Yuexiu Services Group (6626) H2 2024 earnings summary

Executive summary

• Revenue reached RMB3,868 million for 2024, up 20.0% year-over-year, with non-commercial property management and value-added services contributing RMB3,134 million (+19.2%) and commercial property management and operational services RMB734 million (+23.7%).

• GFA under management grew 6.3% to 69.31 million sq.m., and contracted GFA also rose 6.3% to 88.73 million sq.m.

• Gross profit margin declined to 23.3% (down 3.3 percentage points year-over-year).

• Profit attributable to owners was RMB353 million, down 27.5% due to a goodwill impairment; core net profit (excluding impairment) was RMB512 million, up 5.1%.

• Final dividend proposed at HKD0.083 per share, with total 2024 dividend at HKD0.183 per share.

Financial highlights

• Gross profit increased to RMB901.6 million (2023: RMB856.6 million), but net profit dropped to RMB285.8 million (2023: RMB499.9 million) due to a RMB236.9 million goodwill impairment.

• Basic EPS was RMB0.23 (2023: RMB0.32).

• Cash and cash equivalents plus time deposits totaled RMB4,701.9 million at year-end.

• No bank borrowings or major acquisitions/disposals during the year.

Outlook and guidance

• The industry is expected to see steady growth, higher concentration, and broader service offerings.

• The company will focus on refined services, digital intelligence, and high-quality expansion in strategic cities.

• Plans to enhance value-added services, strengthen self-operated businesses, and invest in digital transformation.