China Merchants Shekou Industrial Zone (001979) H2 2024 earnings summary

Executive summary

• Revenue reached ¥178.95 billion, up 2.25% year-over-year; net profit attributable to shareholders was ¥4.04 billion, down 36.09% year-over-year, mainly due to lower gross margins in development projects and increased impairment provisions.

• Cash flow from operating activities was ¥31.96 billion, up 1.69% year-over-year; year-end cash balance was ¥100.35 billion.

• The board proposed a cash dividend of ¥1.9353 per 10 shares, totaling ¥1.75 billion.

Financial highlights

• Operating income: ¥178.95 billion (+2.25% YoY); net profit attributable to shareholders: ¥4.04 billion (-36.09% YoY); basic EPS: ¥0.37 (-43.08% YoY).

• Gross margin for development business declined 1.53 percentage points to 15.58%.

• Net assets attributable to shareholders: ¥111.01 billion (-7.28% YoY); total assets: ¥860.31 billion (-5.31% YoY).

• Net debt ratio: 55.85%; cash to short-term debt ratio: 1.59; asset-liability ratio (excluding prepayments): 62.37%.

• Three red lines indicators remain in the green zone.

Outlook and guidance

• 2025 is expected to be a key year for real estate market stabilization, with continued policy support and structural opportunities in core cities.

• The company will focus on high-quality development, risk control, and digital transformation, aiming to maintain a top-five industry position.