Redco Healthy Living Company (2370) H2 2024 earnings summary

Executive summary

• FY24 revenue fell 6.6% YoY to RMB419.6m; gross profit declined 9.7% to RMB113.4m, and net profit of RMB0.3m turned to a RMB20.1m loss.

• Managed GFA grew 2.8% to 21.1m sq.m.; contracted GFA rose 0.7% to 27.3m sq.m.

Financial highlights

• Revenue was RMB419.6m, down 6.6% YoY; cost of services decreased 5.4% to RMB306.2m.

• Gross profit declined 9.7% to RMB113.4m; gross margin contracted 100 bps to 27.0%.

• Operating loss was RMB13.2m versus operating profit of RMB6.0m in FY23; net loss was RMB20.1m versus net profit of RMB0.3m.

• Basic and diluted loss per share was RMB14.21 cents, versus RMB4.99 cents loss per share in FY23.

Outlook and guidance

• 2025 priorities include deepening property services in developed regions, expanding healthcare and smart technology, and integrating AI, robotics and big-data tools into service delivery.

• Plans include upgrading the “lifestyle + healthcare” dual-butler system and investing in green technology and sustainable development; no numeric guidance was stated.