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Market Review for 2024
In 2024, China’s economy underwent cross-cyclical adjustments, while the real estate sector strived to regain its internal growth momentum. Due to ongoing adverse effects brought about by changes in the external environment, deep-seated structural contradictions that have accumulated over time in the country have emerged. Accompanied by issues such as weak domestic demand and low expectations, the real estate market did not show any prominent signs of improvement. Nationwide, investment in real estate development decreased by 10.6% year-on-year, and the floor space of buildings under construction of real estate development enterprises and the funds for investment of real estate development enterprises fell by 12.7% and 17.0% year-on-year, respectively. Thanks to increasing policy support, the market witnessed a slow recovery in the second half of the year. In response to this market situation, the Group has continued to optimize its cost structure by adjusting its operating strategy during the year, with a focus on the core cities. By elevating the efficiency of its main business and diversifying business fields, the Group strived for a stable development, maintaining its market competitiveness.
Business Review of the Group
For the year ended 31 December 2024, the Group’s turnover amounted to approximately HK$947 million, a decrease of approximately 27% from the same period last year (2023: approximately HK$1,295 million), and loss attributable to shareholders amounted to approximately HK$280 million (2023: HK$531 million). Basic loss per share was HK41.5 cents (2023: HK78.8 cents). The Board of Directors did not recommend the payment of a final dividend for the year ended 31 December 2024.
Turnover of the Group’s property real estate agency business in 2024 was approximately HK$924 million (2023: approximately HK$1,251 million), accounting for 98% of the Group’s turnover, while the turnover of the financial services business was approximately HK$23 million (2023: approximately HK$44 million), accounting for 2% of the Group’s turnover.
For the full 2024 year, the Group’s total value of properties transacted was approximately HK$86 billion, while the total gross floor area sold was approximately 3.7 million square meters.
1. Property Real Estate Agency Services Business
Turnover of the Group’s property real estate agency business was approximately HK$924 million (2023: approximately HK$1,251 million). In the face of a challenging market environment, the Group sought to build a more resilient operating system to enhance business performance under its core strategy of “dare to innovate, strive for profit, and achieve scale”. During the year, the Group regularly conducted comprehensive assessments of various businesses in different regions. Through in-depth analysis of market data, customer feedback and internal operations, a number of targeted adjustments were made. The Group also continued to promote its digital integration strategy, utilizing the new media business and internet marketing to expand its brand influence, attract more potential customers, and drive continuous business growth.
During the year, the Group’s agency business covers approximately 40 large and medium size cities across the country, with approximately 600 agency projects and around 70 secondary branches.
2. Financial Services Business
During the year, the turnover of the financial services business was approximately HK$23 million (2023: approximately HK$44 million). The Group’s financial services business focused on serving existing high-quality customers and took a prudent and pragmatic approach to implementing strict risk controls and conducting business operations in response to market changes, with an aim to maintain business stability.
3. Other value-added services
The valuation research business continued to attract customers to the Group. During the year, the Group was committed to optimizing information dissemination projects and improving their accuracy, practicability, extensiveness and timeliness. The Group also explored the application of new models and technologies to support its sales capabilities and strive to provide excellent services to customers.
In addition, the Group upgraded its online property search service platform “AI Hopefluent” to the “Bang Housing” APP and WeChat mini-program, further integrating online and offline service resources and providing a full-process, comprehensive shopping guide service. “Bang Housing” has also signed a cooperation agreement with a leading Internet company in Mainland China to jointly promote technological innovation and industrial upgrading in the real estate sector. As of 2024, the “Bang Housing” business covers more than 70 cities across the country, and the number of omni-media channel users has exceeded 8 million.
At the same time, the Group actively advanced the innovative online channel marketing business, combined big data and launched online and offline joint promotions to obtain customer information, provide professional services throughout the process, and improve transaction efficiency.
Prospects for 2025
With the government launching a series of easing and stimulus measures, the overall real estate market is stabilizing from its downturn and the transaction volume of both new and second-hand homes has rebounded significantly since the fourth quarter. The market is expecting a slight improvement, and housing prices in higher-tier cities have reversed their month-onmonth decline. Looking ahead to 2025, the Group is set to benefit from the structural adjustments of the Chinese economy and the government’s recent advocacy of the “vigorously promote urban renewal and reform” initiative. Under the guidance of the country’s “14th Five-Year Plan” and the “dual circulation” economic strategy, it is believed that the real estate market will enter a new phase of development and create ample room for the Group’s business expansion. The Group will continue to focus on the real estate service business, cultivate core city clusters, and strive to realize healthy growth.
The rapid development of artificial intelligence (AI) has brought unprecedented changes and opportunities to the real estate industry. The Group will actively explore the in-depth application of AI technology in the fields of market research, strategic consulting, property valuation and risk control, aiming to accurately capture market dynamics and customer needs, and provide investors and partners with more forward-looking decision-making support. At the same time, the Group will deepen the use of new media and launch other innovative businesses to improve business quality and operational efficiency, thereby creating higher value for the Group and its customers.
The Group will continue to review its cost structure and achieve cost reduction and efficiency enhancement through measures such as optimizing management processes, improving operational efficiency, and implementing refined management. The Group will also strengthen internal management and improve employee quality and business capabilities to provide customers with a better service experience.
Looking ahead, Hopefluent will remain committed to delivering superior products and services to customers, adhering to its sustainable development strategy, and fulfilling its corporate social responsibility to create long-term value for all investors.