Executive Summary
Roiserv Lifestyle Services reported Q3 2024 revenue of 480.88 million CNY, up 1.46% year-over-year but down 51.80% quarter-over-quarter. The sharp QoQ decline contrasts with a modest YoY improvement and reflects seasonality and margin mix rather than a fundamental deterioration in longer-term demand. Gross profit reached 87.98 million CNY with an 18.30% gross margin, while operating income was 15.50 million CNY (operating margin 3.22%) and net income stood at 11.36 million CNY (net margin 2.36%). EBITDA was 6.85 million CNY, yielding an EBITDA margin of 1.42%. Despite subdued near-term earnings, the company maintains a robust balance sheet with a net cash position of roughly 566 million CNY (net debt = -566.24 million), supported by a sizable cash balance of 583.60 million and limited leverage (debt to equity approximately 0.79%). Operating cash flow was 15.22 million CNY, with free cash flow of 13.14 million, underscoring cash generation despite earnings volatility.
Key implications for investors: (1) profitability remains thin in Q3 due to margin mix and working-capital dynamics, (2) liquidity is strong, providing strategic optionality to weather cyclical softness and fund growth initiatives, and (3) cash generation supports shareholder-friendly actions or strategic investments should opportunities arise. The data also indicate elevated receivables and a long cash conversion cycle, signaling working-capital risks that warrant ongoing management focus. Overall, Roiserv appears better positioned on a balance-sheet basis than on a near-term earnings trajectory, with a cautious but constructive view on long-run property-management demand in China.
Key Performance Indicators
QoQ: -62.74% | YoY:-28.37%
QoQ: -86.62% | YoY:-57.06%
QoQ: -87.63% | YoY:-20.49%
QoQ: -87.60% | YoY:-21.12%
Key Insights
Revenue: 480,881,857 CNY; YoY +1.46%; QoQ -51.80%
Gross Profit: 87,981,866 CNY; YoY -28.37%; QoQ -62.74%; Gross Margin: 18.30%
Operating Income: 15,504,211 CNY; YoY -57.06%; QoQ -86.62%; Operating Margin: 3.22%
Net Income: 11,357,332 CNY; YoY -20.49%; QoQ -87.63%; Net Margin: 2.36%
EBITDA: 6,848,240 CNY; EBITDA Margin: 1.42%
EPS: 0.03 CNY; Diluted EPS: 0.03 CNY; YoY EPS Change: -21.12%; QoQ EPS Change: -87.60%
Cash Flow: Operating cash flow 15,216,642 CNY; Free cash flow 13,139,171 CNY
Balance S...
Financial Highlights
Revenue: 480,881,857 CNY; YoY +1.46%; QoQ -51.80%
Gross Profit: 87,981,866 CNY; YoY -28.37%; QoQ -62.74%; Gross Margin: 18.30%
Operating Income: 15,504,211 CNY; YoY -57.06%; QoQ -86.62%; Operating Margin: 3.22%
Net Income: 11,357,332 CNY; YoY -20.49%; QoQ -87.63%; Net Margin: 2.36%
EBITDA: 6,848,240 CNY; EBITDA Margin: 1.42%
EPS: 0.03 CNY; Diluted EPS: 0.03 CNY; YoY EPS Change: -21.12%; QoQ EPS Change: -87.60%
Cash Flow: Operating cash flow 15,216,642 CNY; Free cash flow 13,139,171 CNY
Balance Sheet Highlights: Total assets 4,174,097,345 CNY; Total liabilities 1,966,170,628 CNY; Total stockholders’ equity 2,188,011,571 CNY
Liquidity & Leverage: Cash & equivalents 583,595,247 CNY; Net debt -566,237,214 CNY; Current ratio 1.945; Quick ratio 1.770; Cash ratio 0.301; Debt to equity 0.793%; Debt to capitalization 0.787%
Asset Turnover metrics: Asset turnover 0.115; Fixed asset turnover 9.45; Receivables turnover 0.224; Inventory turnover 1.159; DSO 401.45 days; DIO 77.69 days; DPO 16.49 days; Cash Conversion Cycle 462.65 days
Valuation Signals: P/E 9.87x; P/B 0.205x; P/S 0.932x; EV/FCF not provided; Cash-adjusted metrics imply a net-cash balance and a negative enterprise value, reflecting liquidity surplus relative to reported debt.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
480.88M |
1.46% |
-51.80% |
| Gross Profit |
87.98M |
-28.37% |
-62.74% |
| Operating Income |
15.50M |
-57.06% |
-86.62% |
| Net Income |
11.36M |
-20.49% |
-87.63% |
| EPS |
0.03 |
-21.12% |
-87.60% |
Key Financial Ratios
operatingProfitMargin
3.22%
Management Commentary
Transcript data not provided in the dataset. No management quotes are available for Q3 2024. If transcripts become available, key themes would likely include: (a) strategy for expanding contracted revenue and reducing working-capital pressure, (b) cost-control initiatives and efficiency improvements, (c) liquidity management amid a slower property market, and (d) potential diversification into higher-margin service lines or digital/property-tech enhancements.
Forward Guidance
No formal forward guidance was disclosed in the provided data. Given the broader market backdrop in China’s real estate sector, investors should monitor: (1) the trajectory of contracted revenue and contract renewal rates in Roiserv’s property management portfolio, (2) changes in working-capital efficiency, particularly receivables collection cycles, (3) with limited leverage, the company’s ability to deploy excess cash into growth initiatives or returns, and (4) sensitivity to macro indicators such as housing sales volumes, urbanization pace, and local government policies affecting property management spending. If management signals stabilization or improvement in collections and a moderate expansion of high-margin services, the investment case could improve despite near-term earnings volatility.