Country Garden Services Holdings Company (6098) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was RMB23,185.5 million, up 10.2% year-over-year, driven by growth in property management, community value-added, and "Three Supplies and Property Management" businesses.

• Net profit declined 35.1% year-over-year to RMB1,002.6 million, with core net profit at RMB1,567.7 million, down 14.8%.

• Basic earnings per share were RMB29.82 cents, compared to RMB43.09 cents in the prior year period.

• The company maintained a strong market position, winning multiple industry awards for comprehensive strength, ESG, and technology empowerment.

• No interim dividend declared; final and special dividends for 2024 totaling RMB988.9 million approved.

Financial highlights

• Property management services revenue rose 6.7% year-over-year to RMB13,605.8 million, accounting for 58.7% of total revenue.

• Community value-added services revenue increased 5.3% to RMB2,103.9 million, 9.1% of total revenue.

• "Three Supplies and Property Management" revenue surged 68.5% to RMB4,156.0 million; heat supply revenue grew 4.4% to RMB915.7 million.

• City services revenue declined 18.0% to RMB1,778.5 million; commercial operational services revenue fell 10.5% to RMB296.8 million.

• Gross profit margin decreased to 18.5% from 21.2% year-over-year, with gross profit at RMB4,299.1 million.

• Net cash outflow from operating activities was RMB875.2 million, compared to an inflow of RMB270.3 million in the prior year.

• General and administrative expenses increased 22.9% to RMB2,205.4 million, mainly due to business expansion.

• Bank deposits and structured deposits at RMB16,472.8 million, down from RMB18,178.6 million at year-end 2024.

• Gearing ratio maintained at net cash position; all borrowings repaid on time.

Outlook and guidance

• The company will deepen service grading, expand digital operations, and focus on high-quality, efficient property management.

• Plans include scaling up AI and IoT applications, expanding value-added community services, and deploying cleaning robots across more projects.

• Targeting a 2025 cash dividend payout ratio of 60% of core net profit, subject to policy compliance.