Evergrande Property Services Group (6666) H2 2024 earnings summary

Executive summary

• Operating revenue reached RMB12,756.7 million, up 2.2% year-over-year, with net profit at RMB1,032.0 million, down 34.0% from 2023.

• Gross profit margin declined to 19.2% (down 5.7 percentage points), and net profit margin fell to 8.1% (down 4.4 percentage points).

• GFA under management increased to 579 million sq.m., with newly signed third-party GFA exceeding 47 million sq.m., more than doubling year-over-year.

• No final dividend was recommended for 2024.

Financial highlights

• Revenue: RMB12,756.7 million (+2.2% YoY); net profit: RMB1,032.0 million (-34.0% YoY); basic EPS: RMB0.09.

• Gross profit: RMB2,443.4 million; gross margin: 19.2% (down from 24.9% in 2023).

• Net assets increased by RMB958.0 million; cash and equivalents rose by RMB910.9 million to RMB2,834.9 million.

• No borrowings as of year-end; gearing ratio remains nil.

• Net current liabilities improved to RMB968.6 million (from RMB1,907.3 million in 2023); current ratio at 0.87.

Outlook and guidance

• Focus on upgrading service quality, expanding innovative businesses, and digital transformation.

• Strategic emphasis on both scale and quality, prudent financial policy, and technological integration.

• Continued efforts to recover losses from RMB13.4 billion deposit pledge; legal proceedings ongoing.