Seazen Group (1030) H1 2024 earnings summary

Executive summary

• Contracted sales reached RMB23,554 million with a contracted area of 3.26 million sq.m. in H1 2024, and over 57,000 residential units were delivered during the period.

• Revenue for the six months ended 30 June 2024 was RMB34,003.3 million, down from RMB42,532.3 million in H1 2023.

• Net profit attributable to equity holders was RMB959.2 million, with basic EPS of RMB0.14.

• Commercial operations saw 6 new Wuyue Plazas opened, with total commercial operating income of RMB6,212 million and an occupancy rate of 97.24%.

• MSCI ESG rating was upgraded from BB to BBB in January 2024, reflecting improved sustainability performance.

Financial highlights

• Gross profit was RMB6,826.9 million with a gross margin of 20.1%.

• Rental and management fee income from investment properties was RMB5,796 million.

• Net finance costs increased 31.9% year-over-year to RMB1,565 million due to lower interest capitalization.

• Cash and cash equivalents stood at RMB12,038 million, while cash and restricted cash totaled RMB16,199 million as of 30 June 2024.

• Net debt-to-equity ratio was 50.5% as of June 30, 2024 (Dec 31, 2023: 47.7%).

Outlook and guidance

• The Group expects continued policy support for the real estate sector, focusing on destocking and credit easing.

• Plans to maintain financial safety, optimize debt structure, and pursue sustainable growth and stable net profit.

• No plans for significant investments or capital asset acquisitions outside ordinary business.