to restructure debt, optimize capital structure, and improve operational efficiency.

• No dividend proposed for 2024.