China SCE Group (1966) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 21.5% YoY to RMB20.961bn; gross margin declined to 12.6%, and loss attributable to owners reached RMB7.991bn.

• Contracted sales with joint ventures and associates fell 52.9% YoY to RMB27.775bn; year-end net current liabilities were RMB12.870bn.

Financial highlights

• Revenue was RMB20.961bn versus RMB26.705bn in 2022; gross profit was RMB2.631bn versus RMB5.410bn.

• Loss before tax was RMB8.212bn; loss for the year was RMB8.401bn, including RMB7.991bn attributable to owners.

• Net loss per share was RMB189.2 cents; total comprehensive loss was RMB8.901bn.

Outlook and guidance

• 2024 priorities: ensure delivery, cash flow and operations; accelerate presales and collections, tailor project sales strategies, and strengthen construction and cost controls.

• Plans include offshore debt restructuring, refinancing or extending bank borrowings, new financing, and disposal of non-core assets and investment properties.

• Market recovery may remain difficult near term; high-tier city demand is expected to provide support.