Suxin Joyful Life Services (2152) H1 2023 earnings summary

Executive summary

• H1 revenue rose 40.4% YoY to RMB341.4m; profit for the period increased 24.4% to RMB36.7m.

• Contracted GFA reached 15.7m sq.m. across 114 projects, up 82.6% YoY; 111 managed projects covered 14.7m sq.m.

• No interim dividend was declared.

Financial highlights

• Gross profit rose 34.2% to RMB75.3m; gross margin eased to 22.1% from 23.1%.

• Profit before tax was RMB49.5m versus RMB39.8m; profit attributable to owners was RMB34.8m versus RMB28.5m, and basic EPS was RMB0.34 versus RMB0.38.

• Other income and gains rose to RMB11.5m from RMB3.0m, including interest income, FX gains and investment-property fair-value gains.

• Administrative expenses rose 125.2% to RMB27.1m, primarily from higher credit-loss provisions.

• Finance costs increased 76.9% to RMB7.6m as waste collection centres entered operation.

Outlook and guidance

• Strategy prioritizes project-scale growth and profitability through M&A, equity investment, strategic cooperation, tighter diligence and selective tendering.

• Plans include deeper urban-services integration in Suzhou Gaoxin District, enhanced city-housekeeper digital functions, refined sanitation operations and expanded oversized-waste collection.

• Service initiatives include customer feedback, staff training, customized property solutions, online service and repair channels, and smart-property systems.