Zhong Guo Jing Ying Bao·2025-03-25 06:43Core Viewpoint - The company reported a significant financial downturn, transitioning from profit to loss, primarily due to declining revenue from its mainland property development business and substantial impairment losses on investment properties [1][2]. Financial Performance - For the fiscal year 2024, the company's revenue decreased by 36% year-on-year, while operating profit fell by 18% [1]. - The company recorded a loss attributable to shareholders of HKD 32.24 billion, compared to a profit of HKD 9.45 billion in 2023 [1]. - The basic net profit for 2024 dropped by 22% to HKD 27.98 billion, attributed to reduced sales recognition from mainland property developments and increased impairment provisions [1][2]. Property Development and Sales - The signed sales amount for mainland development properties decreased to RMB 1.4 billion in 2024, down from RMB 2.6 billion in 2023 [2]. - The total developed and undeveloped inventory stands at 1.2 million square meters, including 400,000 square meters of completed non-residential properties with slow sales [2]. - The company has not purchased new land since 2019 and plans to continue selling existing residential inventory based on market conditions [2]. Investment Properties - The overall income from mainland investment properties fell by 4% to HKD 45.71 billion, with operating profit declining by 6% to HKD 29.83 billion [3]. - The company faces challenges in the office market due to oversupply and weak demand, leading to continued pressure on rental rates and occupancy [3]. Market Outlook - The company acknowledges that while government policies aim to stabilize the real estate market, the effectiveness and implementation of these policies remain uncertain [3]. - The company holds a 22% stake in Greentown China, which has been active in the market, allowing the company to participate indirectly [3]. - The company plans to maintain its strength and wait for the next market cycle to arrive, emphasizing the need for cautious investment in the current environment [3].