China Resources Mixc Lifestyle Services (1209) H2 2024 earnings summary

Executive summary

• Revenue rose 15.4% YoY to RMB17.043 billion, driven by both commercial and property management segments, with core net profit up 20.1% YoY to RMB3.507 billion and net profit attributable to shareholders up 23.9% to RMB3.629 billion.

• Gross profit increased 19.5% YoY to RMB5.609 billion, with gross margin improving to 32.9%.

• Retail sales of shopping malls rose 18.7% YoY, outperforming industry averages, with 21 new mall openings and 122 malls in operation.

• Total GFA under management reached 413 million sq.m., up 11.6% from end-2023, with strong third-party project expansion.

• Annual dividend per share increased 31.0% YoY to RMB0.922, with a special dividend of RMB0.614, and total dividends for the year at RMB2.111 per share.

Financial highlights

• Commercial management business revenue grew 21.4% YoY to RMB6.274 billion; property management business revenue rose 11.6% YoY to RMB10.715 billion.

• Gross profit margin for commercial management improved to 60.2%, while property management margin was 17.0%.

• Earnings per share increased 23.9% YoY to RMB1.590; core net profit per share (non-HKFRS) was RMB1.536.

• Operating net cash flow/core net profit ratio reached 121.4%, up 17.2 pt YoY.

• Gearing ratio stood at 42.2%, down 0.1 percentage point YoY.

Outlook and guidance

• 77 commercial management projects in pipeline, with a balanced mix of parent company and third-party projects, supporting long-term growth.

• Focus on high-quality expansion in first- and second-tier cities, digital transformation, and customer-centric service upgrades.

• Technology empowerment and digitalization to drive operational efficiency and customer experience.

• Membership business will focus on points, benefits, and data to drive engagement and monetization.