Greentown Management Holdings Company (9979) H1 2024 earnings summary

Executive summary

• Revenue for 1H2024 was RMB1,669.6 million, up 7.8% year-over-year, with net profit attributable to shareholders at RMB501.2 million, a 5.8% increase.

• Gross profit reached RMB860.1 million, up 6.7% year-over-year, with a gross margin of 51.5%, down 0.5 percentage points.

• Commercial project management remained the largest revenue contributor, growing 22.9% year-over-year, while government project management revenue declined 16.1%.

• The company maintained its No. 1 market share in project management, with projects in 128 cities and a contracted GFA of 122.8 million sqm, up 8.1% year-over-year.

• No interim dividend was declared for the period.

Financial highlights

• Administrative expenses decreased 7.7% year-over-year to RMB211.7 million.

• Net cash flow from operating activities was RMB77.5 million for the period.

• Costs of services increased 9.0% year-over-year to RMB809.5 million.

• Revenue per employee continued to grow, with a compound annual growth rate of 14.6% since 2020.

• Other services contributed RMB29.6 million, 1.8% of total revenue.

Outlook and guidance

• The company expects the project management industry to stabilize with a penetration rate around 30% and to shift from scale expansion to high-quality development.

• Plans to maintain industry leadership, leverage policy trends, and focus on strategic innovation and stakeholder returns.

• Urban village redevelopment, affordable housing, and distressed project relief are key growth drivers.

• Short-term industry growth is under pressure due to real estate market adjustments and intensified competition.

• Medium to long-term outlook remains positive, with significant growth opportunities expected as the market stabilizes.