Redco Healthy Living Company (2370) H1 2025 earnings summary

Executive summary

• H1 2025 revenue was RMB209.005m, down 1.5% YoY; gross profit fell 8.6% to RMB52.244m and gross margin narrowed to 25.0% from 27.0%. Net loss was RMB0.804m versus net profit of RMB7.723m.

• Managed GFA declined 4.3% YoY to 20.7m sq.m.; contracted GFA fell 4.9% to 26.8m sq.m.

• Ranked 31st among China’s Top 100 Property Management Companies in 2025, up from 33rd in 2024.

Financial highlights

• Revenue was RMB209.005m vs RMB212.119m; cost of services rose 1.2% to RMB156.761m, reducing gross profit to RMB52.244m from RMB57.179m.

• Operating profit decreased to RMB3.030m from RMB10.822m; profit before tax was RMB2.812m vs RMB11.621m.

• Net loss was RMB0.804m vs net profit of RMB7.723m; loss attributable to owners was RMB5.742m vs profit of RMB1.073m.

• Operating cash outflow was RMB7.634m, improving from RMB39.125m; cash and cash equivalents were RMB122.279m at period-end.

Outlook and guidance

• Strategy centers on an “urban life service provider” model, a “One Core with Two Complements” structure and a diversified “1+2+N” business layout, with a focus on economically developed regions.

• H2 priorities include project expansion through internal growth and resource consolidation, technology integration, service innovation and improving property-service satisfaction.

• Plans include expanding community wellness, developing technology-driven community services, improving operating efficiency and building low-carbon communities.