Xinyuan Property (1895.HK) Q3 2024 Earnings Report

Xinyuan Property Management Service Cayman Ltd delivered a solid QQ3 2024 with revenue of 231.73 million CNY, up 11.74% year over year and 14.32% quarter over quarter. The firm preserved healthy margins, posting gross profit of 56.38 million CNY and a gross margin of 24.33%, while operating income reached 36.59 million CNY and EBITDA 38.85 million CNY, translating into an operating margin of 15.79% and EBITDA margin of 16.76%. Net income registered 18.10 million CNY, up an exceptional 387.25% YoY, though this figure was affected by a material negative other income/expenses swing of -27.49 million CNY, illustrating ongoing earnings volatility from non-operating items.

Cash flow remains accretive: operating cash flow was 25.28 million CNY and free cash flow was 23.33 million CNY, supported by a positive working-capital contribution (change in working capital -9.99 million CNY) and a modest capex outlay of 1.96 million CNY. The company continues to generate excess liquidity, evidenced by a net cash position (net debt of -216.97 million CNY) on a balance sheet with total assets of 1,280.72 million CNY and total stockholders’ equity of 583.99 million CNY. However, financing activities reduced cash by 13.23 million CNY and dividends paid were 14.78 million CNY, contributing to a negative overall cash change for the period.

Key takeaway for investors: the QQ3’24 results demonstrate meaningful top-line growth, margin stability, and robust cash generation, underpinned by a strong balance sheet and a net-cash stance. The reliance on non-operating items to drive net income highlights the importance of focusing on core operating profitability and cash flow sustainability going forward. Absence of explicit management guidance necessitates a projected, scenario-based outlook anchored in China’s property-management demand, the expansion of value-added services, and ongoing efficiency initiatives.