KRP Development Holdings (2421) H1 2024 earnings summary

Executive summary

• H1 FY2024 revenue fell 78% YoY to RMB102.224m and profit attributable to shareholders fell 84% to RMB22.604m, mainly reflecting lower sales and weaker investment-property fair value.

• Operations remained profitable with a net cash position; land bank was 248,331 sq.m. at 30 September 2023.

Financial highlights

• Revenue was RMB102.224m vs RMB473.010m YoY; gross profit was RMB69.678m vs RMB354.433m.

• Operating profit was RMB49.502m vs RMB329.791m; profit before tax was RMB50.763m vs RMB331.113m.

• Net profit was RMB22.604m vs RMB143.127m; basic and diluted EPS were RMB4.5 cents vs RMB28.3 cents.

• Income tax charge was RMB28.159m vs RMB187.986m; H1 2023 included an RMB96.294m EIT provision reversal with no net P&L impact.

Outlook and guidance

• FY2023/24 priorities included targeted sales strategies, expanding sales channels, faster cash conversion, cost control, efficiency and product quality; no numerical guidance was stated.

• Focus remained on Greater Bay Area renewal projects, with plans to explore integrated culture, tourism and commerce developments and rural-revitalization opportunities.

• Management expected supportive policies to help stabilize the property market, while acknowledging weak conditions and uncertainty.