Hollwin Urban Operation Service Group (2529) H1 2024 earnings summary

Executive summary

• H1 2024 revenue was RMB311.6m, down from RMB314.7m YoY; gross profit rose to RMB86.7m and profit for the period to RMB38.1m from RMB37.7m.

• Property management growth and cost savings lifted gross margin to 27.8% from 24.9%, partly offsetting lower urban services revenue after major projects concluded.

Financial highlights

• Cost of sales fell 4.9% to RMB224.9m from RMB236.5m; gross profit rose from RMB78.3m to RMB86.7m and operating profit from RMB48.3m to RMB49.9m.

• Profit before tax was RMB50.9m vs RMB50.1m; profit attributable to equity shareholders was RMB38.2m vs RMB37.7m.

• Administrative expenses rose 44.1% to RMB31.5m, partly due to staffing and listing-related fees; expected credit loss fell 53.2% to RMB3.4m.

Outlook and guidance

• H2 priorities include growth through acquisitions, equity investments, project wins, third-party customers and CSUD Group opportunities, while consolidating the Hunan base.

• Plans include improving service quality and customer satisfaction, expanding customized value-added services, and investing in digital systems, automation and data connectivity.