S-Enjoy Service Group (1755) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was RMB2,319.0 million, down 16.3% year-over-year, with all business segments experiencing declines, especially developer-related value-added services.

• Net profit attributable to owners was RMB85.4 million, a decrease of 71.7% year-over-year, and net profit margin dropped to 4.1%.

• Operating cash inflow improved to RMB38.3 million, up from RMB20.6 million in the prior year period.

• Trading in shares remains suspended since April 1, 2025, due to ongoing investigations and auditor changes.

Financial highlights

• Gross profit for the period was RMB470.3 million, down 37.6% year-over-year; gross margin was 20.3%, a decrease of 6.9 percentage points.

• Property management services revenue was RMB1,786.0 million (down 6.4%), community-related value-added services RMB494.7 million (down 23.4%), and developer-related value-added services RMB38.3 million (down 82.3%).

• Administrative expenses decreased by 12.8% to RMB193.3 million.

• Earnings per share (basic and diluted) were RMB0.10, down from RMB0.35 in the prior year period.

• No borrowings or asset pledges as of June 30, 2025.

Outlook and guidance

• Management expects further improvement in operational performance in the second half of 2025, driven by new service initiatives and increased employee incentives.

• The company is focusing on refined, sustainable operations and optimizing its business structure to address emerging risks and maintain customer satisfaction.