Logan Group Company (3380) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 increased by 1.4% year-over-year to RMB14,053.4 million, with a net loss of RMB1,800.1 million due to low gross margins and inventory impairment amid a continued real estate downturn.

• The real estate sector in China remained in a deep adjustment cycle, with significant declines in investment and sales, but the group delivered 45 batches of projects totaling nearly 17,000 units.

• Contracted sales reached RMB5,317.6 million, with the Greater Bay Area accounting for over half of sales value.

• Offshore debt restructuring progressed, with over 92% of noteholders supporting the agreement; a key refinancing facility was secured for a major project.

• Onshore debt extension plans were approved for 21 corporate bonds and ABS, providing time for further restructuring.

Financial highlights

• Revenue rose 1.4% year-over-year to RMB14,053.4 million, mainly from property development.

• Gross loss widened to RMB1,673.9 million from RMB865.5 million year-over-year.

• Net loss attributable to equity shareholders was RMB1,536.5 million, a 19.7% improvement from the prior year.

• Cash and bank balances decreased 27.9% to RMB9,500.1 million from 31 December 2023.

• Total assets fell 8.8% to RMB226,488.4 million; total equity dropped 6.8% to RMB30,513.0 million.

• Basic and diluted loss per share were RMB27.80 cents.

Outlook and guidance

• The group expects gradual industry stabilization as government support measures take effect, but recovery will take time.

• Focus remains on quality project delivery, stable operations, and expediting offshore debt restructuring to restore financial health.