Zhong An Group (672) H2 2024 earnings summary

Executive summary

• FY2024 revenue was RMB13,930.2 million, down 3.9% year-over-year, mainly due to lower delivered property GFA and average selling price.

• Gross profit rose 49.8% to RMB2,284.9 million, with gross margin up 5.9 percentage points to 16.4% due to lower average cost per sq.m.

• Net profit attributable to owners was RMB19.9 million, a 95.8% decrease, with basic EPS at RMB0.4 cents.

• No final dividend was declared for FY2024.

• The group received multiple industry awards for financial stability, investment value, and operational efficiency.

Financial highlights

• Cost of sales decreased 10.2% to RMB11,645.3 million.

• Other income and gains fell 27.7% to RMB70.2 million, mainly from lower bank interest income.

• Selling and distribution expenses dropped 33.4% to RMB224.9 million; administrative expenses fell 21.1% to RMB464.7 million.

• Other expenses rose 51.9% to RMB170.6 million, mainly due to higher impairment provisions.

• Finance costs increased 15% to RMB148.4 million.

• Income tax expense surged 528.5% to RMB1,031.3 million, mainly due to higher profit before tax and LAT provision.

Outlook and guidance

• Management expects gradual economic recovery and stable growth in 2025, with policy support and improved demand in core cities.

• The group will focus on financial stability, liquidity risk control, and leveraging its Yangtze River Delta presence.

• Plans include deepening regional cultivation, enhancing operational capabilities, and expanding new industry chains.