Dowell Service Group (2352) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 3.1% YoY to RMB793.7m; gross profit fell 12.7% to RMB109.8m, while profit for the period increased 14.2% to RMB28.8m, supported by other gains.

• Managed 641 projects across 79 cities with 66.0m sq.m. GFA; contracted portfolio covered 656 projects across 80 cities and 72.2m sq.m.

Financial highlights

• Revenue was RMB793.7m, up 3.1% YoY; cost of sales rose 6.2% to RMB683.9m, outpacing revenue growth.

• Gross profit declined 12.7% to RMB109.8m; gross margin contracted 2.5 percentage points to 13.8%.

• Profit for the period rose 14.2% to RMB28.8m; attributable profit increased 7.6% to RMB25.8m. Basic and diluted EPS was RMB0.38 versus RMB0.36.

• Operating profit was RMB28.8m versus RMB25.4m; profit before tax rose 19.4% to RMB32.6m, partly reflecting a RMB12.8m lease derecognition gain.

Outlook and guidance

• H2 priorities include quality-led market expansion, optimised bidding and resource allocation, integrated facility management, urban and municipal services, and deeper community services.

• Planned growth areas include tailored catering, Southeast Asia, online-and-offline new retail, healthcare and elderly-care services.

• Technology plans include IoT-enabled service innovation, automated workflows, data and AI-assisted analysis, smart-operation platforms and unified project tools.