Onewo (2602) H1 2024 earnings summary

Executive summary

• Total revenue for the six months ended June 30, 2024, was RMB17,559.8 million, up 9.6% year-over-year, with recurring businesses contributing 84.9% of revenue and growing 16.7%.

• Net profit attributable to shareholders was RMB771.7 million, down 22.6% year-over-year, while reported profit dropped 23.4% to RMB804.4 million, mainly due to a sharp decline in other income and gains.

• Core net profit was RMB1,201.8 million, a 2.7% decrease year-over-year.

• Interim and special dividends totaling RMB1.022 per share (including tax) were proposed, subject to shareholder approval.

Financial highlights

• Gross profit was RMB2,396.5 million, down 0.6% year-over-year; gross margin declined to 13.6% from 15.1%.

• Cash and cash equivalents stood at RMB12,197.1 million as of June 30, 2024, with no bank loans or borrowings; net cash position maintained.

• Selling and distribution expense ratio rose by 0.1 percentage point to 1.5% of revenue, while administrative expense ratio fell by 0.8 percentage point to 5.4%.

• Earnings per share were RMB0.66, down from RMB0.85 year-over-year.

Outlook and guidance

• Focus on optimizing community environments, asset preservation, and expanding recurring business with process transformation and customer diversification.

• Plans to further reduce developer-related business exposure and strengthen independent business foundation.

• Strategic emphasis on technology-driven efficiency, high-quality customer acquisition, and process-transforming at least 50 more Onewo Towns in the second half of 2024.

• Continued exploration of value-added services for enterprises, especially in energy management and dual-carbon economy.