China Resources Mixc Lifestyle Services (1209) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 22.9% YoY to RMB14.77bn; profit attributable to shareholders increased 32.8% to RMB2.93bn, and core profit rose 31.2% to RMB2.92bn.

• Managed residential and other non-commercial GFA reached 355.3m sq.m.; commercial operations covered 98 opened malls and 26 office buildings, with 3 mall subleasing projects.

• Recommended final dividend was RMB0.481 per share, up 54.2% YoY; annual dividend payout ratio reached 55%.

Financial highlights

• Revenue was RMB14,766.95m, up 22.9% YoY; gross profit increased 30.0% to RMB4,694.28m.

• Net profit was RMB2,942.64m, up 33.0% YoY; profit attributable to shareholders was RMB2,928.75m versus RMB2,206.13m in 2022.

• Profit before tax rose to RMB3,912.12m from RMB2,906.15m; income tax expense was RMB969.48m versus RMB692.91m.

• Marketing expenses increased 88.3% to RMB284.7m amid expansion and new subleasing openings; administrative expenses fell 9.8% to RMB949.8m on cost control and efficiency gains.

Outlook and guidance

• 2024 priorities: pursue high-quality growth, profitable revenue and cash generation; expand selectively through acquisitions, commercial projects and third-party property management engagements.

• Commercial plans include strengthening MIXC, MIXC ONE and MIXC World, deepening luxury mall operations, trialling a cosmetics business and consumption fund, and developing integrated office leasing, operations and management.

• Property management priorities include basic-service quality, market expansion and M&A, value-added and engineering services, urban-space projects, and digital transformation; no numerical earnings guidance was stated.