Suxin Joyful Life Services (2152) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 27.5% to RMB924.6m, while profit for the year fell 17.4% to RMB66.2m as gross margin narrowed and other income declined.

• Growth was led by city services; contracted GFA reached 25.6m sq.m., up 53.3% YoY, including a 6.2m sq.m. Stone Lake Scenic Area project.

• Proposed final dividend: RMB0.3602 per share, tax inclusive, subject to shareholder approval.

Financial highlights

• Revenue was RMB924.6m, up 27.5% YoY; cost of sales rose to RMB762.7m from RMB578.1m, reflecting expanded services and new projects.

• Gross profit increased 10.1% to RMB161.9m, but gross margin contracted to 17.5% from 20.3%.

• Profit for the year decreased to RMB66.2m from RMB80.1m; profit attributable to owners was RMB65.3m versus RMB74.4m, and EPS was RMB0.65 versus RMB0.74.

• Other income and gains fell to RMB12.6m from RMB45.9m; 2023 included RMB29.5m relocation compensation and RMB4.7m government grants, versus RMB0.9m grants in 2024.

Outlook and guidance

• 2025 priorities include expanding coverage to all cities in Jiangsu Province, exploring other provinces, and pursuing new projects aligned with operational capabilities.

• Plans include upgrading city sanitation mechanization and smart equipment, improving service quality, and developing AI applications for service optimization.

• Value-added growth plans focus on spatial resources, community group purchasing, extended services and full-lifecycle property services.