Country Garden Services Holdings Company (6098) H2 2024 earnings summary

Executive summary

• Revenue rose 3.2% year-over-year to RMB43,992.9 million, driven by growth in property management, community value-added, and "Three Supplies and Property Management" businesses, offset by declines in city services and commercial operational services.

• Net profit surged 262.8% to RMB1,874.5 million, while profit attributable to owners increased 518.7% to RMB1,808.4 million year-over-year.

• Core net profit attributable to owners fell 22.9% to RMB3,038.1 million, reflecting adjustments for non-recurring items.

• Gross profit decreased 3.8% to RMB8,400.6 million, with overall gross margin down 1.4 percentage points to 19.1%.

• Total bank deposits and cash increased 40.5% to RMB18,178.6 million, supporting a stable financial position.

Financial highlights

• Property management services revenue grew 4.9% to RMB25,910.4 million, accounting for 58.9% of total revenue.

• Community value-added services revenue rose 11.8% to RMB4,194.3 million, now 9.5% of total revenue.

• Value-added services to non-property owners dropped 54.6% to RMB704.5 million.

• "Three Supplies and Property Management" revenue increased 25.1% to RMB8,156.2 million.

• City services revenue declined 14.7% to RMB4,167.6 million; commercial operational services fell 38.1% to RMB627.0 million.

• Net cash from operating activities was RMB3,873.1 million, down 16.1% year-over-year.

Outlook and guidance

• Focus on digital transformation, AI integration, and standardization to enhance service quality and operational efficiency.

• Continued development of differentiated value-added services and expansion of community-based offerings.

• Strategic emphasis on external market expansion for commercial operational services and new business incubation.