Xiamen C&D (600153) investor relations material

Executive summary

• 9M revenue declined 3.79% YoY to RMB480.08bn, while attributable net profit rose 42.98% to RMB1.64bn; total profit increased 128.45% to RMB3.93bn.

• Core segment pressures included lower real estate delivery and margin, inventory write-downs, and timing differences between futures hedge losses and related physical sales.

Financial highlights

• Q3 revenue was RMB176.29bn, down 4.01% YoY; attributable net profit was RMB653.4m, up 112.24%.

• 9M attributable net profit was RMB1.642bn, up 42.98%; excluding nonrecurring items, it was RMB1.379bn, up 39.96%.

• 9M operating cash flow was RMB8.30bn, up 24.17% YoY.

Segment performance

• Supply chain operations generated RMB423.34bn revenue, down 1.54% YoY, and RMB2.059bn attributable net profit, down RMB280m; unsettled physical sales left related hedge losses recognized ahead of the corresponding sales.

• Real estate revenue was RMB52.17bn, down 18.54%; attributable net loss was RMB423m, driven by lower delivery gross margins and fewer project completions.

• Property subsidiaries recorded inventory write-downs of RMB604m and RMB328m; lower deliveries, higher marketing expense rates, and absence of prior-year urban-renewal land-sale gains also weighed on results.

• Home-mall operations contributed RMB6.9m attributable net profit, reversing a loss YoY; cost reductions, lower financing costs, and narrower investment-property fair-value losses supported the improvement, while mall closures reduced revenue.