Core Viewpoint - China Communications Real Estate Company Limited (中交地产) reported a significant decline in performance for 2024, with a revenue of 18.302 billion yuan, a year-on-year decrease of 44.59%, and a net loss of 5.179 billion yuan, marking a substantial increase in losses by 221.44% [2][3] Financial Performance - The company experienced a continuous decline in performance over the past two years, accumulating losses of 6.8 billion yuan [2][4] - In 2023, the company reported a revenue of 32.468 billion yuan, down 15.60% year-on-year, and a net loss of 1.673 billion yuan [4][6] - Real estate sales revenue for the previous year was 17.181 billion yuan, a decrease of 46.69% [4][6] - The total sales amount for the company was 15.643 billion yuan, down 58.13% year-on-year, with a signed sales area of 853,200 square meters, a decrease of 52.51% [4][5] Business Strategy and Transition - In January 2024, the company announced its exit from the real estate business, focusing on light asset businesses such as property services and asset management [2][6] - The company plans to transfer its real estate development assets and liabilities to its controlling shareholder, China Communications Real Estate Group [6][7] - The company has restructured its real estate operations, reducing the number of city companies from 16 to 9 and simplifying management layers [4][6] Asset Management and Property Services - As of the end of 2024, the company held 117 real estate projects, primarily cooperative projects, with a total land area reduced to 10.45 million square meters [7] - The company reported a revenue of 172 million yuan from property leasing and 728 million yuan from property management, with the latter showing a year-on-year increase of 56.82% [7][8] - The company acquired 100% equity of a property company from its parent company, which contributed to the expansion of its property management business [8] Stock Market and Risk Warning - The company was placed under delisting risk warning and its stock name changed to "*ST中地" after a one-day suspension [2][8] - As of the end of 2024, the company's total assets were 107.698 billion yuan, with a net asset value of -3.579 billion yuan, leading to the delisting risk [8]

Core Viewpoint - In 2024, China Communications Real Estate Company (000736.SZ) experienced a significant increase in losses, with a net loss of 5.179 billion yuan, leading to a negative net asset value and subsequent stock delisting risk warning [2][3]. Financial Performance - The company's revenue for 2024 was 18.302 billion yuan, a year-on-year decrease of 44.59% [2][3]. - The net loss for 2024 was 5.179 billion yuan, representing a year-on-year decline of 221.44% [2][3]. - As of December 31, 2024, total assets were 107.698 billion yuan, down 12.63% from the previous year, and net assets attributable to shareholders decreased by 3.579 billion yuan [3][4]. Sales and Market Activity - The company reported a signed sales area of 853,200 square meters in 2024, a decrease of 52.51% year-on-year, with a signed sales amount of 15.643 billion yuan, down 58.13% [4]. - The cash collection from sales was 24.707 billion yuan, a decline of 45.07% compared to the previous year [4]. - The company did not acquire new land in the public market during 2024, maintaining 117 real estate projects with a total land area of 10.45 million square meters [4]. Strategic Response - To mitigate delisting risks and improve financial performance, the company plans to transfer its real estate development assets and liabilities to its controlling shareholder, China Communications Real Estate Group [6][7]. - The company aims to focus on light asset businesses such as property services and asset management post-asset transfer [6][7]. Business Composition and Margins - As of 2024, the contribution of property management and project management to total revenue was less than 1% [8]. - The company completed the acquisition of 100% equity in China Communications Property Service Group in 2024, which increased property management revenue to 72.8 million yuan, accounting for 3.98% of total revenue [8]. - The gross margin for property management was 16.23%, down 7.14 percentage points year-on-year [8].