CIFI Holdings (Group) Co (884) H2 2023 earnings summary

Executive summary

• Revenue rose 51.4% YoY to RMB71.8bn; net loss attributable to equity owners narrowed to RMB9.0bn from RMB13.0bn, while core net loss narrowed to RMB3.9bn from RMB5.2bn.

• Approximately 118,000 property units were delivered, and operating activities generated positive net cash.

Financial highlights

• Gross profit increased 69.7% YoY to RMB11.2bn; cost of sales and services rose 48.5% to RMB60.6bn.

• Loss before tax narrowed to RMB5.5bn from RMB12.9bn; loss for the year narrowed to RMB8.7bn from RMB13.6bn.

• Basic and diluted loss per share were both RMB0.86, versus RMB1.42 in 2022.

• Property inventory write-downs increased to RMB8.7bn from RMB4.3bn; expected credit loss allowance was RMB0.4bn, down from RMB2.5bn.

Outlook and guidance

• 2024 sales remain under adjustment pressure; a slight market-volume increase is possible if the economy recovers, home-buying willingness improves and urban-village redevelopment progresses as scheduled.

• Delivery and quality are the top priorities; 2024 was identified as the most difficult year for delivery and overcoming business challenges.

• Liquidity measures include accelerating property sales and collections, controlling costs, seeking financing and disposing of non-core assets.