Yuexiu Services Group (6626.HK) Q3 2024 Earnings Report

Yuexiu Services Group Limited reported QQ3 2024 revenue of 953.99 million CNY, up 11.5% year-over-year but down 2.7% quarter-over-quarter. The quarter featured margin contraction across gross profit and operating income, with gross profit of 197.13 million CNY (gross margin 20.66%) and operating income of 120.90 million CNY (operating margin 12.67%). Net income stood at 37.62 million CNY with a net margin of 3.94%, reflecting a year-to-year deterioration in profitability despite revenue growth. The quarter’s net result was influenced by a substantial negative other income/expenses swing and higher tax outlay embedded in the reported figures. Notwithstanding the earnings softness, Yuexiu Services maintained a robust liquidity profile, supported by a solid cash position and a negative net debt, signaling strong balance-sheet resilience in a challenging macro environment for China’s property market. Free cash flow generation remained positive at 84.84 million CNY, aided by a 90.42 million CNY cash flow from operations, though the company paid a meaningful dividend of 130.76 million CNY during the period. The business continues to benefit from two material segments—Non-Commercial Property Management and Value-Added Services, and Commercial Property Management and Operational Services—though segment-level revenue mix is not disclosed in the provided data. Overall, the QQ3 results illustrate a company with healthy cash generation and structural exposure to China’s property management market, but with near-term profitability headwinds tied to cost dynamics and the external real estate cycle.