Greentown Service Group (2869) investor relations material

Executive summary

• Revenue grew 7.1% year-over-year to RMB19,164.4 million, with core operating profit up 24.6% to RMB1,877.5 million and profit attributable to equity shareholders rising 29.9% to RMB880.2 million from continuing operations.

• Growth was driven by expansion in operational scale, improved management efficiency, and strong performance in property services, which accounted for 71.2% of revenue.

• The Group completed the disposal of its Australian childcare business in 2024, which is now classified as an associate.

Financial highlights

• Gross profit increased 10.3% year-over-year to RMB3,322.2 million, with gross margin rising to 17.3%.

• Net profit margin improved to 4.9% from 4.2% in 2024.

• Cash and cash equivalents rose 9.6% to RMB5,319.9 million; time deposits increased 50.8% to RMB1,686.6 million.

• Net cash from operating activities was RMB1,527.7 million, up 3.6% year-over-year.

• Debt ratio increased slightly to 52.4%.

• Final dividend of HK$0.16 and special dividend of HK$0.08 per share proposed, with a composite payout ratio of 75%.

Outlook and guidance

• The Group expects continued growth, focusing on deepening reforms, value enhancement, and leveraging technology and service innovation.

• Strategic priorities include project-centric operations, product innovation, and long-termism to navigate industry challenges.