Yanlord Land Group (Z25) H2 2024 earnings summary

Executive summary

• FY 2024 revenue fell 16.1% year-over-year to RMB36.397 billion, mainly due to lower average selling prices, product mix shift, and significant property write-downs and impairment losses.

• Gross profit dropped 58.6% to RMB3.432 billion, with gross margin down to 9.4% from 19.1% in FY 2023.

• Net loss widened to RMB3.763 billion from RMB722 million in FY 2023, driven by property write-downs, impairment losses, and fair value loss on investment properties.

• Total contracted pre-sales (including JVs and associates) declined 31.4% to RMB22.206 billion, with GFA down 25.4%.

• No dividend declared for FY 2024 due to reported losses and sector uncertainty.

Financial highlights

• 2H 2024 revenue was RMB16.444 billion, down 42.5% year-over-year; gross profit margin for 2H was 4.9%.

• FY 2024 loss attributable to owners was RMB3.422 billion, with basic and diluted loss per share at RMB(177.19) cents.

• Net impairment losses on financial assets nearly doubled to RMB2.104 billion.

• Finance costs decreased 22.8% to RMB1.001 billion.

• Cash and cash equivalents at RMB10.190 billion, down 21.7% year-over-year.

Outlook and guidance

• Accumulated property contracted pre-sales pending recognition as of 31 Dec 2024 was RMB30.161 billion, to be recognized in 1H 2025 and beyond.

• New project launches planned for 1H 2025 across major regions in China, focusing on high-quality residential developments.

• Strategic focus on expanding presence in high-growth cities in China and Singapore, with a total GFA of 6.438 million sqm as of year-end.

• Cautious approach to cash management and financial policies to support sustainable growth.

• PRC real estate market remains weak, with national residential sales and investment declining further in 2024.