Green Build Technology (Y06) H2 2023 earnings summary

Executive summary

• Disposal of the major PRC subsidiaries completed 24 May 2023; continuing operations focus on estate-refurbishment consulting and management, while exploring additional revenue streams.

• FY2023 net profit of RMB91.962m was driven by a RMB93.429m disposal gain; continuing operations recorded a RMB1.934m loss.

Financial highlights

• Continuing-operations revenue rose to RMB2.940m from RMB0.940m, as Yunbao generated a full year of fees from a contract that began in September 2022.

• Gross profit was RMB2.540m; gross margin declined to 86.4% from 100%, as continuing operations assumed contract costs after the disposal.

• Continuing-operations administrative expenses fell to RMB4.059m from RMB4.473m, mainly due to reversal of prior-year professional-fee accruals.

• Net profit was RMB91.962m versus a RMB165.339m loss in FY2022; discontinued operations contributed RMB93.896m, including the disposal gain.

• Cash and cash equivalents ended FY2023 at RMB0.890m, down from RMB5.005m; operating inflow of RMB7.007m was offset by investing and financing outflows.

Outlook and guidance

• Seeking estate-management and sustainable-development projects, including discussions for maintenance work at additional housing estates, to add revenue streams.

• Exploring fundraising to strengthen liquidity; the Board cited potential investors showing interest in the going-concern assessment.

• A hotel management and consultancy venture was formed with Hotel NuVe Elements Pte. Ltd.; the venture partner is expected to provide operating expertise and resources.