Times China (1233) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 was RMB6,091.0 million, down 38.7% year-over-year, mainly due to reduced property sales and area delivered.

• Loss for the period increased to RMB2,831.4 million, up 100.9% from the prior year, primarily due to higher asset impairment.

• Core net loss was RMB2,827.9 million, up RMB1,417.6 million year-over-year.

• Contracted sales fell 54.5% to RMB4.291 billion, with average sales price per sq.m. down 22.9% year-over-year.

• No interim dividend was declared and no income was generated from the urban redevelopment business during the period.

Financial highlights

• Gross profit was RMB537.3 million, down 29.3% year-over-year; gross profit margin was 8.8%, stable versus 7.7% last year.

• Cost of sales fell 39.5% to RMB5,553.7 million, reflecting lower area delivered.

• Other expenses rose 158% to RMB2,322.3 million, mainly due to increased asset impairment.

• Finance costs were RMB581.2 million, similar to the prior year.

• Cash and bank balances at 30 June 2024 were RMB3,370.1 million, with restricted deposits of RMB1,828.9 million, down 15.2% from year-end 2023.

Outlook and guidance

• The company expects continued pressure on new property prices and slow inventory digestion, with second-hand housing transactions likely outperforming new homes.

• Management anticipates ongoing policy support but expects a sluggish market and slow recovery.

• Plans include aggressive sales, cost control, debt management, and asset disposals to stabilize cash flow and support long-term sustainability.