Evergrande Property Services Group (6666) H1 2025 earnings summary

Executive summary

• Operating revenue for the six months ended 30 June 2025 was RMB6,646.6 million, up 6.9% year-over-year; gross profit was RMB1,198.7 million with an 18.0% margin, down 2.2 percentage points; net profit was RMB491.2 million, net margin 7.4%, down 0.6 percentage points year-over-year; profit attributable to owners was RMB472.3 million, with basic EPS of RMB0.04.

• Net assets increased by RMB467.0 million compared to end-2024, while monetary funds decreased by RMB400.0 million.

• No interim dividend was declared for the period.

• The company faces persistent high receivables, tight liquidity, and significant related party risks, with a net current liabilities position of RMB518.5 million.

Financial highlights

• Revenue rose 6.9% year-over-year to RMB6,646.6 million; cost of sales increased 9.7% to RMB5,447.9 million.

• Revenue breakdown: property management services RMB5,627.8m (+8.4%), community living services RMB456.2m (+6.7%), asset management services RMB398.9m (-1.8%), community operation services RMB163.7m (-15.0%).

• Gross profit margin declined to 18.0% from 20.2% a year ago; segment margins also fell, notably asset management services (49.0%, -6.3pp) and community living services (21.8%, -3.9pp).

• Administrative and marketing expenses fell 11.4% to RMB460.4 million.

• Other income dropped 51.9% to RMB34.8 million, mainly due to lower government subsidies.

Outlook and guidance

• The company is focused on service quality upgrades, market-oriented expansion, and cost control to drive sustainable growth.

• Industry faces transformation with stricter regulation, rising labor costs, and higher service standards.

• Liquidity and receivables collection remain core challenges; management is focused on cost control and market expansion.

• No specific plans for significant investments or capital assets as of 30 June 2025.