Dowell Service Group (2352) H1 2026 earnings summary

Executive summary

• H1 2026 revenue fell 9.3% YoY to RMB719.7m; gross profit declined 20.2% to RMB87.6m and net profit fell 64.2% to RMB10.3m.

• Results reflected portfolio optimisation, new projects still ramping up, lower gross margin and the absence of a prior-year one-off gain.

Financial highlights

• Revenue was RMB719.7m, down RMB74.0m or 9.3% YoY; cost of sales fell 7.6% to RMB632.2m.

• Gross profit fell 20.2% to RMB87.6m; gross margin was 12.2%, down 1.6 percentage points YoY.

• Operating profit was RMB10.7m vs RMB28.8m; profit before tax was RMB12.1m vs RMB32.6m; net profit was RMB10.3m vs RMB28.8m.

• Profit attributable to owners was RMB8.3m, down 67.6%; basic and diluted EPS was RMB0.12 vs RMB0.38.

• Operating cash flow was an outflow of RMB77.0m vs RMB52.4m; cash and cash equivalents were RMB214.6m at 30 June 2026 vs RMB299.1m at year-end 2025.

Outlook and guidance

• H2 priorities are to stabilise core City Operations Services, scale emerging businesses and upgrade organisational agility, supported by lean cost controls, prudent cash-flow management and customer-value initiatives.

• Plans include expanding enterprise and urban public-space services, scaling community consumption, Smart Cleaning and energy management, and developing home-based healthcare services.

• Digital priorities include a unified operations platform, AI-enabled risk alerts and workflow optimisation, with integrated data across marketing, quality control and IoT.