Ganglong China Property Group (6968) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 was RMB5,367 million, down 28% year-over-year due to lower contracted sales and property recognition.

• Net loss reached RMB154 million, reversing from a net profit of RMB537 million in H1 2023.

• Gross profit margin dropped to 5% from 18% year-over-year, mainly due to adverse market conditions and increased impairment provisions.

• Delivered properties totaled RMB5,367 million in value and 531,159 sq.m. in area.

• No interim dividend declared for the period.

Financial highlights

• Gross profit was RMB290 million (H1 2024) vs. RMB1,350 million (H1 2023).

• Cost of sales was RMB5,077 million, including a RMB121 million net provision for impairment.

• Selling and marketing plus G&A expenses: RMB160 million, down 61% year-over-year.

• Net finance costs decreased 45% to RMB41 million.

• Basic and diluted loss per share was RMB0.05 (2023: earnings of RMB0.12 per share).

Outlook and guidance

• The real estate market is expected to remain under pressure in the second half of 2024, with new housing likely at the bottom stage.

• The Group will focus on product quality, customer service, strict cost control, and cash flow management.

• Plans include further reduction of financing expenses, organizational streamlining, and talent incentives.