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S-Enjoy Service Group (1755) investor relations material
S-Enjoy Service Group H2 2024 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Revenue declined 6.8% year-over-year to RMB5,055.6 million, with significant drops in value-added services and a sharp swing to a net loss of RMB875.6 million from a profit of RMB507.9 million in 2023.
Gross profit fell 34.9% to RMB936.6 million, with gross margin dropping 8.0 percentage points to 18.5%.
The company’s catering services grew over 20% year-over-year, now accounting for about 10% of total revenue.
The board meeting to approve audited results was postponed due to audit finalization delays; trading remains suspended.
Financial highlights
Property management services revenue rose 0.6% to RMB3,576.0 million, now 70.8% of total revenue.
Community-related value-added services revenue dropped 9.9% to RMB1,184.8 million; developer-related value-added services plunged 46.9% to RMB294.8 million.
Gross profit margin for property management services fell to 16.6% (from 24.0%), community-related to 26.4% (from 35.7%), and developer-related to 10.5% (from 20.8%).
Basic and diluted loss per share was RMB0.96, compared to earnings per share of RMB0.52 in 2023.
Administrative expenses (excluding goodwill impairment) were RMB488.7 million, up 0.6% year-over-year.
Income tax expense decreased 48.2% to RMB71.4 million.
Outlook and guidance
Management expects continued prudent strategy in 2025, focusing on core business quality and customer satisfaction.
Revenue from related-party services is expected to further decline, with new connected transactions capped at RMB120 million in 2025.
The company is confident in continued growth of catering services, with annualized contract value exceeding RMB600 million.
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