Glory Health Industry (2329) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024 was RMB987.5 million, down 32.2% year-over-year, with property development contributing RMB792.3 million.

• Gross profit rose to RMB432.3 million from RMB180.2 million year-over-year due to a significant decrease in cost of sales.

• Net loss attributable to owners was RMB58.7 million, a substantial improvement from RMB266.9 million loss in the prior year period.

• Contracted sales dropped 43.3% year-over-year to RMB1,184.1 million, with Beijing accounting for 70.7% of total contracted sales.

• The group is actively transforming from real estate to the health industry, focusing on healthy living communities and online health services.

Financial highlights

• Revenue decreased to RMB987.5 million from RMB1,456.9 million year-over-year.

• Gross profit increased to RMB432.3 million, up from RMB180.2 million year-over-year.

• Net loss narrowed to RMB64.4 million from RMB269.8 million year-over-year.

• Finance costs fell sharply to RMB38.5 million from RMB142.5 million year-over-year.

• Cash, restricted bank deposits, and bank balances totaled RMB251.6 million as of June 30, 2024.

Outlook and guidance

• Real estate policy support is expected to increase, but the market remains in a bottom adjustment phase with low sales and continued financial pressure.

• The group will focus on debt structure adjustment, cost reduction, and transformation into the health industry.

• The company aims to enhance competitiveness through improved product quality, services, and management.