- Dexin Services Group Limited reported QQ1 2024 revenue of CNY 236.6 million, up 3.3% year over year, as the company continues to expand its property management services in Zhejiang and leverage value-added offerings. The QQ1 revenue decline versus Q4 2023 was modest (QoQ -4.9%), reflecting seasonality and timing of property management contracts.
- Gross profit stood at CNY 50.8 million with a gross margin of 21.46% in QQ1 2024, indicating continued scale benefits but margin pressure relative to some peers. Operating income reached CNY 23.39 million, delivering an operating margin of 9.89%. The net income of CNY 21.08 million translated to an implied net margin of 8.91%. QoQ improvements in operating profitability were large due to a swing from a small operating loss in Q4 2023 to positive QQ1 2024 results, underscoring earnings leverage from contract wins and cost discipline.
- The balance sheet shows solid liquidity and very modest leverage. Total current assets of CNY 1.481 billion and total assets of CNY 1.512 billion support a current ratio of about 2.01 and a quick ratio near 1.96. Total liabilities are CNY 746.5 million with total equity of CNY 749.7 million, yielding a conservative debt profile (debt to capitalization ≈ 3.5%, and net debt reportedly negative, suggesting net cash on hand).
- The company’s operating cash flow was negative in QQ1 2024 (CNY -6.39 million) and free cash flow was negative (CNY -7.03 million), reflecting working capital movements common in service-heavy property management and capex timing. However, cash and short-term investments on the balance sheet remained sizable, providing a liquidity cushion as Dexin scales its Zhejiang footprint.
- Relative to regional peers, Dexin’s margins are below some listed property management peers, signaling room for margin expansion through contract mix, efficiency gains, and scalable value-added services. The growth thesis rests on expanding the managed portfolio, higher-value services, and smarter community solutions in core markets.