Greentown China (3900) H2 2024 earnings summary

Executive summary

• Total contracted sales reached RMB 276.8bn, ranking Top 3 in the industry, with a cash collection rate of 104%, despite an 8.1% YoY decline, outperforming the Top 10 average decline of 24.1%.

• Revenue rose 20.7% YoY to RMB 158.5bn, driven by strong property sales and improved average selling prices.

• Net profit attributable to owners fell 48.8% YoY to RMB 1.6bn due to higher impairment and fair value losses, despite operational improvements.

• Operating cash flow reached RMB 28.8bn, up 25% YoY, with a net gearing ratio reduced by 7.2 pts to 56.6%.

• Maintained industry-leading delivery satisfaction, brand value, and received multiple awards for product strength and ESG performance.

Financial highlights

• Revenue from property sales was RMB 147.0bn, up 21.9% YoY; average selling price increased 19% to RMB 23,145/sqm.

• Gross profit increased 18.5% to RMB 20.2bn, with a gross margin of 12.8%.

• Net profit attributable to owners fell 48.8% YoY to RMB 1.6bn; basic EPS dropped 48.4% to RMB 0.63.

• Total assets decreased 5.2% to RMB 507.8bn; total borrowings down 6.1% to RMB 137.2bn.

• Year-end financing costs hit a historical low of 3.7%; cash to short-term debt ratio was 2.3x.

Outlook and guidance

• 2025 will focus on destocking, quality improvement, precise investment, and cash security.

• Saleable resources for 2025 estimated at RMB 200.2bn, with 83% in high-tier cities and 58% in 10 strategic core cities.

• Emphasis on innovation, cost control, digital empowerment, and project management business expansion to drive sustainable growth.