Xiamen C&D (600153) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ¥319.01 billion, down 16.80% year-over-year; net profit attributable to shareholders was ¥1.20 billion, down 37.67% year-over-year.

• Net profit margin and EPS declined significantly; cash flow from operations turned negative due to lower real estate sales and higher land payments.

• Supply chain operations, real estate, and home furnishing segments all faced profit pressure, with real estate and home furnishing segments seeing the largest declines.

• The company is advancing a rights issue to raise up to ¥4.98 billion for working capital and debt repayment.

• No dividend or capital increase plan for the interim period.

Financial highlights

• H1 2024 revenue: ¥319.01 billion, down 16.80% year-over-year; net profit attributable to shareholders: ¥1.20 billion, down 37.67%.

• Operating cash flow: -¥22.11 billion, compared to +¥23.38 billion in H1 2023.

• Total assets at June 30, 2024: ¥902.31 billion, up 9.92% from year-end 2023; net assets attributable to shareholders: ¥70.74 billion, up 1.77%.

• Basic EPS: ¥0.33, down 41.07% year-over-year; ROE: 1.67%, down 1.77 percentage points.

• Non-recurring losses (mainly fair value loss on investment property): -¥1.04 billion; adjusted net profit: ¥847.69 million, down 26.87%.

Outlook and guidance

• The company is actively promoting a rights issue to raise up to ¥4.98 billion, with all proceeds to supplement supply chain working capital and repay bank loans.

• Management expects continued pressure on supply chain and real estate segments due to macroeconomic and industry headwinds.

• Focus remains on risk control, cash flow management, and optimizing business structure.