Dowell Service Group (2352) H2 2025 earnings summary

Executive summary

• FY2025 revenue was RMB1,524.9m, down 0.3% YoY; net profit recovered to RMB35.4m from a RMB61.6m loss, largely as impairment losses fell sharply.

• City Operations Services grew 6.6% and contributed 74.6% of revenue, offset by a sharp decline in Other Comprehensive Services.

Financial highlights

• Revenue RMB1,524.9m, down 0.3% YoY; cost of sales was RMB1,321.0m versus RMB1,322.3m in FY2024.

• Gross profit fell 1.9% to RMB204.0m; gross margin was 13.4%, down 0.2 percentage points YoY.

• Operating profit was RMB40.0m versus an operating loss of RMB67.7m; profit before tax was RMB45.3m versus a loss of RMB65.5m.

• Net profit was RMB35.4m versus a net loss of RMB61.6m; profit attributable to shareholders was RMB27.8m versus a loss of RMB66.9m.

• Basic and diluted EPS was RMB0.415 versus a loss per share of RMB0.998 in FY2024.

Outlook and guidance

• 2026 priorities include deeper penetration in core regions, strengthening residential services and expanding non-residential work in sectors such as schools and government facilities.

• Plans target a second growth curve through community consumption and smart technology, including scaling Smart Cleaning, AI/IoT services and energy-efficiency solutions.

• Healthcare plans focus on home-based care, hospital companionship and community elderly-care solutions, with a goal to expand service coverage through 15-minute elderly service circles.

• Operational priorities include tighter quality control, digital platform integration, AI-enabled back-office processes and improved cost and workforce efficiency.