Gemdale Properties and Investment (535) H2 2024 earnings summary

Executive summary

• Revenue fell 24% year-over-year to RMB13.2 billion, mainly due to lower property sales.

• Net loss attributable to owners was RMB4.57 billion, compared to a profit of RMB343 million last year.

• Significant impairments on property inventory and joint ventures drove the loss.

• Property development segment revenue dropped 27%, while property investment and management revenue rose 9%.

• No final dividend proposed for 2024.

Financial highlights

• Gross profit decreased 33% year-over-year to RMB2.43 billion.

• Other income and gains dropped 47% to RMB857 million, mainly due to lower remeasurement gains and interest income.

• Share of results from joint ventures and associates showed a loss of RMB2.38 billion, up sharply from RMB356 million loss last year.

• Basic loss per share was RMB0.2751, compared to earnings per share of RMB0.0206 in 2023.

• Deposits, bank and cash balances fell 24% to RMB3.91 billion.

Outlook and guidance

• Management expects China's economy to grow 4-6% in 2025, with a mild recovery in the property market.

• The group aims to leverage its financial discipline to capture opportunities from resumed real estate demand.