Key Facts from China Yuanbang Property Holdings Limited’s FY2024 Report:

Report Date and Financial Year:

• This report covers the financial year ending on June 30, 2024, and was released on October 11, 2024.

Financial Performance:

• Revenue: RMB 170.8 million, down 28.7% from the previous year (FY2023: RMB 239.6 million). The decline was due to a reduction in the number of residential units handed over during the year.
• Gross Loss: The company reported a gross loss of RMB 27.5 million compared to a gross profit of RMB 67.1 million in FY2023.
• Net Loss: The Group experienced a net loss of RMB 145.7 million, which was an improvement compared to a net loss of RMB 234.1 million in FY2023.
• Loss Per Share: RMB -2.07 for FY2024 compared to RMB -3.04 in FY2023.
• Net Asset Value Per Share: RMB 4.35, down from RMB 6.87 in the previous year.

Special Actions and Measures:

To address its financial challenges, the company has taken several steps:

1. Actively engaging with lenders to renew borrowings and prevent immediate repayment demands.
2. Seeking new financing channels.
3. Implementing measures to accelerate property sales, particularly pre-sales.
4. Controlling administrative costs and reducing unnecessary expenditures.

Dividend:

• No dividends were declared for FY2024 as the company aims to conserve cash to meet operational and financial needs.

Notable Points for Investors:

• The Group is focusing on reducing administrative costs, renewing borrowings, and accelerating property sales. However, it continues to face significant challenges due to market conditions in China, especially in the real estate sector.
• Despite these efforts, there are concerns about the company’s ability to remain a going concern, as cash resources and borrowing renewals remain uncertain.

Recommendations:

• For Existing Shareholders: Given the company’s ongoing losses, poor market conditions, and the uncertain success of its cost-cutting and financing strategies, it may be prudent for current investors to reconsider holding their position and consult with a financial advisor. Monitoring the company’s progress in stabilizing cash flow and securing financing is critical.

• For Potential Investors: New investors should be cautious. Entering this stock carries significant risk due to financial instability, losses, and high debt levels. It would be advisable to wait for clearer signs of recovery or significant improvements in the company’s financial health before considering investment.

Disclaimer:

This analysis is based solely on the financial statements provided in the company’s FY2024 report. It does not consider any external factors or market conditions not covered in the report. Investors should conduct their own due diligence or consult a financial advisor before making any investment decisions.