Guangdong Land Holdings (124) Q3 2024 earnings summary

Executive summary

• For the nine months ended September 30, 2024, total revenue reached HK$4.043 billion, up 207.5% year-over-year, driven by increased property sales volume.

• Gross profit was HK$217.83 million, declining 31.1% year-over-year due to lower margins on delivered projects.

• Attributable loss to shareholders widened to HK$191 million, impacted by lower project margins and increased net financing costs.

• No further impairment of inventories was recorded, compared to HK$203 million in the prior year.

• Sales and delivery totaled approximately 212,000 sqm and 210,000 sqm, respectively, across multiple cities in the Greater Bay Area.

Financial highlights

• Revenue for the nine-month period surged 207.5% year-over-year to HK$4.043 billion.

• Gross profit was HK$217.83 million, while fair value losses on investment properties totaled HK$34.4 million, a reversal from gains last year.

• Attributable loss to shareholders was HK$191 million, impacted by lower project margins and increased net financing costs.

• Total assets stood at HK$45.94 billion as of September 30, 2024, down 6.1% year-over-year.

• Net asset value per share decreased 3.4% to HK$2.84.

Outlook and guidance

• Real estate policies remain supportive, with lower down payment ratios, mortgage rates, and government initiatives to absorb inventory.

• Financing environment for developers is improving, with expanded credit support and broader access to funding.

• Contracted but undelivered sales reached HK$10,494 million, to be recognized as future revenue.

• Land market remains stable but polarized, with demand for prime locations and cautious land acquisition strategies.

• Strategic focus remains on the Greater Bay Area, leveraging strong local partnerships and a professional development team.