Ronshine China (3301) H2 2024 earnings summary

Executive summary

• Contracted sales fell 52.99% year-over-year to RMB7,702.48 million, with revenue down 32.75% to RMB29,781.89 million.

• Gross profit dropped 78.94% to RMB334.37 million, and net loss widened 68.80% to RMB11,558.04 million.

• Loss attributable to owners increased 102.75% to RMB12,002.31 million; basic loss per share was RMB7.13.

• Gearing ratio surged to 5.11 from 1.52, and the current ratio declined to 0.96.

• No final dividend was recommended for the year.

Financial highlights

• Revenue from property sales was RMB29,322.25 million, with delivered GFA down 53% to 1,334,918 sq.m.

• Gross profit margin fell to 1.12% from 3.58% year-over-year.

• Operating loss increased to RMB7,274.90 million, and net finance costs were RMB2,637.62 million.

• Total assets decreased 32.40% to RMB99,586.00 million; total equity dropped 69.83% to RMB6,874.31 million.

• Cash and bank balances at year-end were RMB3,402.27 million; total borrowings stood at RMB38,540.14 million.

Outlook and guidance

• Management expects policy support to gradually stabilize the real estate market in 2025, especially in first- and core second-tier cities.

• The Group will focus on core regions, prudent cash flow management, and quality delivery.