Yanlord Land Group (Z25) H2 2024 earnings summary

Executive summary

• FY 2024 revenue fell 16.1% year-over-year to RMB36.397 billion, mainly due to lower property development income, significant property write-downs, impairment losses, and fair value loss on investment properties.

• Net loss attributable to owners was RMB3.422 billion, primarily from a RMB3.370 billion write-down of properties, net impairment losses, and fair value loss totaling RMB5.696 billion before tax and non-controlling interests.

• Gross profit dropped 58.6% to RMB3.432 billion, with gross margin down 9.7 percentage points to 9.4%.

• Total debt reduced by 21.1% to RMB26.375 billion, with net gearing ratio down 5.4 percentage points to 41.3%.

Financial highlights

• 2H 2024 revenue was RMB16.444 billion, down 42.5% year-over-year; gross profit margin for 2H was 4.9%.

• Net impairment losses on financial assets nearly doubled to RMB2.104 billion.

• Finance costs decreased 22.8% to RMB1.001 billion; interest paid reduced by 33.4% to RMB1.572 billion, and average cost of borrowing decreased to 4.7%.

• Income from property development fell 18.1% to RMB31.243 billion; property investment and hotel operations income rose 4.8% to RMB1.831 billion; property management income increased 14.4% to RMB1.433 billion.

Outlook and guidance

• Accumulated property contracted pre-sales pending recognition as of 31 Dec 2024 was RMB30.161 billion, to be recognized in 1H 2025 and beyond.

• New project launches planned for 1H 2025 across major regions in China, including Yangtze River Delta, Bohai Rim, Hainan, and Greater Bay Area.

• Strategic focus on expanding presence in high-growth cities in China and Singapore, with a total GFA of 6.438 million sqm as of year-end.

• Management notes PRC real estate sector saw declines in investment, sales value, and transaction volume, but government stimulus policies have begun to stabilize the market in Q4 2024.

• The group is focused on accelerating sales and optimizing cost efficiencies to maintain financial stability and resilience.