Hollwin Urban Operation Service Group (2529) investor relations material

Executive summary

• H1 2026 revenue fell 2.1% YoY to RMB309.4m, while net profit rose to RMB39.3m from RMB38.5m; gross margin improved 0.5 percentage point to 27.4%.

• Property management growth partly offset lower urban and commercial operation revenue; no interim dividend was recommended.

Financial highlights

• Revenue was RMB309.4m versus RMB316.2m; gross profit was RMB84.9m versus RMB85.1m.

• Net profit was RMB39.3m versus RMB38.5m; basic and diluted EPS was RMB0.25 versus RMB0.24.

• Operating profit rose to RMB52.1m from RMB50.9m, while profit before tax was RMB52.5m versus RMB52.1m.

• Cost of sales declined 2.8% to RMB224.5m; administrative expenses fell 7.9% to RMB26.0m and selling expenses fell 15.4% to RMB1.3m.

• Operating cash flow was RMB12.4m versus RMB30.3m, reflecting lower cash generated from operations and higher income tax paid.

Outlook and guidance

• H2 priorities include expanding in Hunan through M&A and equity investments, broadening into district operations, rail transit support and municipal lighting, and pursuing integration synergies.

• Plans include improving service quality and customer satisfaction, diversifying the portfolio, and strengthening internal controls and smart-city capabilities.

• Technology plans include digitizing workforce, contract, finance and asset workflows; use of proceeds for system optimization and device-connection systems is scheduled by end-2027 following project delays.