Runhua Living Service Group Holdings (2455) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 17.6% YoY to RMB903.7m, while gross profit fell 4.0% to RMB127.9m; profit increased 9.0% to RMB45.5m.

• Basic EPS was RMB0.15, up 7.1% YoY; no final dividend was recommended.

Financial highlights

• Revenue increased RMB135.3m, or 17.6%, to RMB903.7m, driven mainly by property management growth.

• Gross profit declined 4.0% to RMB127.9m as service costs grew 22.1% to RMB775.8m; gross margin fell 3.1 percentage points to 14.2%.

• Profit for the year rose 9.0% to RMB45.5m; net profit margin eased to 5.0% from 5.4%.

• Adjusted for lower listing expenses, administrative expenses declined 6.7% to RMB73.4m; finance costs fell 14.0% to RMB8.4m.

Outlook and guidance

• Strategy focuses on deepening core strengths, diversifying growth channels and innovating smart services.

• Plans include organic growth, M&A and partnerships to expand in Shandong and enter developed neighboring regions, including the Yangtze River Delta and Beijing-Tianjin-Hebei.

• Priorities include value-added services and pursuing hospital and public-property projects; expansion is premised partly on continued PRC urbanisation and new-property growth.