Runhua Living Service Group Holdings (2455) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 8.3% YoY to RMB441.4m and net profit increased 24.4% to RMB21.7m; gross margin narrowed 0.9 percentage points to 14.1%.

• Property management contributed 94.2% of revenue; non-residential properties accounted for 94.0% of property-management revenue, with hospitals a strategic focus.

Financial highlights

• Revenue increased RMB33.9m to RMB441.4m; gross profit rose 1.9% to RMB62.4m as cost of services increased 9.5% to RMB379.0m.

• Profit before tax rose 13.9% to RMB27.7m; income tax expense declined 12.6% to RMB6.0m, and basic and diluted EPS was RMB0.07 versus RMB0.06.

• Net profit margin increased to 4.9% from 4.3%; effective tax rate declined to 21.7% from 28.2%.

• Other income and gains, net, rose 95.2% to RMB5.7m, reflecting higher government grants partly offset by FX losses; administrative expenses included a RMB1.2m trade-receivables write-off.

Outlook and guidance

• Plans include deeper expansion in Shandong and entry into the Yangtze River Delta and Pearl River Delta through M&A, partnerships and bidding.

• Priorities include strengthening core capabilities, expanding hospital management and related value-added services, improving technology-enabled operations, and developing patient and postpartum care.

• Unutilized global offering proceeds are intended for prospectus allocations through end-2025; planned uses include acquisition of a property-management company.