Redco Healthy Living Company (2370) H1 2026 earnings summary

Executive summary

• H1 2026 revenue was RMB194.0m, down 7.2% YoY; net profit was RMB1.1m versus a RMB0.8m loss, while owners’ loss narrowed to RMB2.6m from RMB5.7m.

• Managed GFA grew 14.3% to 23.6m sq.m.; contracted GFA fell 4.4% to 25.6m sq.m. The Top 100 Property Management Companies ranking improved to 29th from 31st.

Financial highlights

• Revenue was RMB194.0m, down 7.2%; service costs declined 1.1% to RMB155.1m, less than the revenue decrease.

• Gross profit fell 25.5% to RMB38.9m, and gross margin narrowed to 20.1% from 25.0%.

• Operating profit rose to RMB4.1m from RMB3.0m; net profit was RMB1.1m versus a RMB0.8m loss, and owners’ loss narrowed to RMB2.6m from RMB5.7m.

• Operating cash outflow widened to RMB38.8m from RMB7.6m; cash and cash equivalents fell to RMB89.1m from RMB134.6m at year-end.

• Financial-asset impairment losses, net of reversals, fell to RMB2.9m from RMB15.9m; basic and diluted loss per share improved to RMB1.29 cents from RMB2.87 cents.

Outlook and guidance

• Priorities include core property management, service quality, customer experience and digital capability, with selective expansion based on project economics, collections, cash flow and risk.

• AI, large models and intelligent tools may be phased into service, work orders, facility operations, energy management and risk identification, subject to data security, cost and operating value.

• Technology opportunities, including enterprise AI, cloud services and intelligent computing, will be assessed for strategic fit, feasibility, investment needs, compliance and risk.