China Resources Land H1 Profit Drops 17%, Interim Dividend Held at HK$0.2
SingTao · 2 SOURCESabout 2 hours ago2 MIN
Summary
China Resources Land (CR Land, stock code: 1109) released its interim results on Wednesday, revealing a profit attributable to shareholders of 98.4 billion yuan for the first six months of 2024, representing a 17.2% year-on-year decrease . The company's revenue declined 28.5% year-on-year to 678.7 billion yuan, though its overall gross margin improved by 1.4 percentage points to 25.4% . The board declared an unchanged interim dividend of 0.2 yuan per share . Following the announcement, CR Land's shares tumbled as much as 5.9% to 31.26 yuan in early trading .
Key Points
- Net profit attributable to shareholders was 98.4 billion yuan, down 17.2% year-on-year; core net profit reached 101.6 billion yuan
- Development sales revenue fell 39.1% to 452.6 billion yuan, while recurring business revenue rose 9.9% to 226.1 billion yuan, accounting for 33.3% of total revenue
- Contracted property sales increased 5.6% year-on-year to 116.5 billion yuan, ranking third in the industry, though contracted GFA dropped 23.2% to 3.16 million sqm
- The company held 47.12 million sqm in total land reserves, with 97.28 billion yuan in unrecognized contracted sales expected to be recognized in 2026
- Net interest-bearing debt ratio stood at 41%, with weighted average debt cost declining 9 basis points to 2.63%, the lowest in the industry
Why It Matters
The results highlight the ongoing challenges facing China's property sector, as traditional development sales continue to decline while recurring revenue streams become increasingly vital to maintaining profitability . CR Land's ability to maintain its dividend payout and keep financing costs at industry-low levels demonstrates its resilience compared to weaker peers, potentially positioning it as a consolidation beneficiary in China's consolidating real estate market .
The results highlight the ongoing challenges facing China's property sector, as traditional development sales continue to decline while recurring revenue streams become increasingly vital to maintaining profitability . CR Land's ability to maintain its dividend payout and keep financing costs at industry-low levels demonstrates its resilience compared to weaker peers, potentially positioning it as a consolidation beneficiary in China's consolidating real estate market .