China Jinmao Holdings Group (817) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 13% YoY to RMB72.4bn; gross profit declined 31% to RMB9.0bn, and net loss attributable to owners was RMB6.9bn.

• The downturn, property impairment, lower project margins and reduced one-off gains drove the loss; contracted sales reached RMB141.2bn and more than 45,000 homes were delivered.

• Hotel, commercial leasing and property services revenue grew, while development revenue and gross margin weakened; net debt-to-adjusted capital rose to 73% from 64%.

Financial highlights

• Revenue RMB72,403.6m, down 13% YoY; gross profit RMB9,021.5m, down 31%; total loss for the year RMB4,858.3m vs profit of RMB5,220.9m.

• Loss attributable to owners RMB6,896.6m vs profit of RMB1,984.1m; basic loss per share RMB51.62 cents vs earnings of RMB15.56 cents.

• Excluding property impairment provisions, profit for the year was RMB2,136.7m vs RMB11,803.5m; impairment provisions were RMB6,995.0m vs RMB6,582.6m.

• Total assets were RMB407.1bn, down 4% YoY; equity attributable to owners was RMB39.3bn, down 17%.

• Other income and gains fell 63% to RMB4,354.5m, mainly on lower fair value and business-combination gains; finance costs rose 11% to RMB3,013.9m.

Outlook and guidance

• 2024 outlook anticipates continued economic recovery and structural adjustment; policy support and ongoing urbanisation were viewed as opportunities for higher-quality housing, technology and services.

• Strategy prioritises focused development, quality and efficiency, revitalising existing projects, optimising new projects and product upgrades; no quantified earnings or sales guidance was stated.