Lushang Life Services (2376) H2 2024 earnings summary

Executive summary

• FY2024 revenue was RMB608.9m, down 1.9% YoY against 2023 pre-restatement revenue; net profit attributable to owners was RMB45.1m, up 12.1% on the same comparison basis.

• Managed GFA rose 2.3% to 23.6m sq.m.; contracted GFA was 26.6m sq.m., broadly stable YoY.

• The Board recommended a final cash dividend of RMB0.1080 per share, subject to shareholder approval.

Financial highlights

• Revenue was RMB608.9m; reported comparison with restated 2023 revenue of RMB956.6m shows a 36.3% decline, while revenue was down 1.9% against pre-restatement 2023 revenue of RMB621.0m.

• Gross profit was RMB115.9m, down 1.0% against pre-restatement 2023; gross margin was 19.0% versus 18.9%.

• Net profit was RMB45.1m versus RMB40.3m in 2023 before restatement; against restated 2023 net profit of RMB45.9m, it declined 1.7%.

• Operating profit was RMB51.0m versus RMB57.0m restated; total profit was RMB59.1m versus RMB56.7m restated.

• Cash and cash equivalents reached RMB425.2m at year-end, up 3.2% YoY per management discussion; the financial summary reports a 3.4% increase.

Outlook and guidance

• 2025 priorities are quality improvement and management upgrades under a “Quality Leap Year” strategy, with emphasis on services, market expansion, efficiency and lean management.

• Strategy centers on deepening quality and regional development, distinctive services, service innovation, team collaboration, digital capability and quality control.

• No future plan for material investments or capital assets was stated; new business development opportunities will continue to be assessed.