Greentown Management Holdings Company (9979) H2 2024 earnings summary

Executive summary

• Maintained industry leadership in project management for nine consecutive years, with a top market share of 22.1% and leading rankings in new contracts, deliveries, sales, and product quality in 2024.

• Revenue increased by 4.2% year-over-year to RMB 3,441.2 million, driven by commercial project management growth, while net profit attributable to shareholders was RMB 801.1 million, reflecting margin compression and higher costs.

• Implemented significant organizational reforms, boosting efficiency and stabilizing key indicators in the second half of the year.

• Expanded city coverage to 130 cities and increased total contracted GFA to 125.6 million sqm, up 5% year-over-year.

• Proposed a final dividend of RMB 0.24 per share, pending shareholder approval.

Financial highlights

• Revenue: RMB 3,441.2 million (+4.2% YoY); Gross profit: RMB 1,705.6 million (-1.0% YoY); Net profit attributable to shareholders: RMB 801.1 million; Net margin: 23%.

• EPS declined 18% year-over-year to RMB 0.41; diluted EPS at RMB 0.40.

• Gross profit margin decreased by 2.6 percentage points to 49.6%.

• Dividend per share was RMB 0.24, with a payout ratio of 60%.

• Net cash flow from operating activities was RMB 291.7 million; no bank liabilities.

Outlook and guidance

• Industry penetration rate remains low at 6.28%, indicating significant long-term growth potential.

• Policy support and market stabilization expected to unlock further project management demand.

• Strategic focus on quality expansion, product upgrades, digital transformation, and AI applications.

• Ongoing reforms in organizational structure and incentive mechanisms to enhance competitiveness.