Lushang Life Services (2376) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 1.1% to RMB621.0m, while gross profit declined 21.6% to RMB117.1m and profit for the year fell 48.7% to RMB40.3m.

• Managed GFA reached 23.1m sq.m., up 4.1% YoY; no final dividend was recommended.

Financial highlights

• Revenue was RMB621.0m, down 1.1% YoY; operating costs rose 5.4% to RMB504.0m.

• Gross profit fell 21.6% to RMB117.1m; gross margin decreased to 18.9% from 23.8%.

• Net profit was RMB40.3m, down 48.7%; profit attributable to equity shareholders was RMB39.4m versus RMB76.9m.

• Basic and diluted EPS were RMB0.30, versus RMB0.66 in 2022.

Outlook and guidance

• 2024 priorities include service-quality improvement, stronger operating efficiency and brand building, with a stated aim of steady, progressive growth.

• Strategy centers on refining products, focusing regionally and differentiating development, while strengthening product, organizational, technology and operational capabilities.