KRP Development Holdings (2421) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 68% YoY to RMB226.9m and profit attributable to shareholders fell 78% to RMB40.1m, reflecting weaker property sales and an inventory impairment.

• Operations remained focused on residential development and sales in Dongguan, Huizhou and Foshan; the land bank was 242,494 sq.m. at 31 March 2024.

Financial highlights

• Revenue was RMB226.9m vs RMB700.8m in FY2023; gross profit was RMB145.7m vs RMB516.9m.

• Operating profit was RMB83.5m vs RMB449.5m; profit before tax was RMB86.1m vs RMB449.1m.

• Net profit was RMB40.1m vs RMB180.8m; basic and diluted EPS were RMB7.9 cents vs RMB35.8 cents.

• Total dividend was HK2.0 cents per share vs HK4.0 cents; proposed final dividend was HK2.0 cents per share.

Outlook and guidance

• Sales may continue to recover amid accommodative policies, but the industry recovery is expected to take time and the path remains long.

• Priorities include Greater Bay Area projects, flexible marketing and pricing to reduce inventory, accelerate cash recovery, preserve net cash and limit financial risk.

• Plans include exploring a culture, tourism, commercial and residential product model and investment products to diversify assets and cash flows.