CD International (1908.HK) Q4 2024 Earnings Report

CD International Investment Group Limited delivered a resilient Q4 2024 performance within a capital-intensive real estate development cycle. Revenue for the quarter stood at 55,116,490,500 CNY, up 0.15% year over year (YoY) and flat quarter over quarter (QoQ), while gross profit rose 34.5% YoY to 7,534,846,000 CNY, driving a robust gross margin of 13.67%. EBITDA and operating income expanded meaningfully, contributing to a net profit of 1,993,385,500 CNY and an earnings per share (EPS) of 0.76 (basic) / 0.88 (diluted). The quarter benefits from operating leverage in project execution and cost discipline, but is set against a highly cash-intensive working capital profile.

Balance sheet strength is evident in sizable liquidity—cash and cash equivalents of 57.26b CNY and total cash and short-term investments of 62.46b CNY—yet the company carries a heavy inventory load (247.03b CNY) and a high debt burden (total debt 84.64b CNY; net debt 27.38b). Free cash flow generation remained positive at 3.47b CNY, underscoring ongoing cash generation from operations, though capital expenditure was modest (104.53m CNY) in the period. The substantial accumulated other comprehensive income (OCI) and a large equity base reflect the company’s complex asset mix, including significant long-term investments.

The investment thesis remains contingent on executing its Mainland China development pipeline, optimizing working capital, and managing leverage as real estate cycles evolve. Investors should monitor project progress, inventory turnover dynamics, and the company’s ability to convert its sizable asset base into sustainable cash flow while navigating regulatory and market risk in China’s property sector.