China Yuanbang Property Holdings (BCD) H1 2024 earnings summary

Executive summary

• 1HFY2024 revenue fell to RMB131.1m from RMB199.3m; gross loss was RMB25.4m and net loss RMB103.5m, versus net profit of RMB34.7m a year earlier.

• Lower residential unit prices, weaker recreation income and a RMB44.4m income tax expense contributed to the loss; pre-sales were also affected by China’s economic slowdown and real estate weakness.

Financial highlights

• Revenue was RMB131.1m, down RMB68.2m YoY; cost of sales rose to RMB156.4m from RMB128.3m as more residential units were handed over.

• Gross loss was RMB25.4m versus gross profit of RMB71.0m; operating loss was RMB54.9m versus operating profit of RMB48.6m.

• Net loss was RMB103.5m versus net profit of RMB34.7m; owners’ attributable loss was RMB107.0m versus profit of RMB42.4m.

• Income tax expense was RMB44.4m, including EIT of RMB44.2m and LAT of RMB0.1m; the EIT increase was attributed to higher assessable profits.

Outlook and guidance

• Management was cautiously optimistic about potential real estate market recovery following PRC property support measures, while maintaining prudent cost control against possible headwinds.

• No numerical guidance was given; pre-sales in FY2024’s second quarter were negatively affected by the Chinese economic slowdown and real estate market weakness.