Agile Group Holdings (3383) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 increased by 5.7% year-over-year to RMB21,137 million, but the group recorded a gross loss of RMB1,870 million and a net loss of RMB8,900 million, with loss attributable to shareholders at RMB9,674 million, up 116.2% year-over-year.

• The real estate market in China remained weak, with a 68.1% year-over-year drop in pre-sold property value and continued pressure on liquidity and financing.

• The group delivered over 18,800 residential units in 32 cities, with about 15% delivered ahead of schedule.

• Loss attributable to shareholders rose 116.2% year-over-year to RMB9,674 million, with basic loss per share at RMB1.917.

Financial highlights

• Revenue rose to RMB21,137 million from RMB20,002 million year-over-year.

• Gross loss of RMB1,870 million, compared to a gross profit of RMB2,007 million in the prior year period.

• Net loss increased to RMB8,900 million, up from RMB3,611 million loss last year.

• Basic loss per share was RMB1.917, up from RMB0.963 year-over-year.

• Total assets as of 30 June 2024 were RMB241,808 million, down 9.3% from year-end 2023.

• Cash and cash equivalents fell 52% to RMB4,148 million; restricted cash rose 19.3% to RMB4,672 million; total cash and bank balances were RMB8,820 million.

• Net gearing ratio increased to 80.3% from 65.8% at year-end 2023.

• Total borrowings as of 30 June 2024 were RMB51,186 million.

Outlook and guidance

• The group expects further government policies to stabilize the real estate market and plans to accelerate pre-sales and cash collection.

• Focus remains on prudent development in major city clusters, especially the Greater Bay Area and Yangtze River Delta.

• The group is pursuing holistic solutions for offshore debt and aims to improve its balance sheet and return to sustainable growth.