China Jinmao Holdings Group (817) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 was RMB21,974.9 million, down 18% year-over-year, mainly due to lower city operations, property development, commercial leasing, retail, and hotel revenues.

• Profit attributable to owners of the parent rose 133% year-over-year to RMB1,010.0 million; excluding fair value losses on investment properties, profit increased 174% to RMB1,099.6 million.

• Basic earnings per share was RMB7.26 cents, up 123% year-over-year; adjusted EPS (excluding fair value changes) was RMB7.93 cents, up 163%.

• Interim dividend of HK3.0 cents per share declared, doubling from last year, with scrip option available.

• Total assets grew 3% to RMB419,376.0 million; equity attributable to owners increased 40% to RMB54,933.1 million as of 30 June 2024.

Financial highlights

• City operations and property development revenue fell 23% year-over-year to RMB17,072.8 million.

• Commercial leasing and retail operations revenue decreased 9% to RMB860.8 million; hotel operations revenue dropped 17% to RMB884.7 million.

• Jinmao Services revenue rose 10% to RMB1,491.4 million; other revenue increased 18% to RMB2,381.6 million.

• Overall gross profit margin was 16%, stable year-over-year.

• Segment gross margins: city operations/property development 11%, commercial leasing/retail 78%, hotel operations 43%, Jinmao Services 25%.

• Selling and marketing expenses fell 19% to RMB982.8 million; administrative expenses dropped 34% to RMB1,285.0 million.

• Finance costs decreased 13% to RMB1,266.9 million.

• Income tax expense increased 25% to RMB350.4 million.

Outlook and guidance

• The external environment remains complex, but domestic economic recovery is gaining momentum and industry transformation is underway.

• Real estate industry expected to play a key role in stabilizing growth; destocking and new development models will be accelerated.

• The company will focus on high-quality, technology-driven, and service-oriented transformation, maintaining a strategy of revitalizing existing projects and optimizing new ones.