Seazen Group (1030) H2 2023 earnings summary

Executive summary

• FY2023 revenue was RMB119.464bn; net profit attributable to equity holders was RMB879.3m, including RMB1,246.1m attributable profit from discontinued operations.

• Contracted sales were RMB75.983bn; commercial operating income reached RMB11.324bn, up 13.2% YoY; 140,000+ residential units were delivered on schedule.

Financial highlights

• Revenue rose 2.5% YoY to RMB119.464bn, supported by increased property deliveries; property sales revenue was RMB107.336bn.

• Gross profit was RMB16.168bn and gross margin 13.5%; operating profit was RMB6.225bn versus RMB6.080bn in 2022.

• Profit for the year was RMB784.6m versus RMB742.7m; continuing operations recorded a RMB467.0m loss after tax, while discontinued operations contributed RMB1.252bn profit.

• Core earnings attributable to equity holders, a non-HKFRS measure, were RMB157.7m; adjusted to exclude after-tax fair-value and FX effects and subsidiary disposal gains/losses.

Outlook and guidance

• Presold but undelivered properties, including JVs and associates, totaled ~RMB174.153bn and 21.70m sq.m. GFA at year-end, supporting future revenue recognition.

• Liquidity plans depend on stronger sales and collections, supplier payment arrangements, additional financing, potential REIT and share issuance, and continued covenant compliance.