Executive Summary
ALiving Smart City Services reported QQ4 2024 revenue of 3,422,306,500 CNY with a gross profit of 445,374,000 CNY, translating to a gross margin of 13.01%. The quarter showcased material profitability deterioration, as operating income declined to -726,154,500 CNY and net income fell to -818,264,500 CNY, corresponding to net and EBIT margins of -23.9% and -21.2%, respectively. Year-over-year comparisons show meaningful softness: revenue is down 11.62% YoY, gross profit down 16.91% YoY, operating income worse by approximately -699% YoY, and net income down about -333% YoY. Despite the negative earnings trajectory, ALiving generated positive operating cash flow of 403.09 million CNY and free cash flow of 374.85 million CNY, aided by working capital dynamics and a conservative capex profile. The balance sheet remains liquidity-rich with substantial cash and short-term investments (totaling 5.31 billion CNY) and a net cash position (net debt of -2.81 billion CNY). Leverage is modest (total debt to capitalization ~5.11%; debt to equity ~5.39%), underscoring financial flexibility in a challenging operating environment for Chinese property services amid a cyclical real estate backdrop.
Key Performance Indicators
QoQ: 0.00% | YoY:-699.20%
QoQ: 0.00% | YoY:-332.86%
QoQ: 0.00% | YoY:-346.15%
Key Insights
Revenue: 3,422,306,500 CNY; Gross Profit: 445,374,000 CNY; Gross Margin: 13.01%; Operating Income: -726,154,500 CNY; EBITDA: -1,854,637,000 CNY; Net Income: -818,264,500 CNY; Net Margin: -23.91%; EPS: -0.58 CNY; YoY Revenue: -11.62%; YoY Gross Profit: -16.91%; YoY Operating Income: -699.20%; YoY Net Income: -332.86%; QoQ metrics for QQ4 were flat where data is provided (Revenue QoQ: 0.00%; Gross Profit QoQ: 0.00%)....
Financial Highlights
Revenue: 3,422,306,500 CNY; Gross Profit: 445,374,000 CNY; Gross Margin: 13.01%; Operating Income: -726,154,500 CNY; EBITDA: -1,854,637,000 CNY; Net Income: -818,264,500 CNY; Net Margin: -23.91%; EPS: -0.58 CNY; YoY Revenue: -11.62%; YoY Gross Profit: -16.91%; YoY Operating Income: -699.20%; YoY Net Income: -332.86%; QoQ metrics for QQ4 were flat where data is provided (Revenue QoQ: 0.00%; Gross Profit QoQ: 0.00%).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.42B |
-11.62% |
0.00% |
| Gross Profit |
445.37M |
-16.91% |
0.00% |
| Operating Income |
-726.15M |
-699.20% |
0.00% |
| Net Income |
-818.26M |
-332.86% |
0.00% |
| EPS |
-0.58 |
-346.15% |
0.00% |
Key Financial Ratios
operatingProfitMargin
-21.2%
dividendPayoutRatio
-5.29%
Management Commentary
Note: Earnings call transcript was not provided in the input. Consequently, no management quotes or themes from the call are available. The analysis relies on disclosed financials and disclosed four-quarter data. Summary implications from the numbers indicate margin compression and ongoing losses in QQ4 2024, contrasted by positive operating cash flow and a strong liquidity position that affords strategic flexibility.
Forward Guidance
Management did not publish explicit forward guidance within the provided data. Given the sector headwinds in China’s real estate and property services, the near-term outlook hinges on: (1) stabilization or improvement in demand for property management and related services, (2) successful cost containment and efficiency improvements to shrink the operating loss, (3) ongoing cash generation to fund working capital needs and potential strategic investments. Monitoring points include: changes in government policy affecting property services demand, customer retention and pricing power, evolution of extended value-added services (e.g., advertising, community renewal, and IT/consulting services), and the trajectory of working capital and non-cash charges (notably the sizable other expenses captured in QQ4 2024). A favorable outcome would require margins to stabilize above ~10% gross and sustained reductions in operating costs to move operating income toward breakeven.