KWG Living Group (3913) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB3,329.9 million, down 6.8% year-over-year, reflecting industry headwinds and strategic contraction in certain segments.

• Net loss narrowed to RMB316.3 million, a 43.4% improvement from 2024, mainly due to reduced impairment losses and cost controls.

• Gross profit was RMB829.4 million, down 6.0% year-over-year, with gross margin stable at 24.9%.

• Administrative expenses declined 9.2% to RMB428.3 million, reflecting efficiency initiatives.

• No final dividend was recommended for 2025.

Financial highlights

• Residential property management revenue fell 5.3% to RMB1,675.2 million; non-residential and commercial operational services revenue dropped 8.3% to RMB1,654.7 million.

• Cost of sales decreased 7.1% to RMB2,500.4 million, in line with revenue decline.

• Other expenses, mainly impairment losses, dropped 48.3% to RMB543.1 million.

• Income tax expense rose sharply to RMB167.0 million due to derecognition of deferred tax assets.

• Cash and cash equivalents increased 6.4% to RMB1,219.2 million.

Outlook and guidance

• The company expects continued industry differentiation and will focus on professional services, quality operations, and seizing new market opportunities in 2026.

• Plans to further enhance operational resilience and sustainable growth amid ongoing market transformation.