Greentown Management Holdings Company (9979) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB1.466 billion, up 7% year-over-year, with net profit attributable to owners at RMB271.3 million, up 6% year-over-year, maintaining industry leadership.

• Gross profit margin improved to 41.1%, and net profit margin attributable to owners reached 19%.

• Operating cash flow increased 20% year-over-year to RMB134 million, reflecting improved financial resilience.

• Selling, marketing, and administrative expenses decreased by 7% year-over-year to RMB250 million, highlighting effective cost control.

• Delivered 56 projects totaling 5.456 million sqm, with customer satisfaction at 92.5 points and sales of RMB34.5 billion.

Financial highlights

• Gross profit rose 9.5% year-over-year to RMB602.9 million, with gross margin up to 41.1%.

• Project management services contributed 97.2% of revenue, with a segment gross margin of 40.9%.

• Interim dividend of RMB0.076 per share declared, totaling RMB152 million, with a payout ratio of 56%.

• Basic and diluted EPS were RMB0.14, up from RMB0.13 year-over-year.

• Other income declined 27% year-over-year to RMB33.9 million, mainly due to lower interest income.

Outlook and guidance

• The company expects continued industry headwinds in the short term but sees long-term growth in urban renewal and stock revitalization.

• Strategic focus on unlocking value from existing stock-property and expanding full-cycle project management services.

• Order backlog at 120 million sqm, with 76.5% in four major city clusters, supporting long-term growth.

• Plans to maintain annual delivery scale above 10 million sqm and focus on high-quality, high-tier projects.

• Dividend payout ratio for 2026 expected to be no less than 80% of attributable net profit, subject to approvals.