Agile Group Holdings (3383) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 19.8% YoY to RMB43.31bn; gross loss was RMB524m and net loss RMB12.78bn, while shareholder loss narrowed to RMB13.80bn from RMB14.98bn.

• Diversified businesses contributed 45.5% of revenue, up 5.6 percentage points YoY; property development remained the larger contributor at 54.5%.

Financial highlights

• Revenue was RMB43,310m vs RMB54,034m in 2022; gross loss RMB524m vs gross profit RMB1,001m, and operating loss widened to RMB9,555m from RMB6,513m.

• Net loss narrowed 4.5% YoY to RMB12,777m; loss attributable to shareholders narrowed 7.9% to RMB13,801m; basic loss per share was RMB2.873 vs RMB3.827.

• Gross margin was -1.2% vs 1.9% in 2022; recognized average selling price rose 13.0%, while relevant average costs, including construction, rose 20.5%.

Outlook and guidance

• 2024 outlook cited China's economic recovery, targeted housing policies and a developer-financing whitelist as potential supports for property sales and industry recovery.

• Strategy remains focused on property development supported by diversified businesses, with a stated aim of steady operations and stronger brand presence.