KWG Living Group (3913) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB1,570.2 million, down 5.3% year-over-year, reflecting continued pressure from the real estate sector and market competition.

• Net loss narrowed to RMB155.0 million, a 44.0% reduction compared to H1 2025, mainly due to lower impairment losses and cost controls.

• The business faced pressure from a weak real estate market, strategic contraction, and rising costs, but maintained high service standards and continued regional focus.

• Third-party market-oriented business accounted for 92.0% of total revenue, and the Greater Bay Area and Yangtze River Delta contributed 63.8% of revenue.

• Gross profit declined 16.0% to RMB351.7 million, with gross margin falling to 22.4% from 25.3% year-over-year.

Financial highlights

• Residential property management services revenue decreased 1.6% to RMB820.8 million; non-residential and commercial operational services revenue fell 9.1% to RMB749.4 million.

• Administrative expenses dropped 6.6% to RMB193.0 million, reflecting improved management efficiency.

• Other expenses, mainly impairment losses, decreased 22.5% to RMB287.1 million.

• Cash and cash equivalents stood at RMB992.2 million, down 18.6% from year-end 2025.

• Income tax expense was RMB23.1 million, down 79.4% year-over-year.

Outlook and guidance

• The company expects continued macroeconomic volatility and industry challenges in H2 2026, including rising costs and intense competition.

• Focus remains on prudent operations, quality improvement, and sustainable development.