Oppein Home Group (603833) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was RMB 18.92 billion, down 16.93% year-over-year; net profit attributable to shareholders was RMB 2.60 billion, down 14.38%, marking the first double-digit decline in both revenue and profit in 30 years.

• Gross margin improved to 35.91%, up 1.76 percentage points year-over-year, driven by supply chain reforms and cost controls.

• Main sales channel (dealers) revenue fell 20.10%, while direct sales grew 0.57% and overseas sales surged 34.42%.

• Operating cost dropped 19.15% year-over-year; net profit margin rose to 13.76%, up 0.48 percentage points.

• Board proposes a cash dividend of RMB 2.48 per share (total ~RMB 1.5 billion), representing 57.8% payout ratio.

Financial highlights

• Operating cash flow was RMB 5.50 billion, up 12.73% year-over-year.

• Net assets attributable to shareholders at year-end: RMB 19.05 billion, up 5.16% year-over-year.

• Total assets: RMB 35.23 billion, up 2.56% year-over-year.

• Basic EPS: RMB 4.29, down 13.86% year-over-year; diluted EPS: RMB 4.23.

• Adjusted net profit (excluding non-recurring items): RMB 2.32 billion, down 15.65% year-over-year.

• Non-recurring gains: RMB 283 million, mainly from government subsidies and investment income.

Outlook and guidance

• 2025 strategy focuses on deepening reforms, cost control, and digital/AI transformation to drive efficiency and competitiveness.

• Company targets stable profit quality improvement and sustainable growth, with a minimum annual cash dividend of RMB 1.5 billion for 2024-2026.

• Will continue to push “big home” strategy, expand product/service integration, and strengthen overseas and digital channels.