Binjiang Service Group (3316) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2026 rose 13.5% year-over-year to RMB2,298.4 million, with gross profit up 4.9% to RMB477.3 million and net profit up 5.4% to RMB322.1 million.

• Gross profit margin declined to 20.8% from 22.5% year-over-year, mainly due to increased labor costs and investments in service quality; net profit margin decreased to 14.0% from 15.1%.

• Contracted GFA reached 109.7 million sq.m. (up 13.8% YoY), and GFA under management was 92.7 million sq.m. (up 23.4% YoY).

• Interim dividend of HK$0.922 per share declared, representing a payout ratio of approximately 70% of net profit attributable to equity shareholders.

Financial highlights

• Property management services contributed RMB1,399.9 million (60.9% of total revenue), up 20.9% YoY; 5S value-added services accounted for RMB655.0 million (28.5% of revenue), up 0.4%.

• Value-added services to non-property owners generated RMB243.5 million (10.6% of total revenue), up 13.7% YoY.

• Gross profit by segment: property management services RMB238.5 million (margin 17.0%), value-added services to non-property owners RMB77.6 million (margin 31.9%), 5S value-added services RMB161.1 million (margin 24.6%).

• Basic and diluted EPS was RMB1.14, up from RMB1.08 year-over-year.

• Cash and cash equivalents stood at RMB750.8 million, down 15.7% from year-end 2025.

Outlook and guidance

• Focus on strengthening brand leadership and high-end service standards, aiming to become a top property management brand in China and a benchmark in Zhejiang.

• Plans to expand market share in the Yangtze River Delta and eastern China, with dedicated teams for project expansion and diversified business formats.

• Continued digital transformation, service quality enhancement, and operational efficiency improvements.

• Ongoing development of 5S value-added service ecosystem and strategic partnerships.

• Strategic goal to achieve sustainable growth and full-scale development within five years.