Gemdale Properties and Investment (535) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 rose 41% year-over-year to RMB3,286.9 million, mainly due to increased property sales recognition.

• Loss attributable to owners was RMB2,179.1 million, compared to a profit of RMB562.5 million in the prior year, driven by large impairment losses on property inventories and joint ventures.

• Basic and diluted loss per share were RMB0.1312, versus earnings per share of RMB0.0339 and RMB0.0338, respectively, in the prior year.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit was RMB557.4 million, down from RMB599.2 million year-over-year.

• Other income and gains dropped to RMB354.3 million from RMB765.6 million, mainly due to the absence of prior period fair value gains and lower consulting income.

• Share of results from joint ventures and associates swung to a loss of RMB1,362.7 million from a profit of RMB506.8 million.

• Cash and bank balances declined 18% to RMB4,220.5 million as of 30 June 2024.

• Net assets dropped 12% to RMB23,207.7 million.

Outlook and guidance

• Management expects the PRC property market to remain challenging in H2 2024, with potential for gradual recovery in Q4 as government stimulus measures take effect.

• The Group will prioritize financial stability, liquidity, and flexible sales strategies to maintain its industry position.

• Local governments have introduced stimulus measures, but buyer confidence remains low.