China Resources Mixc Lifestyle Services (1209) H1 2024 earnings summary

Executive summary

• Revenue rose 17.1% YoY to RMB7.957 billion, driven by expansion in management scale and strong growth in commercial and property management segments.

• Net profit attributable to shareholders increased 36.4% YoY to RMB1.922 billion; core net profit (non-HKFRS) rose 24.2% to RMB1.766 billion.

• Interim dividend per share increased 25.1% YoY to RMB0.279, with a special dividend of RMB0.575 per share, raising the 2023 payout ratio to 100%.

• Total GFA under management reached 398 million sq.m., with 108 shopping malls as of 30 June 2024.

• Third-party projects contributed 21.4% of pre-tax profit, up 3.9 pts YoY.

Financial highlights

• Gross profit margin improved to 34.0% (+0.8 pt YoY); gross profit rose 20.0% to RMB2.70 billion.

• Commercial management gross margin rose to 60.9% (+2.4 pt), while property management margin dipped to 18.9% (-1.2 pt).

• Net profit attributable to shareholders increased 36.0% YoY to RMB1.908 billion; EPS rose 36.0% YoY to RMB0.836.

• Operating cash flow ratio climbed 4.9 pts YoY to 19.9%; operating net cash flow/core net profit reached 89.6%.

• Cash and cash equivalents stood at RMB9.44 billion as of 30 June 2024; gearing ratio at 43.4%.

Outlook and guidance

• Focus remains on quality improvement, efficiency enhancement, and expanding third-party and urban space projects, with continued emphasis on digitalization, ESG leadership, and membership program enhancement.

• The Group targets high-quality, large-scale growth in both commercial and property management, focusing on core cities and strategic M&A.

• Expects continued steady growth despite macroeconomic uncertainties, leveraging policy support and internal operational improvements.